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GS Paper: GS2

  • [16th July 2024] The Hindu Op-ed: ‘Big brother’ to ‘Brother’, a Nepal-India reset 

    [16th July 2024] The Hindu Op-ed: ‘Big brother’ to ‘Brother’, a Nepal-India reset 

    PYQ Relevance:

    Mains: 

    Q) ‘The long-sustained image of India as a leader of the oppressed and marginalised nations has disappeared on account of its new found role in the emerging global order.’ Elaborate.  (UPSC IAS/2019)

    Prelims:
    Consider the following statements:  (UPSC IAS/2020)
    1) The value of Indo-Sri Lanka trade has consistently increased in the last decade.
    2) “Textile and textile articles” constitute an important item of trade between India and Bangladesh.
    3) In the last five years, Nepal has been the largest trading partner of India in South Asia.Which of the statements given above is/are correct?
    (a) 1 and 2 only
    (b) 2 only
    (c) 2 only
    (d) 3 only

    Note4Students: 

    Prelims: India-Nepal Bilateral Ties;

    Mains:  Neighbourhood First Policy; Panchasheel Principles;

    Mentor comment: India and Nepal share deep geographical, civilizational, historical, economic and cultural ties. They have an open border and close people-to-people connections. The 1950 India-Nepal Treaty of Peace and Friendship forms the bedrock of their special relationship, granting citizens of both countries equal economic and educational opportunities. India is Nepal’s largest trade partner and source of foreign investment. The two countries have extensive cooperation in areas like defense, disaster management, infrastructure development, water resources, and education. During recent years, the Indian government has been observing some strains and gaps in this relationship, which needs urgent attention seeing the regional geopolitical situations.

    Let’s learn!

    __

    Why in the news? 

    India-Nepal relations have involved a significant decline in bilateral ties since 2015, which has now presented an opportunity for improvement.

    Key events and issues that contributed to the strain include:

    • New Constitution in Nepal: In 2015, Nepal’s Constituent Assembly adopted a new constitution, which India had wanted to be reworked. Despite promises made during visits to New Delhi, the draft was promulgated unamended, leading to tensions.
    • Economic Blockade: India imposed an economic blockade on Nepal, which lasted nearly six months. This blockade was seen as a response to the new constitution and was widely criticized for its impact on Nepal’s economy and relations with India.
    • Increased Chinese Influence: Nepal’s PM Khadga Prasad Oli reacted to the blockade by signing 10 agreements with China, covering areas such as trade, transit, power, and transport. This move further strained the India-Nepal relationship.
    • Political and Diplomatic Tensions: The Indian government became more involved in Nepali governance and politics, leading to accusations of interference.
    The RSS and the BJP were also accused of attempting to influence Nepal’s politics and culture to align with India’s image.
    • Border Disputes: The publication of an updated political map by India in October 2019, which included the disputed Limpiyadhura-Kalapani triangle, led Nepal to amend its constitution to include the same region on its map. This further exacerbated the border disputes between the two countries.

    The present context of Power and Prowess between both countries:

    • Conjecture in Nepal: There is speculation in Nepal about what Narendra Modi’s third term as Prime Minister means, given the legacy of the blockade, Hindutva activism, economic stifling, and geopolitical coercion.
    • Indian Exceptionalism: India’s long history of interfering in Nepal’s politics and governance goes against the principle of non-interference, as seen in the Panchsheel doctrine.
      • India’s overbearing attitude towards Nepal seems to be based on power rather than prowess (skill or expertise), which could lead to a more stable and economically energized Nepal, benefiting India’s National Security and Economy.
    • Legacy of India’s existing Policies: Modi’s foreign policy and national security teams remain unchanged, leading to questions about whether he will become more moderate or aggressive to compensate for the BJP’s domestic slowdown.
      • Modi’s “Neighbourhood First“ initiative has been unsuccessful, and he may need to correct his policies on Nepal as the closest neighbor.
      • Nepal is not just a basket-case neighbor but the seventh largest remittance-sending country to India, helping support livelihoods in India’s poorest regions.

    Nepalian Viewpoint:

    • Eroded Ability to Engage Equally
      • Nepal’s political, civil society, bureaucratic, and security institutions have lost the ability to engage with their Indian counterparts as equals. This is due to the ongoing political turmoil in Nepal.
      • Nepal’s political leadership has included both weak and subservient figures. The worst example was during the prime ministership of Pushpa Kamal Dahal (‘Prachanda’), the Maoist leader.
    • Dahal’s Subservience to India
      • During his 2023 visit to India, Nepali PM Pushpa Kamal Dahal avoided raising issues that could have upset Modi. He failed to discuss pending bilateral matters like air routes, the Limpiyadhura-Kalapani dispute, and the Eminent Persons’ Group (EPG) report.
      • To please the RSS, Dahal and his team wore saffron robes at a temple in Madhya Pradesh.
      • Dahal signed a power trade deal that let India refuse imports from Nepal’s Chinese-backed hydropower plants and allowed the Indian embassy to distribute grants in Nepal.

    Considering the South Asian Region and India’s Peaceful Existence:

    • Nepal’s Cordiality towards India: Presently, New Delhi is far from considering Nepal as the future connectivity gateway to the Chinese mainland via railways and roadways breaching the Himalayan rampart.
      • A continuing ‘Himalayan paranoia’, with its origins in the 1962 debacle with China, fuels geo-strategic insecurity in New Delhi think-tanks.
    • India’s Missed Opportunities: Indian economists fail to note the enormous savings in Military expenditure represented by Nepal’s presence as a ‘benign buffer’ along the central stretch of the Himalaya, especially after the concerns over the Indian exchequer’s inability to bear military costs and pensions (Agniveer Scheme).
      • The open Nepal-India border is the prototype for a future South Asia at peace, but New Delhi analysts constantly harp on the insecurity it represents for India.

    Nepal’s Suffering and India’s Misconceptions

    • The Maoists used shelters across the unregulated border during their decade-long insurgency against the Nepali state.
    • Every summer, the Indian media claims Nepal “releases” monsoon waters into the Ganga plain, but Nepal has no significant storage dams, and the Gandaki and Kosi barrages are controlled by India.
    • ‘Nepal studies’ is not an academic discipline in India, which contributes to Indian citizens viewing Nepal as poor, ungrateful, and even malevolent.

    Conclusion: Frustrated Nepalis want India to treat them as an equal partner, not a “big brother”. India’s policymakers should accept that Nepal is a separate country from India. Nepal should try to clear up misconceptions about itself and suggest ways to improve relations.

  • China’s Communist Party begins ‘Third Plenum’ with focus on slowing economy       

    Why in the news? 

    China’s Communist Party commenced and formulated a strategy for achieving self-reliant economic growth amidst heightened National security concerns and restrictions on American technology access.

    What are the plenums of the Chinese Communist Party?

    The Chinese Communist Party holds a major congress twice a decade, where members of the Central Committee are elected. In between the party congresses, the Central Committee holds seven plenums attended by all its current members.

    The plenums are numbered from 1st to 7th, with each focusing on different aspects:

    • 1st, 2nd, and 7th plenums typically focus on power transitions between Central Committees.
    • 4th and 6th plenums generally center on party ideology.
    • 3rd plenums have historically focused on long-term economic reforms.
    • 5th plenums are associated with deliberations for the country’s five-year development plans.

    What are the major decisions taken at these meetings?   

    • Chinese govt is planning to take measures to restore and expand domestic consumption, focusing on sectors like automobiles, real estate, and services.
    • Reforms are also planned to transform the mechanisms of economic development by making the domestic market and technological innovation the main drivers of growth and emphasis on advancing the “New Development Pattern“ adopted in the 14th Five-Year Plan (2021-2025)
    • Provisions that provided relaxation of restrictions on home purchases and funding curbs on property developers in some cities are incorporated to boost the struggling real estate market.
    • Focus on advancing science and technology sectors like Artificial Intelligence, Green Energy and Electric Vehicles under the “New Quality productive Forces” initiative

    What are the expected implications shortly for regional trade and politics?

    • Trade and Economic Relations: Policies discussed at plenums can impact China’s trade strategies on economic reforms, market regulations, and industrial policies could influence trade volumes, tariffs, and investment flows.
      • Changes in China’s economic policies could include shifts in investment patterns, and infrastructure projects linked to China’s Belt and Road Initiative.
    • Security Dynamics: Discussions on National security policies and Military strategies can impact regional security dynamics, especially India’s Arunachal Pradesh region influencing alliances, defense postures, and regional stability.

    Conclusion: The Indian Government needs to watch its ‘Neighbourhood First’ Policy very effectively keeping its stance assertive rather than passive this time.

    Mains PYQ: 

    Q China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC IAS/2017)

  • SC to look into the use of ‘Money Bills’ to pass laws   

    Why in the News? 

    CJI D.Y. Chandrachud has accepted the plea to list petitions challenging the passage of contentious legislation in Parliament as Money Bills.

    • This has given rise to the expectation that the matter could be heard and decided before Chandrachud demits office in November this year.

    Presently, the three key issues are referred to the 7-judge bench in the Supreme Court:

    • Amendments made post-2015, like the Prevention of Money Laundering Act (PMLA) through Money Bills, giving the Enforcement Directorate wide powers, were valid or not.
    • Whether the passage of the Finance Act of 2017 as a Money Bill to alter appointments to 19 key judicial tribunals was valid or not
    • In the Aadhaar case, the Supreme Court had in 2018 upheld the Aadhaar Act as a valid Money Bill.
      • However, in 2021, Justice D.Y. Chandrachud (who was then a part of the bench) had dissented, saying the larger questions on Money Bills should be decided first before reviewing the Aadhaar judgment.
    • Now, the current Chief Justice D.Y. Chandrachud has agreed to list the petitions challenging the use of the Money Bill route by the Centre to pass contentious amendments, indicating he will constitute a 7-judge Constitution Bench to hear this matter.

    What is a Money Bill?

    • A Money Bill is a specific type of financial legislation that exclusively deals with matters related to taxes, government revenues, or expenditures.
      • It is defined under Article 110 of the Indian Constitution.
    • Every Money Bill is a Finance Bill but every Financial Bill is not a Money Bill: A Financial Bill can cover a broader range of financial issues, whereas a Money Bill is specifically limited to the matters mentioned in Article 110 of the Constitution. Therefore, while every Money Bill is a Financial Bill, not every Financial Bill is a Money Bill.

    Key provisions of the Money Bill: 

    • Article 110(1)(a): Imposition, abolition, remission, alteration, or regulation of any tax
    • Article 110(1)(b): The regulation of borrowing by the government or giving of any guarantee by the government or the amendment of the law for any financial obligations undertaken by the government
    • Article 110(1)(c): Custody of the Consolidated Fund or the Contingency Fund of India, the payment of money into or the withdrawal of money from any such Fund. 
    • Article 110(1)(d): Appropriation of money out of the Consolidated Fund of India
    • Article 110(1)(e): Declaration of any expenditure to be expenditure charged on the Consolidated Fund of India or the increase of the amount of any such expenditure
    • Article 110(1)(f): Receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State
    • Article 110(1)(g): Any matter incidental to any of the matters specified in sub-clauses (a) to (f).

    What are the present challenges associated with the Parliament?

    • Circumvention of the Rajya Sabha:  The government is accused of misusing the Money Bill provision to evade scrutiny of the Bill by the Rajya Sabha where it was numerically weaker as compared to the Lok Sabha where it enjoyed pre-eminence.
    • Contentious Amendments passed as the Money Bill: Aadhaar Act, 2016; amendments to the Prevention of Money Laundering Act, 2002; amendments to the Foreign Contributions Regulations Act, 2010; Finance Act, 2017 which brought about changes in the mode of appointment of judicial tribunals; electoral bonds scheme brought through Finance Act, 2017.
      • For example, the Finance Act of 2017, passed as a Money Bill, altered the appointment processes for judicial tribunals, which was seen as an attempt to extend executive control over these institutions.
      • The Supreme Court has been involved in multiple such cases questioning the classification of certain bills as Money Bills. For instance, the Rojer Mathew case and the Aadhaar case (K. Puttaswamy case)
    • Finality of the Speaker’s Decision: The Lok Sabha Speaker’s decision to certify a bill as a Money Bill has been contested. The judiciary has debated whether this decision is final or subject to judicial review.

    Way forward: 

    • Need for strengthening Judicial Oversight: Establish clear guidelines and criteria for the classification of bills as Money Bills, ensuring they strictly adhere to the provisions outlined in Article 110 of the Constitution.
    • Requires the Reinforcement of Legislative Procedures: Enhance the role of the Rajya Sabha in the legislative process by ensuring that all significant amendments, especially those affecting governance structures or individual rights, undergo thorough scrutiny in both houses of Parliament.

    Mains PYQ: 

    Q The Indian Constitution has provisions for holding joint session of the two houses of the Parliament. Enumerate the occasions when this would normally happen and also the occasions when it cannot, with reasons thereof. (UPSC IAS/2017)

  • Donald Trump shot  

    Why in the News? 

    During a campaign rally in Butler, Pennsylvania, Donald Trump was the target of an apparent assassination attempt.

    • The suspected gunman, identified as 20-year-old Thomas Matthew Crooks, fired up to eight shots from an AR-15-style rifle before being killed by a Secret Service sharpshooter.

    What is the U.S. Secret Service?

    • The U.S. Secret Service is a federal law enforcement agency under the Department of Homeland Security. It was originally established in 1865 to combat counterfeiting of U.S. currency.
    • After the assassination of President William McKinley in 1901, the Secret Service was given the additional responsibility of protecting the President.

     

    About the Protective Mission:

    • The Secret Service is tasked with protecting the President, Vice President, President-elect, Vice President-elect, and their immediate families.
    • It also protects former Presidents and their spouses (unless remarried), as well as major presidential and vice presidential candidates within 120 days of a general election.
    • The Secret Service provides physical security for the White House, the Vice President’s residence, and foreign diplomatic missions in Washington D.C.
    • It secures major events designated as National Special Security Events, like the State of the Union address and presidential inaugurations.

    What is the difference between SPG (Special Protection Group) and the US Secret Service? 

    Dimensions India’s SPG  US Secret Service
    Mandate and Origins The SPG was formed in 1988 to provide proximate security to the Prime Minister of India The U.S. Secret Service was established in 1865 to combat currency counterfeiting.
    Scope of Protection The SPG is mandated to provide security only to the serving Prime Minister and their immediate family. The U.S. Secret Service protects the President, Vice President, their families, presidential/vice-presidential candidates, and former Presidents and their spouses for life.
    Tenure and Resignation SPG personnel have a fixed 6-year tenure and are not allowed to resign during their deputation. U.S. Secret Service agents can resign freely and may be assigned to protective details for 3-5 years before being transferred.
    Coordination with Foreign Agencies When the Indian PM visits the U.S., the SPG takes a backseat while the U.S. Secret Service takes over primary security responsibilities. The U.S. Secret Service coordinates with foreign agencies to protect visiting heads of state, including the Indian PM.
    Operational Differences The SPG has an unblemished record, while the U.S. Secret Service has lost one President (John F. Kennedy) to assassination. SPG personnel are drawn from various paramilitary forces, while the Secret Service has its own dedicated agents.

     

    Conclusion: While both the SPG and the U.S. Secret Service are elite protective agencies with distinct mandates, origins, and operational structures, they each play critical roles in safeguarding their respective leaders.

    Mains PYQ: 

    Q  Indian government has recently strengthed the anti-terrorism laws by amending the Unlawful Activities (Prevention) Act, (UAPA), 1967 and the NIA Act. Analyze the changes in the context of the prevailing security environment while discussing the scope and reasons for opposing the UAPA by human rights organisations. (UPSC IAS/2019)

  • On the Jurisdiction of the CBI         

    Why in the News? 

    The Supreme Court upheld the West Bengal government’s suit, which accuses the Union government of “Constitutional overreach” by using the Central Bureau of Investigation (CBI) to register and investigate cases in the state, despite the state’s withdrawal of general consent on November 16, 2018.

    Background

    • In November 2018, the West Bengal government withdrew its “general consent” that allowed the CBI to conduct investigations within the state.
    • However, the CBI continued to register FIRs and conduct investigations in West Bengal, leading the state government to file an original suit in the Supreme Court under Article 131 of the Constitution.
    • The suit accused the Union government of “constitutional overreach” by allowing the CBI to operate in West Bengal despite the withdrawal of general consent.

    Key highlights of the verdict: 

    • Solicitor-General Tushar Mehta argued the CBI’s independence from the Union government, but the Supreme Court pointed to the DSPE Act’s provisions.
    • It highlighted the Act’s requirement for Central government control over CBI’s establishment and administration, except for cases under the Prevention of Corruption Act, which the CVC oversees.

    Is the CBI an Independent Agency or Under Union Government Control?

    • The Supreme Court ruled that the Central Bureau of Investigation (CBI) is not entirely independent. 
      • The CBI is constituted, administered, and has its powers extended under the Delhi Special Police Establishment (DSPE) Act, 1946.
    • The central government exercises superintendence over the CBI, particularly for offenses other than those under the Prevention of Corruption Act, where the Central Vigilance Commission has superintendence.
      • Therefore, the Union government is vitally concerned with the CBI’s functions and operations.

    Does the CBI Need the State’s Permission to Carry Out Investigations in Its Territory?

    • The CBI derives its powers from the DSPE Act, of 1946.
      • According to Section 6 of this Act, the CBI requires the state government’s consent to extend its investigation beyond the Union Territories.
    • The Supreme Court has ruled that although the CBI is under the administrative control and superintendence of the Union government, this does not negate the requirement of state consent for investigations as per the DSPE Act.
    • There are two types of consent – General consent and Specific consent.
      • When a state gives general consent, the CBI does not need to seek permission for every case.
      • However, if the general consent is withdrawn, the CBI needs to seek specific case-by-case consent from the state.
    • Several opposition-ruled states have withdrawn their general consent for CBI investigations, which has hampered the CBI’s ability to freely investigate cases of corruption involving central government employees in those states.
      • The states that have withdrawn are- Mizoram, West Bengal, Andhra Pradesh, Chhattisgarh, and then states of Punjab, Maharashtra, Rajasthan, Kerala, and Jharkhand (2020).
      • Telangana, Tamil Nadu, and Meghalaya withdrew general consent in 2022.
    • However, the withdrawal of general consent does not affect pending CBI investigations or cases where a court has ordered a CBI probe. The CBI can also approach a local court to obtain a search warrant to conduct investigations in states that have withdrawn consent.

    Note: In total, 10 states have withdrawn general consent to the CBI as of 2022. This has significantly limited the CBI’s ability to freely investigate cases in these states without seeking prior permission.

    Way Forward: 

    • Strengthening Federal Cooperation: Establish a clear institutional framework that promotes cooperation and coordination between the central and state governments regarding CBI investigations.
    • Legal and Administrative Reforms: Consider amending the DSPE Act to provide more clarity on the roles and powers of the CBI and the requirements for state consent.

    Jurisdictional Overview and Federal Character:

    The CBI operates within the context of India’s federal structure, which grants states certain powers and autonomy. The need for state consent limits the CBI’s jurisdiction, as it cannot conduct investigations in states without their general consent.

    Powers and Jurisdiction of CBI

    • Offenses against Central Government Employees: The CBI has jurisdiction to investigate crimes committed against employees of the central government, such as bribery, corruption, or misconduct cases involving central government officials.
    • Interstate and International Cases: The CBI can investigate cases that have inter-state or international ramifications, including organized crime, terrorism, human trafficking, money laundering, and other offenses that require a nationwide or global perspective.
    • Specific Offences Listed in the Delhi Special Police Establishment Act: The CBI can investigate offenses specified in the Delhi Special Police Establishment Act, including offences under the Prevention of Corruption Act, crimes related to the violation of certain central laws, and cases referred to the CBI by the courts or the central government.

    Mains PYQ: 

    Q The jurisdiction of the Central Bureau of Investigation (CBI) regarding lodging an FIR and conducting probe within a particular State is being questioned by various States. However, the power of the States to withhold consent to the CBI is not absolute. Explain with special reference to the federal character of India. (UPSC IAS/2021)

  • The SC ruling on the portrayal of disability in films 

    Why in the News?

    On July 8, the Supreme Court issued guidelines against stereotyping and discriminating persons with disabilities in visual media, prompted by a plea to ban Aaankh Micholi.

    Background:

    • The Supreme Court’s guidelines came in response to a plea filed by activist Nipun Malhotra challenging the alleged insensitive portrayal of differently-abled individuals in the Film ‘Aaankh Micholi’.
    • The petitioner argued that the film contained derogatory references and stereotyping of persons with disabilities.

    Key Highlights of the Supreme Court Ruling:

    • Avoiding Derogatory Language: The court asked creators to avoid words like “cripple”, “spastic”, “afflicted”, “suffering”, and “victim” as they contribute to negative self-image and perpetuate discriminatory attitudes.
    • Accurate Representation: The court said stereotyping differently-abled persons in visual media and films must end, and creators should provide an accurate representation of disabilities rather than mocking or mythifying them.
    • Involvement of Persons with Disabilities: The court asked creators to practice the principle of “nothing about us, without us” and involve persons with disabilities in the creation and assessment of visual media content.
    • Training and Collaboration: The court emphasized the need for training programs for writers, directors, producers, and actors to sensitize them on the impact of portrayals on public perceptions.

    What are the laws which grant disability rights?   

    • Rights of Persons with Disabilities Act (RPwD Act), 2016: This is the primary legislation that comprehensively addresses the rights and entitlements of persons with disabilities in India. It replaced the earlier Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, of 1995.
    • The National Trust Act, 1999: It provides legal support to persons with autism, cerebral palsy, mental retardation, and multiple disabilities. It focuses on enabling guardianship and providing support to those who may not have guardians.
    • Rehabilitation Council of India Act, 1992: Regulates the training of rehabilitation professionals and promotes research in rehabilitation and special education.
    • Mental Healthcare Act, 2017: While primarily focusing on mental health issues, this Act also includes provisions related to the rights and treatment of persons with mental disabilities.

    Are the laws governing the ‘Rights of Differently-abled’ persons being implemented properly?  

    • Implementation Gaps: There are significant gaps between the provisions laid out in laws like the Rights of Persons with Disabilities (RPwD) Act, 2016, and their actual implementation on the ground. Many disabled persons continue to face barriers to accessing their entitlements and rights.
    • Awareness and Sensitization: There is a lack of awareness among the general public, as well as within government bodies and institutions, about the rights and needs of persons with disabilities.
    • Infrastructure and Accessibility: Despite legal mandates for accessibility in public places, transportation, and buildings, implementation remains uneven.
    • Employment Opportunities: While laws mandate employment quotas for persons with disabilities in government and private sectors, these quotas are often not met.

    What is the way forward?

    • Enhanced Monitoring and Accountability: Implement regular audits and monitoring mechanisms to ensure compliance with disability rights laws at all levels of governance and across sectors.
    • Need to Increase Awareness and Sensitization: Launch nationwide awareness campaigns targeting both the general public and stakeholders within government and private sectors to promote understanding of disability rights.

    Mains PYQ: 

    Q The Rights of Persons with Disabilities Act, 2016 remains only a legal document without intense sensitisation of government functionaries and citizens regarding disability. Comment. (UPSC IAS/2022)

  • The Yuan Challenge: How India-Russia trade gap may threaten rupee internationalization efforts    

    Why in the News? 

    New Delhi aims to boost trade with Moscow to $100 billion by 2030, but India faces a $57 billion trade deficit due to strong oil imports from Russia.

    Background

    • India’s trade with Russia has been skewed since the onset of the Ukraine war in 2022. Russia has become India’s top oil supplier, while Indian exports to Russia have struggled, resulting in a large trade deficit.
    • The trade deficit in the bilateral trade stood at $57 billion in FY24, with a total trade value of $66 billion. This deficit is primarily driven by India’s significant oil imports from Russia.

    Why is the widening trade gap with Russia benefiting the Yuan?

      • Increase in Balanced Trade with China: Unlike India, China has been able to maintain a more balanced trade relationship with Russia since the Ukraine war began in 2022.
        • China’s exports to Russia have surged, with shipments increasing by 47% year-on-year to $111 billion in 2023.
        • 95% of trade between China and Russia is conducted in domestic currencies, making the yuan the most popular currency in the Russian stock market.
      • Increase in volatility of Rubble and Rupee:  Unlike the yuan, both the Indian rupee and Russian ruble have experienced considerable volatility, complicating trade in domestic currency.
        • The yuan’s relative stability compared to the rupee and ruble has made it a more attractive currency for settling Russia-India trade
    • Reluctance of Private Banks: The Indian private banks have been reluctant to facilitate trade with Russia due to fears of Western sanctions.
      • Most Indian private banks have significant business interests in Western countries and fear their branches could face sanctions if they engage with Russia.
      • As Russia prefers the yuan for payments, India’s limited exports to Russia have hindered the use of the rupee in bilateral trade.

    What are the benefits of the Internationalisation of the Rupee?

    • Reduced Dependence on USD: Internationalizing the rupee would reduce India’s reliance on foreign currencies like the US dollar for international trade and financial transactions.
      • This would enhance India’s economic sovereignty and reduce exposure to currency fluctuations.
    • Enhanced Trade Efficiency: Using the rupee for international transactions can simplify trade processes and reduce transaction costs.
      • Internationalization of the rupee would eliminate the need for currency conversions, reducing transaction costs and simplifying cross-border trade.
    • Mitigating Risks: Protection from currency volatility not only reduces the cost of doing business but also enables better growth of business, improving the chances for Indian businesses to grow globally
    • Increased Global Influence: A widely accepted rupee would boost India’s economic and political influence on the global stage.

    How can India internationalize the rupee?

    • The Reserve Bank of India permitted settling trade using the rupee through its circular in July 2022.
      • Trade invoicing: For the rupee to be recognized as an international currency, it needs to be increasingly used for trade invoicing.
      • Trade invoicing refers to the process of issuing invoices for goods or services exchanged between international trading partners. It includes detailing the terms of sale, such as prices, quantities, payment terms, and currencies used for settlement.
    • Increase Rupee Turnover: The rupee needs to achieve a global forex turnover share of around 4% to be regarded as an international currency, up from the current 1.6%.
    • Government Support: Strengthening industrial cooperation and addressing banking sector concerns can promote the use of the rupee.

    Challenges involved:

    • Banking Sector Reluctance: Private banks are hesitant to facilitate trade with Russia due to fear of Western sanctions.
    • Rupee Settlement Mechanism: Indian exporters face difficulties using the rupee settlement mechanism due to the absence of a Standard Operating Procedure (SOP) for banks.
      • Note: A Standard Operating Procedure (SOP) for banks is a formal document outlining step-by-step instructions for routine processes and activities to ensure consistency and compliance.
    • Currency Volatility: Both the ruble and the rupee have experienced considerable volatility, complicating trade in domestic currencies.
    • International Sanctions: Private banks’ significant business interests in Western countries make them wary of facilitating trade with Russia.

    How are Russia and India planning to boost trade?

    • Both countries have decided to eliminate non-tariff and tariff barriers in trade.
      • Negotiations for a trade deal with the Russia-led Eurasian Economic Union (EEU) could ease the flow of Indian products into the EEU.
    • Cooperation in manufacturing sectors like transport engineering, metallurgy, and chemicals.
      • Implementation of joint projects in priority areas and expanding reciprocal trade flows of industrial products.
    • Discussions on a Migration and Mobility partnership agreement to facilitate trade and movement between the two countries.

    Way Forward 

    • Enhanced Banking Support and Infrastructure: Develop a robust Standard Operating Procedure (SOP) for banks to facilitate smoother implementation of the rupee settlement mechanism for trade with Russia.
    • Strategic Economic Diplomacy: Strengthen bilateral economic ties through high-level diplomatic engagements to mitigate banking sector reluctance and enhance trust between Indian and Russian financial institutions.

    Mains PYQ: 

    Q Craze for gold in Indian has led to surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization scheme. (UPSC IAS/2015)

  • Asur Tribes to get Forest Land Rights

    Why in the News?

    The Gumla district administration in Jharkhand has announced that the Asur community, a particularly vulnerable tribal group (PVTG) residing in the Netarhat plateau region of Gumla, will soon benefit from the Forest Rights Act (FRA), 2006.

    About Asur Community

    • The Asur tribe primarily resides in the districts of Gumla, Lohardaga, Palamu, and Latehar in Jharkhand, India.
    • They speak Asuri, a Munda language belonging to the Austroasiatic language family.
    • Traditionally, the Asur were skilled iron-smelters, practicing metallurgy using indigenous techniques.
    • Over time, many have shifted to agriculture, although some are still involved in mining work.
    • The Asur community has a traditional council (jati panch) to settle disputes.
    • They maintain kinship ties with neighboring tribes like Kharwar and Munda.

    Social Structure of Asur Community:

    • They live in forest-surrounded clearings called pats, with houses made of mud walls, wooden poles, and roofs covered with paddy straw.
    • Asurs follow a religion that combines animism, animatism, naturalism, and ancestral worship.
    • Their chief deity is Singbonga, and they celebrate festivals like Sarhul and Karma.
    • Marriage is significant, following rules of monogamy with exceptions for barrenness or widowhood.
    • Widow remarriage is allowed, and marriages occur within the tribe (endogamy).

    Back2Basics: Forest Rights Act, 2006

    Details
    Purpose Recognizes and vests forest rights in Forest Dwelling Scheduled Tribes (FDST) and Other Traditional Forest Dwellers (OTFD).
    Eligibility Individuals or communities residing in forest land for at least 3 generations (75 years) prior to December 13, 2005.
    Rights Recognized
    • Title Rights: Ownership up to 4 hectares for cultivation.
    • Use Rights: Includes Minor Forest Produce and grazing areas.
    • Relief and Development Rights: Rehabilitation and basic amenities in case of eviction.
    • Forest Management Rights: Conservation and sustainable use of community forest resources.
    Authority Gram Sabha initiates the process of determining Individual Forest Rights (IFR) or Community Forest Rights (CFR).
    Conservation Balances forest conservation with livelihood and food security of FDST and OTFD.

     

    PYQ:

    [2021] At the national level, which ministry is the nodal agency to ensure effective implementation of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006?

    (a) Ministry of Environment, Forest and Climate Change

    (b) Ministry of Panchayati Raj

    (c) Ministry of Rural Development

    (d) Ministry of Tribal Affairs
  • [15th July 2024] The Hindu Op-ed: The problem with the Karnataka Gig Workers Bill

    [15th July 2024] The Hindu Op-ed: The problem with the Karnataka Gig Workers Bill

    PYQ Relevance:

    Mains: 

    Q) Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC IAS/2021)
    Q) Can the strategy of regional-resource-based manufacturing help in promoting employment in India?  (UPSC IAS/2019)

    Prelims:
    Consider the following statements: (UPSC IAS/2017)
    1. The Factories Act, 1881, was passed with a view to fix the wages of industrial workers and to allow the workers to form trade unions.
    2. N.M. Lokhande was a pioneer in organizing the labour movement in British India.Which of the statements give above is/are correct?
    (a) 1 only
    (b) 2 only
    (c) Both 1 and 2
    (d) Neither 1 nor 2

    Note4Students: 

    Prelims: Right to Employment; Social Welfare Policies of the Government;

    Mains:  Gig Workers and Economy; Minimum Wage Policies adopted in India;

    Mentor comment: Last time we discussed that Gig workers are independent contractors, freelancers, or often through online platforms, rather than being employed in traditional long-term employer-employee relationships. We also studied the key highlight of the Bill proposed for the welfare of gig workers. Gig workers are often excluded from social security and labor legislation due to their ambiguous employment status. In India, we lack a comprehensive code coverage for their security. In this aspect, we need to study the areas of scope where we can bring out significant change in governance and policy frameworks.

    Let’s learn!

    __

    Why in the news? 

    The Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024 follows a similar model to the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023, which also established a welfare board for gig workers.

    • However, critics argue that this model does not address the employment relations of gig workers, which is a crucial aspect of their working conditions.

    The rise of Gig work and the work issues associated in India:

    As per the Economic Survey 2020–21, India has emerged as one of the world’s largest countries for flexible staffing, or gig workers.

    Gig Economy Growth:
    • Current Size: Approximately 7.7 million workers.
    • Future Projections: Expected to rise to 23.5 million by 2029-30.
    • Proportion of Livelihood: Comprising around 4% of overall livelihood in the country.

    Job Distribution:
    • Low Skilled Jobs: 31% (e.g., cab driving, food delivery).
    • Medium Skilled Jobs: 47% (e.g., plumbing, beauty services).
    • High Skilled Jobs: 22% (e.g., graphic design, tutoring)
    • The growing gig economy: The number of gig and platform workers in India is rising rapidly, projected to reach 23.5 million by 2030. Gig work is providing livelihoods amid an overall slowdown in employment generation.
    • Work Issues with Gig Employment:
      • Unresolved Issues: Lack of employment relations means no application of protective labor laws. Many gig workers have protested against issues like revenue sharing, working hours, and poor working conditions.
      • No Minimum Earnings: No guarantee of minimum earnings even when available for work.
      • No Regulation on Working Hours: Regular incidents of overwork and accidents. Gig workers demand fair treatment, improved working conditions, and access to social security.
      • Employment Relations: The existing labor laws are inadequate as they are based on traditional employer-employee relationships, which are absent or complicated in the gig economy. 
      • Aggregator companies consider gig workers as independent contractors, while workers see them as employers who control the terms of service.
    Case Study: U.K. Ruling:
    • The UK Supreme Court Ruled that Uber drivers need to be classified as workers who are entitled to minimum wage and paid leave.
    • This verdict helped in setting a precedent for gig economy workers, potentially leading to significant compensation and improved conditions, due to Uber’s control over their work.

    The issue with the Code and Social Security assigned to Gigworkers in India:

    • Prevailing unclear Law:
      • In the Code on Social Security 2020, the Gig workers are included as informal self-employed. Even in other codes, there is no mention of ‘gig workers’ on Wages, Industrial Relations, and Occupational Safety.
      • Now at present, the issue is that the recent legislations introduced in Rajasthan and Karnataka do not define employment relations, using the term “aggregator” instead of employer.
    • Limitations of the Welfare Board Model
      • The welfare board model adopted by Rajasthan and Karnataka provides some benefits but does not replace institutional social security like provident fund, gratuity, or maternity benefits available to regular workers.
      • Historically, welfare boards have been poorly implemented, as seen with the Construction Workers Welfare Act of 1996 and the Unorganized Workers Social Security Act, where funds were inadequately used.
    • Lack of minimum wage and working hour protections
      • The Karnataka Bill discusses income security regarding payment deductions (through cess) but does not guarantee minimum income, wage entitlements, or revenue sharing between aggregators and gig workers.
      • The bill only requires weekly payments without specifying a minimum amount.

    Conclusion: The Karnataka Bill, like the Code on Social Security, 2020 and the Rajasthan Act 2023, fails to address employment relationships in the gig economy. This oversight confuses employment relations and absolves employers of legal obligations, making it difficult to fully protect workers’ rights

  • [pib] Samvidhaan Hatya Diwas’ on 25th June Every Year

    Why in the News?

    The Government of India has decided to observe 25th June every year as ‘Samvidhaan Hatya Diwas.’ 

    National Emergency imposition in India

    • June 25, 2025, will mark fifty years since the imposition of the Emergency.
    • The Emergency lasted from June 25, 1975, to March 21, 1977.
    • It was characterized by the suspension of civil liberties, press freedom, mass arrests, the cancellation of elections, and rule by decree.

    What was the Emergency?

    • PM Indira Gandhi’s government used constitutional provisions to impose sweeping executive and legislative control.
    • Opposition leaders were jailed, and fundamental rights, including freedom of speech and expression, were curtailed, leading to press censorship.
    • The federal structure was effectively converted into a unitary one, with the Union controlling state governments.
    • Parliament extended its term, made laws on state subjects, and extended the Union’s executive powers to the states.

    Legal and Constitutional Sanction

    • Article 352 allowed the President to proclaim an emergency if India’s security was threatened by war, external aggression, or armed rebellion.
    • In 1975, “internal disturbance” was used as grounds for the Emergency, citing incitements against the police and armed forces.
    • This was the only instance of emergency due to “internal disturbance,” later removed by the 44th Amendment in 1978.
      • Article 358 suspended limitations on Article 19 (“Right to freedom”).
      • Article 359 allowed the President to suspend the right to court enforcement of rights during an emergency.

    Political and Social Circumstances: A Timeline 

    • In 1974, the Navnirman movement against corruption in Gujarat led to President’s Rule.
    • Inspired by Navnirman, a student movement in Bihar, led by Jayaprakash Narayan (JP), aimed to cleanse the country of corruption and misgovernance.
    • In May 1974, George Fernandes led a massive railway workers’ strike.
    • On June 5, 1974, JP called for “Sampoorna Kranti” (total revolution).
    • On June 12, 1975, Justice Jagmohanlal Sinha of the Allahabad High Court convicted Indira Gandhi of electoral malpractice.
    • On June 25, 1975, President Fakhruddin Ali Ahmed signed the Proclamation of Emergency, cutting power to major newspapers and informing the Cabinet the next morning.

    Impact on Opposition Leaders, Media, and Political Dissenters

    • Almost all opposition leaders, including JP, were detained under the Maintenance of Internal Security Act (MISA).
    • Newspapers faced pre-censorship, with UNI and PTI merged into a state-controlled agency, Samachar.
    • More than 250 journalists were jailed, and The Indian Express resisted by printing blank spaces when stories were censored.
    • Sanjay Gandhi’s “five-point programme” included forced family planning and slum clearance, leading to forced sterilizations and violent clashes.

    Sanjay Gandhi’s “Five-Point Programme”

    Sanjay Gandhi, the younger son of then PM, Mrs. Indira Gandhi had come forward with a programme to ‘improve’ the condition of the poor people.

    His programme can be divided under five Headings, i.e.

    1. Adult Education.
    2. To abolish Dowry.
    3. To Grow more trees.
    4. Family planning – only two children.
    5. Eradication of caste system.

    Legal Changes during the Emergency

    • With opposition leaders in jail, Parliament passed amendments barring judicial review of the Emergency and securing the Prime Minister’s election.
    • The 42nd Amendment expanded Union authority over states and gave Parliament unbridled power to amend the Constitution.
    • In ADM Jabalpur vs. Shivkant Shukla (1976), the Supreme Court ruled that detention without trial was legal during an emergency, with Justice H.R. Khanna dissenting.

    Lifting the Emergency and Aftermath

    • Indira Gandhi lifted the Emergency in early 1977, leading to her defeat in the elections.
    • The Janata Party emerged victorious, with Morarji Desai becoming India’s first non-Congress Prime Minister.
    • The Janata government reversed many constitutional changes from the 42nd Amendment, made judicial review of emergency proclamations possible, and removed “internal disturbance” as grounds for emergency imposition.

    PYQ:

    [2022] Which of the following is/are the exclusive power(s) of Lok Sabha?

    1. To ratify the declaration of Emergency
    2. To pass a motion of no-confidence against the Council of Ministers
    3. To impeach the President of India

    Select the correct answer using the code given below:

    (a) 1 and 2

    (b) 2 only

    (c) 1 and 3

    (d) 3 only