The newly elected Congress Government led by Sukhvinder Singh Sukhu regime has restored the Old Pension Scheme (OPS) for Himachal Pradesh government employees with immediate effect. Some other states are also in line to implement the same. This has stirred a debate around the two variants of Pension Schemes in India.
In this context, this edition of the burning issue will elaborate on the topic of the types of pension schemes in India.
Background of both the schemes
About OPS
Guaranteed pension sum: OPS is a post-retirement benefit for government area representatives that guaranteed a sum to be paid to the worker after his superannuation.
Defined formula: OPS, also known as the “Defined Benefit Scheme,” provided government employees with 50 percent of their basic salary to secure their future. Therefore, the individual would receive a fixed monthly pension payment from the government of Rs 5,000 if the basic salary was Rs 10,000.
Dearness allowance: The government tries to find a balance between the salary and the rising cost of living by increasing Dear Allowance twice a year. The increase in DA also allows for a higher salary and, consequently, a higher pension.
Fully government payable: The government paid for the Old Pension in its entirety. Every year, the budget for pensions was announced during the Budget announcement. The annual DA increase in the pension was also the responsibility of the federal and state governments.
About NPS
The origin: In 1998, the Union Ministry of Social Justice and Empowerment commissioned a report for an Old Age Social and Income Security (OASIS) project. Its primary objective was targeted at unorganized sector workers who had no old age income security. The New Pension System was proposed by the Project OASIS report; it became the basis for pension reforms.
Open to all: NPS is a government-sponsored pension scheme. It was launched in January 2004 for government employees. It was extended to all citizens of India on a voluntary basis from May 2009 and to corporates in December 2011 and to Non-Resident Indians in October 2015.
No full contribution from the government: PFRDA is the statutory authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the NPS and pension schemes to which this Act applies. The scheme allows subscribers to contribute regularly to a pension account during their working life.
Fund on retirement: On retirement, subscribers can withdraw a part of the corpus in a lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
Key differences between the two pension schemes
Points of Differentiation
The Old Pension Scheme
The New Pension Scheme
Nature of the schemes
OPS offer pensions to government employees on the basis of their last drawn salary
NPS pays the employees for their investments in the NPS Scheme during their employment.
Amount of pension derived
50 per cent of the last drawn salary
60% lump sum after retirement and 40% to be invested in annuities for getting a monthly pension
Benefits in taxes
No tax benefits
The employee can claim tax deductions of 1.5 lakh under Section 80C of income tax and up to 50,000 on other investments under 80CCD (1b)
Tax on pension
No tax on pension
60% of the NPS Corpus is tax-free while the remaining 40% is taxable
Option of Investment
No option
Two choices: Active and Automatic
Who can avail?
Only government employees
Any Indian Citizen between 18-65 years.
Switching Schemes
OPS scheme can be switched to NPS
NPS scheme cannot be switched back to OPS in general, but central government employees can switch back to OPS in case of death and disablement of the employee.
Pros and cons of OPS
PROS
After retirement, the plan guarantees a steady income for life.
Definite formula and pension: Employees were entitled to a pension that was calculated in advance and was equal to fifty percent of their most recent salary under the old plan.
DA Benefit: They also benefit from Dearness Relief (DR) revisions twice a year. There was no salary deduction for the fixed payout.
GPF benefit: Additionally, the General Provident Fund (GPF) was provided by the OPS.
CONS
Liability remained unfunded: There was no corpus specifically for pension, which would grow continuously and could be dipped into for payments.
Usual budgetary allocation: The Union budgetary allocations (Rs 3,86,001 crore in 2020-21) provided for pensions every year; there was no clear plan on how to pay year after year in the future.
The burden on working class: The ‘pay-as-you-go’ scheme created inter-generational equity issues — meaning the present generation had to bear the continuously rising burden of pensioners.
Far extended pay-outs: Better health facilities would increase life expectancy, and increased longevity would mean extended payouts.
Pros and cons of NPS
PROS
Flexible– NPS offers a range of investment options and a choice of Pension Funds (PFs) for planning the growth of the investments in a reasonable manner and monitoring the growth of the pension corpus. Subscribers can switch over from one investment option to another or from one fund manager to another.
Simple – Opening an account with NPS provides a Permanent Retirement Account Number (PRAN), which is a unique number and it remains with the subscriber throughout his lifetime.
Portable– NPS provides seamless portability across jobs and across locations. It would provide a hassle-free arrangement for the individual subscribers while he/she shifts to the new job/location, without leaving behind the corpus build, as happens in many pension schemes in India.
Well Regulated– NPS is regulated by PFRDA, with transparent investment norms, regular monitoring and performance review of fund managers by NPS Trust. The account maintenance costs under NPS are the lowest as compared to similar pension products across the globe. While saving for a long-term goal such as retirement, the cost matters a lot as the charges can shave off a significant amount from the corpus over 35-40 years of investment period.
The dual benefit of Low Cost and Power of compounding: Till retirement, pension wealth accumulation grows over the period of time with a compounding effect. With the account maintenance charges being low, the benefit of accumulated pension wealth to the subscriber eventually becomes large.
Ease of Access: The NPS account is manageable online. An NPS account can be opened through the eNPS portal. Further contributions can also be made online through the eNPS portals of CRAs:
CONS
Deductions from salary: The NPS, in contrast to the OPS, mandates that employees deposit 10% of their base pay in addition to the dearness allowance.
The amount of the pension is not set in stone, and there is no GPF benefit.
Linked to market returns: The scheme’s major flaw is that it is return-based and linked to the market. Simply put, the payout is speculative.
Why states are shifting back to OPS?
OPS brings state governments some short-term gains:
Deferment to contribution: They save money since they will not have to put the 10 per cent matching contribution towards employee pension funds.
Low curtailment in salaries: For employees too, it will result in higher take-home salaries, since they too will not set aside 10 per cent of their basic pay and dearness allowance towards pension funds.
Old age security: Some government employees are concerned that their pension may not be the same as 50 per cent of their last salary drawn (as in the OPS).
Party politics: These moves may be considered convenient by Opposition parties as they struggle to expand their reach in the current environment.
States will benefit in the short term, but as pension liabilities rise over time, there will be less room for more productive spending.
Concerns raised due to this shift
Former RBI Governor Raghuram Rajan has expressed his concern over the decision of some states to restart the old pension scheme and suggested that some less costly ways should be found to address the demands of government pensioners.
In its latest report titled ‘State Finances: A Study of Budgets of 2022-23’, the central bank reversion to OPS by some States poses a major risk on the “subnational fiscal horizon” and would result in the accumulation of unfunded liabilities in the coming years for them.
Punjab’s projected pension outlay during 2022-23 is Rs 15,146 crore. This accounts for almost one-third of Punjab’s tax revenues (OTR) of Rs 45,588 crore.
By postponing the current expenses to the future, the report said States risk the accumulation of unfunded pension liabilities in the coming years.
Former RBI Governor D. Subbarao has said that the decision of some States to restart the Old Pension Scheme will be decidedly a regressive move and will provide more privilege to government servants at the cost of the larger public, the majority of which has no social safety net,
Other issues with the Pension system in India
Insufficient coverage: Any pension plan leaves a lot of the Indian population out of pocket. The unorganized sector typically includes those who remain uncovered.
Insufficient sums: The sums received by those who are covered by various pension plans are insufficient to ensure their continued existence.
Insufficient pension amount: The Parliamentary Standing Committee on Rural Development observed that the various components of the National Social Assistance Program (NSAP) provided insufficient assistance. It cost between 200 and 500 rupees per month.
Disparate Coverage: In addition, the implicit rate of returns and benefits minus contributions vary among programs, occupations, industries, and other contexts. and as a result, the pension benefits become unequal.
Financial viability: The government’s fiscal plan is further strained financially by the pension industry. According to a number of studies, the amount of money spent on pension payments is rising faster than taxes and duties.
Ineffective management: The issuance of annual statements and the delays in processing and crediting claims are the subject of criticism. The structure of organizational governance also needs to be improved. Additionally, government regulations prevent retirement benefit systems from being transferred to other industries.
Way forward
Optimize pension schemes: The government can optimize pension schemes by reviewing the benefits and eligibility criteria of the pension schemes. This can help identify areas where the benefits can be reduced without impacting the employees.
Increase efficiency in government operations: The government can also work towards increasing efficiency in its operations and reducing the overall workforce. This can help reduce the pension burden and improve the fiscal health of the country.
Conclusion
The fiscal risks involved in the transition of NPS-borne employees to OPS regime are substantive and to a great extent unsustainable keeping in view the existing share of pensionary liability in government expenditure.
The hard-won policy gains that have been achieved through bipartisan consensus may be undone by such proposals, which are motivated by short-term political considerations.
Political parties must consider the long term rather than just the immediate relief and return and resist the temptation to make such fiscally reckless moves.
Recently, Italian Prime Minister Giorgia Meloni began a two-day visit to India to raise bilateral relations as part of the G20 Foreign Minister’s meeting in New Delhi.
In this context, this edition of the burning issue will elaborate on the India-Italy bilateral relationship.
Background of India- Italy relationship
Historical Aspects:
Earlier times: The relationship between India and Italy dates back to ancient times when Indian traders established trade ties with Rome. The Silk Road, which connected Asia and Europe, facilitated the exchange of spices, textiles, and other goods, which was the foundation of these trade ties.
The Middle Ages: Italy established trading posts in the Indian subcontinent during the medieval era, thereby enhancing trade ties between the two nations. During his travels to the east, Venetian merchant Marco Polo also visited India in the 13th century and wrote about his experiences there. With Italian city-states like Venice and Florence, Mughal emperor Akbar maintained diplomatic ties.
The British era: Italians were involved in the Indian freedom struggle during the British colonial era. Some of them even served in the Indian National Army under Subhash Chandra Bose.
Economic Aspects:
After Germany, Belgium, and The Netherlands, Italy is India’s fourth-largest EU trading partner. Since 1988, India has benefited from a favorable trade balance.
India is Italy’s second-largest South Asian trading partner, with a bilateral trade relationship worth more than $10 billion.
Italy receives engineering products, machinery, and electrical equipment from India, while India receives textiles, leather, chemicals, and pharmaceuticals from Italy. India is home to significant Italian companies like Fiat, Piaggio, Ferrero, and Luxottica.
Through investments, joint ventures, and technology transfers in renewable energy and infrastructure, the Italian government has helped India grow its economy.
Political Aspects:
In 1947, India and Italy established political relations. India and Italy both have democratic governments and are members of the G20, the United Nations, and other multilateral organizations.
High-level political exchanges have occurred between the two nations, including the 2017 trip by Italian Prime Minister Paolo Gentiloni to India and the 2018 trip by Indian Prime Minister Narendra Modi to Italy.
However, in 2012, when two Italian marines aboard an oil tanker shot and killed two Indian fishermen off the coast of Kerala, their relationship soured. The incident resulted in a diplomatic impasse, which was resolved over several years.
Cultural Aspects:
1976 marked the signing of the agreement for cultural cooperation. The Cultural Exchange Programme (CEP) between Italy and India involves students from both countries participating in academic courses and language programs. On January 18, 2021, the “Srijan” year-long Festival of India in Italy was launched by the Indian Embassy.
India and Italy share a love of food, literature, music, art, and their rich cultural heritage. Italian opera and classical music have devoted fans in India, and Indian classical dances like Bharatanatyam and Kathak are popular in Italy.
Indian food is well-liked, and Italian restaurants can be found in most major Indian cities. In order to encourage cultural exchange between the two nations, the Italian Cultural Center in New Delhi and the Italian Embassy in India organize a variety of cultural events and activities.
New developments in the relations
Scientific Cooperation
An Agreement on Science & Technology cooperation has existed since 1978. The Agreement foresees three yearly action plans under which a maximum of thirty joint research projects can be undertaken. This agreement was replaced by one signed in Nov 2003.
Some of the prime areas of joint research are Electronics, Biotechnology, Design Engineering, Automotive Technologies, Energy, etc.
Defense cooperation
An essential tenet of India-Italy relations has long been defence cooperation. With more than 50,000 soldiers, the 4th, 8th, and 10th Indian Divisions contributed significantly to one of the most difficult allied forces’ advances for the liberation of Italy during the Second World War.
Joint Defence Committee was established in 2018 to enhance and encourage a “structured dialogue” between Indian and Italian defence firms. Italy supported India’s “intensified engagement” with nuclear, missile and dual-use technology and substances-export control regimes like the Wassenaar Arrangement, the Australia Group, and the Nuclear Suppliers’ Group (NSG) which strengthen global non-proliferation efforts.
The two countries are also cooperating in the defense sector, with Italy supplying torpedoes and aircraft components to India.
Italy has expressed interest in investing in India’s infrastructure projects such as the Delhi-Mumbai Industrial Corridor and the Smart Cities project.
Why Italy is significant for India?
Trade: Italy is the fifth-largest economy in the European Union and the third-largest in the Eurozone after Germany and France with a GDP of $1.86 trillion. It is also the world’s sixth-largest manufacturing nation. India, on the other hand, is one of the fastest-growing economies in the world. The bilateral trade between the two countries has been increasing steadily over the years(US $10 billion), and Italy is one of India’s most important trading partners in the EU.
Investments: Italy is India’s fourth largest European trading partner and the 12th largest foreign investor in the country with FDI reaching the US$2 billion mark in 2020. In 2021, bilateral trade was valued at over 10 billion with the balance in India’s favour. Italian companies have been investing in India in various sectors such as automobiles, fashion, food processing, and infrastructure. Likewise, Indian companies are also investing in Italy in the areas of pharmaceuticals, IT, and energy. There is significant potential for further investment and collaboration between the two countries.
Supporting Indian manufacturing: India’s “Make in India” initiative and modernization drive can be complemented by Italian expertise in areas like manufacturing, green tech and defense. Machinery equipment comprises 36 percent of total Italian exports to India, and both economies are structured around SMEs.
Cultural Ties: India and Italy share a rich cultural heritage, which dates back to ancient times. Italy is home to some of the most famous historical monuments, museums, and art galleries in the world, which attracts millions of tourists every year. Many Indian tourists visit Italy to explore its cultural heritage, and many Italian tourists visit India to experience its rich culture and heritage.
Education: Italy is home to some of the world’s oldest and most prestigious universities, which offer a wide range of courses and programs. Indian students are increasingly choosing Italy as a destination for higher education, as it offers high-quality education and exposure to European culture and languages.
Defense: India and Italy are also exploring joint productions in defense and aerospace sectors as well as technology transfers, as evident in the agreement between Italian public company Fincantieri and India’s Cochin Shipyard Limited. Fourteen years after the last COAS visit, former Army Chief General Naravane visited Italy in 2021 to re-energise India-Italy defence relations. In addition, India and Italy also have a Joint Working Group on Counter-Terrorism.
Energy transition: Another key area of cooperation is energy transition. In 2021, the two countries inked a Strategic Partnership on Energy Transition to advance collaboration in areas like green hydrogen and bio-fuels, and Italy also joined the successful India-France-led International Solar Alliance comprising over 90 members.
Despite regular changes of the guard in Italy, continuity in bilateral engagements at the highest levels between India and Italy coupled with strong political will have ensured that the two countries remain on each other’s radar since 2017.
Highlights of the current visit of PM Meloni
Now strategic partners: India and Italy have decided to elevate the ties to the level of strategic partnership and identified defence as one of the areas where they can start a “new chapter”.
Boost to startups: The meet led to the establishment of a ‘Startup Bridge’ between India and Italy.
Bilateral defence exercise: Another important area of mutual cooperation is defence. They also decided to organise joint military exercises and training courses on a regular basis.
Enhance peoples mobility: India and Italy also signed a Declaration of Intent on migration and mobility and inked a memorandum of understanding between Rabindra Bharati University, Kolkata, and Italian Consulate General; and Morarji Desai Institute of Yoga and Sarva Yoga International, Italy.
Challenges
Low trade w.r.t potential: India and Italy have been trading partners since the Roman era, so the country’s low investment and trade volumes are regrettable.
The Enrica Lexie Case: In 2012, two Indian fishermen were killed by Italian marines. The incident was a huge mistake, and the sad fact quickly became politicized.
Italy’s current political instability—it is in a very precarious position—with a populist movement on one side and a nationalist, naturalist, or close to fascist on the other.
Internal issues of Italy: Italy is a problem for EU due to its low growth rate of 1.5%, high youth unemployment rate of 30%, and the alarmingly high debt-to-GDP ratio of 133%.
Non-implementation of the trilateral partnership: between India, Italy, and Japan was launched in 2021; however, despite the well-established India-Japan partnership and Italy’s strong complementary potential, it has not been implemented.
Immigration issues: There has been a significant influx of Indian immigrants in Italy, which has sometimes led to tensions between the two communities. Issues such as employment, social integration, and cultural differences need to be addressed to ensure peaceful coexistence.
Investment climate: Despite the significant potential for investment, there are some challenges in the investment climate in India and Italy. For instance, India needs to address issues such as corruption, bureaucracy, and regulatory barriers, while Italy needs to address issues such as high taxation and regulatory complexity. Both countries need to work together to create a more conducive investment environment.
Way forward
The two countries can facilitate cooperation between the Indo-Pacific and the Mediterranean Sea geographies given India’s permanent presence in the Indian Ocean region and Italy’s in the Mediterranean. Encouragingly, in 2022, the Italian parliament approved a motion to pay more attention to the region.
Supporting an effective multilateral system, which would be the best political accelerator to win our battle against the novel coronavirus and to promote sustainable, equitable and durable recovery.
Improving trade: the potential of India and Italy as trade partners can be further explored if India and European Union (EU) sign the Bilateral Trade and Investment Agreement (BTIA) which has been in negotiation for over 11 years without conclusion.
Conclusion
India’s partnership with Italy is gaining strength on all levels—political, economic, and strategic. PM Meloni’s visit to India at this critical juncture of global politics would further boost ties while also adding fodder to the reinvigorated EU-India partnership. For India-Italy relations, the future is likely to be bright and progressive.
In the words of Foreign Secretary Vinay Kwatra said, “With the legacy issues behind us, the door is now open for industries to cooperate more strongly, particularly in the field of manufacturing, co-production, co-design and co-innovation.”
On February 23, hundreds of followers of a Khalistan leader clashed with police outside Ajnala police station near Amritsar, demanding the release of one of their colleagues who had been taken into custody in an alleged kidnapping case.
This was the second such attack on the police in Punjab in a fortnight. These incidents are being linked with the revival of the Khalistan movement of 1990s Punjab.
In this context, this edition of the burning issue will discuss this revival of Khalistan demand and the issue around it.
What was the Khalistan movement?
Dates to pre-independence era: The Khalistan movement, which started in the 1940s during British rule, calls for establishing a separate nation for Sikhs. When India became independent and Punjab was partitioned, its leaders demanded a special status for the state. However, the Central Government did not pay attention to these demands, and Sikhs felt betrayed, leading to the idea of a separate nation growing substantially.
Rise of Bhindranwale: Many individuals and organizations contributed to the Sikh revivalist movement; however, Jarnail Singh Bhindranwale emerged as a charismatic leader after becoming the head of Damdami Taksal on August 25, 1977.
Failure to fulfil regional demand: Punjabi political parties, such as the Sikh Akali Party, failed to fulfil the regional demands concerning river waters and the transfer of Chandigarh as a capital city to Punjab. The devolution of power gave rise to Bhindranwale’s image among the masses.
Finally Military Operation: The military mission, OBS, was carried out between June 1 to June 10, 1984, to take control of key gurdwaras, including the Golden Temple in Amritsar, from Bhindranwale’s supporters. Bhindranwale was killed during the operation; however, in recent times, his image remains alive and well.
Why is it being revived?
Political instability: Punjab in recent years has witnessed a political crisis leading to a change in governments, ruling political parties and CM’s giving chance for radical outfits to grow.
Economic challenges: Punjab state has a high employment rate (According to data from the Centre’s Periodic Labour Force Survey 2019-20, Punjab’s unemployment rate is higher than the national average). Also, the year-long Farmers’ protest in 2021 and railways blockades have led to the creation of negative sentiments among investors about the state’s investment environment leading to decreasing investments in Punjab and rising unemployment.
Rising communalism: multiple events of blasphemy have taken place in the state which is flaming the fire of communalism among the people of the state.
Provocation from Pakistan: Investigations by security agencies suggest links between Khalistani groups and Pakistan’s Inter-Services Intelligence (ISI) – further increasing the likelihood of feelings of separatism due to drug trafficking and networking through Sikh pilgrimages.
Feeling to of persecuted minority: images of the 1984 anti-sikh riots and the topic of the non-persecution of culprits of the riots are being used to suggest that Sikhs are persecuted minority and thus they must have their own land in form of Khalistan.
Role of diaspora and social media in the resurgence
Propaganda by parts of the Sikh diaspora: There is a threat of a re-emergence of the idea of Khalistan due to an increase in the propaganda by parts of the Sikh diaspora in Western countries, effectively utilizing social media.
Use of Social media as a uniting platform: it is pertinent to understand the re-emergence of Khalistan, wherein traditional propaganda machinery is being used to generate social media acceptance.
Misinformation campaigns: Organizations like Sikhs for Justice, Khalistan Liberation Force, and Babbar Khalsa International run misinformation campaigns on social media through Twitter, Facebook, Instagram, and WhatsApp. The most recent campaign, which attracted enormous attention, was the Referendum 2020
Identity consciousness among the youth: Further, it signifies a trend of identity consciousness among the youth residing in the West and Punjab. As discussed in the following paragraphs, ISI and the terror outfits operating from Pakistan heavily oversee the internet presence of elements spreading Pro-Khalistani content. Such social media activity is generated through traditional networks that still work on the ground in collaboration with Pakistan’s ISI, seeking to create a groundswell for the idea of a Sikh homeland.
Involvement of Pakistan’s ISI: ISI is using a double strategy of tapping into the Jammu & Kashmir terror network to revive the Khalistan movement in Punjab. By using drugs as a means to radicalize the Punjabi youth, ISI means to destabilize Punjab.
Cause of concern
Threat to national security and integrity: the resurgence of the Khalistan movement is a threat to national security similar to the Kashmir and NE insurgency.
May darken Punjab’s future: a poor law and order situation may deter investors to invest in Punjab thus further deteriorating its economy and leading to spillover effects in social and political sectors.
Involvement of diaspora: The idea of forming a separate state for Sikhs has died down in Punjab; however, it has attracted the attention of a large audience in the diaspora who now have settled in other nations for long and thus have lost their affinity with India as their homeland.
Misuse of social media: which defies any international boundary, thus misused by separatists in Pakistan and other nations.
Bilateral relations may be harmed: the Khalistan issue has already harmed Indo- Canada relations and now straining Indo-UK due to the conduction of Referendum 2020 in these countries despite the Indian Government’s objection.
How to tackle the rise
Recognising new challenges: Recognizing the challenge posed by traditional stakeholders and new social media recruits is necessary.
Collaborate with foreign governments: The Indian security and intelligence forces need to collaborate with foreign governments to monitor anti-India activities carried out by the Khalistani forces and restrict their funding sources.
Enhance security efforts: The Indian government must heighten security efforts to counteract the increase in Khalistani social media activity since the opening up of the Kartarpur Corridor.
Promote economic and social development: At the domestic level, the Punjab and Union governments and security forces must collaborate to improve the economic condition of the state to again put the state on the path of development.
Engage with the Sikh diaspora: Indian agencies, such as the missions established in those countries, must diplomatically engage with the Sikh diaspora to tackle the misinformation campaign being peddled by Khalistani organizations. Such engagements will facilitate a positive relationship between the Indian state and the Sikh diaspora.
Beef up security: Indian security forces need to step up their preparedness to tackle the increase in drones used to deliver weapons and drugs to Punjab.
Engage Pakistan: In addition to Western countries, India should not back away from exercising diplomacy with Pakistan and should work to extradite terrorists hiding in Pakistan.
Steps taken
As part of recent actions taken against the Khalistan propaganda, the Indian government has banned influential Twitter accounts such as 1984tribute, Khalsa Kashmir, and Khalistan Centre.
Maintaining a Central Adverse List: of pro-Khalistani supporters
Conclusion
Until Sikhs get closure for the anti-Sikh riots of 1984 by means of court proceedings against the riot accused, the desire for a Sikh homeland will remain strong among the diaspora, who see themselves as a persecuted minority.
The violent Khalistani movement has vanished; however, the idea of a separate Sikh nation i.e Khalistan is yet to disappear.
Recently, two men belonging to a minority community from Rajasthan’s Bharatpur district were allegedly abducted and burnt to death in a car in Haryana. The incident is suspected to be linked with cow vigilantes, who have been active in the region for quite some time.
The incident highlights the issue of lynching and vigilantism which keeps coming up regularly. In this context, this edition of the burning issue will deal with issue of mob lynching.
What is Mob Lynching?
Mob lynching, the act of killing individuals or groups of people by a mob without any legal authority, is a grave issue that has been affecting India for many years. The country has witnessed several incidents of mob lynching that have claimed many innocent lives.
This trend of violence has gained momentum in recent years, with the proliferation of social media and the spread of fake news. In this article, we will examine the causes and consequences of mob lynching in India.
It is an extreme form of informal group social control such as charivari, skimmington, riding the rail, and tarring and feathering, and often conducted with the display of a public spectacle for maximum intimidation.
Few statistics related to lynching in India
The data website India Spend has compiled instances of cow-linked violence from 2010 to 2017. It found that during this period, 28 people were killed in 63 such incidents.
An overwhelming 97% of these attacks took place after 2014.
About 86% of those killed were Muslims. In 21% of the cases, the police filed cases against the victims/survivors.
Cow-related lynchings rose sharply in 2017. This marks a 75% increase over 2016, which had been the worst year for mob lynchings since 2010.
Causes of Mob Lynching in India:
Communal Tensions: Communal tensions and religious divides are one of the leading causes of mob lynching in India. The rise of Hindu nationalism and the polarization of the country’s politics have fueled violence against religious minorities, particularly Muslims. The perpetrators of mob lynching often justify their actions on the grounds of protecting their religion and culture.
Vigilantism: Vigilantism, the act of taking the law into one’s own hands, is another cause of mob lynching. In India, several groups, such as cow vigilantes, have taken it upon themselves to enforce the law and punish those who they perceive as breaking it. This has led to many innocent people being lynched on suspicion of cow slaughter, a practice that is considered taboo in Hinduism.
Social Media: Social media has played a significant role in the spread of fake news and rumors, which have contributed to the rise in mob lynching incidents. False rumors about child kidnappers or thieves have led to mobs attacking innocent individuals, often resulting in their deaths.
Weak Law Enforcement: The weak law enforcement system in India is another cause of mob lynching. In many cases, the police have failed to intervene and prevent the lynching, or the perpetrators have not been brought to justice. This has emboldened mobs to take the law into their own hands and inflict violence on innocent people.
Impunity: The lynch mobs are confident of getting away with it. So far, the state has done little to shake that confidence.
Role of violence in Indian politics – Popular anger, outrage, and violence are integral features of everyday politics in contemporary India. Thus mob feels empowered to take law into their hands.
Lack of public reaction – The lack of public reaction to recent incidents implies a degree of acceptability of violence as an expression of vengeance against ‘injustices’.
Silence of the political class – There is little condemnation of lynchings by those in positions of authority except in very generalized terms.
Misplaced fascination – The feeling that mobs are exacting Bollywood-style justice beyond the procedures of law, with crowds of locals triumphantly watching the gruesome spectacle captured by videos that subsequently go viral, has its own vicarious fascination.
Cause Of Concern For Mob Lynching in India
Rise of a retributive society: the rising cases of lynching indicates the rise of a retributive society in india, where instead of legal justice, revenge is sought to pacify self.
Against values of Indian society: mob lynching is against the values of the Indian society such as peace, communism and toleration.
Against rule of law: such acts are against the established rule of law and directly challenge the law of the land while trying to uphold ‘law of the crowd’
Sign of an immature society: it also signals that the society is immature as the differences in opinions are not tolerated or accommodated by the society members.
Consequences of Mob Lynching in India:
Loss of Innocent Lives: The most significant consequence of mob lynching in India is the loss of innocent lives. The victims of mob lynching are often individuals who have committed no crime but are targeted due to their religion, caste, or social status. The incidents have left families devastated and have created fear and insecurity among minority communities.
Damage to Social Fabric: Mob lynching has damaged the social fabric of India, which is known for its diversity and inclusivity. The incidents have heightened communal tensions and created an atmosphere of fear and distrust. The violence has also led to the stigmatization of certain communities and has contributed to their marginalization.
Erosion of Democratic Values: Mob lynching is a direct attack on democratic values and the rule of law. The violence is carried out by mobs that take the law into their own hands, bypassing the legal system and the principles of justice. The incidents have raised questions about the state’s ability to protect its citizens and uphold the Constitution.
Economic Impact: Mob lynching incidents have also had an economic impact, with foreign investors expressing concerns about the safety and security of their employees in India. The incidents have damaged India’s image as a tolerant and peaceful country and have affected its tourism industry.
Impact on migration patterns: It directly hampers internal migration which in turn affects economy.
Damage of public property: Large resources deployed to tackle such menaces induces extra burden on state-exchequer.
International Laws to Deal with Mob Lynching
While there is no specific international treaty or convention that addresses mob lynching, several international laws and human rights standards provide protection against this heinous crime.
Universal Declaration of Human Rights:
The Universal Declaration of Human Rights (UDHR) is a landmark international document that recognizes the inherent dignity and equal rights of all human beings. Article 3 of the UDHR states that “everyone has the right to life, liberty and security of person.” Mob lynching violates this fundamental right to life and security of person and is therefore a violation of international human rights law.
International Covenant on Civil and Political Rights:
The International Covenant on Civil and Political Rights (ICCPR) is a legally binding treaty that sets out the civil and political rights that are protected under international law. Article 6 of the ICCPR provides that “every human being has the inherent right to life” and that this right shall be protected by law. Article 7 of the ICCPR prohibits torture and cruel, inhuman, or degrading treatment or punishment. Mob lynching, which involves the use of violence and intimidation to cause harm to an individual, violates both of these provisions of the ICCPR.
Convention against Torture and Other Cruel, Inhuman or Degrading Treatment orPunishment:
The Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (CAT) is an international treaty that prohibits the use of torture and other forms of cruel, inhuman or degrading treatment or punishment. The CAT defines torture as “any act by which severe pain or suffering, whether physical or mental, is intentionally inflicted on a person.” Mob lynching, which involves the intentional infliction of pain and suffering, can be considered a form of torture and is therefore prohibited under the CAT.
International Convention on the Elimination of All Forms of Racial Discrimination:
The International Convention on the Elimination of All Forms of Racial Discrimination (ICERD) is an international treaty that prohibits all forms of discrimination based on race, ethnicity, or national origin. Article 5 of the ICERD requires states to prohibit and eliminate racial discrimination and to ensure that all individuals are protected from racial violence or incitement to racial violence. Mob lynching, which often targets individuals based on their race or religion, is a clear violation of the ICERD.
Rome Statute of the International Criminal Court:
The Rome Statute of the International Criminal Court (ICC) is an international treaty that establishes the ICC, a permanent international criminal court that has jurisdiction over individuals who commit genocide, crimes against humanity, war crimes, and the crime of aggression. Mob lynching can constitute a crime against humanity, which is defined in the Rome Statute as a serious attack on a civilian population that involves widespread or systematic acts of violence. Individuals who are responsible for mob lynching can be held accountable under the ICC.
Laws Passed by Few States to Combat Mob Lynching
In 2018, the Supreme Court described lynching as a “horrendous act of mobocracy”. The Court exhorted the Centre and State governments to frame laws specifically to deal with the crime of lynching.
The SC laid down certain guidelines to be incorporated in these laws including Fast-track trials, Compensation to victims, and Disciplinary action against lax law-enforcers.
Bills passed by state legislature (in the image)
However, Bills passed against mob lynching in some states have not been implemented since lynching is not defined as a crime under the Indian Penal Code (IPC).
Steps to Address Mob Lynching in India
Laying down a dedicated law: at national level similar to what some states have legislated.
Strengthening Law Enforcement: The most critical step in preventing mob lynching is to strengthen law enforcement. The police must be held accountable for their failure to prevent or respond to incidents of mob violence. The police must also be trained to handle communal tensions and given the resources to effectively combat rumors and misinformation. The judiciary must also take a proactive role in ensuring that the perpetrators of mob lynching are brought to justice.
Creating Awareness: Creating awareness among the public about the dangers of mob lynching is another critical step. The government and civil society organizations must work together to educate people about the consequences of taking the law into their own hands. The media also has a significant role to play in promoting awareness and dispelling rumors and misinformation.
Combating Communal Tensions: Combating communal tensions and promoting religious harmony is essential in preventing mob lynching. The government must take proactive measures to address the underlying causes of communal tensions, such as unemployment, poverty, and discrimination. The government must also promote interfaith dialogue and work towards building a more inclusive society.
Strengthening Cybersecurity: Strengthening cybersecurity is another critical step in preventing mob lynching. Social media platforms must be held accountable for the spread of fake news and rumors, and measures must be taken to prevent the spread of hate speech and incitement to violence. The government must also invest in building cybersecurity infrastructure and promoting digital literacy.
Supreme Court in Tehseen Poonawala Case
In the Tehseen Poonawalla case, the Supreme Court directed states to take preventative, punitive, and corrective actions against mob lynching in 2018. SC’s guidelines include:
To prevent incidents of cow vigilantism and mob lynching, a nodal officer will be appointed in each district who is not below the rank of Superintendent of Police.
The State Governments are required to identify the affected districts where lynching incidents have occurred within three weeks of the date of this judgment.
Those who incite others and spread false information on social media will be subject to an automatic FIR under Section 153A of the IPC.
Within one month of the judgment’s date, the state governments are required to prepare a compensation plan for victims of lynching and mob violence in accordance with Section 357 A of the CrPC.
In each district, lynching and mob violence cases will be tried in fast-track courts, and the trial must be over in six months.
The Court suggested that the Parliament make lynching a separate crime that should be punished.
Conclusion
Mob lynching is a grave issue that poses a significant challenge to India’s democratic values and social fabric. The rise of mob lynching is a symptom of deeper social and political issues that must be addressed to ensure that India remains a vibrant and inclusive democracy.
It is essential that all stakeholders work together to address this issue and ensure that the perpetrators of mob lynching are brought to justice. Only then can India truly live up to its ideals of democracy, secularism, and human rights.
FAQs
What are the main causes of Mob Violence in India?
Mob violence in India often stems from religious tensions, political manipulation, social inequalities, and communal rivalries. Factors such as misinformation, emotional mobilization through social media, and historical grievances exacerbate these issues, leading to spontaneous outbreaks of violence.
Why is mob violence a significant topic for UPSC exams?
Mob violence is relevant in subjects like General Studies (particularly GS Paper II and III), Ethics, and Indian Society.
The Election Commission of India (ECI) has recognized the Eknath Shinde group as the official “Shiv Sena”, allowing them to use the official “Bow & Arrow” symbol and “Shiv Sena” name.
The Uddhav Thackeray faction has been allowed to use the name “Shiv Sena (Uddhav Balasaheb Thackeray)” and the symbol of the “flaming torch” for the upcoming bye-elections in the Maharashtra assembly.
In this context, this edition of the burning issue will elaborate on the topic of allotment of elections symbols, EC’s role and overall party politics in India. The topic is important for the upcoming Prelims as well as Mains Examination.
What are party election symbols?
An election symbol is a standardized symbol allocated to a political party. They are used by the parties during their campaigning and are shown on Electronic Voting Machines (EVMs), where the voter chooses the symbol and votes for the associated party.
They were introduced to facilitate voting by illiterate people, who can’t read the name of the party while casting their votes.
How does the Election Commission decide on party symbol disputes?
In the 1960s, the Government of India proposed that the regulation, reservation and allotment of electoral symbols should be done through a law of Parliament, i.e., Symbols Order.
In a response to this proposal, the Election Commission of India (ECI) stated that the recognition of political parties is supervised by the provisions of the Election Symbols (Reservation and Allotment) Order, 1968 and so will the allotment of symbols. In 1968, the Election Commission promulgated this order.
Symbols order has provisions regarding the registration and recognition of political parties as state and national parties.
Under Paragraph 15 of the Order, it can decide disputes among rival groups or sections of a recognized political party staking claim to its name and symbol.
As per the guidelines, when a recognized political party splits, the Election Commission decides on assigning the symbol by evaluating the support enjoyed by a claimant in both organizational and legislative wings. within the political party.
Where it is not possible to decide which group has a majority, the EC may freeze the party’s symbol and allow the groups to register with new names.
Additionally, the Supreme Court in the Sadiq Ali case (1972) formulated three tests for deciding on party symbol disputes. In this case, only one test proved conclusive.
3 tests formulated by the Supreme Court
Following are the three tests and their application as per which the ECI made its decision–
Test of Aims and Objects of the Party Constitution
Regarding this test, the ECI found that the test could not yield an effective outcome as both sides claimed adherence to the aims and objectives of the party. Therefore, ECI held–
“The application of this test will render an inconclusive answer for the purpose of adjudicating the present dispute.”
Test of Party Constitution
While applying this test, the commission found that the party constitution on which the respondent (Uddhav Thackeray faction) was placing strong reliance was undemocratic. Further, the complete list of office bearers of various bodies was not provided to the commission, whenever elections were held or appointments were made. As per the commission –
“Any reliance on the test of party constitution for determining the present dispute case would be undemocratic and catalytic in spreading such practices across parties.”
Test of Majority
The election commission of India found that the majority test was in favor of the petitioner (Eknath Shinde faction). The commission found that the majority test outcome in the legislative wing reflected the qualitative superiority of the majority test in favor of the Shinde faction.
Bigger Picture: Democratic Deficit in Political Parties
Several of the political parties in India have witnessed factionalism in the recent past some examples being Janata Dal (United), Samajwadi Party, Indian National Congress etc. highlighting the issue of democratic deficit in political parties.
In its order, the ECI highlighted the importance of internal party democracy. It stated–
“The requirement for a written constitution of political parties and an undertaking to the effect that such Constitution adheres to the norms of democracy prescribed in the Constitution of India is meant to promote inner party democracy.”
Other Issues with Political Parties in India
Lack of proper organisation: Another feature of the Indian party system is its lack of structure. Political parties live and die by their organization.
Groupism inside India’s party structure: In India, groupism is a major problem for every political party. This shatters a party’s cohesiveness, causing it to split into several factions. Ex. INC, NCP, TMC.
Extra-constitutional ways of gaining power: Political parties do not hesitate to utilize uncertain measures to gain political power in addition to legitimate means. Ex. Resort Politics
Populist tendencies: In India, it is well-noticed that political parties turn to populist politics to gain power. They take unfair advantage of people’s emotions and compulsions, promote populist slogans, and mislead the public. Ex. Temple reconstruction movements
Lack of discipline among party members: It has been observed that members of various political parties are unconcerned about party discipline, preferring instead to sling dirt at one another. Ex. Undue political statements
Communal characteristics: The people of India are influenced by caste and religion, and they have a strong sense of allegiance to their caste and religion.
Criminalization of politics: Leaders are valued for their capacity to attract crowds and raise funds as elections become more and more expensive.
How to attain Internal Democracy within parties?
Internal elections: It shall be the duty of the political party to take appropriate steps to ensure the holding of elections at all levels. The political party shall hold elections in an unpartisan way by their ‘karyakartas’.
Strengthening Anti-defection Law: The Anti-Defection Act of 1985 requires the party legislators to act according to the party whip which is decided by the diktats of the highest party leadership. One way to democratize political parties is to promote intra-party dissent.
Limited reservations: Seats can be reserved for women and members of the backward community including minorities.
Empowering ECI: The ECI shall be competent to inquire into allegations of non-compliance with any of the provisions requiring elections.
Social audit and penal provisions: ECI should have the penal power to deregister a party until free and fair elections in the party are conducted.
Encouraging a new generation of leaders: For a long, there is a widespread impression created that a lot of good people shy away from politics. It is, therefore, necessary that this impression be changed and efficient people brought into the political arena.
Way forward
The 170th report of the Law Commission of India on the reform of electoral laws dedicated an entire chapter to the necessity of providing laws relating to internal democracy within parties.
It observed that a political party that does not respect democratic principles in its internal working cannot be expected to respect those principles in the governance of the country.
The National Commission for Review of Working of Constitution states that there should be comprehensive legislation regulating the registration and functioning of political parties or alliances of parties in India.
Conclusion
The top leaders of the political parties need to introspect and allow for democratic decision-making in the party’s affair’s thus paving the way for intra-party democracy.
Such a step would strengthen the Party Culture in India, thus improving the Political ethics and overall Politics in India.
Tata Group-owned Air India (AI) placed two mega orders, adding up to a staggering 470 aircraft — for 250 planes with Europe’s Airbus consortium, and 220 with Boeing Co. of the United States.
This is the largest order placed by an airline in one go anywhere in the world, beating the 2011 order by American Airlines for a combined 460 aircraft. The biggest order by an Indian carrier before this was IndiGo’s 300-aircraft order in 2019.
In this context, this edition of the Burning Issue will elaborate on the deal and its impact on the Indian aviation sector. The topic will be relevant for the GS3 Mains Paper under the subheading Infrastructure development and Airports.
Details of the Air India order
The deal includes seventy of the 470 aircraft wide-body or twin-aisle planes for long-haul flights.
Airbus has got the bigger order, but the Boeing order includes an option for a 70-plane top-up, taking the possible order size to 540 aircraft.
The mega order cost for Airbus and Boeing aircraft is estimated between $70 billion and $80 billion.
Ever since Air India returned to the Tata Group, the new owners have been focussed on sprucing up the product offering, while also planning an extensive expansion for the airline.
A five-year roadmap–Vihaan.AI–was prepared with the objective of substantially growing the airline’s network and fleet in a bid to put it on a “path to sustained growth, profitability, and market leadership”.
About Indian Aviation Industry
One of the fastest-growing: The Indian aviation industry is one of the fastest-growing aviation markets in the world.
Undergone a significant transformation: Over the last decade, it has undergone a significant transformation, with the rise of low-cost carriers, increased competition, and modernization of airport infrastructure.
Growth: The Indian aviation industry has been growing at a rapid pace in recent years. According to the International Air Transport Association (IATA), India is expected to become the third-largest aviation market by 2025.
Domestic and International Market: The Indian aviation industry has a mix of domestic and international airlines. The domestic market is dominated by low-cost carriers such as IndiGo, SpiceJet, and GoAir, while the international market is dominated by full-service carriers such as Air India and Jet Airways.
Government Support: The Indian government has been supportive of the aviation industry’s growth and has introduced several initiatives to encourage investment and development in the sector. These include the Regional Connectivity Scheme (RCS) called UDAN, which aims to improve connectivity to remote and underserved regions in the country.
Infrastructure Development: In recent years, there has been significant investment in airport infrastructure in India. The country has over 100 operational airports, and several new airports are under construction or in the planning stages.
Skilled Workforce: The Indian aviation industry has a skilled and well-trained workforce, with several world-class aviation training institutions. Indian pilots and cabin crew are in high demand globally.
What is driving Indian Aviation Sector Growth?
Already third largest domestic market: India is the third largest domestic aviation market after China and the US. The annual domestic air traffic in pre-covid 2019 for India stood at 144 mn passengers.
Income growth and demographic dividend: Increasing income levels, an aspirational middle class, competition between low-cost carriers and enhanced connectivity and infrastructure.
Potential to become the 3rd largest international market: The government and the industry say India could become the third largest international — not just domestic — aviation market given the huge gap between potential and current air travel penetration.
How will Indian aviation shape up?
A major shift could happen in the market: So far, IndiGo’s been the largest player with strong promoter support but there are visible signs of competition from Air India and Akasa Air. Indian airlines will eye a greater share of outbound international traffic from the current level of around 45%.
While Air India is expected to cross foreign carriers in flights to US and Europe, IndiGo is eyeing Europe and East Asia by 2024. The government has asked airlines and airports to work towards multiple international hubs in India.
According to IBEF, India is poised to improve its position from the 7th largest in civil aviation to the third largest in the next 10 years. Given India’s demography and increasing purchasing power, domestic air traffic will certainly move higher.
Significance of the deal
Aspirational Air India: It has put Air India in the league of “aspiring” global airlines. The debt-ridden carrier, which was taken over by the Tata Group in early 2022, plans to turn into “a world-class proposition”. Experts say the bulk order indicates Air India’s intent to reclaim its “pole position” in the domestic aviation market, as well as expand its presence in international routes, BBC reported.
Reduce Dependence on Foreign Flyers: the large fleet that will be acquired by Air India will help in reducing the dependence of Indian flyers on foreign carriers such as Emirates, Qatar Airways, Etihad and other Middle Eastern airlines. These orders directly synergize Air India’s fleet with Lufthansa and Singapore Airlines – all part of Star Alliance, the world’s largest global airline alliance,
Help enter markets like the US: The purchase of wide-bodied aircraft like the A350s will allow Air India to enter markets like the US and Australia directly by offering non-stop flights from India to these places.
Cater to the need of Indian aviation: Air India’s new fleet will help in catering to the needs of India’s growing aviation market. Demand for air travel is again seeing a surge in India and other parts of Asia after the COVID-19 pandemic. As per ICRA, with 986 lakh flyers, domestic air traffic increased 63 per cent year-on-year between April and December 2022 in India.
May give a boost to Make in India and employment: The deal can also create jobs for Indians. The Tata group chairman has hinted that some of the aircraft parts could be manufactured in India, which will boost domestic manufacturing and create job opportunities.
Improves India’s global Standing: the deal is “important for the industry because, given the recent turbulence in the China market, the alternative growth market in India,”
Political signals: “India is also sending a strong political signal that it wants to remain attached to the West at a time when it has appeared ambiguous on Russian sanctions,”
Impacts on bilateral relations
India-France: At a virtual event attended by the Tata Sons chairman and French president Emmanuel Macron said that the Air India deal reflects deepening ties between India and France, as well as the successes and aspirations of India’s civil aviation sector. This achievement shows that Airbus and all its French partners are fully dedicated to developing new areas of dedication with India.
India-US: The Indian prime minister and US President Biden acknowledged the Air India and Boeing deal as a “shining example of mutually beneficial cooperation”. The two leaders also expressed a desire to bolster bilateral cooperation in space, semi-conductors, supply chains and defense co-production.
India-UK: British prime minister Rishi Sunak also said the Airbus-Air India deal would generate employment opportunities around the UK. This is one of the biggest export deals to India in decades and a huge win for the UK’s aerospace sector.
Challenges
Funding: When the Tatas took over the company, they had absorbed around ₹15,300 crores of the total debt of ₹61,562 crore belonging to the bleeding air carrier. Thus, it will be challenging for AI to raise a loan of US $50-60 billion to fund the deal.
Mere customer: if the Make-in-India clause is not added to the deal’s final agreement, India could end up being a ‘mere customer’ of goods with the least direct benefit to the Indian economy.
Operating costs are high: The Indian aviation industry has many difficulties, including high operating costs. This is caused by a multitude of things, including exorbitant fuel costs, airport fees, and taxes. If all these continued, the profit from these new aircraft will remain low.
Infrastructure Barriers: The Indian aviation industry is further hampered by outdated air traffic control systems, insufficient ground support services, and restricted airport capacity.
Regulatory Framework: The regulatory framework is a source of difficulties for the Indian aviation industry.
Conclusion
Overall, the Indian aviation industry has come a long way in recent years and is poised for further growth in the future. There will be a shakeout in India’s aviation sector, with the ‘Maharajah’ once more ascending the throne to reign supreme over India’s skies.
With a large jump in international air carriers from India, the deal promises to make India an international hub for air travel. The government’s support, investments in infrastructure, and skilled workforce will be critical to ensuring the industry’s success in the years ahead.
The India Energy Week in Bengaluru held from February 6th to 8th marks the first
major event under India’s G20 presidency. The event highlighted the need for energy transition and energy security.
Thus, this edition of the burning issue will elaborate on the concept of energy security and energy transition.
What is Energy Security?
Energy security is the uninterrupted process of securing the amount of energy that is needed to sustain people’s lives and daily activities while ensuring its affordability.
Per the International Energy Agency (IEA), energy security has two main aspects: long-term and short-term energy security. The former deals with investments in energy supply and how it connects to timely economic developments and environmental needs.
The latter, on the other hand, mainly tackles how the energy system is able to carry out prompt responses to sudden changes in the energy supply and demand cycle.
Why Energy Security is important?
Sustain economic growth: Access to energy affects the provision and sustainability of humans’ basic needs. Apart from that, it also contributes to a country’s economic growth, political stability, and overall development and security of other sectors such as agriculture and manufacturing.
Sustainable energy planning: Along with energy accessibility, affordability, and sustainability, energy security forms a significant part of determining sustainable energy planning.
Food security: Energy security is tied to food security and food transportation, in a way that the agricultural sector is both an energy user and an energy generator. Further, food production covers about 70% of water consumption and 6% of energy consumption on a global scale.
The rapid growth of energy demand brought about by economic expansion, population growth, new energy uses, and income growth makes energy security a pressing concern.
What is Energy Transition?
Energy transition refers to the global energy sector’s shift from fossil-based systems of energy production and consumption — including oil, natural gas and coal — to renewable energy sources like wind and solar, as well as lithium-ion batteries.
The increasing penetration of renewable energy into the energy supply mix, the onset of electrification and improvements in energy storage are all key drivers of the energy transition.
Regulation and commitment to decarbonization have been mixed, but the energy transition will continue to increase in importance as investors prioritize environmental, social and governance (ESG) factors.
Historically speaking, energy transitions are not new. In the past, we have seen huge epoch-marking shifts like the transition from using wood to using coal in the 19th century or from coal to oil in the 20th century.
The energy transition, however, is not only limited to the gradual closure of coal-fired power stations and the development of clean energies: it is a paradigm shift that concerns the entire system.
Why Energy Transition is needed?
Paris deal commitment: In December 2015, at COP 21 in Paris, an international agreement has signed that set the target of limiting global warming by the end of this century to below 2°C compared with pre-industrial levels and preferably limiting it to 1.5°C. In order to achieve this goal, our main tool is the energy transition
Protecting the Planet: The urgency of protecting the planet from the greatest threat it has ever had to face, and of doing so as quickly as possible. This impetus has accelerated the changes in the energy sector
Why the alignment of the two concepts seems difficult?
Lack of financial resources: energy transition for energy security requires huge financial resources which most nations especially developing nations lack.
Lack of mature new energy technology: most of the technologies which are needed for the energy transition such as 3rd generation bio-fuels, green hydrogen, fuel cell etc. are still in the developmental stage and require maturity to be deployed at large scale.
Still heavy dependence on fossil fuels: due to their nature and availability, the world is still heavily dependent on fossil fuels for its energy need. Even developed nations like Britain, the US, Russia etc. still get their majority energy supplies in form of non-renewables.
A wide gap between developed and developing nations: A sharpening divide between advanced and developing countries on priorities in the transition. The developed nations are pressurizing developing nations to go for energy transition whereas the developing countries demand developed nations to pay for this transition and blame them for the climate crisis.
Balancing present with future: overnight transition to renewable is neither possible nor desirable. What is needed is to balance the needs of the present and future with a simultaneous and gradual reduction of non-renewables and increase deployment of renewable energy.
Challenging international situation: such as the Russia-Ukraine war, high inflation, slow international growth has made nations to again go back to nonrenewable sources such as coal and natural due to more availability and cheaper price leading to increased demand for coal after a decade.
No ideal energy mix: There is no ideal mix that will be unanimously adopted worldwide. The energy transition is specific to each country or group of countries, even if the aim during international climate summits is to adopt major global objectives.
The transition process is slow: Energy systems lack momentum, making energy transitions a slow process.
How to bring equilibrium between the two?
Increase funding to promising technologies: The expert view is that the government should consider innovative market reforms to further incentivize the deployment and uptake of renewable energy (RE). It pointed out that government should provide support for RE technologies, including utility-scale battery energy storage systems, round-the-clock plants, and decentralized renewable energy that can replace our dependence on thermal power plants.
Risk management: To improve the energy security situation, risk management is key. This process involves eliminating risks by diversifying energy sources, absorbing risks by creating a reserve margin of power generation capacities, and preparing for inevitable supply disruptions by creating strategic reserves.
Funding developing countries: the developed nations under their commitment made in Paris deal 2015 must provide the fund to developing nations to deploy renewable sources of energy.
Reduce support for fossil fuels: The government should also avoid providing fresh support for coal-based thermal power and phase out existing support measures. In FY21, coal subsidies continued to be two times higher than that for RE and stood at ₹12,976 crore.
Accelerate deployment of RE: India needs to invest in deflationary renewable energy. The pace of deployment of RE has been slow, so the government should accelerate the deployment of RE and other flexible generation sources to make RE a firm power
Conclusion
“The Stone Age did not end for lack of stone, and the Oil Age will end long before the world runs out of oil.”
The energy transition is vital to saving the planet from the effects of climate change. Major transformations are underway in the global energy sector, from growing electrification to the expansion of renewable energy, upheavals in oil production and globalization of natural gas markets.
India also needs to ensure long-term planning to ensure universal energy access and meet its commitment under Paris Agreement to ensure sustainable growth, energy security, and successful energy transition.
In a little over a week since New York-based investor research firm Hindenburg Research has accused industrialist Gautam Adani-led conglomerate of “brazen stock manipulation and accounting fraud scheme over the course of decades”.
This edition of the Burning issue will elaborate on the Hindenberg research issue and other factors coming out of the issue.
About the Hindenberg group and its report
Hindenburg Research is a company that specializes in forensic financial research.
It especially looks for accounting irregularities; undisclosed related-party transactions; illegal/ unethical business or financial reporting practices; and undisclosed regulatory, product, or financial issues in companies.
In late January, Hindenburg Research, which specializes in short selling, published a report critical of the group’s finances.
The research firm, which has short positions in Adani companies through US-traded bonds and non-Indian-traded derivative instruments, said key listed companies in the group had “substantial debt” which has put the entire group on a “precarious financial footing”.
Outcome of the report
The seven listed firms have still lost about half their market value – or more than USD 100 billion combined – since the US-based short-seller last week questioned the group over its debt levels, Reuters reported. The listed Adani firms now have a combined market value of USD 108 billion, versus USD 218 billion before Hindenburg’s report.
Political storm: The report has also caused a political storm in the country with opposition stalling the parliament and demanding a JPC or Supreme court led investigation of the allegations against the Adani Group on the basis of the Hindenburg report.
UPSC exam perspective
Since the issue is still evolving and both sides are claiming them to be true, the actual truth remains unknown.
Therefore, this article will tell about both facets of the issue.
The Brighter Picture
Importance of Billionaires for a Nation
Development of industries: Companies established by these billionaires invest in the development of industries in a nation which in turn helps in the development of the nation. The Reliance group’s telecom giant Jio, Reliance petrochemical plants and Adani Ports, energy are to name a few.
The face of nation: billionaires represent the face of their nation. Bill Gates, Elon musk, Jack Ma, Mukesh Ambani are well-known billionaires recognized around the world.
Brings investment: the companies of these billionaires attract a huge amount of foreign investments which help a lot in bringing new technologies and also capital in the domestic economy. For example- Google has paid ₹33,737 crores to Jio Platforms Limited, a subsidiary of the Mukesh Ambani-owned Reliance Industries Limited (RIL).
Reduce import dependence: With the coming of new technologies or establishing industries for the manufacturing of the products not produced in the country, companies of these billionaires help in reducing imports of the nation. For example, the TATA group, Reliance and Adani have established their defense manufacturing companies which are helping in reducing defence imports and indigenization of defence products.
Represent face of emerging India– Oxfam India’s latest report which was released on the opening day of the World Economic Forum in Davos, Switzerland reveals that the total number of billionaires in India increased from 102 in 2020 to 166 billionaires in 2022. It’s an indication of the growing economy in India.
High taxes to government: The billionaires and their companies pay high amounts of taxes to the government, therefore, helping the nation grow. According to an estimate, A 2% tax on the top 100 billionaires would give the government enough money to raise health expenditure to 3% of the GDP.
Philanthropy: Billionaires in India are well known for their philanthropy. Billionaires Gautam Adani, HCL Technologies’ Shiv Nadar, and Happiest Minds Technologies’ Ashok Soota are the three Indians who have been named in the 16th edition of Forbes Asia’s Heroes of Philanthropy list.
The case of Adani group and its contribution to India’s growth
Adani Group is one of India’s largest conglomerates and is involved in a wide range of industries and activities, including energy, infrastructure, logistics, resources, agribusiness, and real estate.
Adani has been instrumental in the development of India’s energy security, with the Adani Group owning and operating the world’s largest solar power plant in Gujarat. Additionally, Adani’s efforts have resulted in the development of numerous infrastructure projects across India, such as ports, airports, roads, and highways. His company is also involved in activities such as mining, power generation, and transmission, and is a major player in the renewable energy sector.
In addition to his business accomplishments, Adani has also been involved in several philanthropic initiatives, such as the Adani Foundation, which provides education and healthcare services to underprivileged communities.
The Darker Picture
Leads to crony capitalism: A political-economic system in which success in business depends on close relationships between business people and government officials, rather than on merit and competition. Adani Group (CAG report highlighted “undue benefits” that the Gujarat government gave to Adani Ports by waiving waterfront and other charges); The 2G spectrum scam; Coalgate Scandal etc. Also, India was ranked in 9th position in crony capitalism where crony sector wealth accounted for 3.4% of Gross Domestic Product (GDP)
Creates Distrust in the economy: The revelation of facts, such as by the Hindenberg Report, creates distrust in the economy leading to decreased capital inflows and thus investments.
Stock market crashes: Such a report causes economic loss to companies as happened recently with Adani company’s stocks.
Propaganda against India: such reports are also claimed to be part of the propaganda to tarnish India’s image at the global level. The timing of the release of the Hindenburg report is susceptible- just before release of Rs 20,000 crore FPO by Adani group and the Budget session of Indian parliament.
Ethical issues with billionaires
Tax Avoidance: Many billionaires take advantage of loopholes and offshore accounts to avoid paying taxes on their income, depriving governments of much-needed revenue.
The exploitation of Workers: Billionaires often employ workers from developing countries, paying them low wages and subjecting them to poor working conditions.
Political Power: Some billionaires use their wealth to influence politicians and governments, creating a system of unequal power and privilege.
Concentration of Wealth: The vast wealth of billionaires is often seen as morally wrong when so many people in the world live in poverty.
Conclusion
The ultimate major loser in this row is the investors in Adani Group who suffered losses after the short-seller Hindenburg Research’s report. Thus, currently, there is a need to safeguard the investors.
The Securities and Exchange Board of India (SEBI) should suggest measures to ensure the protection of Indian investors after the short selling.
Simultaneously, the allegations against Adani Group must be verified by SEBI through an independent inquiry along with the role of Hindenberg Research in the whole issue.
In the Union Budget for 2023-24, Finance Minister Nirmala Sitharaman chose the path of relative fiscal prudence and projected a decline in fiscal deficit to 5.9% of gross domestic product (GDP) in FY24, compared with 6.4% in FY23.
Ms. Sitharaman said the government planned to continue on the path of fiscal consolidation and reach a fiscal deficit below 4.5% by 2025-26.
In this context, this edition of the burning issue will elaborate on the issue of the Fiscal deficit of the Indian government and its roadmap for fiscal consolidation.
What is a Fiscal Deficit?
Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure.
A fiscal deficit situation occurs when the government’s expenditure exceeds its income.
Simply put, it is the amount the government spent beyond its income and is measured as a percentage of the GDP.
The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003 which set targets for the government to reduce fiscal deficits. The Budget 2019-20 has pegged the fiscal deficit for the year 2019-20 at 3.3% of GDP.
Current situation of Fiscal Deficit in India
Reduced fiscal deficit target: In Union Budget 2023-24, the fiscal deficit to GDP is pegged at 5.9% in FY24. This ratio has declined from 6.4% in 2022-23 (revised estimate) and 6.7% in 2021-22 (actual).
Reduced revenue deficit: In the revenue budget, the deficit was 4.1% of GDP in 2022-23 (revised estimate). In Union Budget 2023-24, the revenue deficit is 2.9% of GDP. If interest payments are deducted from a fiscal deficit, which is referred to as the primary deficit, it stood at 3% of GDP in 2022-23 (RE).
The primary deficit, which reflects the current fiscal stance devoid of past interest payment liabilities, is pegged at 2.3% of GDP in Union Budget 2023-24.
India is ‘fairly’ confident to meet its target to cut its fiscal deficit by nearly 200 basis points to 4.5% of GDP in the next three years, assuming there is no major global economic shock.
As economic growth continues and the government aims to cut spending on subsidies, the deficit should be able to fall to 4.5% of GDP by 2025/26.
What is fiscal consolidation?
Fiscal consolidation refers to the ways and means of narrowing the fiscal deficit. A government typically borrows to bridge the deficit. It will then have to allocate a part of its earnings to service the debt.
The interest burden will increase as the debt increases. In the Budget for FY22, of the total government expenditure of over ₹34.83 lakh crore, more than 8.09 lakh crore (around 20 percent) went towards interest payment.
Debt is one liability that is difficult to defer and, at the end of the day, the government struggles to find more resources not just for capital expenditure but also for revenue expenditure. In the long run, the uncontrolled fiscal deficit will hurt economic growth.
Is fiscal consolidation legally mandated in India?
The seeds for fiscal consolidation were sown in 1994 by the then Finance Minister Manmohan Singh. In his budget speech for FY95, he highlighted the need for fiscal discipline and pronounced a policy to end monetizing the deficit.
As open market borrowings piled up to fund the deficit, Yashwant Sinha in his budget speech for FY01 called for a strong institutional framework to ensure fiscal responsibility. This resulted in the enactment of the ‘Fiscal Responsibility and Budget Management (FRBM) Act, 2003’, which mandated limiting the fiscal deficit to 3 percent of GDP.
What is the government doing to achieve fiscal consolidation?
The fiscal policy needs to remain “accommodative”: with a focus on gross capital formation in the economy with enhanced capital spending, especially infrastructure investment.
Enhanced capital spending: In Budget 23-24, capital spending is expected to rise to 3.3% of GDP. Ms. Sitharaman stressed that infrastructure investment has a larger multiplier effect on economic growth and employment. In this context, various schemes such National Monetization Pipeline, Gati Shakti Yojana, etc. have been launched.
Helping states too: The interest-free loan of ₹1.3 lakh crore for 50 years provided to States should help them spend and boost growth.
Increased revenue of the government: According to the CGA data for the first eight months of FY23, GoI’s gross tax revenues (GTR) has shown a growth of 15.5% which is just above the nominal GDP growth of 15.4% estimated for the full year of FY23. With this, the GoI’s GTR may be estimated at INR31.3 lakh crore in FY23, exceeding the budgeted magnitude by about INR3.7 lakh crore.
Reducing subsidies: Two favorable trends relate to the prospect of moderation of global crude prices accompanied by a fall in inflation. This may open up the possibility of reducing some of the relatively large petroleum price-linked subsidies. While the GoI has already committed to an expanded free food grain scheme under PM-GKAY, some of the fertilizer and petroleum subsidies may be reduced.
What are the challenges?
Less consolidation by states: The states have less fiscal consolidation to do than the central government.
Committing to High-quality spending: Both have a common challenge to commit to more capex, which is considered high-quality spending as it “crowds in” private investment if done responsibly. And we believe that investment is the only sustainable way to increase the capacity of the economy to grow and create jobs.
Balancing the capex and fiscal consolidation: For the central government, the challenge is to hold on to its capex push at a time of fiscal consolidation. For the states, the challenge is to start doing more.
Is there a trade-off between fiscal consolidation and growth?
It is debatable. Many economists have said that speedier economic growth depends on limiting the fiscal deficit. They reason that a high fiscal deficit will increase borrowings and the interest burden would curtail the government’s ability to spend productively. Also, increased government borrowing will crowd out the private sector in the debt market, leading to higher interest rates, which will hurt growth.
Other economists have argued that fiscal consolidation is not a fiscal compression mechanism, rather it is an expenditure-switching mechanism. The original FRBM Act of 2003, they say, pushed for shifting the expenditure from revenue to capital, which will lay the foundation for higher growth. They argue that the FRBM Amendment Act of 2018 completely dilutes the original Act to become contractionary.
What more can be done? The way forward
Supporting growth in the short and medium term: Given the relatively lower revenue growth expected in FY24, it may be best to contain the growth of revenue expenditure and continue to emphasize capital expenditure growth as it is associated with higher multipliers.
Infrastructure expansion should continue: to be the main priority for government expenditure while continuing to encourage Aatmanirbhar Bharat.
Promote Employment generation: The GoI may also need to signal its priority for employment creation. The sector that suffered the most during COVID-19 was trade, hotels, transport, storage et. al. which is employment intensive. This sector would need to be supported through government programs that generate demand specific to these segments.
Urban employment schemes: It would also be worthwhile considering whether the rural employment guarantee scheme should be extended to urban areas as has been done by some state governments.
Raising the tax revenue through formalization: Continued formalization of the economy that raises tax revenues (though “organic” formalization will likely be more sustainable than “forced” formalization).
Disinvestment of PSUs: A bigger push for disinvestment by selling stakes in public-owned companies, and further tax reforms (in terms of direct taxes and the GST).
Conclusion
Fiscal consolidation and capital expenditure should go hand in hand. More government spending means more infrastructure building and more chances of growth and employment. However, this spending should be done with a sound fiscal base.
Thus, careful calibration would be required for limiting revenue expenditure growth in order to retain space for capital expenditure to grow adequately with a view to supporting growth.
This year’s 30th January marks the 75th death anniversary of the Father of the Nation- MK Gandhi. Also, a movie named “Gandhi-Godse: Ek Yudh” was recently released highlighting the different aspects related to the assassination of Gandhi.
In this context, this edition of the burning issue will elaborate on Gandhiji and his ideas and their relevance in the modern world.
About Mahatma Gandhi
Mohandas Karamchand Gandhi, popularly known as Mahatma Gandhi, is regarded as the Father of the Nation. Gandhi was born on 2nd October,1869 in Gujarat and studied law at the Inner Temple, London.
Gandhi was a social reformist and leader of the Indian Independence Movement who introduced the idea of non-violent resistance called Satyagraha.
After organizing a civil disobedience movement for Indians living in South Africa, he returned to India in 1915. In India, he set out on a train journey to different parts of the country trying to understand the problems of farmers, peasants and urban laborers and organizing protests for them.
He assumed the leadership of the Indian National Congress in 1921 and rose to become its most prominent leader and iconic figure in Indian politics.
Gandhi also wrote extensively for various newspapers and his symbol of self-reliance – the spinning wheel – became a popular symbol of the Indian Independence Movement.
Gandhi played a key role in pacifying people and averting the Hindu-Muslim riots as tensions rose before and during the partition of the country. He was shot dead by Nathuram Godse on January 31, 1948.
What happened after Gandhi’s Assassination?
Mahatma Gandhi was walking towards the prayer mandap at Birla House in Delhi when 35-year-old Nathuram Godse came before him and pulled out a pistol from his pocket. He fired three shots from point-blank range that hit Gandhi in the chest, stomach, and groin. Within 15 minutes, the Father of the Nation was dead.
Godse was apprehended by military personnel who were at the spot, and his pistol was snatched away. The assassin was beaten by the crowd before police took him into custody. Subsequently, he was lodged at a police station on Tughlaq Road, where an FIR was registered. The trial began in May 1948 at a special court set up in Delhi’s Red Fort.
The judgment was pronounced on February 10, 1949. Judge Atma Charan convicted Godse, Apte, and five others of the crime. Both Godse and Apte were sentenced to death. Savarkar was acquitted.
The hanging of Godse and Apte became inevitable after the Governor-General of India rejected their mercy petitions. Godse’s mercy petition was filed by his parents, not him. Both men were hanged on November 15, 1949, in Ambala jail.
Ideas of Mahatma Gandhi
Concept of Non-Violence:
Gandhi adopted the word ‘non-violence’ which means refraining from the use of physical force capable of causing injury or death to the opponent. Even though Gandhi admits that he could not succeed in defining ahimsa fully the meaning of this word developed further in the hands of Gandhi. Ahimsa means and includes non-violence in thoughts, words and deeds toward all sentient beings.
Concept of Satyagraha:
The term satyagraha is derived from a compound word in Sanskrit, Satya and agraha. Satya means that which is in accordance with sat or being, that is, truth. Agraha means holding fast, adherence or insistence. Thus, the compound word satyagraha means clinging to truth, holding fast to truth, insistence on truth or firm adherence to truth. In the socio-political field satyagraha was a kind of resistant movement against unjust laws. He adopted the term satyagraha which would give almost the same meaning of ‘Passive Resistance.’
Concept of Nai Talim:
The phrase Nai Talim is a combination of two words- Nai Means ‘New’ and Talim – an Urdu word-means ‘Education’. In 1937, Gandhiji introduced the concept of Nai Talim in India. It aimed to transform the Indian education system which was based on colonial education at that time. It is an approach to the total personality development of the body, mind and spirit of the students
Concept of Trusteeship:
Trusteeship is a socio-economic philosophy developed by Mahatma Gandhi as a part of his nonviolent revolution. It is a concept where a person voluntarily gives up or renounces his right to the money earned by him and dedicates it to the welfare of the poor section of society.
Pillars of Gandhi’s philosophy
The main pillars of Gandhi’s philosophy were non-violence, tolerance of others, respect for all religions, and simple life.
Compassion:
Gandhi believes that the true core of a person is the part that is not selfish and which works for others. He is saying that the essence of what we are (the thing that we have to find) is caring for others.
Truth:
Gandhi, in short, was a leader looking for a spiritual cause. He found it, of course, in his non-violence and, ultimately, in independence for India. Truth, Satya, was the central axis of the Gandhian system of thought and practice. For Gandhi, everything turned on Truth – satyagraha, swaraj, ahimsa, ashram, brahmacharya, yajna, charkha, khadi, and finally, moksha itself. Gandhi’s life and ideas are arranged around the axial principle of Truth.
Secular:
Gandhi made great use of the Bible in his prayers, teachings, writings and Ashram liturgies. He was often accused of being a crypto-Christian. Gandhi considered interculturalism as a call for simultaneous awareness of commonalities, acceptance of differences, and recognition of shared values.
Honesty:
Gandhi had a blend of sincerity and efficiency bringing forth the most positive strength. Gandhi accomplished any given task with honesty and diligence. Once a decision was made he gave his all to it. He used to follow up till the end of the task. He used to be positive even under all difficult circumstances and had an optimistic view of life and never lost hope. He maintained impeccable integrity in individual life and public conduct
Dignity:
He looked at life holistically and worked with utmost concentration. He treated all work as a God-given gift and all jobs were of equal importance. He had a keen desire to restore the dignity of all human beings. Advanced on the path of morality, spirituality and ethical progress by being firm on Truth
Some famous quotes from Gandhiji
· “I understand democracy as something that gives the weak the same chance as the strong.”
· “A man is but the product of his thoughts. What he thinks, he becomes.”
· “If instead of insisting on rights, everyone does his duty, there will immediately be the rule of order established among mankind”
Global impact of Gandhi
Historians say Gandhi proved that one man has the power to take on an empire, using both ethics and intelligence. Other peaceful resisters such as Martin Luther King Jr. during the 1960s civil rights movement and Tibet’s Dalai Lama have emulated his methods in years since, shaking up the dynamic of world politics in the process.
Martin Luther King Jr. is said to have been heavily influenced by Gandhi’s philosophy of non-violence, believing it to be the only logical approach to the problem of race relations in America.
Gandhi-King Initiative: The initiative is an exchange program between India and the U.S. to study the work and legacies of Gandhiji and civil rights leader Martin Luther King Jr. It will establish annual scholar and student exchange programs for Indians and Americans to study the leaders’ legacies and visit historic sites in India and the U.S. The visits will be relevant to India’s freedom struggle and the U.S.’s civil rights movement.
Impacted the world leaders: He firmly believed that the spirit of genuine reciprocity and solidarity is not just a moral requirement, but also a geopolitical necessity. The Gandhian technique of mobilizing people has been successfully employed by many oppressed societies around the world under the leadership of people like Martin Luther King in the United States, Nelson Mandela in South Africa, Aung San Suu Kyi of Myanmar which is an eloquent testimony to the continuing relevance of Mahatma Gandhi.
But then, why he is criticized also?
In South Africa, academics Ashwin Desai and Goolam Vahed, in their book The South African Gandhi: Stretcher-Bearer Of Empire, have questioned Gandhi’s role in upholding the British empire and fighting only for the rights of Indians, and not of others, there.
His statue in Johannesburg was once smeared with white paint (symbolically implying that Gandhi was an apologist of the country’s Whites). South African cities have debated whether or not to have more commemorations. A university in Ghana has removed a Gandhi statue because of his allegedly “racist” views on ethnic Africans.
Jawaharlal Nehru was a believer in the non-violent satyagraha politics that Mahatma Gandhi espoused during the freedom struggle. But on the finer points of politics, Nehru differed vastly from Mahatma Gandhi. Mahatma Gandhi believed in dharma-based politics while Nehru’s ideas of politics were deeply entrenched in democratic socialist principles. Mahatma Gandhi looked for continuity in India’s socio-political fabric by doing away with certain “impurities” that had crept in. Nehru advocated a reform towards modernity.
Nehru did not approve of Gandhi’s economic ideals that called for the only limited adoption of modern technological progress. Nehru, on the other hand, rejected these ideas and favored big factories based on the latest technologies.
BR Ambedkar also criticized Gandhi. Gandhi believed that the caste system was the basis of Indian society, particularly the majority Hindu community. Mahatma Gandhi opposed caste discrimination but he did not reject the social structure that bred bias against people based on their birth.
Ambedkar, on the other hand, held the caste system as the root of all the social evils that Indian society faced. He also rejected Mahatma Gandhi’s idea of making the village a unit of administration. Ambedkar favored a wholesome change in the village structure as he believed that the village was the breeding ground for caste discrimination and communalism.
But his ideas and principles are still relevant today, like
Ahimsa:
Mahatma Gandhi’s principle of non-violence is very relevant as the world faces terrorism and other forms of violence. In present times, the ideal of non-violence needs to guide the approach of individuals and nations, and world organizations, like violence, initiate a vicious circle of repression and injustice.
Satyagraha:
Gandhiji called the general method of nonviolent action ‘Satyagraha’. It is the expression of the purest spiritual power against all injustice, oppression, and exploitation. Satyagraha was thought of as the moral alternative to war.
Anna Hazare’s anti-corruption protest for Lokpal, and the farmer’s protests against the Farm Laws have also resorted to non-violence satyagraha to meet their demands.
Swadeshi:
Indigenous peoples focus on political and economic action inside and outside their communities. It is the interdependence of community and self-reliance. Gandhi’s thought of swadeshi is still prevalent in our society, by taking steps towards making India self-reliant.
During the Covid times, when India was witnessing a severe economic crisis, Prime Minister Narendra Modi called ‘Atma Nirbhar Bharat‘, the second version of Swadeshi. This swadeshi form aims to make the country self-reliant. In order to free the country from the shackles of hunger, unemployment, and poverty, swadeshi is the best path to unshackle these.
Secularism:
Gandhiji was tolerant of all religions. Today, the world needs more and more religious and intelligently tolerant people in societies where violence is perpetrated in the name of religion. In society, tolerance helps to neutralize religion, caste, ethnicity, region, etc. in the world, based on day-to-day ethnic-Centered prejudices.
Communal Harmony:
Gandhi always made an effort for Hindu-Muslim unity. At the present time, this ideology is equally significant. If Hindus and Muslims are united, the country can reach the heights of becoming a world power. A person should always respect others’ faith. Cases of mob lynching are also violating the Gandhian ideology of communal harmony, so steps should be taken in this direction.
Decentralization:
The Gandhian idea of decentralization was implemented in democracies through the 73rd and 74th amendments, which empowered local self-governments at the grassroots level. Indian Government, for instance, has implemented local self-government by adopting the Panchayati Raj and Municipality system in rural and urban areas, respectively, and providing them with some subjects under the state list. This ideology of Gandhi is still relevant and plays a vital role in India’s grass root development.
Cleanliness:
Gandhi paid great attention to purity, or cleanliness and was a staunch advocate of ‘Swachhata’. He used to say, “Cleanliness hi Seva.” India’s most significant cleanliness initiative, the recently implemented Swachh Bharat Abhiyan, fulfills Bapu’s dream of making India clean.
Sustainable Environment:
Gandhi always spoke of the minimization of wants and advocated a nature-friendly idea. Gandhi believed that “there is enough on earth for human needs but not enough for human greed.” These lines from Mahatma Gandhi show how human behavior destroys nature, and there is a need for a sustainable lifestyle in our times.
The world revolves around global warming, climate change, and resource depletion, and all environmental covenants and sustainable development efforts must implement Gandhi’s philosophy.
Women Emancipation:
Gandhi played a vital role in bringing women out of their domestic work and involved them in public life. He was against the patriarchal form of society. With glass ceilings still far from being shattered in the public sphere, the Gandhian thought of women’s emancipation remains relevant.
Conclusion
Albert Einstein explained Gandhiji’s importance in the following quote, “Generations to come, it may well be, will scarce believe that such a man as this one ever in flesh and blood walked upon this Earth.” The quote is sufficient to summarize the personality of Mahatma Gandhi.
Gandhi’s thought was an inspiration for society. Ultimately, all ideas and thoughts of the Mahatma were reached by him via lifelong experimentation with truths, which makes Gandhian thoughts more significant in the present era.
In order to become a superpower during the ‘Amrit Kaal’, India should pay homage to Gandhian ideology and walk in the assigned path.
