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Exam Year: 2020

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    The GST, implemented on 1 July 2017, unified India’s fragmented indirect tax system into a single, destination-based tax, aimed at creating a ‘one nation, one tax’ System.

    Rationale behind the GST (Compensation to States) Act, 2017

    GST subsumed major state taxes (VAT, entry tax, octroi). To prevent short-term revenue loss, the Act assured 14% annual revenue growth for 5 years (2017-22).

    Addressing Loss of Fiscal Autonomy – Compensation ensured states’ fiscal stability during structural shifts.

    Cooperative Federalism- States agreed to adopt GST in exchange for legal assurance of compensation from the Centre.

    Creating Predictability in Budgeting – Guaranteed revenue helped states plan welfare schemes, salaries, and capital projects without fear of instability.

    Compensation Fund Mechanism- A dedicated GST Compensation Cess (on luxury/sin goods like tobacco, coal, automobiles) was created to finance the compensation pool.

    Impact of COVID-19 on the GST Compensation Fund

    According to the 41st GST Council meeting, states projected a for 2020-21. With an estimated , the shortfall in the GST compensation fund was expected to be .

    was due to GST implementation-related revenue gaps, and

    was attributed to the COVID-19-induced economic shock

    The Centre admitted an unprecedented shortfall, stating it could not fully compensate states from the fund.

    Borrowing Controversy

    The Centre asked states to borrow via RBI under two options.

    Many states (Kerala, Punjab, Chhattisgarh) argued that the borrowing burden should lie with the Centre, not states.

    Breakdown of Consensus in GST Council – For the first time since 2017, the Council saw voting instead of consensus. States alleged weakening of cooperative federalism.

    Increased Fiscal Stress on States – Shortfalls forced states to cut capital expenditure, delay welfare payments, and increase market borrowing.

    States demanded extending the compensation period beyond June 2022 due to pandemic losses

    Strengthening the fiscal framework, improving tax buoyancy, and enhancing transparency in compensation mechanisms are essential to restore trust in India’s cooperative federalism.

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    Potential GDP refers to the maximum sustainable output an economy can produce without generating inflationary pressure, when all resources are fully and efficiently employed.

    Determinants of Potential GDP

    Labour Force & Human Capital – Size, skill, and productivity of the workforce.

    Capital Formation – Investment in infrastructure, machinery, and technology.

    Technology & Innovation – R&D and digital transformation driving productivity.

    Institutional Quality – Governance, regulatory efficiency, and property rights.

    Total Factor Productivity (TFP) – Efficiency in using labour and capital together.

    Prevailing Inflation Rate – Persistent inflation distorts real GDP from its potential level.

    Global Conditions – Protectionism, trade restrictions, and geopolitical tensions. Eg- Tariff Wars

    Factors Inhibiting India from Realizing Potential GDP

    Low Female Labour Force Participation – FLFPR only 41.7% (PLFS) against global average of 48%

    Slow Capital Formation – GFCF at ~29.6% of GDP (2024) vs 34% in 2023.

    Skill Mismatch & Education Gaps – Only 4.7% of workforce formally skilled (NSDC).

    Infrastructure Bottlenecks – Logistics cost ~13% of GDP vs 8% in USA

    Weak Productivity Growth – Low TFP and informal sector dominance. (83% informal sector)

    Regulatory Cholesterol – Delays, compliance burden, weak contract enforcement.

    Way Forward

    Enhance Human Capital – Invest in education, healthcare, and skill development

    Accelerate Investment & Infrastructure Growth through faster project execution under PPP.

    Create safe workplaces, flexible jobs, and childcare support to tap women’s economic potential.

    Increase R&D spending to 2.5% of GDP (currently <1% of GDP) for productivity gains.

    To realize its potential GDP and Viksit Bharat 2047, India must shift from factor accumulation to productivity-driven growth

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    Inclusive growth and sustainable development emphasise fair distribution of opportunities, resources, and benefits both within the present generation and across future generations.

    Intra-Generational Equity issues (Equity Within the Present Generation)

    Income and Wealth Inequality – the top 1% of adults in India control almost 40% of net personal wealth. (World Inequality Report)

    Social Exclusion – Caste, gender, disability, and minority identity restrict access to education, jobs, assets. Eg- Glass Ceiling for Women

    Poorer communities face greater vulnerability to pollution, floods, heatwaves, violating equity. Eg- Disaster induced migration

    Regional disparities – Eg- BIMARU States lag behind national averages in health, education and income.

    Low female labour force participation (41% vs 48% global average) limits inclusive access to economic opportunities.

    Inter-Generational Equity issues (Equity Across Future Generations)

    Climate change burden on future generations – Eg- Rising sea levels threatening the survival of low-lying island countries.

    Low social mobility- Eg – India ranks 76th in the Global Social Mobility Index (WEF), indicating persistence of inequality across generations.

    Failing to invest in research, innovation, and human capital reduces competitiveness of future generations. (R&D investment only 0.7% of GDP)

    Fiscal Burden – Unsustainable borrowing today limits fiscal space for future welfare and development spending.

    Way Forward

    Capability Approach (Amartya Sen) – increase Education and health spending to 6% and 2.5% of GDP respectively

    Strengthen progressive taxes, wealth taxes and targeted subsidies to reduce income inequality and expand welfare spending.

    Align national policies with Paris Agreement targets

    Universalise social security, pensions, maternity benefits, and unemployment allowance

    A nexus approach towards sustainability and inclusiveness is needed for ‘Sabka Saath, Sabka Vikas.’

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    As per World Bank, Poverty is a “pronounced deprivation in well-being” which includes low incomes and the inability to acquire basic goods and services necessary for survival with dignity.

    Incidence (H): The proportion of the population who are multidimensionally poor (i.e., deprived in a set share of weighted indicators).

    Intensity (A): The average share of deprivations experienced by the multidimensionally poor.

    MPI value (H × A): Combines incidence and intensity, capturing both how many are poor and how deprived they are beyond the income dimension.

    Why Incidence and Intensity Matter More than Income Alone

    Comprehensive Understanding: Income tells how much money people have, while incidence and intensity show what capabilities they lack.

    Reveals Depth of Deprivation: Two people may have the same income, but one may suffer more due to lack of education or sanitation – intensity captures this depth.

    Targets Policy Better: Helps governments identify which dimensions (health, education, housing) need priority investment.

    Explains Poverty Despite Income Growth: India’s poverty rate has declined (2.35% extreme poverty, World Bank 2024), yet hunger, malnutrition, and illiteracy persist – showing income growth doesn’t equal welfare growth.

    Measures Human Development, Not Just Economics: Aligns with Amartya Sen’s Capability Approach – poverty is deprivation of basic freedoms and opportunities, not just low income.

    Global Multidimensional Poverty Index (MPI) Report 2025

    Global Poverty Statistics – 1.1 billion (18.3%) people in acute multidimensional poverty. Majority are young, rural, and living in low human development countries

    MPI Reduction Trends – Of 88 countries with comparable data, 76 saw a decline in MPI at least once

    Multidimensional Poverty in India

    Poverty fell from 55.1% (2005-2006) to 16.4% (2019-2021)

    About 415 million people exited multidimensional poverty

    Poverty and Climate Interlinkages

    32 million people displaced by climate-related shocks in 2022

    309 million poor people live in regions with three or four overlapping climate hazards

    Without strong climate action, extreme poverty could nearly double by 2050

    MPI Across Income Levels

    64.5% of global poor live in middle-income countries

    55.5% in lower-middle-income nations

    9% in upper-middle-income nations

    Common Global Deprivations

    Clean cooking fuel: 970 million deprived

    Adequate housing: 878 million deprived

    Sanitation: 830 million deprived

    Undernutrition: 635 million deprived

    Children out of school: 487 million deprived

    Limitations of the Global MPI

    Data Gaps: Many countries rely on outdated or incomplete household surveys; MPI data lags actual conditions.

    Uniform Weights and Indicators: Equal weighting (health, education, living standards) may not reflect local priorities or contexts.

    Intra-country Variations: National averages mask disparities between rural-urban areas, genders, and regions.

    No Vulnerability Capture: MPI measures current deprivation but not people at risk of falling back into poverty.

    Way Forward

    Social Determinants Approach: Integration of hunger and poverty with nutrition, sanitation (Swachh Bharat), and clean energy (Ujjwala Yojana).

    Adopt data-driven local interventions under Aspirational Districts Programme to target high-burden regions.

    Adopt Brazil’s Bolsa Família conditional cash transfer scheme

    Poverty is the worst form of violence – Mahatma Gandhi.

    A whole of government and whole of society approach is needed to achieve SDG-1

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    Microfinance aims to provide collateral-free credit and promote self-employment among the poor. In India, Self-Help Groups (SHGs) have emerged as a cornerstone of this model.

    Role of Micro-Finance and SHGs in Asset Creation

    Access to Institutional Credit – Provide collateral-free microcredit. Eg- over 1 Cr SHGs linked to banks, mobilising (NABARD, 2024).

    Productive Investment – Loans used for purchasing livestock, equipment, raw materials, leading to tangible asset formation. Eg- Kudumbashree (Kerala)

    SHGs facilitate small-scale entrepreneurship among rural poor, generating durable assets. Eg- Jeevika (Bihar) created over 1 crore women micro-entrepreneurs.

    Community Assets – Many SHG federations contribute to community-level assets such as storage units, community halls, and water facilities.

    Role of Micro-Finance and SHGs in Income Security

    Diversification of Livelihoods – Credit supports farm and non-farm enterprises, ensuring multiple income streams.

    Savings and Financial Literacy – SHGs promote thrift and savings discipline, building a safety net against economic shocks.

    Access to formal banking lowers interest burden and enhances disposable income.

    Resilience during Crises – During COVID-19, SHGs produced PPEs, masks, and ran community kitchens, ensuring income continuity and local resilience.

    Linkages with Government Schemes – Convergence with PMEGP, MUDRA, and NRLM enhances employment and financial stability.

    Role of Micro-Finance and SHGs in Empowering Women

    Economic Empowerment – SHGs provide women with control over credit, income, and assets. Eg- Lakhpati Didi Initiative (2023) aims to enable 2 crore rural women

    Social Empowerment – Collective decision-making improves confidence, literacy, and awareness on issues like health, sanitation, and domestic violence.

    Political Empowerment – SHGs act as platforms for leadership training, increasing participation in Panchayati Raj Institutions.

    Digital and Financial Inclusion – Initiatives like Bank Sakhi model and digital SHGs under PMGDISHA strengthen women’s agency in the digital economy.

    Social Capital Formation – SHGs nurture solidarity, cooperation, and local governance participation, building community-level empowerment.

    Challenges

    High Interest Rates: MFIs often charge 20-24%, burdening the poor.

    “Missing Middle” finance trap – they outgrow microcredit but cannot access medium-scale loans.

    Regional Imbalance: Concentration of SHGs in southern states (71%); weak in the north and northeast.

    Limited Market Access: Lack of integration with value chains and formal markets.

    Poor Financial Management – Irregular bookkeeping, misappropriation of funds, and lack of audit systems result in low creditworthiness.

    Patriarchal Resistance – In many regions, especially in North India, SHGs are viewed as token collectives rather than serious economic actors.

    Way Forward

    Develop Market Linkages: Integrate SHGs with ONDC, GeM, and e-NAM for fair pricing and wider market access.

    Interest Subvention and Credit Expansion: Strengthen access to MUDRA, PMEGP, and Stand-Up India for low-interest enterprise loans.

    Regional Diversification: Replicate best practices from Kudumbashree and Jeevika in less-developed regions.

    Social Empowerment Convergence: Link SHGs with Poshan Abhiyaan, PMAY-G, and Ujjwala Yojana for holistic welfare outcomes.

    Monitoring and Transparency: Use digital dashboards under DAY-NRLM to track financial performance and social outcomes.

    SHGs can transform India’s rural development landscape from beneficiary-based welfare to participatory empowerment, aligning with the vision of Atmanirbhar Bharat and inclusive growth.

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    The National Education Policy (NEP) 2020, introduced after 34 years, aims to transform the Indian education system to make it equitable, inclusive, and globally competitive.

    NEP 2020 in alignment with SDG-4

    Free and Universal Education

    NEP promotes free primary and secondary education and universal literacy.

    Targets universalisation of education with 100% Gross Enrollment Ratio (GER) by 2030.

    Proposes extension of Right to Education up to 18 years.

    Elimination of Discrimination in Education (SDG 4.5) – Focuses on inclusion of 2 crore out-of-school children into mainstream education.

    Equal Access to Quality Pre-primary Education (SDG 4.2)

    Affordable and Quality Vocational Training for Women (SDG 4.3)

    Qualified and Trained Teachers (SDG 4.c) NEP proposes National Professional Standards for Teachers and regular training.

    Reorientation and Restructuring of the Indian Education System

    School Education Reforms

    5+3+3+4 model aligns learning outcomes with cognitive development stages.

    National Mission on Foundational Literacy and Numeracy (NIPUN Bharat) ensures universal literacy by Grade 3.

    Integration of vocational training from Class 6 bridges the gap between education and employability.

    Higher Education Transformation

    Vision to create a multidisciplinary and research-driven system with HECIs (Higher Education Commission of India) as a single regulator.

    Establishment of National Research Foundation (NRF) to boost innovation.

    Gross Enrollment Ratio (GER) target of 50% by 2035-aligns with SDG-4’s focus on higher education accessibility.

    Technology Integration – Creation of National Educational Technology Forum (NETF) and expansion of DIKSHA platform for digital content.

    Focus on Teachers – Teacher education to become integrated and professionalized (B.Ed. as a 4-year degree).

    Challenges

    Federal Issues as Education is a concurrent subject. Eg- TN opposition to 3 language

    Funding Constraints – NEP targets 6% of GDP expenditure on education, but current allocation is around 2.9% (Union Budget 2024-25).

    Digital Divide – over 40% rural households lack internet access (NFHS-5).

    Limited industry-academia linkage hampers employability outcomes of vocational programs. (only 55% employability)

    Learning poverty – Over 70% of Class 3 students cannot read age-appropriate texts (ASER 2025)

    Teacher Shortage – Over 9 lakh vacancies (MoE, 2025); only 15% of teachers trained under NISHTHA

    Poor Infrastructure in Schools – 35% of schools lack reliable electricity and digital tools (UDISE+, 2021-22).

    Way Forward

    Establish State Curriculum Frameworks (SCFs) aligned with NEP timelines.

    Increase Public Investment: Achieve 6% of GDP target with transparent utilization and outcome monitoring.

    Digital Equity: Expand PM eVIDYA, public Wi-Fi, and digital resource centers in rural schools.

    Public-Private Partnerships: Leverage CSR, EdTech collaborations, and local institutions for inclusive access.

    Teacher Empowerment: Strengthen continuous teacher training and monitoring under PARAKH assessment framework.

    If effectively realized, NEP 2020 can transform India from a literacy-focused to a learning and innovation-oriented society, essential for achieving Viksit Bharat @2047.

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    The QUAD, comprising India, the USA, Japan, and Australia, was established in 2007 to ensure a free, open, and inclusive Indo-Pacific. In the context of the rise of ‘assertive’ China, it has undergone a strategic evolution.

    QUAD Is Not a Formal Military Alliance

    No Mutual Defence Pact – Unlike NATO, QUAD lacks Article 5-type commitment.

    Strategic Autonomy emphasis – India, especially, avoids military alliances.

    Soft-Balancing Mechanism – Focuses on shaping behavior, not confrontation.

    Diverse focus areas – USA and Japan focused on Pacific whereas India’s focus is on IOR

    Official Denial of Military Intent- QUAD is not directed against any country, but for a free and open Indo-Pacific. (PM Modi)

    QUAD’s Shift from Military to Economic-Trade Focus

    Supply Chain Resilience Initiative (SCRI, 2021) to reduce dependence on China-centric supply chains. Eg- Semiconductor collaboration and clean energy supply chains.

    Critical and Emerging Technologies – EG- QUAD working groups on 5G/6G, AI, quantum computing, biotechnology, and cybersecurity seeks to ensure secure and transparent digital trade.

    Quad Critical Minerals Initiative to collaborate on securing and diversifying critical mineral supply chains.

    Partnership for Infrastructure (PFI) promotes high-quality, sustainable, and transparent infrastructure as an alternative to China’s BRI.

    Climate and Clean Energy Cooperation – QUAD Climate Working Group focuses on green shipping, renewable technologies, and disaster resilience.

    The QUAD Vaccine Partnership (2021) aimed to produce and distribute 1 billion COVID-19 vaccines across the Indo-Pacific.

    The Blue Dot Network (BDN),, certifies infrastructure projects that meet high standards of transparency, sustainability, and quality. Seen as a counterweight to China’s Belt and Road Initiative (BRI).

    Free and Open Indo-Pacific (FOIP) led by Japan, to ensure freedom of navigation, connectivity, and economic prosperity.

    Strategic and Military cooperation

    Joint Naval Exercises enhancing maritime interoperability and situational awareness. Eg- Malabar Exercise

    Indo-Pacific Maritime Domain Awareness (IPMDA) initiative (2022) – shares satellite data for maritime security and anti-piracy operations.

    “Quad-at-Sea Ship Observer Mission” for strengthening interoperability and knowledge-sharing to address unlawful maritime activities across the Indo-Pacific.

    Defence Technology Collaboration- Partnerships in defence manufacturing, undersea cables, and maritime surveillance technology.

    As pointed out by S. Jaishankar, “more focused Quad” will “help deliver better” and help realise rules-based international order

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    India’s defence partnerships have evolved in response to shifting geopolitical realities and regional security imperatives.

    Evolution of Defence Partnerships

    Indo-Russian Defence Ties- Based on Cold War-era cooperation, covering nuclear submarines, aircraft (Su-30MKI), and missile systems (S-400, BrahMos).

    Indo-US Defence Ties- Strengthened post-2005 with the India-US Civil Nuclear Agreement, followed by defence foundational agreements – LEMOA (2016), COMCASA (2018), BECA (2020), and iCET (2023) – facilitating interoperability, logistics, and technology sharing.

    Significance of Indo-US Defence Deals over Indo-Russian Defence Deals in the Indo-Pacific Context

    Alignment with the Indo-Pacific Vision –

    shared commitment to a Free, Open, and Rules-Based Indo-Pacific (FOIP).

    Regional Presence- The US is a Pacific power with a direct military presence, unlike Russia, whose focus remains continental (Eurasian).

    The LEMOA (2016) enables reciprocal access to military bases – giving India strategic reach from Diego Garcia to Guam, enhancing maritime stability.

    Strengthening Maritime Security and Deterrence

    Operational Interoperability- Foundational agreements such as COMCASA (2018) and BECA (2020) enhance real-time intelligence and data sharing, critical for tracking Chinese naval movements.

    Joint Naval Exercises- India’s participation in the Quad-led Malabar exercises with the US, Japan, and Australia ensures freedom of navigation in the Indo-Pacific sea lanes.

    Indo-Russian defence engagements, like the BrahMos missile project and S-400 systems are less relevant to Indo-Pacific maritime operations.

    Access to Advanced Defence Technologies

    P-8I maritime patrol aircraft, Predator drones, and C-17 Globemasters that enhance India’s maritime strike capability.

    The iCET (Initiative on Critical and Emerging Technologies) deepens cooperation in AI, space, cybersecurity, and jet engine co-development, advancing India’s defence self-reliance.

    In contrast, Russian defence systems are based on legacy technologies, offering limited cooperation in next-generation warfare domains like cyber, space, and AI.

    Strategic Balance and Regional Stability

    The Indo-US defence partnership enhances collective deterrence in the Indo-Pacific, particularly in the South China Sea and the Indian Ocean Region (IOR).

    Through coordination under the Quad, India and the US promote capacity building, HADR (Humanitarian Assistance and Disaster Relief), and infrastructure resilience.

    Deepening defence ties with the US diversifies India’s procurement base, reducing overdependence on Russian arms.

    Challenges in Strengthening Indo-US Defence Cooperation

    Strategic Autonomy Concerns as the US expects greater policy alignment (e.g., on Ukraine, Iran sanctions).

    Dependence on Russian Systems – Over 60% of India’s defence inventory still originates from Russia (Su-30s, MiGs, T-90s, submarines). Shifts to US-origin platforms face interoperability and logistics challenges.

    Technology Transfer and Cost Issues – US defence exports involve limited technology transfer and high costs compared to Russia’s Make-in-India-friendly models (e.g., BrahMos).

    The CAATSA sanctions threat over India’s S-400 purchase exemplifies friction points that could impact future defence cooperation.

    Bureaucratic Constraints – Differences in procurement procedures, licensing regimes, and IPR frameworks often delay joint projects and technology-sharing initiatives.

    Way Forward

    Establish a “Defence Innovation Corridor” linking Indian and US industries to promote Make in India-Make for the World defence production.

    Enhance Maritime Domain Awareness (MDA) and Naval Interoperability with Quad partners through Malabar, Tiger Triumph Exercises.

    Strengthen the Defence Industrial Base – Facilitate US defence manufacturers to establish production and maintenance hubs in India for regional supply chain security.

    Maintain Strategic Autonomy with issue-based convergence rather than alignment

    Use strategic dialogue platforms (2+2 Ministerial, DTTI, Quad) to address divergences

    The Indo-US defence partnership is vital for ensuring a free, open, and stable Indo-Pacific. It must be driven by trust, technology, and transparency.

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    Doctrine of separation of powers is derived from Montesquieu’s Spirit of Laws (1748) and divides state power into Legislature, Executive, Judiciary to prevent concentration and arbitrariness.

    Judicial legislation, i.e., when courts make laws or frame policies, is generally inconsistent with this doctrine.

    Separation of Powers in India

    Art. 245-246 & 368 – Only legislature can enact/amend laws under

    Article 105, 194 – Executive cannot breach parliamentary privileges

    Art. 122, 212 – Courts cannot inquire into parliamentary/state legislature proceedings ().

    Art. 124(4) Judicial Conduct Immunity

    Judicial Independence – Security of tenure, salaries, and contempt powers.

    Judicial Legislation Antithetical to Separation of Powers

    Encroachment on Legislative Domain undermines Separation of Powers.

    Undermines Democratic Accountability – judges are unelected and not responsible for policy outcomes. Eg- Criticism of Ban on firecrackers (2017)

    Creates judicial supremacy and Judicial governance (Bhikhu Parekh) – Eg- Prakash Singh guidelines on police reforms

    Weakens Public trust in Legislature and Executive – Eg- Coal Allocation Case (2014) – Court cancelled 214 coal blocks, creating policy paralysis in the energy sector.

    Courts lack technical and administrative expertise for framing complex policy guidelines. Eg- Ban on diesel vehicles in NCR (2016)

    Judicial itself has warned against overreach in

    Aravali Golf Club v. Chander Hass (2008)- Court warned against “judicial enthusiasm turning into judicial adventurism.”

    State of Tamil Nadu v. State of Kerala (2014)- Reiterated that courts should not enter the policy-making domain.

    Justification for Filing Large Number of PILs

    Executive Inaction or Policy Vacuum Eg- Vishaka guidelines on workplace sexual harassment.

    Protection of Fundamental RightsEg- Hussainara Khatoon (1979) case Recognized right to speedy trial as FR under Article 21.

    Accountability and TransparencyEg- In Vineet Narain case, SC issued directions to make CBI independent from political interference.

    Access to JusticeLiberal locus standi allows citizens to represent the poor and marginalized.

    Legislative or Administrative DelayEg- Navtej Johar (2018)- Decriminalized homosexuality after years of legislative inaction.

    Constitutional Mandate under Article 141 and 142 to uphold complete justice.

    Rise of Civil Society Activism – NGOs and activists use PILs to expose violations and empower citizens.Eg- M.C. Mehta Cases on environmental protection.

    Judicial Review powers under Article 13, 32, 226 to uphold Constitutional Supremacy

    Speedy Justice – timely intervention in cases affecting public interest. Eg- Olga Tellis (1985)- Protected the right to livelihood.

    Public Trust in Judiciary – Rise in PILs reflects citizens’ confidence in the judiciary as the last resort for justice.

    Issues

    Judicial Overreach- Encroachment into executive and legislative domains. Eg- SC ban on firecrackers was criticized for overreach.

    Weak Enforcement Capacity- Eg- Prakash Singh Police Reforms (2006) – Non-compliance by most states.

    Frivolous or Politically Motivated PILs increase pendency (more than 5Cr cases pending) Eg- Misuse in Election-related PILs delaying legitimate processes.

    Lack of Judicial Accountability- Eg- In-House Inquiry (Justice Ramaswamy case) exposed inadequacies in judicial discipline.

    Opaque Collegium System- criticised for lack of transparency and nepotism. Eg- uncle judge syndrome (law commission)

    Inconsistency and Selective Intervention- Uneven judicial response to similar issues affects credibility. Eg- Contrasting stances in Bail cases.

    Frequent judicial intrusion weakens separation of powers.

    Way Forward

    Institutional Restraint- Judiciary must uphold separation of powers

    Enforce strict scrutiny of PILs to prevent misuse for personal, political, or publicity motives.

    Develop a judgment-monitoring mechanism to ensure effective execution of court orders

    Promote constitutional literacy and encourage responsible use of judicial remedies by citizens.

    Dedicated PIL Cells in High Courts

    PILs represent participatory constitutionalism, ensuring that justice remains accessible, accountable, and rights-oriented.

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    73rd and 74th CAA are the embodiment of grass-root democracy and democratic decentralization in India. They are inspired by Gandhiji’s concept of “Oceanic Circles of Power” and “Swaraj”. However, they have remained Half Baked Cake (Mani Shankar Iyer Committee).

    Issues in the Formative Phase of Local Governance (3Fs)

    Functions-

    Incomplete devolution of 11th & 12th Schedule subjects

    Limited administrative authority

    Functionaries-

    Lack of training & capacity

    Bureaucratic dominance over elected reps

    Funds-

    High fiscal dependence on states/centre

    Conditional and tied grants

    Critical Challenges to Functionality of Local Institutions

    Political Challenges

    Delayed Elections- Eg- Maharashtra’s 27 Municipal Corporations functioning under administrators since 2022.

    Weak Gram Sabhas- Low participation, elite domination, and token meetings.

    With rural population falling from 75% (1990) to about 60%, national development priorities have moved toward urban governance and municipal reforms.

    Functional and Planning Challenges

    District and Metropolitan Planning Committees are largely non-functional in most states.

    Poor digital capacity- Limited use of e-Gram Swaraj and GIS-based planning.

    Administrative Challenges

    Shortage of Functionaries- Severe staff vacancies-only 0.67 secretaries per Gram Panchayat (falling to 0.33 in Uttar Pradesh).

    Parastatal Dominance reduces the role of elected bodies. Eg- Delhi Jal Board

    Accountability issues- Weak social audit mechanisms and poor grievance redressal.

    Financial Challenges

    Declining Fiscal Autonomy- Local bodies generate <1% of GDP as own-source revenue (RBI, 2022).

    Post-GST Revenue Loss- Subsumption of octroi, market, and entertainment taxes.

    Irregular constitution and poor implementation of SFC recommendations.

    Social and Governance Challenges

    Elite Capture- Local elites dominate decision-making, sidelining marginalized voices.

    Despite reservation, proxy representation (Sarpanch Pati) reduces women’s leadership effectiveness.

    Way Forward

    Empower through Performance Grants linked to service outcomes (as per 15th Finance Commission).

    Regular Capacity Building via State Institutes of Rural/Urban Development.

    Digitization of Panchayats (e-GramSwaraj) for transparency and efficiency.

    Operationalize DPCs/MPCs for integrated local planning.

    Adopting Best Practices – Eg- Kerala’s People’s Plan Campaign grants local bodies control over 40% of the state’s plan budget.

    Local bodies are the cornerstones of participatory democracy and good governance. Their functional capacity and autonomy are essential for the constitutional vision of decentralization.

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