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.

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.

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.

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

1. Financial Inclusion: PMMY targets marginalized and socio-economically neglected sections of society, promoting financial inclusivity.
2. 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.
3. 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.

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.

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.

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.

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.

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.

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'.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.
• 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.

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: