Key Takeaways from COP-16: Convention on Biological Diversity
- 03 Nov 2024
In News:
The 16th edition of the Convention of Biological Diversity (CBD) in Cali, Colombia was concluded.
Key Agreements at COP-16
- Establishment of the Cali Fund
- Purpose: To ensure equitable benefit-sharing from the use of Digital Sequence Information (DSI) on genetic resources.
- Focus on Indigenous Communities: At least 50% of the Cali Fund will support Indigenous peoples and local communities, with special emphasis on women and youth.
- Creation of a Permanent Subsidiary Body
- Inclusion of Indigenous Peoples: A new body will ensure the active participation of Indigenous groups in biodiversity conservation and policy discussions.
- Resource Mobilisation Strategy
- Target Funding: The conference agreed on a strategy to secure USD 200 billion annually by 2030 to support global biodiversity initiatives.
- Kunming Biodiversity Fund: A contribution of USD 200 million from China to support biodiversity funding.
- Management of Invasive Alien Species
- New Guidelines: Proposals for databases, cross-border trade regulations, and enhanced coordination with e-commerce platforms to manage invasive species.
- Identification of Ecologically or Biologically Significant Marine Areas (EBSAs)
- Enhanced Process: COP-16 agreed on an evolved process for identifying EBSAs, a critical aspect of marine conservation.
- Global Action Plan on Biodiversity and Health
- One Health Approach: Approval of a global action plan to curb zoonotic diseases, promote health, and safeguard ecosystems.
India’s Contribution at COP-16
Updated National Biodiversity Strategy and Action Plan (NBSAP)
- Financial Commitment: India plans to invest ?81,664 crore (USD 9.8 billion) from 2025-30 on biodiversity conservation.
- Focus Areas: India highlighted efforts such as the establishment of the International Big Cat Alliance, expansion of Ramsar sites, and increased spending on biodiversity from 2018-2022.
International Finance Support
- Global Partnerships: India emphasized the need for international finance to meet biodiversity targets, particularly under the Kunming-Montreal Global Biodiversity Framework (KMGBF).
Key Outcomes from COP-16
- New Mechanisms for Biodiversity Conservation
- Cali Fund: Ensures equitable benefit-sharing from genetic resources.
- Permanent Subsidiary Body: Facilitates the inclusion of Indigenous peoples in policy-making.
- Funding and Resource Mobilization
- USD 200 Billion Annually: Strategy to secure funding for biodiversity initiatives.
- Redirecting Harmful Subsidies: Agreement to redirect USD 500 billion in harmful subsidies by 2030.
- Biodiversity and Human Health
- Global Action Plan on Biodiversity and Health: Aimed at preventing zoonotic diseases and promoting human, animal, and environmental health.
Challenges in Biodiversity Protection
Key Threats to Biodiversity
- Population Growth and Resource Demand: Increasing population and demand for biological resources lead to over-exploitation.
- Habitat Degradation and Climate Change: Destruction of ecosystems and climate change threaten species globally.
- Invasive Species: Introduction of non-native species harms local biodiversity.
- Government Policies: Policies that prioritize development without environmental safeguards contribute to biodiversity loss.
Gaps in Global Biodiversity Framework
- Weak Legal Language: Concerns about insufficient legal protection for critical ecosystems.
- Lack of Implementation Mechanisms: Absence of mandatory review mechanisms for biodiversity targets.
Kunming-Montreal Global Biodiversity Framework (KMGBF)
Framework Overview
- Adoption: Adopted at COP-15 in 2022, the KMGBF sets 23 action-oriented targets for biodiversity by 2030.
- Key Goals: Includes restoring 30% of degraded ecosystems and reducing the risk of invasive species by 50%.
- Living in Harmony with Nature: The framework envisions achieving biodiversity targets and living sustainably with nature by 2050.
Way Forward: Moving from Agreements to Action
- Participation of Stakeholders - Inclusive Approach: Ensuring the involvement of all relevant stakeholders, including governments, businesses, and local communities, in biodiversity conservation.
- Integrated Resource Management - Ecosystem Approach: Promoting a holistic approach to managing biodiversity and natural resources.
- Strengthening Governance - Good Governance Practices: Encouraging better governance to prevent unregulated exploitation of natural resources.
- International Financial Support - Alignment with Financial Institutions: Aligning global financial institutions and multilateral development banks with biodiversity conservation goals.
WWF Living Planet Report 2024
- 02 Nov 2024
In News:
- The WWF Living Planet Report 2024 highlights a drastic 73% decline in the average size of monitored wildlife populations globally from 1970 to 2020.
- The report underscores the urgent need for biodiversity conservation to maintain ecological balance, food security, and human health.
Key Findings of the 2024 Report
Wildlife Population Decline
- 73% Decline in monitored wildlife populations over the past 50 years (1970-2020).
- Freshwater species: Declined by 85%, the most significant drop.
- Terrestrial species: Declined by 69%.
- Marine species: Declined by 56%.
Main Threats to Wildlife
- Habitat Loss: Primary driver, particularly due to the expansion of food systems.
- Overexploitation: Over-hunting, fishing, and resource extraction.
- Invasive Species: Non-native species disrupt local ecosystems.
- Pollution: Water, air, and soil contamination, especially in Asia-Pacific.
- Disease: Emerging diseases impacting wildlife populations.
Ecosystem Risks and Tipping Points
- Decline in wildlife signals risks of ecosystem tipping points.
- Critical ecosystems, like the Amazon and coral reefs, face potential irreversible damage.
- Impact on global food security and livelihoods due to ecosystem collapse.
India’s Wildlife Status
- Vulture populations in India remain critically endangered.
- Tiger populations have increased to 3,682 (2022).
- Snow leopards have been successfully monitored with 718 individuals recorded.
Case Study: Chennai’s Wetland Loss
- 85% reduction in Chennai’s wetlands due to urban expansion, exacerbating flood and drought risks.
- Initiatives like the Tamil Nadu Wetland Mission aim to restore these wetlands to improve ecosystem resilience.
Impacts of Wildlife Decline
- Ecosystem Imbalance
- Disruption in predator-prey relationships, pollination, and nutrient cycles due to species decline.
- Leads to ecosystem instability and potential collapse.
- Loss of Biodiversity
- Reduced genetic diversity makes ecosystems less resilient to environmental changes.
- Increases vulnerability to diseases, natural disasters, and climate change.
- Threats to Food Security
- Pollinators like bees and insects are essential for crop yields.
- Loss of pollinators threatens global food supply and agriculture.
- Human Health Implications
- Healthy ecosystems regulate disease by controlling pest populations.
- Declining biodiversity increases the risk of zoonotic diseases, such as COVID-19.
- Economic Consequences
- Agriculture, fisheries, and tourism industries depend on healthy ecosystems.
- Decline in wildlife can lead to job losses and economic instability.
- Cultural and Social Impacts
- Wildlife holds cultural, spiritual, and recreational value for societies worldwide.
- Loss of iconic species diminishes cultural identities and opportunities for nature-based tourism.
Challenges in Biodiversity Conservation
- Inadequate National Actions
- Despite global commitments (e.g., Global Biodiversity Framework, Paris Agreement, UN SDGs), national actions are insufficient to meet 2030 biodiversity targets.
- Risk of crossing tipping points that could lead to irreversible ecosystem degradation.
- Key Drivers of Biodiversity Loss
- Habitat Loss: Driven by agriculture, urbanization, and infrastructure development.
- Climate Change: Rising temperatures, extreme weather, and altered precipitation patterns.
- Overexploitation: Unsustainable hunting, fishing, logging, and resource extraction.
- Pollution: Industrial, agricultural, and plastic pollution disrupt natural habitats.
- Invasive Species: Non-native species outcompeting and threatening native populations.
- Lack of Funding: Inadequate financial resources for effective conservation.
- Weak Policy and Enforcement: Poorly implemented habitat protection laws.
- Human-Wildlife Conflict: Increased interactions between expanding human populations and wildlife.
- Genetic Diversity Loss: Reduced genetic diversity makes species vulnerable to diseases and environmental changes.
- Awareness Gaps: Insufficient public awareness on the importance of biodiversity.
Conclusion and Way Forward
Policy and Action Recommendations
- Expand protected areas and restore ecosystems to halt biodiversity loss.
- Engage Indigenous communities in conservation and land management practices.
- Promote sustainable farming, reduce food waste, and encourage plant-based diets to lessen food production impacts.
- Shift to renewable energy and reduce fossil fuel use to mitigate climate change.
- Redirect investments from environmentally harmful sectors to nature-friendly industries.
WWF-India’s Call for Collective Action
- WWF-India advocates for collective action to align climate, conservation, and sustainable development policies.
- The goal is to ensure a resilient and thriving future for both biodiversity and human societies.
Tackling Judicial Pendency and Adjournments in India
- 01 Nov 2024
In News:
The issue of judicial delays and adjournments has become a significant concern in India’s judicial system. President Droupadi Murmu, while addressing the National Conference of District Judiciary in September 2024, emphasized the need to eliminate the culture of adjournments. These delays particularly affect the poor and rural populations, who often suffer in silence, avoiding court due to the fear of protracted justice.
Background of the Indian Judicial System
India’s judicial system has evolved under various legal frameworks, including the Code of Civil Procedure (CPC) and the Criminal Procedure Code (CrPC). Initially, civil courts dealt with a wide range of cases, while criminal courts focused on criminal offenses. The establishment of the Supreme Court and High Courts further strengthened India’s judicial architecture to handle constitutional and appellate cases.
To address the growing caseload, the Indian government introduced the tribunal system through the 42nd Constitutional Amendment Act, 1976, aiming to manage specialized disputes. However, despite these reforms, case pendency continues to rise.
Key Issues Contributing to Judicial Delay and Pendency
- Judge-to-Population Ratio - India currently has 21 judges per million people, far below the recommended 50 judges per million as per the 120th Law Commission Report. The shortage of judges directly contributes to the growing backlog of cases.
- Vacant Judicial Positions - As of late 2024, 30% of High Court positions remain vacant, exacerbating the case pendency crisis. The delay in filling these vacancies has resulted in overburdened judges, further delaying case resolution.
- Legislative Overload - The enactment of laws without conducting prior judicial impact assessments leads to an increase in the number of cases, often without considering the capacity of the judiciary to handle them. This lack of foresight results in excessive pressure on courts.
- Overworked Judiciary - Judges often face a heavy workload, with some handling multiple responsibilities across different courts. This overburdening leads to mental fatigue, increased errors, and prolonged decision-making.
- Witness Delays - The absence of witnesses and delays in their appearance in court can significantly prolong the judicial process, contributing to case pendency.
Government Initiatives and Challenges
-
- National Judicial Infrastructure Plan (NJIP): The NJIP aims to modernize judicial infrastructure, improving court functioning and case processing. However, its full implementation across the country remains a work in progress.
- E-Courts Project: The E-Courts project aims to digitize the judicial process, including e-filing and virtual hearings. This initiative has shown promise in reducing procedural delays but still requires wider application.
- Tribunal System: While tribunals were introduced to reduce the burden on regular courts, their success has been limited, and the abolition of six tribunals in 2021 has added additional pressure on High Courts.
- Case Timeline Legislation: Laws prescribing time-bound adjudication for sensitive cases have been enacted, but due to inefficiencies in the system, deadlines are rarely met.
Recommendations for Reform
-
- Enhance Judicial Strength
-
- Increase the Judge-to-Population Ratio: The government should prioritize the appointment of judges to meet the 50 judges per milliontargets.
- Fill Vacant Positions: High Courts should fill vacant positions six months in advance to ensure a steady supply of judges.
-
- Judicial Impact Assessment
- Implement Judicial Impact Assessments: The Justice M. Jagannadha Rao Committee’s recommendation for judicial impact assessments should be made mandatory. Every new Bill should assess the likely increase in judicial workload, the required number of judges, and the necessary infrastructure.
- Promote Alternative Dispute Resolution (ADR)
-
- Encourage ADR Mechanisms: Mediation and arbitration should be promoted as cost-effective alternatives to court proceedings. Public awareness campaigns and legal reforms can encourage the use of ADR.
-
- Strengthen Infrastructure and Technology
- Modernize Court Infrastructure: The judiciary should invest in technology such as e-filing and virtual hearings to reduce administrative burdens and expedite case resolutions.
- Streamline Administrative Processes: Technology can also help automate administrative tasks, thereby reducing the workload on judges and speeding up case processing.
- Limit Adjournments
- Stricter Norms for Adjournments: Judicial bodies should enforce stricter norms for granting adjournments, ensuring that they are not used excessively.
- Oversight Mechanism: An independent body can monitor the frequency of adjournments and take corrective action if needed.
Conclusion
Addressing the issue of judicial adjournments and case pendency requires a comprehensive approach involving structural reforms, better resource allocation, and the adoption of technology. Strengthening the judiciary’s infrastructure, increasing judicial appointments, and promoting alternative dispute resolution are vital steps toward ensuring quicker, fairer justice. The collaborative efforts of the judiciary, government, and society at large are essential to ensuring that India’s judicial system can meet the demands of justice in a timely and efficient manner.
Analysis of Election Expenditure in India
- 30 Oct 2024
Overview
Election expenditure has become a pressing issue in modern democracies, with growing concerns about its implications for political integrity and fair competition. In India, the skyrocketing costs of elections—both in terms of candidate spending and political party expenditure—pose significant challenges to electoral transparency, governance, and equity.
Current State of Election Expenditure in India
The total expenditure on elections in India has risen dramatically in recent years. For the 2024 Lok Sabha elections, the total expenditure by various political parties is estimated to reach around ?1,00,000 crores. This is a significant jump from the ?9,000 crores spent in the 1998 general elections. The expenditure per vote has also risen substantially, from ?25,000 in 1951 to ?1,400 in 2024.
The election expenditure limits for individual candidates are capped by the Election Commission of India (ECI):
- ?95 lakh for larger states (Lok Sabha constituencies)
- ?75 lakh for smaller states
- ?40 lakh for legislative assembly elections in larger states
- ?28 lakh for smaller states
However, these caps apply only to individual candidates. Political parties are not subject to any expenditure limits, allowing them to spend unlimited amounts during campaigns. This discrepancy leads to considerable financial disparities between well-funded national parties and regional or smaller parties, undermining the principle of equitable competition.
Global Comparisons: Election Financing and Spending Limits
Election financing varies widely across democracies, with countries like the United States and the United Kingdom adopting specific limits and regulations to curb excessive spending.
- United States: U.S. elections are financed largely through contributions from individuals, corporations, and Political Action Committees (PACs). Notably, Super PACs—which can raise and spend unlimited funds—have exacerbated concerns over money's influence on political outcomes. The 2024 U.S. presidential election is expected to cost around $16 billion (approximately ?1,36,000 crores).
- United Kingdom: Political parties are subject to strict expenditure limits. Each political party is allowed to spend £54,010 for each constituency, with an overall cap of £35 million for contests across all constituencies. This is aimed at ensuring that elections are not swayed by wealth alone and that smaller parties have a fighting chance.
Despite these measures, the United States still faces issues with unlimited corporate donations and the growing influence of wealthy donors, highlighting the complexities in curbing money in politics.
Challenges Posed by Rising Election Expenditure
The rising costs of elections present multiple challenges in India, exacerbating corruption, unfair competition, and political inequality.
a) Political Corruption and Influence
Large election expenditures are often funded by corporate donations and other private entities, creating a nexus between politicians and donors. This can lead to a quid-pro-quo relationship, where politicians may prioritize the interests of their donors over public welfare. This undermines public trust in the political system.
b) Unaccounted Money and Illegal Practices
A significant portion of the election expenditure is unaccounted for. The Centre for Media Studies (CMS) reports that in the 2019 general elections, around 25% of the total expenditure was spent on illegally distributing cash to voters. This practice, coupled with the absence of strict regulations on third-party campaigners, enables the use of black money in elections, further skewing the electoral process.
c) Uneven Playing Field
The absence of limits on party spending creates a situation where well-funded national parties have an inherent advantage over smaller regional parties and independent candidates. This financial inequality reduces the ability of under-funded candidates to compete based on ideas and merit rather than financial muscle. Furthermore, the growing influence of digital advertising and media campaigns has further widened this gap, with larger parties investing heavily in digital platforms like Google and Facebook, marginalizing those without the resources to do so.
Proposed Reforms to Address Election Expenditure Issues
To address these challenges, several reforms have been suggested by experts, committees, and the Election Commission. These reforms aim to curb excessive spending, ensure fairness, and increase accountability in the electoral process.
a) Capping Expenditure by Political Parties
There is a pressing need to introduce expenditure ceilings for political parties, in addition to those imposed on individual candidates. According to the 2016 Electoral Reforms Report by the Election Commission, political party spending should be capped at a level not exceeding the total expenditure limit for all candidates fielded by the party. This would level the playing field, ensuring that the influence of money is curtailed during elections.
b) State Funding of Elections
Recommendations for state funding of elections have been made by the Indrajit Gupta Committee (1998) and the Law Commission Report (1999). The state could partially finance the campaigns of recognized political parties, ensuring that candidates are not solely reliant on private donations. However, this reform faces challenges in terms of feasibility and implementation, especially regarding the mechanism for allocation of funds.
c) Regulation of Third-Party Campaigners
India should follow the example of countries like Australia, where third-party campaigners are formally registered and required to disclose their funding sources. This would help in tracking illegal contributions and ensure that election spending is transparent.
d) Ban on Government Advertisements During Election Periods
The use of government advertisements by the ruling party during the run-up to elections often leads to an uneven playing field. A ban on government-funded ads during the six months before elections would ensure that the ruling party does not gain an unfair advantage through public resources.
e) Strengthening Electoral Oversight
An independent electoral oversight body could be established to oversee campaign financing and ensure that all parties comply with spending limits. This would include measures to audit party finances, track donations, and verify spending claims, making it more difficult for parties to evade rules or use black money.
Conclusion: The Need for Comprehensive Electoral Reforms
The rising costs of elections in India present significant challenges to the democratic process. While expenditure limits for candidates exist, the lack of restrictions on party spending creates financial inequalities that undermine fair competition. The increasing role of corporate donations, illegal cash distribution, and unregulated third-party spending further complicates the situation.
To ensure fair elections, it is crucial that India adopts reforms such as capping political party expenditures, state funding of elections, and stronger oversight mechanisms. These steps, coupled with bipartisan political will, could help create a more equitable, transparent, and accountable electoral system, fostering greater public trust in the democratic process.
By addressing these challenges head-on, India can work toward an election system that encourages political participation based on ideas and policies rather than financial clout, ultimately strengthening the foundations of democracy.
Analysis of Growing Economic Divide in India
- 29 Oct 2024
Overview
The Economic Advisory Council to the Prime Minister (EAC-PM)'s report titled "Relative Economic Performance of Indian States: 1960-61 to 2023-24" highlights an alarming trend of widening economic disparities across India's states, which is increasingly threatening the principles of federalism and national unity. The findings reveal significant regional imbalances in terms of contributions to the national income, per capita income, and overall economic development. This analysis delves into the key insights from the report and explores the broader implications for India's federal structure, governance, and policy approaches.
Key Insights from the Report
- Regional Economic Disparities:
- Western and Southern States' Dominance: States such as Maharashtra, Gujarat, Tamil Nadu, and Karnataka have consistently outperformed others. These states have benefited from higher private investments, better infrastructure, and a more business-friendly environment. They also enjoy proximity to international markets, especially coastal regions like Gujarat and Tamil Nadu, which have access to ports and export markets.
- Underperformance of Northern and Eastern States: On the other hand, northern states (with exceptions like Delhi and Haryana) and eastern states like Bihar, Odisha, and West Bengal lag behind in economic performance. These regions face challenges such as poor infrastructure, low levels of investment, and weak governance structures, which hinder their growth potential.
- Impact of Liberalization (1991):
- The 1991 economic reforms marked a shift toward market-oriented growth, benefiting states that were already more industrialized or had better urban infrastructure. Southern states, in particular, adapted well to the liberalized environment, attracting higher levels of private investment and expanding their economies.
- The liberalization process disproportionately favored urban centers like Delhi, Mumbai, Chennai, and Bengaluru, where investments were channelized into growing service sectors, technology, and industries, creating a feedback loop of wealth accumulation in these hubs. Meanwhile, the hinterland remained underdeveloped due to insufficient public investment and the lack of private sector interest in these regions.
- Investment Disparities:
- Private Investment: Wealthier states attract a disproportionate share of private investment, which is driven by profitability and market opportunities. These states have better infrastructure, which reduces transaction costs and increases returns on investment. In contrast, underdeveloped states struggle to attract investment due to poor governance, inadequate infrastructure, and perceived higher risks.
- Public Investment: While the public sector still plays a role in investment, the New Economic Policies (NEP) since 1991 have shifted the focus towards private sector-driven growth. This has further widened the investment gap, as the poorer states receive less public investment relative to their needs.
- Role of Infrastructure and Governance:
- The availability and quality of infrastructure are significant determinants of economic performance. States with better roads, energy supply, ports, and communication networks tend to attract more investments. Additionally, good governance, characterized by reduced corruption, better policy implementation, and transparency, also plays a critical role in fostering economic development.
- In contrast, states with weaker governance structures and poor infrastructure struggle to create an enabling environment for businesses, further compounding regional disparities.
- Impact on Federalism:
- The growing economic divide is leading to tensions between the Centre and state governments, particularly in wealthier states that contribute significantly to national income but feel short-changed in resource allocation. These states argue that they are not receiving a fair share of national resources in return for their contributions, leading to growing dissatisfaction with the federal system.
- The tension is exacerbated by political factors, such as accusations from opposition-led states that the Centre uses public investment to favor states aligned with the ruling party. The growing perception of politicization of resource allocation has the potential to undermine the spirit of cooperative federalism.
Structural Causes of Regional Inequality
- Economic and Investment Magnetism:
- Wealthier states attract more private investments, as they offer better returns due to established markets, skilled labor, and urbanization. Cities like Mumbai, Delhi, and Bengaluru serve as economic magnets, drawing talent, technology, and capital, which further consolidates their economic dominance.
- In contrast, states without such economic hubs or access to global markets struggle to attract investment. The absence of urban agglomerations and the concentration of wealth and resources in a few states perpetuate regional disparities.
- Policy and Investment Bias:
- Post-liberalization policies have disproportionately benefited the organized sector, often at the expense of the unorganized sector, which is more prevalent in poorer states. The emphasis on industrial growth and infrastructure development has largely bypassed the rural and informal sectors, which are critical in underdeveloped states.
- The organized sector has also benefited from government support, such as tax concessions and subsidized infrastructure, which have enabled these industries to thrive in already developed regions. This has widened the gap between the haves and the have-nots.
- Cronyism and the Black Economy:
- Crony capitalism and the prevalence of the black economy in poorer states further exacerbate regional imbalances. In some cases, political patronage and corruption divert resources and investments from areas that need them most. This weakens the investment climate, especially in states with higher levels of informal and illegal economic activity.
Implications for Federalism
The growing economic disparity poses a serious threat to India's federal structure. The increasing dissatisfaction of wealthier states with the current fiscal arrangements and the growing demand for fairer resource allocation challenge the spirit of cooperative federalism. A well-functioning federal system relies on equitable distribution of resources and opportunities for all regions to develop.
Policy Recommendations
To address these disparities and strengthen India's federal framework, several policy measures need to be implemented:
- Enhancing Governance and Infrastructure in Lagging States:
- Improved governance and reducing corruption are essential in attracting both private and public investments. Additionally, there must be a focus on developing critical infrastructure, such as roads, energy, and health facilities, which are essential for economic growth.
- States need to increase public investment in sectors like education, healthcare, and social security to improve human capital and productivity.
- Focus on the Unorganized Sector:
- A significant portion of the labor force in poorer states is employed in the unorganized sector. Policies should aim to formalize this sector by providing social security benefits, improving labor rights, and increasing productivity through skill development. This could help raise incomes and stimulate local demand, attracting more private investment.
- Balancing the Organized and Unorganized Sectors:
- While the organized sector has benefited from liberalization, more attention should be given to the unorganized sector, which forms the backbone of the economy in many poorer states. A balanced approach to economic growth, which includes both organized and unorganized sectors, can help reduce disparities.
- Shifting Focus from Urban Centers to Hinterlands:
- Private sector investment must be incentivized in underdeveloped regions through tax breaks, subsidies, and targeted infrastructure projects. This will encourage businesses to expand beyond the major urban centers, thus promoting a more balanced distribution of economic activities.
Conclusion
The widening economic divide in India, as revealed by the EAC-PM report, poses a significant challenge to the country's federalism and unity. To ensure inclusive and balanced development, policy reforms must focus on reducing regional disparities by improving governance, infrastructure, and investment in lagging states. A shift towards equitable growth, addressing the needs of both the organized and unorganized sectors, is essential to promoting national cohesion and ensuring sustainable economic progress across all regions.
Strengthening the Anti-Defection Law to Uphold India's Democratic Integrity
- 28 Oct 2024
In News:
The Anti-Defection Law, introduced in 1985 through the 52nd Constitutional Amendment, aims to curb political instability caused by legislators switching parties for personal or financial reasons. While the law has helped maintain political stability, it faces several challenges, including delays in decision-making, potential bias in adjudication, and lack of transparency in party directives. These issues undermine its effectiveness in safeguarding democratic integrity.
Historical Context and Genesis
The issue of political defections, exemplified by the term "Aaya Ram, Gaya Ram," traces its origins to the 1960s when frequent party-switching destabilized governments. To address this, the Anti-Defection Law was enacted in 1985, disqualifying members who voluntarily gave up their party membership or defied party whips on critical votes. Initially effective in reducing defections, the law has faced challenges due to emerging loopholes, particularly regarding party "splits" and "mergers."
Gaps and Loopholes in the Current Law
One major loophole was the provision allowing a party split if one-third of its members defected, exploited until the 91st Amendment in 2003, which increased the threshold for mergers to two-thirds. Despite this change, defections continue, particularly through "mergers." Another issue is the role of the Speaker in deciding disqualification petitions. Given that the Speaker is often affiliated with the ruling party, their decisions are sometimes seen as biased, leading to delays in resolving defection cases. Additionally, the lack of transparency in issuing party whips has caused disputes regarding their legitimacy.
Proposed Reforms
To address these challenges, two key amendments are proposed:
- Fixed Time Frame for Decision-Making: A clear time frame—such as four weeks—should be established for the Speaker or an adjudicatory body to resolve defection cases. If no decision is made within this period, defecting members should automatically be disqualified.
- Transparency in Whips: Political parties should be required to make the issuance of whips public, either through newspaper publications or electronic communication, to ensure that members are fully informed of party positions on critical votes.
Ethical Concerns and Impact on Democracy
While the Anti-Defection Law was introduced to promote political stability, it has inadvertently stifled internal dissent within parties. Legislators are often forced to follow party lines, even when their personal convictions or constituents' interests conflict. This limits their freedom of expression and undermines the representative nature of democracy. Furthermore, the law has not fully curbed unethical practices such as "poaching" of members or defectors seeking personal gain, which continue to destabilize governments and erode public trust in the system.
The Way Forward: Political Will and Comprehensive Reforms
To strengthen the Anti-Defection Law, reforms must balance party discipline with individual freedoms. Key steps include:
- Independent Adjudication: Establishing an independent tribunal to handle defection cases can reduce political bias and expedite the decision-making process.
- Clear Timeframes: Setting a fixed timeline for resolving defection cases will prevent delays and ensure accountability.
- Transparency in Whip Issuance: Ensuring public notice of party whips will reduce ambiguity and disputes.
- Promoting Ethical Conduct: Strengthening ethical guidelines to discourage "poaching" and protect the integrity of the electoral process.
Pradhan Mantri Mudra Yojana (PMMY)
- 27 Oct 2024
Introduction
The Pradhan Mantri Mudra Yojana (PMMY) was launched by Prime Minister Narendra Modi on April 8, 2015, with the aim of providing financial support to non-corporate, non-farm small and micro enterprises in India. Through this initiative, loans are provided to individuals and small businesses who are unable to access formal institutional finance.
In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced an increase in the loan limit under PMMY from ?10 lakh to ?20 lakh, with the introduction of a new loan category, Tarun Plus, aimed at fostering growth in the entrepreneurial sector.
Key Features of the Pradhan Mantri Mudra Yojana
Loan Limit Increase
- Loan Limit Raised: The loan limit has been increased from ?10 lakh to ?20 lakh for eligible entrepreneurs.
- New Loan Category: The newly introduced Tarun Plus category caters to entrepreneurs who have previously availed and successfully repaid loans under the Tarun category.
- Credit Guarantee: The Credit Guarantee Fund for Micro Units (CGFMU) will cover these enhanced loans, further ensuring the security of micro-enterprises.
Categories of MUDRA Loans
PMMY provides collateral-free loans through financial institutions like Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs). These loans are provided for income-generating activities in sectors like manufacturing, trading, services, and allied agriculture activities.
Objectives of PMMY
- Financial Inclusion: PMMY targets marginalized and socio-economically neglected sections of society, promoting financial inclusivity.
- Support to Small Businesses: By providing affordable loans, the scheme encourages small-scale entrepreneurs, particularly women and minority groups, to establish and expand their businesses.
- Fostering Entrepreneurship: PMMY aims to unlock the potential of India’s entrepreneurial spirit, especially in rural and underserved areas.
MUDRA: The Institutional Backbone
Role of Micro Units Development & Refinance Agency Ltd. (MUDRA)
MUDRA is the primary institution set up by the Government of India to manage and implement the Mudra Yojana. It acts as a refinancing agency that provides financial support to small and micro-enterprises by working through financial intermediaries, such as banks and micro-finance institutions.
Funding Sources
- Scheduled Commercial Banks
- Regional Rural Banks (RRBs)
- Small Finance Banks (SFBs)
- Non-Banking Financial Companies (NBFCs)
- Micro Finance Institutions (MFIs)
Application Process
Applicants can avail loans through any of the aforementioned financial institutions or apply online via the Udyami Mitra Portal.
Benefits of Pradhan Mantri Mudra Yojana
- Collateral-free Loans: No security is required to obtain loans, which reduces the financial burden on borrowers.
- Easily Accessible: PMMY loans are available across India, making them accessible to entrepreneurs in both rural and urban areas.
- Quick and Flexible Loans: Loans can be disbursed quickly with flexible repayment terms (up to 7 years).
- Empowering Women Entrepreneurs: The scheme offers special incentives for women entrepreneurs, helping them to establish and grow their businesses.
- Support to Rural Areas: Special emphasis on empowering rural enterprises and reducing regional disparities.
- MUDRA Card: The MUDRA Card is a RuPay debit card that allows borrowers to access funds through an overdraft facility, enhancing liquidity for businesses.
- No Default Penalty: In case of loan defaults due to unforeseen circumstances, the government will step in to reduce the burden on entrepreneurs.
Categories of Loans Under PMMY
1. Shishu Category: Loans up to ?50,000
- Targeted at micro-enterprises at the initial stage of their business journey.
2. Kishore Category: Loans between ?50,000 and ?5 lakh
- Targeted at enterprises looking to expand their operations and upgrade their infrastructure.
3. Tarun Category: Loans between ?5 lakh and ?10 lakh
- For established businesses that are in need of funds to scale up.
4. Tarun Plus: Loans between ?10 lakh and ?20 lakh
- A new category designed for entrepreneurs who have repaid loans under the Tarun category and wish to further expand their business.
Achievements of PMMY (2023-24)
- Total Loans Sanctioned: ?5.4 trillion across 66.8 million loans in FY 2023-24.
- Loans Disbursed: Significant amounts were disbursed under each category:
- Shishu: ?1,08,472.51 crore
- Kishore: ?1,00,370.49 crore
- Tarun: ?13,454.27 crore
- Women Borrowers: A large share of loans have gone to women entrepreneurs, ensuring gender inclusivity.
- Minority Borrowers: The scheme also emphasizes financial empowerment of minority communities.
- NPA Reduction: The Non-Performing Assets (NPA) in Mudra loans have reduced to 3.4% in FY 2024, compared to higher levels in earlier years.
Digital Tools and Support Systems
MUDRA MITRA App
The MUDRA MITRA mobile app helps users access information about the PMMY scheme, loan application procedures, and other resources. The app is available for download on Google Play Store and Apple App Store.
Online Loan Application
Entrepreneurs can apply for loans online via portals such as PSBloansin59minutes and Udyamimitra, providing greater convenience and accessibility.
Steps to Improve Implementation
- Handholding Support: Assistance in submitting loan applications is available for applicants.
- Intensive Awareness Campaigns: The government conducts publicity campaigns to raise awareness about PMMY.
- Simplified Loan Process: The loan application forms have been simplified to encourage wider participation.
- Performance Monitoring: Regular monitoring of PMMY implementation to ensure its success.
- Interest Subvention: A 2% interest subvention is offered for prompt repayment of Shishu loans.
Conclusion
The Pradhan Mantri Mudra Yojana has been a transformative scheme in fostering entrepreneurship and ensuring financial inclusion for small and micro-businesses across India. With the recent increase in loan limits and the addition of the Tarun Plus category, the scheme continues to empower emerging entrepreneurs and provides a crucial lifeline for business growth and sustainability. By supporting women, minorities, and new entrepreneurs, PMMY has contributed significantly to economic upliftment and inclusive growth in the country.
The right to die with dignity
- 26 Oct 2024
In News:
- The Ministry of Health and Family Welfare's draft guidelines (October 2024) aim to implement the Supreme Court's 2018 and 2023 orders on the right to die with dignity.
Legal Context: Supreme Court Rulings and Constitutional Rights
- Right to Refuse Treatment:
- Common Law & Article 21: The right to refuse medical treatment is grounded in common law and is now recognized as a fundamental right under Article 21 of the Indian Constitution, following the 2018 Supreme Court judgment in Common Cause v. Union of India.
- Supreme Court Rulings: The court's rulings in 2018 and 2023 affirmed that individuals have the constitutional right to refuse life-sustaining treatment and to die with dignity.
Withholding and Withdrawing Life-Sustaining Treatment
- Definition and Meaning:
- What Is Life-Sustaining Treatment? Life-sustaining treatments, such as ventilators and feeding tubes, artificially replace vital bodily functions to sustain life.
- Withholding/Withdrawal: This refers to discontinuing these treatments when they no longer improve the patient's condition or merely prolong suffering.
- When Is It Done?
- End-of-Life Care: Withholding or withdrawing treatment is considered when further medical intervention is futile and would only artificially prolong the dying process.
- Focus on Comfort: After withdrawing life-sustaining measures, the focus shifts to palliative care to alleviate pain and suffering.
Understanding Euthanasia and Misconceptions
- What Is Euthanasia?
- Definition: Euthanasia refers to the intentional ending of a terminally ill patient’s life by medical professionals to relieve suffering.
- Passive Euthanasia Misconception: In India, the term "passive euthanasia" is often mistakenly used to describe withholding or withdrawing life-sustaining treatment, but this does not involve the active killing of the patient.
- Legal Framework: The Indian Council of Medical Research (ICMR) clarified in 2018 that "passive euthanasia" is not a legally accepted practice in the country.
The Role of Doctors: Ethical Dilemmas and Shared Decision-Making
- Is Withdrawing Treatment "Giving Up" on the Patient?
- Not Abandonment: Withdrawing life-sustaining treatment is not about abandoning the patient but recognizing when further interventions would cause unnecessary suffering.
- Palliative Care: The patient’s comfort and dignity are prioritized through palliative care, which focuses on pain management and emotional support for both the patient and family.
- Doctors' Ethical Responsibility:
- Shared Decision-Making: The process encourages a collaborative approach between doctors and the patient’s family or surrogate decision-makers. This joint decision-making ensures that the wishes of the patient are respected and relieves the doctor from bearing sole responsibility for life-and-death decisions.
Living Wills and Advance Medical Directives
- What Is a Living Will?
- Definition: A living will is a legal document where a person outlines their medical preferences in the event they lose decision-making capacity.
- Eligibility and Process: Individuals aged 18 or older, who are capable of making decisions, can draft a living will, naming at least two trusted surrogate decision-makers.
- Legal Requirements: The document must be signed in the presence of an executor, two witnesses, and notarized to be legally binding.
- 2023 Supreme Court Guidelines: The Court simplified the procedure for making living wills to ensure that the right to die with dignity is upheld.
Medical Procedure for Withholding or Withdrawing Treatment
- Supreme Court Guidelines
- The Supreme Court laid out a clear procedure for withholding or withdrawing life-sustaining treatment, emphasizing patient autonomy, expert assessments, and family consent.
- Primary and Secondary Medical Boards:
- Primary Medical Board: The treating hospital sets up a Primary Medical Board, consisting of the treating doctor and two subject-matter experts, to assess the patient's condition and determine if life-sustaining treatment is appropriate.
- Secondary Medical Board: A Secondary Medical Board, comprising independent experts, reviews the Primary Board's decision for added oversight.
- Consent from Family/Surrogate Decision-Makers:
- The patient’s wishes, as outlined in an advance directive or by a surrogate, must be respected, and their consent is essential for proceeding with treatment withdrawal.
- Judicial Oversight:
- Once the decision to withdraw treatment is made, the hospital is required to notify the local judicial magistrate, ensuring transparency and accountability.
Conclusion: Legal and Ethical Clarity in End-of-Life Care
- Shared Decision-Making: The process ensures that medical teams, families, and surrogate decision-makers collaborate, preventing any medical professional from facing moral or legal dilemmas alone.
- Protection of Autonomy: These frameworks and guidelines uphold patient autonomy, offering a legal and ethical pathway for terminally ill patients to exercise their right to die with dignity.
16th BRICS Summit
- 25 Oct 2024
In News:
Recently, the 16th BRICS Summit was held in Kazan, Russia.
Key Highlights:
Overview of the Bilateral Meeting between PM Modi and President Xi
- Location & Context: The meeting took place on the sidelines of the 16th BRICS Summit in Kazan, Russia (October 23, 2024), marking the first bilateral interaction between PM Modi and President Xi Jinping in nearly five years.
- Significance: The meeting focused on India-China relations, specifically the border dispute that arose following the 2020 standoff in Ladakh.
- Agreement on Border Disengagement: Both leaders welcomed an agreement for "complete disengagement" along the Line of Actual Control (LAC), which could pave the way for the resolution of issues that emerged after the Galwan Valley clashes in June 2020.
Key Points of the India-China Border Pact
- Resolution of Border Issues: The agreement addresses longstanding disputes, including in Depsang Plains and Demchok, where Chinese forces had encroached on Indian territory.
- Restoration of Patrolling: Both nations agreed to restore patrols to old patrolling points (PPs) along the LAC in these disputed areas.
- Next Steps: The Special Representatives (SRs) on the India-China boundary will meet soon to oversee the management of peace and tranquility in the border areas and explore mutually acceptable solutions.
- Diplomatic Mechanisms: Dialogue mechanisms at the foreign ministers and other official levels will be utilized to stabilize and rebuild bilateral relations, contributing to regional and global stability.
Strategic Importance of the Bilateral Meeting
- Maintaining Peace and Stability: PM Modi emphasized that differences between India and China should be managed carefully to ensure that broader peace and tranquility are maintained.
- Global Impact: Both leaders affirmed that stable India-China relations would have a positive impact on regional and global peace and contribute to a multipolar world.
- Long-Term Strategic Perspective: The leaders discussed progressing bilateral relations from a strategic perspective, enhancing communication, and exploring cooperation to address developmental challenges.
Key Takeaways from the 16th BRICS Summit
- Expansion and New Membership: The summit saw the inclusion of five new members—Egypt, Ethiopia, Iran, the UAE, and Saudi Arabia (pending formalization). This expansion reflects BRICS’s growing influence as a forum representing the Global South.
- Focus on Multilateralism: Leaders emphasized multilateral cooperation to address challenges such as global security, economic growth, and sustainable development.
- Kazan Declaration: The declaration touched upon key issues:
- Geopolitical Conflicts: It called for dialogue and diplomacy to resolve disputes like the Ukraine crisis and the West Asia conflict.
- Sanctions and Trade: Criticized unilateral sanctions and their disruptive effects on global trade and development goals.
- Grain Exchange: A proposal was made to establish a BRICS Grain Exchange, aimed at improving agricultural trade among member states.
- Financial Integration: There was a push for greater financial integration through the use of local currencies for trade, exemplified by India’s UPI system as a successful model.
Importance of BRICS in the Global Context
- Global Influence: BRICS continues to be a key player in global geopolitics, representing 40% of the world’s population and 26% of global GDP (as of 2023).
- Strategic Goals: BRICS has consistently called for reform of international institutions like the UNSC, IMF, and World Bank, advocating for a more equitable global governance structure.
- Economic Collaboration: The New Development Bank (NDB), established in 2015, continues to play a vital role in funding development projects across BRICS countries, though the group’s influence in global finance remains limited compared to the World Bank.
Challenges Facing BRICS Expansion
- Geopolitical Contradictions: The inclusion of diverse new members (e.g., UAE, Egypt, Iran) could complicate decision-making due to geopolitical rivalries.
- Decision-Making Hurdles: Achieving consensus among an expanding membership will become more challenging. The expansion may dilute the cohesiveness of the group, as seen in other multilateral forums like the Non-Aligned Movement (NAM) and G77.
- De-Dollarisation Efforts: While BRICS aims to de-dollarize trade and reduce reliance on the SWIFT system, efforts to develop alternatives like a BRICS payment system and BRICS currency are still in nascent stages.
- Economic Disparities: Economic gaps among members—China’s GDP is significantly larger than the combined GDP of other members—could also create imbalances in decision-making.
India’s Role and Strategic Positioning in BRICS
- Geopolitical Balancing: India's participation in BRICS is a strategic maneuver to balance its global position and strengthen ties with emerging economies, particularly in the Global South.
- Diplomatic Relations with Russia: India continues to prioritize its relationship with Russia, which remains crucial for regional security and energy cooperation.
- India-China Ties: The agreement on the India-China border represents a significant shift in relations, with potential for a reset in Sino-Indian ties.
Key Themes in the Kazan Declaration
- Global Governance: Calls for reforming global institutions to give developing nations more representation.
- Energy and Sustainability: Proposals for strengthening energy cooperation, including the creation of energy corridors and the promotion of sustainable energy practices.
- Security: Emphasized the need for universal security by addressing the security concerns of all nations and promoting dialogue over confrontation.
Conclusion: Future of India-China and BRICS Relations
- India-China Relations: The border disengagement pact is a critical step towards stabilizing the India-China relationship, with potential positive impacts on regional security and global geopolitics.
- BRICS’s Growing Influence: As BRICS expands, it faces internal challenges but remains a potent voice for the Global South, aiming to reshape global governance and financial systems.
- India’s Strategic Positioning: India is likely to play a pivotal role in BRICS, especially as the group’s focus shifts towards regional stability, economic cooperation, and de-dollarization in the coming years.
Stubble Burning and the Supreme Court's Ruling: Protecting the Right to a Pollution-Free Environment
- 24 Oct 2024
Introduction
Recently, the Supreme Court of India expressed serious concerns about the ongoing issue of stubble burning in the states of Punjab and Haryana. The Court criticized the selective enforcement of penalties for stubble burning and emphasized that such practices violate citizens' fundamental right under Article 21 of the Indian Constitution, which guarantees the right to live in a pollution-free environment.
Court’s Observations on Stubble Burning
- The Supreme Court highlighted the failure of state governments in effectively implementing laws against stubble burning.
- Selective Enforcement: The Punjab and Haryana governments were accused of prosecuting only a few violators while allowing many others to escape punishment by paying a nominal fine.
- The Court observed that this approach is a blatant violation of the right to live in a pollution-free environment, which is guaranteed under Article 21 of the Constitution.
Right to a Pollution-Free Environment
- The Court emphasized that every citizen has the fundamental right to live in an environment free from pollution, as mandated by Article 21 of the Constitution.
- The Court questioned the effectiveness of current environmental regulations, specifically pointing out the lack of proper machinery to collect fines under Section 15 of the Environment (Protection) Act, 1986.
Impact of Stubble Burning
Stubble burning, primarily in the northern states of India, exacerbates air pollution, especially in Delhi and surrounding regions. The seasonal spike in air pollution during the months of October and November is largely attributed to farm fires. This not only worsens the air quality but also has severe implications for public health.
Environmental and Health Consequences
- Air Pollution: The burning of crop residues significantly contributes to the rise in PM2.5 and PM10 levels, leading to hazardous air quality.
- Soil Health: Burning crop residues depletes essential nutrients from the soil, reducing organic carbon content and harming soil fertility.
Health Risks
- Exposure to pollutants like particulate matter (PM) can lead to respiratory problems, heart diseases, and other health complications for the population, especially in densely populated areas like Delhi.
Legal and Institutional Shortcomings
- Inadequate Implementation: Despite laws and penalties being in place, the lack of an effective enforcement mechanism has resulted in the persistence of stubble burning.
- Toothless Penalties: The Supreme Court criticized the amended Section 15 of the Environment Protection Act, 1986, which replaced criminal penalties with financial fines for environmental violations. However, the lack of rules and appointed adjudicating officers has rendered this provision ineffective.
- No Serious Enforcement: The failure of the Central government and state authorities to implement effective penalties has led to widespread non-compliance with environmental laws.
Government Actions and Responses
Centre’s Efforts:
- The Central Government has introduced a Central Sector Scheme to promote agricultural mechanization for in-situ management of crop residue in Punjab, Haryana, Uttar Pradesh, and Delhi.
- The government provides financial assistance of up to 50% for the purchase of machinery, such as the Happy Seeder, to manage paddy stubble without burning.
- A total of ?3,062 crore has been released from 2018 to 2023 to tackle stubble burning.
State-Level Actions:
- The Punjab government has introduced cash incentives for farmers who refrain from burning stubble. Additionally, the state is offering non-fiscal incentives, such as access to panchayat land for storing paddy straw.
- The Pusa Decomposer, developed by the Indian Agricultural Research Institute (IARI), is a bio-enzyme used to decompose crop residue. It helps in turning the stubble into manure within 20-25 days, enhancing soil health.
Challenges for Farmers:
- Many farmers still prefer burning stubble due to high costs associated with alternative methods of residue management.
- The Happy Seeder and other machinery remain expensive and are not affordable for most small-scale farmers, leading them to resort to burning as the most cost-effective option.
Court’s Directive and the Way Forward
- The Supreme Court directed the Centre and state governments to ensure better enforcement of laws related to air pollution, vehicular emissions, and industrial pollution.
- The Court also urged the Union Government to consider Punjab’s request for additional funds to tackle the stubble burning issue and to strengthen the enforcement mechanism.
- Urgency for Action: The Court’s observations suggest that the existing framework needs urgent reforms to protect citizens’ right to a pollution-free environment.
Constitutional Provisions Related to Environmental Protection
India’s Constitution provides several provisions to ensure the protection of the environment:
Article 21: Right to Life and Environment
- In the landmark case Subhash Kumar v. State of Bihar (1991), the Supreme Court held that the right to life under Article 21 includes the right to a wholesome environment.
- This view was reiterated in Virender Gaur v. State of Haryana (1994), further strengthening the legal framework for environmental protection.
Directive Principles of State Policy
- Article 48A: The State is mandated to protect and improve the environment and safeguard forests and wildlife.
- Article 39(e) and 47: These Articles place a duty on the State to promote public health and ensure environmental protection.
Fundamental Duties
- Article 51A(g) places a duty on citizens to preserve and protect the environment.
Conclusion
The Supreme Court’s ruling highlights the urgent need for better implementation of environmental laws and the protection of citizens’ fundamental rights under Article 21. While government schemes are in place, a more robust and consistent approach is required to address the issue of stubble burning and air pollution. Immediate reforms in the enforcement mechanisms and incentives for farmers are crucial to achieve a sustainable, pollution-free environment in India.
Biodiversity COP16
- 23 Oct 2024
In News:
The Convention on Biological Diversity (CBD), while historically overshadowed by climate change discussions, is now gaining increasing attention due to the growing recognition of the global biodiversity crisis. This evolving prominence highlights the need for urgent action to preserve ecosystems and halt biodiversity loss, which is intimately linked with the climate crisis.
Overview of the Convention on Biological Diversity (CBD)
- Origins and Objectives:
- The CBD emerged from the 1992 Rio Earth Summit, alongside the UN Framework Convention on Climate Change (UNFCCC).
- Main Goals:
- Protect global biodiversity.
- Restore ecosystems.
- Ensure equitable distribution of the benefits derived from biological resources.
- COP16 and the Kunming-Montreal Framework:
- The 16th Conference of Parties (COP16) marks the first meeting following the Kunming-Montreal Global Biodiversity Framework adopted at COP15 in 2022.
- The framework sets out four key goals and 23 targets to be achieved by 2030, including:
- Protect 30% of global lands and oceans by 2030.
- Restore 30% of degraded ecosystems by 2030.
The Growing Convergence Between Climate Change and Biodiversity
- Interlinkages Between Climate Change and Biodiversity:
- Mutual Impact:
- Climate change accelerates biodiversity loss by altering habitats and threatening species.
- In turn, ecosystem degradation contributes to climate change by releasing greenhouse gases (GHGs) from deforestation and soil degradation.
- Shared Drivers:
- Both crises are driven by unsustainable human activities, including over-exploitation of natural resources, deforestation, over-consumption, and pollution.
- Increasing Synergy:
- There is a growing realization of the need for integrated solutions that address both climate change and biodiversity loss simultaneously.
- Momentum for 30 x 30 Targets
- The 30 x 30 Commitment:
- The 30 x 30 targets are central to the Kunming-Montreal Framework, which includes:
- Conservation of 30% of the world's lands and oceans.
- Restoration of 30% of degraded ecosystems.
- These targets aim to ensure the preservation of biodiversity-rich areas and the restoration of degraded ecosystems globally by 2030.
- National Biodiversity Strategies and Action Plans (NBSAPs):
- Countries are required to develop and submit their NBSAPs (akin to Nationally Determined Contributions (NDCs) for climate change).
- As of now, only 32 countries have submitted their NBSAPs, with more expected during COP16.
- High Seas Treaty:
- A crucial agreement for achieving 30 x 30 targets is the High Seas Treaty (also called Biodiversity Beyond National Jurisdictions (BBNJ)), which focuses on:
- Establishing protected marine areas in biodiversity-rich regions beyond national jurisdictions.
- Ensuring regulation of human activities in these areas.
Access and Benefit Sharing: The Case of Genetic Resources
- Genetic Resources and Their Exploitation:
- The oceans, along with terrestrial ecosystems, harbor a wide variety of genetic resources that can be exploited for medical, commercial, and scientific purposes.
- Advances in biotechnology and digital sequencing of genetic material have raised issues about the equitable sharing of benefits from these resources.
- Nagoya Protocol and Benefit Sharing:
- The Nagoya Protocol (2010) set out guidelines for the access and fair sharing of benefits derived from genetic resources.
- At COP16, discussions will center on how genetic sequences (used in products such as medicines, crops, etc.) can be used fairly, ensuring that indigenous communities, who may be the original custodians of these resources, benefit equitably.
Finance Mechanisms for Biodiversity Conservation
- Financial Targets:
- One of the key goals of the Kunming-Montreal Framework is to mobilize $200 billion per year by 2030 for biodiversity conservation globally.
- Developed countries are expected to contribute $20 billion annually to developing nations, increasing to $30 billion by 2030.
- Phasing Out Harmful Subsidies:
- Countries are urged to eliminate perverse incentives that harm biodiversity, such as subsidies for:
- Over-fishing.
- Deforestation.
- Fossil fuel consumption.
- The goal is to repurpose such incentives to support sustainable practices and conservation efforts.
- New Financial Mechanisms:
- COP16 discussions will also focus on creating innovative financial mechanisms, such as:
- A biodiversity fund.
- Biodiversity credits, similar to carbon credits, which would allow countries or organizations to offset their biodiversity loss by investing in conservation projects elsewhere.
Challenges and the Way Forward
- Implementation of 30 x 30 Targets:
- The main challenge lies in translating ambitious goals into actionable plans at the national and local levels. Countries must not only submit action plans but also implement and monitor them effectively.
- Increased Global Cooperation:
- Addressing biodiversity loss requires collaboration between countries, industries, and local communities to ensure that efforts are comprehensive and inclusive.
- Public Awareness and Engagement:
- It is crucial to raise awareness about the importance of biodiversity conservation and the urgent need for collective action to mitigate the combined threats of biodiversity loss and climate change.
Conclusion: The Need for Urgent Action
The discussions at COP16 signal an important shift in how the world addresses biodiversity and its links to climate change. As countries continue to recognize the interconnectedness of these two crises, the outcome of the CBD negotiations could play a pivotal role in shaping global environmental policy. However, meeting the ambitious goals set forth by the Kunming-Montreal Framework requires strong political will, adequate financing, and effective global cooperation.
What are the stress factors for Indian Railways?
- 22 Oct 2024
In News:
On October 17, eight coaches of the Agartala-Lokmanya Tilak Express derailed in Assam with no casualties. On October 11, a passenger train rear-ended a stationary goods train near Chennai, also with no casualties. Indian trains have been involved in multiple accidents of late. The Balasore accident on June 2, 2023, had the greatest death toll, more than 275, yet pressure on the Railways to improve safety competes with pressures straining its subsistence.
Railway Accident Trends
- Decline in Accidents Over Time:
- From 1,390 accidents per year in the 1960s, railway accidents have reduced to about 80 accidents per year in the last decade.
- Recent Consequential Accidents:
- 34 accidents in 2021-2022
- 48 accidents in 2022-2023
- 40 accidents in 2023-2024
- Primary Causes of Accidents:
- 55.8% due to staff errors (railway personnel).
- 28.4% due to non-staff errors.
- 6.2% due to equipment failure.
- Role of Signalling Failures:
- Major accidents, such as Balasore and Kavaraipettai, were attributed to signalling system failures.
Key Safety Technologies and Measures
- Kavach System:
- Kavach is an automatic train protection system designed to prevent collisions by monitoring train positions and activating alarms or braking.
- As of February 2024, Kavach was implemented on only 2% (1,465 route km) of the railway network, limiting its effectiveness.
- Signalling System Overhaul:
- Outdated and faulty signalling systems contribute significantly to accidents. Both Balasore and Kavaraipettai incidents were linked to failures in signalling infrastructure.
Financial Strain on Indian Railways
- Operating Ratio (OR):
- The Operating Ratio (OR) in 2024-2025 is estimated to be ?98.2, indicating that the Railways spends ?98.2 for every ?100 earned.
- A higher OR reduces available funds for safety improvements and infrastructure upgrades.
- Budgetary Constraints:
- The 2023-24 budget showed a 7.2% reduction in capital outlay for track renewal and a 96% decrease in the Depreciation Reserve Fund, which is used to replace aging assets.
- Revenue Imbalance:
- Freight services account for 65% of Railways’ revenue but face capacity constraints, with 30% of the network operating at over 100% capacity.
- Passenger services, however, continue to incur significant losses, with ?68,269 crore loss in 2021-22.
Challenges in Rail Infrastructure
- Slow Infrastructure Development:
- The government's Dedicated Freight Corridors (DFCs), intended to alleviate congestion, are severely delayed:
- The Eastern DFC is the only fully operational corridor.
- Other corridors, including the Western DFC and additional planned routes, remain incomplete.
- Track and Equipment Maintenance:
- Ongoing delays in upgrading and maintaining essential infrastructure (tracks, wagons, signalling) contribute to the rising number of accidents.
Loco Pilot Working Conditions
- Extended Working Hours:
- Loco pilots often work 12-hour shifts due to manpower shortages, leading to fatigue and increased risk of human error.
- Stress and exhaustion are significant contributors to accidents caused by human error, including Signal Passed at Danger (SPAD).
Recommendations for Improving Railway Safety
- Loco Pilot Vacancies:Immediate recruitment to fill the 18,799 vacant loco pilot positions to prevent overworking and reduce fatigue-related errors.
- Expand Kavach Deployment:Accelerate the nationwide installation of the Kavach system, particularly on high-risk and high-traffic routes, to enhance safety.
- Complete Dedicated Freight Corridors (DFCs):Expedite the completion of DFCs to ease congestion and increase freight movement efficiency.
- Independent Railway Safety Authority:Establish an independent Railway Safety Authority with statutory powers, as recommended by the Kakodkar Committee (2012), to enforce safety standards and monitor implementation.
- Improve Signal Infrastructure:Invest in advanced and reliable signalling systems to prevent errors stemming from outdated or malfunctioning infrastructure.
- Regulate Working Hours:Enforce strict work hour limits to reduce fatigue among railway staff and ensure proper rest between shifts.
- Strengthen Trackside Infrastructure:Install fencing along tracks in high-risk areas to prevent cattle run-overs, a common cause of derailments in rural and semi-urban areas.
Conclusion
- Indian Railways faces a complex set of challenges, balancing safety requirements with financial constraints. Despite technological advancements like Kavach, its limited deployment and outdated infrastructure continue to present significant risks.
- A holistic approach to reform is needed, including addressing manpower shortages, upgrading safety technologies, and investing in infrastructure development. This will be essential for reducing accidents, improving safety, and ensuring the long-term sustainability of India’s vast railway network.
With elections in at least 83 countries, will 2024 be the year of AI freak-out?
- 19 Feb 2024
Why is it in the News?
Regulatory panic could do more harm than good. Rather than poor risk management today, rules should anticipate the greater risks that lie ahead.
Context:
- The year 2024 will see 4.2 billion people go to the polls, which, in the era of artificial intelligence (AI), misinformation and disinformation may not be the democratic exercise intended.
- The Global Risks Report 2024 named misinformation and disinformation a top risk, which could destabilise society as the legitimacy of election results may be questioned.
- Therefore, it is crucial to scrutinise the possible drawbacks of swiftly formulated regulations to counter AI-driven disinformation during this crucial period.
What are the Major Challenges Arising from Hasty Regulatory Responses to AI?
Escalation of Disinformation: Unintended Ramifications of Resource Allocation
- The surge in disinformation, demonstrated by manipulated videos impacting political figures, presents a formidable obstacle.
- For instance, consider the case of Tarique Rahman, a leader of the Bangladesh Nationalist Party, whose manipulated video suggested a reduction in support for Gaza's bombing victims—an action with potential electoral repercussions in a Muslim-majority country.
- Meta, the parent company of Facebook, exhibited delayed action in removing the fabricated video, raising concerns about the effectiveness of content moderation.
- Moreover, the reduction in content moderation staff due to widespread layoffs in 2023 exacerbates the challenge.
- The pressure to prioritize interventions in more influential markets may leave voters in less prominent regions, such as Bangladesh, vulnerable to disinformation, potentially leading to a global surge in disinformation due to the focus on catching misinformation from powerful governments.
Reinforcement of Industry Dominance: Amplifying Concentration and Ethical Concerns
- While well-intentioned, AI regulations risk bolstering industry concentration. Mandates such as watermarking (which are not foolproof) and red-teaming exercises (which are expensive) may inadvertently favour tech giants, as smaller companies encounter compliance obstacles.
- Such regulations could further entrench the power of already dominant players by erecting barriers to entry or rendering compliance unfeasible for startups.
- This concentration not only consolidates power but also raises apprehensions regarding ethical lapses, biases, and the centralization of consequential decisions within a select few entities.
Navigating Ethical Quagmires: Pitfalls of Sincere Guidelines
- The formulation of ethical frameworks and guidelines introduces its own complexities.
- The question of whose ethics and values should underpin these frameworks gains prominence in polarized times. Divergent perspectives on prioritizing regulation based on risk levels add layers of complexity, with some viewing AI risks as existential threats while others emphasize more immediate concerns.
- The absence of laws mandating audits of AI systems raises transparency issues, leaving voluntary mechanisms vulnerable to conflicts of interest.
- In the Indian context, members of the Prime Minister's Economic Advisory Council have even argued that the concept of risk management itself is precarious concerning AI, given its non-linear, evolving, and unpredictably complex nature.
Navigating the Complexity of AI Regulation: Strategies for Policymakers
- Acknowledge and Address Democracy's Inherent Challenges Alongside AI Threats:
- Before delving into the intricacies of AI-related risks, policymakers must acknowledge the persistent challenges facing democracy globally.
- Instances of unjust political imprisonments, threats to electoral processes, and disruptions to communication networks underscore the vulnerability of democratic systems.
- Furthermore, the enduring issues of vote-buying and ballot-stuffing tarnish the integrity of elections.
- These entrenched challenges within the democratic process provide context for evaluating the novelty of AI threats.
- Strike a Balance Between Addressing AI Risks and Implementing Sensible Regulation:
- The rush among regulators to enact AI regulations ahead of the 2024 elections, following the AI fervour of 2023, underscores the need for caution.
- While it is essential to confront the emerging threats posed by AI, hastily devised regulations may inadvertently worsen the situation.
- Policymakers must carefully consider the potential for unintended consequences and the complexities inherent in regulating a swiftly evolving technological landscape.
- It is crucial for regulators to appreciate the delicate balance required to manage AI risks without unintentionally creating new challenges or hindering democratic processes.
- Prepare for Future Challenges: Policymakers must adopt a forward-thinking approach to AI regulation, anticipating and formulating rules that not only address current risks but also proactively tackle future challenges.
- Recognizing the rapid evolution of technology, regulatory frameworks must evolve accordingly.
- By planning several steps ahead, regulators can contribute to the resilience of democratic processes, ensuring that voters in elections beyond 2024 benefit from an adaptive, proactive, and effective regulatory environment.
How Major Tech Companies Join Hands to Combat AI Misuse in Elections?
- On February 16th, 2024, a major step was taken in the fight against AI misuse in elections.
- 20 tech giants, including Microsoft, Google, Meta, and Adobe, signed a voluntary agreement called the "Tech Accord to Combat Deceptive Use of AI in 2024 Elections."
- This agreement marks a significant step towards collective action against the potential manipulation of democratic processes through deepfakes and other AI-generated content.
Key features of the Tech Accord:
- Collaborative detection and labelling: Companies pledge to develop tools and techniques for identifying and labelling deepfakes, fostering transparency and facilitating content removal.
- Transparency and user education: The accord emphasizes transparency in company policies regarding deepfakes and aims to educate users on identifying and avoiding them, raising public awareness about the technology's capabilities and limitations.
- Rapid response and information sharing: The signatories commit to sharing information and collaborating on takedown strategies for identified deepfakes, aiming for faster removal and a unified front against malicious actors.
- Additional measures: The agreement includes further commitments to invest in threat intelligence, empower candidates and officials with reporting tools, and collaborate on open standards and research.
However, critical analysis reveals potential limitations:
- Voluntary nature: The accord's voluntary character raises concerns about its enforceability and long-term effectiveness.
- Companies may prioritize competing interests over their goals.
- Technical challenges: Deepfake detection remains an evolving field with limitations.
- Continuous innovation by malicious actors can outpace detection capabilities.
- Potential for bias: Concerns exist about potential biases in detection algorithms, particularly regarding marginalized groups, further complicating the issue.
- Freedom of expression and censorship: Balancing the need for content moderation with upholding freedom of expression requires careful consideration and potential legal challenges.
Conclusion
Balancing immediate concerns with long-term implications, and addressing AI-related electoral risks requires careful regulatory foresight. While the Tech Accord offers promise in combatting AI-driven election interference, its effectiveness depends on rigorous implementation and continuous adaptation to evolving threats. Ongoing research and dialogue are crucial to address ethical concerns and ensure a balanced approach to safeguarding democracy and individual rights.
The Cost of Legal MSP is Greatly Exaggerated (Indian Express)
- 17 Feb 2024
Why is it in the News?
Farmers have resumed protests without a specific trigger, unlike their previous march against contentious farm laws. Their main demand is a legal guarantee for Minimum Support Prices (MSP).
Context:
- The renewed protest by farmers, advocating for a legal assurance of Minimum Support Prices (MSP), underscores the enduring battle for agricultural sector stability.
- Amidst this, it's crucial to delve into the intricacies of MSP, address prevailing misconceptions, and explore the advantages of formalising this system.
What is the Minimum Support Price (MSP)?
- MSP (Minimum Support Price) is the cost at which the government buys crops from the farmers, to guarantee farmers against any sharp fall in agricultural income.
- It is declared by the Government based on the proposal of the Commission for Agricultural Cost and Prices (CACP), at the start of the planting season.
- This mechanism aims to protect small and marginal farmers from financial losses and ensure an adequate supply of food grains for public distribution across India.
- Since its inception in 1966-67 for wheat, the MSP framework has expanded to cover various essential food crops, facilitating their availability to the public through subsidized rates under the public distribution system.
- However, only a small percentage, approximately 6% or less, of farmers are able to sell their produce at prices higher than the MSP.
Is the MSP Different in different states?
- Because of the variety in irrigation and wages, the expense of a similar yield changes from one state to another.
- However, there is no draft of the local Minimum Support Price, so there is one MSP for the whole country.
Significance of Minimum Support Price:
- Fixed Remunerations: The farmers are financially insured against the impulses of price fall in the market.
- It gives security to farmers from crop loss and price uncertainty.
- Help in Decision Making: MSPs are reported toward the start of the planting season, this assists farmers with settling on the best choices of crop that they should plant.
- This development data assists the farmer with settling on the best choice with regards to which yield to plant for the most extreme monetary advantage inside the restrictions of his agricultural land size, environment, and irrigation framework.
- Crop Diversification: The MSP declared by the Government of India without precedent for 1966-67 for wheat has reached out to around 24 crops at the present.
- This has urged the farmers to develop these different crops to maximize their agricultural income.
- Price Limitations for Private Purchasers: MSP conveys a value message to advertise that if vendors don’t offer higher than MSP costs the farmer may not sell them his produce.
- In this manner, it goes about as an anchor or benchmark for agricultural produce.
- It guarantees the market costs won’t be radically lower than the Minimum Support Price.
- Commercial Crops: MSP is utilized as an instrument to boost the creation of explicit food crops which is short in supply.
- MSP spurs farmers to develop commercial crops and expand creation on a commercial basis.
- Purchasing Power Enhancement: MSP provides fixed amounts in framers’ hands which makes them financially stable.
- It helps in upgrading the buying limit and updating the style of living of farmers and their families.
Challenges in Implementation of MSP:
- Selective Intervention and Limited Coverage: Despite the annual announcement of MSP for 23 crops, actual implementation tends to be selective, primarily focusing on major crops like rice and wheat.
- This limited coverage undermines the broader objective of ensuring stability across various agricultural commodities.
- MSP Implementation Bias: The unequal application of MSP, favouring specific crops, marginalizes farmers cultivating other essential commodities.
- This bias exacerbates regional disparities and impacts the economic well-being of farmers engaged in non-major crop cultivation.
- Disconnect Between Market Price and MSP: The disparity between market prices and MSP poses a significant challenge, as government intervention is triggered primarily when market prices fall below the MSP.
- Inconsistent intervention exacerbates uncertainties for farmers, leading to financial distress during market downturns.
- Perceived Government Apathy: Farmers perceive a lack of genuine interest or urgency from the government in effectively implementing MSP.
- This perceived apathy breeds distrust and frustration among farmers, fueling demands for a legal guarantee to ensure consistent and widespread implementation.
- Political Hesitation and Decision-Making Delays: While there is political consensus supporting a legal guarantee for MSP, successive governments have hesitated to formalize this mechanism.
- Delayed decision-making perpetuates uncertainties in the agricultural sector, undermining the effectiveness of MSP as a stabilizing force.
What Does a Legal Guarantee of MSP Mean and What Obstacles in Legalising MSP?
- It means that anyone paying less than the price set by the government for crops could be criminally charged.
- Currently, there is an MSP for 23 crops.
- However, the highest procurement by the government is of wheat and rice.
- According to experts, if MSP is legally guaranteed, the government will have to pay it regardless of supply and demand dynamics.
- At the moment, about 60 per cent of the total field crop production in India comes from wheat and paddy.
- Fiscal Concerns: Misconceptions regarding the fiscal implications of guaranteeing MSP have posed obstacles to its legalization.
- Despite the political consensus, concerns over perceived excessive fiscal burdens have deterred governments from formalizing MSP.
- Prevalent Misconceptions: There is a prevalent misconception that legalizing MSP necessitates government procurement of all agricultural produce, which is inaccurate.
- Government intervention is required only when market prices dip below MSP, and it does not entail the procurement of the entire marketable surplus.
- Misunderstanding of Procurement Costs and Subsidies: The cost of procuring rice and wheat is often misconstrued as the cost of the MSP program, whereas it primarily serves as a subsidy to consumers rather than farmers.
- For other crops, government procurement is not a cost unless sold with a subsidy, with the actual cost being the difference between economic cost and issue price.
Potential Advantages of Legalising MSP:
- Ensuring Uniform Implementation: Formalizing Minimum Support Prices (MSP) establishes a clear legal framework, ensuring consistent application across all crops.
- This move addresses current issues of selective intervention, providing farmers with a dependable safety net.
- Promoting Inclusive Agricultural Growth: Expanding MSP coverage to various crops ensures that price stability benefits all segments of the farming community.
- Small and marginal farmers cultivating diverse crops can access MSP protection, fostering inclusive agricultural development.
- Reducing Farmer Vulnerability: Formalizing MSP reduces farmers' susceptibility to market fluctuations by guaranteeing a minimum income for their produce.
- This assurance enables farmers to navigate uncertainties with confidence, knowing that government intervention is assured during price downturns.
- Boosting the Rural Economy: A secured MSP contributes to farmers' economic well-being, leading to increased rural income.
- This upliftment stimulates the rural economy by generating demand for goods and services, fostering growth across multiple sectors.
- Clarifying Consumer Subsidies: Formalization helps distinguish between procurement costs and consumer subsidies, often conflated as MSP program expenses.
- This clarity aids policy discussions and ensures targeted subsidy allocation, benefiting both farmers and consumers.
- Facilitating Strategic Government Operations: A legal framework empowers the government to conduct strategic operations in domestic and international markets.
- Through controlled sales during periods of high market prices, the government can manage inflation, ensuring price stability for consumers.
Conclusion
The legalization of MSP presents a holistic remedy to the agricultural sector's woes.
Beyond ensuring uniform application, it fosters diversification, inclusivity, and economic robustness, ultimately benefiting farmers and bolstering rural prosperity. By dispelling misconceptions and tackling apprehensions, policymakers can pave the way toward a more secure and prosperous future for our farmers.
Supreme Court Strikes Down Electoral Bonds Scheme (Indian Express)
- 16 Feb 2024
Why is it in the News?
A five-judge Constitution Bench of the Supreme Court on Thursday unanimously struck down the Centre’s electoral bond scheme which facilitates anonymous political donations for being unconstitutional.
Context:
- A five-judge Constitution Bench of the Supreme Court on Thursday unanimously struck down the Centre’s electoral bond scheme which facilitates anonymous political donations for being unconstitutional.
- It underscored that the scheme violates the right to information under Article 19(1)(a) of the Constitution.
- Additionally, the Apex Court nullified several amendments introduced by the government in vital laws to streamline corporate donations to political parties.
- These amendments were incorporated through The Finance Act, 2016, and The Finance Act, 2017, preceding the implementation of the EBS in January 2018.
- The decision followed petitions from the Communist Party of India (Marxist) and NGOs Common Cause and ADR.
Key Highlights of the SC Judgement:
- Protection of Voters' Right to Information: The court emphasized that access to information regarding political party funding is crucial for informed voting.
- It argued that economic disparities lead to political inequalities, as financial resources often translate into greater political influence and access to policymakers.
- Thus, the Electoral Bonds Scheme (EBS) was deemed to violate Article 19(1)(a) of the Constitution, safeguarding freedom of speech and expression.
- Disproportionate Restrictions on Curbing Black Money: While acknowledging the importance of curbing black money, the court found the restrictions imposed by the EBS disproportionate.
- It clarified that restrictions on the Right to Information (RTI) should align with Article 19(2) of the Constitution, which outlines reasonable restrictions on freedom of speech and expression.
- Curbing black money was not deemed a valid reason for such restrictions.
- Right to Donor Privacy: The judgement delved into the notion of donor privacy, particularly regarding political contributions.
- It affirmed that the right to informational privacy encompasses political affiliation.
- However, it clarified that privacy does not extend to contributions aimed at influencing policies, emphasizing genuine political support over attempts to obscure motives, especially those of corporate entities.
- Limits on Corporate Political Contributions: The court declared unlimited political contributions by companies unconstitutional.
- It highlighted the disproportionate influence of corporations on the political process compared to individuals.
- Contributions from companies were viewed as business transactions aimed at securing benefits, which undermined the democratic process and equality in political participation.
What was the Existing System Before the Introduction of EBS?
- Before the enactment of The Finance Act 2016 and The Finance Act 2017, political funding operated under a different framework:
- Contribution Declarations: Political parties were mandated to declare all contributions exceeding Rs 20,000 without any exceptions.
- Detailed records of donations exceeding Rs 20,000 were required for taxation purposes.
- Limits on Corporate Donations: Companies were subject to a cap on their political contributions, restricted to a maximum of 7.5% of their average net profits from the preceding three years.
- Amendments through The Finance Act 2017: The Finance Act of 2017 brought significant changes to political funding regulations by amending key legislations like the Representation of the People Act, 1951, the Income-tax Act, 1961, and the Companies Act, 2013.
- These amendments introduced electoral bonds, altering the landscape of political party funding:
- Introduction of Electoral Bonds: Electoral bonds were introduced, effectively removing donation limits for companies.
- The requirement to declare and maintain records of donations made through electoral bonds was eliminated, streamlining the process of political contributions.
Supreme Court Verdict:
- The recent Supreme Court verdict has reinstated the legal framework that existed before the enactment of the Finance Act, 2017, impacting various statutes:
- Representation of the People Act, 1951: The original Section 29C of the Act mandated political parties to report all donations exceeding Rs 20,000, specifying whether they were from individuals or companies.
- Amendments introduced by the Finance Act, 2017 exempted donations via Electoral Bonds from this reporting requirement.
- The Supreme Court overturned this amendment, asserting that the original provision effectively balanced voters' right to information with donors' right to privacy.
- Companies Act, 2013: Section 182(1) previously limited corporate donations to political parties to 7.5% of average net profits over three years.
- Section 182(3) requires disclosure of all political contributions made by companies.
- Amendments removed the donation cap and reduced disclosure requirements.
- The Supreme Court struck down these changes, citing concerns about unchecked corporate influence in electoral processes.
- Income-tax Act, 1961: Section 13A(b) mandated political parties to maintain records of donations above Rs 20,000, including donor details.
- Amendments exempted Electoral Bond contributions from these reporting requirements and introduced new donation methods.
- The Supreme Court ruled that exempting Electoral Bond donations from record-keeping violated voters' right to information and struck down both amendments.
Supreme Court's Directives:
- Instructions to SBI: SBI is instructed to immediately halt the issuance of any further electoral bonds.
- Provide detailed information on electoral bonds purchased by political parties since April 12, 2019, to the Election Commission of India (ECI) by March 6.
- Furnish specifics including the purchase date, purchaser's name, and bond denomination for each transaction.
- Election Commission's Obligations: The ECI is directed to publish all received data from SBI on its official website by March 13, 2024.
- Return of Electoral Bonds: Electoral bonds within the 15-day validity period, yet to be encashed by political parties, must be returned.
- The issuing bank will then reimburse the amount to the purchaser's account.
Evaluation of the Latest Ruling:
- The recent Supreme Court ruling establishes a rigorous standard for the state to justify its interference with fundamental rights, even when pursuing a conflicting right.
- It mandates that the state must prove that its action is the "least restrictive" and that no other methods of equal effectiveness exist to achieve its goal.
- Traditionally, the judicial balance between two fundamental rights has often favoured one right over the other.
- In numerous instances, the court has prioritized public interest over individual fundamental rights, thereby granting the state considerable authority.
- For instance, in 2018, the Supreme Court curtailed the right to protest near Delhi’s Jantar Mantar to uphold the right to a peaceful residence and the state's regulatory power over such activities.
What are Electoral Bonds and Why Were They Introduced?
- An electoral Bond is a type of financial instrument that functions like a Promissory Note and an interest-free banking tool.
- Any Indian citizen or organisation registered in India can buy these bonds after fulfilling the Know Your Customer (KYC) norms laid down by the Reserve Bank of India (RBI).
- Before the introduction of Electoral Bonds, political parties in India relied heavily on donations from individuals and corporate entities to fund their election campaigns and day-to-day activities.
- The need for electoral reforms to address these concerns was highlighted by various stakeholders, including civil society organisations, electoral watchdogs, and the judiciary.
- In response, the government initiated efforts to reform the electoral system and enhance transparency in political funding.
- Electoral Bonds were introduced in India through the Finance Act, of 2017, as a means of reforming political funding and promoting transparency.
Key Features of Electoral Bonds:
- Anonymity: One of the key features of Electoral Bonds is the anonymity of the donor.
- Unlike traditional forms of political donations, where the identity of the donor is disclosed to the public and the receiving political party, Electoral Bonds allow donors to remain anonymous.
- This was intended to protect the privacy and security of donors and shield them from potential retribution or harassment.
- Denominations: Electoral Bonds are available in various denominations ranging from ?1,000 to ?1 crore (10 million).
- Donors can purchase these bonds from notified banks in India, with the State Bank of India (SBI), the largest public sector lender in the country, being the only authorised institution to issue Electoral Bonds.
- Validity: Electoral Bonds have a validity period within which they must be redeemed.
- As per the existing regulations, the bonds have a validity of 15 days from the date of issuance.
- This timeframe is designed to ensure that the bonds are promptly encashed by the receiving political parties.
- Transparency: While the identity of the donor remains anonymous, the sale and redemption of Electoral Bonds are recorded electronically by the issuing bank.
- This electronic tracking system is intended to enhance transparency in the overall process of political funding and enable regulatory authorities to monitor the flow of funds.
WTO Pressure on Indian Farm Subsidies Amid Farmer's Protest for MSP (Indian Express)
- 15 Feb 2024
Why is it in the News?
The government might find it challenging to meet the protesting farmers' demand for a legal guarantee of (MSP) due to India's farm subsidies being scrutinised at the (WTO), especially with criticism from a group of 19 influential agricultural exporting countries.
Background:
- After independence, our country struggled to produce enough food for its large population as the agriculture sector was in a poor state.
- To address this challenge, we either had to import grains, which incurred significant costs, or rely on aid from other nations.
- In 1960, the government took steps toward self-sufficiency. They introduced high-yielding seeds, promoted the use of fertilisers, and improved agricultural machinery.
- At the same time, the government supported rice and wheat cultivation by offering farmers a Minimum Support Price (MSP).
- This ensures that farmers receive a fair price; if they can't sell their crops for a better price in the market, the government will buy them at a favourable rate.
- However, there's currently tension between India and the WTO regarding these subsidies.
Green Revolution
- The Green Revolution, initiated in the 1960s, aimed to enhance agricultural productivity and bolster the nation's economy.
- India embraced technological and industrial advancements in agriculture during this era.
- This included the adoption of high-yield seeds, modern farming equipment, irrigation systems, pesticides, and fertilisers to transform the agricultural landscape.
- The green revolution helped India move from a state of importing grains to a state of self-sufficiency.
Causes of Tensions Between India and the WTO:
- India's actions in this realm have stirred discontent among other nations, who perceive India's practices as unfair trade manoeuvres.
- The government's practice of procuring crops from farmers at low prices and subsequently exporting them at reduced rates to global markets has drawn criticism.
- Developed countries have lodged complaints, alleging multiple instances of India breaching WTO regulations by providing subsidies amounting to 60-70% of the total crop value.
- While the WTO permits governments to offer subsidies to farmers, it imposes restrictions, allowing developed countries to provide up to 5% and developing countries up to 10% of the total value in subsidies.
What are the WTO Regulations on Farm Subsidies?
- The WTO regulations on farm subsidies aim to promote fair competition and prevent global trade distortion.
- These regulations establish limits on the types and levels of subsidies that member countries can offer to their agricultural sectors.
- Levels of Subsidies:
Green Box:
- These subsidies have minimal impact on trade distortion.
- They are not specific to particular products and are generally permissible under WTO rules.
- Examples include funding for research, environmental conservation, and direct income support for farmers facing challenges such as crop loss or natural disasters.
Amber Box:
- These subsidies promote excessive production and distort international trade.
- Examples include input subsidies like those for seeds, fertilisers, and Minimum Support Price (MSP).
- WTO restricts these subsidies, capping them at 5% for developed countries and 10% for developing countries.
Blue Box:
- These subsidies, akin to Amber Box subsidies, aim to limit production.
- Currently, only a few countries, such as Norway and Iceland, utilise these subsidies.
- The WTO does not impose any limits on these subsidies.
Why India's Agricultural Subsidy Programs Encounter Challenges in the WTO?
- India's agricultural subsidies face hurdles at the WTO due to the organisation's rules, which do not consider subsidies on a per-farmer basis, disadvantageous to developing countries like India.
- For instance, although India's per-farmer subsidy is significantly lower compared to countries like the US, the WTO regulations focus on total subsidy amounts.
- In 2019-20, India's subsidies exceeded the 10% limit relative to its total rice production, despite the per-farmer subsidy being relatively modest at $300 compared to the US's $40,000 per farmer.
- While India is safeguarded by the 'Peace Clause' established during the WTO's Bali ministerial in 2013, certain ambiguities in the clause leave India vulnerable to disputes.
- Consequently, new schemes must adhere to the 10% subsidy ceiling, foregoing protection under the 'Peace Clause'.
Criticism of India’s Agricultural Subsidies by Influential Agricultural Exporting Countries:
- The Cairns Group, which includes countries like Australia, Brazil, and Canada, has raised concerns about the level of subsidisation in India’s public stockholding (PSH) program.
- They argue that India's agricultural support measures are significantly subsidised, leading to distortions in global food prices and negatively impacting food security in other nations.
- Last year, the group circulated a comprehensive proposal aimed at reducing trade-distorting agricultural support among WTO members, advocating for a halving of the total global entitlement/subsidies.
- This proposal sparked tensions among developing nations, with India among those affected.
- Essentially, the Cairns Group is advocating for India to either dismantle or scale back its Minimum Support Price (MSP) scheme, prompting India to seek stronger legal protection for its MSP program.
Upcoming Challenges for the Government of India:
- In pursuit of greater flexibility in providing agricultural support, India is actively advocating for a permanent solution at the forthcoming inter-ministerial summit in Abu Dhabi.
- However, the entrenched impasse on politically sensitive issues between developed and developing nations makes resolution unlikely.
- Farmers' groups in India advocate for removing agriculture from the purview of the WTO, but this approach could present challenges and hinder India and other developing nations from regulating subsidies provided by developed countries.
- The government faces a dilemma, as it grapples with peer pressure at the WTO while simultaneously facing demands for Minimum Support Price (MSP) from farmers.
- The call for better MSP support isn't limited to Punjab farmers; farmers across the nation are seeking similar assurances.
- Furthermore, if farmers in Punjab and Haryana shift away from agriculture, it could pose a threat to the country's food security.
Way Forward
- While India currently avoids disputes on the subsidy matter at the WTO due to the non-functionality of the Dispute Settlement Body (DSB), member countries will continue to scrutinise India's adherence to subsidy limits.
- As a result, India must advocate not only for adjustments to the formula used to calculate the food subsidy cap within the WTO but also for the inclusion of programs implemented after 2013 under the protection of the 'Peace Clause'.
Inauguration of BAPS Temple in UAE by PM Modi: Exploring Its Unique Features, Architecture, and Significance (Indian Express)
- 14 Feb 2024
Why is it in the News?
During his two-day visit to UAE, Prime Minister Modi will inaugurate the BAPS Swaminarayan temple in Abu Dhabi, the first Hindu temple in the Gulf nation.
Context:
- Prime Minister Modi on Wednesday inaugurated the (BAPS) temple, the first-ever Hindu temple in the United Arab Emirates (UAE).
- The iconic stone temple is located in Abu Mureikhah, near Al Rahba off the Dubai-Abu Dhabi Sheikh Zayed Highway.
- The inauguration of the 108-ft high temple marks a significant moment for the Hindu community in UAE and the two countries’ bilateral ties.
What is BAPS?
- Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha (BAPS) is a socio-spiritual Hindu organisation founded on the principles of practical spirituality.
- The temple was built by the organisation, a denomination of the Swaminarayan Sampradaya, a Vaishnav sect of Hinduism.
- With over 3,850 centres globally, BAPS has garnered national and international recognition, including affiliation with the United Nations.
- Through vows of abstinence and purity, BAPS fosters a foundation for humanitarian endeavours, caring for societies, families, and individuals.
What Does BAPS Do?
- The BAPS Swaminarayan Sanstha views spirituality as its core mission. Through gradual steps, it strives to draw individuals closer to God.
- In collaboration with BAPS Charities, the organization extends its outreach globally, addressing diverse humanitarian needs.
- From education to healthcare and environmental concerns, practical solutions are offered to real-world problems, impacting lives on both macro and micro scales.
- BAPS has a network of around 1,550 temples across the world, including the Akshardham temples in New Delhi and Gandhinagar, and Swaminarayan temples in London, Houston, Chicago, Atlanta, Toronto, Los Angeles, and Nairobi.
Who is Swami Narayan?
- Bhagwan Swaminarayan’s life and work have not only influenced communities in Gujarat, India but have affected change throughout the world.
- He reestablished Hindu Sanatan Dharma, cleansing traditions and rituals of the impurities that had seeped in over time.
- His contributions have been hailed by Hindus and dignitaries of other faiths as truly transforming the lives of millions of individuals.
- He improved societal standards and, most importantly, the innate nature of people, eradicating them from lust, anger, greed, and envy.
- Bhagwan Swaminarayan’s teachings transcended borders, rejuvenating Hindu traditions worldwide.
What are the Features of the (BAPS) Temple?
- The Abu Dhabi temple is a traditional stone Hindu temple with seven shikhars.
- Built in the traditional Nagar style, the temple’s front panel depicts universal values, stories of harmony from different cultures, Hindu spiritual leaders and avatars.
- Spread over 27 acres, the temple complex is on 13.5 acres
- The 13.5 acres of land was gifted by Sheikh Mohammed Bin Zayed Al Nahyan, the President of the UAE in 2019.
- The height of the temple is 108 ft, its length 262 ft and its width 180 ft.
- While the external facade uses pink sandstone from Rajasthan, the interior uses Italian marble.
- A total of 20,000 tonnes of stones and marble were shipped in 700 containers for the temple.
- More than Rs 700 crore was spent on the temple’s construction.
- The temple has two central domes, Dome of Harmony and Dome of Peace, emphasizing human coexistence through the carvings of earth, water, fire, air, and plants.
- A Wall of Harmony, one of the largest 3D-printed walls in the UAE, features a video showcasing key milestones of the temple’s construction.
- The word ‘harmony’ has been written in 30 different ancient and modern languages.
- The seven shikhars (spires) are representative of the seven Emirates of the UAE.
- Other amenities include an assembly hall with a capacity of 3,000 people, a community centre, exhibitions, classrooms, and a majlis venue.
What are the Key Architectural Features?
- The temple was judged the Best Mechanical Project of the Year 2019 at the MEP Middle East Awards, and the Best Interior Design Concept of the Year 2020.
- Among the key architectural features are 96 bells and galumphs installed around the path leading to the temple.
- These 96 bells are a tribute to Pramukh Swami Maharaj’s 96 years of life.
- Nano tiles have been used, which will be comfortable for visitors to walk on even in the hot weather.
- On the top left of the temple is a stone carving of the scene of Pramukh Swami Maharaj envisioning the temple in Abu Dhabi in 1997.
- Non ferrous material (which is more vulnerable to corrosion) has been used in the temple.
- While many different types of pillars can be seen in the temple, such as circular and hexagonal, there is a special pillar, called the ‘Pillar of Pillars’, which has around 1,400 small pillars carved into it.
- Buildings surrounding the temple are modern and monolithic, with their colour resembling sand dunes.
- Deities from all four corners of India have been featured in the temple.
- These include Lord Ram, Sita, Lakshman and Hanuman, Lord Shiv, Parvati, Ganpati, Kartikeya, Lord Jagannath, Lord Radha-Krishna, Akshar-Purushottam Maharaj (Bhagwan Swaminarayan and Gunatitanand Swami), Tirupati Balaji and Padmavati and Lord Ayappa.
- The temple also has some special features, like a ‘holy river’ surrounding it, for which waters from Ganga and Yamuna have been brought in.
- The river Saraswati has been depicted in the form of white light.
- A Varanasi-like ghat has been created where the ‘Ganga’ passes.
- Apart from 15 value tales from Indian civilisation, stories from the Maya civilisation, Aztec civilisation, Egyptian civilisation, Arabic civilisation, European civilisation, Chinese civilisation and African civilisation have been depicted.
What is the Significance of the Temple?
- A Muslim king donated land for a Hindu Mandir, where the lead architect is a Catholic Christian, the project manager a Sikh, the foundational designer a Buddhist, the construction company a Parsi group, and the director comes from the Jain tradition.
Religious Significance:
- First Hindu stone temple in Abu Dhabi: This marks a historic milestone for the Hindu community in the UAE, providing them with a dedicated place of worship and cultural centre.
- Symbol of religious tolerance: The temple's inauguration signifies the UAE's growing acceptance and appreciation of religious diversity, fostering interfaith dialogue and understanding.
Cultural Significance:
- Strengthens India-UAE ties: The temple stands as a symbol of the strong cultural and diplomatic relations between India and the UAE, promoting mutual understanding and cooperation.
- Promotes Indian culture: The temple serves as a platform to educate the UAE community about Indian art, architecture, and traditions, fostering cultural exchange and appreciation.
Social Significance:
- Provides a sense of belonging: The temple offers a space for the Hindu community to gather, celebrate festivals, and connect with their cultural roots, fostering a sense of belonging and identity.
- Promotes social integration: The temple's open-door policy welcomes people of all faiths, encouraging social interaction and understanding between different communities in the UAE.
- Strengthens social fabric: The temple's emphasis on values like compassion, service, and community engagement contributes to strengthening the social fabric of UAE society.
Overall, the BAPS Swaminarayan Mandir in Abu Dhabi represents a significant step forward in religious tolerance, cultural exchange, and community building in the UAE. It serves as a testament to the growing understanding and appreciation between India and the UAE, and its impact will be felt for generations to come.
Gender Gap In STEMM and Government Efforts to Address It (Indian Express)
- 13 Feb 2024
Why is it in the News?
Principal Scientific Advisor to the Government of India Prof Ajay Kumar Sood launched Science for Women-A Technology & Innovation (SWATI), a portal aimed at representing girls in STEMM (Science, Technology, Engineering, Mathematics & Medicine).
Background:
- Gender inequality in the science sector has persisted as a significant issue, prompting a series of interventions to rectify this imbalance.
- Hence, delving into the trajectory of endeavours to narrow the gender divide in Indian science becomes crucial, particularly with the introduction of SWATI (Science For Women- A Technology & Innovation).
- This portal seeks to establish an extensive repository of female scientists across the nation, marking a significant milestone in this ongoing journey.
What is the SWATI Portal?
- SWATI Portal is a pioneering initiative aimed at establishing a unified online platform dedicated to showcasing Indian Women and Girls in STEMM (Science, Technology, Engineering, Mathematics & Medicine).
- The database hosted on the SWATI Portal serves as a valuable resource for informing policy decisions aimed at addressing gender disparities in STEMM fields.
- Developed, hosted, and maintained by the National Institute of Plant Genome Research (NIPGR), New Delhi, SWATI Portal stands out as the first-of-its-kind initiative in India.
Objectives:
- To significantly expand the scope of representation, encompassing every Indian woman in science across various career stages and disciplines, spanning both academia and industry.
- Facilitating robust and enduring research on equality, diversity, and inclusivity issues in India through the establishment of a comprehensive and searchable database.
- Sections within the portal include categories such as Icons (Padma/Shanti Swarup Bhatnagar/Stree Shakti Science Samman awardees), Directors, Secretaries, Academy Presidents, Faculty from Indian Universities, and personnel from autonomous organizations including S&T Ministry, CSIR, DBT, DST, MHRD, UGC, GATI, and KIRAN.
The 2004 INSA Report and the Systematic Discrimination in Indian Science:
- Recognition of Disparity: In 2004, the Indian National Science Academy (INSA) released a pivotal report that reshaped discussions on gender disparities in Indian science.
- This landmark document departed from conventional discourse by not only highlighting the gender gap but also delving into the complex layers of discrimination, including caste-related issues.
- Notably, the report garnered governmental endorsement, marking a significant acknowledgement of the imperative to investigate and rectify gender imbalances in the scientific domain.
- A nuanced Approach to Gender Disparity: The report transcended simplistic narratives, unveiling evidence of workplace bias rooted not only in gender but also in caste dynamics.
- This holistic perspective offered insights into the multifaceted challenges encountered by women in science, challenging prevalent assumptions that attributed the gender gap solely to familial responsibilities.
- Of particular significance was the collaboration between scientists and social scientists, fostering a deeper understanding of the societal dimensions of gender disparities within the scientific realm.
- This interdisciplinary synergy represented a departure from the traditional isolation of the scientific community from social science discourse on gender equality.
- Proposed Solutions and Recommendations: Advocating for proactive measures, the report underscored the need for collective action from policymakers, academia, and the scientific community to redress gender imbalances.
- By providing a comprehensive analysis of the hurdles faced by women in science, the INSA report laid the groundwork for subsequent initiatives, transcending surface-level assessments.
- Its recommendations influenced the trajectory of gender-related endeavours in the Indian scientific landscape, catalyzing a series of initiatives aimed at fostering inclusivity and equity.
Next Steps and Obstacles: Handling the Complicated Environment:
- National Conference of Women Scientists: Concurrently, the Department of Science and Technology (DST) convened a national conference in 2008, gathering over a thousand women scientists in response to the INSA report.
- During this event, the Science and Technology Minister unveiled ambitious support measures, including flexible work arrangements, childcare facilities, research grants, and housing options.
- However, the execution of these pledges encountered obstacles, with the envisioned standing committee failing to materialize, resulting in the delayed realization of promised advancements.
- IASc Report on Women's Attrition in Science: In 2010, IASc conducted a comprehensive survey on the factors contributing to women leaving the scientific field.
- The findings, based on responses from approximately 800 scientists, unveiled a multifaceted array of reasons, with women emphasizing organizational challenges alongside familial and societal pressures.
- These challenges included inflexible schedules, inadequate infrastructure, and pervasive discrimination, underscoring the necessity for systemic reforms rather than attributing departures solely to individual choices.
- Launch of "Lilavati's Daughters": Following the INSA report, the Indian Academy of Sciences (IASc) published "Lilavati's Daughters" in 2008, a compilation aimed at spotlighting the accomplishments of women in science and dispelling stereotypes.
- Discrepancies Between Intentions and Actions: The disparity between announced initiatives and their implementation underscored bureaucratic obstacles impeding progress.
- The stalling of the proposed standing committee exemplified bureaucratic hurdles that hindered the translation of well-intentioned policies into tangible outcomes for women in science.
Newer Strategies to Tackle Gender Disparity in Indian Science:
- Gender Advancement for Transforming Institutions (GATI): GATI introduces a progressive approach to addressing gender disparities, departing from conventional methods.
- Its charter, reflecting evolving gender discourse, embraces more inclusive language and practices.
- Recognizing transgender identities and advocating for gender-neutral parental leave, GATI acknowledges the diverse spectrum within the scientific community.
- Science, Technology, and Innovation Policy (STIP) 2020: The draft STIP 2020 signifies a shift towards a more inclusive science policy paradigm.
- By integrating provisions for transgender inclusion and advocating for gender-neutral parental leave, STIP 2020 aims to foster an environment supportive of scientists across genders.
- SWATI: Science for Women- A Technology & Innovation: SWATI, unveiled on International Women's Day 2021 by the former Department of Biotechnology (DBT) chief, Renu Swarup, promises to be a pioneering platform.
- Initially described as a portal dedicated to women scientists in DBT and its Autonomous Institutions, SWATI holds potential as a vital resource for advancing gender equality in the scientific sphere.
- However, detailed information about SWATI has been scarce until recent developments.
Is SWATI a Fresh Start or a Familiar Cycle?
- The introduction of SWATI signifies a commitment to integrating women into the domains of science and technology, recognizing their invaluable contributions.
- However, scepticism arises from past initiatives that initially generated excitement but ultimately faltered.
- Despite this, several aspects of SWATI instill optimism. The platform's inclusivity extends to all genders beyond the male binary, emphasizing support for scientists with diverse gender identities.
- Unlike previous endeavours, SWATI adopts a flexible approach, eschewing rigid criteria such as mandatory PhD qualifications, and acknowledging the diverse roles women play in science, regardless of formal degrees.
Conclusion
While the introduction of SWATI offers hope for progress in gender equity within Indian science, it's crucial to maintain a balance of optimism and caution. The effectiveness of SWATI will be determined by its transformation from a concept into a resilient and transparent platform capable of comprehensively addressing the multifaceted challenges confronting women in the scientific realm.
A Privileged Strategic Partnership, Without a Gulf (The Hindu)
- 12 Feb 2024
Why is it in the News?
PM Modi is scheduled to pay an official visit to the United Arab Emirates (UAE) from February 13-14, 2024 which will include inaugurating a temple built by the Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha in Abu Dhabi.
Background:
- The upcoming official visit of the Indian Prime Minister to the United Arab Emirates (UAE) scheduled for February 13-14, 2024, signifies a pivotal moment in the evolving rapport between the two countries.
- This visit offers an opportunity to examine the diverse dimensions of the strategic partnership between India and the UAE, encompassing diplomatic, economic, cultural, and geopolitical connections that have matured over time.
- The Prime Minister will address the World Government Summit in Dubai as the ‘Guest of Honour’.
The Nature of India-UAE Special Diplomatic Relations:
- Elevated Diplomatic Engagements and Mutual Gestures: The essence of the India-UAE strategic partnership in diplomacy is marked by a sequence of notable visits, reciprocal actions, and joint endeavours, underscoring the depth of their association.
- The forthcoming seventh visit of the Indian Prime Minister to the UAE, scheduled for February 13-14, 2024, reinforces the diplomatic bonds between the two countries.
- Personal Connection: The close and amicable bond between Prime Minister Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan serves as a cornerstone in diplomatic interactions.
- This personal connection has evolved through frequent encounters, discussions, and collaborative initiatives across various domains.
- Their shared vision acts as a catalyst for expanding cooperation across diverse sectors.
- Special Collaborative Ventures: The diplomatic cooperation extends beyond regular interactions to encompass special events and joint initiatives that highlight the importance of their partnership.
- For instance, the felicitation of the UAE President in Gandhinagar during the Vibrant Gujarat Summit is a notable instance.
- This reciprocal gesture underscores the mutual respect and camaraderie between the leaders.
- Global Environmental Endeavours: Both nations actively contribute to global endeavours addressing climate change.
- Their joint involvement in the Global Green Credit Initiative underscores their dedication to environmental sustainability.
- This shared commitment to global issues demonstrates a diplomatic convergence that transcends bilateral interests, positioning India and the UAE as responsible global participants.
- Strategic Partnerships: The strategic alignment between India and the UAE is evident in their engagement in various international forums and alliances.
- Their participation in the West Asian Quad (I2U2) and the India-Middle East-Europe Economic Corridor highlights a shared commitment to regional stability and economic progress.
- These partnerships further solidify their diplomatic collaboration in shaping geopolitical dynamics.
- Crisis Management: The diplomatic ties between India and the UAE are tested during critical junctures, such as the ongoing conflict in Gaza.
- The scheduled visit presents an opportunity for both leaders to discuss pressing regional issues, showcasing their dedication to addressing challenges and preserving regional stability.
- People-Centric Diplomacy: Cultural exchanges and people-to-people connections significantly contribute to diplomatic relations.
- Instances like the UAE conferring the Order of Zayed on Prime Minister Modi and India's role as the 'Guest of Honour' at the Abu Dhabi Festival underscore the cultural aspects of the partnership.
- Such gestures foster mutual understanding and goodwill among the citizens of both nations.
Additional Highlights of the UAE-India Strategic Partnership:
- Energy Security: The UAE's role as a vital partner in India's energy security is underscored by agreements on strategic oil reserves stored in India and collaborations on crude oil storage facilities.
- The partnership between Indian Strategic Petroleum Reserves Ltd and the Abu Dhabi National Oil Company reflects a shared commitment to securing energy resources.
- Defence and Security Collaboration: Both nations actively engage in defence and security cooperation, demonstrating mutual trust and a dedication to regional stability.
- Instances such as India's special invitation to the OIC Foreign Ministers’ Meeting and the UAE's participation in the G-20 summit under India’s presidency exemplify a unique level of diplomatic understanding.
- Cultural and People-to-People Connections: Cultural exchanges, exemplified by India's role as the 'Guest of Honour' at the Abu Dhabi Festival and the conferral of the Order of Zayed on PM Modi, strengthen people-to-people bonds.
- Initiatives like the establishment of the IIT Delhi Abu Dhabi campus and the opening of a UAE consulate in Hyderabad further enrich the cultural and educational facets of the partnership.
- The BAPS temple: Constructed on a generous donation of a 27-acre land parcel by the UAE President
- It stands as the UAE's second prominent Hindu temple, following the inauguration of the Hindu Temple in Dubai in 2022.
- Geopolitical Alignment: Both countries' participation in significant groupings like I2U2 and the India-Middle East-Europe Economic Corridor underscores their shared geopolitical interests.
- The UAE's involvement in the corridor, aimed at linking India to Europe, presents a potential alternative to China’s Belt and Road Initiative.
- Fintech: The RuPay card, an integral part of India’s Digital Public Infrastructure (DPI), has been operational in the UAE since 2019. Starting from July 2023, transactions using the Indian rupee have been facilitated at Dubai’s airports.
- Regional Dynamics: The ongoing conflict in Gaza introduces an additional layer of complexity to regional dynamics, offering an opportunity for leaders to address pressing issues.
Way Forward:
- Both nations maintain close coordination within the region and participate in several significant groupings, including the I2U2.
- The UAE's involvement in the India-Middle East-Europe Economic Corridor (IMEEC) infrastructure project, established during the G-20 summit in Delhi, aims to link India to Europe via the Arabian peninsula.
- This corridor presents a potential alternative to China’s Belt and Road Initiative.
- India boasts numerous strategic partnership agreements globally, yet none exhibit the depth of convergence and mutual respect as the one with the UAE.
- While India acknowledges and appreciates the UAE’s regional role, the UAE also acknowledges India's forthcoming 'global leadership' role.
- Both nations anticipate the continued strengthening of this privileged strategic partnership in the years to come.
Conclusion
The India-UAE strategic partnership exemplifies the extensive and varied connections that have developed over time. Spanning diplomatic, economic, and cultural spheres, as well as shared geopolitical goals, this relationship serves as a paradigm of harmony and mutual regard.
With a shared vision for continued advancement, the privileged strategic partnership is positioned for further enhancement in the future.
The Call for a Progressive Outlook in India's Bilateral Investment Treaties (Indian Express)
- 10 Feb 2024
Why is it in the News?
While presenting the interim Union budget, Finance Minister Nirmala Sitharaman stated that India will be negotiating Bilateral Investment Treaties (BITs) with its trade partners to boost the inflow of foreign direct investment.
Background:
- India's economic terrain is undergoing a significant shift following the Finance Minister's announcement of plans to negotiate Bilateral Investment Treaties (BITs) during the interim Union budget presentation.
- This decision arrives at a critical juncture, coinciding with India's struggle to address declining levels of foreign direct investment (FDI) and the aftermath of adopting the 2016 Model BIT.
- Given these circumstances, it becomes imperative to explore the evolution of India's BITs, assess the implications of the 2016 model, and analyze the recent policy shift to gauge its potential impact on FDI.
Evolution of Bilateral Investment Treaties (BITs) in India:
- Origins of BITs in India (1990s): During the mid-1990s, India embarked on a significant economic policy shift by initiating Bilateral Investment Treaties (BITs) to attract foreign direct investment (FDI) and create an enabling environment for economic growth.
- The primary aim was to demonstrate India's commitment to protecting investments made by individuals and companies from partner countries.
- The signing of the first BIT between India and the UK in 1994 laid the groundwork for a series of agreements that would play a pivotal role in India's global economic integration.
- Expansion of BITs as Economic Diplomacy (Late 90s to 2000s): BITs in India evolved into strategic tools to mutually encourage and safeguard investments in each other's territories.
- As India sought to position itself as a premier investment destination, these treaties became instrumental in signaling its dedication to safeguarding the rights and interests of foreign investors.
- This period witnessed a proliferation of BITs, reflecting India's acknowledgement of the importance of foreign capital in stimulating domestic industries and infrastructure development.
- Emerging Challenges and Disputes (2010s): The significance of BITs became evident in 2010 with the settlement of the first-ever investor treaty claim in India.
- Subsequent events, including the unfavorable award in the Australia-India BIT dispute (White Industries v Republic of India) in 2011, underscored the complexities and challenges associated with managing disputes arising from these agreements.
- By 2015, India found itself embroiled in 17 known BIT claims, with the Cairn Energy Plc case being particularly notable.
- These challenges prompted a critical reassessment of India's approach, leading to the adoption of the 2016 model BIT.
- Adoption of the 2016 Model BIT and Policy Shift: The adoption of the 2016 model BIT signalled a significant shift in India's approach to BITs.
- It was viewed as a protective measure, resulting in the termination of numerous existing treaties.
- However, the 2016 model BIT faced criticism for its exclusion of key international law principles, such as 'fair and equitable treatment' and 'most favoured nation.'
- Additionally, it introduced a requirement for investors to exhaust local remedies before resorting to international arbitration, potentially delaying the dispute resolution process.
Issues with the 2016 Model of BIT and their Consequences:
- Protective Nature: The introduction of the 2016 Model BIT marked a significant shift in India's approach to bilateral investment treaties, aiming for greater protection.
- Positioned as a response to past disputes, it led to the termination of numerous existing treaties, signalling a desire to recalibrate engagement terms with foreign investors.
- However, concerns arose about its potential impact on India's attractiveness as an investment destination.
- Absence of Key International Law Doctrines: Criticism was directed at the 2016 model BIT for deviating from established international law doctrines.
- Notably, it lacked principles like "fair and equitable treatment" and "most favoured nation," raising doubts about fairness and protection for foreign investors.
- This omission complicated the interpretation and enforcement of investment agreements, adding uncertainty for investors.
- Requirement for Exhausting Local Remedies: The 2016 model BIT introduced a requirement for investors to exhaust local remedies before pursuing international arbitration.
- While this aimed to promote domestic dispute resolution, it created delays and challenges.
- Investors found navigating local legal systems time-consuming and ineffective, potentially discouraging investment.
- Adverse Impact on FDI and Renegotiation Challenges: The consequences of the 2016 model BIT were evident in declining FDI in India.
- FDI equity inflows dropped by 24% to $20.48 billion in April-September 2023, reflecting investor concerns.
- The termination of existing treaties and challenges with the new model hindered India's ability to renegotiate terms, affecting its attractiveness to foreign investors.
- The Cairn Energy Plc case, resulting in a significant award against India, highlighted the difficulties under the 2016 model BIT.
Government Recommendations and Policy Reforms Following Challenges with the 2016 BIT Model:
- Acknowledgement of Limitations and Policy Adjustment: Recognizing the constraints and hurdles posed by the 2016 Model BIT, the Indian government has signalled a shift towards more adaptable and practical strategies.
- The announcement during the presentation of the interim Union budget, highlighting the negotiation of Bilateral Investment Treaties with trading partners, signifies a departure from rigid approaches.
- This acknowledgement underscores the necessity for a nuanced approach that considers evolving international investment dynamics and global economic shifts.
- Parliamentary Standing Committee Proposals: In 2021, the Parliamentary Standing Committee on External Affairs proposed several key recommendations to reevaluate the existing BIT framework.
- These recommendations aimed to tackle challenges associated with the 2016 model BIT and foster a more investor-friendly environment.
- One notable recommendation emphasized the importance of timely dispute resolution through pre-arbitration consultations and negotiations.
- This proactive stance aims to streamline the dispute-resolution process and alleviate pressure on both foreign investors and the Indian legal system.
- Addressing India's Contract Enforcement Ranking: India's low ranking in contract enforcement, currently at 163 out of 190, remains a significant concern.
- Recognizing the link between an efficient legal framework and foreign investment attractiveness, recommendations from the Parliamentary Standing Committee serve as a call to action.
- A timely review of treaties and alignment with global best practices becomes crucial to improving the ease of doing business, reinforcing India's commitment to fostering an investment-friendly climate.
- Free Trade Agreement (FTA) with the UK: As part of ongoing policy reforms, India is working towards finalizing a free trade agreement (FTA) with the UK.
- This strategic endeavour has undergone over 14 rounds of negotiations, with disputes being a major obstacle.
- The proposed FTA is expected to eliminate the requirement for exhausting local remedies, offering a mechanism for swift dispute resolution through international arbitration.
- This pragmatic approach acknowledges the importance of rapid dispute resolution in nurturing international trade relationships.
Conclusion
Achieving a $5 trillion economy hinges on robust international trade and secure investments in India. A forward-looking strategy for BITs is essential to attract and maintain long-term foreign investments, and the government's recent initiative is a positive move. Nevertheless, adopting a more tailored approach, rather than a one-size-fits-all model, is necessary to facilitate rapid yet sustainable growth in cross-border flows.
Contribution of Dr MS Swaminathan Towards Indian Agriculture (Indian Express)
- 09 Feb 2024
Why is it in the News?
Recently, Prime Minister Modi announced that the agriculture scientist M S Swaminathan will be honoured with the Bharat Ratna.
Who was MS Swaminathan?
- Monkomb Sambasivan Swaminathan (MS Swaminathan) was born on August 7, 1925, in Kumbakonam, Madras Presidency (now Tamil Nadu).
- He was an agronomist, agricultural scientist, plant geneticist, administrator, and humanitarian.
- He was known as the ‘father of the Green Revolution’ in India.
- Swaminathan began his career in 1949 researching the genetics of potatoes, wheat, rice, and jute.
- He played a crucial role in developing high-yielding varieties of paddy that helped ensure India’s low-income farmers produced more yield.
- Also known as the ‘father of economic ecology’ by the United Nations Environment Programme, he worked with agriculture ministers including C Subramaniam and Jagjivan Ram during the 1960s and 70s for the success of the ‘Green Revolution’ in India.
- An initiative that paved the way for an exponential rise in the productivity of wheat and rice through the adaptation of chemical-biological technology.
- Career: Swaminathan also held administration positions in various agricultural research laboratories.
- He served as the director general of the Indian Council of Agricultural Research and International Rice Research Institute.
- He also worked as the principal secretary of the Ministry of Agriculture in 1979.
- Later, he also served as the President of the International Union of the Conservation of Nature and Natural Resources.
- In 2004, Swaminathan was appointed as chairman of the National Commission on Farmers.
- Awards and Recognition: He was awarded with the Ramon Magsaysay Award in 1971 and the Albert Einstein World Science Award in 1986.
- He was awarded the first World Food Prize in 1987, following which he set up the MS Swaminathan Research Foundation in Chennai.
- Swaminathan has also been conferred with the Padma Shri, Padma Bhushan, and Padma Vibhushan - the three most prestigious awards.
- Apart from these, he was also given the H K Firodia Award, the Lal Bahadur Shastri National Award, and the Indira Gandhi Prize.
- Swaminathan also contributed to various agricultural and environmental initiatives globally.
- He was named one of the 20 most influential Asians of the 20th century by Time magazine.
- He also served as a Member of Parliament in the Rajya Sabha from 2007 to 2013.
- MS Swaminathan passed away in September 2023 at the age of 98.
- His decision to focus on ensuring India's food security led him to become a key figure in the Green Revolution of the 1960s, which transformed India from a food-deficient nation to one of the world's leading agricultural producers.
- His collaboration with Nobel laureate Norman Borlaug introduced high-yielding varieties of wheat and rice, saving millions from starvation.
- Dr Swaminathan's transformative influence on Indian agriculture began to emerge when he championed the introduction of high-yielding crop varieties.
- His visionary approach was instrumental in pioneering the Green Revolution in India when the country was still grappling with poverty and a lack of social security.
- The impact of Dr. Swaminathan's efforts was nothing short of revolutionary.
- India's food production skyrocketed, and the nation moved from a state of food scarcity to food self-sufficiency.
- His work not only averted potential famines but also elevated the economic conditions of countless farming communities.
How MS Swaminathan Contributed to the Green Revolution?
- MS Swaminathan was greatly influenced by Mahatma Gandhi's teachings of selfless service to the poor and the nation.
- He was very much influenced by the 1943 Bengal famine, which killed up to three million people and realised the need to improve agriculture and food security in India.
- After Swaminathan’s work on rice, he and other scientists worked on doing the same to enhance productivity for the wheat crop.
- India had to get Norin dwarfing genes from Norman Borlaug in Mexico to enhance the productivity and adaptability of its wheat crops.
- These genes, known for their ability to produce shorter wheat plants, were instrumental in the Green Revolution, as they helped increase yield potential and improve resistance to lodging (falling over) in wheat plants.
- By acquiring these genes, India aimed to replicate the success of the Green Revolution and address food security challenges by boosting wheat production.
- Norman Borlaug was an American scientist who was working on developing more productive crop varieties.
- It led to him winning the Nobel Peace Prize in 1970 for his work in developing High Yielding Varieties (HYVs) of wheat.
- Many researchers and scientists were involved in this work but there isn’t any doubt that the basic strategic vision underpinning the Green Revolution in India, introducing a new genetic strain or ‘plant type’ responsive to increased fertiliser and water application came from MS Swaminathan.
- The problem with the traditional wheat and rice varieties was that they were tall and slender.
- These ‘lodged’ – fell flat on the ground — when they grew and their heads were heavy with well-filled grains produced in response to high fertiliser doses.
- Through Swaminathan’s research on rice, a reduction in plant height was sought to make them less lodging-prone but this was not easy to do.
- His strategy of developing semi-dwarf wheat varieties using mutagenesis exposing plants to chemicals or radiation to introduce desirable modifications in their DNA did not, however, work.
- The lowering of plant heights led to a simultaneous reduction in the size of the grain-bearing panicles or earheads.
- The search for an ideal variety led him to contact American scientist Orville Vogel.
- He played a role in developing a ‘dwarf wheat’ called Gaines, which had a high yield.
- It contained dwarfing genes from a dwarf wheat called the Norin-10.
- Vogel agreed but was unsure of the wheat’s potential in the Indian climate and thus advised Swaminathan to approach Norman Borlaug, who had incorporated the same dwarfing genes through Vogel’s lines into his spring wheat varieties in Mexico that were better suited for India.
- Borlaug also later visited India, after Swaminathan proposed so to the Indian Agricultural Research Institute, allowing for the wheat breeding programme to commence.
- In 1963, they began a serious effort to breed dwarf wheat and within five years, this initiative led to what became known as the "Wheat Revolution."
- Indira Gandhi, the then Prime Minister of India, released a special stamp to mark the achievement.
The Side Effects of the Green Revolution:
- Despite its landmark role in achieving food sufficient in India, the Green Revolution has been criticised on multiple counts, such as:
- Benefiting the already prosperous farmers as it was introduced in states with higher productivity.
- Swaminathan recognised such issues as early as January 1968, addressing the Indian Science Congress at Varanasi.
- He highlighted concerns about the rapid spread of a few high-yielding crop varieties replacing diverse local ones, leading to potential problems like soil degradation, desertification, excessive pesticide use, and unsustainable groundwater extraction.
- Unfortunately, many of these concerns have materialised today.
- He also lent his support to farmers as the head of the National Commission on Farmers from 2004-06, he recommended that the Minimum Support Price at which farmers sell their crops to the government should be at least 50 per cent more than the weighted average cost of production.
- For his contributions, Swaminathan was awarded the first World Food Prize Laureate in 1987, for “developing and spearheading the introduction of high-yielding wheat and rice varieties into India during the 1960s when that country faced the prospect of widespread famine.
- Wheat production doubled in just a few years, making the country self-sufficient and saving millions from extreme food deprivation.
Significance of Union Budget's Deep Tech & Research Funding (Indian Express)
- 08 Feb 2024
Why is it in the News?
In her Interim Budget speech, Finance Minister Nirmala Sitharaman announced a Rs 1 lakh crore fund to provide long-term, low-cost or zero-interest loans for research and development.
Context:
- Finance Minister, Nirmala Sitharaman in her Interim Budget speech, announced a Rs 1 lakh crore fund to provide long-term, low-cost, or zero-interest loans for research and development.
- A new scheme to strengthen deep-tech capabilities in the defence sector that is likely to be followed up later was also announced.
- The separate announcements on the fund and defence deep tech are intricately linked and must be seen together with the government’s other plans for the R&D sector.
What is Deep Tech?
- Deep tech refers to advanced and disruptive technologies, many of which are still under development, that have the potential to trigger transformative change and provide solutions for the future.
- The term is used to describe cutting-edge research in nanotechnology, biotechnology, material sciences, quantum technologies, semiconductors, artificial intelligence, data sciences, robotics, 3D printing, etc.
What are the Advantages of Deep Tech?
- These technologies are expected to play a key role in addressing complex global challenges like climate change, hunger, epidemics, energy access, mobility, physical and digital infrastructure, and cyber security including:
- Economic Implications: Advanced capabilities in deep tech are also likely to enhance productivity drive economic growth create jobs in coming years, and offer a competitive advantage to countries with strong foundations in these areas.
- Opportunities for India: With its large base of relatively high-quality science and engineering manpower and a fairly well-established technology culture, India feels it is well-placed to be one of the frontrunners in these areas.
- Potential Benefits: There is scope to contribute to the development of these technologies, which can ensure early adoption, shares in intellectual property, indigenous know-how, and self-reliance.
- Major associated benefits in terms of spin-off technologies, trained manpower, entrepreneurship and technology exports can accrue as well.
Initiatives by the GOI to Build a Deep Tech Ecosystem
- Over the past few years, the government has tried to incentivise research in some of these areas by setting up a National Mission on Transformative Mobility and Battery Storage and, more recently, a National Quantum Mission.
National Mission on Transformative Mobility and Battery Storage:
- This mission is aimed at fostering innovation in the mobility and energy storage sectors.
- The government encourages research and development in electric vehicles, advanced battery technologies, and sustainable mobility solutions through focused platforms and financial incentives.
- It targets challenges related to environmental sustainability and energy efficiency.
National Quantum Mission:
- Recognizing the transformative potential of quantum technologies, the government has initiated the National Quantum Mission.
- This effort concentrates on promoting research and development in quantum computing, communication, and sensing.
- Quantum technologies hold promise for revolutionizing various industries, and the mission aims to position India as a leader in global quantum advancements.
National Deep Tech Startup Policy (NDTSP):
- In addition to mission-oriented strategies, the government has devised a policy framework to create a conducive environment for deep tech companies.
- The NDTSP addresses specific challenges faced by technology startups and aims to nurture a thriving ecosystem for their growth.
- Currently awaiting government approval, it embodies a comprehensive approach to cultivating a vibrant deep-tech startup ecosystem in India.
- Objectives and Key Components of NDTSP: The NDTSP is designed to achieve several objectives, including:
- Competitiveness: Fostering innovation to enable startups to compete globally.
- Collaboration: Facilitating partnerships between startups and international counterparts.
- Incentives: Providing appropriate incentives for companies investing in innovation and research.
The policy outlines key components to achieve its goals, such as:
- Funding Opportunities: Creating avenues for long-term funding to support sustained innovation.
- Intellectual Property Rights: Establishing a simplified yet robust intellectual property rights regime.
- Tax Incentives: Offering tax incentives to encourage investment in deep tech startups.
- Regulatory Framework: Developing a conducive regulatory environment to streamline operations.
- Standards and Certifications: Establishing standards and certifications to ensure quality and reliability.
- Talent Nurturing: Focusing on nurturing talent through skill development and educational initiatives.
- Industry-Academia Collaboration: Facilitating linkages between industry, research centres, and educational institutions to promote knowledge exchange.
The Challenge of Funding in Deep Tech Research:
- Challenges in Research Funding Landscape: There's a persistent concern within the scientific community regarding the need for more research funding.
- India's investment in research lags behind the global average, particularly in comparison to scientifically advanced nations that serve as direct competitors.
- Disparity Between Targets and Actual Spending: For more than two decades, the Indian government has set a target of allocating at least 2% of the GDP for research and development.
- Despite an increase in absolute spending, the proportion of GDP dedicated to research has dwindled in recent years.
- Currently, India allocates a mere 0.65% of its national GDP to research and development activities, significantly below the global average of approximately 1.8%.
Government's Initiatives to Address the Funding Challenges:
- Harnessing Public-Private Collaboration: Recent governmental directives reflect a recognition that significant boosts in research and development expenditure may only be attainable through effective partnerships with the private sector.
- Initiatives are underway to forge synergies among industry, research laboratories, and educational institutions, aimed at bolstering both research activities and the financial resources available to support them.
- Introduction of the National Research Foundation (NRF): The establishment of the National Research Foundation (NRF), operational in recent times, stands as a key component of this strategy.
- With an objective to tackle the funding hurdle, the NRF is set to procure approximately 70% of its Rs 50,000 crore allocation over the next five years from the private industry.
- This collaborative model is envisioned to cultivate a more sustainable and resilient ecosystem for deep tech research and development in India.
The 1 Lakh Crore Fund: Anticipations, Enthusiasm, and Doubts:
- Anticipations: The provision of a Rs 1 lakh crore fund for financing research and development is deemed crucial in fortifying the research landscape.
- This fund holds particular promise for startups and private sector ventures in need of initial funding to kickstart their projects.
- Anticipations are high that these initiatives will gain momentum with the injection of funds.
- Enthusiasm and Doubts: While the government expresses optimism regarding the potential impact of this substantial fund, there exists scepticism within the scientific community.
- Past expectations of significant private sector contributions to research have not materialized, leading to uncertainties and reservations among researchers.
- Scientists argue that there's an imbalance in expectations, with excessive reliance on the private sector without a corresponding increase in government funding.
- The unpredictability and inadequacy of private-sector financing present significant challenges.
- Currently, the government appears to heavily rely on the success of its new funding initiatives for research.
- However, the budgetary allocations for science and research departments in the Interim Budget show only nominal increases.
Conclusion
- The recent initiative promises startups and other private sector ventures access to seed funding, offering potential benefits for their projects, yet, to boost R&D expenditure, fostering deeper partnerships with the private sector is essential. Initiatives are underway to enhance collaboration among industry, research laboratories, and educational institutions, aiming to diversify research activities and amplify available funding.
Union's Control of Financial Flows to State Governments (Indian Express)
- 07 Feb 2024
Why is it in the News
The Union government’s moves, which reduce the aggregate financial transfers to States, are weakening cooperative federalism.
Background:
- The fiscal dynamics between the Union government and the states in India have experienced notable shifts since the tenure of the 14th Finance Commission (FC) award period (2015-16).
- Official data indicates a trend of diminishing financial transfers from the Union government to the states.
- Thus, it becomes imperative to analyze the nuances of these financial transfers, delving into the deviations from the recommendations of FCs, their repercussions on states, and the potential ramifications for federal fiscal policies.
An Evaluation of Deviation from Finance Commission Recommendations:
- Recommendation of Substantial Shift in Devolution by 14th FC: Recognising the imperative of empowering the States, the 14th FC recommended a significant increase in the devolution of Union tax revenues.
- Specifically, the recommendation was to devolve 42% of Union tax revenues to the States, marking a substantial 10 percentage points increase from the preceding 13th FC's suggestion.
- This ambitious shift was intended to enhance the financial autonomy of the States, aligning with the principles of cooperative federalism.
- Deviation from FC Recommendations by the Union Government: Instead of adhering to the recommended increase, there has been a consistent reduction in financial transfers to the States.
- This deviation is particularly perplexing given that the 15th FC retained the recommendation of 41%.
- It excluded the devolution to Jammu and Kashmir (J&K) and Ladakh, which were reorganized as Union Territories.
- If the shares of J&K and Ladakh are included, the recommended devolution should stand at 42%.
- The Dynamics of Financial Transfers of Tax Revenue: The analysis of tax revenue provides a critical understanding of dynamics of financial transfers between the Union government and the States.
- The Finance Commissions recommend the States' share based on the net tax revenue of the Union government.
- It is derived after accounting for various factors such as collection costs, revenue assigned to Union territories, and the impact of cess and surcharge.
Analysis of Tax Revenue Disparities:
- Contrasting Trends in States' Share: A Departure from FC Guidelines: The Fourteenth and Fifteenth Finance Commissions recommended states' shares of 42% and 41%, respectively, of the net tax revenue.
- However, the actual share of gross tax revenue stood at only 35% in 2015-16, dwindling further to 30% in the 2023-24 Budget Estimate.
- This discrepancy assumes significance, particularly against the backdrop of a significant surge in the Union government's gross tax revenue, soaring from ?14.6 lakh crore in 2015-16 to ?33.6 lakh crore in 2023-24.
- Disparities in Revenue Growth: The more than two-fold increase in the Union government's gross tax revenue over this period starkly contrasts with the doubling of states' share in Union tax revenue.
- This discrepancy raises concerns regarding equitable resource distribution.
- Essentially, the widening gap between the Union government's revenue generation and states' share indicates a disproportionate augmentation in the former's fiscal capacity.
- Declining Grants-in-Aid: The disparity becomes more evident when analyzing grants-in-aid to states, another statutory grant recommended by the Finance Commission.
- The absolute amount of grants-in-aid declined from ?1.95 lakh crore in 2015-16 to ?1.65 lakh crore in 2023-24.
- Consequently, the collective share of statutory financial transfers in the Union government's gross tax revenue witnessed a notable decline, plummeting from 48.2% to 35.32%.
Potential Factors Contributing to Decreasing States’ Share:
- Calculation Methodology: One of the primary factors behind the dwindling share of states in gross revenue lies in the calculation method.
- The net tax revenue, used to determine states' share, excludes revenue collections under cess and surcharge, revenue from Union Territories, and tax administration expenditure.
- Role of Cess and Surcharge: In 2015-16, revenue collection through cess and surcharge accounted for 5.9% (?85,638 crore) of gross tax revenue, increasing to 10.8% (?3.63 lakh crore) by 2023-24.
- This notable surge underscores the Union government's strategic utilization of cess and surcharge to channel funds for specific sectoral schemes, enhancing its financial autonomy.
- Exclusion of States from Cess and Surcharge Revenues: The revenues generated through these additional levies are not shared with states, highlighting a more centralized control over financial resources by the Union government.
- This selective exclusion limits resources available for devolution to states, potentially impacting their financial autonomy.
Centralization of Public Expenditure and Its Implications:
- Union Government’s Routes of Financial Transfer: Apart from traditional financial transfers like tax devolution and grants-in-aid, the Union government employs Centrally Sponsored Schemes (CSS) and Central Sector Schemes (CSec Schemes) for direct financial transfers to states.
- Influencing State Priorities Through CSS: Under CSS, the Union government proposes schemes and provides partial funding, compelling states to align their priorities with those proposed by the Union government.
- The allocation for CSS has substantially increased from ?2.04 lakh crore to ?4.76 lakh crore between 2015-16 and 2023-24, although actual financial transfers to states under CSS remain lower than allocated funds.
- CSec Schemes and Exclusive Control: Fully funded by the Union government, CSec Schemes operate in sectors where the Union government holds exclusive legislative or institutional controls.
- The significant increase in allocation for CSec Schemes from ?5.21 lakh crore to ?14.68 lakh crore between 2015-16 and 2023-24 underscores the Union government's preference for such schemes.
- Potential Bias in Resource Allocation: The decentralized implementation of CSec Schemes grants the Union government considerable latitude in allocating financial resources, raising concerns about potential bias in resource distribution.
- Challenges for Cooperative Federalism: The downward revision of states' share in Union tax revenue from 42% to 41%, despite recommendations by the 15th Finance Commission, poses challenges to cooperative federalism.
- Future discussions before the 16th Finance Commission might continue to address such challenges, potentially impacting collaborative federalism.
Conclusion
The evolving financial landscape between the Union government and states in India underscores the imperative for a comprehensive review of the fiscal architecture. Deviations from Finance Commission recommendations, increasing reliance on non-statutory transfers, and potential biases in resource allocation challenge the principles of cooperative federalism. Addressing these issues is essential to ensure equitable distribution of resources and foster collaborative governance between the Union and states, thus reinforcing the foundation of cooperative federalism for inclusive and sustainable development across the nation.
Public Examinations (Prevention of Unfair Means) Bill, 2024 (Indian Express)
- 06 Feb 2024
Why is it in the News
The Public Examinations (Prevention of Unfair Means) Bill, 2024, was introduced in Lok Sabha on 5th Feb which aims to prevent “unfair means” in order to “bring greater transparency, fairness and credibility to the public examinations system”.
Context:
- The Centre recently tabled the draft of the Public Examinations (Prevention of Unfair Means) Bill, 2024 in Parliament.
- This legislative proposal aims to prevent unfair means in public examinations and common entrance tests held across the country.
- In a bid to tighten the noose on public examinations, the proposed law provides for punishment, including imprisonment, in instances of malpractice in these tests.
- The Bill serves as a model draft for states to adopt at their discretion, aiding them in preventing criminal elements from disrupting the conduct of their state-level public examinations.
- At present, there is no specific substantive law to deal with unfair means adopted or offenses committed by various entities involved in the conduct of public examinations by the Central Government and its agencies.
- Therefore, it is imperative that elements that exploit vulnerabilities of the examination system are identified and effectively dealt with by a comprehensive Central legislation.
Which Exams are “Public Examinations” as Defined in the Bill?
- Under Section 2(k) of the Bill, a “public examination” is defined as any examination conducted by a “public examination authority” listed in the Schedule of the Bill, or any “such other authority as may be notified by the Central Government”.
- The schedule lists five public examination authorities:
- (i) the Union Public Service Commission (UPSC), which conducts the Civil Services Examination, Combined Defence Services Examinations, Combined Medical Services Examination, Engineering Services Examination, etc.;
- (ii) the Staff Selection Commission (SSC), which recruits for Group C (non-technical) and Group B (non-gazetted) jobs in the central government;
- (iii) the Railway Recruitment Boards (RRBs), which recruit Groups C and D staff in the Indian Railways;
- (iv) the Institute of Banking Personnel Selection (IBPS), which hires at all levels for nationalized banks and regional rural banks (RRBs); and
- (v) National Testing Agency (NTA), which conducts the JEE (Main), NEET-UG, UGC-NET, the Common University Entrance Test (CUET), etc.
- Apart from these designated public examination authorities, all “Ministries or Departments of the Central Government and their attached and subordinate offices for recruitment of staff” will also come under the purview of the new law.
- The central government can add new authorities in the schedule through a notification as and when required.
What is Meant by the Use of “Unfair Means” in an Examination?
- Section 3 of the Bill lists at least 15 actions that amount to using unfair means in public examinations “for monetary or wrongful gain”.
- These acts include:
- Leakage of question paper or answer key or part thereof and colluding in such leakage;
- Accessing or taking possession of question paper or an Optical Mark Recognition response sheet without authority”;
- Tampering with answer sheets including Optical Mark Recognition response sheets.
- Providing solution to one or more questions by any unauthorized person during a public examination, and
- Directly or indirectly assisting the candidate” in a public examination.
- The section also lists:
- Tampering with any document necessary for short-listing of candidates or finalizing the merit or rank of a candidate.
- Tampering with the computer network or a computer resource or a computer system.
- Creation of a fake website” and “conduct of fake examination, issuance of fake admit cards or offer letters to cheat or for monetary gain” as illegal acts.
What Punishment does the Proposed Law Provide for Violations?
- Section 9 of the Bill states that all offenses shall be cognizable, non-bailable, and non-compoundable — which means that an arrest can be made without a warrant and bail will not be a matter of right; rather, a magistrate will determine whether the accused is fit to be released on bail.
- A non-compoundable offense is one in which the case cannot be withdrawn by the complainant even when the complainant and the accused have reached a compromise, and a trial must necessarily follow.
- Punishment for “any person or persons resorting to unfair means and offenses” can be three to five years in prison, and a fine up to Rs 10 lakh.
- If the convict fails to pay the fine, “an additional punishment of imprisonment shall be imposed, as per the provisions of the Bharatiya Nyaya Sanhita, 2023,” Section 10(1) of the Bill says.
- Under Section 10(2), a service provider who is engaged to provide “support of any computer resource or any material, by whatever name it may be called” for the conduct of the examination can be fined up to Rs 1 crore, along with other penalties.
- The Bill provides for harsher punishment in cases of organized paper leaks, where “organized crime” is defined as unlawful activity by a group of persons colluding in a conspiracy “to pursue or promote a shared interest for wrongful gain in respect of a public examination”.
- Section 11(1) says the punishment for organized crime will be “imprisonment for a term not less than five years but which may extend to ten years” and a fine “which shall not be less than one crore rupees”.
Why has the Government Brought this Bill?
- In recent years, there has been a significant rise in cases of question paper leaks during recruitment exams nationwide.
- An investigation uncovered at least 48 instances of paper leaks across 16 states over the past five years, disrupting the hiring process for government jobs and affecting approximately 1.51 crore applicants for about 1.2 lakh posts.
- The Statement of Objects and Reasons of the Bill highlights that malpractices in public examinations lead to delays and cancellations, adversely affecting millions of youth.
- Currently, there is no specific substantive law addressing unfair means or offenses committed during these examinations.
- It is crucial to identify and effectively deal with elements exploiting vulnerabilities in the examination system through comprehensive Central legislation.
- The primary objective of the Bill is to enhance transparency, fairness, and credibility in public examination systems, ensuring that sincere efforts of youth are duly rewarded and their future is secure.
- It aims to deter individuals, organized groups, or institutions from engaging in unfair practices that undermine the integrity of public examinations for monetary or wrongful gains.
- The Bill explicitly states that candidates, as defined within its scope, will not be subject to its provisions and will continue to be governed by existing administrative provisions of the relevant public examination authority.
- Once enacted, the Bill will also serve as a model draft for states to adopt at their discretion.
- This provision is expected to assist states in preventing criminal elements from disrupting the conduct of their state-level public examinations.
How to restore WTO’s authority (Indian Express)
- 05 Feb 2024
Why is it in the News
Since the end of 2019, WTO’s crown jewel, the appellate body (AB) stands crippled because the US has single-handedly blocked the appointment of new members.
Context:
- The 13th ministerial meeting of the World Trade Organization (WTO) is scheduled in Abu Dhabi, presenting a chance to tackle the persistent crisis in the Dispute Settlement Mechanism (DSM).
- The effectiveness of WTO's key component, the DSM, has diminished since late 2019, mainly due to the United States obstructing the appointment of new Appellate Body (AB) members.
- Despite the implications of this crisis, there exist specific options for developing countries that could offer potential solutions to rejuvenate the DSM.
What is the World Trade Organization (WTO)?
- The WTO is an international institution responsible for overseeing global trade rules among nations.
- With 164 member countries (including Liberia and Afghanistan, the most recent additions in 2016) and 25 observer countries and governments, it officially commenced operations on January 1, 1995, replacing the 1948 General Agreement on Tariffs and Trade (GATT) in accordance with the 1994 Marrakesh Agreement.
Organizational Structure:
- The highest authority within the WTO is the Ministerial Conference, comprising all member states, typically meeting biennially with a consensus-driven decision-making approach.
- Daily operations are managed by three bodies, sharing the same membership:
- General Council:
- Functions as the primary decision-making body.
- Convenes as the Dispute Settlement Body (DSB) when addressing disputes between WTO members.
- Dispute Settlement Body (DSB):
- Empowered to establish dispute settlement panels.
- Refers matters to arbitration.
- Adopts reports from panels, Appellate Body, and arbitration.
- Monitors the implementation of recommendations and rulings, authorizing concession suspension in cases of non-compliance.
- Exclusive authority to make decisions, while panels and the Appellate Body can only offer recommendations.
- Trade Policy Review Body:
- Operates with terms of reference distinct from the General Council and DSB.
- Assesses the trade policies of member countries through periodic reviews.
- This structure ensures effective governance and dispute resolution within the WTO framework, emphasizing consensus in decision-making processes.
The Importance of the Appellate Body (AB):
- Enforceable Decision-Making:nThe Appellate Body (AB) holds the authority to review and, if necessary, overturn legal findings and interpretations by WTO panels.
- This enforceable nature ensures a conclusive resolution to trade disputes, fostering stability and predictability in international trade relations.
- Mandatory Jurisdiction: The AB's jurisdiction spans all WTO member countries, creating a mandatory framework for resolving disputes.
- Member nations are obligated to participate in the AB process, reinforcing the foundation of a rules-based international trading system.
- Advocacy for Equitable Practices: By addressing disputes and upholding compliance with WTO rules, the AB contributes to the promotion of fair and equitable trade practices.
- This approach establishes a level playing field for both developed and developing nations, supporting inclusivity and sustainable economic growth.
Challenges in the Dispute Settlement Mechanism (DSM):
- Appellate Body's Paralysis: Since late 2019, the AB, integral to the DSM, has been practically non-functional due to the blockage of new member appointments, primarily led by the United States dissatisfied with previous dispute outcomes.
- This obstruction erodes the binding nature of the dispute resolution process, creating a legal void.
- Evasion of Compliance: With the AB inoperable, countries have found a loophole to evade compliance with WTO panel rulings.
- Nations can appeal into the void, rendering the DSM ineffective and contradicting its purpose of providing a binding and enforceable resolution to trade disputes.
- Prolonged Dispute Resolution: The absence of a functioning AB leads to delays in resolving trade disputes.
- Without a binding appellate process, disputes may linger, contributing to economic uncertainties and potential retaliatory actions among trading partners.
- Undermining Rules-Based Trade: The DSM crisis jeopardizes the concept of a rules-based international trading system.
- The inability to enforce agreed-upon rules diminishes predictability and stability crucial for global economic growth through trade.
Potential Measures for Developing Countries to Sustain a Functional Two-Tiered DSM:
- Participation in the European Union-led MPIA: Developing countries can explore joining the European Union-led multi-party Interim Appeal Arbitration Arrangement (MPIA) as an initial option.
- This arrangement formalizes the arbitration mechanism already available under the WTO, providing appellate review for panel reports.
- However, the MPIA's voluntary nature poses challenges, leading to ad hoc tribunals and limited adoption of awards by all WTO members.
- Creation of a Restricted AB with Limited Powers: Considering the opposition to the AB by the United States, an alternative is formulating a diluted AB with constrained powers.
- Limiting the AB's authority in various ways, such as deference to parties in dispute and non-persuasive value of rulings, may be explored.
- However, a diluted AB could contradict the intended role of the DSM in providing security and predictability to the multilateral trading regime.
- Resurrecting the AB with an Opt-Out Provision: Scholars Robert Howse and Wenhua Ji propose resurrecting the AB with a critical modification—allowing countries to opt out of compulsory AB jurisdiction.
- Countries opting out would be excluded from participating in the appellate process, settling disputes solely through a single-tier panel jurisdiction.
- Critics express reservations about altering the intrinsic nature of a two-tier binding DSM but acknowledge the need to safeguard the AB's integrity.
Conclusion
In addressing the WTO DSM crisis, developing countries, including India, confront a complex decision-making process.
While restoring the AB to its original form is ideal, the suggested resurrection with an opt-out provision offers a pragmatic compromise, recognizing challenges while preserving the AB's legitimacy.
As WTO member countries gather in Abu Dhabi, the way forward requires thoughtful consideration of trade-offs to balance DSM effectiveness with accommodating diverse interests in the global trade landscape.
Major Takeaways From Interim Budget (2024-25) (The Hindu)
- 02 Feb 2024
Why is it in the News?
Finance Minister Nirmala Sitharaman presented her sixth Union Budget for the next financial year (2024-25), which differed from previous budgets as it was an interim budget.
What is the Interim Budget?
- The Interim Budget serves as a transitional financial plan presented by the incumbent government in an election year, bridging the period between the dissolution of the Parliament and the formation of a new government.
- This budgetary measure is necessitated by constitutional requirements outlined in Article 112 of the Indian Constitution, which mandates the submission of an annual financial statement to both Houses of Parliament.
- This statement outlines the anticipated receipts and expenditures of the Government of India for the upcoming fiscal year and requires approval from both Houses.
- However, in an election year, the prospect of a change in government following the polls prevents the presentation of a full-fledged budget by the incumbent administration.
- Consequently, the need arises for an interim budget to address the financial requirements during the transitional period.
- While there is no specific constitutional provision for an interim budget, the government seeks approval from the Lower House for the funds necessary for the transition period (April - July) through the votes on account provision.
Features and Components of Interim Budget:
- During the presentation of an interim budget, the Finance Minister provides an overview of the current state of the Indian economy, including its fiscal status and revised estimated growth for the upcoming year.
- This presentation encompasses details of both planned and non-planned government expenditures and revenues.
- While the government refrains from introducing major schemes that could sway voters or presenting an Economic Survey, it retains the authority to revise tax rates within the framework of the interim budget.
- Similar to the Union budget, the interim budget is presented to both Houses of Parliament on February 1 by the Finance Minister, subjected to debate and voting in the Lok Sabha, and subsequently forwarded for Presidential approval.
- Despite its interim nature, the interim budget remains valid for the entire fiscal year, serving as a crucial transitional arrangement until the presentation of a full-fledged budget by the new government.
What is Vote on Account?
- Article 116 of the Constitution empowers the Lower House to authorize advance grants for estimated expenditures during a portion of a financial year through legislative approval.
- This mechanism, known as a vote on account, facilitates the continuity of government operations during transitional periods.
- A typical vote on account encompasses the allocation of funds for essential expenses such as salaries, ongoing projects, and other necessary expenditures of the Central government.
- Notably, it does not entail modifications to tax rates.
- Additionally, a standard vote on account remains effective for a period of two months, with the possibility of extension for up to four months as required.
Major Takeaways from the Interim Budget (2024-25) - Part I:
- No Change in Taxation: The Interim Budget maintains existing tax rates without proposing any changes to direct or indirect taxes, including import duties.
- Withdrawal of Outstanding Direct Tax Demands: A significant initiative in the Interim Budget is the proposal to withdraw outstanding direct tax demands, benefiting taxpayers with demands up to Rs. 25,000 for the period up to the financial year 2009-10, and up to Rs. 10,000 for financial years 2010-11 to 2014-15.
- This measure is expected to benefit approximately one crore taxpayers.
- Tripled Direct Tax Collections: Over the past decade, direct tax collections have more than tripled, accompanied by a substantial increase in the number of return filers.
- The new tax regime ensures no tax liability for taxpayers with income up to Rs. 7 lakh.
- Additionally, corporate tax rates for existing domestic companies have been reduced from 30% to 22%, and for certain new manufacturing companies to 15%.
- Improvements in Taxpayer Services: The government's focus on enhancing taxpayer services has led to a transformation in the assessment system and simplified tax return filing processes.
- The average processing time for returns has been significantly reduced from 93 days to just 10 days.
- GST Compliance Relief: The implementation of GST has streamlined compliance for trade and industry, resulting in a reduction in logistics costs and taxes, and ultimately lowering prices for consumers.
- The GST base has doubled, with monthly gross GST collections nearly doubling to Rs. 1.66 lakh crore.
- Customs Facilitation Measures: Several steps have been taken in customs to facilitate international trade, including a substantial decrease in import release times at Inland Container Depots, air cargo complexes, and seaports over the last four years.
- White Paper Announcement: The government will release a white paper to provide insights into the period until 2014, aiming to draw lessons from past challenges and policy decisions.
Interim Budget (2024-25)- Part II:
- Increased Capital Expenditure: The Interim Budget allocates an 11.1% increase in capital expenditure for the upcoming year, amounting to Rs. 11,11,111 crore, representing 3.4% of the GDP.
- This investment aims to build on previous capital expenditure growth and stimulate economic growth and employment.
- Projected Real GDP Growth: India's Real GDP is projected to grow at 7.3% in FY 2023-24, reflecting the economy's resilience and healthy macroeconomic fundamentals despite global challenges.
- International agencies forecast India's continued growth between 6.1% and 6.7% in 2024-25.
- Robust GST Collection and Revenue Outlook: Strong economic activity has bolstered revenue collections, with gross GST revenues surpassing the Rs. 1.6 lakh crore mark for the seventh time.
- Total receipts, excluding borrowings, are estimated at Rs. 30.80 lakh crore, reflecting strong growth momentum and formalization in the economy.
- Support for State Governments: The Interim Budget extends support to state governments through schemes such as interest-free loans for capital expenditure and provisions for milestone-linked reforms.
- Fiscal Consolidation and FDI Inflow: Efforts towards fiscal consolidation aim to reduce the fiscal deficit to below 4.5% by 2025-26, with market borrowings estimated to be lower than the previous fiscal year.
Additionally, the government highlights a significant increase in FDI inflows over the past decade.
- Developmental Achievements: The Interim Budget underscores various developmental initiatives, including poverty alleviation programs, support for entrepreneurs through schemes like PM Mudra Yojana, housing initiatives, and promotion of startups through financial assistance.
- Infrastructure Development in Railways and Aviation: The budget outlines plans for major economic railway corridor programs and enhancements in aviation infrastructure, reflecting the government's commitment to improving transportation and connectivity.
- Committee on Population Growth Challenges: A high-powered committee will be formed to address challenges arising from rapid population growth and demographic changes, aligning with the goal of 'Viksit Bharat' (Developed India).
What are Other Announcements and Strategies in the Budget?
- During the presentation of the Interim Budget, Union Finance Minister Smt. Nirmala Sitharaman unveiled plans to increase the capital expenditure outlay for the next year by 11.1 percent to approximately Rs. 11 lakh crore, constituting 3.4 percent of the GDP.
- The Interim Budget introduces a range of announcements and strategies, signaling the trajectory and developmental approach aimed at realizing the vision of a 'Viksit Bharat' (Developed India) by 2047.
- In a series of announcements, Smt. Nirmala Sitharaman underscored the government's commitment to empowering the eastern region and its populace, positioning it as a significant catalyst for India's overall economic growth which includes:
- Boost in the Technology Sector: A corpus of Rs 1 lakh crore will be established through a fifty-year interest-free loan to facilitate long-term financing or refinancing for research and innovation in emerging technology domains.
- This initiative aims to incentivize the private sector to significantly enhance research and innovation efforts.
- Railway Infrastructure Development: The budget outlines plans for three major economic railway corridor programs focusing on energy, mineral, and cement corridors, port connectivity corridors, and high-traffic density corridors.
- Additionally, the conversion of forty thousand normal rail bogies to Vande Bharat standards will enhance safety, convenience, and passenger comfort.
- Aviation Sector Expansion: With the number of airports doubling to 149, and five hundred and seventeen new routes serving 1.3 crore passengers, the aviation sector demonstrates significant growth.
- Indian carriers have proactively placed orders for over 1000 new aircraft, indicating a robust expansion in the aviation industry.
- MGNREGA Allocation: A substantial increase in allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme is proposed in the Interim Budget for 2024-25, with Rs. 86,000 crore allocated compared to Rs. 60,000 crore in the previous fiscal year.
- Subsidy Rationalization: The interim budget aims to reduce the subsidy bill on essential commodities like food, fertilizer, and fuel, with the projected subsidy falling to a five-year low of approximately Rs. 3.8 lakh crore in 2024-25.
- Notably, the fertilizer subsidy is being reduced with expectations of improvements in the global situation and increased domestic production.
- Demographic Challenges Addressed: Recognizing the challenges posed by rapid population growth and demographic changes, the government announces the formation of a high-powered committee.
- Tasked with comprehensive consideration and recommendations, this committee aligns with the goal of 'Viksit Bharat' (Developed India) by addressing demographic challenges effectively.
Conclusion
The Interim Budget serves as a transitional financial plan presented by the government during an election year, addressing various sectors such as railways, tourism, healthcare, technology, aviation, green energy, aquaculture, and housing. However, it is important to note that the incoming government will present its comprehensive budget after the newly elected Lok Sabha, delineating the government's financial strategy for the entire fiscal year.
Navigating the Risks and Benefits Associated with Internationalisation of Government Bonds (The Hindu)
- 03 Feb 2024
Why is it in the News?
There is a serious underestimation of the risks involved in the internationalisation of bond markets and currencies of emerging economies.
Context:
- In recent times, there have been noticeable changes in the global financial landscape, specifically regarding the inclusion of government bonds from emerging economies in global indices.
- It is crucial to evaluate the actions taken by J.P. Morgan, Bloomberg, and FTSE Russell in incorporating Indian local currency government bonds (LCGBs) into global indices amidst these developments.
- Exploring the reasons behind these moves and understanding the potential advantages and risks associated with such initiatives is essential.
J.P. Morgan's Influence on India's Financial Landscape:
- The inclusion of Indian local currency government bonds (LCGBs) in J.P. Morgan's Government Bond Index-Emerging Markets (GBI-EM) Global index suite in September 2023 marked a significant milestone.
- This step not only underscored India's financial stature but also raised expectations within the Indian financial sector.
- It spurred interest from other major index providers such as Bloomberg-Barclays and FTSE Russell.
- Subsequently, Bloomberg Index Services announced in January 2024 that India's fully accessible route (FAR) bonds would be incorporated into the Bloomberg Emerging Market Local Currency Index, further bolstering this trend.
- All eyes are now on FTSE Russell, highlighting the increasing influence and anticipation of reforms in India's government bond market.
What is the Process of Opening Local Bond Markets?
- Opening local bond markets to foreign investors is a strategic move by emerging economies to bolster their global financial integration.
- In India, this journey began in 2019 and gained momentum by 2020 with the introduction of the fully accessible route (FAR).
- Despite facing challenges like delays due to government policies on capital gains taxes and local settlement, the core policy remained unchanged, showcasing a dedication to promoting global financial inclusivity.
Advantages of Internationalising Bond Markets:
- Reduced Reliance on Domestic Institutions: By integrating local currency government bonds into global indices, emerging economies like India aim to lessen their dependence on domestic financial institutions.
- This diversified funding base can contribute to financial stability.
- Stability in Funds Tracking Indices: Inclusion in global indices can result in a more stable inflow of funds, as funds tracking indices typically have a longer investment horizon compared to short-term speculative flows.
- This stability can help mitigate volatility in local financial markets, providing a secure environment for both domestic and foreign investors.
- Lower Cost of Public Borrowing: Increased demand for local currency government bonds from global investors may lead to a decrease in domestic interest rates.
- As a result, the cost of public borrowing for the government can decline.
- Relief for Local Financial Institutions: Higher participation by foreign investors in local bond markets can alleviate the balance sheets of local financial institutions holding these bonds.
- This increased liquidity may encourage more lending and private investment.
- Mitigation of "Original Sin": Bond market internationalization helps mitigate the "original sin" problem faced by emerging economies, where they are unable to borrow internationally in their currencies.
- By issuing bonds in their currencies, these countries shift the exchange rate risk onto international lenders, potentially avoiding widespread private insolvencies during sharp currency declines.
Risks Involved with Internationalising Bond Markets:
- Loss of Control and Heightened Interest Rate Risks: Internationalizing bond markets poses the risk of losing control over long-term interest rates, leaving emerging economies more vulnerable to global interest rate fluctuations.
- This can negatively impact domestic bond markets and overall economic stability.
- Exchange Rate Volatility and Spillover Effects: Increased participation by foreign investors exposes local currency bond markets to exchange rate volatility.
- During periods of global risk aversion or liquidity challenges, adverse spillover effects can occur, as seen in events like the Lehman collapse in 2008 and recent shifts in U.S. monetary policy.
- Volatility in Inflows of Local Currency Bonds: Instances such as the rapid exit of investors from local currency assets in Malaysia during 2014-15 and the total withdrawal of foreigners from the bond market in Türkiye since Spring 2018 underscore the unpredictability of capital flows.
- These sudden stops and exits can lead to large reserve losses and currency declines, highlighting the potential for rapid market fluctuations.
Efforts by the Inter-Departmental Group (IDG) and RBI to Integrate Government Bonds into Global Indices:
- Indian LCGBs Integration into Global Indices: The RBI's journey towards internationalization commenced in October 2022 with an Inter-Departmental Group (IDG) report outlining efforts to integrate Indian local currency government bonds (LCGBs) into global indices.
- Diversification of Funding Channels: The inclusion of Indian LCGBs in global indices aims not only to attract foreign capital but also to diversify funding sources, reducing reliance on domestic institutions and tapping into large international resources.
- Stability Enhancement and Investment Allocation: The IDG report highlights the potential benefits of LCGB inclusion in global indices, such as enhancing the stability of funds tracking these indices.
- This stability can foster a more predictable investment environment, attracting long-term investors and improving investment allocation within the Indian financial market.
- Rupee Internationalization Beyond Bonds: Integrating LCGBs into global indices is just one aspect of a broader effort to internationalize the Indian rupee, as outlined in the IDG report.
- Another crucial component involves allowing banking services in the rupee (INR) outside the country.
Moving Forward:
- Striking a Delicate Balance: While the opening of local bond markets presents abundant opportunities, it necessitates careful balancing.
- Countries must balance the attraction of foreign capital with the management of potential risks.
- Drawing from Past Experiences: The experiences of Malaysia and Türkiye offer valuable lessons, emphasizing proactive management of offshore markets to prevent excessive speculation and maintain currency stability.
- These lessons underscore the importance of regulatory vigilance, timely interventions, and a balanced approach to fostering internationalization while preserving macroeconomic stability.
Conclusion
The process of opening local bond markets marks a crucial stride for emerging economies aiming for deeper integration into the global financial realm.
Recent developments involving J.P. Morgan, Bloomberg, and FTSE Russell underscore the growing recognition of India's financial market potential.
As India embarks on this journey, it must adeptly navigate complexities, carefully weigh risks and benefits, and adapt to the evolving global financial landscape for enduring success and stability.
The Evolution and Powers of the Deputy Chief Minister (Indian Express)
- 01 Feb 2024
Why is it in the News?
Currently, there are 26 deputy CMs across 14 states. The post, not mentioned in the Constitution, is nevertheless a long-standing feature of Indian politics.
Context:
- The tradition of appointing a deputy CM in Indian politics is a well-established practice, typically arising from political negotiations, especially in coalition governments or situations where a single leader lacks undisputed authority within the ruling party or support across key interest groups in the state.
- This trend is gaining prominence, evident in the four out of five states that underwent elections in November—Madhya Pradesh, Rajasthan, Telangana, and Chhattisgarh—all currently having deputy CMs.
- With the exception of Tamil Nadu and Kerala, most major states also feature the position of deputy CM.
What is the Post of Deputy CM?
- Article 163(1) of the Constitution says “There shall be a Council of Ministers with the Chief Minister at the head to aid and advise the Governor in the exercise of his functions”.
- Neither Article 163 nor Article 164 mentions the post of Deputy Chief Minister.
- The post of Deputy CM is understood as being equivalent in rank to that of Cabinet Minister (in the state).
- The Deputy CM enjoys the same pay and perks as a Cabinet Minister.
Across Various States:
- At least 13 other states in the country apart from Bihar currently have Deputy CMs.
- The other states include:
- Maharashtra, Haryana, UP, Karnataka, Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana, Himachal Pradesh, Meghalaya, Nagaland, Arunachal Pradesh and Andhra Pradesh
- The highest of these is in Andhra Pradesh, with Chief Minister Y S Jagan Mohan Reddy having five Deputy CMs.
A Brief History of the Deputy CM Post:
- Perhaps the first Deputy CM in India was Anugrah Narayan Sinha, who was the most important leader of the Congress in Bihar after the first Chief Minister of the state, Dr Srikrishna Singh (Sinha).
- Deputy CMs were seen in more states, especially after the reduction of Congress’s near-total dominance in national politics after 1967.
- Bihar: Anugrah Narayan Sinha remained Deputy CM until his death in 1957.
- Karpoori Thakur became the second Deputy CM of Bihar in 1967, in the state’s first non-Congress government led by Mahamaya Prasad Sinha.
- Uttar Pradesh: Ram Prakash Gupta of the Bharatiya Jana Sangh (BJS) became Deputy Chief Minister in the Samyukta Vidhayak Dal (SVD) government that came to power in 1967 with Chaudhary Charan Singh as Chief Minister.
- This experiment was repeated in the next government under Chief Minister Chandra Bhanu Gupta of the Congress — when Kamalapati Tripathi was sworn in as Deputy CM in February 1969.
- Both Ram Prakash Gupta and Tripathi went on to become CMs themselves.
- Madhya Pradesh: Virendra Kumar Saklecha of the BJS became Deputy CM in the SVD government led by Govind Narain Singh who came to power in July 1967.
- Haryana: Haryana has had a tradition of Deputy CMs; Chaudhary Chand Ram, a Jat leader from Rohtak, was the first to hold this position in the short-lived government led by Rao Birender Singh.
What are the Powers of the Deputy CM?
- More than the post of deputy chief minister, it is the nature of portfolios allocated to a deputy chief minister that decides how much weight the person carries in the cabinet.
- Chief ministers are often seen to keep most of the important portfolios like home and vigilance with themselves.
- If it's a coalition government, then senior leaders of the largest coalition partner usually get finance and revenue.
- The chief minister is also the sole authority on the transfer and posting of Class-I officers in the state.
- The deputy chief minister does not have a say in this matter.
- The deputy chief minister gets the same pay and perks as enjoyed by other cabinet-rank ministers in the government.
- They, however, enjoy tax-free pay and perks.
- In the matters of administration, the deputy chief minister holds no authority to see the files earmarked for the chief minister.
- In fact, the deputy chief minister is required to route all files pertaining to the portfolios allocated to her to the chief minister for clearance.
- The deputy chief minister cannot claim to preside over a cabinet meeting on her own or issue directions to other departments than allocated to her by the chief minister.
- The deputy chief minister, like any other minister, needs to seek clearance from the chief minister for expenditure over and above the budget allocated to her departments.
- Yet, deputy chief ministers are politically significant.
- It conveys the political weight the party - in the case of the coalition government - or the leader carries in the ruling dispensation.
- This is virtually a declaration that the leader who is appointed as deputy chief minister is Number 2 in the government.
- This aside, the number of deputy chief ministers in a government reflects factions in the ruling dispensation that need to be balanced for survival or the government's hitch-free run.
- Even in oath-taking, the Constitution does not provide for a separate oath for the deputy chief minister or deputy minister.
What are the Concerns?
- Lack of constitutional backing and unclear roles can allow the Chief Minister to exploit the position arbitrarily.
- Unlimited appointments of Deputy CMs may lead to excessive appeasement of coalition partners.
- Duplication of roles with Cabinet ministers could create governance and administrative challenges.
What Lies Ahead?
- There's a need to clearly define the roles and responsibilities of Deputy CMs.
- Implementing a limit on the number of Deputy CMs per Chief Minister could streamline the role.
- It's essential to raise political awareness among Indian citizens about this position.
Deputy Prime Ministers:
- India has also seen several Deputy Prime Ministers — a post that was first held by Sardar Vallabhbhai Patel when Jawaharlal Nehru was Prime Minister.
- Nehru and Patel were the two tallest leaders of the Congress at the time and were also seen as representing two different streams of thinking within the party.
- Among those who held the position subsequently were Morarji Desai, Charan Singh, Chaudhary Devi Lal, and Lal Krishna Advani.
- Devi Lal’s appointment as Deputy PM in VP Singh’s government in 1989 was challenged in court on the ground that “the oath administered to him as such was not…in accordance with the prescription of the Constitution”.
- In K M Sharma vs Devi Lal and Ors (1990), the Supreme Court upheld Devi Lal’s appointment “in view of the clear statement made by the learned Attorney General that Respondent No. 1 (Devi Lal) is just a Minister like other members of the Council of Ministers, though he has been described as Deputy Prime Minister.
- The description of him as Deputy Prime Minister does not confer on him any powers of the Prime Minister”.
Hybrid Vehicles Could be a Cleaner Solution for India than EVs for the Next Decade (Indian Express)
- 31 Jan 2024
Why is it in the News?
Calculations by HSBC Research show overall carbon emissions are lower in hybrids compared to electrics. India's electric mobility plan is currently focused on battery electrics. But as global examples show, there are challenges to the wider adoption of EVs in India.
Context:
- HSBC Research recommends India prioritize hybrid vehicles as a crucial step towards full electrification over 5-10 years.
- Hybrid cars offer lower emissions compared to traditional and electric vehicles, with emissions likely to converge within a decade.
- Combining internal combustion engines with onboard electric motors, hybrids provide a balanced propulsion approach.
- This strategy aligns with India's sustainability goals, bridging the gap towards complete electrification in transportation.
Why does Hybrid Vehicles are a Good Medium-term Solution?
- Hybrid vehicles are an effective medium-term solution for India's transportation needs as it progresses towards full electrification.
- Hybrids, along with compressed natural gas cars, offer practical advantages over the next 5-10 years.
- They are deemed critical not only for cost-effectiveness but also for India's decarbonization efforts.
- Hybrids emit 133 g/km of total (well-to-wheel) carbon emissions, compared to 158 g/km for electric vehicles, making hybrids at least 16% less polluting.
- This analysis factors in not just tailpipe emissions but also considers emissions from vehicle operations (tank-to-wheel) and the entire lifecycle, including crude mining, refining, and power generation.
For How Long Is This Situation Expected to Hold?
- The convergence of emissions between electric vehicles (EVs) and hybrids is anticipated within 7-10 years.
- Currently, in India, non-fossil fuel sources account for 26% of power generation, with a blended emission rate of 716g/kWh.
- The emissions from hybrid cars and EVs will align once non-fossil fuel power generation in India reaches 44%.
- Even with a projected 40% share of non-fossil fuels by 2030, hybrids are predicted to emit 8% less than EVs, although this reduction will be half of the current 16%.
What are the Challenges Faced by Battery Electric Vehicles (BEVs)?
The global push for battery electric vehicles (BEVs) faces several challenges:
- Upfront Subsidy: BEV adoption, as seen in Norway, the US, and China, heavily relies on state subsidies.
- However, in countries like India, direct subsidies often benefit middle or upper-middle-class buyers, raising equity concerns.
- Charging Infrastructure: Investing in charging networks, as demonstrated by Norway and China, significantly boosts EV adoption.
- However, India's charging infrastructure lags, with only about 2,000 operational public charging stations, posing a challenge, especially considering the dominance of two- and three-wheelers.
- Electricity Source: Unlike countries with renewable-heavy grids, India largely relies on coal-fired plants.
- This raises questions about the environmental benefits of EVs and highlights the need for cleaner energy generation.
- Value Chain: India's reliance on lithium-ion batteries exposes the vulnerability in the global supply chain, primarily dominated by a few countries.
- Diversification strategies are crucial to mitigate risks and ensure sustainable battery production.
What are the Difference Between Hybrid and Electric Vehicles?
- Hybrid Vehicles: Hybrid vehicles utilize a combination of an internal combustion engine (usually gasoline-powered) and an electric motor.
- These vehicles can operate on both gasoline and electricity, either separately or in tandem.
- The environmental impact of hybrid vehicles is typically lower than that of traditional gasoline-powered vehicles due to their ability to switch to electric power, reducing fuel consumption and tailpipe emissions.
- However, they still rely partially on fossil fuels and produce emissions during combustion.
- Electric Vehicles: Electric vehicles (EVs) are powered solely by electricity stored in batteries.
- They produce zero tailpipe emissions, making them cleaner and more environmentally friendly than hybrid vehicles and traditional internal combustion engine vehicles.
- However, the overall environmental impact of EVs depends on factors such as the source of electricity generation.
- If the electricity comes from renewable sources like solar or wind, EVs can have a significantly lower environmental footprint compared to hybrid vehicles.
- They produce zero tailpipe emissions, making them cleaner and more environmentally friendly than hybrid vehicles and traditional internal combustion engine vehicles.
Does Electric Vehicles Pollute More than Hybrid Vehicles?
It's not accurate to say that electric cars pollute more than hybrid cars in general. However, there are specific contexts where electric cars might appear to have a higher environmental impact than hybrids.
- One such context is during the manufacturing process. Electric cars typically require large batteries, which involve the extraction of raw materials like lithium and cobalt.
- The extraction and processing of these materials can result in environmental degradation and pollution.
- Additionally, the manufacturing process for electric cars may require more energy compared to hybrid vehicles.
- Another factor is the source of electricity used to charge electric cars.
- If the electricity comes from fossil fuels like coal or natural gas, then the overall environmental impact of electric cars may be higher than that of hybrids, which can partially rely on gasoline.
- However, as renewable energy sources like solar and wind power become more prevalent, the environmental benefits of electric cars increase significantly.
- In terms of operational emissions, electric cars produce zero tailpipe emissions, while hybrids emit pollutants when running on gasoline.
- However, hybrids still produce fewer emissions than traditional gasoline-powered vehicles.
What About Other “Clean Vehicles”?
- Apart from electric cars, hydrogen fuel cell vehicles offer another zero-emission alternative.
- Unlike electric vehicles, which draw power from charging stations, hydrogen fuel cell cars generate electricity internally.
- They utilize a fuel cell that combines hydrogen from an onboard tank with oxygen from the air, emitting only water vapour and warm air.
- While hydrogen fuel cell cars hold promise for decarbonizing industries like aviation and shipping, they face challenges.
- They are less common and pricier than electric cars, with lower energy efficiency.
- Moreover, the environmental impact of hydrogen production varies: "green hydrogen" sourced from renewable energy is scarce, while most hydrogen is currently derived from "grey" or "blue" processes, which involve emissions or carbon capture complexities.
Conclusion
While hybrid vehicles offer a transitional solution, electric vehicles remain pivotal in reducing emissions. Overcoming challenges in charging infrastructure and energy sourcing is vital for maximizing their environmental benefits. Hydrogen fuel cell vehicles show promise but require significant advancements. A holistic approach, including innovation and policy support, is crucial for realizing the potential of clean mobility solutions.
Populism and Health Inequality in India (The Hindu)
- 30 Jan 2024
Why is it in the News?
A fair and effective health system requires freedom from political influence, focusing on policymaking and implementation driven by scientific evidence and long-term objectives.
Background:
- Within India's diverse landscape, where bustling cities coexist with serene villages, there's a subtle yet crucial struggle unfolding in the realm of public health.
- Despite its significance, this battle often takes a backseat to the allure of curing illnesses. While disease prevention holds paramount importance, political attention tends to gravitate towards visible and immediate achievements such as constructing new medical facilities, offering affordable treatments, and managing crises.
- Hence, there arises a pressing need to examine the challenges and deficiencies within the existing democratic approach to public health, emphasizing the necessity for evidence-based strategies geared towards long-term objectives.
What is the Present Condition of Public Health and Nutrition in India?
- According to the 5th National Family Health Survey 2019-21:
- 35.5% of children under 5 exhibited stunted growth.
- 32.1% were underweight.
- The prevalence of anaemia among children aged 6-59 months rose from 58.6% to 67.1%.
- Among women aged 15-19 years, the prevalence of anaemia increased from 54.1% to 59.1%.
- These statistics underscore a notable disparity in public health endeavours.
The Incongruity of the Democratic Process in India's Public Health:
- Emphasis on Infrastructure and Immediate Relief: The inclination towards constructing new hospitals and providing subsidized treatments reflects democratic governance in India.
- While these initiatives address immediate healthcare needs, their impact on sustained population health still needs to be improved.
- During health crises, political leaders often prioritize emergency response strategies, swiftly mobilizing state resources.
- However, many of these measures yield minimal impact due to insufficient follow-through beyond public announcements.
- Preferring Emergency Response over Vital Preventive Measures: Budget constraints often limit the effective implementation of announced initiatives, raising concerns about their long-term sustainability and impact.
- This emphasis on visible achievements can overshadow critical areas like sanitation, disease surveillance, and public health education.
- Yet, these aspects are vital for maintaining population health and averting disease outbreaks.
- The significance of quieter victories achieved through preventive measures, such as eradicating diseases like smallpox and controlling polio, often goes unnoticed despite their substantial contributions to public well-being.
A Case Study of Dengue Illustrating This Dilemma
- Immediate Response Emphasis: During dengue outbreaks, political leaders often prioritize swift relief actions, such as establishing relief camps and offering symptomatic treatments.
- This reactive stance arises from the urgency of the situation and the imperative to alleviate the immediate suffering of affected communities.
- However, the lack of emphasis on preventive measures can perpetuate a cycle of recurrent outbreaks, straining healthcare resources further.
- Overlooking Underlying Causes and Prevention: The focus on emergency relief efforts may overshadow the significance of long-term strategies, including studying vector bionomics, developing vaccines, and enhancing public health infrastructure.
- Consequently, the current approach falls short of averting future outbreaks and burdens the healthcare system.
- Research and development in these realms are imperative. For instance, despite limitations, the existing dengue vaccine underscores the necessity for further exploration.
- Additionally, climate change impacts mosquito breeding and movement patterns, necessitating adaptations in public health strategies.
What are the challenges in Public Health in India:
- Prioritizing Short-Term Gains: Political leaders often prioritize initiatives promising immediate results, like constructing new hospitals and offering subsidized treatments, over long-term public health strategies.
- Budgetary Limitations: Despite announcements, the impact of these short-term measures is limited due to constraints in budget allocation and implementation beyond public announcements.
- Neglect of Vital Areas: Critical aspects such as sanitation, disease surveillance, and public health education are often overlooked, despite their significance in maintaining population health and preventing disease outbreaks.
- For example, in the case of Dengue, relief efforts overshadow long-term strategies like vector control and vaccine development.
- Profit-Driven Pharmaceutical Sector: The profit-oriented nature of the pharmaceutical industry sidelines public health priorities, leading to disparities in medicine availability, particularly concerning diseases like tuberculosis, which disproportionately affect socio-economically disadvantaged populations.
- Lack of Holistic Approach: Addressing public health challenges necessitates interdisciplinary expertise from fields like environmental science, sociology, urban planning, and economics.
- However, India's current approach remains predominantly physician-centric, overlooking broader societal and environmental factors.
What Steps Can Be Taken?
- Prioritize Research and Development: Emphasize research, particularly in vaccine development and understanding the influence of climate change on disease vectors, to inform proactive public health strategies.
- Depoliticize Health Decision-Making: Ensure that public health policies are driven by scientific evidence and long-term objectives rather than short-term political considerations.
- Enhance Nutrition Support: Increase investments in nutrition programs, recognising their significant long-term benefits for health and productivity.
- Adopt a Holistic Approach: Implement a comprehensive public health management strategy that encompasses preventive measures, policy development, community health initiatives, and environmental health considerations.
- Grant Autonomy to Health Ministries: Consider granting health ministries greater autonomy, potentially placing them directly under the leadership of elected officials such as Chief Ministers or Prime Ministers, similar to India’s space and atomic energy departments, to facilitate more effective decision-making and implementation processes.
Conclusion
Although democracy itself is not detrimental to public health, the existing approach within democratic frameworks frequently lacks effectiveness. There is a pressing requirement to rethink public health governance, prioritizing evidence-based, comprehensive, and forward-looking strategies that cater to both present and future health requirements.
Targeting Imperfect Global University Rankings for National Security is Debatable, but Inevitable (Indian Express)
- 29 Jan 2024
Why is it in the News?
The drafting of India’s first National Security Strategy document includes a provision to expedite domestic defense manufacturing, while concurrently aiming to elevate ten Indian universities into the ranks of the global top 100.
Context:
- As India develops its first National Security Strategy, the main goal is to speed up the production of defense equipment indigenously.
- But with the world changing, it's becoming more obvious that there's a strong connection between knowledge and weapons.
- Technologies like drones, satellite internet, and artificial intelligence are being used in both civilian and military areas, blurring the lines between them.
- So, it's important for our strategy to adapt to these changes and make sure we're prepared for the future.
Examining Geopolitical Changes and Technological Boundaries:
- Reviewing Economic Integration: Previously, the United States played a crucial role in accelerating China's integration into the global economy.
- However, the recognition of the strategic implications of advanced technologies has prompted a reevaluation of this approach.
- The concept of safeguarding critical technological advancements for national security reasons, as advocated by the U.S. National Security Advisor, suggests a shift towards placing foundational technologies behind a high fence.
- Scrutinizing Friend Shoring: The notion of friend shoring, which involves maintaining economic partnerships between countries with conflicting interests, is facing increased scrutiny.
- Recent statements from the White House Economic Council Director regarding concerns over a Japanese company with Chinese operations acquiring a U.S. steel company highlight growing apprehensions surrounding economic ties with potential adversaries.
- China's Response and Technology Restrictions: In response to perceived threats to its technological sovereignty, China has implemented measures to restrict the use of certain foreign technologies.
- Notably, Tesla cars and Apple phones have been prohibited from Chinese army bases due to concerns regarding sophisticated surveillance features such as cameras, microphones, and cloud backups.
- Xi Jinping's Dual Circulation Strategy: Under Xi Jinping's leadership, China has embraced a dual circulation strategy, emphasizing the utilization of Chinese technologies whenever possible and resorting to foreign technologies only when necessary.
- This strategic approach reflects a deliberate effort to reduce dependence on external sources, aligning with broader objectives of technological self-sufficiency.
- Challenges in Indo-Pak Relations and China's Evolving Approach: India grapples with ongoing geopolitical challenges, particularly from Pakistan, which remains steadfast in its decades-old conflict stance.
- China's evolving policy towards prioritizing domestic technologies mirrors shifts in the global landscape.
Technology Advancements Through Military-University Collaborations: A Historical Context
- MIT's Impact in World War II: During World War II, the Massachusetts Institute of Technology (MIT) emerged as a crucial centre for pioneering research and technological breakthroughs that significantly influenced the war effort.
- Led by Vannevar Bush, MIT's School of Engineering transitioned to chair the National Defense Research Committee and the Office of Scientific Research and Development in 1939, facilitating seamless collaboration between academia and the military.
- MIT's contributions during this period were extensive, ranging from radar development for various applications to the creation of the Long-Range Navigation (LORAN) system.
- This collaboration demonstrated how academic institutions swiftly responded to wartime demands, providing technological solutions with lasting impacts.
- The Birth of Silicon Valley: The post-World War II era witnessed the continuation of military-university collaborations, notably contributing to the genesis of Silicon Valley.
- Frank Terman, an MIT doctoral student under Vannevar Bush and later the dean of Stanford's engineering school, played a pivotal role in fostering connections between academia and the military.
- Terman's influence was instrumental in nurturing Silicon Valley into a global epicentre of technological innovation.
- Symbiotic Alliance Between Academia and Defense: The historical collaboration between universities and the military underscores the symbiotic relationship between academic research and national defence.
- These partnerships, forged during critical historical moments, not only drove technological progress but also underscored the vital role of knowledge exchange between academia and the military in fostering strategic innovation.
Rethinking the Value of Global University Rankings
- Challenges with Ranking Methodologies: Critics often challenge the validity of global university rankings, suggesting they prioritize popularity over genuine educational excellence.
- Common metrics like peer surveys can introduce biases and may not accurately reflect an institution's academic prowess.
- Additionally, certain metrics may not capture the full spectrum of educational quality, raising concerns about the reliability of rankings.
- Limitations in Evaluation Criteria: Global rankings tend to focus heavily on research output and international reputation, neglecting other crucial aspects such as teaching quality.
- This incomplete assessment overlooks the diverse educational goals and values of institutions, leading to an ideological bias in the rankings.
- A more comprehensive evaluation framework that considers a broader range of factors is needed to provide a holistic view of educational excellence.
- Importance of Global Rankings: While facing criticism, global university rankings remain significant in the academic sphere.
- Many universities worldwide set goals to improve their rankings, using them as benchmarks for management decisions and promotional efforts.
- Institutions frequently devise strategies and allocate resources based on their standing in these rankings.
Evaluating India's University Ranking Objectives: A Strategic Necessity
- Strategies for Enhancement - Government Initiatives Encompass: Selecting and investing in 20 government universities to establish research centres equipped with substantial resources, including extensive research facilities and industry liaison offices.
- Streamlining resources by consolidating Research Laboratories and integrating independent research facilities into the top 20 government institutions to promote collaborative research endeavours.
- Redirecting government research funding primarily towards universities, mirroring the approach of established bodies like the U.S. National Institute of Health and National Science Foundation.
- Promoting corporate-university research partnerships through financial incentives, such as tax incentives for companies engaging in research activities at Indian institutions.
- Strategic Alliances with Defense Endeavors: The government's intent to collaborate with defence initiatives, as indicated by the proposed Defence Technology Council, underscores the alignment between academic excellence and national security objectives.
- Establishing strategic alliances with universities can enhance project management efficiency, addressing concerns highlighted by the Comptroller and Auditor General (CAG) regarding timelines in defence projects.
Conclusion
India's National Security Strategy must evolve in response to shifting geopolitics and technological advancements. It is essential to prioritize the elevation of universities to global stature, recognizing the interconnectedness of knowledge, defence, and national security.
Through strategic initiatives that tackle challenges and foster collaboration between academia and government, India can establish itself as a significant player in the ever-changing global security landscape.
The Indian government is currently drawing out an AI Mission that may soon head for Cabinet approval and could outlay more than Rs 10,000 crore. (Indian Express)
- 27 Jan 2024
Why is it in the News?
To dissuade concerns that Europe is overregulating artificial intelligence (AI), which could stifle innovation in the bloc, the European Commission has released a set of rules to enable start-ups and other businesses to access hardware – such as supercomputers and computing capacity – for them to build large- scale AI models
Context:
- To address concerns about excessive regulation stifling innovation in Europe, the European Commission has introduced rules allowing startups and businesses to access hardware, like supercomputers, to develop large-scale AI models.
- This supports the EU's new AI Act, designed to promote trustworthy AI across the region.
- India is also considering a similar initiative to provide computing capacity for startups, aiming to establish high-capacity data centres through a public-private partnership model.
- Access to computing power is crucial for building advanced AI systems, alongside innovative algorithms and datasets, especially challenging for smaller businesses to obtain.
What is Artificial Intelligence (AI)?
- Artificial Intelligence (AI) refers to the simulation of human intelligence processes by machines, particularly computer systems.
- These processes include learning, reasoning, problem-solving, perception, and language understanding.
- AI technologies enable machines to analyze large amounts of data, recognize patterns, and make decisions or predictions based on that data.
- There are several types of AI, including narrow or weak AI, which is designed for specific tasks like speech recognition or playing chess, and general or strong AI, which aims to perform any intellectual task that a human can do.
- Machine learning, a subset of AI, involves training algorithms to recognise patterns in data and make predictions or decisions without being explicitly programmed to do so.
- AI has applications across various industries, including healthcare, finance, transportation, and manufacturing.
- It is used for tasks such as medical diagnosis, fraud detection, autonomous vehicles, and predictive maintenance.
- As AI technology continues to advance, it holds the potential to revolutionize many aspects of society, improving efficiency, productivity, and decision-making processes.
What is Europe’s AI Innovation Plan?
- The European Commission has introduced a set of initiatives aimed at assisting European startups and small businesses in creating reliable AI technology.
- These initiatives encompass various measures to foster innovation among startups, including a proposal to grant special access to supercomputers for AI startups and the wider innovation community. The plan includes:
- Acquiring, upgrading and operating AI-dedicated supercomputers to enable fast machine learning and training of large general-purpose AI (GPAI) models.
- Facilitating access to the AI dedicated supercomputers, contributing to the widening of the use of AI to a large number of public and private users, including start-ups and SMEs.
- Supporting the AI startup and research ecosystem in algorithmic development, testing evaluation and validation of large-scale AI models.
- Enabling the development of a variety of emerging AI applications based on GPAI models.
How is the EU’s Plan Similar to India’s?
- The Indian government is currently outlining an AI Mission, which is expected to undergo Cabinet approval soon, with a budget exceeding Rs 10,000 crore.
- As part of this initiative, the government aims to develop its own 'sovereign AI,' enhance computational capabilities domestically, and provide compute-as-a-service to Indian startups.
- Capacity building will be pursued both within the government and through a public-private partnership model, emphasizing India’s goal to capitalize on the forthcoming AI boom as a vital economic driver.
- Overall, the country aims to establish a computing capacity ranging from 10,000 to 30,000 GPUs (graphic processing units) through the PPP model, in addition to 1,000-2,000 GPUs facilitated by the PSU Centre for Development of Advanced Computing (C-DAC).
- The government is exploring various incentive structures for private companies to establish computing centres in the country, including capital expenditure subsidies, operational expense-based incentives, and a "usage" fee model.
- The government intends to transform the GPU assembly into a digital public infrastructure (DPI), allowing startups to access its computational capacity at a reduced cost, without having to invest in GPUs, which are typically the largest expense in such operations.
Why is the EU especially enabling AI Innovation?
- Until now, the most prominent advancements in AI have been spearheaded by American companies like OpenAI and Google, along with emerging ventures such as Perplexity and Anthropic.
- Europe, which has traditionally prioritized regulating technologies with a focus on human rights, has faced criticism from the industry for potentially overregulating AI even before its widespread adoption across the continent.
- Unlike the US, where numerous American companies have made significant strides in offering hardware services to businesses, Europe has identified a need to facilitate access to hardware resources for AI development.
- This move by the European Commission follows the introduction of an AI Act last year, which has faced criticism.
- The legislation aims to establish safeguards for AI usage within the EU, including clear guidelines for its adoption by law enforcement agencies and provisions empowering consumers to report any perceived violations.
- Additionally, the AI Act imposes stringent restrictions on facial recognition technology and the use of AI to influence human behaviour, while also outlining severe penalties for companies found in breach of these regulations.
- Moreover, the legislation stipulates that governments can employ real-time biometric surveillance in public areas only in cases involving serious threats, such as terrorist attacks.
European Commission (EC)
- The European Commission is the European Union's executive body and represents the interests of Europe as a whole.
- It drafts proposals for new European laws.
- It manages the day-to-day business of implementing EU policies and spending EU funds.
- It is made up of 27 commissioners (one from each member state) and is based in Brussels.
- Each member state nominates a commissioner, but the nominated candidates must be approved by the European Parliament.
- The Parliament must also approve the President of the European Commission.
- The current President of the European Commission is Ursula von der Leyen.
- Commissioners do not represent their countries. Instead, they have a field of responsibility.
- To assist the commissioners in the performance of their duties, there is a staff of about 32,000 people employed by the Commission.
- This staff comes from all of the Member States and includes policy officers, translators, lawyers and researchers.
What does the European Commission do?
- Legislation – The Commission initiates legislation. It makes proposals for laws that are sent to the European Parliament and Council of the European Union for approval.
- Upholding EU law – The Commission can take action against businesses or states that are failing to comply with EU law.
- Policy – The Commission is the executive of the EU. It manages policies and drafts budgets.
- Representation – The Commission represents the EU in negotiations with other countries or organisations.
- The Commission meets once a week to adopt proposals, finalise policy papers and make decisions.
- Decisions are taken by a simple majority vote.
Turkey Finally Backs Sweden’s NATO Bid: Why the Opposition, why it changed its stance (Indian Express)
- 25 Jan 2024
Why is it in the News?
Turkey’s parliament ratified Sweden’s Nato membership bid recently, clearing the biggest remaining hurdle to expand the Western military alliance after 20 months of delay.
News Summary:
- Turkey's parliament ratified Sweden's NATO membership bid recently, clearing the biggest remaining hurdle to expand the Western military alliance after 20 months of delay.
- Sweden and Finland applied to join in May 2022, following Russia's invasion of Ukraine.
- The two countries feared for their security.
- Finland - which has a 1,340km land border with Russia - became a Nato member in April 2023.
- Turkey had been blocking Sweden's application because it said the country had refused to hand over members of militant groups such as the Kurdistan Workers' Party (PKK).
- Sweden's bid for membership was finally approved by the Turkish parliament on 23 January.
- Now, Sweden only needs Hungary's parliament to approve its membership.
- For a nation to become a member of the North Atlantic Treaty Organization (NATO), the consent of all current member countries is required.
- Turkey has been a member of NATO since 1952.
Why does Sweden want to join NATO?
- Sweden has not fought a war in two centuries, staying neutral through the two World Wars and the Cold War.
- In recent years, while it joined the European Union and collaborated with NATO, it showed no intention of actually joining the military alliance its powerful neighbour, Russia, is hostile to.
- However, this neutrality had to be abandoned after Russia invaded Ukraine.
- With public opinion increasingly in favour of joining NATO, both Sweden and Finland applied for membership in 2022.
- While Finland’s bid was cleared, Sweden ran into stiff opposition from Turkey’s President Recep Tayyip Erdogan and Hungary’s Prime Minister Viktor Orban.
- Once a country is a NATO member, an attack on its territory is considered an attack on the US-led alliance, and all 31 members are obliged to defend each other.
Why was Turkey opposing Sweden’s bid?
- Turkey had accused Sweden of going soft on groups it sees as terrorists, such as the Kurdish militant outfit the Kurdistan Workers’ Party (PKK).
- Quran-burning protests held in Sweden, which its government says are protected under freedom of speech laws, further soured its relationship with Turkey.
- Erdogan had also linked Turkey’s support to Sweden with the US agreeing to sell 40 F-16 fighter jets to Ankara. While the US had not said the deal would depend on Turkey’s Sweden actions, the sale is expected to go through now.
What will Sweden bring to NATO?
- Once Sweden becomes a member, almost all of the Baltic Sea coastline, except that in Russia’s control, will become NATO territory.
- This will provide the alliance with strategic bases close to Russia, make supply lines more streamlined, and make it easier to defend assets in the sea.
- Sweden’s military, though numerically small, is modern and experienced in past NATO missions. Importantly, it has advanced aircraft and submarine capabilities.
What is NATO?
- Established in the aftermath of World War II, the North Atlantic Treaty Organization (NATO) is an intergovernmental military alliance between 28 European countries and 2 North American countries and is headquartered in Belgium.
- It implements the North Atlantic Treaty, which is a system of collective security, where its member states agree to mutual defence in response to an attack by any external party.
- The most recent member to be added was Finland on 4 April 2023.
- Since its founding on April 4, 1949, the admission of new member states has increased the alliance from the original 12 countries to 30.
Background:
In the event of a possible attack by Germany, a Treaty of Alliance and Mutual Assistance was signed by France and the United Kingdom in 1947.
- Later next year, the alliance was expanded to include Belgium, the Netherlands, and Luxembourg, in the form of the Western Union.
- In 1949, talks for the new military alliance which would include North America resulted in the signing of the North Atlantic Treaty.
- The Treaty included the members of the Western Union and the United States, Canada, Portugal, Italy, Norway, Denmark and Iceland.
- In May 1955, West Germany was permitted to rearm militarily, as they joined NATO, which was a major factor in the creation of the Soviet Union-dominated Warsaw Pact, delineating the two opposing sides of the Cold War.
- In October 1990, East Germany became part of the Federal Republic of Germany and the alliance, and in November 1990, the alliance signed the Treaty on Conventional Armed Forces in Europe (CFE) in Paris with the Soviet Union.
- The treaty mandated specific military reductions across Europe, which continued after the collapse of the Warsaw Pact in February 1991 and the dissolution of the Soviet Union, which removed the de facto main adversaries of NATO.
- The Treaty was largely dormant until the Korean War initiated the establishment of NATO to implement it, by means of an integrated military structure, which included the formation of Supreme Headquarters Allied Powers Europe in 1951, adopting the Western Union's military structures and plans.
What is the Purpose of NATO?
- According to NATO, its purpose is to guarantee the freedom and security of its members through political and military means.
- By political, it means the organisation promotes democratic values and enables members to consult and cooperate on defence and security-related issues to solve problems, build trust and, in the long run, prevent conflict.
- Militarily, NATO says it is committed to the peaceful resolution of disputes, and if diplomatic efforts fail, it has the power to undertake crisis-management operations, under the collective defence clause - Article 5 of the Washington Treaty or under a United Nations mandate, alone or in cooperation with other countries.
- Article 5 of the North Atlantic treaty, requiring member states to come to the aid of any member state subject to an armed attack, was invoked for the first and only time after the September 11 attacks, after which troops were deployed to Afghanistan.
The Role of NATO in the Russia-Ukraine Conflict:
Among the 30 countries in the organisation, Ukraine is not a member, even though it has included three former Soviet republics -- the Baltic states of Estonia, Latvia, and Lithuania.
- In 2008, NATO appeared to open the door to membership to two more former Soviet republics when its heads of government declared that Georgia and Ukraine "will become members of NATO."
- Neither has formally received eventual membership, with a lack of consensus among members.
- Russian President Vladimir Putin demanded that Ukraine never join the alliance as he seeks to limit NATO’s presence in Eastern Europe.
- Days before Putin announced a military operation in Ukraine in February 2022, he in a televised address linked the current crisis directly to Russia's Nato demands, which include a guarantee that the organisation stop expanding to the East and pull back its infrastructure from Eastern European countries that joined after the Cold War.
- If the conflict goes beyond Ukraine and impacts Nato members, it could lead the organisation to invoke its mutual self-defence clause, i.e., Article 5 of the Nato treaty.
Why Punjab moved SC against the expansion of BSF jurisdiction (Indian Express)
- 24 Jan 2024
Why is it in the News?
The Supreme Court is set to hear the dispute over the expansion of the Border Security Force (BSF) jurisdiction in Punjab.
Context:
- The Supreme Court will hear petitions filed by the Punjab government against the Centre’s notification expanding the jurisdiction of Border Security Forces (BSF) to 50 km from the international border in Punjab.
- This comes after the Centre in 2021 decided to expand the BSF’s jurisdiction to undertake search, seizure and arrest within a larger 50-kilometre stretch from the International Border compared to the earlier limit of 15 kilometres.
- The Centre had also decided to decrease the BSF’s area of operation in Gujarat from 80 kilometres from the border to just 50 kilometres.
What is the Border Security Force (BSF)?
- The BSF was established on 1 December 1965 after the India-Pakistan war.
- With a strength of about 2.65 lakh personnel, it has 192 operational battalions and deployed along the Pakistan and Bangladesh borders.
- It is the country’s largest border force and one of the Central Armed Police Forces of the Union of India under the administrative control of the Ministry of Home Affairs (MHA).
- The other forces include the Indo-Tibetan Border Police (ITBP), the Sashastra Seema Bal (SSB) and the Assam Rifles, Central Industrial Security Force (CISF), Central Reserve Police Force (CRPF) and National Security Guards (NSG).
- It also contributes dedicated services to the UN peacekeeping Mission by sending a large contingent of its trained manpower every year
- The BSF is meant to secure India’s borders with its neighbouring nations and is empowered to arrest, search and seize under a number of laws, such as the Criminal Procedure Code, the Passports Act, the Passport (Entry into India) Act, and the NDPS Act, to name a few.
Why was the BSF Jurisdiction Extended?
- Section 139(1) of the BSF Act allows the central government, through an order, to designate an area “within the local limits of such area adjoining the borders of India” where members of the BSF can exercise powers to prevent offences under any Acts that the central government may specify.
- Prior to the notification issued in October 2021, the BSF could exercise its powers within 15 kilometres of the border in Punjab, West Bengal and Assam.
- The Centre expanded this to within 50 kilometres of the border.
- The notification states that, within this larger 50-kilometre jurisdiction, the BSF can only exercise powers under the Criminal Procedure Code, the Passport (Entry into India) Act and the Passports Act.
- For other central legislations, the 15-km limit remains.
- This expansion was in response to the increased use of drones and Unmanned Aerial Vehicles, which have long-range capabilities and enable surveillance and the smuggling of arms and fake currency.
- The ‘menace of cattle smuggling’ and smugglers often seek refuge outside BSF jurisdiction.
- The centre also claimed that the notification makes the BSF jurisdiction uniform across states, as the 50-kilometre limit was already in place in Rajasthan.
- The same notification reduced the jurisdiction in Gujarat from 80 km to 50 km.
Why Punjab Challenged This Act?
- The state of Punjab filed an ‘original suit’ against the central government in the Supreme Court in December 2021 and alleged that the extension of the territorial jurisdiction of BSF encroaches upon its own constitutional jurisdiction.
- The Supreme Court has ‘original jurisdiction’ in disputes between the central government and states under Article 131 of the Constitution, which means cases of this kind can only be heard for the first time at the SC “to the exclusion of any other court”.
- The Punjab government claimed that expanding the jurisdiction of the BSF would compromise the state’s exclusive powers to legislate on matters involving the police and public order.
- These powers are provided in Entries 1 and 2 of the State List under Article 246 of the Constitution.
- They also claimed that the notification was issued without consulting with any of the states concerned.
How did Other States Respond?
- The states at the time had decried the move as an “irrational decision”, a “direct attack on federalism” and an attempt to “interfere through Central agencies”.
- Punjab and West Bengal denounced the move with the respective state Assemblies even passing resolutions against the Centre’s decision.
What are the Challenges Associated with Expanding Jurisdiction?
- Public Order vs. Security of State: Maintaining public order and policing, signifying peace, safety, and tranquillity, falls within the purview of State Governments (Entry 1 and Entry 2 of the State list, respectively).
- However, if a severe public disorder poses a threat to the security or defence of the State or the nation itself (Entry 1 of the Union list), it becomes a matter of concern for the Union Government as well.
- Federalism Strain: Issuing notifications without state government concurrence may be seen as an infringement on state powers.
- The Punjab Government argues that such notifications amount to the Centre encroaching under the pretext of security or development.
- Impact on BSF Operations: The extension of jurisdiction to policing in the hinterland contradicts the role of a border guarding force.
- This shift could potentially undermine the BSF's ability to fulfil its primary duty of guarding the international border.
Issues Specific to Punjab:
- Overlapping Powers: The extended 50 km jurisdiction grants concurrent power with state police over every cognizable offence under the Indian Penal Code (IPC).
- In a relatively small state like Punjab, this extension encompasses all major cities.
- In other states like Gujarat and Rajasthan, where the extension might be considered, Gujarat has substantial marshland, and extending jurisdiction there might be reasonable as it doesn't encompass major urban centres.
- Similarly, in Rajasthan, the presence of a desert reduces the impact of jurisdiction extension.
Way Ahead
- Emphasis on State Consent: Considering the security dynamics in India's vicinity, the existing collaboration between Central armed forces and State civil authorities remains suitable.
- Nonetheless, consulting with the State Government before deploying armed forces by the Union Government is recommended, whenever possible.
- State Empowerment: Each State Government, in coordination with the Union Government, should devise both short-term and long-term strategies to fortify its Armed Police.
- The aim is to achieve substantial self-reliance in managing Armed Police matters, necessitating the Central armed forces' intervention only during exceptionally severe disturbances.
- Regional Collaboration: Neighboring States can collaboratively establish a framework for utilizing each other's Armed Police in times of necessity through consensus.
- The Zonal Council stands out as the most apt platform for States within a zone to reach a consensus and formulate such arrangements.
Tax contribution by States needs to be revisited (The Hindu)
- 23 Jan 2024
Why is it in the News?`
During a NITI Aayog meeting chaired by the Prime Minister, Chief Ministers voiced their apprehensions regarding the declining revenues of the states.
Context:
- The Finance Commission holds a crucial role in suggesting the distribution formula for States' allotment of Union tax revenue.
- The formulation has witnessed changes over time in terms of the inclusion and significance of different factors, with tax contribution emerging as a central point of debate.
- It is essential to underscore the historical context, principles of equity and efficiency, and the repercussions of integrating the Goods and Services Tax (GST) regime into the distribution formula
What is the Finance Commission?
- The Finance Commission is a constitutional body responsible for providing recommendations on the distribution of tax revenues among the Union and the States, as well as among the States themselves.
- The President constitutes the Finance Commission under Article 280 of the Constitution.
- It is established at the end of every fifth year, or earlier if deemed necessary.
- Qualifications and Selection: Parliament, through legislation, determines the qualifications for Commission members and the selection process.
- The Finance Commission (Miscellaneous Provisions) Act, 1951, addresses these aspects.
- Mandate: The Commission's duties include making recommendations to the President on the distribution of tax proceeds between the Union and States, principles guiding grants-in-aid, measures to enhance State Consolidated Funds, and any other financial matters referred by the President in the interest of sound finance.
- Composition: The Commission comprises a Chairman and four members appointed by the President.
- Member Qualifications: The Chairman is selected from individuals with experience in public affairs, while the four other members are chosen from those with qualifications such as being former or eligible High Court Judges, and possessing expertise in government finances, administration, or economics.
- Tenure: Each member serves a specified term, as determined by the President, and is eligible for reappointment.
- Non-Binding Recommendations: The recommendations of the Finance Commission are advisory and not binding on the government.
The History and Evolution of the Distribution Formula:
- The historical development of the Finance Commission's distribution formula has played a pivotal role in shaping India's fiscal federalism.
- Initially focusing on personal income tax and Union excise duties, the formula underwent substantial changes with the introduction of the 10th Finance Commission, reflecting a more nuanced understanding of fiscal relations between the Union and States.
- Expansion of Revenue Streams with the 10th Finance Commission: The introduction of the 10th Finance Commission marked a significant transformation as all Central tax revenues were consolidated, expanding the range of revenue streams in the distribution formula.
- This departure from the earlier approach acknowledged the necessity for a comprehensive framework to address the intricate fiscal dynamics among the States.
- Equity and Efficiency as Guiding Principles: The distribution formula shifted its focus to prioritise equity and efficiency.
- Equity considerations aimed to rectify imbalances by allocating larger shares to revenue-scarce and high-expenditure States, while the efficiency principle rewarded states demonstrating proficiency in revenue collection and spending practices.
- This departure from the earlier needs-based criteria recognized the importance of incentivizing states to enhance fiscal capacities for the country's overall economic well-being.
- Dynamic Interplay of Equity and Efficiency: The ongoing normative debate within the Indian fiscal framework is exemplified by the dynamic interplay between equity and efficiency in successive Finance Commissions' recommendations.
- Striking the right balance between these principles remains a complex task, and the formula has evolved to reflect the changing priorities of fiscal federalism.
- Inclusion of Various Indicators: While early Finance Commissions incorporated indicators such as population, per capita income, and area in the distribution formula, a notable shift towards a more comprehensive and consolidated approach has occurred since the 10th Finance Commission.
- The convergence of income tax and Union excise duties into a single formula from the 10th Finance Commission onward aimed to streamline the approach and ensure consistency across different revenue sources.
Evaluating Efficiency Indicators in the Distribution Formula:
- Tax contribution serves as an efficiency indicator, offering insights into a state's developmental level and economic structure.
- Historically, it has been assigned a relatively modest weight, ranging from 10% to 20% within the distribution formula.
- In the early commissions, population, a key indicator of expenditure needs, played a dominant role, commanding weights between 80% and 90%.
- From the year 2000 onward, the distribution formula incorporated tax effort and fiscal discipline as efficiency indicators, each carrying approximately 15% weight.
- However, these indicators encountered challenges stemming from their instability, influenced by discretionary tax policies and unexpected shifts in tax bases.
The Reasons to Consider Petrol Consumption and GST in the Distribution Formula as Efficiency Measures:
- Petroleum Consumption as a Supplementary Indicator: In addition to GST, considering petroleum consumption as an efficiency indicator adds depth to the formula.
- Union excise duty and sales tax on petroleum products, excluded from GST, significantly contribute to the national exchequer.
- The stable and consistent nature of relative shares of petroleum consumption across states makes it an attractive supplementary indicator for assessing a state's contribution to specific tax categories.
- Stability and Uniformity in GST Contributions: In contrast to previous indicators, GST provides a unified tax system that minimizes variations in tax efforts among states.
- While the absolute amount of GST revenue generated may vary based on the size and economic structure of each state, the relative contributions remain stable over time.
- This stability is crucial for establishing a fair and consistent measure of a state's efficiency, particularly in revenue collection.
- Accurate Reflection of State's Tax Base through GST Revenue: The implementation of the Goods and Services Tax (GST) has transformed India's taxation landscape, introducing a consumption-based destination tax system that is equally divided between State and Central governments.
- This structure offers a unique opportunity for a precise estimation of a state's tax contribution.
- The inherent symmetry in GST ensures that the State GST accrual mirrors the Central GST accrual to the Union government from that state, making GST a stable and reliable measure of a state's tax base.
- Exclusion of Discretionary Policies in GST: One significant advantage of incorporating GST into the distribution formula is its insulation from discretionary tax policies.
- Unlike tax effort, which can be influenced by state-specific policy decisions, GST reflects the accurate tax base of a state, unaffected by varying policy choices.
- This characteristic makes GST a more objective and reliable indicator of a state's contribution to the national exchequer.
- Linkage to Income Levels: A compelling rationale for including both GST and petroleum consumption lies in their indirect reflection of the relative differences in the incomes accrued to the residents of a state.
- Consumption patterns are inherently tied to income levels, making the shares of CGST and Union excise duty accurate proxies for assessing both personal and corporate income tax contributions.
- Proposal for Weightage Increase: Given the fair and accurate nature of GST and petroleum consumption as efficiency metrics, there is a strong proposal for the 16th Finance Commission to assign a more substantial weightage to these indicators.
- A weightage of at least 33% has been suggested, considering the significant role these indicators play in reflecting a state's contribution to the national exchequer.
Conclusion
The transformation of the Finance Commission's distribution formula has moved from a reliance on population-centric indicators to embracing efficiency measures. The introduction of the GST regime, coupled with stable indicators such as petroleum consumption, offers an opportune moment to reassess the distribution formula. As the 16th Finance Commission contemplates the next formula, assigning appropriate weight to tax contribution as an efficiency indicator can guarantee a fair and accurate portrayal of states' contributions to the national exchequer.
WTO dispute settlement body revival faces delays over country differences: GTRI (Indian Express)
- 22 Jan 2024
Why is it in the News?
Reinstating a fully functional WTO dispute settlement body to resolve trade disputes between countries could take longer than expected as there continue to be wide differences between developed and developing countries over the issue, a GTRI report said recently.
Context:
- According to the GTRI report, an economic think tank, restoring a fully functional WTO dispute settlement body may take longer due to significant differences between developed and developing countries on the issue.
- This comes as the 164-member World Trade Organization (WTO) will gather next month in Abu Dhabi for the 13th ministerial conference (MC) to resolve different issues such as reforms in dispute settlement mechanisms, agriculture-related matters, etc.
Highlights of the GTRI Report:
- Escalating Protectionism: The absence of a functional dispute settlement body has fueled a surge in protectionist measures.
- Since 2017, the US has obstructed the appointment of new judges to the WTO's seven-member appellate court, citing perceived harm to its interests.
- Delicate Balancing Act: Addressing India's appeals for an effective appellate body, special and differential treatment (S&DT) provisions, and fairness must be delicately balanced with the concerns of other members.
- This includes considerations such as transparency and legal certainty, demanding significant compromise and negotiation.
- Complex Consensus Building: Reforming the dispute settlement system proves challenging as developed and developing nations hold divergent priorities and concerns.
- Achieving a consensus requires navigating through intricate negotiations.
- Disproportionate Impact on the US: The proper functioning of the WTO Appellate Body disproportionately affects the US, given that over a quarter of all WTO disputes involve challenges to US laws or measures.
What is the Global Trade Research Initiative (GTRI)?
- Global Trade Research Initiative (GTRI) is a research Group focused on Climate Change, technology and trade
- GTRI aims to create high-quality and jargon-free outputs for governments and industry from the perspective of development and poverty reduction.
- Mr Ajay Srivastava is the Founder of GTRI.
What is the World Trade Organization?
- The World Trade Organization (WTO) is an international organization that deals with the rules of trade between countries.
- It was founded in 1995 as a successor to the General Agreement on Tariffs and Trade (GATT), which, since 1948, had governed trade rules until the establishment of the WTO.
- The WTO describes its principal function as being to provide a forum for its members to negotiate on trade issues.
- It operates a body of rules in the form of WTO agreements.
- It provides a dispute settlement mechanism (DSM) to resolve disagreements over the rules between members.
- The WTO has many roles:
- It operates a global system of trade rules, acts as a forum for negotiating trade agreements, settles trade disputes between its members and it supports the needs of developing countries.
- All major decisions are made by the WTO's member governments:
- either by ministers (who usually meet at least every two years) or by their ambassadors or delegates (who meet regularly in Geneva).
- Decision-making:
- All major decisions within the WTO are made by its member governments.
- The top decision-making body is the Ministerial Conference, which typically convenes every two years.
- Day-to-day decisions are overseen by the General Council, which meets regularly in Geneva.
- Membership
- The WTO has over 160 members, representing 98% of world trade.
- Joining the WTO requires aligning economic and trade policies with its rules and negotiating entry terms with the existing membership.
- Budget:
- The WTO derives most of the income for its annual budget from contributions by its members.
- These contributions are based on a formula that takes into account each member's share of international trade.
- Director-General:
- Ngozi Okonjo-Iweala is the seventh Director-General of the WTO.
- She took office on 1 March 2021, becoming the first woman and the first African to serve as Director-General.
- Her term of office will expire on 31 August 2025.
- The primary purpose of the WTO is to open trade for the benefit of all.
About the WTO Dispute Settlement Body (DSB):
- The WTO Dispute Settlement Body (DSB) deals with disputes between WTO members.
- It was created in Article 2 of the Dispute Settlement Understanding (DSU) administers World Trade Organization (WTO) dispute settlement proceedings.
- The DSB consists of all WTO members, usually represented by Ambassadors or equivalent.
- It makes decisions on trade disputes between governments that are adjudicated by the Organization.
- The DSB has the sole authority to establish “Panels” of experts to consider the case and to accept or reject the Panels’ findings or the results of an appeal.
- The DSB uses a special decision procedure known as "reverse consensus" or "consensus against" that makes it almost certain that the Panel recommendations in a dispute will be accepted.
- The process requires that the recommendations of the Panel should be adopted "unless" there is a consensus of the members against adoption.
- The DSB monitors the implementation of the rulings and recommendations and has the power to authorize retaliation when a country does not comply with a ruling.
Why is the WTO Dispute Settlement Body (DSB) Inoperative?
- The WTO's dispute settlement system faces a critical challenge as its appeals mechanism is currently non-operational.
- The root cause lies in the United States objection to the appointment of new judges to the Appellate Body, citing concerns about judicial overreach.
- Consequently, a significant number of panel reports are left in limbo, with appeals going unanswered and disputes lingering without resolution.
- This impasse creates a formidable obstacle for WTO members seeking to enforce their obligations through complaints against measures they perceive as violations.
Conclusion
The WTO's dispute resolution mechanism grapples with a formidable crisis, rendering it largely nonfunctional due to the U.S.'s opposition to new Appellate Body judges. This impasse leaves disputes unresolved, severely limiting members' ability to enforce obligations. As the organization grapples with this crisis, finding a resolution becomes paramount to restore the efficacy of international trade agreements and uphold the WTO's core principles.
The problem with India’s science management (The Hindu)
- 20 Jan 2024
Why is it in the News?
As India remoulds its scientific establishment, the utility of scientists being given administrative tasks needs to be questioned.
Context:
- Sustained economic progress which can satisfy national ambition is invariably fuelled by scientific advances translated into deployable technologies.
- This has been the inevitable global experience since the onset of the Industrial Revolution.
- The government is overhauling India’s science establishment, which includes setting up the new National Research Foundation (NRF) and restructuring the Defence Research and Development Organisation (DRDO).
- In this scenario, a frank assessment of the current administrative ability to simultaneously optimise Indian science’s efficiency and resilience is necessary.
What are the Problems with India’s Scientific Advancement?
India has a long and rich history of scientific innovation. However, in recent years, the country's science management has come under increasing scrutiny. There are several problems with India's science management including:
- Lack of Funding in Research and Development (R&D): One of the most pressing issues is a lack of funding.
- India spends a relatively small percentage of its GDP on research and development, compared to other developed countries.
- For instance, India allocates only about 0.7% of its GDP to R&D, a considerably lower figure compared to global leaders like the United States (3.5%) and China (2.4%).
- This lack of funding has led to a brain drain of talented scientists, who are leaving India in search of better opportunities.
- India spends a relatively small percentage of its GDP on research and development, compared to other developed countries.
- Budgetary Challenges: The modest commitment to R&D stems from broader budget constraints, competing priorities, and a historical emphasis on immediate socio-economic needs.
- This presents a challenge in fostering a robust scientific ecosystem on a limited budget.
- Lack of Coordination: Another problem with India's science management is a lack of coordination.
- There are many different government agencies and departments that are involved in science and technology, but there is often a lack of communication and cooperation between them.
- This can lead to duplication of effort and a waste of resources.
- Inadequacies in Budget Allocation by Scientific Administration: The current scientific administration struggles to identify and invest in high-impact projects.
- For instance, in 2022, the Indian Space Research Organisation ranked eighth in space launches, lagging in key technologies.
- Similar setbacks are evident in nuclear energy, genomics, robotics, and artificial intelligence.
- Lack of Strategic Planning and Execution: Beyond expenditure, the challenge extends to strategic planning and execution of scientific projects.
- Failure to adapt swiftly to emerging technologies and allocate resources judiciously has resulted in India falling behind in crucial fields.
- Inconsistent Long-Term Funding: A major concern is the absence of consistent long-term funding for vital projects, especially when faced with occasional setbacks.
- Steady funding, despite occasional failures, is crucial for a resilient and effective scientific management system.
- Finally, India's science management is often criticized for being too bureaucratic. The process of getting funding for research projects can be long and complex, and it can be difficult for scientists to get the support they need to succeed.
The Role of Senior Scientists in India’s Science Administration:
- Diverse Responsibilities Impacting Focus: Senior scientists in India often juggle multiple responsibilities, including academic pursuits, administrative duties, and leadership positions.
- This dispersion of focus can lead to inefficiencies and a lack of dedicated attention to critical administrative tasks.
- Lack of Administrative Skills: The assumption that successful scientists can seamlessly transition into effective administrators overlooks the distinct skills required for scientific work versus administration.
- Managing institutions, allocating resources, and making organizational decisions demand specific skills not necessarily possessed by accomplished scientists.
- Insufficient Training for Administrative Roles: Inadequate training makes it challenging for scientists to excel in administrative roles.
- Tasks like metric selection, conflict resolution, and setting priorities require skills not inherently developed through scientific training.
- Administration involves translating policy into outcomes, a skill not typically prioritized in scientific training.
- Conflicts of Interest and Quality Control Issues: The dual roles of scientists as academics and administrators can result in conflicts of interest within institutions.
- Academic rivalries, bureaucratic challenges, and compromised quality control may emerge, leading to issues like plagiarism, unethical publication practices, and compromised scientific outcomes.
- Nationwide Transfer System Absence: The absence of a nationwide transfer system for scientists and science administrators exacerbates issues such as competition and egotism.
- The lack of mobility within the system can contribute to internal divisions and hinder the progress of scientific careers and projects.
- Internal Control Challenges: Allowing individuals within the system to regulate it can lead to clear drawbacks, impacting the impartiality and effectiveness of science administration in India.
Challenges in India's Science Administration: A Historical Perspective
- Concentration of High-End Equipment: Economic constraints post-independence led India to concentrate on high-end scientific equipment, notably in institutions like the IITs.
- This concentration birthed gatekeepers, controlling access to critical resources and establishing a hierarchical structure where a few institutions wielded disproportionate influence.
- Gatekeepers and Institutional Captures Concept: Over time, these gatekeepers solidified their positions, accumulating power, government support, and institutional control.
- This system created an environment where young scientists navigated a complex web of influence, paying tributes to those controlling vital resources.
- Impact on Scientific Careers: The gatekeeping system not only influenced resource access but also shaped career trajectories.
- The nexus between institutional power and individual careers became pivotal, with appointments, awards, and international recognition often tied to maintaining favourable relations with gatekeepers.
- Normalization of Unethical Practices: The gatekeeping system has normalized unethical practices within Indian science.
- High plagiarism rates, paid publications in questionable journals, and undisclosed dealings for government funding have become ingrained, compromising the ethical standards of scientific research.
- Stifling Genuine Scientific Outcomes: This erosion of ethical standards doesn't just compromise research quality but stifles genuine scientific outcomes.
- Scientists in conflict with this system face hurdles, hindering promising careers and perpetuating a culture where personal connections often outweigh merit.
A Comparative Analysis of the U.S. Model and Indian Science Administration:
- U.S. Model: In the U.S., scientists chosen for administrative roles are identified early in their careers and undergo targeted training for managerial tasks.
- The emphasis is on maintaining a distinct separation between scientific pursuits and administrative responsibilities.
- Indian Scenario: In contrast, India's science administration traditionally involves senior scientists taking up administrative roles without a clear separation between scientific and administrative functions.
- This integrated approach poses challenges, as the skill sets needed for effective scientific research often differ significantly from those crucial for efficient administration.
Conclusion
As India pursues economic and strategic progress, challenges in science management hinder its research and development, causing a lag in innovation compared to other developed nations. To remedy this, increasing funding for research and development is crucial, along with enhancing coordination among government agencies and streamlining the funding process for research projects. By addressing these issues, India has the potential to emerge as a global leader in science and technology, bringing substantial benefits to its economy and society.
Resistance to medicines on the rise, Govt urges docs to mention reason when prescribing antibiotics (Indian Express)
- 19 Jan 2024
Why is it in the News?
With antimicrobial resistance on the rise, the Union Health Ministry has urged doctors to write down the exact reason when prescribing antibiotics.
New Summary:
- The Union Health Ministry urged all doctors in medical colleges and medical associations to make it a mandatory practice to "write indication/reason/justification" while prescribing antibiotics.
- The Director General of Health Services also appealed to all pharmacists to strictly implement Schedule H and H1 of the Drugs and Cosmetics Rules and stop the over-the-counter sale of antibiotics.
- Antimicrobials are listed under Schedule H and H1 of the Drugs and Cosmetics Act, both of which are categories of medicines that cannot be sold without a prescription.
What is Antimicrobial Resistance?
- According to the World Health Organisation (WHO), antimicrobial resistance occurs when bacteria, viruses, fungi and parasites change over time and no longer respond to medicines.
- This makes infections harder to treat, increasing the risk of disease spread, severe illness and death.
- As a result, the medicines become ineffective and infections persist in the body, increasing the risk of spreading to others.
- AMR affects countries in all regions and at all income levels.
- Its drivers and consequences are exacerbated by poverty and inequality, and low- and middle-income countries are most affected as per WHO.
- Currently, AMR is one of the top global public health threats facing humanity.
- It is estimated that bacterial AMR was directly responsible for 1.27 million global deaths in 2019 and 4.95 million deaths were associated with drug-resistant infections.
- According to the Indian Council of Medical Research (ICMR), 1.25 million lives were lost to drug resistance in 2019.
- India has one of the highest rates of antimicrobial resistance worldwide.
- Despite being prescription drugs, antibiotics are commonly available over-the-counter (OTC) at retail pharmacies.
- In a recent survey, conducted by the National Centre for Disease Control (NCDC) under the Union Health Ministry, over half of the antibiotics prescribed in the country cause antimicrobial resistance.
- Treatment failures also lead to longer periods of infectivity and the prohibitively high cost of second-line drugs may result in failure to treat these diseases in many individuals.
Scenarios in Which Antimicrobials are Most Commonly Misused?
- There are two common scenarios in which antimicrobials are misused or overused even by doctors.
- One is when they cannot make a diagnosis on whether an infection is caused by a bacteria or virus and prescribe antibiotics to err on the side of caution.
- Two, when they know it is a bacterial infection but want to avoid secondary infection.
- This is where antibiotics can be conserved because very few people get such secondary bacterial infections.
- In the case of a serious patient, who is admitted to the hospital, broad-spectrum antibiotics may be prescribed for 48 hours, during which they can be tested for which pathogen is causing the infection.
- The antibiotics needed to be switched after that.
- Prescription for antimicrobials before and after a procedure or surgery is another way that antibiotics are commonly overused.
- Just a single dose of antibiotic 60 to 120 minutes before surgery is enough to prevent surgical site infections.
- However, doctors end up prescribing antibiotics for seven to 14 days.
- If proper sterilization of equipment, and preparation of the surgical site are done, infections cannot happen.
- Shaving the surgical site before surgery should be avoided because it can lead to abrasions that can get infected
The Result of Antimicrobial Overuse and Misuse?
- Common infections are not curable anymore.
- Tuberculosis and urinary tract infections have become multi-drug resistant.
- In hospitals, infections are resulting in longer treatment times with the use of costlier and more toxic antibiotics.
- Despite all efforts and successful surgeries, people are dying
Factors contributing to Antimicrobial Resistance (AMR):
- Unnecessary Prescriptions: In many cases, antibiotics are prescribed when they are not necessary or are not used correctly.
- This can lead to the survival and proliferation of resistant bacteria.
- Agricultural use: The use and overuse of antimicrobials in agriculture, including to promote growth and prevent disease in livestock, is also a major contributor to the development and spread of AMR.
- Selective pressure: In the presence of antimicrobials, microbes that carry resistance genes can survive, replicate, and quickly dominate the microbial population.
- Mutation: Rapid microbial reproduction allows for swift-evolution, and mutations during replication may aid individual microbes in surviving antimicrobial exposure.
- Inappropriate use: Unnecessary and injudicious use of antibiotic fixed dose combinations may lead to the emergence of bacterial strains resistant to multiple antibiotics.
- State of the Environment: There is growing evidence that the environment plays a key role in the development, transmission and spread of AMR. Its proliferation is linked to the triple planetary crisis of climate change, nature and biodiversity loss, pollution and waste.
- For example, higher temperatures, storms and floods can fuel the spread of bacterial, viral, parasitic, fungal and vector-borne diseases.
- Severe weather events can also cause wastewater and sewage to overwhelm treatment plants, allowing untreated sewage rich in antimicrobial-resistant microbes to contaminate surrounding communities.
- As well, wastewater laced with medicines, including that from animal production facilities, hospitals and pharmaceutical companies, can feed drug resistance.
Measures Taken by the Government of India to Address AMR:
- National Action Plan on AMR: The National Action Plan on Containment of Antimicrobial Resistance (NAP-AMR) was launched in 2017.
- Emphasis is placed on a One Health approach, involving various stakeholder ministries/departments.
- AMR Surveillance and Research Network (AMRSN): ICMR has set up the AMR Surveillance and Research Network (AMRSN) comprising 30 tertiary care hospitals, both private and government.
- Its purpose is to generate evidence and capture trends and patterns of drug-resistant infections in the country.
- Research and International Collaboration: Initiatives by ICMR aim to develop new drugs and medicines through international collaborations.
- This is intended to strengthen medical research in the field of AMR.
- Red Line Campaign: The Union health ministry initiated the "Red Line Campaign."
- It urges people not to use medicines marked with a red vertical line, including antibiotics, without a doctor’s prescription.
- The campaign aims to discourage unnecessary prescription and over-the-counter sales of antibiotics, addressing drug resistance for diseases like TB, malaria, urinary tract infections, and HIV.
Way Forward
- Antimicrobials have saved countless lives and are essential to modern medicine but we need to use them more judiciously.
- Healthcare professionals should only prescribe antibiotics when necessary and at the right dosage and duration.
- The use and overuse of antibiotics in agriculture must also be limited.
- Countries must adopt the One Health approach, which recognizes that the health of people, animals, plants and the environment are interdependent.
- Preventative measures, such as improving water, sanitation and hygiene, as well as putting in place strong international and national regulatory frameworks to enforce controls on the sale and distribution of antibiotics, will go a long way in reducing AMR.
Conclusion
AMR is a global problem; therefore, international cooperation among nations is essential. Developing multi-stakeholder national action plans is key. Countries must also work together on strategies, information sharing and surveillance of antimicrobial use and resistance. However, fixing the AMR crisis is not just dependent on governments alone. Pharmaceutical companies, the chemical industry, regulators, municipal governments, human and animal healthcare professionals and students, scientists and the public all have a role to play.
How the legal debate over sub-categorisation among SCs has evolved over the years (Indian Express)
- 19 Jan 2024
Why is it in the News?
A seven-judge constitution bench headed by Chief Justice of India D Y Chandrachud will start to hear the case on the sub-categorisation among Scheduled Castes (SCs) from next week.
News Summary:
- The Union government has established a five-member committee of Secretaries, led by the Cabinet Secretary.
- The committee is tasked with evaluating and devising an equitable approach for the distribution of benefits, programs, and initiatives to the most disadvantaged communities among the 1,200 Scheduled Castes across the nation.
- These communities have often been overshadowed by relatively more advanced and dominant ones.
Key aspects of the committee include:
- Purpose: The committee will focus solely on strategies such as special initiatives and directing existing schemes toward marginalized communities.
- Mandate: It strictly refrains from delving into matters of reservation or determining the SC quota for employment and education, as these issues are considered sub-judice.
- Composition: The committee comprises Secretaries from the Home Ministry, Law Ministry, Tribal Affairs Ministry, and Social Justice Ministry.
About Schedule Caste (SC):
- Scheduled castes are those castes/races in the country that suffer from extreme social, educational and economic backwardness arising out of the age-old practice of untouchability and certain others on account of lack of infrastructure facilities and geographical isolation, and who need special consideration for safeguarding their interests and for their accelerated socio-economic development.
- These communities were notified as Scheduled Castes as per provisions contained in Clause 1 of Article 341 of the Constitution.
- Article 341 of the Indian Constitution grants the President the authority to declare certain castes and classes as Scheduled Castes in a state or union territory.
- It also empowers Parliament to include or exclude any caste or tribe from this list.
- Article 342 of the Constitution defines "Scheduled Castes" as castes, races, tribes, or parts of, or groups within such castes, races, or tribes as deemed under Article 341.
What is the Sub Categorisation of Caste?
- Sub Categorisation of Caste involves the additional classification of broader caste groups into sub-groups, considering various criteria.
- The call for Caste Sub-Categorization has emerged as certain castes and communities aim for acknowledgement and specific privileges based on distinctive characteristics, historical backgrounds, or socio-economic status.
- This approach aims to acknowledge and address the diversity within larger caste groups, targeting specific sub-groups perceived as socially and economically disadvantaged for more tailored benefits.
The Legal Aspect of Caste Sub-Categorization:
- Over the past two decades, several states, including Punjab, Bihar, and Tamil Nadu, have attempted to introduce state-level reservation laws to sub-categorize Scheduled Castes (SCs).
- However, all these plans are currently stuck in the courts as the Supreme Court forms a larger Constitution Bench to make a decision.
- E. V. Chinnaiah v State of Andhra Pradesh (2004): In this case, the apex court determined that once a community is included in the Presidential List for Scheduled Castes under Article 341 of the Constitution, they become part of a single, larger class of people for reservation purposes.
- The Bench emphasised that the state lacked the legislative power to create sub-classifications within this single class, as it would violate the Right to Equality.
- According to the Constitution, only Parliament can make these lists, and the President can notify them.
- In 2020, another Supreme Court bench, consisting of five members, in the Davinder Singh case unanimously declared that sub-categorization is constitutionally valid and suggested that a larger constitutional bench rule on the matter.
Sub-Categorization of Scheduled Castes (SCs):
- In the Telangana Assembly election, PM Modi pledged to address the demand for sub-categorization of Scheduled Castes (SCs).
- The Madiga community, the most populous among SC communities in Telangana, raised this concern, asserting that their representation share was being overshadowed by another SC community, the Malas.
- Since 1994, the Madiga community has advocated for the sub-categorization of SCs, leading to the establishment of the Justice P. Ramachandra Raju Commission in 1996 and a National Commission in 2007.
- Both commissions concluded that there are potential ways to resolve this issue.
- Currently, a seven-judge Constitution Bench of the Supreme Court is gearing up to commence hearings on this matter.
- The Supreme Court will determine whether sub-categorization among SCs and Scheduled Tribes is permissible.
- The focus of the hearing is on the constitutionality of sub-categorization among SCs for breaking up reservations in jobs and education set aside for them.
- Simultaneously, the government panel will explore "other ways to address their grievances.
Debate Over Sub-Categorization within SCs:
- Supporting Arguments: One key argument favouring the sub-categorization of Scheduled Castes (SCs) revolves around the existing disparities among these communities.
- The contention is that graded inequalities persist, with certain SC communities having limited access to essential facilities.
- Consequently, the more forward communities within the SCs tend to consistently benefit, potentially sidelining the more backward ones.
- To address this, proponents argue for sub-categorization, providing separate reservations for the more disadvantaged communities within the broader SC category.
- Opposing Perspectives: Arguments against sub-categorization assert that allocating separate reservations within these categories might not effectively tackle the root cause of the issue.
- Critics argue that the primary aim of sub-categorization was to ensure representation at all levels.
- However, even if reserved positions are available at higher levels, the most backward SCs may lack sufficient candidates to be considered.
- Therefore, it is suggested that existing government schemes and benefits should first reach these underserved sections before contemplating sub-categorization.
- Additionally, legal experts emphasize the importance of concrete data to support sub-categorization.
- They highlight the need for a comprehensive caste census, encompassing each community and sub-community along with their socio-economic data.
- According to these experts, a caste census provides the empirical basis required for the government to justify sub-categorization, determining the specific additional share of benefits needed by each community.
What is the Union Government’s Stand?
- In 2005, the Union government explored the legal aspects of sub-categorization within Scheduled Castes (SCs).
- The then Attorney General of India suggested that this could be a viable option only if unquestionable evidence indicated its necessity.
- During this period, both the National Commission for Scheduled Castes (NCSC) and the National Commission for Scheduled Tribes (NCST) expressed the view that a constitutional amendment might not be essential.
- They pointed out that Article 16(4) of the Constitution already empowered states to formulate special laws for any backward classes deemed under-represented.
- Furthermore, they emphasized the urgency of ensuring the prioritized implementation of existing schemes and benefits rather than merely allocating a quota within the existing quota.
Govt disburses Rs 4,415 crore under PLI scheme; low job creation a concern (Indian Express)
- 18 Jan 2024
Why is it in the News?
Recently, the central government has disbursed an incentive amount of Rs 4,415 crore under its flagship Production-Linked Incentive (PLI) schemes for as many as eight sectors.
News Summary:
- The central government, through its flagship Production-Linked Incentive (PLI) schemes, has disbursed an incentive amount of Rs 4,415 crore until October in the current fiscal year across eight sectors.
- In the fiscal year 2023-24, Rs 1,515 crore has been disbursed, compared to Rs 2,900 crore in 2022-23 when payments under the scheme commenced.
- The government aims to achieve a disbursal target of Rs 11,000 crore by the end of this fiscal year.
- According to official statements, the employment generation, both direct and indirect, has exceeded 6.78 lakh.
- As of now, 746 applications have received approval in 14 sectors, with an expected investment exceeding Rs 3 lakh crore.
- Notably, 176 MSMEs are among the beneficiaries of the PLI schemes, particularly in sectors like pharma and telecom.
What is the Production Linked Incentive Scheme (PLI)?
- Production-linked incentive (PLI) schemes were first introduced in India in March 2020, mainly targeting three industries – Mobile Manufacturing and Electric Components, Pharmaceutical and Medical Device Manufacturing.
- The PLI concept has since expanded to 14 sectors to boost India’s manufacturing capabilities and encourage export-oriented production.
- The PLI schemes aim to develop capacities in the local supply chain, introduce new downstream operations, and incentivise investments into high-tech production.
- Mechanism: Under the PLI scheme, both domestic and foreign companies receive financial incentives for manufacturing within India, with rewards calculated as a percentage of their revenue over up to five years.
- Targeted Sectors: The 14 sectors covered by the scheme include mobile manufacturing, medical devices, automobiles and auto components, pharmaceuticals, drugs, speciality steel, telecom & networking products, electronic products, white goods (ACs and LEDs), food products, textile products, solar PV modules, advanced chemistry cell (ACC) batteries, and drones and drone components.
- Incentive Structure: Incentives are determined based on incremental sales, with certain sectors like advanced chemistry cell batteries, textile products, and the drone industry having calculations considering sales, performance, and local value addition over five years.
- Emphasizing research and development (R&D) investments aims to align the industry with global trends and enhance competitiveness in the international market.
Performance of the PLI Schemes:
- Positive Export Growth: India has experienced a substantial boost in mobile handset exports, doubling from Rs 45,000 crore in FY22 compared to FY21, and further estimating exports to reach Rs 90,000 crore in FY23.
- Additionally, in the pharmaceutical industry, India has successfully manufactured 35 active pharmaceutical ingredients (APIs), reducing reliance on imports, particularly from countries like China.
- Overall, the PLI schemes have contributed to exports exceeding Rs 3.2 lakh crore, notably driven by sectors such as electronics, pharmaceuticals, food processing, and telecom.
- Challenges in Implementation: Despite positive outcomes, the implementation of PLI schemes has faced sluggish progress.
- In the fiscal year 2021-22, the government disbursed a mere Rs 10 crore in incentive payouts for mobile handsets, white goods (ACs and LEDs), and the food processing industries combined.
- However, this figure increased to Rs 2,874 crore in 2022-23, according to DPIIT.
- During the initial two years of the seven-year initiative, only 1.46 per cent of the total Rs 1.97 lakh crore incentive outlay was disbursed.
- Some major industries are yet to fully embrace the scheme or initiate significant activities under it.
- Limited Job Creation: The slow start in implementation has resulted in a lower-than-projected number of jobs created.
- While the PLIs were anticipated to generate 6 million new jobs over seven years, the actual figure stands at approximately 300,000 jobs, representing only 5 per cent of the total projection, between 2020 and early 2023.
Challenges in the PLI Scheme:
- Assembly Emphasis Over Value Addition: The subsidy structure within the Mobile and allied Component Manufacturing segment of the PLI scheme primarily incentivizes the completion of phone assembly in India, neglecting the consideration of the actual value added through manufacturing processes.
- Consequently, many mobile phone components are still imported, encompassing critical elements such as display screens, cameras, batteries, and printed circuit boards.
- WTO Constraints and Limited Value Addition: India faces constraints imposed by WTO rules, preventing the tying of PLI subsidies to domestic value addition.
- While India aspires to produce chips domestically, the intricate nature of chip manufacturing and the inability to mandate significant domestic value addition present challenges to realising this goal.
- Ambiguity in Incentive Disbursement: Despite the establishment of an Empowered Committee to oversee fund disbursement across various sectors, the process lacks transparency and clear criteria.
- The absence of well-defined parameters for ministries and departments to determine incentive allocations raises concerns about the fairness and effectiveness of the scheme.
- Absence of a Centralized Database: A notable deficiency in the PLI scheme is the lack of a centralized database that comprehensively captures critical information such as increased production, exports, and the creation of new jobs.
- This information gap complicates the evaluation process, introducing administrative complexities.
- The resulting ambiguity impacts transparency, potentially leading to mischief, thereby weakening the overall policy structure.
Way Forward
The government should evaluate the efficacy of the PLI scheme, taking into account factors such as job creation, cost per job, and the identified challenges contributing to its limited success. Before expanding the scheme to encompass additional sectors, a thorough understanding of its limitations is essential, along with proactive measures to address the underlying issues.
Supreme Court to hear Thackeray group's plea against speaker’s decision refusing to disqualify MLAs (The Hindu)
- 17 Jan 2024
Why is it in the News?
The Maharashtra Assembly Speaker has refused to disqualify 40 MLAs of the Eknath Shinde faction after recognising it as the real Shiv Sena.
What happened in Maharashtra?
- In June 2022, a faction of the Shiv Sena headed by Eknath Shinde moved with 37 of the 55 MLAs and claimed to be the real Shiv Sena. It appointed Bharat Gogawale as its whip.
- However, the UBT faction claimed that they were the original political party and that Sunil Prabhu of its faction would continue to be the whip.
- The Speaker has now recognised the Eknath Shinde faction as the real Shiv Sena and held the appointment of whip by this group as valid.
- This was based on the strength of members of the Shinde faction and the party’s 1999 constitution.
- The Speaker based on this ruling refused to disqualify 40 MLAs of the Shinde faction.
- He also refused to disqualify 14 MLAs of the UBT group as the whip instructions from Bharat Gogawale could not be physically served on them.
What is Defection?
- Defection refers to the act of a legislator shifting allegiance from one political party to another, embodying elements of revolt, dissent, and rebellion by an individual or a party.
- In the political context, it manifests as a scenario wherein a member of a political party relinquishes their allegiance and aligns with a different political entity.
- Historically termed as 'floor crossing,' this phenomenon finds its roots in the British House of Commons, symbolised by a legislator physically changing sides from the Government to the Opposition or vice versa.
- In India, the defections of legislators during the 1960s and 70s from their parent parties created political instability in many States, bringing down elected governments.
- Therefore, to ensure the stability of elected governments, the 52nd constitutional amendment introduced the ‘anti-defection’ law through the Tenth Schedule in 1985.
About the Anti-Defection Law:
- The Tenth Schedule of the Constitution, also known as the anti-defection law, was added to prevent political defections.
- The rationale for curbing such defections was that they undermined the foundations and principles of Indian democracy.
- The law disqualifies legislators for violating the will of their political party.
- In the 37 years, the law has been in place, while individual defections may have reduced, en masse defections continue.
- However, the presence of the Anti-Defection Law has also undermined democracy by inhibiting legislators from exercising their choice and ability to function independently, and restricted decision-making in legislatures to a few who control political parties.
Features of the Anti-Defection Law:
- Disqualification on grounds of defection: A legislator belonging to a political party will be disqualified if he:
- (i) voluntarily give up his party membership, or
- (ii) votes/abstains to vote in the House contrary to the direction issued by his political party.
- A member is not disqualified if he has taken prior permission of his party, or if the voting or abstention is condoned by the party within 15 days.
- Independent members will be disqualified if they join a political party after getting elected to the House.
- Nominated members will be disqualified if they join any political party six months after getting nominated.
- Exemptions in cases of merger: Members are exempted from such disqualification when at least two-thirds of the original political party merges with another political party. Further:
- (i) The members must have become members of the party they have merged with/into, or
- (ii) they should have not accepted the merger and chose to function as a separate group.
- Decision-making authority: The decision to disqualify a member from the House rests with the Chairman/Speaker of the House.
- In the Kihoto Hollohan case (1993), the Supreme Court held that the presiding officer, while deciding a question under the Tenth Schedule, functions as a tribunal.
- Hence, his decision like that of any other tribunal, is subject to judicial review on the grounds of mala fides, perversity, etc.
Advantages of Anti-Defection Law:
- Enhances political stability by curbing legislators' inclination to switch parties.
- Facilitates democratic realignment through party mergers within the legislature.
- Mitigates corruption and reduces non-developmental expenditures associated with irregular elections.
- Offers constitutional recognition to the existence of political parties, marking a significant milestone.
Criticism of the Anti-Defection Law:
- Limited Independence: The ADL restricts legislators from acting independently, contradicting the essence of parliamentary democracy by penalizing independent actions.
- Party Alignment Constraints: Legislators are bound by the official stance of their party on any issue, limiting their flexibility and autonomy.
- Reduced Constituency Accountability: By preventing parliamentarians from switching parties, the ADL diminishes accountability to both the Parliament and the constituents.
- Defence Through Splitting: The law allows a defence against disqualification through party splits, where one-third of legislators moving with a breakaway group avoids disqualification.
- Misinterpretation Challenges: The ADL is prone to misinterpretation, as seen in instances like Maharashtra, highlighting the absence of authoritative legal interpretations.
- Ambiguity in Splits: Recent occurrences show opposition members breaking away in small groups to join the ruling party, raising questions about disqualification when more than 2/3rd of the opposition defects.
- Attraction of Office: Critics argue that ideological defection is rare in India, with legislators often defecting due to the lure of office rather than ideological shifts.
Recommendations from Various Committees on ADL:
- Dinesh Goswami Committee on Electoral Reforms (1990): Disqualification should be confined to cases where a member voluntarily relinquishes party membership.
- Abstention from voting or voting against the party whip in a confidence or no-confidence motion should warrant disqualification.
- The President/Governor, advised by the Election Commission, should decide disqualification matters.
- Law Commission (170th Report, 1999): Eliminate provisions exempting splits and mergers from disqualification.
- Treat pre-poll electoral fronts as political parties under the anti-defection law.
- Political parties should issue whips only in situations jeopardizing the government.
- Constitution Review Commission (2002): Bar defectors from holding public office or any remunerative political post for the remaining term.
- Consider the vote cast by a defector to topple a government as invalid.
- Election Commission: Decisions under the Tenth Schedule should be made by the President/Governor, guided by the binding advice of the Election Commission.
Important Judgment Regarding Anti-Defection Law:
- Kihoto Hollohan Case: In the Kihoto Hollohan case, the Supreme Court affirmed the overall validity of the Anti-Defection Law, except for the aspect related to judicial review, which was deemed unconstitutional.
- Shri Rajesh Verma v. Shri Mohammad Shahid Akhlaque Case: The court, in the Shri Rajesh Verma v. Shri Mohammad Shahid Akhlaque case, established that publicly opposing one's original party and supporting another party constitutes a de facto resignation from the original party.
- Mannadi Satyanarayan Reddy v Andhra Pradesh Legislative Assembly Case: In the Mannadi Satyanarayan Reddy v Andhra Pradesh Legislative Assembly case, the court addressed the jurisdiction of the Speaker or Presiding Officers in deciding questions related to defection.
- The court clarified that there is no provision in the Tenth Schedule limiting the Speaker's exercise of jurisdiction to decide such questions.
What are the reforms needed?
- The Supreme Court in Sadiq Ali versus Election Commission of India (1971), laid down the three-test formula for determining which faction is to be recognised as the original political party by the Election Commission.
- These are the aims and objects of the party;
- Its affairs as per the party’s constitution reflect inner party democracy; and
- The majority in the legislative and organisation wings.
- The first test is subject to competing claims by rival groups.
- But it is the lack of inner party democracy that results in most of these defections.
The Election Commission in February 2023, recognised the Eknath Shinde faction as the real Shiv Sena, solely based on votes polled by legislators supporting Eknath Shinde in the Maharashtra Assembly elections of 2019. An authoritative Supreme Court judgment in these matters and the setting up of an independent tribunal to decide on the disqualification of members will reduce the ambiguities surrounding the Tenth Schedule. The real reform required is institutionalising internal democracy through regular inner-party elections in our political parties with strict monitoring by the Election Commission.
India’s multidimensional poverty rate is down to 11.28% in 2022-23 from 29.17% in 2013-14 (Indian Express)
- 16 Jan 2024
Why is it in the News?
The share of India’s population living in multidimensional poverty is estimated to have fallen to 11.28 per cent in 2022-23 from 29.17 per cent in 2013-14, according to a discussion paper released by NITI Aayog on Monday.
Context:
- According to the NITI Aayog’s discussion paper, multidimensional poverty in India declined from 29.17% in 2013-14 to 11.28% in 2022-23, with about 24.82 crore people moving out of this bracket during this period.
- The national multidimensional poverty measures simultaneous deprivations across three equally weighted dimensions of health, education, and standard of living that are represented by 12 sustainable development goals-aligned indicators, according to NITI Aayog.
Key Highlights of the MPI in India Since 2005-2006:
- Overall Decline in Multidimensional Poverty: As per the NITI Aayog discussion paper, India's multidimensional poverty has decreased from 29.17% in 2013-14 to 11.28% in 2022-23.
- The trend signifies the upliftment of 24.82 crore people from this bracket during the specified period.
- State-wise Decline: "Uttar Pradesh registered the largest decline in the number of poor with 5.94 crore people escaping multidimensional poverty during the last nine years followed by:
- Bihar at 3.77 crore
- Madhya Pradesh at 2.30 crore and
- Rajasthan at 1.87 crore.
- NITI Aayog's approach to measuring multidimensional poverty involved considering 12 indicators aligned with the sustainable development goals.
- These indicators encompass crucial aspects such as nutrition, child and adolescent mortality rates, maternal health, educational attainment, access to basic amenities like clean cooking fuel, sanitation, safe drinking water, electricity, and housing, as well as possession of assets and bank accounts.
- "Significant initiatives covering all dimensions of poverty have led to 24.82 crore individuals escaping multidimensional poverty in the last 9 years.
- As a result, India is likely to achieve its SDG target of halving multidimensional poverty well before 2030.
- The report emphasized impactful programs, such as Poshan Abhiyan and Anemia Mukt Bharat, which have markedly improved accessibility to healthcare services, significantly reducing deprivation.
- Managing one of the globe's largest food security initiatives, the targeted Public Distribution System (PDS) under the National Food Security Act encompasses 81.35 crore beneficiaries, ensuring the distribution of food grains to both rural and urban populations.
- "The government's persistent dedication and resolute commitment to enhancing the lives of the most vulnerable and deprived have been instrumental in this accomplishment.
What is Multidimensional Poverty?
- Poverty can have several negative effects at once. Some of these include inadequate nutrition or health, a lack of power or clean water, low-quality employment, or insufficient education.
- The true nature of poverty cannot be fully captured by concentrating only on one aspect, such as income.
- Multidimensional Poverty, as a metric, goes beyond income or consumption alone.
- It encompasses deprivations in education and access to essential infrastructure, considering factors beyond the monetary aspect.
- The measurement is conducted at the $2.15 international poverty line, as defined by the World Bank (in 2017 purchasing power parity terms), ensuring a comprehensive assessment of poverty that extends beyond monetary value.
What is the National Multidimensional Poverty Index (MPI)?
- Prepared By: NITI Aayog
- Objective: The aim is to gauge poverty across various dimensions, complementing existing statistics based on per capita consumption expenditure.
- Purpose of the National MPI: Provides an enhanced, high-level overview of poverty at the national level.
- Acts as a complement to monetary poverty measures.
- Furnishes information crucial for shaping effective policy initiatives.
- The MPI is founded on the individual or household profile of overlapping or "joint" deprivations experienced by each person.
- Key Features: Serves as an incentive for leaving no one behind and prioritizing the most marginalized.
- Adaptable to the national context and maintains transparency.
- Credible Methodology: India's national MPI employs a methodology developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP), aligning with the globally accepted and robust standards used in the publication of the Global Multidimensional Poverty Index.
- Three Macro Dimensions: The National MPI is structured around three macro dimensions, each with specific indicators and weights, outlined below –
Significance of the MPI:
- Crucial Public Policy Instrument: The establishment of India's National MPI introduces a pivotal public policy instrument that monitors multidimensional poverty, facilitating evidence-based and targeted interventions to ensure inclusivity and prevent any individuals from being left behind.
- Assesses the Efficacy of Multi-Sectoral Interventions: It offers valuable insights into the effectiveness of multi-sectoral interventions aimed at addressing diverse facets of poverty.
- Encompasses Diverse Deprivations: Notably, functioning as a metric for multidimensional poverty, it captures the myriad and simultaneous deprivations experienced by households.
- Comprehensive Analysis Across All Tiers: This report conducts a thorough analysis of the headcount ratio and intensity of multidimensional poverty, encompassing national, State/UT, and district levels.
Conclusion
The National MPI in India has been conceived as an all-encompassing tool, expediting purpose-driven initiatives to gauge and systematically eliminate multidimensional poverty. The dimensions of the index have demonstrated their efficacy in identifying and facilitating precise policy interventions aimed at achieving targeted goals.
NITI Aayog
- NITI Aayog, established on January 1, 2015, succeeded the Planning Commission with a distinctive focus on a 'Bottom-Up' approach.
- Embracing the vision of 'Maximum Governance, Minimum Government' and echoing the ethos of 'Cooperative Federalism,' NITI Aayog serves as a dynamic institution facilitating collaborative decision-making.
Functional Components: NITI Aayog operates through two principal hubs-
- Team India Hub: This hub is a crucial interface, fostering effective communication and collaboration between the states and the central government.
- It plays a pivotal role in aligning the diverse interests of different regions in the spirit of cooperative federalism.
- Knowledge and Innovation Hub: This hub is dedicated to enhancing the intellectual capacity of NITI Aayog. It functions as a think tank, driving innovative ideas and knowledge creation to inform policy decisions and contribute to the overall development agenda.
INDICES of NITI Aayog:
- Composite Water Management Index
- District Hospital Index
- Export Preparedness Index
- Global Innovation Index
- India Innovation Index
- Multidimensional Poverty Index
- School Education Quality Index
- SDG India Index
- State Energy Index
- State Health Index
Muizzu asks India to withdraw troops by March 15: Why are Indian soldiers in Maldives? (Indian Express)
- 15 Jan 2024
Why is it in the News?
Maldivian President Mohamed Muizzu has asked India to withdraw its military personnel from his country by March 15, a senior official said in Male on Sunday, nearly two months after Maldives sought their removal.
Context:
- Maldives President Mohamed Muizzu has asked India to withdraw its military personnel from the Indian Ocean archipelago nation by mid-March.
- A high-level core group, set by both nations, to negotiate the withdrawal of troops held its first meeting at the Foreign Ministry in Male on Sunday with Indian High Commissioner Munu Mahawar present.
- President Muizzu had, during his presidential campaign, asserted that he would accomplish the removal of Indian troops from the Maldives, and had made a formal request to India to withdraw its military personnel soon after assuming office.
How many Indian troops are in the Maldives?
- India does not have a large military presence in the Maldives contrary to claims by “India Out” protesters that thousands of Indian troops were stationed.
- There are only 88 Indian military personnel in the Maldives, according to the latest government figures.
- They have been based there for more than a decade.
What are Indian troops doing in the Maldives?
- India and Maldives have been allies and defence cooperation has been a crucial part of the relationship.
- Indian soldiers have been training Maldivian troops in combat and reconnaissance and helping in rescue operations.
- According to the terms of the bilateral agreement between the two nations, Indian officers were sent to train the Maldivian National Defence Force.
- The Indian troops are unarmed and mostly assist the Maldivian government with search and evacuation operations, (and) medical evacuation operations.
- From January 2019 until late 2023, 495 lives have been saved because of medical evacuations and special training conducted by the Indian personnel in the Maldives with the help of two helicopters gifted by India.
- Also, at least 50 joint search and rescue missions have been conducted.
Have Indian troops conducted military operationss in the Maldives?
- Yes, Indian troops conducted one military operation in the Maldives in November 1998 called “Operation Cactus”.
- A group of Maldivians led by businessman Abdullah Luthufi attempted a coup to overthrow the government of Maumoon Abdul Gayoom.
- They had the backing of Sri Lanka’s People’s Liberation Organisation of Tamil Eelam (PLOTE), a Tamil secessionist group.
- At least 80 mercenaries of the group entered Male on 3 November 1988 on board a hijacked Sri Lankan fighter.
- They captured key infrastructure – airports, ports, television and radio stations.
- While Gayoom was escorted to a safe house, the mercenaries took several hostages including ministers.
- As the situation escalated in the Maldives, India’s chief of army staff General VN Sharma got a call from the foreign service officer at the Prime Minister’s Office.
- He asked if the Indian army could help as there was an emergency in the Maldives.
- Indis agreed and three armed forces – the army, navy, and air force came to the neighbour's rescue.
- Two hostages were among 19 killed during Operation Cactus.
- The rest of the casualties were mercenaries.
- India, thus, helped in thwarting a major political crisis in the Indian Ocean Region.
Anti-India sentiments among a section of the Maldives’ population:
- In 2020, the “India Out” campaign started as on-ground protests in the Maldives which later spread widely across social media platforms.
- By the second half of 2021, it had developed into an active and visible political campaign.
- The supporters of the campaign had claimed that it had been started to protest against what they called Indian military presence in the country.
- They had actively targeted all aspects of India-Maldives bilateral relations.
- During the International Yoga Day celebration in 2022, organised by the Indian High Commission in the capital Male which was held at the Galolhu Stadium was disrupted by a group around 150 of protesters.
- The mob attacked participants practising yoga and vandalised property.
What are the major factors behind the fear and suspicion?
- The controversy started after two Dhruv Advanced Light Helicopters were given by India to the Maldives in 2010 and 2015.
- These were used for search and rescue operations, maritime weather surveillance and for airlifting patients.
- However, some in Progressive Party of Maldives (PPM) hinted that India was attempting to create a military presence in Maldives as these were military choppers.
- The other causes of concern are the perceived lack of transparency in dealings with India under the rule of Ibrahim Mohamed Solih and the reliance on India for maritime security.
- UTF Harbour Project: Under this agreement, India was to develop and maintain a coastguard harbour and dockyard at Uthuru Thilafalhu, a strategically located atoll near the capital Malé.
- Sections of Maldivian media had speculated that the UTF project would be turned into an Indian naval base.
India-Maldives Bilateral Relations:
- India and Maldives share strong ties encompassing ethnic, linguistic, cultural, religious, and commercial dimensions, fostering close and multi-faceted relations.
- The historical trajectory of their relationship is marked by significant milestones:
- Diplomatic Relations: India, recognizing Maldives' independence in 1965, established diplomatic ties promptly.
- During the 1988 coup attempt, India's rapid intervention under Operation Cactus solidified trust and laid the groundwork for enduring bilateral relations.
- Timely assistance during natural calamities, such as the 2004 Tsunami and the 2014 water crisis, showcased India's commitment to the well-being of the Maldives.
- The Swift dispatch of medical aid in 2020 during a measles outbreak demonstrated India's continuous support.
- Security and Defence Cooperation: A comprehensive Defence Action Plan was signed in April 2016, consolidating defence collaboration.
- India plays a crucial role in training the Maldivian National Defence Force, meeting 70% of their training needs over the last decade.
- Annual Defence Cooperation Dialogues, initiated in July 2016, underscore the strategic partnership.
- Development Cooperation: India's significant developmental contributions include projects like:
- Indira Gandhi Memorial Hospital
- Maldives Institute of Technical Education (now Maldives Polytechnic)
- India-Maldives Faculty of Hospitality & Tourism Studies
- Technology Adoption Programme in the Education Sector
- National College for Police and Law Enforcement
- Infrastructure & Connectivity Projects under Exim Bank Line of Credit ($800 million)
- Economic and Trade Relations: India emerged as Maldives' second-largest trade partner in 2022, with bilateral trade totalling $501.82 million.
- In November 2022, India provided financial assistance of US$ 100 million to address economic challenges.
- The RBI-Maldives Monetary Authority Currency Swap Agreement in December 2022 further strengthened economic ties.
- Tourism and Indian Community: Indians constitute the largest group of tourists in the Maldives, with over 200,000 visitors in 2023.
- The Indian community, the second-largest expatriate group, contributes significantly to various sectors, with approximately 22,000 individuals.
- Notably, 25% of doctors and teachers in the Maldives are Indian nationals.
- The India-Maldives relationship continues to evolve, reflecting shared values, mutual interests, and a commitment to fostering prosperity and stability in the region.
What does President Muizzu want?
- Muizzu is a pro-China leader and wants Indian troops to leave the country.
- This was among the pre-poll promises he made during his campaign.
- His main theme was about an alleged threat to the Maldives’ sovereignty by some Indian military personnel on an island, part of his party’s years-long “India out” strategy.
- After his just-concluded visit to China, President Muizzu, announced plans to reduce the country’s dependency on India, including securing imports of essential food commodities and medicine and consumables from other countries.
- Maldives is also reportedly reviewing more than 100 bilateral agreements with India signed by the previous government.
Way Forward
The trajectory of India-Maldives relations is shaped by evolving geopolitical dynamics, leadership shifts, and shared regional interests. India's steadfast commitment to the Maldives involves going beyond customary measures to foster a comprehensive partnership. Any abrupt actions jeopardizing this carefully cultivated alliance would potentially inflict more harm on the Maldives than on India. Recognizing and proactively addressing these challenges, both nations can skillfully navigate the intricacies of their relationship, paving the way for a more robust, resilient, and mutually advantageous partnership in the future.
To combat climate challenges, the Finance Commission needs to step up (Indian Express)
- 13 Jan 2024
Why is it in the News?
As the union government constituted the 16th Finance Commission (FC), experts recommend including variables related to climate change, beyond forest cover.
Background:
- In the contemporary era, India has gained prominence as a key participant in global initiatives aimed at addressing climate change and promoting increased forest coverage.
- This engagement has not only positively impacted environmental sustainability but has also strengthened the adaptability of communities and ecosystems.
- In addressing the hurdles presented by climate change, the concept of fiscal federalism, with a specific focus on the role of the Finance Commission (FC), has emerged as a crucial factor in encouraging states to prioritize conservation endeavours.
Role of the Finance Commission in Fiscal Federalism and Forest Conservation:
- Promoting Conservation Initiatives: The Finance Commission's role has been pivotal in actively promoting and incentivizing state-led efforts towards forest conservation.
- Through dedicated fund allocations, the Commission acknowledges the inherent connection between vibrant forests, sustainable ecosystems, and the overall national well-being.
- Financial backing serves as a catalyst, motivating states to prioritize conservation endeavours while safeguarding their economic interests.
- Balancing Revenue Capacities and Expenditure Needs: Beyond their biodiversity significance, forest resources represent valuable economic assets for states.
- The Finance Commission recognizes that preserving existing forests and augmenting forest cover density directly impact the revenue capacities and expenditure requirements of states.
- Finding an equilibrium between economically exploiting forest resources and ensuring their conservation becomes essential for achieving both environmental sustainability and economic prosperity.
Previous Instances of Finance Commission Initiatives in Forest Conservation:
- The Finance Commission’s formulae for tax sharing have evolved since the first one, constituted in 1951, for the period 1952-1957.
- Since then, FCs have been constituted at intervals every five years with the 16th one currently being implemented.
- Initially, the formula for distributing tax among states respectively, known as horizontal devolution, gave significant weightage, around 80% to 90%, to the population of the states, meaning states with higher populations were given a higher share of the tax.
- Then, the 7th FC drastically reduced the weightage assigned to the population to 25% and increased the weightage given to equity, in which income, land area, and sometimes infrastructure and fiscal discipline too, played a significant role in determining how much each state would receive from the central government.
- Similarly, there have been changes in determining the funds allocation for environmental initiatives.
- The 12th FC (2005-10) dedicated Rs 1,000 crore for forest conservation across states.
- The 13th FC (2010-15) enhanced this allocation to Rs 5,000 crore.
- However, it is important to note that these grants comprised less than 0.05% of the total funds transferred from the central government to the states.
- Ecological Fiscal Transfers (EFT) – where public revenue is shared based on ecological indicators – were introduced in 2015 with the 14th FC which incorporated forest cover as a criterion for tax devolution, allocating it a weightage of 7.5% in the distribution formula for the tax-transfer during the period 2015-16 to 2019-2020.
- The 14th FC (2015 to 2020) considered several recommendations and replaced the grants with a more prominent placement for the forestry sector — it dedicated 7.5 per cent of the divisible central tax pool to ecology and forests.
- The allocation was based on the forest cover in each state.
- The 14th FC (2015 to 2020) considered several recommendations and replaced the grants with a more prominent placement for the forestry sector — it dedicated 7.5 per cent of the divisible central tax pool to ecology and forests.
- The 15th FC (2021–22 to 2025–26) extended this share to 10 per cent.
- Having mobilised and distributed over Rs 4.5 lakh crore to states against not only their forest cover but also forest density, the 15th FC effectively became the largest payment for ecosystem services (PES) systems in the world.
- The Commission also gave grants to combat air pollution.
- The fiscal transfers that are earmarked for a specific department or programme have traditionally been much smaller than fiscal transfers to the general state budget.
- For example, the specific-purpose grants for forestry under the 12th and 13th FC were a fraction of the general-purpose transfers (those not assigned to specific purposes) that followed under the 14th and 15th FC.
- The formula-based finance commission transfers are unconditional and are not tied to the Department of Forest or Ecology.
- Whether there is a need for conditions to ensure the funds are invested in the environment, at least in principle, the enticement of receiving larger general-purpose transfers should motivate states to invest in forest protection.
- Since 2005, the central government has been sharing annual forest grants with states.
- These grants serve as both compensation and incentive mechanisms.
- However, it remains unclear to what extent these grants have contributed to the increased forest cover in the states.
Addressing Complexities in the Intersection of Fiscal Federalism and Environmental Conservation:
- Harmonizing Conservation Costs and Economic Imperatives: Balancing conservation expenses with economic necessities becomes challenging, particularly for states grappling with financial constraints.
- The substantial opportunity costs linked with forest preservation may strain state budgets, presenting a hurdle in garnering widespread commitment.
- Innovating Financing Models for Conservation: Traditional financing models for conservation may prove inadequate or unsustainable in the long term.
- Overreliance on grants can create dependencies, hindering the development of self-sustaining mechanisms for conservation.
- Addressing Climate-Induced Economic Vulnerabilities: The repercussions of climate change pose considerable threats to economic stability, especially for states heavily dependent on climate-sensitive sectors.
- Unpredictable weather patterns, floods, and forest fires can intensify existing vulnerabilities.
- Strategically Allocating Resources: The Finance Commission encounters the intricate task of strategically allocating resources to maximize both environmental and economic advantages.
- Ensuring targeted funding for critical conservation initiatives while aligning with state development objectives demands a nuanced approach.
- Integrating Environmental Goals with Fiscal Capacity: States may grapple with aligning their environmental objectives with fiscal capabilities, potentially creating a gap between aspirations and implementation.
- Ensuring Equitable Participation: A potential risk exists where states with greater fiscal capacities may disproportionately benefit from conservation incentives, potentially exacerbating existing economic disparities.
The Potential Role of 16th Finance Commission's:
- Integrating Climate Considerations into Tax Devolution Framework: The 16th Finance Commission has the potential to bring about a transformative shift by integrating climate vulnerability and emission intensity as pivotal factors in the tax devolution formula.
- This alignment directly supports India's Nationally Determined Contributions (NDCs) under the Paris Agreement, providing states with robust fiscal incentives to actively contribute to national climate goals.
- Implementing Performance-Based Grants for Key Sectors: Recognizing the instrumental role of specific sectors in achieving NDCs and Sustainable Development Goals (SDGs), the 16th Finance Commission could contemplate introducing performance-based grants.
- These grants, which are specifically designed to help areas like renewable energy, sustainable land and forest management, and air pollution efforts, provide states with focused financial assistance and motivate them to take proactive steps toward change.
- Addressing Emission Reduction Challenges: Prioritizing emission reduction, the commission can focus on decarbonizing critical sectors like energy and transport.
- This entails incentivizing states to embrace clean energy practices and fostering innovation to tackle persistent issues like crop burning.
- Through strategic fund allocation, the 16th Finance Commission can drive tangible progress in mitigating emission sources.
- Funding Innovations for Ecological Challenges: Allocating funds to innovative solutions for ecological challenges induced by climate change becomes a crucial role for the 16th Finance Commission.
- Whether supporting mangrove restoration to counter weather vagaries or addressing the escalating incidents of forest fires, the commission can catalyze research, development, and implementation of sustainable strategies.
- Utilizing Scientific Data for Informed Decision-Making: Leveraging advanced technology, the 16th Finance Commission can utilize scientific data, pollution inventories, and remote sensing to assess state vulnerabilities and mitigation efforts.
- This data-driven approach ensures that fiscal decisions are rooted in empirical evidence, enabling the commission to design an effective and equitable performance-based system for fund allocation.
- Transforming into a Leader in Climate Readiness: Going beyond its traditional fiscal role, the 16th Finance Commission has the potential to evolve into a leader in India's climate readiness.
- This transformation involves active participation in designing and implementing a fiscal blueprint that balances economic growth with environmental imperatives, guiding policies that meet present needs without compromising the ability of future generations to meet their own.
Conclusion
In the current juncture where India grapples with the intertwined paths of economic advancement and environmental safeguarding, the Finance Commission's significance in fiscal federalism cannot be overstated.
The 16th Finance Commission, poised to influence tax distribution principles and stimulate climate-conscious endeavours, emerges as a pivotal player in fostering a harmonious equilibrium between economic progress and ecological conservation.
By adopting strategic measures and pioneering innovative strategies, the Finance Commission has the potential to evolve into a formidable catalyst in India's pursuit of climate resilience.
Why has South Africa taken Israel to the International Court of Justice? (Indian Express)
- 12 Jan 2024
Why is it in the News?
What is the case before the World Court?
- South Africa brought a case against Israel to the ICJ on December 29, under the UN’s 1948 Genocide Convention.
- South Africa argued that Israel, in its ongoing Gaza assault, has transgressed from the provisions of Article 2 of the Convention.
- This article defines the term “genocide” to mean “acts committed with intent to destroy, wholly or partly, a national, ethnic, racial, or religious group”.
- The ICJ will eventually decide whether Israel is committing genocide or not — this may take years.
- But first, it will decide whether it has jurisdiction on this matter and whether the alleged acts fall under the 1948 Convention.
- South Africa has also sought interim relief for the Palestinians and asked the ICJ to order Israel to immediately suspend all military operations in Gaza, as an interim measure.
- While the court’s rulings are legally binding, it has no way to enforce them.
- Nonetheless, its opinions carry weight with the UN and other international institutions.
What is the International Court of Justice (ICJ)?
- The ICJ is the principal judicial organ of the United Nations that settles legal disputes between States in accordance with international law.
- Established in 1945 through the United Nations charter, the ICJ commenced its operations in April 1946.
- It is located at the Peace Palace in The Hague, Netherlands, distinguishing it from the other six principal UN organs situated in New York, USA.
- The ICJ specializes in settling legal disputes between states and providing advisory opinions on legal questions referred to by authorized United Nations organs and specialized agencies, all in accordance with international law.
Structure:
- Comprising 15 judges, elected for nine-year terms by the United Nations General Assembly and the Security Council, the Court ensures a simultaneous but separate voting process by these organs.
- To be elected, a candidate must secure an absolute majority of votes in both bodies.
- To maintain continuity, one-third of the Court is elected every three years, with judges eligible for re-election.
- The Court is supported by a Registry, its administrative organ, and operates in English and French as its official languages.
Regional Distribution of Judges:
- The 15 judges are distributed across regions as follows:
- Three from Africa.
- Two from Latin America and the Caribbean.
- Three from Asia.
- Five from Western Europe and other states.
- Two from Eastern Europe.
Indian Judges at ICJ:
- Four Indians have been members of the ICJ so far.
- Justice Dalveer Bhandari, former judge of the Supreme Court, has been serving at the ICJ since 2012.
Independence of Judges:
- In contrast to other international organizations' organs, the ICJ is unique in its composition, as it is not made up of government representatives.
- The Court's members are independent judges who, prior to assuming their duties, make a solemn declaration in open court, pledging to exercise their powers impartially and conscientiously.
Jurisdiction and Operations:
- The ICJ functions as a global court with a dual jurisdiction—addressing legal disputes between states submitted by them (contentious cases) and providing advisory opinions on legal questions referred to it by United Nations organs and specialized agencies (advisory proceedings).
- In contentious cases, only states that are members of the United Nations and have become parties to the Statute of the Court, or those that have accepted its jurisdiction under specific conditions, can participate.
- The judgments rendered in these cases are final, binding on the involved parties, and not subject to appeal.
- At most, there may be provisions for interpretation or, in cases of newly discovered facts, revision.
What is the Genocide Convention?
- The Convention on the Prevention and Punishment of the Crime of Genocide, commonly known as the Genocide Convention, serves as a foundational instrument in international law, officially defining the crime of genocide for the first time.
- According to the provisions of the Genocide Convention, genocide is deemed a crime applicable both in times of war and peace.
- This pivotal human rights treaty marked a historic milestone as the initial treaty adopted by the United Nations General Assembly on 9 December 1948.
- It symbolizes the global commitment to the principle of 'never again,' echoing the collective resolve of the international community in the aftermath of the atrocities witnessed during the Second World War.
- The definition of genocide outlined in the Convention has gained widespread acceptance on both national and international fronts, finding incorporation into significant legal frameworks, including the 1998 Rome Statute of the International Criminal Court (ICC).
- The Rome Statute, a pivotal development, introduced four core international crimes: genocide, crimes against humanity, war crimes, and the crime of aggression—all of which are explicitly stated to be exempt from any statute of limitations.
- Crucially, the Genocide Convention imposes on State Parties the responsibility to undertake measures for the prevention and punishment of genocide.
- This includes the enactment of relevant legislation and the punishment of perpetrators, irrespective of their status as constitutionally responsible rulers, public officials, or private individuals (Article IV).
- Both South Africa and Israel are parties to the Convention.
How often do such cases come before the ICJ?
This is not the first case the court will hear under the Genocide Convention.
- In 2022, Ukraine filed a case against Russia, and in 2019, the Gambia filed a case against Myanmar with respect to the Rohingya.
- The Myanmar case was the first time that a State invoked the court’s jurisdiction to seek redress for genocidal acts committed against the citizens of another state.
- The court agreed that the Gambia had standing to bring the case.
- Like the Gambia, South Africa has based its jurisdiction under obligations erga omnes partes — that is, as a party to the Convention, it can bring this case because of its community interest in preventing genocide.
What will happen now?
- South Africa’s case appears to meet the threshold for the court to make a provisional measures order.
- The Court must be satisfied it has prima facie jurisdiction; there is a “plausible” link between the rights asserted by South Africa and the measures it requests; and a risk of irreparable harm and urgency.
- That order will come within weeks and will have legal significance for all States that are parties to the Genocide Convention because such an order is binding on all States, even though the court lacks enforcement mechanisms.
- Israel has called the case “baseless” and a “blood libel”, and called on the international community to reject it.
- The United States, Hungary, and Guatemala have done so.
- Palestine has welcomed South Africa’s case, as have the 57 Organisation of Islamic Cooperation (OIC) countries, Malaysia, Turkey, Jordan, Bolivia, Venezuela, Mexico, Bangladesh, Namibia, Nicaragua, and some others.
- France has stated that it will support the court’s decision and India has not issued any statement.
After ECI guidelines, charting a path to disability inclusion in politics (Indian Express)
- 10 Jan 2024
Why is it in the News?
Recently, the Election Commission of India released an advisory for political parties to follow disability-sensitive terminologies and be more inclusive of persons with disabilities.
Context:
- On December 21, the Election Commission of India released a significant advisory, encouraging political parties to embrace terminology that is sensitive to disability issues.
- This initiative is designed to enhance communication that is inclusive of individuals with disabilities, guarantee the accessibility of information, and advocate for inclusion within the structures of political parties.
- This proactive measure is especially noteworthy in light of recent instances where national leaders have used disparaging language about disabilities in their election speeches, contributing to the creation of an "attitudinal barrier" as defined by the Rights of Persons with Disabilities Act, 2016.
- For example, in September 2023, Tamil Nadu leader A Raja compared Sanatan Dharma to people with leprosy and HIV in a derogatory manner.
What is Disability?
- Disability is characterized by a limitation or absence of capacity to engage in typical human activities, often resulting from an impairment.
- According to the United Nations Convention on the Rights of Persons with Disabilities (UN CRPD), individuals with disabilities are those facing long-term physical, mental, intellectual, or sensory challenges, which, in conjunction with societal barriers, hinder their complete involvement in community life.
- This issue holds substantial importance in public health, particularly in nations undergoing development, such as India.
- The International Day of Persons with Disabilities, marked on December 3rd by the United Nations, is dedicated to globally raising awareness about challenges related to disabilities.
About the Rights of Persons with Disabilities (PwD) Act, 2016:
- An Important Legislative Framework for PwD: This legislation plays a significant role in safeguarding and advancing the rights and privileges of persons with disabilities (PwD).
- Replacing the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, the 2016 Act marks a significant stride toward promoting the rights and inclusivity of persons with disabilities across India.
- Rights and Entitlements: Clearly articulating the rights and entitlements of persons with disabilities, the Act ensures their right to equality, protection against discrimination, and active participation in society.
- Education: The Act guarantees free education for persons with disabilities up to 18 years of age and advocates for inclusive educational practices.
- Employment: Promoting equal opportunities, the Act prohibits discrimination and mandates both government and private sector establishments to reserve a designated percentage of jobs for persons with disabilities.
- Reservation in Higher Education: The Act advocates for the reservation of seats in higher educational institutions for persons with disabilities.
- Special Employment Exchanges: Recognizing the importance of facilitating employment, the Act mandates the establishment of special employment exchanges.
- Accessibility: Highlighting the significance of barrier-free access, the Act stresses the need for inclusive designs in public buildings, transportation, and information and communication technologies.
- Healthcare: Ensuring access to affordable and quality healthcare services, the Act prioritizes the healthcare needs of persons with disabilities.
- Legal Capacity: Acknowledging the right to equal recognition before the law, the Act supports the decision-making capacity of persons with disabilities.
- Social Security: The Act advocates for social security and welfare measures to support the well-being of persons with disabilities.
- National and State Advisory Boards: To oversee effective implementation, the Act calls for the establishment of National and State Advisory Boards.
- Offences and Penalties: Prescribing penalties for offences against persons with disabilities, the Act ensures accessible legal proceedings for their protection.
Important Features of the Disability-Inclusive Communication Guidelines from ECI:
- Prohibition of Ill-Health Terminologies: The guidelines emphasize refraining from using ill-health terminologies when referring to individuals with disabilities.
- This prohibition aims to counteract the use of language that may stigmatize or marginalize people with disabilities, as demonstrated by instances such as Tamil Nadu leader A Raja's derogatory comparison in September 2023, highlighting the urgent need for corrective measures.
- Prevention of Dehumanization and Stereotyping: Another vital aspect of the guidelines is the call to avoid dehumanizing portrayals and the perpetuation of stereotypes related to Persons with Disabilities (PwDs).
- Instances of national leaders using disability as a demeaning tool during election speeches underscore the deep-rooted problem these guidelines aim to address.
- By discouraging language that fosters stereotypes, the guidelines work to dismantle attitudinal barriers identified under the Rights of Persons with Disabilities Act, 2016.
- Recognition of Legal Implications: The advisory acknowledges the legal implications of violating these communication guidelines.
- Breaches, especially in disability-inclusive communication, could subject political parties and their members to action under section 92 of the Rights of PwD Act.
- This section, a punitive provision for offences against PwDs, underscores the severity of the issue.
- Therefore, the guidelines not only aim to enhance communication but also contribute to legal measures protecting the rights and dignity of PwDs.
Ideas to Improve the Effectiveness of ECI's Guidelines:
- Need for a Uniform Mandate: Despite the critical nature of these guidelines, a thorough analysis reveals a potential area for improvement.
- While guidelines within the disability-inclusive communication category use mandatory language like ‘should’ and ‘shall,’ others, especially those related to inclusion within the political party framework, employ discretionary terms such as ‘may.’
- To bolster their impact, a uniform mandate across all categories is essential, establishing a consistent and enforceable framework for political parties.
- Incorporate Guidelines into Model Code of Conduct (MCC): These guidelines are not yet part of the MCC.
- The advisory notes that a breach of guidelines related to disability-inclusive communication could lead to action under section 92 of the Rights of PwD Act, but it remains unclear whether other breaches will invoke this provision.
- Section 92 serves as a punitive measure for offences against PwDs, and the guidelines should be integrated into the MCC, similar to gender guidelines, to fortify their enforcement.
- Address Ambiguity in Phraseology: There is some ambiguity within the guidelines regarding specific phraseology, such as the mention of words like "blind," "deaf," and "dumb" as incorrect terminologies.
- While their translation in Hindi or another language might be derogatory, these are technical terms for people with visual, hearing, and speech disabilities.
- A detailed list of disability-sensitive words and phraseology, aligned with the UN Disability Inclusion Strategy, could guide the ECI in providing clarity.
- Incorporate a Chapter on Political Inclusion in the National Policy: The draft National Policy for PwD released last year lacked a dedicated chapter on political inclusion.
- The ECI advisory emphasizes that political parties must strive to include PwDs at all levels and adhere to accessibility norms.
- To catalyze the political inclusion of PwDs, a dedicated chapter on political inclusion should be integrated into the national policy, aligning with the principles of Article 29 of the UN Convention on the Rights of Persons with Disabilities.
- Creation of a Database on Legislators with Disabilities: Currently, there is no data on the number of legislators with disabilities, and the ECI's nomination forms lack a column on disability.
- This absence of data significantly contributes to the political exclusion of PwDs.
- The ECI must address this gap, possibly by introducing a column on disability in nomination forms and affidavits during elections, as a second step towards fostering the political inclusion of PwDs.
Conclusion
The Election Commission of India's recent advisory introducing disability-sensitive guidelines for political parties marks a significant stride towards fostering inclusivity in the political sphere. Nevertheless, to unlock the complete potential of these guidelines, key improvements are imperative. These include adopting a uniform and obligatory language, integrating the guidelines into the Model Code of Conduct (MCC), and adopting a holistic approach to political inclusion within national policies. By addressing these facets, India has the opportunity to shape a more inclusive political landscape that upholds and empowers individuals with disabilities.
Why is child marriage still high in West Bengal? (The Hindu)
- 08 Jan 2024
Why is it in the News
A recent study on child marriage in India published in the Lancet noted the overall decrease in child marriage across the country but pointed out that four States, mainly Bihar (16.7%), West Bengal (15.2%), Uttar Pradesh (12.5%), and Maharashtra (8.2%) accounted for more than half of the total headcount burden of child marriages in girls.
Key Findings of the Report:
- In a recent study published in the Lancet Global Health, findings reveal that one in five girls and one in six boys in India are still marrying below the legal age.
- Utilizing data from five National Family Health Surveys spanning 1993 to 2021, researchers underscore the urgent need for strengthened national and state-level policies to eradicate child marriage by 2030.
- Notable disparities in the prevalence of girl and boy child marriages across states and Union Territories were observed during the study period.
- While all states, except Manipur, showed a decline in girl child marriage between 1993 and 2021, specific states like Bihar, West Bengal, Uttar Pradesh, and Maharashtra accounted for over half of the total burden.
- For boys, Gujarat, Bihar, West Bengal, and Uttar Pradesh accounted for more than 60% of the burden.
- Jharkhand exhibited the largest percentage increase in child marriage headcount (53.1%) between 1993 and 2021.
- Despite most states and Union Territories witnessing a decrease in the headcount of girl child marriage, Uttar Pradesh demonstrated the most substantial absolute decrease, contributing to about one-third of the nationwide decrease from 1993 to 2021
- Conversely, West Bengal saw the largest absolute increase, with over 500,000 more girls married as children during the same period.
What is Child Marriage?
- Child marriage is a social phenomenon prevalent in some Indian societies, where adults marry young children, usually girls under the age of fifteen.
- Another form involves parents arranging future marriages for children who only meet when reaching marriageable age, at which point the wedding ceremony occurs.
Child Marriages in India have undergone significant change:
- From 47.4% in 2005-06, child marriage decreased to 26.8% in 2015-16.
- In the last five years, it further declined by 3.5% points, reaching 23.3% in 2020-21, as per the latest National Family Health Survey-5 data.
- Despite an overall trend of decline, the current rate of 23.3% remains distressingly high in a country with a population of 141.2 crore.
- Eight states surpass the national average in child marriage prevalence, with West Bengal, Bihar, and Tripura having over 40% of women aged 20-24 married below 18, according to NFHS data.
- Some states, like Madhya Pradesh (23.1% in 2020-21 from 32.4% in 2015-16), Rajasthan (25.4% from 35.4%), and Haryana, have demonstrated a reduction in child marriages.
What is the Global Scenario?
- UNICEF data reveals that annually, 12 million girls enter childhood marriages.
- The 2030 UN Sustainable Development Goals target the eradication of harmful practices, including child, early, and forced marriages, along with female genital mutilations, under goal 5.
- Despite notable progress in South Asia over the past decade, where the risk of a girl marrying before 18 has decreased by over a third, dropping from nearly 50% to below 30%, the advancements are insufficient, and progress remains uneven.
Impact of Child Marriage:
- Beyond being a human rights violation and a recognized form of sexual and gender-based violence, child marriage significantly affects maternal and child health.
- A recent tragedy at Murshidabad Medical College and Hospital saw 10 infants die within 24 hours, with the majority born with extremely low birth weight.
- Murshidabad, an economically challenged district, grapples with a high prevalence of child marriages in West Bengal.
- NFHS-5 highlights that 55.4% of women aged 20-24 years in the district are married before the age of 18, marking an increase from NFHS-4, which reported a figure of 53.5%.
Legal Measures in India:
- Various laws, such as the Prohibition of Child Marriage Act, 2006, and the Protection of Children from Sexual Offences Act, 2012, work toward safeguarding children from human rights violations.
- The Prohibition of Child Marriage (Amendment) Bill, 2021 aims to raise the minimum marriage age for women from the current 18 years to 21 years.
Reasons to Raise the Minimum Age of Marriage for Females:
- Addressing Education and Employment Disparities: Women often face inequalities in accessing education and employment due to early marriages.
- Early marriage can restrict women from pursuing education and economic opportunities.
- Raising the minimum age for marriage can encourage more women to pursue higher education and seek employment.
- Impact of Early Marriage on Women's and Children's Health: Early marriages and subsequent early pregnancies have significant implications for the nutritional levels, overall health, and mental wellbeing of both mothers and children.
- Underage mothers are more vulnerable to reproductive health challenges, malnutrition, postpartum hemorrhage, and susceptibility to sexually transmitted diseases.
Govt. Initiatives for Preventing Girl Child Marriage:
- Beti Bachao Beti Padhao: Among various girl child welfare schemes, Beti Bachao Beti Padhao is widely recognized.
- Translating to "Save the Girl Child, Educate the Girl Child," it focuses on women empowerment and creating an inclusive ecosystem.
- The scheme aims to promote the safety of girl children before and after birth.
- Sukanya Samriddhi Yojana (SSY): Launched in 2015, SSY promotes the welfare of girl children.
- It encourages parents to invest in funds for the girl's future studies and marriage expenses.
- Balika Samriddhi Yojana: This central government scheme supports girls in financially vulnerable sections.
- Ensures the enrollment and retention of girl children in primary and secondary schools, emphasizing quality education.
Revival of the tiger: A joint effort, a cultural renaissance (Indian Express)
- 06 Jan 2024
Why is it in the News?
Jim Corbett Tiger Reserve has achieved success through comprehensive conservation strategies, including habitat protection, community involvement, and ecological sustainability. The reserve's efforts focus on maintaining a balance between wildlife conservation and the well-being of local communities, showcasing a commitment to the coexistence of both nature and people.
Background:
- India has a profound history of forest and wildlife conservation, marked by a notable achievement at the Corbett Tiger Reserve (CTR) in Uttarakhand.
- CTR has seen the successful implementation of comprehensive efforts and strategies, resulting not only in a remarkable rise in the tiger population but also establishing itself as a global exemplar in wildlife management.
About Jim Corbett National Park:
- Established in 1936 as Hailey National Park, Jim Corbett National Park holds the distinction of being India's first national park.
- In 1973, it gained Tiger Reserve status, becoming the pioneer in the Project Tiger initiative.
- Nestled in the Shivalik hills of the Himalayas, Corbett Tiger Reserve spans across the Pauri Garhwal, Nainital, and Almora districts of Uttarakhand.
- Renowned for its global record, it proudly hosts the highest tiger density, reaching 260 in 2022, a notable increase from 231 four years earlier.
Cultural and Economic Significance of Tigers in India:
- Beyond ecological importance, the tiger carries profound cultural and historical significance in India.
- The resurgence of tiger populations, particularly at CTR, represents a cultural revival and the renewed embrace of conservation values.
- The thriving eco-tourism industry illustrates the economic interdependence between local communities and tigers, highlighting the profound connection between wildlife and people at CTR.
An Overview of Effective Biodiversity and Tiger Conservation Plan at CTR:
- Implementation of a Comprehensive Strategy: CTR owes its success to the meticulous execution of the Tiger Conservation Plan, focusing on the well-being of both tiger populations and broader biodiversity.
- Spanning 1288.31 sq km across Uttarakhand, CTR showcases the plan's efficacy in nurturing a flourishing ecosystem.
- Clear Division of Core and Buffer Zones: The foundation of the Tiger Conservation Plan lies in delineating core and buffer zones within the reserve, offering wildlife a sanctuary.
- Core zones provide undisturbed habitats crucial for breeding, while buffer zones minimize conflicts between human settlements and wildlife.
- Increase in Tiger Population: Recent statistics highlight a significant rise in CTR's tiger population, from 231 to 260 in just four years.
- This surge underscores the plan's success, safeguarding not only tigers but also the overall health and balance of the forest ecosystem.
- Maintenance of Rich Biodiversity: CTR's success extends beyond tiger numbers, encompassing a biodiverse landscape that attracts researchers, conservationists, and tourists.
- The diverse flora and fauna contribute to ecological balance, fostering harmonious coexistence between predator and prey.
- Promotion of Ecotourism and Conservation: CTR's vibrant ecosystem has made it a hub for ecotourism, creating economic opportunities for local communities.
- Tourists contribute to both nature appreciation and the local economy, making conservation and tourism mutually beneficial.
- Effective Grassland and Water Management: CTR employs a nuanced approach to grassland management with 27 grassland types, crucial for sustaining prey species.
- Strategic water management, including solar-pump-fed waterholes, supports diverse wildlife needs, ensuring a sustainable ecosystem.
- Dedicated Forest Staff: The dedicated forest staff, comprising foot-soldiers, mahouts, and guards, are integral to CTR's success.
- Initiatives like timely wages and enhanced safety measures underscore the importance placed on the well-being of these unsung heroes.
- Focus on Wildlife Corridors and Habitat Protection: CTR prioritizes wildlife corridors for gene pool exchange, aligning with the Tiger Conservation Plan's recommendations.
Human-Wildlife Conflict at CTR:
- Increasing Incidents and Challenges: The upsurge in conflicts between humans, elephants, and tigers at CTR stems from factors like habitat encroachment, limited animal corridors, and the behavioral conditioning of predators.
- Straying milch and domestic animals from villages become easy prey for tigers, leading to predatory behavior towards humans, especially in buffer forest areas.
- The Complexity of 'Wicked Problems': Described as a 'wicked problem' due to its intricate nature, human-wildlife conflict at CTR requires a nuanced and context-specific approach.
- CTR emphasizes the significance of every solution attempt, recognizing that there's no one-size-fits-all remedy, and continuous adaptation and innovation are essential for evolving conflict scenarios.
Strategies Implemented for Human-Wildlife Conflict Mitigation and Co-Existence Promotion at CTR:
- Forest Department Initiatives: Proactive measures by the forest department at CTR have successfully eliminated poaching activities, particularly along the sensitive southern boundary.
- Dedicated foot soldiers, along with digital surveillance through the electronic-eye project, have played a pivotal role in reducing wildlife threats.
- Community Engagement Strategies: Community engagement is fundamental to CTR's approach to resolving human-wildlife conflicts.
- Local stakeholders actively participate in conservation through initiatives like the Living with Tigers program, engaging villagers and school children in behavioral and response awareness.
- This educational effort aims to deepen understanding of wildlife behavior patterns and promote practices that enhance safety for both humans and animals.
- Provision of Economic Incentives for Conservation: The forest department has initiated projects offering economic incentives for conservation, such as the beehive-fencing project.
- Strategically placing beehives along village-forest borders, the resulting Corbee Honey brand is managed by local Eco Development Committees (EDCs), fostering economic cooperation and coexistence with local stakeholders.
Conclusion
- Corbett Tiger Reserve emerges as a triumph in wildlife conservation, embodying a comprehensive and integrated approach. Through careful habitat management and community engagement, CTR exemplifies the promise of sustainable coexistence between humans and wildlife. As an integral chapter in India's conservation story, the ongoing success of the reserve relies on the collaborative endeavors of the forest department, local communities, and passionate conservation advocates.
To avoid worst-case scenarios, the need for fiscal correction is all the more vital this election year (The Hindu)
- 05 Jan 2024
Why is it in the News
The recent observations by the International Monetary Fund (IMF) sparked reactions from the Indian Government in which it states that India’s general government debt, including the Centre and States, could be 100% of GDP under adverse circumstances by fiscal 2028.
Context:
- India’s economic landscape has undergone scrutiny as the International Monetary Fund (IMF) made two noteworthy observations.
- The IMF report not only acknowledged India’s effective inflation management but also presented a balanced outlook for the country’s economic growth.
- To analyze the IMF’s insights on India’s economic situation, one must understand the broader global context in which these observations were made.
Insights from the IMF on India's Economic Landscape:
Exchange Rate Reclassification:
- A pivotal observation by the IMF is the reclassification of India's exchange rate regime from floating to a stabilised arrangement.
- This reclassification raises questions about the flexibility of the currency and its alignment with market forces, indicating a perception of a more controlled and stabilised environment, potentially influenced by central bank (RBI) interventions.
Debt Sustainability Concerns:
- The IMF expresses significant concerns about the long-term sustainability of India's debts.
- The report projects that, under adverse circumstances, India's general government debt could reach 100% of GDP by fiscal 2028.
- This highlights the imperative for careful debt management strategies, particularly as India confronts substantial investment requirements to meet climate change mitigation targets and enhance resilience to climate stresses and natural disasters.
- It's crucial to note that these IMF insights are framed within the global context of increasing public debts, recognizing that India's economic challenges are interconnected within a complex web of global economic phenomena.
The Global Debt Scenario in a Broader Context:
Dual Nature of Debt: Accelerator vs. Drag on Development:
- Globally, government borrowings have been instrumental in fostering development, supporting infrastructure projects, social programs, and economic growth.
- However, the IMF's concerns emphasize the potential drawbacks of this strategy, as limitations in accessing financing, rising borrowing costs, currency devaluations, and sluggish growth can transform debt from a catalyst into a hindrance.
- The United Nations' assertion that countries face a challenging dilemma between servicing their debt or serving their people encapsulates the inherent difficulty in managing debt for sustainable development.
Surging Global Public Debt Trends:
- According to the UN, global public debt has surged more than fourfold since 2000, surpassing the tripling of global GDP over the same period.
- In 2022, global public debt reached USD 92 trillion, with developing countries contributing nearly 30% to the total, and China, India, and Brazil accounting for a significant portion (70%).
- The acceleration of debt in developing nations over the past decade is attributed to heightened development financing needs exacerbated by the COVID-19 pandemic, the cost-of-living crisis, and the impact of climate change.
Asymmetric Burden on Developing Countries:
- The burden of debt is unevenly distributed between developed and developing nations, with developing countries often facing higher interest rates even without considering exchange rate fluctuations.
- This well-documented disparity reveals that countries in Africa, for instance, borrow at rates four times higher than the United States and eight times higher than Germany, undermining the debt sustainability of developing economies.
Increasing Debt Levels and the IMF's Perspective:
- The number of countries grappling with high levels of debt has surged from 22 in 2011 to 59 in 2022, highlighting persistent debt challenges in developing nations.
- The IMF's projections for India should be understood in the broader context of a global debt conundrum.
Challenges Facing India's Economic Landscape:
Increasing Public Debt:
- The central government's debt, amounting to ?155.6 trillion, constitutes 57.1% of GDP as of March 2023, with state government debts accounting for about 28% of GDP.
- Despite claims by the Finance Ministry that India's public debt-to-GDP ratio has marginally increased from 81% in 2005-06 to 84% in 2021-22, the 2022-23 figures indicate a return to 81%, surpassing targets set by the Fiscal Responsibility and Budget Management Act (FRBMA).
Balancing Public Debt for Sustainability:
- A significant challenge for India lies in achieving a delicate balance to ensure that public debt remains within sustainable levels.
- IMF projections indicate that India's general government debt, inclusive of both central and state governments, could reach 100% of GDP by fiscal 2028 under adverse circumstances, underscoring the need for meticulous debt management strategies.
Stagnant Credit Ratings:
- Despite being acknowledged as the fastest-growing major economy globally, India's sovereign investment ratings have remained stagnant since August 2006.
- Both Fitch Ratings and S&P Global Ratings have maintained India's credit rating at 'BBB-' with a stable outlook, the lowest investment-grade level, attributed to factors like weak fiscal performance and a burdensome debt stock.
Emerging Fiscal Challenges:
- Disruptions caused by the COVID-19 pandemic contribute to the current high debt-GDP ratio, with potential fiscal slippage in FY24 according to India Ratings and Research.
- Increased expenditure on employment guarantee schemes and subsidies, such as a higher fertiliser subsidy and overspending on the MGNREGA, pose challenges to fiscal stability.
Managing Short-Term Challenges and Election Dynamics:
- As India approaches general elections, increased subsidies are expected, but questions arise about the impact on employment growth and livelihoods in rural areas.
- Navigating these short-term challenges in an election year becomes a critical test for maintaining fiscal discipline and avoiding worst-case scenarios.
Way Forward:
- While the exchange rate reclassification raises potential concerns about excessive management, the focus on debt sustainability underscores the broader call for prudence in managing fiscal policies.
- The IMF's observations highlight the delicate balancing act India must perform—maintaining a stable exchange rate while ensuring long-term debt sustainability.
- There is a pressing need for new and preferably concessional sources of financing, increased private sector investment, and the implementation of carbon pricing or equivalent mechanisms to address long-term risks.
Conclusion:
Navigating the multifaceted challenges outlined by the IMF, India finds itself at a crucial juncture, necessitating a strategic approach to economic management. The IMF's observations, addressing concerns about debt sustainability and the reclassification of the exchange rate regime, underscore the importance of nuanced decision-making and long-term planning.
Qatar court drops death penalty for 8 Indians, Govt says sentences reduced (Indian Express)
- 29 Dec 2023
Why is it in the News?
A Qatar court has reduced the death sentences awarded to eight former Indian Navy personnel last month in connection with an alleged case of espionage.
What is the Case?
- Arrest of Eight Navy Personnel: On August 30, 2022, eight former Indian Navy personnel, accompanied by two others, were apprehended under undisclosed charges and subsequently placed in solitary confinement.
- These individuals were affiliated with Al Dahra Global Technologies and Consultancy Services, a defense services provider company.
- Sources indicate that the Indian nationals were privately engaged with the company to supervise the induction of Italian small stealth submarines U2I2.
- The company's previous website, now defunct, mentioned its provision of training, logistics, and maintenance services to the Qatari Emiri Naval Force (QENF).
- Charges Against the Men: The specific charges against the individuals have not been publicly disclosed; however, media reports suggest that the eight Indians are accused of espionage on behalf of Israel.
- Death Penalty for Navy Veterans: In March 2023, after multiple unsuccessful bail pleas, the trial for the Navy veterans commenced, culminating on October 26, 2023, with the imposition of the death sentence on all eight men.
- India's Appeal: In November 2023, the Ministry of External Affairs (MEA) announced the filing of an appeal, revealing that its legal team possessed details of the charges.
- The Indian ambassador in Doha visited the incarcerated individuals on December 3, providing consular access.
- This access occurred shortly after Prime Minister Modi met Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani during the COP28 summit in Dubai on December 1.
What Options Has India Explored?
- One avenue involves legal challenges, a step that has been acknowledged and has temporarily mitigated the sentence.
- Concurrently, India has actively utilized diplomatic channels to engage with the Qatari authorities.
- The families have submitted a mercy plea to the Emir of Qatar, leveraging the tradition of pardons granted during Ramadan and Eid, with support from the Indian government.
India-Qatar Bilateral Relations:
- Economic Ties: In recent years, the trade volume between India and Qatar has witnessed fluctuations.
- During the fiscal year 2015-2016, trade between the two nations reached an impressive $10 billion.
- However, recent years have seen a slight decline in trade due to falling gas and oil rates in the international market.
- Trade Statistics and Import Dependence: In the fiscal year 2022-23, India's total imports from Qatar amounted to $16.81 billion, primarily in fossil fuels like liquefied petroleum gas (LPG), plastics, and petrochemical products.
- Conversely, India's exports to Qatar during the same fiscal year were valued at $1.97 billion, covering items such as cereals, copper articles, iron and steel products, vegetables, fruits, spices, and processed food items.
- Investment Interests and Collaborative Projects: Qatari authorities, particularly the Qatar Investment Authority, express interest in investing in India, focusing on infrastructure development, roads, highways, economic corridors, and projects related to gas and fertilizers.
- India reciprocates with a keen interest in direct investments in liquefied natural gas, chemical industries, fertilizer production, urea, petrochemicals, and infrastructure projects.
- India's Growing Energy Needs: India, with its growing energy needs, has a robust energy partnership with Qatar, dating back to a 1990 agreement.
- This commitment involves India purchasing 7.5 million tonnes of LNG annually for 25 years.
- The collaboration was further strengthened in December 2015, with Qatar agreeing to augment its LNG supply to India by an additional one million tonnes annually.
- Collaboration in Defence Affairs: India's defense collaboration with Qatar focuses on training, mutual participation in conferences and events, and visits by Indian Navy and Coast Guard vessels.
- Notably, the joint naval exercise 'Zair-Al-Bahr' showcases significant cooperation between the Indian and Qatari Navies.
- Both nations are committed to combating the financing of terrorism.
- Cultural Interaction: The Indian Cultural Centre (ICC) plays a crucial role in overseeing Indian community associations in Doha.
- Qatar's role as a co-sponsor of the United Nations General Assembly Resolution designating June 21 as the International Day of Yoga is highly valued by India.
- Indian Diaspora in Qatar: The Indian community in Qatar, numbering approximately 700,000, constitutes the largest expatriate group.
- Their contributions span diverse sectors, including projects related to the Qatar 2022 FIFA World Cup, and annual remittances to India are estimated at around 750 million dollars.
- Indispensable Role of Qatar as an LNG Supplier: The cornerstone of the bilateral trade relationship lies in liquefied natural gas (LNG), where Qatar plays a pivotal role by meeting 80% of India's LNG requirements.
- India imported a total of 19.85 million tonnes of LNG in the fiscal year 2022-23, with approximately 54% of this LNG.
- This significant reliance on Qatar, both through long-term contracts and spot purchases, underscores the challenge of diversifying India’s sources of LNG.
Challenges in India-Qatar Bilateral Relations:
- BJP Spokesperson's Controversy: The initial strain in the relationship arose in June 2022 when BJP spokesperson Nupur Sharma made derogatory references to the Prophet on a TV show.
- Qatar was the first country to object and demanded a public apology from India.
- Jailing of Navy Personnel: The second significant challenge involves the imprisonment of eight ex-Navy personnel.
- This development caught New Delhi off guard, particularly given the substantial Indian expatriate community in Qatar, where 800,000 Indians live and work.
- Israeli-Gaza Conflict: The news of the death penalty for the Indians coincided with heightened tensions in the Middle East due to the Israeli bombardment of Gaza.
- Qatar, with its strong sympathy for the Palestinians, has played a mediating role, including securing the release of American hostages from Hamas captivity.
- Qatar's diplomats are actively engaged as regional mediators in the ongoing crisis.
Maximizing Opportunities for Strengthened Relations:
- Safeguarding Expatriate Workers: India must engage in negotiations aimed at ensuring the protection of the rights and well-being of its expatriate workers in Qatar, who have encountered various labour-related challenges.
- Cultural Exchange and Soft Power: Recognizing the widespread popularity of Bollywood among Qataris, India should actively explore diverse avenues for cultural exchange to amplify its soft power influence.
- This cultural diplomacy can serve as a bridge for deeper understanding between the two nations.
- Cooperation in the Education Sector: The presence of esteemed Western universities in Qatar presents an opportunity for Indian students to access quality education abroad without the usual constraints of long distances and high living costs.
- Strengthening cooperation in the education sector can further elevate the resilience and depth of the India-Qatar relationship, even in the face of seemingly intractable diplomatic challenges.
- Collaborative Environmental Sustainability: India and Qatar can forge a collaborative path towards fostering a cleaner and more energy-efficient environment.
- Joint efforts in environmental sustainability can contribute to shared global goals.
Indian banks reports card: Asset quality improves to fresh 10-year high, balance sheet grows by highest in 9 years (The Hindu)
- 28 Dec 2023
Why is it in the News?
Indian banks continued to show improvement in their asset quality, with the gross non-performing asset (GNPA) ratio reaching a new decadal low as of September-end, according to a report by the Reserve Bank of India (RBI).
Key Points from the 'Trend and Progress of Banking in India' Report:
- The Gross Non-Performing Assets (GNPA) ratio of Scheduled Commercial Banks (SCBs) reached a decade-low of 3.9% by the end of March 2023, further declining to 3.2% by the end of September 2023.
- In the fiscal year 2022-23, approximately 45% of the reduction in Gross Non-Performing Assets (GNPAs) of SCBs was attributed to recoveries and upgrades.
- The consolidated balance sheet of banks witnessed a notable growth of 12.2% in 2022-23, marking the highest in 9 years.
- The share of Public Sector Banks (PSBs) in the consolidated balance sheet decreased from 58.6% in March 2022 to 57.6% in March 2023, while private banks saw an increase from 34% to 34.7%.
- As of March 2023, PSBs accounted for 61.4% of total deposits and 57.9% of total advances.
- With inflation persisting above the target, there is a possibility that monetary policy could remain in restrictive territory for an extended period.
- Acknowledging the growing interconnectedness between banks and Non-Banking Financial Companies (NBFCs), the report suggests that NBFCs diversify their funding sources and reduce reliance on bank funding.
- The central bank expresses concerns about banks lending to borrowers with influence, highlighting moral hazard issues that may compromise pricing and credit management.
- The Indian banking system is well-positioned for improvement, boasting better asset quality, high capital adequacy, and robust profitability.
- The financial indicators of NBFCs are anticipated to strengthen further, contributing to the overall resilience of the financial sector.
What are Non-Performing Assets (NPAs)?
- Non-performing assets (NPAs) refer to loans or advances in which the principal or interest payments have been overdue for a period exceeding 90 days.
- In the context of banks, loans are considered assets due to the significant income generated through interest payments.
- When borrowers, whether individuals or corporations, fail to meet their interest obligations, the asset turns 'non-performing' for the bank, as it ceases to contribute to the bank's earnings.
- As per the Reserve Bank of India (RBI) guidelines, banks must publicly disclose their NPAs and report them to the RBI regularly.
The classification of NPAs includes:
-
- Substandard assets: Loans that have been non-performing for up to 12 months.
- Doubtful assets: Assets that have remained in the substandard category for a period of 12 months.
- Loss assets: Assets deemed uncollectible, with little value, making their continuation as bankable assets unwarranted.
- NPA Provisioning involves setting aside a certain percentage of the loan amount as a provision.
- The standard rate of provisioning in Indian banks ranges from 5-20%, depending on the business sector and borrower's repayment capacity.
- In the case of NPAs, Basel-III norms require 100% provisioning.
Key metrics for understanding the NPA situation include Gross NPA (GNPA) and Net NPA (NNPA):
- GNPA: Represents the total value of gross NPAs for a bank in a specific quarter or financial year.
- NNPA: Obtained by subtracting the provisions made by the bank from the gross NPA, providing the precise value of NPAs after specific provisions.
- NPA Ratios express NPAs as a percentage of total advances, offering insights into the recoverability of total advances. For example:
- GNPA ratio: The ratio of total GNPA to total advances.
- NNPA ratio: Utilizes net NPA to determine the ratio to total advances, considering the specific provisions made by the bank.
Government and RBI Initiatives to Address NPAs:
To tackle the issue of Non-Performing Assets (NPAs), the Indian government has implemented a series of comprehensive measures in collaboration with the Reserve Bank of India (RBI).
- Establishment of a Bad Bank: National Asset Reconstruction Ltd (NARC), operates as an asset reconstruction company with the primary objective of purchasing distressed loans from banks, thereby alleviating them of the burden of NPAs.
- Once acquired, NARC endeavors to sell these problematic loans to distressed debt buyers.
- Additionally, the government has established the India Debt Resolution Company Ltd (IDRCL) to facilitate the sale of stressed assets in the market.
- Empowering Banks through the SARFAESI Act, 2002: The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, enacted in 2002, empowers banks and financial institutions to take possession of collateral assets and execute their sale for the recovery of outstanding dues.
- Crucially, this process does not necessitate intervention from the court.
- The SARFAESI Act also provides provisions for enforcing security interests, allowing banks to issue demand notices to defaulting borrowers.
- Holistic Approach with the Insolvency and Bankruptcy Code (IBC), 2016: The Insolvency and Bankruptcy Code (IBC) establishes a comprehensive framework for the resolution of insolvency and bankruptcy in India.
- It is designed to expedite the resolution process for stressed assets, fostering a creditor-friendly environment.
- Under the IBC, both debtors and creditors have the authority to initiate insolvency proceedings against defaulting borrowers.
- The creation of the National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI) ensures effective oversight of the resolution process.
Significance of NPA Recovery:
- The recovery of NPAs assumes paramount importance in safeguarding the interests of depositors and stakeholders.
- Emphasizing compromise settlements, the focus should be on achieving maximum dues recovery with minimal expenses and within an expedited timeframe.
- In the pursuit of compromise settlements, public sector banks are urged to prioritize the interests of the tax-paying public over the borrowers.
- This aligns with the broader goal of ensuring that resolutions serve the greater public good.
PLI is good for high-end manufacturing, but industrial policy is the best bet for mass job creation (Indian Express)
- 27 Dec 2023
Why is it in the News?
- While India has experienced positive outcomes from liberalization efforts, it is important to acknowledge a significant shortcoming—the country did not successfully establish a robust manufacturing foundation and underwent premature de-industrialization.
- It's crucial to recognize that no nation has achieved industrialization solely through deregulation.
- To facilitate the structural transformation of the economy, the implementation of a well-crafted industrial policy becomes imperative, with thoughtfully selected import restrictions serving as a key component of this policy mechanism.
The Make in India (MII) Initiative and Its Goals:
- Make in India Campaign: Officially inaugurated by Prime Minister Modi in September 2014, the Make in India campaign is a strategic effort aimed at advancing manufacturing, attracting foreign direct investment (FDI), fostering innovation, and generating employment opportunities within the nation.
Objectives of the Make in India:
- Advancing Manufacturing: The initiative strives to elevate India's status to a global manufacturing hub by encouraging both domestic and international companies to establish manufacturing units within the country.
- Attracting Foreign Investment: Make in India seeks to allure foreign direct investment by streamlining the business environment, simplifying regulatory norms, and providing incentives to foreign companies for investing in India's manufacturing sector.
- Infrastructure Enhancement: Emphasizing infrastructure development, the campaign focuses on improving key elements such as roads, ports, and logistics to ensure the seamless operation of manufacturing units.
- Skill Development: Recognizing the pivotal role of a skilled workforce in a thriving manufacturing sector, Make in India incorporates initiatives to enhance the skill sets of the Indian workforce, aligning them with the requirements of modern manufacturing.
- Innovation and Technology: The campaign places a significant emphasis on fostering innovation and integrating modern technology into manufacturing processes.
- This strategic approach aims to enhance efficiency and competitiveness in the manufacturing sector.
Differentiating Made in India (MII) from Previous Policies:
- The Make in India campaign, launched in 2014, represents a departure from the self-sufficiency doctrine that India adopted in the 1970s.
- It does not bring back memories of the licensing raj or import-substituting industries of the past.
- While concerns have been expressed about the implementation of Make in India, particularly in certain sectors where tariff duties are raised to provide protection and incentivize the establishment of domestic industries, it is crucial to note that the campaign is fundamentally different.
- Worries about a potential spread of protectionist tendencies to other sectors, though possibly overstated, are not entirely unfounded, especially for those who experienced the challenges of the 1970s and 1980s.
- During those years, indiscriminate protectionism led to shortages, black markets, and widespread rent-seeking, all ostensibly in the name of the poor and distributive justice.
- Producers who benefited from such protection actively advocated for its continuation.
- Importantly, considering that an average mobile phone manufactured in India consists of 80-85 percent imported content (India Cellular and Electronics Association, 2022), it is empirically evident that Make in India significantly differs from the concept of self-sufficiency.
- Given these empirical distinctions, it is imperative to move beyond baseless comparisons and recognize the unique nature of the Make in India initiative.
Evaluation of Commitments and Performance of Make in India:
- A Sizeable Domestic Market Falls Short of Competitiveness in Exports: Make in India (MII) encompasses two related concepts, namely Made in India and Make for India, with MII serving as the foundational and overarching policy.
- While Made for India focuses on manufacturing for the domestic market, it is essential to recognize that a substantial domestic market alone does not substitute for the crucial aspect of export competitiveness.
- Historical examples, such as Japan, Korea, and China, underscore that export competitiveness has been a common feature of nations that have experienced significant economic growth.
- While Made for India focuses on manufacturing for the domestic market, it is essential to recognize that a substantial domestic market alone does not substitute for the crucial aspect of export competitiveness.
- The necessity of an Effective Make in India Operation: Made in India functions as a branding strategy, promoting manufacturers rooted in Indian factors of production—land, labor, capital, entrepreneurship, technology, etc.
- However, the success of Made in India hinges on the effectiveness of the broader Make in India operation.
- Alignment with National Manufacturing Policy (NMP 2011): Make in India was launched as a follow-up to prior initiatives, particularly the National Manufacturing Policy (NMP) of 2011, which aimed to cultivate a robust and competitive manufacturing sector.
- The NMP 2011 identified challenges such as inadequate physical infrastructure, a complex regulatory environment, and insufficient availability of skilled manpower hindering manufacturing growth.
- The policy set ambitious targets, including raising the manufacturing contribution to GDP from a stagnant 15 percent since the 1980s to at least 25 percent and generating 100 million additional jobs.
- Dynamic Objectives of Make in India: Beyond the objectives outlined in the NMP 2011, Make in India aspires to elevate India into a global design and manufacturing export hub.
- In essence, Make in India envisions a transformation where India becomes a manufacturing powerhouse catering to the global market.
Requirement for Supplementary Industrial Policy Measures During Ongoing PLI Implementation:
- Diversified Articulation Beyond Production Linked Incentive (PLI): Beyond the current implementation of the Production Linked Incentive (PLI) scheme, there is a crucial need for an additional industrial policy tailored to sectors such as toys, readymade garments, and footwear.
- A more nuanced and sector-specific articulation of industrial policies is essential to meet the unique requirements of diverse sectors.
- Emphasis on Job Creation: Industrial policy must prioritize job creation, especially in a country abundant in labour but with average educational attainments and skills.
- Policies should be designed to create productive job opportunities, particularly focusing on labour-intensive manufacturing and opening avenues for women in the workforce.
- Addressing the Jobless Growth Critique: Acknowledging the criticism of jobless growth, the absence of quality jobs with social protection has contributed to this narrative.
- Industrial policies should explicitly target mass job creation, considering both job quality and the provision of social protection.
- Navigating the Challenges of Inclusive Policy Formulation: The government should confront the complexities of formulating industrial policies that foster mass job creation, especially in comparison to policies solely focused on exports.
- Inclusive policies that align with the overarching goal of creating high-quality jobs and ensuring social protection are essential.
- Treating Job Creation as the Benchmark: The effectiveness of industrial policies should be assessed based on their impact on mass job creation in India.
- This underscores the significance of addressing concerns related to jobless growth and prioritizing policies that generate inclusive and high-quality employment opportunities.
- Confronting Labor Market Challenges: India's labour market research indicates the prevalence of low-paying, low-productivity, and largely informal jobs in the unorganized sector.
- With more than 99 percent of India's 63 million micro, small, and medium enterprises (MSMEs) in the unorganized sector, there is limited flexibility for creating productive jobs.
- The assessment of how Make in India, complemented by other policies, has addressed these challenges is crucial.
- However, the lack of frequent and short-interval official data poses a significant hurdle, necessitating attention to enhance policy efficacy through more regular and timely data collection.
Conclusion
A thorough examination of the nation's circumstances and capabilities is imperative for effective government decision-making.
- India must formulate an industrial policy that extends the advantages of technological advancements beyond just the privileged laptop class.
- However, it is essential to exercise caution in steering discussions on industrial policy, avoiding the pitfalls of showmanship, theoretical oversimplification, or misleading historical comparisons.
- The global landscape demands that India adopt a substantive industrial policy, placing a genuine emphasis on the significance of manufacturing.
- In this context, it is evident that there is no substitute for a well-considered and serious industrial policy.
Women participation in NREGS continues to rise, by 59% this fiscal (Indian Express)
- 26 Dec 2023
Why is it in the News?
As per the Periodic Labour Force Survey (PLFS), published by the Ministry of Statistics and Programme Implementation, the female Labour Force Participation Rate has increased in the country in recent years.
News Summary:
- Recent data highlights a significant surge in women's engagement in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), reaching its highest point in a decade.
- In the fiscal year 2022-23, women accounted for 57.47% of person-days, showcasing a notable increase from the previous year's 54.82%.
- Analyzing the broader landscape, statistics from the NREGS portal for the period up to December 24, 2023, reveal that out of a total of 238.62 crore person-days, women contributed 141.37 crore person-days, constituting an impressive 59.25%.
- The Periodic Labour Force Survey (PLFS), conducted by the Ministry of Statistics and Programme Implementation, provides further insights into the evolving dynamics of female labor force participation in the country.
- Notably, the Female Labour Force Participation Rate (LFPR) has witnessed a substantial uptick in recent years, particularly in rural areas.
- In the rural context, the LFPR soared to 30.5% in 2022-23 (July-June), a significant leap from 18.2% recorded in 2017-18.
- Complementing this positive trend, the female unemployment rate has experienced a noteworthy decline, dropping to 1.8% in 2022-23 from 3.8% in 2017-18.
- These statistics collectively underscore a positive trajectory in women's participation and employment, signaling progressive changes in the socio-economic landscape.
What is Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?
- The National Rural Employment Guarantee Act (NREGA) came into effect in September 2005.
- In 2009, an amendment renamed the Act to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
- Mandate: MGNREGA is designed with the primary objective of offering a minimum of 100 days of guaranteed wage employment within a financial year to every rural household whose adult members willingly engage in unskilled manual labor.
- The operationalization of this guarantee is facilitated through the Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS).
- Funding Structure: As a Centrally-Sponsored Scheme, MGNREGS receives joint financial backing from both the Central government and the State governments.
- This collaborative funding approach underscores the shared commitment to addressing rural employment challenges.
- Administrative Oversight: The Ministry of Rural Development is the overseeing authority responsible for the implementation and management of MGNREGS, emphasizing the central role of rural development in realizing the objectives of this significant initiative.
Key Characteristics of the Program:
- Enshrined Legal Entitlement: MGNREGA establishes a legal assurance for wage employment, granting every rural household the right to enroll in the program. Notably, the scheme mandates that at least one-third of its beneficiaries must be women. Legal provisions are in place to address situations where work is not provided on demand or when there are delays in wage payments, ensuring accountability and fair compensation.
- Demand-Driven Structure: This initiative operates on a demand-driven framework, responding to the explicit requests for work from wage-seekers. The provision of employment is triggered by the expressed demand, creating a responsive system that aligns with the needs of the community.
- Decentralized Implementation Model: State governments wield the authority to establish rules and modify relevant state schemes, fostering a decentralized mode of implementation. Gram Panchayats (GPs) play a crucial role by executing at least 50% of the work in terms of cost. Decision-making processes, including plans for works, site selection, and the order in which each task is initiated, occur in open assemblies of the Gram Sabha, ensuring community involvement and transparency.
- Parliamentary Accountability: An Annual Report, compiled by the Central Employment Guarantee Council (CEGC), detailing the outcomes of MGNREGA, is mandated to be presented annually to the Parliament by the Central Government. The CEGC, established under Section 10 of MGNREGA, is chaired by the Union Minister for Rural Development.
- Nationwide Coverage: MGNREGA extends its coverage across the entire country, with the exception of districts that boast a one hundred percent urban population, reflecting its comprehensive reach and impact.
Key Accomplishments of the MGNREGA Scheme:
Achievements in 2022-23:
- Employment opportunities were provided to 11.37 crore households.
- A total of 289.24 crore person-days of employment were generated, with specific allocations as follows:
- 56.19% for women
- 19.75% for Scheduled Castes (SCs)
- 17.47% for Scheduled Tribes (STs).
What are the Challenges in Implementing the Scheme?
- Delay and Insufficiency in Funds Disbursement: Many states have not adhered to the mandated 15-day wage disbursement timeline under MGNREGA.
- Moreover, workers face a lack of compensation for delayed wage payments, transforming the scheme into a supply-based program.
- Consequently, worker interest in participating has waned.
- Evidence, including a Ministry of Finance admission, points to insufficient funds as a key factor behind delays in wage payments.
- Caste-Based Disparities: Notable discrepancies in payment delays exist along caste lines.
- While 46% of payments to Scheduled Caste (SC) workers and 37% to Scheduled Tribe (ST) workers were completed within the stipulated seven days, non-SC/ST workers experienced a dismal 26% compliance.
- The adverse effects of caste-based disparities are particularly pronounced in economically challenged states like Madhya Pradesh, Jharkhand, Odisha, and West Bengal.
- Ineffective Role of Panchayati Raj Institutions (PRIs): Gram Panchayats, lacking autonomy, struggle to implement the act efficiently. Limited decision-making authority hampers their effectiveness in executing MGNREGA.
- High Number of Incomplete Projects: Delays in project completion and irregular project inspections pose challenges to MGNREGA.
- Additionally, concerns regarding the quality of work and asset creation persist within the scheme.
- Fabrication of Job Cards: Issues related to the existence of fake job cards, inclusion of fictitious names, missing entries, and delays in updating job cards contribute to administrative challenges within the program.
Way Forward
- Enhanced Coordination among Government Departments: Improved collaboration is essential among various government departments and the development of a streamlined mechanism for the allocation and measurement of work.
- This will contribute to a more efficient and transparent execution of projects.
- Addressing Gender Pay Disparities: Efforts should be directed towards rectifying discrepancies in payouts, particularly addressing the gender pay gap.
- Currently, women in the sector earn, on average, 22.24% less than their male counterparts, emphasizing the need for gender-inclusive policies and fair remuneration practices.
- Prompt Commencement of Public Works: State governments should ensure the prompt initiation of public works in every village.
- Workers arriving at worksites should be swiftly provided with employment opportunities, minimizing delays and optimizing the scheme's effectiveness.
- Empowering Gram Panchayats: Gram Panchayats should be equipped with ample resources, authority, and responsibilities to sanction works, meet demands for employment, and authorize timely wage payments.
- This empowerment is crucial to eliminate delays in payments and enhance the efficiency of grassroots administration.
- Convergence with Other Government Initiatives: MGNREGA should be strategically aligned and integrated with other government schemes, such as the Green India initiative and Swachh Bharat Abhiyan.
- This convergence will maximize the impact and effectiveness of these programs, fostering a synergistic approach towards holistic rural development.
French President Emmanuel Macron to be chief guest for 2024 Republic Day parade (Indian Express)
- 23 Dec 2023
Why is it in the News?
FRENCH President Emmanuel Macron will visit India as Chief Guest for the 75th Republic Day celebrations, the Ministry of External Affairs said Friday, days after it became clear that US President Joe Biden will be unavailable.
Context:
- The Ministry of External Affairs in India has announced that French President Emmanuel Macron is set to honour the 75th Republic Day celebrations as the Chief Guest.
- This decision comes in the wake of the unavailability of US President Joe Biden, marking the sixth occasion where a French leader will partake in the Republic Day festivities.
An Overview of Bilateral Relations Between France and India:
- Since the establishment of diplomatic ties in 1948, India and France have enjoyed 75 years of close and friendly relations.
- In 1998, India and France elevated their diplomatic relationship to a Strategic Partnership which completed 25 years in January 2023.
- This Strategic Partnership, the first for France outside the EU, has been instrumental in the comprehensive growth of the India-France relationship.
Key Elements of India-France Cooperation:
- Economic Ties: Both nations share substantial bilateral investments and engage in trade and commercial cooperation, particularly in sectors like IT corridors, smart cities, railways, capital and trade exchanges, and skill development.
- Bilateral trade witnessed a notable 7.72% increase, reaching $13.4 billion in 2022-23
- Defence Partnership: The Agreement on Defence Cooperation, initially signed in 2006 and extended for an additional decade in 2016, serves as the overarching framework for all collaborative defence activities between India and France.
- Space Collaboration: The Indian Space Research Organisation (ISRO) and the French Space Agency (CNES) collaborate on various joint research programs and satellite launches.
- An example is the successful launch of the GSAT-24 communication satellite in June 2022.
- Civil Nuclear Cooperation: Formalized in 2008, the agreement on civil nuclear cooperation endorses joint efforts.
- India's involvement in ITER, a multinational initiative constructing an experimental fusion reactor in Cadarache, France, further solidifies this partnership.
- Trilateral Engagements: Beyond bilateral discussions, both nations engage in separate trilateral institutional exchanges, with India participating in dialogues alongside Australia and France collaborating with the UAE.
- Marine and Maritime Partnership: The Indo-French Maritime Cooperation, guided by the India-France Roadmap on Blue Economy and Ocean Governance adopted in 2022, underscores joint efforts in marine and maritime domains.
- Digital Collaboration: The India-France Roadmap on Cybersecurity and Digital Technologies, a result of the 2019 visit by the Prime Minister of India to France, underlines the commitment to digital cooperation.
- Cultural and Tourism Relations: Numerous Indo-French cultural associations orchestrate events across France.
- For instance, the 'Namaste France' cultural festival organized by the Government of India in 2016 showcased the rich cultural tapestry.
- Indian Community in France: Comprising around 109,000 individuals, including NRIs, the Indian community in mainland France has roots in French enclaves like Puducherry, Karaikal, Yanam, Mahe, and Chandernagore.
- Unified Stand on NATO+: Both nations share a stance against the NATO-plus partnership plans, with France publicly expressing disapproval and India rejecting the notion, emphasizing that NATO is not a template applicable to its geopolitical context."
Agreement Between India and France on Various Global and Regional Matters:
- UN Security Council and UN Reforms: France has consistently endorsed India's pursuit of a permanent seat on the UN Security Council and the broader reforms within the United Nations.
- Support in International Groups: France played a crucial role in India's inclusion in significant international forums such as the Missile Technology Control Regime (MTCR), Wassenaar Arrangement (WA), and Australia Group (AG).
- Furthermore, France continues to back India's bid to join the Nuclear Suppliers Group (NSG).
- Reciprocal Support in Regional Organizations: India actively supported France's membership in the Indian Ocean Rim Association (IORA), and in turn, France backed India's observer status in the Indian Ocean Commission (IOC).
- Joint Efforts Against Terrorism: Both nations have consistently condemned terrorism and are committed to collaborating for the adoption of the Comprehensive Convention on International Terrorism (CCIT) within the United Nations framework.
- Shared Concerns on Climate Change: There is a significant convergence of views between India and France on issues related to climate change, renewable energy, and sustainable development.
- An illustrative instance is the joint announcement of the creation of the International Solar Alliance (ISA) during the 2015 Paris COP21.
- This alliance aims to promote solar energy as a crucial resource in transitioning away from fossil fuels.
Challenges in the Bilateral Relationship:
- Trade Limitations: Although the diplomatic relations between France and India are positive, the absence of a Free Trade Agreement (FTA) poses a hurdle, restricting the full realization of trade potential.
- Additionally, the slow progress on the India-EU Broad-Based Trade and Investment Agreement (BTIA) exacerbates this challenge.
- Divergent Approaches in Defence and Security Cooperation: Despite a robust defence partnership, differences in priorities and approaches between India and France may influence their defence and security cooperation.
- India's regional focus and adherence to a "non-aligned" policy could occasionally clash with France's global interests.
- Intellectual Property Rights Concerns: France has expressed apprehensions regarding India's perceived inadequate protection of intellectual property rights.
- This concern has implications for French businesses operating within India, creating a point of contention in the bilateral relationship.
Importance of India’s Invitation to the French President for the 75th Republic Day Celebrations:
- The selection of the French President as the chief guest for the 75th Republic Day celebrations in New Delhi is driven by a multifaceted set of considerations, incorporating strategic, diplomatic, business, global geopolitical, and bilateral engagement imperatives.
- This year holds particular significance as both nations commemorate the 25th anniversary of the India-France Strategic Partnership.
- The reciprocal nature of high-level visits underscores the strength of the relationship: the Indian Prime Minister was the Guest of Honour at the Bastille Day Parade in Paris on July 14, 2023, and President Macron visited India for the G-20 Summit on September 8-9, 2023.
- Notably, in 2022, the Indian Prime Minister made a special stopover in Paris, marking the first meeting between world leaders and President Macron after his re-election for a second term.
- This visit followed the Indian PM's return from Denmark.
- In essence, India's invitation to the French President serves as a significant gesture, symbolizing and reinforcing the profound depth of the bilateral relationship between the two nations.
Good Governance Day: Last-mile delivery, leaving no one behind is key to growth (Indian Express)
- 25 Dec 2023
Why is it in the News?
Good Governance Day 2023 is being celebrated today on the birth anniversary of former Prime Minister Atal Bihari Vajpayee, which falls on December 25th.
About Good Governance Day:
- December 25 marks the birth anniversary of the late Prime Minister and Bharatiya Janata Party leader, Atal Bihari Vajpayee.
- Origin: In 2014, the Prime Minister of India Narendra Modi declared December 25 as "Good Governance Day" to be celebrated nationwide.
Significance of Good Governance Day:
- Raising Governance Awareness: Good Governance Day aims to raise awareness among citizens regarding government accountability and efficient administration.
- Equitable Treatment of Citizens: This day emphasizes the fair and prompt delivery of various government services to ensure equitable treatment for the country's residents.
- Advancement of e-Governance: National Good Governance Day endeavors to advance "e-Governance" with the official event slogan being "Good Governance through e-Governance.
What is Good Governance?
- Governance encompasses the decision-making process and the subsequent implementation (or lack thereof) of those decisions.
- It manifests in various contexts, including corporate governance, international governance, national governance, and local governance.
- It is characterized as "the manner in which power is exercised in the management of a country's economic and social resources for development."
- This concept, rooted in historical perspectives, was elaborated by Chanakya in the Arthashastra.
- Foundation of Citizens Centric Administration: The cornerstone of a citizens-centric administration lies in the principles of good governance, emphasizing transparency, accountability, and equitable societal development.
8 Principles of Good Governance:
- Participation: Ensures the inclusion of diverse perspectives, including men, women, vulnerable sections, backward classes, minorities, etc.
- Upholds freedom of association and expression.
- Rule of Law: Impartial enforcement of the legal framework, particularly in human rights laws.
- A foundation for preventing the 'law of fish,' where the strong prevail over the weak.
- Consensus Oriented: Facilitates decision-making that aims for a common minimum acceptable to everyone, fostering a broad consensus.
- Mediates differing interests toward a mutually beneficial outcome.
- Equity and Inclusiveness: Strives for an equitable society, ensuring opportunities for all to enhance or maintain their well-being.
- Effectiveness and Efficiency: Focuses on processes and institutions that yield results meeting the community's needs.
- Maximizes the effective utilization of community resources for optimal output.
- Accountability: Demands accountability from governmental institutions, private sectors, and civil society organizations to the public and institutional stakeholders.
- Aims for governance that serves the betterment of the people.
- Transparency: Requires accessible, understandable, and monitored information.
- Advocates for a free media and public access to information.
- Responsiveness: Dictates that institutions and processes serve all stakeholders within a reasonable timeframe.
What is the Significance of Good Governance?
- Safeguarding Public Interests: The implementation of good governance practices is crucial for safeguarding the interests of the public.
- Optimal Resource Utilization: Good governance empowers organizations to maximize the efficient utilization of available resources, facilitating the delivery of high-quality services.
- Ensuring Checks and Balances: Through good governance practices, mechanisms are established to prevent the undue exercise of power and authority, maintaining a system of checks and balances.
- Facilitating Public Engagement: The active involvement of the public in the governance process becomes achievable when good governance practices are firmly in place.
What are the Challenges to Good Governance in India?
- Corruption: The pervasive level of corruption in India is widely recognized as a substantial impediment to enhancing the quality of governance.
- Empowerment of Women: The inadequate representation of women in government institutions and related sectors poses a significant challenge to achieving gender equality.
- Delayed Justice: Ensuring timely justice for citizens is a fundamental right, but numerous factors, such as a shortage of personnel and logistical resources within the legal system, contribute to delayed justice.
- Criminalization of Politics: The intertwining of the political process with criminal elements and the collaboration between politicians, civil servants, and business entities negatively impact public policy formulation and governance.
- Centralization of Administrative System: Efficient functioning of lower-level governments, particularly Panchayati Raj Institutions (PRIs), depends on adequate empowerment.
- The existing challenges involve insufficient devolution of funds and personnel to carry out constitutionally assigned functions.
What are the Initiatives for Enhancing Good Governance in India?
- National e-Governance Plan: With a vision to make government services easily accessible to the common man, the National e-Governance Plan aims to ensure efficiency, transparency, and reliability of services at affordable costs.
- The plan focuses on meeting the basic needs of the public through widespread service delivery outlets.
- Good Governance Index (GGI): Launched by the Ministry of Personnel, Public Grievances & Pensions, GGI serves as a comprehensive tool to evaluate the state of governance in the country.
- It systematically analyzes the impact of various interventions initiated by State Governments and Union Territories.
- Right to Information Act, 2005: This crucial legislation plays a pivotal role in fostering transparency within governance by granting citizens the right to access information.
- The Right to Information Act, 2005, empowers individuals to seek and receive information, contributing to a more transparent and accountable system.
About Atal Bihari Vajpayee
- Atal Bihari Vajpayee, the 10th Prime Minister of India, distinguished himself not only as a statesman but also as a revered poet and literary figure.
- His association with the Rashtriya Swayamsevak Sangh (RSS), the ideological precursor of the BJP, further shaped his political journey.
- Early Life: Born on December 25, 1924, in Gwalior, Madhya Pradesh, Vajpayee joined the RSS in 1939, transitioning into a full-time role in 1947.
- His literary prowess led him to collaborate with Deen Dayal Upadhyaya on various publications, marking the beginning of his impactful career.
- Political Ascension: Vajpayee assumed the role of national president of the Jana Sangh in 1968 following Deen Dayal Upadhyaya's demise.
- His political journey commenced with his election to the Lok Sabha from the Balrampur seat in the 1957 general election, where his eloquence positioned him as a defender of Jana Sangh's policies.
- Key Political Milestones: Post-emergency, Vajpayee played a vital role in the formation of the Janata Party, securing victory in the 1977 general elections and subsequently serving as the External Affairs Minister.
- The transformation of Jana Sangh into the Bharatiya Janata Party (BJP) in 1980 marked a significant phase under his leadership, with the party gaining electoral prominence.
- Political Tenures: Vajpayee's political career saw him elected ten times to the Lok Sabha and twice to the Rajya Sabha, representing constituencies such as Balrampur, New Delhi, Gwalior, and Lucknow.
- His administrative journey commenced as the External Affairs Minister in 1975, with commendation for his UN General Assembly speech in Hindi.
- Prime Ministerial Stints: Vajpayee served as the Prime Minister of India in three distinct tenures:
- A brief 13-day term in 1996
- 13-month period from 1998 to 1999, and
- A full term from 1999 to 2004.
- Notable Achievements: Vajpayee's administration left an indelible mark with achievements such as the Pokhran Nuclear Test, success in the Kargil War, the implementation of the Golden Quadrilateral project, the Pradhan Mantri Gramin Sadak Yojana, and the Sarva Siksha Abhiyaan.
- Diplomatic Outreach: Vajpayee's diplomatic efforts included a groundbreaking bus journey to Lahore to meet with Pakistani Prime Minister Nawaz Sharif, signaling a commitment to improving relations.
- Honors and Recognition: Atal Bihari Vajpayee was bestowed with prestigious honors, including the Bharat Ratna in 2015, recognition for his role in the Bangladesh Liberation War, and the Order of Ouissam Alaouite from Morocco.
- Additionally, the Government of India designated his birth anniversary as Good Governance Day in 2014.
WHO prequalifies a second malaria vaccine, a significant milestone in preventing the disease (WHO)
- 22 Dec 2023
Why is it in the News?
The World Health Organization (WHO) on Thursday added the R21/Matrix-M malaria vaccine, developed by Oxford University and manufactured by Serum Institute of India, to its list of prequalified vaccines.
News Summary:
- The R21/Matrix-M malaria vaccine, developed by Oxford University and produced by the Serum Institute of India, has received prequalification from the World Health Organization (WHO), marking a significant step in global efforts to combat malaria.
- This achievement follows the prequalification of the RTS, S/AS01 vaccine in July 2022, making R21 the second malaria vaccine to gain the WHO's approval.
- Prequalification means larger access to vaccines as a key tool to prevent malaria in children.
- The WHO employs rigorous international standards during the prequalification process, conducting a comprehensive evaluation to ensure the safety, efficacy, and adherence to global manufacturing standards of the vaccines.
- Ongoing measures, such as regular re-evaluation, site inspections, and targeted testing, are implemented to uphold prequalified vaccines’ continued safety and effectiveness.
What is a Prequalified Vaccine?
- The World Health Organization (WHO) defines a prequalified vaccine as one that has successfully completed a comprehensive three-step process prior to approval.
- Thorough Data Evaluation: The first step involves a meticulous examination of relevant data associated with the vaccine.
- Sample Testing: The second step includes rigorous testing of vaccine samples.
- Manufacturing Site Inspection: The final step encompasses an inspection of the pertinent manufacturing sites by WHO.
- Only when the outcomes of these steps are positive does the vaccine earn inclusion in the WHO list of Prequalified Vaccines?
What is Malaria?
- Malaria is an infectious disease caused by the Plasmodium parasite, transmitted to humans through the bites of infected female Anopheles mosquitoes, which are active mainly during the night.
- While there are numerous types of Plasmodium parasites, only five affect humans and cause malaria.
- Plasmodium falciparum: Predominantly found in Africa, it is the most common and lethal malaria parasite globally, responsible for the majority of malaria-related deaths.
- Plasmodium vivax: Primarily found in Asia and South America, this parasite causes milder symptoms than Plasmodium falciparum but can persist in the liver for up to three years, leading to potential relapses.
- Plasmodium ovale: Relatively uncommon and typically found in West Africa, this parasite can remain dormant in the liver for several years without causing symptoms.
- Plasmodium malariae: Rare and primarily found in Africa.
- Plasmodium knowlesi: Extremely rare and identified in certain parts of Southeast Asia.
Malaria Transmission:
- Upon being bitten by an infected mosquito, the Plasmodium parasite enters the bloodstream, travels to the liver, and matures.
- It then re-enters the bloodstream, invading red blood cells where it undergoes multiplication.
- Periodically, infected blood cells burst, releasing more parasites into the bloodstream.
- While mosquitoes can become infected by biting an already infected person, malaria does not spread directly from person to person.
Symptoms of Malaria:
- The signs and symptoms of malaria encompass fever, chills, general discomfort, headache, nausea, vomiting, diarrhoea, abdominal pain, muscle or joint pain, fatigue, rapid breathing, rapid heart rate, and cough.
- Recognizing these symptoms is crucial for prompt diagnosis and treatment.
What is the Status of Malaria in India?
- Given its predominantly tropical climate, a significant portion of India has a historical prevalence of malaria, and the country holds the distinction of being where Nobel Prize winner Sir Ronald Ross discovered the malaria parasite cycle involving Anopheles mosquitoes as the definitive host.
- While India has made substantial progress in the direction of malaria elimination, there remains a considerable journey ahead.
- According to the World Malaria Report 2023, India contributed to 66% of malaria cases within the World Health Organization’s South-East Asia region in 2022.
- Additionally, India and Indonesia jointly accounted for approximately 94% of all malaria-related deaths in the region last year.
- The report highlighted that nearly 46% of all cases in the region were attributed to Plasmodium vivax, a protozoal parasite and human pathogen.
What are the Challenges in Malaria Elimination?
- Eliminating malaria in India faces several challenges, primarily stemming from the predominant engagement of the private sector in diagnosing and treating the disease.
- This sector often encounters issues related to misdiagnosis and mistreatment.
Key challenges include:
- Limited Regulation in the Private Sector: Private doctors and clinics operate without an obligation to adhere to government guidelines, utilize recommended drugs, or report malaria cases to state authorities.
- Disproportionate Malaria Treatments in the Private Sector: In 2015, a substantial 86 million malaria treatments were procured in the private sector, in stark contrast to the meagre 2 million in the public sector.
- Proliferation of Artemisinin Monotherapy: The private sector annually acquires nearly 10 million injections of Artemisinin Monotherapy, a treatment strongly discouraged in India and globally due to its role in accelerating the development of lethal drug resistance.
- Irony of Drug Misuse: Remarkably, India, the largest supplier of high-quality approved malaria drugs globally, grapples with the ironic misuse of malaria drugs within its own borders.
Challenges in Creating a Malaria Vaccine:
The progress toward developing a malaria vaccine encounters various impediments:
- Absence of a Conventional Market: The absence of a conventional market poses a significant hindrance to the development of a malaria vaccine.
- Limited Developer Engagement: The involvement of only a few developers further complicates the landscape for malaria vaccine development.
- Technical Complexity: The technical intricacies associated with creating a vaccine against a parasitic infection, such as malaria, present substantial challenges.
- Complexity of Malaria Parasites' Life Cycle: Malaria parasites exhibit a complex life cycle, and there exists a limited understanding of the intricate immune response to malaria infection.
- Genetic Complexity of Malaria Parasites: The genetic complexity of malaria parasites, generating thousands of potential antigens, adds an additional layer of difficulty to the development of an effective vaccine.
Initiatives Taken by India for Malaria Eradication:
- Since 2000, India has successfully reduced malaria cases by more than half and malaria-related deaths by over 66%.
- In 2016, the country introduced its inaugural National Framework for Malaria Elimination (2016-2030), outlining a vision for a malaria-free nation by 2027 with complete elimination targeted by 2030.
- In 2019, the Government of India demonstrated its commitment by increasing funding for the National Vector Borne Disease Control Programme by over 25%.
- Furthermore, India augmented its support as a donor to the Global Fund to Fight AIDS, Tuberculosis, and Malaria, reaffirming its dedication to combating these vector-borne diseases on a global scale.
Lok Sabha passes three criminal law Bills: Here are the key changes (Indian Express)
- 21 Dec 2023
Why is it in the News?
Three new criminal code bills, focusing on justice rather than punishment, were passed by the Lok Sabha on Wednesday.
Context:
- Lok Sabha has passed by voice vote the three Bills that aim to overhaul the country's criminal justice system by replacing colonial-era laws.
- The three bills passed are:
- The Bharatiya Nyaya (Second) Sanhita - replace the Indian Penal Code (IPC)
- Bharatiya Nagarik Suraksha (Second) - replace Code of Criminal Procedure (CrPC)
- Bharatiya Sakshya (Second) Sanhita - replace the Indian Evidence Act
- According to the Home Minister, Amit Shah, the three new bills seek to establish a justice system based on Indian thinking and will free people from the colonial mindset and its symbols.
Background:
- Bill Presentation in August 2023: In August 2023, the Union government introduced three Bills in Parliament intending to revitalize the country's criminal justice system.
- The Bills in question were the Bharatiya Nyaya Sanhita Bill, 2023 (BNS), the Bharatiya Nagarik Suraksha Sanhita Bill, 2023 (BNSS), and the Bharatiya Sakshya Bill, 2023 (BSB).
- Referral to Parliamentary Standing Committee: The three Bills underwent scrutiny as they were referred to the Parliamentary Standing Committee on Home Affairs for a thorough review and recommendations.
- After three months of meticulous deliberation, the committee released reports on each Bill—BNS, BNSS, and BSB—suggesting necessary changes.
- Opposition Dissent on Hindi Titles: A notable point of contention arose during the committee's proceedings, particularly regarding the Hindi nomenclature of the Bills.
- Opposition members contested that the vernacular titles contravened Article 348, which stipulates English as the official language for courts and legislative matters.
- Despite opposition dissent, the parliamentary committee sanctioned the Hindi titles for all three Bills.
- Introduction of Revised Versions: After the committee's recommendations, on December 12, the three Bills were withdrawn from Parliament.
- In a prompt response, revised iterations of the Bills were promptly introduced for further consideration.
Why were new bills deemed necessary?
- Colonial Legacy: From 1860 to 2023, the nation's criminal justice system operated under British-imposed laws.
- These laws, formulated during colonial times, use outdated language and concepts that may not accurately represent current social norms and values.
- Advances in Technology: The evolution of technology has introduced new aspects to crime, evidence, and investigation, necessitating a response from the legal framework.
- Simplification and Streamlining: Over time, the laws have become intricate, confusing legal practitioners, law enforcement agencies, and the general public.
- Simplifying and streamlining the legal framework is seen as a way to enhance transparency and understanding.
- Evidence Collection and Presentation: The Indian Evidence Act predates the era of modern forensic science and technological tools, highlighting the need for an update in this regard.
- Reports and Recommendations: Various reports, including those from the department-related Parliamentary Standing Committee on Home Affairs (146th report), emphasized the necessity for a comprehensive review of the country's criminal justice system.
- Earlier reports (111th and 128th) had also underscored the need for reforms in criminal laws.
About Bharatiya Nyaya (Second) Sanhita (BNS II) Bill, 2023:
The BNS II Bill brings about significant modifications in the treatment of various offences, including criminal conspiracy, mob lynching, death by negligence, organized crimes, and terrorist acts.
- Life Imprisonment: While the BNS defined life imprisonment as 'imprisonment for life,' BNS II retains this phrase alongside the newer definition.
- Terrorist Acts: BNS II removes vague language, focusing on innovative acts such as damaging critical infrastructure, undermining monetary stability, and using force against public functionaries.
- Terrorist Act Offenses: In BNS II, the possession of property derived from a terrorist act is punishable only if acquired 'knowingly.'
- Harboring a person who committed a terrorist act is punishable if done 'knowingly' or 'voluntarily.'
- Criminal Conspiracy: BNS II modifies Clause 61 to include conspiracy with 'common intention.'
- Mob Lynching: The minimum punishment of seven years for mob lynching, as in BNS, is removed in BNS II.
- Murder by a group based on identity markers incurs life imprisonment or death, plus a fine.
- Organized Crimes: BNS II adds organized crimes, including kidnapping, extortion, and cybercrime committed on behalf of a syndicate. Petty organized crime is also now an offence.
- Changes in Offenses: Sedition is no longer an offence in BNS II, replaced by a new offence endangering the sovereignty, unity, and integrity of India.
- Community service is explicitly defined as court-ordered work benefiting the community, and serving as a punishment for offenders.
- Supreme Court Conformity: BNS II aligns with Supreme Court decisions, omitting adultery as an offence and introducing life imprisonment as a penalty for murder or attempt to murder by a life convict.
- Sexual Offenses: BNS II retains provisions from the Indian Penal Code (IPC) on sexual offences against women, increasing the age threshold for major classification in gang rape from 16 to 18 years.
- It criminalizes sexual intercourse with a woman through deceitful means or false promises.
About Bharatiya Nagarik Suraksha (Second) Sanhita (BNSS2) Bill, 2023:
- The Bharatiya Nagarik Suraksha (Second) Sanhita, 2023 (BNSS2) is designed to supplant the Criminal Procedure Code, 1973 (CrPC), which delineates the procedures for arrest, prosecution, and bail within the Indian legal framework.
- The CrPC, originally enacted in 1861 to streamline India's diverse legal systems, underwent a significant overhaul in 1973.
- The comprehensive revision led to the introduction of the present CrPC, incorporating changes such as the provision for anticipatory bail.
- The BNSS2 Bill aims to introduce several amendments to the existing CrPC framework, particularly addressing aspects related to trials, investigations, and other procedural matters.
- The proposed changes reflect an effort to modernize and enhance the efficiency of the criminal justice system in alignment with contemporary needs.
Key Features of the Bharatiya Nagarik Suraksha (Second) Sanhita (BNSS2) Bill, 2023:
- Detention of Undertrials: According to the BNSS2, the provision of releasing an accused on a personal bond after spending half of the maximum imprisonment period does not apply to offences punishable by life imprisonment or if proceedings are pending in more than one offence.
- Medical Examination: Unlike the CrPC, which restricts medical examinations to certain cases, the BNSS2 expands the scope, allowing any police officer to request an examination, broadening accessibility.
- Forensic Investigation: The BNSS2 introduces a mandatory forensic investigation for offences carrying a minimum sentence of seven years.
- Forensic experts are empowered to collect evidence on-site, documented through mobile phones or electronic devices.
- In the absence of local facilities, states can utilize facilities in other states.
- Signatures and Finger Impressions: While the CrPC empowers magistrates to order specimen signatures or handwriting, the BNSS2 extends this to include finger impressions and voice samples.
- Notably, these samples can be collected from individuals not yet arrested.
- Timelines for Procedures: The BNSS2 establishes clear timelines for various procedures.
- For instance, medical practitioners examining rape victims must submit their reports to the investigating officer within seven days, ensuring a more expedited legal process.
Bharatiya Sakshya (Second) Bill, 2023:
- Admissibility of electronic evidence: Section 61 of the original Bill allowed the admissibility of electronic evidence by underscoring that an electronic record shall have the same legal effect as a paper record.
- However, there was no requirement for a certificate under section 63 (corresponding to the requirement of a certificate under section 65B of the Indian Evidence Act).
- This provision has now been revised to state that the admissibility of an electronic record is subject to section 63.
Criticism of the Bill:
Experts have flagged that the three revised Bills present a missed opportunity to rectify extensive overcriminalisation and wider police powers that aggravate state control.
- The provision of the Bharatiya Nagarik Suraksha (Second) Sanhita, 2023, which permits police custody beyond the initial 15 days of arrest endangers civil liberties.
- The massive expansion of the possible duration of police custody in the BNSS strikes at the very heart of civil liberties protection.
- The BNSS expands the maximum limit of police custody under general criminal law from 15 days to either 60 days or 90 days (depending on the nature of the offence).
- Under current law, police custody is limited to the first 15 days of arrest.
- The expansion under the proposed BNSS heightens the risk of exposure to police excesses.
- Given widely acknowledged concerns about the safety of arrested persons in police custody, and the heightened risk of coerced and fabricated evidence after prolonged detention, this provision of the BNSS is a shocking expansion of police powers.
In a creative interpretation of Article 200, the Chief Justice of India’s recent judgment has also protected the entire constitutional system from the depredations of Governors (The Hindu)
- 20 Dec 2023
Why is it in the News?
CJI Chandrachud creatively interprets Article 200 in a landmark ruling on the Governor's role in bill assent, State of Punjab vs Principal Secretary, November 10, 2023.
Context:
- On November 10, 2023, the Chief Justice of India (CJI) delivered a significant judgment in the case of State of Punjab vs Principal Secretary to the Governor of Punjab, offering an interpretation of Article 200 of the Indian Constitution.
- The focal point was the first provision of Article 200, addressing a Governor's choices when presented with a Bill for assent following its passage by the State Legislature.
Article 200 Of The Indian Constitution:
- Article 200 of the Indian Constitution delineates four possible actions for a Governor when a legislature-passed Bill is submitted for assent.
- These actions include:
- Give his assent
- Withhold his assent
- Return the bill for reconsideration
- Reserve the bill for the President’s consideration (In instances where the bill introduced in the state legislature endangers the position of the state High Court.)
- If the legislature reapproves the Bill with or wthout any amendment, the Governor must grant assent.
- Alternatively, the Governor may reserve the Bill for the President's consideration, and the President then decides whether to grant or withhold assent under Article 201.
- Notably, no specific timeframe is specified for the President's decision on the Bill.
Perspectives on the Discretionary and Absolute Nature of the Governor's Power:
- Most of the commentators of the Constitution, like D.D. Basu and others, have held the view that the Governor’s power to withhold assent under this Article has a finality about it, and once assent is withheld, the Bill dies a natural death.
- They were also of the view that the option of sending the Bill back to the Assembly for reconsideration under the first proviso is discretionary and not mandatory.
Interpretation of Article 200 Pronounced by the CJI:
- The recent interpretation of Article 200 by the Chief Justice of India (CJI) introduces a distinct viewpoint.
- Unlike the traditional understanding, the CJI associates the act of withholding assent with mandatory reconsideration.
- This interpretation challenges the presumption of the Governor's absolute authority to withhold assent.
- According to the CJI's judgment, the Governor's decision to withhold assent is coupled with the obligation to promptly return the Bill to the Assembly for an immediate reevaluation.
- In this context, the judgment asserts that, once the Governor chooses to withhold assent, the sole recourse is to send the Bill back to the Assembly for swift reconsideration, leaving the Governor with no alternative but to eventually grant assent.
- This nuanced interpretation aligns with the imperative of ensuring a deliberate and obligatory reconsideration process when the Governor opts to withhold assent to a legislative Bill.
The Importance of the CJI’s Interpretation:
- Preserving Legislative Rights: This ruling, coupled with the Chief Justice of India's approach, safeguards the legislature's authority in the law-making process, preventing potential misuse by appointed Governors and upholding the constitutional system.
- Evolution in Understanding Governor’s Powers: The CJI's interpretation signifies a progression in comprehending the Governor's powers, underlining the necessity for continual assessment and refinement of constitutional interpretations.
- Enhanced Clarity in Article 200: The Supreme Court of India has unequivocally stated that Governors cannot delay the decision on the Bills.
- Consequently, the top court's verdict has brought increased clarity to Article 200, compelling Governors to promptly decide on presented Bills.
Issues Still Regarding the Governor's Power:
- Reservation of Bills for President's Consideration: A potential area for exploitation by Governors remains in reserving Bills for the President's consideration, providing an absolute option.
- The critical query pertains to the types of Bills Governors can forward to the President, with the second provision of Article 200 specifying Bills that must mandatorily be reserved.
- These are Bills that deviate from the powers of the High Court, jeopardizing its constitutionally designated role.
- Lack of Categorization for Bills: The Constitution lacks a reference to specific categories of Bills for the President's consideration.
- Consequently, Governors may seemingly exercise discretion in sending any Bill to the President.
- Recent instances, such as in Kerala, where the Governor withheld action on eight Bills for over two years, or in Tamil Nadu, where Bills were sent to the President against the Constitution after reconsideration by the Assembly, highlight the absence of clear categorization.
- Ambiguities in Governor's Actions: The Constitution's ambiguity allows Governors to act in ways that may contradict its provisions, as seen in instances where Bills were sent to the President against the Constitution's mandate.
- Such actions place the fate of Bills in the hands of Union government officials, raising concerns about the potential misuse of gubernatorial discretion.
Evaluation of Constitutional Aspects Regarding Governor's Authority in Reserving Bills:
- Constitutional Framework: In the current political context, there arises a significant inquiry into a Governor's discretion in reserving Bills for the President's consideration, a matter not explicitly addressed in the Constitution.
- Implicit References: Two constitutional provisions indirectly touch upon this issue—Article 213 deals with ordinance-making powers and Article 254(2) concerning State laws in the Concurrent List.
- Article 213 empowers Governors to issue ordinances with presidential instructions when deeming it necessary to reserve a Bill's provisions.
- This implies a requirement for Governors to exercise judgment within the constitutional framework.
- The use of "deemed it necessary" suggests that Governors are expected to follow constitutional principles rather than acting arbitrarily in deciding to reserve Bills.
- Article 254(2) states that State laws on Concurrent List items prevail with presidential assent, even if conflict with existing central laws.
- It indicates that a Bill on a Concurrent subject requires presidential assent only if it contradicts central laws; it does not mandate sending every such Bill to the President.
- Presidential Jurisdiction and Governor's Duty on State Subjects: In the federal legislative structure, the President lacks authority to scrutinize and assent to Bills exclusively related to State subjects, underscoring the Governor's constitutional responsibility.
- Sending a Bill on State matters to the President might be viewed as an abdication of the Governor's constitutional duty, given that State List subjects are beyond the President's purview.
Conclusion
The absence of explicit provisions raises constitutional uncertainties concerning a Governor's discretionary authority in reserving Bills for the President. As constitutional interpretations evolve, there's a demand for clarity on the scope of a Governor's discretion in reserving Bills, aligning with federal principles and legislative autonomy. It's crucial to note that a Governor is not personally accountable for government actions, and the constitutional validity of a law falls within the court's jurisdiction, beyond the influence of the Governor or President.
PM Modi is in Varanasi to participate in the Viksit Bharat Sankalp Yatra events, and inaugurate the second edition of the Kashi Tamil Sangamams (Indian Express)
- 18 Dec 2023
Why is it in the News?
PM Modi recently participated in the Viksit Bharat Sankalp Yatra events and inaugurated the second edition of Kashi Tamil Sangamam in Varanasi.
What is Viksit Bharat Sankalp Yatra?
- The Viksit Bharat Sankalp Yatra is a government initiative being undertaken across the country, to raise awareness about and track the implementation of flagship central schemes, such as Ayushman Bharat, Ujjwala Yojana, PM Suraksha Bima, PM SVANidhi, etc.
- On the occasion of the Janjatiya Gaurav Divas, marking the birth anniversary of tribal icon Birsa Munda, Prime Minister Modi flagged off the Viksit Bharat Sankalp Yatra from Khunti, Jharkhand.
- It has four aims:
- Reach out to the vulnerable who are eligible under various schemes but have not availed of benefits so far.
- Dissemination of information and generating awareness about schemes.
- Interaction with beneficiaries of government schemes through their personal stories/ experience sharing; and
- Enrolment of potential beneficiaries through details ascertained during the Yatra.
- The program involves various Union ministries and state governments.
- In a short span of one month, the Yatra has reached over 2.50 crore citizens across 68,000 Gram Panchayats, with nearly 2 crore individuals taking the Viksit Bharat Sankalp.
What is Kashi Tamil Sangamam?
- Kashi Tamil Sangamam celebrates many aspects of the historical and civilisational connection between South and North India.
- Aligned with the National Education Policy 2020, which emphasizes cultivating a modern yet culturally rooted mindset, the policy encourages the fusion of traditional Indian Knowledge Systems with contemporary knowledge.
- This integration has yielded enriching outcomes, such as incorporating Yoga and Ayurveda into modern medicine, employing technology for traditional crafts, blending ancient Vaastushilpa with modern archaeology, and creatively interpreting classical Raagas.
- Recognizing the value of rediscovering and integrating ancient knowledge into modern thinking, the month-long Kashi-Tamil Sangamam has been initiated.
- This endeavour promotes direct interaction among scholars, experts, and practitioners from diverse fields, fostering the exchange of expertise and best practices.
About Kashi-Tamil Sangamam:
- An initiative by the Government of India under the "Azadi ka Amrit Mahotsav" and in line with the "Ek Bharat Shreshta Bharat" spirit, Kashi-Tamil Sangamam underscores unity amid the cultural diversity of states and Union Territories.
- The program aims to celebrate, reaffirm, and rediscover the enduring connections between Tamil Nadu and Kashi, two ancient seats of learning.
- This initiative provides a platform for individuals from various walks of life, including scholars, students, and philosophers, from both regions to converge, share their knowledge, culture, and best practices, and learn from each other's experiences.
- IIT Madras and BHU serve as the implementing agencies for the program.
- Following the inaugural edition in 2022, this year's Kashi-Tamil Sangamam is scheduled to take place from December 17 to December 31.
Cultural Significance:
- In the 15th century, King Parakrama Pandya, the ruler of the Madurai region, aspired to construct a temple dedicated to Lord Shiva.
- To fulfil this vision, he embarked on a journey to Kashi (Uttar Pradesh) to acquire a lingam.
- During his return journey, he paused to rest under a tree.
- To his surprise, when he attempted to resume the journey, the cow carrying the lingam steadfastly refused to move.
- Recognizing this as a divine sign, Parakrama Pandya chose to install the lingam at that very spot, giving rise to what is now known as Sivakasi in Tamil Nadu.
- For those unable to make the pilgrimage to Kashi, the Pandyas thoughtfully erected the Kasi Viswanathar Temple in present-day Tenkasi, situated in the southwestern part of Tamil Nadu near the state's border with Kerala.
What is the reason for choosing Tamil Nadu and Kashi?
- Despite their geographical separation, Kashi and Tamil Nadu share profound and vibrant historical connections that have endured through the centuries.
- Renowned as embodiments of Indian culture, these regions have been revered by many for their cultural richness.
- Historically, seekers of knowledge from various places, including Kashi, Prayagraj, Ayodhya, and Gorakhpur, in the north, and Kanchipuram, Puducherry, Madurai, Thanjavur, Rameshwaram, Srirangam, Kanyakumari, Thoothukudi, Tirunelveli, and the Tamraparani River in the south, have been drawn to these regions as significant knowledge hubs.
- The ancient ties between these two knowledge centres are evident in various aspects of life, including recurring themes in literature and the presence of the name "Kashi" in numerous villages in Tamil Nadu.
- Notably, Saint Kumaragurupara from Tamil Nadu showcased audacity in negotiating with the Sultanate of Kashi, even bringing a lion to his courtyard to reclaim Kedarghat and secure a site for the consecration of the Vishweshwara Lingam.
- His literary contribution, "Kashi Kalambakam," is a grammatical composition of poems on Kashi.
- King Adhiveera Rama Pandiyan of the Pandya Dynasty, after a pilgrimage to Kashi, dedicated a Shiva Temple in Tenkasi, Tamil Nadu, and composed "Kashi Kandam," a Skanda Purana in Tamil poetic verses.
- Exploring and rediscovering the profound links between these two centres promises to yield essential knowledge in both intellectual and practical domains.
78 Opposition MPs suspended, most ever in a day: Why this happened, what Parliament rules say (Indian Express)
- 19 Dec 2023
Why is it in the News?
In a major escalation of tensions between the Opposition and the government, 78 MPs were suspended from both Houses of Parliament on Monday, taking the total number of suspended MPs in this session to 92, both figures unprecedented in the history of the Indian Parliament. Opposition leaders termed it a “murder of democracy.”
Why were the MPs suspended?
- The MPs in both Houses were suspended for disrupting Parliamentary proceedings while protesting the December 13 Parliament security breach.
- 78 Opposition MPs were suspended from both Houses of Parliament on Monday, taking the total number of parliamentarians suspended during the ongoing Winter Session to 92.
- Of the 78 Opposition MPs, 33 were suspended from Lok Sabha and 45 from Rajya Sabha, marking the highest number of suspensions in a day.
- This comes just days after 14 Opposition lawmakers were suspended from Parliament for similar reasons.
- The suspension of 78 Opposition MPs in a single day has overtaken the previous such instance of large-scale suspension of MPs in 1989 when 63 MPs had been suspended.
Why do MPs Disrupt Parliament?
- There is an old tradition, irrespective of which party or alliance is in opposition, of MPs causing a ruckus inside Parliament.
- “Over the years, four broad reasons have been identified for disorder in legislatures.
- the lack of time available to MPs for raising important matters
- the unresponsive attitude of the government and retaliatory posture by Treasury benches
- deliberate disruption by parties for political or publicity purposes, and
- the absence of prompt action against MPs disrupting Parliamentary proceedings.
- Over the decades, the say the Opposition has in deciding the Parliamentary calendar has been reducing.
- Not only does the Government set the agenda in Parliament and decide how much time will be dedicated to any issue, but Parliamentary procedure also prioritises government business over other matters.
- Parliament has not updated its rules over the last 70 years in this regard.
- All parties have disrupted Parliament — and their view on disruptions has been determined almost always by whether they are in power or not.
Who Can Suspend the MPs?
- The Presiding Officer — the Speaker of LS and Chairman of RS — plays a major role in meting out suspensions.
- In Lok Sabha, the Speaker acts in accordance with Rules 373, 374, and 374A of the Rules of Procedure and Conduct of Business.
- In Rajya Sabha, the Chairman acts as per Rules 255 and 256 of the Rules.
- The procedure in both Houses is largely similar.
Under what circumstances can MPs be suspended from Lok Sabha?
- Rule Number 373, as outlined in the Rules of Procedure and Conduct of Business, grants the Speaker the authority to promptly instruct a Member to withdraw from the House if their conduct is deemed grossly disorderly.
- Any Member ordered to withdraw must comply immediately and remain absent for the remainder of the day's sitting.
- Rule Number 374 empowers the Speaker to name a Member who persistently and willfully obstructs the business of the House or disregards the authority of the Chair.
- Once named, the Speaker, upon a motion being made, shall expeditiously put forth the question of suspending the Member from the service of the House for a duration not exceeding the remainder of the session.
- It is necessary for a Member suspended under this rule to leave the House premises immediately.
What are the rules for suspending MPs from the Rajya Sabha?
- In Rajya Sabha, the suspension of members is regulated by Rule 256.
- Unlike Lok Sabha, the Chairperson of Rajya Sabha lacks the authority to unilaterally suspend a member.
- Instead, suspension can only occur through a motion presented to the House.
- Rule 256(2) specifies that the Chair, upon naming a member, initiates a motion to suspend the said member for the duration of the remaining session.
- While the Chair lacks the power to independently suspend a member, they retain the authority to instruct the member to leave the House, as stipulated by Rule 255.
- This rule empowers the Chairman to direct the immediate withdrawal of any member whose conduct is deemed grossly disorderly, with the member obliged to absent themselves for the remainder of the day's meeting.
While these rules have mostly remained unchanged since 1952, in 2001, the Lok Sabha further empowered the Speaker to deal with “grave and disorderly conduct.” As per the new rule (Rule 374A), an MP “named” by the Speaker shall automatically stand suspended for a period of five days or the remaining part of the session. This rule removes the need for the House to pass a motion for suspension. Notably, the Rajya Sabha has not incorporated this provision in its procedures.
How Long Can MPs Be Suspended?
- Mild offences are punished by admonition or reprimand, with the latter being the more serious of the two punishments.
- After this comes the punishment of “withdrawal.”
- As per Rule Number 373 in Lok Sabha’s Rules of Procedure and Conduct of Business: “The Speaker, if he is of the opinion that the conduct of any Member is grossly disorderly, may direct such Member to withdraw immediately from the House, and any Member so ordered to withdraw shall do so forthwith and shall remain absent during the remainder of the day’s sitting.”
- However, continuing to disregard the Presiding Officer’s directions can invite the punishment of suspension.
- A member can be suspended, at the maximum, for the remainder of the session only.
- Moreover, the House, at any point in time, can reinstate a suspended member by passing a motion.
- In cases of extreme misconduct, the House may expel a member “to rid the House of persons who are unfit for membership.”
Is Suspending MPs Common Practice?
- While it is a strong step, it is not uncommon. However, the number of suspensions has gone up over the last few years.
- At least 149 suspensions have been meted out, both Houses included, since 2019, compared with at least 81 in 2014-19, and at least 36 in 2009-14.
- “In most cases, disorders in the House arise out of a sense of frustration felt by members due to lack of opportunities to make his point or clear his chest of grievances of the people that move him or out of the heat of the moment.
- “What is more difficult to tackle is planned parliamentary offences and deliberate disturbances for publicity or for political motives.
- In many ways, it falls on the Presiding Officer to maintain a crucial balance in the House.
Conclusion
While maintaining the essential enforcement of the Speaker's supreme authority for the smooth conduct of parliamentary proceedings, it is imperative to underscore that the Speaker's role is primarily centred around managing the House rather than asserting dominance over it. A viable solution, therefore, needs to be devised with a focus on long-term sustainability, adherence to democratic values, and alignment with the dynamic and evolving context of India.
Beyond Jammu and Kashmir: Why many states in India enjoy special provisions (Indian Express)
- 16 Dec 2023
Why is it in the News?
On December 12, 2023, a unanimous decision by a 5:0 majority of Supreme Court judges clarified that Article 370 of the Indian Constitution is a facet of asymmetric federalism and does not imply internal sovereignty.
What is Asymmetric Federalism?
- Asymmetric federalism involves the uneven distribution of powers and relationships within the political, administrative, and fiscal domains among the federal units comprising a federation.
- This asymmetry can manifest in both vertical (between the center and states) and horizontal (among the states) dimensions.
- It can arise not only from constitutional provisions but also from the practical implementation of administrative, political, and fiscal systems within a federation.
- India's founding fathers acknowledged the importance of a diverse governance model that respects the unique cultural differences across the nation, allowing for a blend of self-rule within the framework of shared governance.
Why is it stated that India practices Asymmetric Federalism?
- India's administrative structure comprises the Centre and the States as primary forms of administrative units.
- However, additional forms exist, each designed to cater to specific local, historical, and geographical contexts.
- In addition to the Centre and the States, India features Union Territories with a legislature, as well as Union Territories without a legislature.
- Notably, territories like Puducherry and Delhi possess legislatures, while others under the Centre lack legislatures or a ministerial council for advisory purposes.
- Even among territories with legislatures, distinctions arise.
- Puducherry holds legislative powers over matters in the State List or Concurrent List applicable to the Union Territory.
- In contrast, Delhi, with a similar scope, has exceptions in three areas: police, land, and public order are beyond its jurisdiction.
- However, Parliament retains overriding powers over laws enacted by the Assembly in Union Territories.
- Much like the non-identical powers of the Centre and the States, variations exist in the relationships between certain States and other constituent units of the Indian Union and the Centre.
- This introduces a noticeable asymmetry in the functioning of India's federal system.
What is Article 370 of the Indian Constitution?
- The most prominent illustration of asymmetry in Centre-State relations was evident in the special status enjoyed by Jammu and Kashmir until August 6, 2019, when the President announced the cessation of its special privileges.
- Under Article 370, the State had the authority to maintain its separate Constitution, establish its criteria for 'permanent residents,' restrict outsiders from owning property, and have the prerogative to not automatically apply any Indian law to its territory.
- Specific approval by its Assembly was required for the operation of Indian laws.
- Jammu and Kashmir had the autonomy to formulate its Penal and Criminal Procedure Codes.
- The President had the authority to notify, at intervals, the constitutional provisions that could be extended to the State, with or without modifications.
Is Jammu and Kashmir the only state to enjoy special powers under the constitution?
- No, its not the only Indian state to enjoy such special provisions — 11 other states still continue to do as per the Indian Constitution.
- The Part XXI of the Constitution consists of articles on Temporary, Transitional and Special Provisions of some states, other than Jammu and Kashmir.
- In the Part, apart from Article 370, there are also Articles 371, 371A, 371B, 371C, 371D, 371E, 371F, 371G, 371H, 371I, and 371J – which provide special provisions to Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Goa and six of the seven sister states of North East India — Nagaland, Assam, Manipur, Sikkim, Mizoram, Arunachal Pradesh.
- However, Article 371I and Article 371E which deal with Goa and Andhra Pradesh respectively, do not offer any such special provisions to the state – and stand out from the rest.
- Articles 370 and 371 have been the part of Indian Constitution since it came into force on January 26, 1950.
- But Articles 371 A- I was incorporated later through various amendments under Article 368, which is described as the “power of Parliament to amend the Constitution and procedure therefor”.
The states and the Articles under which they enjoy special provisions:
- Maharashtra and Gujarat (Article 371): The Governor of Maharastra has a special responsibility to establish “separate development boards” for regions like Vidarbha and Marathwada, in Maharashtra; while Gujarat has the power to do so in Saurashtra and Kutch.
- This was done to ensure “equitable allocation of funds for developmental expenditure over the said areas”, and “equitable arrangement providing adequate facilities for technical education and vocational training, and adequate employment opportunities” under the state government.
- Nagaland (Article 371A): In Nagaland, the Indian Parliament cannot legislate in matters of Naga religion or social practices, Naga customary law and procedure, administration of civil and criminal justice involving decisions according to Naga customary law, and ownership and transfer of land and its resources, without the state Legislative Assembly’s nod.
- These provisions were included in the Constitution after a 16-point agreement between the Centre and the Naga People’s Convention in 1960, which led to the creation of Nagaland in 1963.
- It also gives the Governor a special responsibility for law and order situations in Nagaland, especially in case of internal disturbances occurring in the Naga Hills-Tuensang Area.
- Also, there is a provision for a 35-member Regional Council for Tuensang district, which elects the Tuensang members in the Assembly.
- A member from the Tuensang district is Minister for Tuensang Affairs.
- Assam (Article 371B): Quite like Nagaland, The President of India may provide for the constitution and functions of a committee of the state Legislative Assembly consisting of members elected from the tribal areas of the state.
- Manipur (Article 371C): Similar to Assam here as well, the President may provide for the constitution and functions of a committee of elected members from the Hill areas of the state in the Assembly for the modifications to be made in the rules of business of the Government.
- It also entrusts “special responsibility” to the Governor to ensure its proper functioning, and report to the President every year regarding the administration of the Hill Areas of the State.
- Andhra Pradesh (Article 371D, 371E): The President of India must ensure “equitable opportunities and facilities for the people” or ensure reservation in the matter of government jobs, education and other schemes by the state government.
- The President also has power for direct recruitment to posts in any local cadre of the state government, and admissions in any university or educational institution in the state.
- He is also entrusted for setting up an administrative tribunal outside the jurisdiction of the High Court to deal with issues of appointment, allotment or promotion in state civil services.
- Article 371E allows the establishment of a Central University in Andhra Pradesh by a law of Parliament.
- Sikkim (Article 371F): The Article gives Sikkim to hold a Legislative Assembly of minimum 30 members, notwithstanding anything this the Constitution.
- These members shall elect the representative of Sikkim in the Indian Parliament.
- To protect the rights and interests of various sections of the population of Sikkim, Parliament may provide for the number of seats in the Assembly, which may be filled only by candidates from those sections.
- The Governor of the state also has “special responsibility for peace and for an equitable arrangement for ensuring the social and economic advancement of different sections of the population”.
- It also states that any existing laws in Sikkim during its formation shall continue, and any adaptation or modification shall not be questioned in any court.
- Mizoram (Article 371G): According to the Article, the Legislative Assembly of AP should not contain less than 40 members.
- Apart from that, similar to Nagaland in Mizoram as well the Parliament can not make laws on “religious or social practices of the Mizos, Mizo customary law and procedure, administration of civil and criminal justice involving decisions according to Mizo customary law, ownership and transfer of land” unless the state Assembly decides to do so.
- Arunachal Pradesh (Article 371H): This article vests the Governor with special responsibility for law and order of the state, but he will have to consult the Council of Ministers in the state before exercising his individual judgment.
- However, if a matter arises where the Governor is required to act in the exercise of his individual judgment, then it should be considered as final and “shall not be called in question.”
- Karnataka (Article 371J): Article 371J allows the establishment of a separate development board for the backward districts in the Hyderabad-Karnataka region — similar to the provisions made for Maharashtra and Gujarat.
- This board will have to report to the state Assembly every year.
- It also ensures reservation for people of this region, in government jobs and education.
That many of these unapproved or banned FDCs contain antibiotics is cause for concern given the growing antibacterial microbial resistance in India (The Hindu)
- 09 Dec 2023
Why is it in the News?
A group of academics from India, Qatar and the United Kingdom recently published a worrying new study in the Journal of Pharmaceutical Policy and Practice on the volume of unapproved and even banned fixed dose combinations (FDC) of antibiotics being sold in India.
News Summary:
- In the Journal of Pharmaceutical Policy and Practice, a group of academics from India, Qatar, and the United Kingdom recently released a concerning new study on the amount of antibiotics that are being sold in India that are not allowed or even prohibited as fixed dosage combinations (FDCs).
- The analysis, which makes use of pharmaceutical industry sales data, shows that in 2020, 60.5% of FDCs containing antibiotics (or 239 formulations) were unapproved, and another 9.9% containing 39 formulations were being distributed in the nation even though they were prohibited.
- The fact that antibiotics are present in so many of these illicit or prohibited FDCs is concerning given the rising incidence of antimicrobial microbial resistance (AMR) in India.
What are the Fixed Dose Combinations (FDCs) Drugs?
- FDCs are combinations of one or more known drugs and can be useful in treating some diseases since the combination can improve patient compliance.
- For instance, if a patient has to take three different medications for a particular treatment, she may forget to take one.
- But if all three medications are combined into one tablet or one syrup, the chance of her forgetting to take one or two of the drugs is reduced.
- For diseases such as AIDS, it is well documented that FDCs have proven to be very useful in improving patient compliance, which at the end of the day improves treatment outcomes.
Concerns with FDCs Drugs?
- Making FDCs is not an easy job, even though most consist of drugs with known safety and efficacy profiles.
- All drugs have side effects. When formulated together, there is a possibility that the active ingredient or excipients (inactive ingredients) may affect how each drug functions.
- For example, the drugs may interact in a way to reduce the therapeutic efficacy of each active ingredient, or, worse, the drugs may interact with each other to create a more toxic element, often called metabolites.
- This is why all FDCs must go through a scientifically designed approval process where such interactions can be evaluated.
Advantages of Fixed Dose Combinations:
- FDCs increase patient adherence, streamline treatment, and optimize the advantages of the combined therapeutic actions of the two medications.
- Treatment for infectious diseases: A significant portion of India's population is afflicted with infectious diseases.
- FDCs are very helpful in the treatment of infectious disorders when it is customary to administer numerous antimicrobial drugs, such as HIV, malaria, and tuberculosis.
- Additionally useful in chronic diseases, FDCs are especially beneficial when co-occurring disorders are common.
- Affordability and accessibility: FDCs have particular benefits over single entity preparations, including improved efficacy, a lower likelihood of side effects, potentially lower costs, and easier distribution logistics that are pertinent to resource-constrained scenarios like those in India.
Challenges Associated with Fixed-Dose Combinations (FDCs):
- Increased Risk of Side Effects: Combining multiple active ingredients in FDC drugs heightens the risk of adverse drug interactions and increases susceptibility to side effects.
- Patients may exhibit heightened sensitivity or allergic reactions to specific components, posing challenges in identification and management due to the fixed combination.
- For instance, a single FDC drug containing Paracetamol, Bromhexine, Phenylephrine, Chlorpheniramine, and Guaiphenesin may elevate the risk of side effects like drowsiness, dizziness, and increased blood pressure.
- Regulatory Challenges: Regulating FDC drugs prove challenging due to the complexities associated with evaluating the safety and efficacy of multiple active ingredients in a single formulation.
- Maintaining quality control and standardization for FDC drugs becomes more demanding compared to single-component medications.
- Overuse and Misuse: FDC drugs can contribute to the overuse and misuse of medications.
- Patients might unknowingly consume multiple active ingredients unnecessarily or in inappropriate combinations, leading to potential health risks.
- Lack of Evidence-based Clinical Data: Approval of some FDC drugs may be based on limited or insufficient clinical evidence supporting their efficacy and safety profiles.
- The absence of robust scientific data raises concerns about the appropriateness and reliability of FDC drugs for specific medical conditions.
Why are FDCs banned in India?
- Patients may not need that many drugs; thus, they are subjected to additional side effects.
- Some drug doses have to be individualized based on the patient's condition.
- This is not possible when using FDCs.
- Some companies have been selling FDCs in India under this pretext without consulting the central government, as seen with the cefixime-azithromycin combination, which has already been banned.
- These non-essential FDCs, therefore, do more harm than good by encouraging irrational and indiscriminate prescribing of multiple drugs than necessary.
Some Examples of (Banned Fixed-Dose Combination) Drugs in India:
- Fixed dose combination of Aceclofenac + Paracetamol + Rabeprazole
- Fixed dose combination of Nimesulide + Diclofenac
- Fixed dose combination of Nimesulide + Cetirizine + Caffeine
How is the Pharmaceutical Industry Exploiting Loopholes in India's Legal Framework?
- Pharmaceutical companies in India use these FDCs to escape liability under multiple laws without much concern for public health.
- One such law is the Drugs (Prices Control) Order (DPCO), under which the government fixes the prices of individual drugs.
- Since drug combinations were traditionally not covered under the DPCO, the pharmaceutical industry decided that making FDCs provided an easy way to escape the remit of the DPCO.
- Motivated solely by market-driven pragmatism rather than a commitment to public health, the Indian pharmaceutical industry introduced an extensive array of FDCs lacking any discernible medical rationale.
- For example, anti-inflammatory drugs were combined with vitamins, anti-histamines were combined with anti-diarrhoeal agents, penicillin was combined with sulphonamides, and vitamins were combined with analgesics.
- These were combinations not found in any other country.
The pharmaceutical industry benefited in two ways.
- Firstly, the wide range of FDCs in the market meant no standards were set by bodies like the Indian Pharmacopoeia Commission, shielding manufacturers from quality testing and potential legal consequences.
- Essentially, the pharmaceutical industry could dictate its testing standards when FDCs were sampled for government testing.
- Second, the FDC approach provides companies with a justification for higher drug prices. For instance, if multiple companies sell azithromycin individually, they must compete and lower prices.
- However, combining it with another drug in an FDC allows them to market it as a unique solution, justifying higher prices until competitors introduce similar products.
- This system rewards pseudo-innovation rather than true medical breakthroughs, allowing dubious FDCs to command elevated prices, supported by doctors who may presume regulatory oversight.
Is there any Regulatory Framework Addressing the Issue of FDCs?
- The FDC problem has been on the regulatory radar since 1978 when the first government committee studied the issue and admitted that we had a problem on our hands.
- At the time, there was no system under the colonial-era Drugs and Cosmetics Act, 1940 to vet drugs for safety and efficacy before their sale in India.
- This meant that each State drug controller could hand out manufacturing licences for any drug formulation and there was little that the central government could do to stop their sale.
- In 1982, Parliament changed the law to give the central government the power to “prohibit” the manufacture of specific drugs that lack therapeutic value or justification.
- Later in 1988, the central government amended the rules to introduce a new requirement for manufacturers of all “new drugs”, including FDCs, to submit proof of safety and efficacy to the Drugs Controller General of India (DCGI) who heads the Central Drugs Standard Control Organization (CDSCO).
- These amendments also made it clear that State drug controllers could not grant “manufacturing licences” for “new drugs” that are not approved for safety and efficacy by the DCGI.
Is Unabated Licensing Undermining FDC Regulation in India?
- Despite clear legal provisions, State drug controllers continue to overlook regulations, issuing manufacturing licenses for Fixed-Dose Combinations (FDCs) not approved by the DCGI with impunity.
- Manufacturers selling these unapproved FDCs technically expose themselves to prosecution by the Central government for violating the law.
- Rather than pursuing criminal prosecutions, the Ministry of Health is engaged in a reactive approach, frequently utilizing its powers under Section 26A to prohibit the manufacturing of specific FDCs.
- Since 1983, 444 orders have been issued under this provision, primarily targeting FDCs. Many of these orders have become entangled in intricate legal disputes, with inconsistent court decisions further complicating the regulatory landscape.
Conclusion
The fact that these academics have discovered 239 unapproved FDCs being sold in 2020 in just one category of FDCs more than 42 years after the problem was first flagged is an astonishing indictment of the incompetence of the drug regulatory framework in India. As they point out in their paper, unregulated FDCs may end up contributing to the AMR problem in India. The Ministry of Health needs to take immediate action.