From UPSC perspective, the following things are important :
Prelims level: About Tribal Autonomous Councils;
Mains level: Controversy over the 125th Amendment Bill;
Why in the News?
The Union government will set up a committee led by MoS Home Nityanand Rai to address concerns and expedite the 125th Constitutional Amendment Bill, which aims to empower tribal autonomous councils in northeastern states.
What is the Controversy over the 125th Amendment Bill?
Ā The Constitution (125th Amendment) Bill, 2019 aims to grant more financial, executive, and administrative powers to tribal autonomous councils under the Sixth Schedule of the Constitution.
The Bill has faced delays due to unresolved issues between the Union government and the tribal councils, prompting the formation of a committee to address these concerns.
Tribal leaders argue that the Bill is essential for streamlining administrative systems, ensuring proper resource flow, and enhancing the capacity of councils to implement policies beneficial to their communities.
The Bill has been pending since its introduction in the Rajya Sabha in February 2019 and has faced scrutiny from the Departmental-Related Standing Committee on Home Affairs, which flagged multiple issues.
What are Tribal Autonomous Councils?
Tribal autonomous councils are local governance bodies established under the Sixth Schedule of the Constitution to provide autonomy and protect the rights of tribal populations in certain northeastern states of India.
Ā Ā As of now, there are 10 autonomous councils across Assam, Meghalaya, Mizoram, and Tripura, which have the authority to legislate on matters related to land, public health, and agriculture.
These councils are intended to empower tribal communities by allowing them to manage their resources and governance independently from state governments.
About the North Eastern Council (NEC) and Its Structural Mandate
The North Eastern Council (NEC) was established in 1972 as a statutory body to promote the economic and social development of the northeastern states of India.
The NEC’s primary mandate includes coordinating the planning and implementation of development programs, facilitating inter-state cooperation, and addressing issues specific to the northeastern region.
The NEC comprises the Chief Ministers of the northeastern states, along with a nominated representative from the central government, ensuring representation from both state and central authorities.
The Council focuses on various sectors, including infrastructure development, education, health, and cultural preservation, aiming to enhance the overall development of the northeastern states.
Conclusion: The Union government should initiate a transparent and inclusive consultation process involving all stakeholders, including tribal leaders, local communities, and state governments. This process should aim to address the concerns raised by tribal councils and ensure that their voices are heard in the legislative process.
From UPSC perspective, the following things are important :
Prelims level: Cassini-Huygens Mission, Titan
Why in the News?
US space agency NASAās Cassini-Huygens spacecraft launched in October 1997.
Using Cassiniās radar data, scientists from Cornell University have discovered new information about the liquid ocean on Titan, Saturnās largest moon.
Observations made about Titan
Titan is composed ofhydrocarbons ā organic chemicals consisting of carbon and hydrogen.
The astronomers have reportedly located calm seas of methane with a slow tidal current.
About Cassini-Huygens Mission
The Cassini-Huygens mission was a collaborative project between NASA, the European Space Agency (ESA), and the Italian Space Agency (ASI) to explore Saturn and its moons.
The spacecraft was named after astronomers Giovanni Cassini and Christian Huygens.
The mission consisted of the Cassini orbiter and the Huygens probe.
It was launched on October 15, 1997.
It ended its mission on September 15, 2017 by plunging into Saturn’s atmosphere.
Key Achievements:
Saturn Exploration:
Detailed study of Saturn’s atmosphere, rings, and magnetosphere.
Discovered new rings and observed the complex structure of the existing ones.
Moons of Saturn:
Titan Exploration: Huygens probe successfully landed on Titan, Saturnās largest moon, on January 14, 2005, providing the first direct exploration of Titan’s surface and atmosphere.
Enceladus Discoveries: Found water-ice plumes erupting from Enceladus, indicating a subsurface ocean that could potentially harbor life.
Other Moons: Provided detailed images and data on other moons like Lapetus, Rhea, Dione, and Tethys.
Technological Milestones:
Demonstrated the success of long-duration missions in deep space.
Advanced the understanding of spacecraft navigation and operation in complex planetary environments.
PYQ:
[2014] Which of the following pairs is/are correctly matched?
Spacecraft
Purpose
1.
Cassini-Huygens
Orbiting the Venus and transmitting data to the Earth
2.
Messenger
Mapping and investigating the Mercury
3.
Voyager 1 and 2
Exploring the outer solar system
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
From UPSC perspective, the following things are important :
Prelims level: Hema Commission Report on Women Safety
Why in the News?
A single bench of the Kerala High Court has stayed the release of the Justice Hema Commission report.
The report investigated womenās working conditions in the Malayalam film industry.
About the Assault that Exposed the Deep Gender DivideĀ Ā Ā Ā Ā Ā
On February 17, 2017, a leading Malayalam film actress was abducted and sexually assaulted in her car while traveling from Thrissur to Kochi.
The incident caused shock and outrage across Kerala as disturbing details emerged, including a video purportedly intended for blackmail.
Six of the ten accused were arrested quickly, and popular actor Dileep was named an accused and remanded to judicial custody in July. He is currently out on bail, with the trial ongoing since 2020.
Formation of the Women in Cinema Collective (WCC)
The incident highlighted the discriminatory treatment faced by women in the film industry.
The Women in Cinema Collective (WCC) was formed in response, submitting a petition to the Chief Minister demanding an inquiry into gender issues in the industry.
The Hema Commission
In July 2017, five months after the incident, the state government formed a 3-member committee headed by retired Kerala High Court judge, Justice K Hema.
The committee’s objective was to investigate issues of sexual harassment and gender inequality in the Malayalam film industry.
In December 2019, a 300-page report was submitted to the CM Pinarayi Vijayan, including documents, audio, and video evidence.
Findings and Recommendations
The commission consulted multiple women professionals in the industry, recording detailed accounts of sexual harassment, wages earned, and possible blacklisting.
The report highlighted the existence of a casting couch, and the presence of alcohol and drugs on film sets.
The commission recommended forming a tribunal to investigate these allegations.
Other recommendations included making job contracts mandatory, ensuring wage parity across genders for the same job, banning drugs and liquor on shooting locations, and ensuring safe working conditions for women.
PYQ:
[2010] Two of the schemes launched by the Government of India for Womenās development are Swadhar and Swayam Siddha. As regards the difference between them, consider the following statements:
Swayam Siddha is meant for those in difficult circumstances such as women survivors of natural disasters or terrorism, women prisoners released from jails, mentally challenged women etc., whereas Swadhar is meant for holistic empowerment of women through Self Help Groups.
Swayam Siddha is implemented through Local Self-Government bodies or reputed Voluntary Organizations whereas Swadhar is implemented through the ICDS units set up in the states.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ā
[2014] We are witnessing increasing instances of sexual violence against women in the country. Despite existing legal provisions against it, the number of such incidences is on the rise. Suggest some innovative measures to tackle this menace.
From UPSC perspective, the following things are important :
Prelims level: Niger, Niger Benin Export Pipeline
Why in the News?
The China-backed Niger-Benin Export Pipeline that would make Niger an oil-exporting country is being threatened by an internal security crisis and a diplomatic dispute with neighboring Benin.
These issues arose after last yearās coup that toppled Niger’s democratic government.
About Niger
Niger, located in West Africa, is a landlocked country known for its vast desert landscapes and significant cultural heritage.
The northern region of Niger is dominated by the Sahara Desert, comprising more than half of the country.
The central part of Niger is characterized by the Sahel, a semi-arid transition zone between the Sahara
The AĆÆr Mountains, located in the northern central part are a significant mountain range with the highest peak, Mont Idoukal-n-TaghĆØs (2,022 m).
The Niger River is the country’s primary water source.
Lake Chad is a significant body of water shared with Nigeria, Chad, and Cameroon. Its size keep on fluctuating.
About Niger Benin Export Pipeline
The 1,930-kilometer pipeline runs from Nigerās Chinese-built Agadem oil field to the port of Cotonou in Benin.
It was designed to help Niger achieve an almost 5x increase in oil production through a $400 million deal with Chinaās state-run national petroleum company.
The pipeline faces significant challenges, including a recent diplomatic disagreement with Benin.
These issues threaten to strain Niger’s economy, heavily reliant on external support now withheld after a coup.
PYQ:
[2018] Which of the following has/have shrunk immensely/dried up in the recent past due to human activities?
Aral Sea
Black Sea
Lake Baikal
Select the correct answer using the code given below:
From UPSC perspective, the following things are important :
Prelims level: Comparison of Indian Constitution
Why in the News?
On July 14, K. P. Sharma Oli was sworn in as Nepalās Prime Minister for the fourth time, leading a new coalition government.
Since the abolition of the monarchy in 2008, Nepal has had 14 governments despite a new constitution in 2015 promising progress.
Evolution of Nepal’s Constitution
1948: The Government of Nepal Act was the first attempt at creating a constitution.
1951: The Interim Government of Nepal Act aimed to establish democracy but was replaced in 1959.
1959: Introduced a multi-party system, but the Panchayat Constitution of 1962 established a party-less system under King Mahendra.
1990: A constitutional monarchy restored the multi-party system.
2007: An Interim Constitution was adopted after continued political upheavals.
2015: The current constitution established Nepal as a federal democratic republic.
Comparing the Indian Constitution and Nepal’s Constitution:
India
Nepal
Historical Background
Adopted on November 26, 1949, and came into effect on January 26, 1950.
Framed by the Constituent Assembly elected in 1946.
Current constitution promulgated on September 20, 2015.
Many attempts since 1948, 1951, 1959, 1962, 1990, and 2007.
Form of Government
Quasi-federal nature of the Indian constitution is described as a “Union of States” in Article 1. Other factors also talk about the quasi-federal like Emergency power and independent judiciary. etc
Parliamentary system with the President as the ceremonial head and the Prime Minister as the head of government.
Federal democratic republic.
Parliamentary system with the President as the ceremonial head and the Prime Minister as the executive head.
Structure of Government
Bicameral legislature: Lok Sabha (House of the People) and Rajya Sabha (Council of States).
Three levels of government: central, state, and local.
Bicameral legislature: House of Representatives and National Assembly.
Three levels of government: federal, provincial, and local.
Federal Structure
More centralized federal structure. The central government has significant authority over states.
Flexible to allow greater central control when necessary.
More decentralized federal structure. Greater autonomy to provinces.
Includes seven provinces, each with its own government and legislature.
Elections and Representation
First-past-the-post (FPTP) system for Lok Sabha elections. Representation through single-member constituencies and multi-party systems.
Mixed electoral system with both FPTP and proportional representation (PR). Ensures broader representation but leads to the proliferation of smaller parties.
Judiciary
The Supreme Court of India is the highest judicial authority.
Ensures protection of fundamental rights and upholds the rule of law.
The Supreme Court of Nepal is the highest judicial body.
Interprets the Constitution and protects citizens’ rights. Aims to uphold the rule of law and safeguard fundamental rights.
Fundamental Rights and Duties
Comprehensive list of Fundamental Rights in Part III, including equality, freedom, religion, and constitutional remedies. Fundamental Duties in Part IV-A.
Extensive fundamental rights, covering civil, political, and socio-economic rights. Emphasizes affirmative action for marginalized groups.
Secularism and Religion
A secular state with no official religion which mentioned in the Preamble of the Constitution.
The secular state was declared in the 2015 Constitution.
Protects religious freedom and promotes harmony among religious communities.
PYQ:
[2023] Compare and contrast the British and Indian approaches to Parliamentary sovereignty.
[2022] Critically examine the procedures through which the Presidents of India and France are elected.
[2021] Analyze the distinguishing features of the notion of Right to Equality in the Constitutions of the USA and India.
[2021] Analyse the distinguishing features of the notion of Right to Equality in the Constitutions of the USA and India.
[2020] The judicial systems in India and the UK seem to be converging as well as diverging in recent times. Highlight the key points of convergence and divergence between the two nations in terms of their judicial practices.
[2019] What can France learn from the Indian Constitutionās approach to secularism?
[2018] India and the USA are two large democracies. Examine the basic tenets on which the two political systems are based.
From UPSC perspective, the following things are important :
Prelims level: About GM Mustard Crop
Mains level: Significance of GM crops
Why in the news?
A two-judge Bench of the Supreme Court delivered a split verdict on Tuesday, July 23, regarding the “environmental release” of Genetically Modified (GM) mustard.
About GM Mustard CropĀ
Development and Approval Process: On September 15, 2015, the Centre for Genetic Manipulation of Crop Plants (CGMCP) at Delhi University sought approval from the Genetic Engineering Appraisal Committee (GEAC) for the environmental release of GM mustard DMH-11.
Biosafety Dossier: The CGMCP submitted a biosafety dossier to the GEAC, which created a sub-committee to examine its contents. After revisions, the sub-committee submitted its report, inviting comments in September 2016.
GEAC Recommendations: On May 11, 2017, the GEAC recommended the environmental release of GM mustard, allowing field tests to assess the crop’s effects. However, the Ministry of Environment sent the proposal back for re-examination in March 2018 after receiving several representations.
Deferred Tests: The GEAC directed the CGMCP to examine the effects of GM mustard on honey bees and soil microbial diversity, but these tests were deferred through 2020-21.
The GEAC-appointed expert committee found that honeybees do not discriminate between other GM crops such as genetically engineered canola.
What is the case before the Supreme Court?
Background of the Case: The case arose from challenges by environmentalist Aruna Rodrigues and the organization Gene Campaign against the GEAC’s approval for the environmental release of GM mustard, arguing that the decision violated the precautionary principle and lacked proper scientific scrutiny.
Split Verdict: The Supreme Court delivered a split verdict regarding the approval for the environmental release of genetically modified (GM) mustard, specifically the hybrid DMH-11. Justices B.V. Nagarathna and Sanjay Karol had differing opinions on the legality of the Genetic Engineering Appraisal Committee’s (GEAC) decision-making process.
Justice Nagarathna’s Opinion: Justice Nagarathna held that the GEAC’s approval was flawed and did not follow the necessary procedures, particularly failing to conduct promised field tests. She emphasized that the approval violated public trust and the precautionary principle, which is essential for protecting the environment and public health.
Justice Karol’s Opinion: In contrast, Justice Karol argued that the GEAC’s decision was valid and aligned with the development of scientific temper. He stated that field trials are necessary to assess the environmental safety of GM mustard and that the decision-making process was independent and reasoned.
Unanimous Directives: Despite the split decision, both judges agreed on the need for the Union government to formulate a national policy regarding GM crops. This policy should involve consultations with various stakeholders, including experts, farmers, and state governments.
Case referred to larger bench: The case will be referred to a larger bench for further adjudication due to the differing opinions. The Supreme Court directed that the Ministry of Environment, Forest, and Climate Change (MoEF&CC) should conduct a national consultation within four months to develop this policy.
Concerns Raised: Justice Nagarathna pointed out that the GEAC did not consider the long-term effects of GM mustard on health and the environment, while Justice Karol noted the importance of conducting field trials under strict safeguards to monitor the crop’s impact.
Conclusion: The Union government should formulate a detailed and inclusive national policy on genetically modified crops. This policy should be based on extensive consultations with experts, farmer representatives, state governments, and other stakeholders to ensure a balanced approach that considers scientific, environmental, and public health perspectives.
Mains PYQ:Ā
Q Ā What are the present challenges before crop diversification? How do emerging technologies provide an opportunity for crop diversification? (2021)
From UPSC perspective, the following things are important :
Prelims level: Government initiatives related to Employment
Mains level: Significance of recent initiatives in the Budget (2024-2025)
Why in the news?
The 2024-25 Budget is a progressive proposal featuring several commendable initiatives aimed at boosting India’s economic growth and advancing social progress.
Prioritized areas in the recent Budget 2024-25
Job Creation and Skilling: The budget allocates ā¹1.48 lakh crore towards job creation, employment, and skilling, emphasizing the importance of developing a skilled workforce to support India’s service sector. This shift from a focus on manufacturing to skilling reflects a strategic move towards building a service-oriented economy.
Energy Transformation: There is significant investments are directed towards energy transformation initiatives, including solar panel manufacturing and nuclear energy development. The budget allocates ā¹89,287 crore to crucial sectors, indicating a commitment to sustainable energy solutions.
Healthcare Initiatives: The budget includes measures to enhance healthcare access, such as customs duty exemptions on life-saving cancer medications and components for advanced medical equipment.
Technology and Innovation: A framework with nine priorities is introduced to leverage advanced technology and foster collaboration between the government and private sector, promoting growth and innovation across various sectors.
For example: The budget allocates ā¹1 lakh crore specifically for research and innovation, accompanied by a 50-year interest-free loan.
What does the budget say on Accessibility and Affordability? Ā Ā
Customs Duty Exemptions on drugs: The budget exempts customs duties on three essential cancer medications, making them more affordable and accessible to patients. This move addresses the high costs associated with cancer treatments, which often pose significant barriers to access.
Support for Medical Equipment: Customs duties are also waived for components of X-ray tubes and digital detectors, which are crucial for advanced medical technologies.
Alignment with Domestic Capacity: The budget emphasizes aligning customs duties with domestic capacity under the phased manufacturing program, fostering a conducive environment for startups and encouraging local manufacturing.
On Prioritizing Inclusivity and Fiscal Prudence
Women’s Workforce Participation: The budget focuses on boosting women’s participation in the economy through targeted initiatives such as hostels, creches, and skilling programs.
According to a report by McKinsey, India can increase its 2025 GDP, estimated at $4.83 trillion, by 16%-60% simply by enabling women to participate in the economy on par with men
Research and Development: With India spending only 0.7% of its GDP on research, the budget encourages private sector collaboration with the government to increase investments in R&D. This collaboration is vital for fostering innovation and ensuring sustainable economic growth.
Public-Private Partnerships: The budget promotes public-private partnerships to enhance healthcare delivery and infrastructure, reflecting a commitment to inclusivity and collaboration in achieving economic and social goals.
Conclusion: The government should expand the scope of skilling programs to cover a wider range of sectors and skill levels while ensuring the workforce is equipped to meet the evolving demands of the service-oriented economy.
Explained | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Comparision between President and Governor
Mains level: Immunity Under Article 361
Why in the news?
The Supreme Court has agreed to examine if the immunity granted to the President and Governors under Article 361 violates fundamental rights and constitutional principles.
Ā What is the case?Ā Ā
The Supreme Court is examining a petition filed by a contractual woman employee of the West Bengal Raj Bhavan, who has accused Governor C.V. Ananda Bose of sexual harassment and molestation.
The petitioner argues that the “absolute immunity” granted to the Governor under Article 361 of the Constitution undermines her fundamental rights and the fairness of the legal process.
Immunity Under Article 361:Ā
Article 361 provides immunity to the President and Governors from being answerable to any court for acts performed in their official capacity.
Specifically, clause (2) of Article 361 states that no criminal proceedings can be initiated or continued against the President or a Governor during their term of office. The petitioner contends that this immunity should not apply to illegal acts that violate fundamental rights.
The petitioner argues that the Governor’s immunity caused negligent handling of her complaint by police, delaying justice and hindering investigations.
The Supreme Court will determine if Article 361(2) immunity is absolute or can be challenged in serious cases like sexual harassment.
Does Article 361 Grant Absolution to the Governor against Criminal Charges?
Scope of Article 361: Article 361 does grant significant immunity to Governors, shielding them from criminal proceedings during their term. However, the immunity is not absolute.
The first provision allows for the conduct of the President to be reviewed by designated bodies for impeachment, while the second provision allows for civil suits against the government.
Judicial Precedents: Previous court rulings have indicated that while Governors enjoy immunity under Article 361, this does not prevent judicial scrutiny of their actions, especially if those actions infringe upon fundamental rights.
For example, in the case of Rameshwar Prasad vs. Union of India, the Supreme Court stated that civil immunity does not preclude challenges based on malafide actions.
Potential for Legal Challenge: The current case may set a precedent for how Article 361 is interpreted regarding criminal acts committed by Governors.
If the court finds that immunity does not apply to acts that violate fundamental rights, it could pave the way for accountability and legal recourse for victims of misconduct by constitutional authorities.
Conclusion: The Supreme Court’s interpretation of Article 361 could redefine the immunity of Governors, potentially allowing criminal proceedings for actions violating fundamental rights, thereby ensuring accountability and justice for victims.
Mains PYQ:
Q Discuss the essential conditions for the exercise of the legislative powers by the Governor. Discuss the legality of the re-promulgation of ordinances by the Governor without placing them before the Legislature. (UPSC IAS/2022)
From UPSC perspective, the following things are important :
Prelims level: About PMJAY
Mains level: Challenges to the Inclusivity of PMJAY
Why in the news?
With the worst of the COVID-19 pandemic behind us (though the World Health Organization warns the virus still lingers), the Union Budget shifted focus to economic growth levers like infrastructure and employment.
It was also hoped that recognizing population health as crucial for economic growth would lead to continued investment in strengthening health systems.
A budget estimate refers to the initial allocation of funds designated for various programs, departments, or projects within a fiscal year. It represents the government’s expectations regarding how much money will be required to meet planned expenditures.
In contrast, revised estimates come into play later in the fiscal year. After assessing the actual expenditures and needs after the first six months, the government may adjust the initial budget estimates based on how much of the allocated funds have been utilised and what additional resources may be necessary.
Comparisons with Previous Years
Budgetary Estimates: The comparison of the Budget Estimates (BE) for health between 2023-24 and 2025-25, reveals minimal increases:
Overall Health Ministry Budget: 1.98% increase
National Health Mission (NHM): 1.16% increase
PMJAY: 1.4% increase
Overall Health Ministry budget: The present allocation made in the current Budget is deemed to be inadequate for expanding health coverage services and enhancing the impact of flagship health programs, particularly in light of rising non-communicable diseases and the goal of universal health coverage by 2030.
Misleading Comparisons: When we compare the Budget estimates with the previous Revised estimates (RE) the budgetary increase of nearly 12% is misleading, as the RE reflects actual spending rather than the program’s needs.
Missed Opportunities
Health Workforce Development: While the budget mentioned an increase in new medical colleges, it failed to address the critical need for a multi-layered, multi-skilled health workforce.
Drug Pricing Mechanisms: Although customs duties were waived on three anti-cancer drugs. However, the budget missed the chance to implement price controls and pooled procurement strategies that could have lowered drug costs across both public and private healthcare sectors. Establishing such mechanisms could enhance the affordability and accessibility of essential medications.
Climate-Resilient Agriculture: While the budget committed to climate-resilient agriculture, which is crucial for food security, it did not sufficiently link these efforts to health outcomes, such as nutrition and public health, which are critical in the context of rising health challenges.
Limited Coverage of Middle Class: PMJAY primarily targets the bottom 40% of the population based on economic status, leaving the middle class without coverage.
Focus on Secondary and Tertiary Care: The program emphasizes secondary and tertiary healthcare, often neglecting primary care services. This approach limits comprehensive health coverage and fails to address preventive healthcare needs, which are crucial for achieving UHC.
Awareness and Accessibility Issues: There is a significant disparity in awareness and accessibility of PMJAY across states.
For example, awareness is notably higher in Tamil Nadu (80%) compared to Bihar (20%).Ā
Way forward:Ā
Targeted Funding for Flagship Programs: Need to allocate a more substantial increase in the budget for the National Health Mission (NHM) and Pradhan Mantri Jan Arogya Yojana (PMJAY) to the eradication of non-communicable diseases, tuberculosis elimination by 2025.
Strengthen Primary Healthcare: Govt. should ensure adequate funding for primary healthcare services, which form the foundation for preventive and community health initiatives.
Mains PYQ:
Q The public health system has limitations in providing universal health coverage. Do you think that the private sector can help in bridging the gap? What other viable alternatives do you suggest? (2015)
The Indian Council of Medical Research (ICMR) Regional Medical Research Centre for North East has developed the “worldās cheapest CRISPR Cas-based TB testing system”.
Back2Basics: CRISPR-Cas9 Technology
CRISPR-Cas9 stands for Clustered Regularly Interspaced Short Palindromic Repeats and CRISPR-associated protein 9.
It is a technology that allows geneticists and researchers to edit parts of the genome by altering sections of the DNA sequence.
Emmanuelle Charpentier and Jennifer Doudnaās work on CRISPR-Cas9 as a āmolecular scissorā earned them the 2020 Nobel Prize in chemistry.
The system consists of two key components:
Cas9: This is the enzyme that acts like a pair of molecular scissors. It is responsible for cutting the DNA strand at a specific location, allowing for the removal, addition, or alteration of DNA at that site.
Guide RNA (gRNA): This is a piece of RNA that is designed to find and bind to a specific sequence of DNA that matches its code. The gRNA guides the Cas9 enzyme to the exact spot in the genome where an edit is desired.
Mechanism:
The process begins with the design of a gRNA that matches the DNA sequence where an edit is needed.
Once inside the cell, the Cas9 enzyme and the gRNA form a complex that can identify and bind to the target DNA sequence.
The Cas9 then cuts the DNA at this location.
After the DNA is cut, the cellās natural repair mechanisms can be harnessed to add or remove genetic material, or to make specific changes to the DNA.
Applications: Used for gene editing to correct genetic disorders, develop targeted cancer therapies, enhance diagnostics for infectious diseases, and create personalized medicine approaches.
About theNew TB Detection System
The system can detect TB bacteria using DNA from a patientās saliva at a very low cost.
Specific DNA sequences unique to Mycobacterium tuberculosis (the bacteria causing TB) are identified.
It can identify the bacteria in preliminary stages and test over 1,500 samples simultaneously within approximately two hours.
The technology is simple enough to be used in primary health centres in villages.
TB Situation in India:
TB kills an estimated 480,000 Indiansannually, or over 1,400 patients every day.
India has more than amillion āmissingā TB cases each year, which remain undiagnosed or inadequately diagnosed and treated in the private sector.
National Goals for Elimination of TB:Ā
Pradhan Mantri TB Mukt Bharat Abhiyan (2022): It is stipulated to meet the goal of ending the TB epidemic by 2025 from the country, five years ahead of the Sustainable Development Goals (SDG) for 2030.
Nikshay Poshan Yojana (2018): Launched in 2018, this scheme provides nutritional support to TB patients. Under this scheme, TB patients receive a direct benefit transfer (DBT) of Rs. 500 per month to purchase food.
PYQ:
[2019] What is Cas9 Protein that is often mentioned in news?
(a) A molecular scissors used in targeted gene editing
(b) A biosensor used in the accurate detection of pathogens in patients
(c) A gene that makes plants pest-resistant
(d) A herbicidal substance synthesized in genetically modified crops
[2014] Can overuse and free availability of antibiotics without Doctorās prescription, be contributors to the emergence of drug-resistant diseases in India? What are the available mechanisms for monitoring and control? Critically discuss the various issues involved.
The Gandhi Sagar sanctuary in Madhya Pradesh is the preferred location for the next batch of cheetahās relocation plan.
However, Banni in the Rann of Kutch, Gujarat is also being prepared to house some of them.
Cheetah Reintroduction in India:
In India, cheetahs disappeared in the early 1950s due to hunting and the loss of their habitat.
The āAction Plan for Reintroduction of Cheetah in India /Project Cheetah (2022)ā aims to bring cheetahs from African countries to various national parks.
It is spearheaded by the National Tiger Conservation Authority (NTCA).
Recently, cheetahs from Namibia were reintroduced in Kuno National Park, Madhya Pradesh.
Cheetah are listed as VULNERABLE by the IUCN; Schedule II of the Wild Life (Protection) Act, 1972.
Kuno NP and Gandhi Sagar has an ideal habitat parallel to Maasai Mara (a National Park) in Kenya, suitable for cheetahs.
About Gandhi Sagar Wildlife Sanctuary
It is located in western Madhya Pradesh and covers an area of 368.62 sq km.
It is a flat rocky plateau characterized by shallow topsoil and exposed sheetrock.
It is divided by the Chambal River, with the Gandhi Sagar dam and reservoir within its boundaries.
Flora and Fauna:
Flora: The sanctuary features a savannah ecosystem with open grasslands interspersed with dry deciduous trees. Riverine valleys within the sanctuary support evergreen vegetation.
Fauna: The sanctuary is home to a diverse range of wildlife, including species like leopards, sloth bears, striped hyenas, grey wolves, golden jackals, jungle cats, Indian foxes, and marsh crocodiles.
About Banni Grasslands:
The Banni Grassland is located in the Kutch district of Gujarat, covering around 3,847 square km.
The climate is arid and semi-arid, with extremely hot summers (temperatures above 45Ā°C) and mild winters (12Ā°C to 25Ā°C), receiving 300-400 mm of annual rainfall mainly during the monsoon.
Flora: Grasses such as Dichanthium, Sporobolus, and Cenchrus species, with salt-tolerant plants, shrubs, and trees like Acacia and the invasive Prosopis juliflora.
Fauna: Indian wolf, hyena, chinkara, Great Indian Bustard, flamingos, and various raptors, reptiles, and invertebrates.
It is inhabited by pastoral communities like the Maldharis, who rely on livestock grazing (cattle, buffalo, and sheep) for their livelihood.
Agriculture is limited due to arid conditions, with some areas used for salt production.
PYQ:
[2024]Ā Consider the following statements:
1. Lions do not have a particular breeding season.
2. Unlike most other big cats, cheetahs do not roar.
3. Unlike male lions, male leopards do not proclaim their territory by scent marking.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
[2012]Ā Consider the following: (2012)
Black-necked crane
Cheetah
Flying squirrel
Snow leopard
Which of the above are naturally found in India?
(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4
From UPSC perspective, the following things are important :
Prelims level: Typhoon Gaemi
Why in the News?
After making landfall in the Philippines, Typhoon Gaemi is heading towards Taiwan.
What is a Typhoon?
A typhoon is a mature tropical cyclone that forms in the Northwest Pacific Ocean, primarily between 100Ā°E and 180Ā°E.
It is characterised by strong winds, and heavy rain, and can cause significant damage due to high wind speeds, storm surges, and flooding.
Factors causing its formation:
It needs sustained ocean temperatures of 26.5Ā°C or higher.
High moisture content in the mid-troposphere.
Presence of the Coriolis force to initiate rotation.
Minimal vertical wind shear to allow for storm growth.
Atmospheric instability to promote rising motion and thunderstorm activity.
An initial low-pressure area or tropical wave to trigger development.
Formation Regions: Northwest Pacific Ocean in areas east of the Philippines, southeast of Japan, and near Taiwan; South China Sea and in Western North Pacific near the Mariana Islands and Guam.
Note: Typhoons do not form in the South Atlantic Ocean and the southeastern Pacific Ocean because of cooler sea surface temperatures and higher wind shear in those regions.
PYQ:
[2015] In the South Atlantic and South-Eastern Pacific regions in tropical latitudes, cyclone does not originate. What is the reason?
(a) Sea surface temperatures are low
(b) Inter-Tropical Convergence Zone seldom occurs
(c) Coriolis force is too weak
(d) Absence of land in those regions
Prelims Only | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 21, Article 19(1)(e), Right to Shelter
Why in the News?
The Supreme Court emphasised the need to balance railway infrastructure development in Haldwani, Uttarakhand, with the fundamental right to shelter nearly 50,000 people accused of illegally encroaching on railway land.
What was the Case?
The hearing was based on an application filed by the Railways seeking to modify a January 2023 Supreme Court order.
The order had stayed a Uttarakhand HC direction to evict the families within a week, even using paramilitary forces.
The application pointed out that the Ghaula River flood has disrupted railway operations in the region and that more land was urgently needed to lay new tracks.
What is the Right to Shelter?
The right to shelter is derived from the Right to Life under Article 21 of the Constitution of India, which guarantees the protection of life and personal liberty.
Article 19(1)(e) provides the Right to reside and settlein any part of the territory of India.
Judicial pronouncements related to it:
Olga Tellis v. Bombay Municipal Corporation(1985): The Supreme Court recognized the right to livelihood as a part of the right to life under Article 21.
Chameli Singh v. State of Uttar Pradesh(1996): The Supreme Court declared that the right to shelter is a fundamental right under Article 21. It includes adequate living space, safe and decent structures, clean surroundings, light, air, water, electricity, and sanitation.
Ahmedabad Municipal Corporation v. Nawab Khan Gulab Khan(1997): The Supreme Court directed the state to construct affordable houses for the poor, reiterating the stateās duty to provide shelter and make the right to life meaningful.
Various Legislations supporting the Right to Shelter:
The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
The Slum Areas (Improvement and Clearance) Act, 1956
PYQ:
[2021] Consider the following statements :ā
āRight to the Cityā is an agreed human right and the UN-Habitat monitors the commitments made by each country in this regard.ā
āRight to the Cityā gives every occupant of the city the right to reclaim public spaces and public participation in the city.ā
āRight to the Cityā means that the State cannot deny any public service or facility to the unauthorized colonies in the city.ā
Which of the statements given above is/are correct?
From UPSC perspective, the following things are important :
Prelims level: Schemes related to the social sector;
Mains level: Employment challenges;
Why in the News?
Budget 2024 maintains the same approach as previous years regarding social sector allocations.
Decreasing allocations in the Budget for social sector schemes
Education Sector: The allocations for school education increased by ā¹5,000 crore and for higher education by ā¹3,000 crore. The increased recoveries from fees and self-financing schemes suggest a shift towards cost recovery in educational institutions.
Health Sector: The allocation for the Department of Health and Family Welfare rose by only ā¹1,500 crore.
Food Subsidy: There is a limited increase in food subsidies despite rising economic costs and the need to update coverage based on the latest population figures.
Shift in Approach: The government giving greater emphasis on cost-effectiveness and privatization in education and health, shifting focus towards contributory schemes like the Atal Pension Yojana.
Social Sector Schemes in Budget 2024-25
Social Protection Schemes:
POSHAN Scheme: There is a slight increase from ā¹11,600 crore to ā¹12,467 crore, but still less than the actual expenditure in 2022-23.
Saksham Anganwadi Scheme: The allocation increased to ā¹21,200 crore from ā¹20,554 crore, but no increase in salaries for Anganwadi workers or honorarium for mid-day meal cooks.
Maternity and Social Assistance:
Samarthya Scheme: The budget reduced to ā¹2,517 crore from ā¹2,582 crore. The PMMVY schemeās maternity benefits have remained unchanged since 2017.
NSAP: Allocation for social security pensions remains unchanged at ā¹9,652 crore, reducing real coverage and value.
Schemes for the Unemployed
The ‘Prime Minister’s Package for Employment and Skilling’ includes government-sponsored internships, formalization of jobs through incentives for EPFO enrolments, and skill-development programmes
An allocation of ā¹2 lakh crore over five years for the employment package, linked to industry response
Schemes for Street Vendors
The PM SVANidhi Scheme (PM Street Vendor’s AtmaNirbhar Nidhi) aims to benefit over 50 Lakh street vendors across India
All lending institutions, including NBFCs, are participating in the scheme to provide affordable loans to street vendors
Employment Challenges
Stagnant Wages and Dampened Demand: The Indian economy faces significant challenges with stagnant wages, which affect consumer demand. This stagnation can hinder overall economic growth and employment generation.
Reliance on the Private Sector for Job Creation: The government is increasingly looking to the private sector to address employment challenges.
Initiatives like the ‘Prime Ministerās Package for Employment and Skilling’ aim to incentivize private sector job creation through government-sponsored internships and skill development programs.
Limited Budgetary Allocations: The budgetary allocations for employment-related schemes are limited, with the entire employment package amounting to ā¹2 lakh crore over five years.
Focus on Supply-Side Solutions: The current approach emphasizes supply-side measures to incentivize the private sector rather than addressing the underlying demand-side issues, such as low consumer spending and economic uncertainty.
Way forward:Ā
Enhance Social Sector Investments: The government should significantly increase budget allocations for critical social sector schemes, particularly in education, health, and social protection.
Comprehensive Employment Strategy: Need to develop a holistic approach to employment that addresses both supply and demand-side issues.
From UPSC perspective, the following things are important :
Prelims level: Data trends in economic survey;
Mains level: Major five issues with the Indian Economy;
Why in the News?
The 2023-24 Economic Survey highlights realistic challenges for India’s growth, projecting GDP growth at 6.5%-7% for FY 2024-25 despite 8% growth in FY 2023-24.
What are the major five issues with the Indian Economy?Ā Ā
Weak Demand: In India, an unfavourable environment for FDI growth is due to high interest rates in developed countries, which increases the cost and opportunity cost of investment in India.
Dependence on China: Due to over-reliance on China for imports, particularly in key sectors like renewable energy, limits India’s manufacturing capabilities and increases vulnerability to geopolitical tensions.
Tepid Private Investment: Despite tax cuts aimed at stimulating capital formation, the corporate sector has not significantly increased investment, leading to a lack of job creation and economic dynamism.
Employment Challenges: The need to generate approximately 78.5 lakh jobs annually in the non-farm sector until 2030 to accommodate the growing workforce, coupled with insufficient data on job creation, complicates labour market analysis.
Infrastructure Deficiencies: Inadequate infrastructure, such as roads, railways, and sanitation, continues to hinder economic development and efficiency, requiring substantial investment and reform to improve productivity.
What are the suggestions given in the Economic Survey?Ā
Private Sector’s Role in Job Creation: The corporate sector should take responsibility for creating jobs, as it is in their enlightened self-interest.
Embracing Healthy Lifestyle: Indian businesses should learn from India’s traditional lifestyle, food, and recipes to live healthily and in harmony with nature.
Focusing on Agriculture: The farm sector can generate higher value addition, boost farmers’ income, create opportunities for food processing and exports, and make the sector attractive to urban youth.
Removing Regulatory Bottlenecks: Licensing, inspection, and compliance requirements imposed by various levels of government are an onerous burden on businesses, especially MSMEs.
Improving Data Quality: The lack of availability of timely data on the absolute number of jobs created in various sectors precludes an objective analysis of the labour market situation.
Way forward:Ā
Enhance Infrastructure Development: Need to prioritize investments in essential infrastructure such as roads, railways, and sanitation to boost economic efficiency and productivity.
Strengthen Data Collection and Analysis: The government should develop robust mechanisms for timely and accurate data collection on employment and other key economic indicators.
Mains PYQ:Ā
Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019)
From UPSC perspective, the following things are important :
Prelims level: Bordering countries of India;
Mains level: Neighbourhood First Policy;
Why in the News?
The Union Budget presented by Finance Minister Nirmala Sitharaman prioritized India-funded projects in neighbouring countries, receiving the majority of the Ministry of External Affairs’ allocation.
What are the India-funded projects in the neighbourhood?Ā
India has provided significant aid to Nepal, including funding for hydroelectric power plants like Pardi, Trishuli and Devighat.
In Afghanistan, India has provided over $3 billion in assistance and was involved in over 400 projects across 34 provinces, including major infrastructure projects like the Salma Dam and the Zaranj-Dalaram Highway.
In Myanmar, Kaladan Multi-Modal Transit Transport Projects is $484 million project aims to connect the northeastern Indian state of Mizoram to the Sittwe port in Myanmar’s Rakhine state.
In the 2024-25 budget, India allocated ā¹700 crore to Nepal (up from ā¹550 crore), ā¹245 crore to Sri Lanka (up from ā¹150 crore), and ā¹30 crore to Seychelles (up from ā¹10 crore).
Reasons for reduced focus on Bhutan
Bhutan, the largest recipient of MEA’s annual allocation, saw a dip in funding by ā¹332.02 crore to ā¹2,068.56 crore.
However, this slight reduction does not indicate a decrease in funding for projects in Bhutan, as India and Bhutan recently cleared 61 projects amounting to ā¹4,958 crore.
Importance of Bhutan for India:
Strategic Importance:Ā
Bhutan shares borders with India and China, acting as a buffer state between the two. Its strategic location is crucial for India’s security interests.
India has provided assistance to Bhutan in areas like defence, infrastructure, and communication to maintain its sovereignty and territorial integrity.
During the 2017 Doklam standoff between India and China, Bhutan allowed Indian troops to enter its territory to resist Chinese incursions.
Economic Importance:Ā
India is Bhutan’s largest trading partner, accounting for 98% of its exports and 90% of its imports.
Bhutan’s hydropower potential is a significant source of revenue, and India has been instrumental in assisting Bhutan in developing these projects.
India provides substantial economic support to Bhutan. In 2015-16, India’s budgetary support to Bhutan stood at ā¹61.60 billion, making it the largest recipient of India’s foreign aid.
Cultural Ties:Ā Bhutan and India share strong cultural ties, as both countries are predominantly Buddhist
Future scope for India’s Neighbourhood Policy (Way forward)Ā
Strengthening Bilateral Ties: Need to negotiate free trade agreements, promote investments, and collaborate on infrastructure projects to boost economic ties.
For example, India and Bangladesh have made significant progress in recent years, with the inauguration of the Maitri Setu bridge connecting Tripura to Bangladesh. The two countries are also working on the Akhaura-Agartala rail link to enhance connectivity.
Promoting Regional Cooperation: Need to collaborate on regional initiatives such as the BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicles Agreement for seamless movement of goods and people.
For instance, India has been actively involved in the BIMSTEC Coastal Shipping Agreement and the BIMSTEC Grid Interconnection project to enhance regional connectivity and energy cooperation.
Mains PYQ:Ā
Q Evaluate the economic and strategic dimensions of Indiaās Look East Policy in the context of the post-Cold War international scenario. (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Prelims level: Trend in Defence budgeting;
Mains level: Significance of indigenisation in defence sector ;
Why in the News?
Union Finance Minister Nirmala Sitharaman has allocated ā¹6.22 lakh crore for the Defence Ministry for 2024-25, matching the amount presented in the interim Budget in February.
Budgetary allocation for different sectorsĀ
Border Roads Organisation (BRO): The BRO received a significant increase in funding, with an allocation of ā¹6,500 crore, aimed at improving border infrastructure and promoting socio-economic development in border areas.
Indian Coast Guard: The allocation for the Indian Coast Guard is ā¹7,651.8 crore, which is 6% lower than the revised estimates for FY24. Of this, ā¹3,500 crore is designated for capital expenditure to enhance maritime capabilities.
Innovation in Defence: An additional ā¹400 crore has been allocated for innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme, aimed at engaging startups and MSMEs in developing indigenous defence technologies.
Overall Allocation Breakdown: The allocation for the Defence Ministry includes 27.66% for capital expenditure, 14.82% for revenue expenditure, 30.66% for pay and allowances, 22.7% for defence pensions, and 4.17% for civil organizations under the Defence Ministry.
Marginal Capex Push
Slight increase in capital expenditure: The budget reflects a marginal increase in capital expenditure, focusing on strengthening the capabilities of the armed forces and enhancing domestic procurement.
Strategic infrastructure development: The increased allocation to the BRO and the Coast Guard indicates a strategic push towards improving infrastructure in border areas and maritime security, though the overall capital push remains modest.
Focus on Indigenous solutions: The emphasis on domestic capital procurement and innovation through the iDEX scheme aims to bolster self-reliance in defence technology, fostering a more robust Indigenous defence industry.
Long-term strategic goals: The allocations are aligned with long-term strategic goals, including enhancing operational preparedness and infrastructure development in sensitive regions, although the overall growth in capital expenditure may be viewed as conservative.
Balancing defence needs with budget constraints: While the budget seeks to address critical defence needs, the slight reduction in the overall percentage of the budget allocated to defence suggests a balancing act between defence priorities and other pressing social and economic needs.
Way forward:Ā
Enhance Focus on Indigenous Production: The government should further promote indigenous production capabilities by increasing investments in research and development, and by providing incentives for domestic manufacturers to produce advanced defence technologies.
Strengthen Infrastructure Development: The need for continued emphasis on infrastructure projects, particularly in border areas, should be prioritized to enhance national security and socio-economic development, ensuring that allocations are effectively utilized for maximum impact.
From UPSC perspective, the following things are important :
Prelims level: Climate Finance Taxonomy
Why in the News?
The 2024 Union Budget, presented by Finance Minister, includes developing a taxonomy for climate finance.
The aim is to enhance the availability of capital for climate adaptation and mitigation.
What is a Climate Finance Taxonomy?
A climate finance taxonomy is a classification system that identifies which economic activities can be marketed as sustainable investments.
It serves as a guide for investors and financial institutions to direct capital towards projects that contribute to climate adaptation and mitigation, aligning with broader environmental goals.
Significance of a Climate Finance Taxonomy
Net-Zero Economy: With global temperatures rising and the adverse effects of climate change worsening, countries need to transition to a net-zero economy.
Alignment with Transition Pathways: Taxonomies help ascertain if economic activities are aligned with credible, science-based transition pathways.
Deployment of Climate Capital: They provide an impetus for the deployment of climate capital by directing investments towards sustainable projects.
Reduction of Greenwashing Risks: Taxonomies help reduce the risks of greenwashing by providing clear criteria for what constitutes a sustainable investment.
Why does India need a Green Taxonomy?
According to the IFC, India needs an estimated $10.1 trillionto achieve net-zero by 2070.
Public investments alone canāt match this goal, calling for standardization in investments.
Benefits for India
For India, a taxonomy could attract more climate funds from international sources.
Currently, green finance flows in India are falling short of the countryās needs, accounting for only around 3% of total FDI inflows, according to the Landscape of Green Finance in India 2022 report by the Climate Policy Initiative.
A lack of clarity on what constitutes sustainable activity is a significant reason for the low green finance flows. A taxonomy would address this issue.
Indiaās Climate Commitments:
India aims to achieve a net-zeroeconomyby 2070.
The country has pledged to reduce the emissions intensity of its GDP by 45% by 2030, compared to the 2005 level.
India has also committed to achieving about 50% of its cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
Steps taken by India:
In January 2021, India established a task force on sustainable finance under the Department of Economic Affairs, Ministry of Finance.
The task force’s objectives include creating a framework for sustainable finance, establishing pillars for a sustainable finance roadmap, suggesting a draft taxonomy of sustainable activities, and creating a framework of risk assessment by the financial sector.
In April 2021, the RBI joined the Central Banks and Supervisors Network for Greening the Financial System (NGFS) as a member.
RBI is also a member of a task force on climate-related financial risks set up by the Basel Committee on Banking Supervision and the International Platform on Sustainable Finance.
Potential for Green Investments in India
According to a report by the International Finance Corporation (IFC), India has a climate-smart investment potential of $3.1 trillion from 2018 to 2030.
The largest investment opportunity lies in the electric vehicle segment, with a potential of $667 billion as India aims to electrify all new vehicles by 2030.
The renewable energy sector also presents a substantial investment opportunity, estimated at $403.7 billion.
International Adoption of Taxonomies
Many countries have either started developing or have finalized their taxonomies.
Countries with developed taxonomies include South Africa, Colombia, South Korea, Thailand, Singapore, Canada, and Mexico.
The European Union has also developed its own taxonomy.
PYQ:
[2016] With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct?
The Agreement was signed by all the member countries of the UN, and it will go into effect in 2017.
The Agreement aims to limit the greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2ĀŗC or even 1.5ĀŗC above pre-industrial levels.
Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
From UPSC perspective, the following things are important :
Prelims level: Angel Tax
Why in the News?
Finance Minister announced the abolition of the angel tax, aiming to strengthen the startup ecosystem and support innovation in India.
What is Angel Investment?
An angel investor is an individual who provides financial backing to early-stage startups or entrepreneurs, typically in exchange for equity in the company.
Angel investors are typically high-net-worth individuals who invest their own personal funds, rather than investing on behalf of a firm or institution.
Features of Angel Investing: Early-stage funding, equity investment, high-risk, high-reward, active involvement,personal investment,f lexible terms and shorter investment horizon.
What is Angel Tax?Ā
Referred to as Angel Tax, this rule is described in Section 56(2)(vii)(b) of the Income Tax Act, 1961.
Essentially itās a tax on capital receipts, unique to India in the global context.
This clause was inserted by the Finance Actin 2012 to prevent laundering of black money, round-tripping via investments with a large premium into unlisted companies.
The tax covers investment in any private business entity, but only in 2016 was it applied to startups.
Why was angel tax introduced?
The complicated nature of VC fundraisingwith offshore entities, multiple limited partners and blind pools is contentious.
There has been some element of money laundering or round-tripping under guise.
Details of its levy
The Angel Tax is being levied on startups at 9% on net investments in excess of the fair market value.
For angel investors, the amount of investment that exceeds the fair market value can be claimed for a 100% tax exemption.
However, the investor must have a net worth of ā¹2 crores or an income of more than ā¹25 Lakh in the past 3 fiscal years.
Key Issues with Angel Tax
Share Valuation: The tax impacted the valuation of shares, causing complications for startups in raising funds.
Discounted Cash Flow (DCF) Method: Issues arose with the treatment of estimated figures in the DCF method, leading to disputes.
Scrutiny of Funding Sources: The scrutiny of funding sources and investor credibility added another layer of complexity for startups.
Retrospective Application: The retrospective application of the tax and its effect on the conversion of convertible instruments into equity were also significant points of dispute.
Significance for the Startup Community
Startups has long advocated for a more supportive and less restrictive environment for fundraising.
With this change, the government aims to create a more favourable atmosphere for innovation and investment in India.
PYQ:
[2014] What does venture capital mean?
(a) A short-term capital provided to industries.
(b) A long-term start-up capital provided to new entrepreneurs.
(c) Funds provided to industries at times of incurring losses.
(d) Funds provided for replacement and renovation of industries.
