Category: Burning Issues

Context

• The Indian Parliament passed the Constitution 124th (Amendment) Bill, 2019 that seeks to provide 10 per cent reservation in jobs and educational institutions to economically backward section in the general category.

Background

124th Constitution Amendment Bill (2019)

• Constitution 124th Amendment Bill, 2019 provides ten per cent reservation to the economically weaker sections (EWS) in the General category. The bill facilitates reservation for EWS in direct recruitments in jobs and admission in higher educational institutions.
• The reservation of EWS of general category will be given without tampering the existing quotas for SC, ST and OBCs people.
• The bill is expected to benefit a huge section of upper castes including Brahmins, Rajputs (Thakurs), Jats, Marathas, Bhumihars, and several trading castes including Kapus and Kammas.

What will the “Economically Weaker Sections Quota bill” amend in the Indian Constitution?

• Amendment to Article 15 (Reservation in Educational Institutions)
• In article 15 of the Constitution, after clause (5), the following clause shall be inserted, namely:—
  ‘Nothing in this article or sub-clause (g) of clause (1) of article 19 or clause (2) of article 29 shall prevent the State from making,— any special provision for the advancement of any economically weaker sections of citizens other than the classes mentioned in clauses (4) and (5) in so far as such special provisions relate to their admission to educational institutions including private educational institutions, whether aided or unaided by the State, other than the minority educational institutions referred to in clause (1) of article 30, which in the case of reservation would be in addition to the existing reservations and subject to a maximum of ten per cent of the total seats in each category.
• Amendment to Article 16 (Reservation in Jobs)
• In article 16 of the Constitution, after clause (5), the following clause shall be
  inserted, namely:— “(6) Nothing in this article shall prevent the State from making any provision for the reservation of appointments or posts in favour of any economically weaker sections of citizens other than the classes mentioned in clause (4), in addition to the existing reservation and subject to a maximum of ten per cent of the posts in each category.”.

Who comes under the “Economically Weaker Sections”?

The proposed amendment Bill will define the Economically Weaker Section (EWS) as one having:

• Annual household income below Rs 8 lakh
• Agriculture land below 5 acres
• Residential house below 1000 sqft
• Residential plot below 100 yards in notified municipality
• Residential plot below 200 yards in non-notified municipality area

Reservation in India – The Present and the Future…

• At present, reservations in India account for a total of 49.5%. If the 10% extra reservation for EWS is also taken into account, it would be 59.5%.
• 7.5%, 15%, and 27% quotas are reserved for Scheduled Tribes, Scheduled Castes, and Other Backward Classes respectively.
• If the EWS Quota Bill becomes an Act, only 40.5% of seats will be allocated in educational institutions/jobs based on the merit of candidates. As pointed by Supreme Court, increase in reservations can compromise the merit.

Is Present quota identical to one defining creamy layer among OBCs?

The proposed criteria for adjudging who is “economically weak” is identical to the one applied for defining “creamy layer” among the OBCs who are debarred from quota benefits.

The measure, which was criticised as “excessively liberal” when enforced for defining who constituted the “creamy layer” among the OBCs, will mean that almost the entire population, except the rich who number around just above a crore or so, cutting across communities, becomes eligible for quotas.

Does India need reservation?

• It’s the duty of the government to provide equality of status and opportunity in India.
• Reservation is one of the tools against social oppression and injustice against certain classes. Otherwise known as affirmative action, reservation helps in uplifting backward classes.
• However, reservation is just one of the methods for social upliftment. There are many other methods like providing scholarships, funds, coachings, and other welfare schemes.
• The way reservation is implemented and executed in India is largely governed by vote-bank politics.
• Indian Consitution allowed reservation only for socially and educationally backward classes. However, in India, it became caste-based reservation instead of class-based reservation.
• Initially, the reservation was intended only for SC/ST communities – that too for a period of 10 years (1951-1961). However, it got extended ever since. After the implementation of Mandal Commission report in 1990, the scope of the reservation was widened to include Other Backward Communities (OBCs).
• The benefits of the reservation were successively enjoyed only by a few communities (or families), excluding the truly deserving ones. Even 70 years after independence, the demand for reservation has only increased.
• Now, with the introduction of economic criteria for reservation, in addition to the caste-criteria which already existed, things have become more complicated.

Implications of Constitution 124th (Amendment) Bill, 2019

• This will be the first time that poor non-OBC non-SC/ST individuals will get a chance. And given that Muslims are the poorest (economically weakest), they should obtain preference in the EWS 10 per cent quota.
• general category jobs are open to everyone, including Scheduled Caste (SC), Scheduled Tribe (ST) and OBC individuals. Thus, by removing 10% jobs from the “open” category, it reduces the opportunities for currently reserved groups.
• In era when skill demands are rapidly outpacing supply of candidates in specialised fields, the EWS quota increases the constraints.

Unequals should not be treated equally, but is reservation the only solution?

• There is no doubt that unequals should not be treated equally. However, is the current system of unequal treatment perfect? Is it creating more injustice? Is it the only way out in a welfare-nation? It’s time to introspect.
• Reservation based entirely on economic criteria is not an all-in-one solution, though family income can be one of the parameters. Also, its time to fix a time period for the reservation system – rather than extending it to eternity.
• Denying India, the service of the meritorious candidates, who see them being overtaken by others with lesser academic performance or brilliance, is also a crime and injustice.
• Aren’t there any alternative mechanisms to uplift the marginalised so that everyone gets equal opportunities? How is affirmative action done in other countries?
• Reforms in the reservation system of India is the need of the hour. However, as the subject of reservation revolves around a lot of votes, parties are reluctant to disrupt the existing system.

Government’s view

• Reacting to the passage of the bill in Lok Sabha, Prime Minister Narendra Modi said, it is a landmark moment in the nation’s history and an effective measure that ensures justice for all sections of society.
• Finance minister Arun Jaitley, building the case for the 10 per cent quota, said, “If two individuals are not equal due to birth or for economic reasons, then they cannot be treated equally. Unequals cannot be treated equally,” he said.
• He further contended that the 50% cap on reservations imposed by the Supreme Court was only for caste-based reservations, and the Economically Weaker Section (EWS) reservation won’t be impacted by it.
• Union Social Justice and Empowerment Minister Thaawarchand Gehlot said the similar state laws for EWS quota were quashed by Courts because there was no provision for economic reservation in the Constitution before.  Now, the Law will not be struck down by the Supreme Court if challenged as it has been brought by making required provisions in the Constitution.

Will Supreme Court consider the 124th Constitutional Amendment Bill as valid?

• Except in a few states like Tamil Nadu, the cap of reservation is 50%. This limit is set by the Supreme Court to avoid the vote-bank politics of providing quotas thus compromising the merit. Tamil Nadu has a law which provides for 69% reservations, which has been inserted into the ninth schedule of Constitution to immunize it from judicial review.
• A nine-judge bench decision of the SC in the Indira Sawhney case(1992) had capped the upper limit of reservation at 50%. The Indira Sawhney case had further held that social backwardness cannot be determined only with reference to an economic criterion.
• So the limits imposed by the nine-judge bench in 1992 would be the major litmus test for this bill. If the same standards are upheld by the Supreme Court, the 124th Constitutional Amendment Bill will be declared null and void.
• The Gujarat Government had already brought an ordinance to provide 10% quota for EWS in the forward castes. However, in August 2016, the Gujarat High Court had quashed this ordinance. The High Court, however, observed that the “unreserved category itself is a class” and economic criteria was too fluctuating a basis for providing quota.

Future Implications:

• If the Supreme Court agrees to lift the 50% cap, all States of India can extend the quantum of reservation and “upper castes” will stand to lose in State services.
• If the Supreme Court rejects the idea of breaching the 50% cap, Economically Weaker Section (EWS) quotas can be provided only by eating into the SC, ST and OBC quota pie, which will have social and political implications.
• The move may have some appeal to upper castes in States.

Redesigning Reservation System

• One strategy may be to try and spread the benefits of reservations as widely as possible within the existing framework and ensure that individuals use their reserved category status only once in their lifetime.
• we need to focus on reducing inequalities where they first emerge, within primary schools.

Context

• The Commerce Ministry to carry out a fresh round of consultations with stakeholders to address concerns raised by many on the proposed e-commerce policy.

Background

What is e-commerce?

• Electronic commerce or ecommerce is a term for any type of business, or commercial transaction that involves the transfer of information across the Internet.

Types of e-commerce business model

1. Online Subscriptions: Here the users can choose from subscriptions available on the website and subscribe according to their needs. For Example magazines like Frontline can be subscribed online
2. Exclusive Brand Stores: Here the brands create their own online brand stores. Consumers get the advantage of shopping from their trusted brands online without having to visit the physical stores.
3. Deals Websites: Herewebsites give the consumers various deals available on other websites or stores. For example coupondunia.in etc.
4. Marketplace: This model of e-commerce means providing a platform by an e-commerce entity to act as a facilitator between buyer and seller.

Here Inventory, stock management, logistics etc are not supposed to be actively done by the ecommerce firm. Based on this there are various websites with different models that they follow. Such as

• Business-to-Business (B2B);
• Businessto- Consumer (B2C);
• Business-to-Government (B2G);
• Consumer-to-Consumer (C2C);

1. Inventory Model: Inventory model of e-commerce means an e-commerce activity where inventory of goods and services is owned by e-commerce entity and is sold to the consumers directly. Alibaba of China is following the inventory model.

Reason for the growth of E-commerce in India

1. Falling communication cost, large population subscribed to internet broadband, 3G and 4G.
2. Rise in Smartphone Users
3. Availability of multiple payment options like cash-on-delivery (COD), EMI and free shipping.
4. Multiple Product Options with Cheap Prices
5. Changing consumer behavior: Less time to spend in traveling to places and shopping
6. Foreign Investors are funding ecommerce sector due to strong growth prospects.

Policy guidelines for e-commerce (2016)

• 100% FDI under automatic route is permitted in marketplace model of e-commerce
• FDI is not permitted in Inventory based model of e-commerce
• A single brand retail trading entity operating through brick and mortar stores is permitted to undertake retail trading through e-commerce.
• No platform should have more than 25% of its sales coming from a single seller.

Need for new e-commerce policy

1. Defining e-commerce: There is no commonly accepted definition of digital economy or e-commerce. Further, there is inadequate data on the trade of digital products. Both these shortcomings hinder effective policy making in the country
2. Rapid growth of e commerce: The e-commerce market is expected to reach US$ 64 billion by 2020 and US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Thus there is a need for clearly laid-down rules for electronic commerce in the country.
3. Presence of multiple regulators: E- commerce is currently regulated by multiplicity of government departments such as IT Department, industrial policy, revenue, and RBI. Hence, a national e-commerce policy would consolidate the various norms and regulations to cover all online retailers.
4. To protect the interest of consumer: With the increasing online frauds, there is a need to strengthen the regulatory regime for protecting the consumer in the context of e-commerce
5. To scrutinize Merger and Acquisition:Unregulated Mergers and Acquisitions may “distort competition’.
6. To facilitate cross-border e-commerce: At multilateral forum such as the World Trade Organization (WTO), the government was facing pressure to negotiate rules facilitating cross-border e-commerce.A national e-commerce policy will also enable better negotiations on multilateral issues with the World Trade Organization.
7. To boost MSME: The e-commerce industry been directly impacting the micro, small & medium enterprises (MSME) in India by providing means of financing, technology and training and has a favourable cascading effect on other industries as well.

 

Draft e-commerce policy

• Draft National Electronic Commerce Policy will steer the approach of the government towards e-retailers, digital service providers and anyone else who conducts e-commerce in India.
• The draft recommendations were prepared by several stakeholders, including by the private sector and government officials from departments such as commerce, industry, IT and electronics.

1. Common definition: A common definition of electronic commerce for the purposes of domestic policy-making and international negotiations would be adopted.
2. Single legislation: It proposes a single legislation to address all aspects of digital economy and a single regulator for issues related to FDI implementation and consumer protection. It says legal fragmentation seen across various laws governing the ecommerce sector should be corrected.
3. Data localization: It mandates localization of data in India, consistent with the Srikrishna Committee’s draft data protection bill. The draft also talks about the government having access to data stored in India for national security and public policy objectives.
4. Disclosures of Data: E-commerce entities would be required to disclose their data collection practices to consumers and share terms & conditions in a simplified format.
5. On FDI: The draft policy proposes 49% FDI under the inventory model for Indian-owned and Indian-controlled firms to sell locally-produced goods on their online platforms.
6. Registration of All Ecommerce Portals: All active e-commerce portals in India will have to register with e-Central Consumer Protection Authority (CCPA). CCPA shall act as a nodal agency for intra-government coordination, checking frauds within the industry, formulating regulations and more.
7. Regulations on Discounts: On the matter of discounts, the draft policy suggests a ‘sunset period’ for every discount and offer, beyond which no e-commerce portal can be allowed to provide discounts. Bulk purchase of branded goods such as electronic products, white goods, branded fashion by related party sellers, which lead to price distortions in a market place would be prohibited
8. Centralize registration: It recommends Centralized registration instead of local registration of e commerce companies.
9. Taxation of foreign-owned companies: Use principle of ‘significant economic presence’ as the basis for determining ‘Permanent Establishment’ for tax assessment. This would mean that the geography of an e-commerce platform would be less important than the scale of economic activity it has in India.
10. For MSME: The policy suggests a public-private retail platform only for micro, small and medium enterprises (MSMEs). It allows MSME to follow inventory based models for selling locally produced   goods   through   an   online platform.
11. More Power to The Founders:It seeks to give more control and more power to the founders of the e-commerce business, rather than the investors. As per some analysts, this has been done because most of the biggest e-commerce portals in India are funded by foreign investors.
12. Separate wing in Enforcement Directorate: The draft suggests a separate wing be set up in the Enforcement Directorate to handle grievances related to foreign investment in ecommerce.
13. Merger and Acquisitions:More scrutiny of mergers and acquisitions that may ‘distort competition’. Competition Commission of India will examine entry barriers and anti-competitive practices. It assumes significance in the light of the recent acquisition of Flipkart by US retail major Wal-Mart.

Impact on online retail

• Phasing out of deep discounts will choke the demand and hurt the sales
• There will be a loss of investment from the foreign investors
• Localization of data will add to the cost of already cash-hungry online retailers due to intense competition.

Impact on offline retail

• It will provide a level playing field for the local retailers.
• India’s first clause will give a boost to the sales of the offline retailers.
• Restrictions on the bulk of wholesale procurements will reduce the price distortion in the marketplace which will be beneficial to the offline retailers.

Challenges

• Due to mandatory supervision of Competition Commission of India on Merger and Acquisition and regulation on discounts have led to apprehensions of return of license raj.
• Data localization norms in draft policy hasn’t been taken kindly by international firms as that would increase the cost and also raiseIPR concerns.
• Curb on discounting in online retail may lead to loss of costumer for many established and new firms
• Many State governments have shown their reservation towards Centralized registration of e-commerce as subject of commerce falls under State list.
• The FDI provision restricted to Indian firms may Influence the much the needed FDI in general and e commerce industry in particular.

Way ahead

• The government needs to strike a balance so that the global investor community is not deterred
• The government must consult all stakeholders and critically analyse all the issues before finalizing the e commerce policy
• The government should bring a legislation to regularize e commerce sector on priority basis
• The policy should also regularize various other model of e-commerce like subscription websites, deals websites etc.
• The policy must be able to channelize fast changing digital market

 

 Note4Students

One of the most important topics specially from the Prelims perspective. Each and every minute detail and concept becomes very important for the exam. We have tried our bit to make it as interesting as possible.

The power of Veto refers to the power of the executive to override any act of the legislature. This is a very special privilege. Veto power can of the following types –

1. Absolute Veto – Withholding of assent to the Bill passed by the legislature.
2. Qualified Veto – Which can be overridden by the legislature with a higher majority.
3. Suspensive Veto – Which can be overridden by the legislature with an ordinary majority.
4. Pocket Veto – Taking no action on the Bill passed by the legislature.

Article 111 in India’s Constitution governs the Veto powers of the President. It states that “When a Bill has been passed by the Houses of Parliament, it shall be presented to the President, and the President shall declare

either that he assents to the Bill, or

that he withholds assent therefrom

The subsequent provision moderates this discretion: The President may return the Bill “as soon as possible” to the Houses with a message to reconsider it.

However, if the Houses enact the Bill with or without amendments and present it to the President for assent, “the President shall not withhold assent therefrom”

The following observations can be made –

1. President may return the Bill to the Houses seeking reconsideration. This is some sense is a public statement that the President disagrees with the preferences of the two Houses.
2. Article 111 sets no definite timeline. The President can withhold assent. In case he decides to return the Bill, the provision nudges him or her to do so “as soon as possible”
3. It is clearly stated that if a Bill is returned to the President for the 2nd time, the President “shall not withhold assent therefrom”.

For a Bill to become an Act, the President must affirmatively assent. That naturally raises the possibility of “death” and not just delay by Presidential inaction. Unlike the US President, the Indian President can sit on a Bill indefinitely.

From the above discussion, it can be concluded that the President has Suspensive Veto, Pocket Veto and Absolute Veto(not discretionary). He/she does not have Qualified Veto.

 

The table below highlights the Veto power available vizaviz the types of Bills.

	Suspensive	Pocket	Absolute
Ordinary Bill(OB)	Yes	Yes	Available regardless of the Bill but *not* a discretionary power. Usually exercized in the following cases   a) Private Members’ Bills b) Government Bills when the Cabinet resigns (after the passage of the Bills but before the assent by the President) and the new Cabinet advises the President not to give his assent to such Bills
Money Bill   (Art 110)	No	Yes
Financial   Bills	Yes	Yes
Constitutional Amendment Bill	No	No

It should be noted here that the President has no veto power in respect of a Constitutional Amendment Bill. The 24th Constitutional Amendment Act of 1971 made it obligatory for the President to give his assent to a Constitutional Amendment Bill.

 

Controversies

Sharp disagreements erupted specially on the issue of whether the President could veto legislation passed by the Parliament.

1950 – Rajendra Prasad, India’s first President, wrote to Jawaharlal Nehru, India’s first Prime Minister, questioning elements of the Bihar Zamindari Abolition Bill. He believed the compensation was inadequate for those whose lands effectively stood nationalized. Nehru’s Cabinet reconsidered the Bill and found the provisions to be fair. Nehru threatened to resign and that’s when Rajendra Prasad gave in.  

1951 –  When Nehru sought to reform Hindu family law by legislation, Rajendra Prasad expressed his reservations. Prime Minister wrote to the President arguing that the latter had no “authority to go against the will of Parliament”. Nehru read Article 111 as a “routine” provision; the President was to rubber-stamp his assent on Bills without applying his mind. And he lined up a battery of lawyers to make the same point on his behalf

1987 – Indian Post Office (Amendment) Bill 1986 which among other things gave the executive extensive powers to intercept personal communication. The provisions of the Bill, he felt, violated the right to privacy. He sat on it. On two occasions, he informally suggested certain changes to it.  When nothing came of those efforts, he simply sat on the matter indefinitely. The President killed the Bill by sheer inaction

2006 – This was the first time a Bill was vetoed(suspensive veto) and formally returned. Office of Profit Bill, 2006 was passed by the Parliament. It enacted a self-serving piece of legislation that protected members from disqualification with retrospective effect. President A. P. J. Kalam, returned the Bill. However, the Bill was sent back to President again and was finally approved.  

Summarizing

Suspensive Veto – Officially used once by President APJ Abdul Kalam in the case of the Office of Profit Bill.

Pocket Veto – Used once by President Zail Singh in the case of the Indian Post Office (Amendment) Bill in 1986.

Absolute Veto

Used twice –

1. In 1954, President Dr.Rajendra Prasad in the case of PEPSU Appropriation Bill. The PEPSU appropriation Bill was passed by the Parliament during the President’s rule in the state of PEPSU(Patiala and East Punjab States Union).
2. In 1991, President R. Venkataraman in the case of Salary, Amendments, and Pension of Members of Parliament (Amendment) Bill. This Bill was passed on the last day before the Lok Sabha was dissolved and introduced without seeking prior recommendation from the President of India.

Veto over State Legislation

The President can direct the Governor to reserve certain Bills. Also, the Governor can reserve any Bill for the consideration of the President.  

In 2 scenarios, the Governor has to reserve the Bill for the consideration of the President

1. A200 – If the Bill derogates the High Court and endangers its position
2. A31A, A31C – Law made by State Legislature wrt estates and property acquisition requires assent of the President.

Article 201 of the Constitution talks about the role of the President in State Bills. It clearly states that the President has 3 choices.

1. he assents to the Bill
2. he withholds assets (provided that the Bill is not a Money Bill)
3. may direct the Governor to return the Bill to the House. If returned, the legislature has to consider it within 6 months. No obligation on the President if the Bill reaches him for the second time.

If the Governor reserved a Bill for consideration by the President then President can use any of the above veto power. But in case of a suspensive Veto, if the State legislature is again passed Bill with a simple majority then President is not bound to give assent to Bill. This is different from his powers wrt to a Union Bill where he is bound to give assent.

• Genetically Modified Organisms are the ones in which the genetic material (DNA) has been altered in such a way as to get the required quality.
• The technology is often called ‘gene technology’, or ‘recombinant DNA technology’ or ‘genetic engineering’ and the resulting organism is said to be ‘genetically modified’, ‘genetically engineered’ or ‘transgenic’.

The process of Genetic Engineering:

Advantages of GM crops:

1. Crop Protection:

• The initial objective for developing GM plants was to improve crop protection. GM crops have improved resistance to diseases, pest, insects and herbicides. They also have improved tolerance to cold/heat, drought and salinity.
• Insect resistance is achieved by incorporating into the food plant the gene for toxin production from the bacterium Bacillus thuringiensis (Bt).
• Virus resistance is achieved through the introduction of a gene from certain viruses which cause disease in plants.
• Herbicide tolerance is achieved through the introduction of a gene from a bacterium conveying resistance to some herbicides.

2. Economic benefits:

• GM crops can increase yield and thus income.
• Genetically modified foods have a longer shelf life. This improves how long they last and stay fresh during transportation and storage.

3. Food Security:

• Given the increased growth of global population and increased urbanisation, GM crops offer one of the promising solutions to meet the world’s food security needs. 

 

 

Issues with GM crops:

1. Human Health Risks:

• Potential impact on human health including allergens and transfer of antibiotic resistance markers.

2. Environmental concerns:

• They can reduce species diversity. For example, Insect-resistant plants might harm insects that are not their intended target and thus result in destruction of that particular species.
• GM technology could also allow the transfer of genes from one crop to another, creating “super weeds”, which will be immune to common control methods.
• Viral genes added to crops to confer resistance might be transferred to other viral pathogens, which can lead to new and more virulent virus strains.

3. Economic Concerns:

• Introduction of a GM crop to market is a lengthy and costly process.
• It does not result in high yields as promised. For instance, the highest yields in mustard are from the five countries which do not grow GM mustard — U.K., France, Poland, Germany and Czech Republic — and not from the GM-growing U.S. or Canada.
• Critics claim that patent laws give developers of the GM crops a dangerous degree of control over the food supply. The concern is over domination of world food production by a few companies

4. Ethical Concerns:

• Violation of natural organisms’ intrinsic values by mixing among species
• There have also been objections to consuming animal genes in plants

GM Crops in India

BT Cotton

• The Maharashtra Hybrids Seed Company (Mahyco) jointly with the US seed company Monsanto developed the genetically modified Bt Cotton to tackle the bollworm problem that had devastated cotton crops in the past.
• In 2002, Bt Cotton became the first and only transgenic crop approved by the GEAC for commercial cultivation in six States namely, Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, and Tamil Nadu.

BT Brinjal:

• It was developed by Mahyco (Maharashtra Hybrid Seeds Company) in collaboration with the Dharward University of Agricultural Sciences and the Tamil Nadu Agricultural University.
• The GEAC in 2007, recommended the commercial release of Bt Brinjal. The initiative was blocked in 2010.

HT Mustard:

• Dhara Mustard Hybrid(DMH-11) is an indigenously developed transgenic mustard. It is genetically modified variety of Herbicide Tolerant (HT) mustard. It was created by using “barnase/barstar” technology for genetic modification by adding genes from soil bacterium that makes mustard self-pollinating plant.
• In 2017, the Genetic Engineering Appraisal Committee recommended the commercial approval of the HT Mustard crop.

Legislation:

• Under the Environment (Protection) Act, 1986, the Ministry of Environment and Forests has notified the Rules for the Manufacture, Use, Import, Export and Storage of Hazardous Micro Organisms/ Genetically Engineered Organisms or Cells, 1989, or in short, the Rules, 1989.
• These rules and regulations cover the areas of research as well as large scale applications of the GM crops.
• These rules also define the competent authorities and composition of such authorities for handling of various aspects of the rules.

The Competent Authorities are:

• Recombinant DNA Advisory Committee (RDAC) under the Department of Biotechnology, Ministry of Science and Technology
• Institutional Biosafety Committees (IBSC) 4 under the Department of Biotechnology, Ministry of Science and Technology
• Review Committee on Genetic Manipulation (RCGM) under the Department of Biotechnology
• Genetic Engineering Approval Committee (GEAC) under the Ministry of Environment and Forests. It looks into approval for large scale releases and commercialization of the GMOs
• State Biotechnology Coordination Committee (SBCC)
• District Level Committee (DLC)
• Biotechnology Regulatory Authority of India (BRAI) Bill,2013 has been drafted to set up an independent authority, the Biotechnology Regulatory Authority of India (BRAI), to regulate organisms and products of modern biotechnology.

Mechanism to allow cultivation of GM crops in India:

• Genetic Engineering Approval Committee (GEAC) is apex body under Ministry of Environment, Forests and Climate Change for regulating manufacturing, use, import, export and storage of hazardous microorganisms or genetically engineered organisms (GMOs) and cells in the country.
• GEAC is also responsible for giving technical approval of proposals relating to release of GMOs and products including experimental field trials. However, Environment Minister gives final approval for GMOs.
• The safety aspects of genetically modified crops are assessed by the Institutional Biosafety Committees (IBSCs), Review Committee on Genetic Manipulation (RCGM) and Genetic Engineering Appraisal Committee (GEAC) constituted under Rules 1989 of Environment Protection Act (EPA) – 1986 based on Biosafety Guidelines and the Standard Operating Procedures
• The Government of India follows a policy of case-by-case approval of transgenic crops.
• As per the guidelines framed by the ICMR, safety assessment is designed to identify whether a hazard, nutritional or other safety concern is present

Important Committees and Recommendations:

Task Force under the Chairmanship of Prof. M.S. Swaminathan, 2003

The Task Force recommended the establishment by an Act of Parliament an autonomous, statutory and professionally led National Biotechnology Regulatory Authority.

Parliamentary Standing Committee on Agriculture, in its new report, “Cultivation of Genetically Modified Food Crops — Prospects and Effects made the following major recommendations:

• The government must not allow field trials of GM crops till there is a strong, revamped, multi-disciplinary regulatory system in place.The Committee studied the regulatory system in different countries and found that the one in Norway is the best.
• A thorough probe must be conducted into the permission given for the commercialisation of Bt Brinjal right from the beginning till a moratorium was imposed in 2010.
• The government should examine the research reports and assessment by independent scientists of Bt Brinjal by any agency other than the Genetic Engineering Approval Committee (GEAC), which gave approval on its own assessment, to avoid conflict of interest.
• Re-evaluation of all research findings in Bt cotton seeds in the light of studies that highlighted inexplicable changes in the organs and tissues of Bt-cotton seed-fed lambs.
• Mandatory labelling of products from GM crops.
• Unchecked import of GM products should be stopped
• Organic farming should be encouraged.

High-powered panel on Doubling Farmers’ Income (DFI): It made the following observations:

• Genetic Engineering is ‘powerful’ tool for developing future crop, but for now it should be adopted only for non-food crops.
• For transgenic food crops, questions on its safety must be addressed and settled first.

Leading agriculture scientist M.S. Swaminathan, in a research paper, has described Bt Cottonas a ‘failure’.

The findings were published in paper ‘Modern Technologies for Sustainable Food and Nutrition Security’. It is a review of crop development in India and transgenic crops — particularly Bt cotton, the stalled Bt brinjal as well as DMH-11, a transgenic mustard hybrid.

Key observations made:

• The paper notes that GE (genetically engineered) Bt cotton has failed in India. It has failed as a sustainable agriculture technology and has, therefore, also failed to provide livelihood security for cotton farmers who are mainly resource-poor, small and marginal farmers.
• Besides, the precautionary principle (PP) has been done away with and no science-based and rigorous biosafety protocols and evaluation of GM crops are in place.
• The paper also raises questions on the genetic engineering technology itself on the grounds that it raises the cost of sowing. Also, the insertion of foreign genes (in the plant) could lead to “molecular and cellular events not precisely understood.”

Concerns in India:

1. According to critics, the current safety assessments are inadequate to catch most of the harmful effects from the GM crops. The regulatory regime in India with regard to the GM crops has never been assessed thoroughly with regard to the GM risk assessment in Indian conditions.
2. There is lack of adequate machinery to test the GM crops imported. There is only a Food Lab in Kolkata under the Ministry of Health and which is not well-equipped.
3. Conflict of interest: All the safety tests for regulatory approvals in India are conducted by the same party that applies for commercialisation of GM crops.
4. Concerns over transparency: GEAC’s refusal to publicly release the safety testing data submitted for regulatory approval of BT Brinjal and GM Mustard, until GM opponents filed a Right to Information petition has raised serious questions over transparency.The tendency to operate in secrecy has created a serious distrust on the government and the promoters of GM crops.
5. Organic needs certificate, GM gets away

• One has approach a third party certification agency, and wait for one to three years to obtain an organic certificate.
• Those who cannot afford to pay for the third-party certification, will have to form a group under the Union government’s Participatory Guarantee System of organic certification, which has huge implementation gaps.
• On the contrary, the proposed regulations for genetically modified food are so lax that authorities will have to depend on the self-declaration by the industry.

Way Forward:

1. A major challenge today is to develop low-input, high-output agriculture. This cannot be achieved without technology. However, to assure technology does not undermine human and environmental health, there needs to be extensive research.
2. The Indian government must take decisions on GM technologies on the basis of scientific evidence. It should adopt a participatory approach in order to bring together all stakeholders to develop regulatory protocols. This would ensure trust in the entire process.
3. Any new technology adopted in the farming sector must be in the interest of the farmers without undermining the rights of consumers.
4. The most important job lies on the promoters of GM technology to convince consumers, environmental activists and farmers that among various alternatives available for sustainable food production, GM technology is one of the best option to improve crop yields and address India’s food security.
5. The Food and Agriculture Organization (FAO) has rightly pointed out in 2004, “Science cannot declare any technology completely risk free. Genetically engineered crops can reduce some environmental risks associated with conventional agriculture, but will also introduce new challenges that must be addressed”.

Context

• The Indian Parliament passed the Constitution 124th (Amendment) Bill, 2019 that seeks to provide 10 percent reservation in jobs and educational institutions to economically backward section in the general category

Background

124th Constitution Amendment Bill (2019)

• Constitution 124th Amendment Bill, 2019 provides ten percent reservation to the economically weaker sections (EWS) in the General category. The bill facilitates reservation for EWS in direct recruitments in jobs and admission in higher educational institutions.
• The reservation of EWS of general category will be given without tampering the existing quotas for SC, ST and OBCs people.
• The bill is expected to benefit a huge section of upper castes including Brahmins, Rajputs (Thakurs), Jats, Marathas, Bhumihars, and several trading castes including Kapus and Kammas.

What will the “Economically Weaker Sections Quota bill” amend in the Indian Constitution?

1. Amendment to Article 15 (Reservation in Educational Institutions)

• In article 15 of the Constitution, after clause (5), the following clause shall be inserted, namely:—
  ‘Nothing in this article or sub-clause (g) of clause (1) of article 19 or clause (2) of article 29 shall prevent the State from making,— any special provision for the advancement of any economically weaker sections of citizens other than the classes mentioned in clauses (4) and (5) in so far as such special provisions relate to their admission to educational institutions including private educational institutions, whether aided or unaided by the State, other than the minority educational institutions referred to in clause (1) of article 30, which in the case of reservation would be in addition to the existing reservations and subject to a maximum of ten per cent of the total seats in each category.

1. Amendment to Article 16 (Reservation in Jobs)

• In article 16 of the Constitution, after clause (5), the following clause shall be
  inserted, namely:— “(6) Nothing in this article shall prevent the State from making any provision for the reservation of appointments or posts in favour of any economically weaker sections of citizens other than the classes mentioned in clause (4), in addition to the existing reservation and subject to a maximum of ten per cent of the posts in each category.”.

Who comes under the “Economically Weaker Sections”?

The proposed amendment Bill will define Economically Weaker Section (EWS) as one having:

1. Annual household income below Rs 8 lakh
2. Agriculture land below 5 acres
3. Residential house below 1000 sqft
4. Residential plot below 100 yards in notified municipality
5. Residential plot below 200 yards in non-notified municipality area

Reservation in India – The Present and the Future

• At present, reservations in India account for a total of 49.5%. If the 10% extra reservation for EWS is also taken into account, it would be 59.5%.
• 7.5%, 15%, and 27% quotas are reserved for Scheduled Tribes, Scheduled Castes, and Other Backward Classes respectively.
• If the EWS Quota Bill becomes an Act, only 40.5% of seats will be allocated in educational institutions/jobs based on the merit of candidates. As pointed by Supreme Court, increase in reservations can compromise the merit.

Present quota identical to one defining creamy layer among OBCs?

The proposed criteria for adjudging who is “economically weak” is identical to the one applied for defining “creamy layer” among the OBCs who are debarred from quota benefits.

The measure, which was criticised as “excessively liberal” when enforced for defining who constituted the “creamy layer” among the OBCs, will mean that almost the entire population, except the rich who number around just above a crore or so, cutting across communities, becomes eligible for quotas.

Should India need reservation?

• It’s the duty of the government to provide equality of status and opportunity in India.
• Reservation is one of the tools against social oppression and injustice against certain classes. Otherwise known as affirmative action, reservation helps in uplifting backward classes.
• However, reservation is just one of the methods for social upliftment. There are many other methods like providing scholarships, funds, coachings, and other welfare schemes.
• The way reservation is implemented and executed in India is largely governed by vote-bank politics.
• Indian Consitution allowed reservation only for socially and educationally backward classes. However, in India, it became caste-based reservation instead of class-based reservation.
• Initially, the reservation was intended only for SC/ST communities – that too for a period of 10 years (1951-1961). However, it got extended ever since. After the implementation of Mandal Commission report in 1990, the scope of the reservation was widened to include Other Backward Communities (OBCs).
• The benefits of the reservation were successively enjoyed only by a few communities (or families), excluding the truly deserving ones. Even 70 years after independence, the demand for reservation has only increased.
• Now, with the introduction of economic criteria for reservation, in addition to the caste-criteria which already existed, things have become more complicated.

Unequals should not be treated equally, but is reservation the only solution?

• There is no doubt that unequals should not be treated equally. However, is the current system of unequal treatment perfect? Is it creating more injustice? Is it the only way out in a welfare-nation? It’s time to introspect.
• Reservation based entirely on economic criteria is not an all-in-one solution, though family income can be one of the parameters. Also, its time to fix a time period for the reservation system – rather than extending it to eternity.
• Denying India, the service of the meritorious candidates, who see them being overtaken by others with lesser academic performance or brilliance, is also a crime and injustice.
• Aren’t there any alternative mechanisms to uplift the marginalised so that everyone gets equal opportunities? How is affirmative action done in other countries?
• Reforms in the reservation system of India is the need of the hour. However, as the subject of reservation revolves around a lot of votes, parties are reluctant to disrupt the existing system.

Government’s view

• Reacting to the passage of the bill in Lok Sabha, Prime Minister Narendra Modi said, it is a landmark moment in the nation’s history and an effective measure that ensures justice for all sections of society.
• Finance minister Arun Jaitley, building the case for the 10 percent quota, said, “If two individuals are not equal due to birth or for economic reasons, then they cannot be treated equally. Unequals cannot be treated equally,” he said.
• He further contended that the 50% cap on reservations imposed by the Supreme Court was only for caste-based reservations, and the Economically Weaker Section (EWS) reservation won’t be impacted by it.
• Union Social Justice and Empowerment Minister Thaawarchand Gehlot said the similar state laws for EWS quota were quashed by Courts because there was no provision for economic reservation in the Constitution before.  Now, the Law will not be struck down by the Supreme Court if challenged as it has been brought by making required provisions in the Constitution.

Will Supreme Court consider the 124th Constitutional Amendment Bill as valid?

• Except in a few states like Tamil Nadu, the cap of reservation is 50%. This limit is set by the Supreme Court to avoid the vote-bank politics of providing quotas thus compromising the merit. Tamil Nadu has a law which provides for 69% reservations, which has been inserted into the ninth schedule of Constitution to immunize it from judicial review.
• A nine-judge bench decision of the SC in the Indira Sawhney case(1992) had capped the upper limit of reservation at 50%. The Indira Sawhney case had further held that social backwardness cannot be determined only with reference to an economic criterion.
• So the limits imposed by the nine-judge bench in 1992 would be the major litmus test for this bill. If the same standards are upheld by the Supreme Court, the 124th Constitutional Amendment Bill will be declared null and void.
• The Gujarat Government had already brought an ordinance to provide 10% quota for EWS in the forward castes. However, in August 2016, the Gujarat High Court had quashed this ordinance. The High Court, however, observed that the “unreserved category itself is a class” and economic criteria was too fluctuating a basis for providing quota.

Future Implications:

• If the Supreme Court agrees to lift the 50% cap, all States of India can extend the quantum of reservation and “upper castes” will stand to lose in State services.
• If the Supreme Court rejects the idea of breaching the 50% cap, Economically Weaker Section (EWS) quotas can be provided only by eating into the SC, ST and OBC quota pie, which will have social and political implications.
• The move may have some appeal to upper castes in States.

Note4Students 

Flagship program of the government. Every minute detail is important.  A prelims option can be framed from it.

Transformation of Aspirational District Programme (TADP) initiative aims to remove this heterogeneity through a mass movement to quickly and effectively transform districts which have shown relatively lesser progress in achieving key social outcomes.

The programme focusses on 5 main themes –

Health & Nutrition,

Education,

Agriculture & Water Resources,

Financial Inclusion & Skill Development, and

Basic Infrastructure,

which have a direct bearing on the quality of life and economic productivity of citizens.

Core Principles

At present, 117 districts from across 28 states have been identified.

The three core principles of the programme are –

1. Convergence (of Central & State Schemes)
2. Collaboration (among citizens and functionaries of Central & State Governments including district teams), and
3. Competition among districts. Driven primarily by the States, this initiative focuses on the strengths of each district, and prioritizes the
   attainable outcomes for immediate improvement.

Institutional Arrangement

At Government of India level, the programme is anchored by
NITI Aayog. In addition, individual Ministries have assumed responsibility to drive progress of districts. For each district, a central Prabhari officer of the rank of Additional Secretary/Joint Secretary has been nominated.

A similar setup has been replicated by states.

Core Strategy of the programme may be summarized as follows.

• States as main drivers

• Work on the strength of each district.

• Make development as a mass movement in these districts.

• Identify low hanging fruits and the strength of each district, to act as a catalyst for development.

• Measure progress and rank districts to spur a sense of competition.

• Districts shall aspire to become State’s best to Nation’s best.

Delta Rankings

This ranking is based on an incremental (delta) change in the performance indicators.

81 data points are tracked in realtime.

The rankings are publicly available through the Champions of Change Dashboard, which includes data entered on a real-time basis at the district level. Go through the snapshot below

 

NITI Aayog has entered into partnership with Tata Trusts, and Bill & Melinda Gates Foundations(ID Insight) to assist the districts in enumerating improvement in key performance indicators a through household survey.

Highlights under 2nd Delta Ranking

Virudhunagar district in Tamil Nadu has shown the most improvement overall, followed by Nuapada district in Odisha, Siddarthnagar in Uttar Pradesh, Bihar’s Aurangabad and Koraput in Odisha.
These districts have championed the development narrative in fundamental parameters of social progress.
Nagaland’s Kiphire district, Jharkhand’s Giridih, Chatra in Jharkhand, Hailakandi in Assam, and Pakur in Jharkhand have shown least improvement.

 

From the map below, please note which states have the most number of districts and which states have the least.

 

Note4Students

One of the most important policies announced this year. Cannot be missed at any cost.

Context

• The Union Cabinet has approved the Agriculture Export Policy, 2018.
• The Cabinet has also approved the proposal for the establishment of Monitoring Framework at Centre with Commerce as the nodal Department with representation from various line Ministries/Departments and Agencies and representatives of concerned State Governments, to oversee the implementation of Agriculture Export Policy.
• The Government has come out with a policy to double farmers’ income by 2022.

Overview

• Today, India ranks second worldwide in farm output. The economic contribution of agriculture to India’s GDP is steadily declining with the country’s broad-based economic growth, yet, having nearly 50% of the population dependent on it for livelihood.
• Agriculture, along with fisheries and forestry, is one of the largest contributors to the Gross Domestic Product (GDP). As per the estimates by the Central Statistics Office (CSO), the share of agriculture and allied sectors (including agriculture, livestock, forestry, and fishery) is expected to be 17.3 percent of the Gross Value Added (GVA) during 2016-17 at 2011-12 prices.
• The Department of Agriculture and Cooperation under the Ministry of Agriculture is responsible for the development of the agriculture sector in India. It manages several other bodies, such as the National Dairy Development Board (NDDB), to develop other allied agricultural sectors.
• Horticultural crops occupy 10% of Gross cropped area and producing 160.75 m tones. Total production of fruits is at 49.36 m tones and vegetables are at 93 m tones.
• Animal husbandry output constitutes about 32% of the country’s agricultural output. The contribution of this sector to the total GDP during 2006-07 was 5.26%.
• India is the highest producer of milk and the second highest producer of fruits and vegetables.
• India accounts for 57% of the world’s buffalo population and 14% of cattle population.
• India holds the 6th place with 7% world’s market share in medicinal and aromatic plants.

Objectives

Objectives of the Agriculture Export Policy are as under:

• To double agricultural exports from the present US $ 30⁺ Billion to US $ 60⁺ Billion by 2022 and reach US $ 100 Billion in the next few years thereafter, with a stable trade policy regime.
• To diversify our export basket, destinations and boost high value and value-added agricultural exports including a focus on perishables.
• To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
• To provide an institutional mechanism for pursuing market access, tackling barriers and deal with sanitary and phytosanitary issues.
• To strive to double India’s share in world agri exports by integrating with global value chain at the earliest.
• Enable farmers to get the benefit of export opportunities in the overseas market.

Need

With India moving out of the income bracket of per capita gross national income of less than $1000, it is not allowed by the WTO to give export sops.

• The government has committed to double the farmers’ income by 2022 and promoting agricultural exports will give an impetus to achieving the goal.
• Promoting agricultural export requires integrating Indian farmers and agricultural products with global value chains. This requires a policy direction.
• Increasing agricultural exports would require greater thrust on value-added products, promotion, and branding of the produce of India.
• Improving India’s reliability as a global supplier of farm products is also one of the deliverables of the policy. The Agricultural export policy can give a direction to this.
• There is a need for synergy between Central and State governments, as Agriculture and allied activities are under the state list.
• India’s export of value-added products is very low and there is the huge scope of improvement”. The share of India’s high-value and value-added agriculture produce in its agriculture export basket is less than 15 percent compared to 25 percent in the US and 49 percent in China.

What are the concerns addressed?

Trade –

• India is today a leading global producer of foodgrain, dairy and several horticultural crops.
• But it holds a minuscule 2.2% share in global agri-exports.
• It is stuck at the lowest rung of the value chain, and India’s farm exports are highly reliant on a handful of commodities.
• These include marine products, meat, rice and plantation crops.

Shortfalls –

• Exports even in these items are frequently interrupted by self-imposed and arbitrary trade curbs.
• State-level curbs on movement of produce add to already high costs from fragmented farms and poor logistics.
• High rejection rates on consignments due to poor quality, antibiotic and pesticide residues and other phytosanitary grounds are major concerns.

Farmers –

• Bumper crops continued to trigger a meltdown in food prices.
• Policy interventions such as e-Nam and the repeal of the APMC Acts by States have made scant progress.

Policy –

• Domestic price and production volatility of certain agricultural commodities lead to using the existing policy for short-term goals.
• These include taming inflation, providing price support to farmers and protecting the domestic industry.
• These decisions may serve the immediate purpose of maintaining domestic price equilibrium.
• However, they end up distorting India’s image in international trade as a long-term and reliable supplier.
• It is thus imperative to frame a stable and predictable policy.

Elements of Agriculture Export Policy

The Agriculture Export Policy encompasses Strategic and Operational elements. These are:

Strategic	Operational
Policy measures Infrastructure and logistics support Holistic approach to boost exports Greater involvement of State Governments in agri exports Focus on Clusters Promoting value-added exports Marketing and promotion of “Brand India	Attract private investments into production and processing Establishment of a strong quality regimen Research & Development Miscellaneous

What are the key recommendations?

Infrastructure – The policy stresses on improving the infrastructure, and storage and exit point logistics.

• It suggested a comprehensive need-gap analysis of existing export-oriented infrastructure across the value chain for this.

R&D – The policy emphasized promoting R&D activities for new product development for the upcoming markets.

• Increased focus on R&D, new varieties and state of the art lab for effective accreditation and monitoring are called for.
• This will be part of the efforts towards establishing a strong quality regime.
• Besides, the policy stressed the need to ensure greater interaction between the various research organizations and industry bodies.

Exports – The policy aims to boost high value and value-added agricultural exports, focusing on perishables.

• Improving the institutional mechanism for tackling market access barriers is suggested as a measure.
• Dealing with sanitary and phytosanitary issues are also the priorities.
• Processed agricultural products and all kinds of organic products will not be brought under any kind of export restriction.

APMC – Monopoly of the Agricultural Produce Market Committee (APMC) is a long existing concern.

• It prevents private players from setting up markets and investing in market infrastructure.
• APMC across states have not been able to achieve farmers’ welfare envisaged in these acts.
• The policy hinted at continuing the efforts with state governments to remove perishables from their APMC Acts.
• It also suggested better coordination between central ministries that are now working at cross-purposes.

Mandi – State governments would also be urged to standardize/ rationalize mandi taxes for largely exported agricultural products.

• Simplification or uniformity of mandi/agricultural fee across states will create a transparent supply chain.
• This will empower the farmers, providing wider access to markets and enabling free trade across the country.

Products – It is proposed that the agricultural export policy must focus on the promotion of value-added, indigenous and tribal products.

• Development of organic export zones/organic Food park with an integrated approach is suggested to help promote shipments.

Agency – Global bodies like US FDA and the European Food Safety Authority are empowered to frame, regulate and implement policies related to both agricultural production and trade.

• The draft policy considered working towards bringing in similar agencies in India.

Besides the policy made a case for promoting contract farming as it would help in attracting investments.

• Some of the other notable recommendations include:

1. promotion of region-specific clusters for lucrative crops
2. coordinated branding efforts
3. a shared database for exporters on market intelligence and export rejects
4. quality assurance at the farm
5. wider adoption of land leases

Other Initiatives needed

• ‘More from less’ should be the aim of agriculture because rapid industrialization and climate change have raised the scarcity value of land and water.
• Indian agriculture is the victim of the Green Revolution’s success. It has become cereal-centric, regionally-biased and resource-intensive. A rainbow revolution must follow the green and white revolutions.
• Genetically modified crop technologies have ‘significant net benefits.’ Evolved regulation is needed to allay public fears so they can be deployed.
• Pulses and oilseeds must be supported with procurement and support prices that reflect their social contribution – less water use and enrichment of soil with atmospheric nitrogen.
• Advancements in Seed Technology – New varieties need to be tested and seeds of these varieties should be made available to the farmers for cultivation in the regions in which it is suitable.
• Regulatory measures for quality seed production have to be tightened so as to discourage the sale of spurious seeds to the farmers.
• Subsidies on power must end to curb water wastage. Cheap power makes India a net exporter of water through commodities like cotton, sugar and soybean, while China is a net importer of water through soybean, cotton, meat and grains.
• Agricultural research has the biggest impact on yield and profitability but it is weak in states where agriculture is relatively more important (eastern and northern states, except Punjab and Haryana).
• The private sector must be enticed into pulses research (which it has shunned) by offering a ‘disproportionately large enough award’ to the winner for innovating in desirable traits, but the intellectual property rights must vest with the government. There should be equal treatment of the private, public and citizen sectors in this respect.

Conclusion

The recent initiatives taken by the Government are definitely steps taken in the right direction. The agreements signed between India and Israel further underscore the fact how water management and judicious usage of limited resources is vital for a thriving agricultural sector.

• Recent developments further underscore the fact that India urgently needs to diversify its cropping pattern- this will help conserve moisture and thus help in the judicious use of resources. Efforts described above can further the objective of the Government of doubling farmer’s income by the year 2022.
• Such an effort would involve the collective participation of various stakeholders, including the wider farming community, pressure groups, private sector, banking sector, and both the central and state governments.