June 2025
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FDI in Indian economy

India’s rise is the big story. So where’s the FDI?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Basic concepts

Mains level: India's growth prospects and decline FDI flows to India, concerns reasons and way forward

What’s the news?

  • The Indian economy grew at 7.8 percent in the first quarter of the ongoing financial year. There is a decline in FDI.

Central idea

  • Projections by experts, including the RBI and the IMF, indicate a prospective annual growth rate of 6–6.5 percent, reaffirming India’s status as a global growth powerhouse. However, beneath this optimistic narrative lies a concerning trend: foreign direct investment (FDI) in India has been steadily declining.

India’s growth prospects

  • India is likely to grow at around 6–6.5 percent over the full year.
  • Medium-term assessments, such as those by the IMF, peg growth at roughly 6 percent between 2023 and 2028.
  • This momentum positions India as a formidable player in global growth, potentially rivaling China.
  • Multinationals are increasingly eyeing India as an alternative investment destination, capitalizing on shifting geopolitical dynamics.

Declining trend in FDI in India

  • FDI Decline: FDI inflows into India have been declining. In the fiscal year 2022–23, FDI stood at $71.3 billion, which marked a 16 percent decrease compared to the previous fiscal year (2021–22). This trend of decline continued in the first four months of the current fiscal year, with a 26 percent drop in FDI inflows compared to the same period the previous year.
  • Equity Flows: A substantial portion of the decline has been in fresh equity flows. Equity flows decreased from approximately $59.6 billion in 2021–22 to around $47.6 billion in 2022–23. In the first four months of the current year, equity flows further plummeted to $13.9 billion, down from $22 billion the previous year.
  • Policy Uncertainty: One possible explanation for the decline in FDI is the presence of policy uncertainty in India. An uncertain business environment, an uneven playing field, and the fear of arbitrary changes to rules and regulations may be acting as deterrents to foreign investors.
  • Trade Agreements: India’s absence from major trading blocks, such as the RCEP agreement, and the lack of trade agreements with entities like the European Union can disadvantage India in the global manufacturing ecosystem. Comprehensive trade agreements with lower tariffs and other benefits can incentivize foreign investment.
  • Comparative Analysis: Despite rising interest rates in developed economies, countries like Vietnam and Indonesia have managed to maintain or increase their FDI inflows.

Key sectors affected by the decline in FDI

  • Automobile Industry: The decline in FDI has had an impact on the automobile industry in India. This sector plays a crucial role in the country’s manufacturing landscape and contributes significantly to both economic growth and employment.
  • Construction (Infrastructure Activities): Infrastructure development is essential for India’s economic growth. The decline in FDI may slow down construction and infrastructure activities, potentially affecting the country’s development.
  • Metallurgical Industries: Metallurgical industries, which include sectors like steel production, are also mentioned in the article as being affected by the decline in FDI. These industries are vital for various manufacturing processes and contribute to both domestic consumption and exports.

Areas that India might need to address to reverse this trend

  • FDI Decline in Multiple Sectors: The decline in FDI is not limited to a specific sector but has affected various industries, including technology, the automobile industry, construction, and metallurgical industries. This broad-based decline underscores the need for comprehensive solutions.
  • Navigating Policy Uncertainty: To attract foreign investors, India needs to provide a stable and predictable business environment, reduce regulatory uncertainty, and ensure a level playing field.
  • Global Investment Landscape: India’s FDI decline is notable when compared to countries like Vietnam and Indonesia, which have managed to maintain stable FDI inflows. This highlights the need for India to remain competitive in the global investment landscape.
  • The Trade Agreement Imperative: The absence of India from major trading blocks, such as the RCEP agreement, could be a factor contributing to the FDI decline. India may benefit from pursuing trade agreements that lower trade barriers and enhance market access.

Conclusion

  • The decline in FDI flows to India raises pertinent questions about the country’s attractiveness as an investment destination. While India’s growth story appears promising, investors seek stability, policy clarity, and access to global trade networks. Addressing these concerns and leveraging India’s potential as a China plus one option requires a comprehensive strategy to reinvigorate FDI inflows and capitalize on its growth prospects.

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BRICS Summits

Building BRICS for the future

Note4Students

From UPSC perspective, the following things are important :

Prelims level: 15th BRICS summit and key outcomes

Mains level: BRICS: Potential, Expansion and its Significance

What’s the news?

  • The recent BRICS summit held in South Africa introduced six new members to the grouping, drawing mixed reactions regarding its productivity.

“If things go right, in less than 40 years, the BRICS economies together could be larger than the G6 in U.S. dollar terms.” Goldman Sachs in 2003”

Central idea

  • The recent BRICS summit held in South Africa may not have yielded immediate tangible results, but it’s essential to view BRICS through its evolving dynamics rather than a single meeting’s outcomes.

Background: Economic Compulsion

  • BRICS, consisting of Brazil, Russia, India, China, and South Africa, emerged primarily out of economic compulsion.
  • Unlike military alliances or security coalitions, BRICS focuses on economic cooperation and mutual benefit.
  • With a combined GDP representing 36% of the global GDP and a population projected to reach 47% of the world’s total by 2050, BRICS possesses immense long-term potential.
  • Furthermore, expanding its membership could challenge the dominance of the G7 countries.

The significance of BRICS as an economic powerhouse

  • Economic Size: The BRICS, composed of Brazil, Russia, India, China, and South Africa, collectively represent 36% of the global GDP. This substantial economic size gives the group considerable influence in global economic matters.
  • Population: BRICS countries house nearly half of the world’s population, and this demographic advantage provides a significant consumer market and labor force, contributing to their economic significance.
  • Rapid Growth: Two BRICS members, China and India, are among the fastest-growing economies globally. They are expected to rank among the world’s top three economies by 2030, further enhancing the economic clout of the BRICS.
  • Investment Opportunities: BRICS nations are seen as attractive investment destinations, with governments encouraging both domestic and foreign investments. The growth prospects in these countries make them appealing to investors.
  • Infrastructure Development: BRICS countries are investing heavily in infrastructure development, including transportation, energy, and technology projects. These investments create opportunities for businesses and stimulate economic growth.
  • Collective Economic Initiatives: BRICS nations have established institutions like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), aimed at enhancing financial cooperation and stability within the group.

China and India’s Role

  • Two BRICS members, China and India, collectively account for one-third of the world’s population. Both nations are rapidly growing economies, poised to become top-three global economies by 2030.
  • Despite occasional political tensions, their economic cooperation continues to flourish. Trade between India and China is evidence that economic interests often outweigh political differences, emphasizing the pivotal role of economics in international relations.

BRICS as an alternative to an increasingly polarized world

  • Global polarization:
  • Global polarization has led to concerns about the U.S.’s aggressive stance toward China. Many countries seek alternatives, including China.
  • Within the BRICS, China is a member but not the dominant player, providing a counterbalance with democratic countries like India, South Africa, and Brazil.
  • In an increasingly interconnected world, countries are looking for alternatives to mitigate their dependence on a single superpower.
  • Dollar Dominance and Digital Currencies:
  • The U.S. dollar has long been the dominant global currency, but the rise of digital platforms presents a shift toward digital currencies. India and China are leading in this transition, advocating for increased trade and investment in their own currencies.
  • Through BRICS, they can collectively promote their currencies as alternatives to the dollar, further converging their interests.
  • Diversified opportunities:
  • The search for alternatives extends beyond BRICS to movements like the Non-Aligned Movement, which offers a new approach to global challenges.
  • As BRICS expands, it will create numerous trade, business, and investment protocols, akin to other free trade arrangements and economic blocs, providing diversified opportunities for member nations.

Africa: The Continent of the Future

  • Africa is poised for significant economic growth in the 21st century.
  • The negative image of Europe, marked by interventions and migrant treatment, has driven Africans to explore China’s development more closely.
  • African countries aspire to have the freedom to choose their investment and trade partners, and BRICS, especially India, seeks to strengthen its ties with the African Union, recognizing the continent’s potential.

Conclusion

  • BRICS may not always make headlines, but each summit contributes to building a foundation for future networks and collaborations. As Goldman Sachs foresaw in 2003, “If things go right, in less than 40 years, the BRICS economies together could be larger than the G6 in U.S. dollar terms.” The future of BRICS lies in its ability to harness its economic might for the benefit of its members and the world.

Also read:

The implications of the expansion of BRICS

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MGNREGA Scheme

Challenges with MGNREGA’s Social Audit Mechanism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MGNREGS

Mains level: Issues with MGNREGS

Central Idea

What is MGNREGS?

Enacted Under Mahatma Gandhi National Rural Employment Guarantee Act of 2005
Objective To guarantee the ‘Right to Work’ by providing employment opportunities for unskilled workers in rural areas.
Origin Proposed in 1991 by V. Narasimha Rao and later enacted in 2005.
Duration of Employment At least 100 days of employment is guaranteed to willing unskilled workers.
Enforceable Commitment The scheme ensures an enforceable commitment on the implementing machinery, which is the State Governments, providing bargaining power to the laborers.
Unemployment Allowance If employment is not provided within 15 days of receiving a job application from a prospective household, an unemployment allowance is paid to the job seekers.
Eligibility Criteria Any Indian citizen above the age of 18 years residing in rural India can apply for the MGNREGS scheme. Applicants should be willing to engage in unskilled work.
Geographical Proximity Employment is to be provided within 5 km of an applicant’s residence.
Minimum Wages Minimum wages are to be paid for the work done under MGNREGS.
Legal Entitlement Employment under MGNREGS is considered a legal entitlement.

Issue of Inadequate Fund Recovery

  • Current Recovery Rates: Statistics from the Union Rural Development Ministry for the ongoing financial year indicate that less than 14% of the amount flagged by auditors has been successfully recovered.
  • Past Years’ Performance: The recovery figures for previous financial years paint a similarly bleak picture, with poor outcomes:
    1. 2022-23: ₹86.2 crore was identified as recoverable, but only ₹18 crore (20.8%) was retrieved.
    2. 2021-22: ₹171 crore misappropriation was flagged, but only ₹26 crore (15%) was recovered.
  • Social Audit Unit Independence: Section 17 of the MGNREGA Act mandates gram sabhas to monitor work execution, with independent social audit units in each state responsible for uncovering malpractice. However, their scope is limited to flagging issues, leaving recovery actions to state governments.

Fund-Starved Audit Units

  • Seminar Insights: A recent Ministry seminar revealed a concerning scenario of underfunded social audit units lacking adequate training and personnel. These units play a crucial role in identifying cases of malpractice.
  • Funding Delay Issues: While the Union government funds these audit units to maintain their independence from state authorities, units in some states, such as Karnataka and Bihar, have faced funding delays for nearly two years.

Poor Monitoring and Recovery

  • Consistent State Trends: Over the past three years, certain states consistently report “zero number of cases” and “zero recoveries,” casting doubt on the effectiveness of monitoring efforts.
  • Examples of Poor Recovery: States like Telangana have active social audit units flagging numerous cases, yet the recovery rates remain dismal. For instance, in the ongoing financial year, auditors identified ₹6.6 crore for recovery, but only ₹2,087 has been recuperated so far.
  • Vigilance and Pressure: While the Centre’s vigilance and pressure on states to recover misappropriated funds are appreciated, there are concerns regarding states that identify multiple cases but struggle with recovery. Furthermore, states reporting no cases indicate a lack of effective monitoring.

Conclusion

  • Challenging Recovery Landscape: The MGNREGA scheme’s social audit units serve as a crucial mechanism to combat corruption, but the inadequate recovery of embezzled funds threatens their credibility.
  • Need for Adequate Resources: To make the audit process effective, it is imperative to ensure that social audit units are adequately funded, trained, and staffed.
  • Balancing Act: Balancing scrutiny with recovery actions is vital to enhance the transparency and integrity of the MGNREGA scheme, which plays a pivotal role in rural employment and development.

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International Space Agencies – Missions and Discoveries

Karman Line: The Boundary of Space

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Karman Line

Mains level: Read the attached story

karman-line

Central Idea

  • Boundaries serve a crucial purpose in scientific understanding by providing clarity and distinction to elements that might otherwise merge.
  • One such significant boundary is the Karman Line, which plays a pivotal role in delineating Earth’s atmosphere from outer space.

What is Karman Line?

  • The Karman Line is an abstract boundary positioned at an altitude of 100 kilometers above sea level.
  • Its primary function is to establish the separation between Earth’s atmosphere and the vast expanse of space.
  • Although not universally accepted by all scientists and space explorers, the majority of countries and space organizations acknowledge this demarcation.
  • It was formally established in 1960s by the Federation Aeronautique Internationale (FAI), a body responsible for record-keeping.
  • Crossing the Karman Line designates an individual as an astronaut.

Challenges to the Karman Line’s Significance

  • Nature rarely conforms to human-made boundaries.
  • Physically crossing the Karman Line does not result in substantial changes.
  • In the immediate vicinity, there is minimal difference in air pressure or composition.
  • Earth’s gravitational force remains influential, and the atmosphere persists beyond this line.

Why is the Karman Line relevant?

  • Airspace Regulation: The Karman Line primarily serves as a regulator of airspace. It represents an approximate altitude beyond which conventional aircraft cannot operate effectively. Aircraft venturing beyond this threshold require propulsion systems to counteract Earth’s gravitational pull.
  • Legal Reference: Additionally, the Karman Line acts as a legal benchmark that distinguishes airspace, which nations can claim ownership of, from the realm of outer space. Outer space is governed similarly to international waters, emphasizing the importance of this boundary in legal and governance contexts.

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Indian Army Updates

Project Udbhav: Rediscovering India’s Strategic Heritage for Modern Defense

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Project Udbhav

Mains level: Not Much

udbhav

Central Idea

  • The Indian Army has launched Project Udbhav, an initiative aimed at rediscovering the profound heritage of statecraft and strategic thinking from ancient Indian texts.

Project Udbhav

  • Project Udbhav is conducted in collaboration by Indian Army and the United Service Institution of India, a defense think-tank.
  • The primary goal is to comprehend the depths of indigenous military systems, their evolution, enduring strategies, and the strategic thought processes that have shaped the Indian subcontinent for millennia.
  • It delves into India’s rich historical narratives in the domains of statecraft and strategic thinking.
  • It encompasses indigenous military systems, historical texts, regional texts, kingdoms, thematic studies, and Kautilya Studies.

Why such move?

  • The initiative underscores the Indian Army’s recognition of India’s ancient wisdom in statecraft, strategy, diplomacy, and warfare.
  • It seeks to establish a connection between historical wisdom and contemporary needs.

Scholarly Outcomes and Ongoing Research

  • A study to compile Indian stratagems based on ancient texts has been ongoing since 2021.
  • A book listing 75 aphorisms selected from ancient texts has already been published under the initiative.
  • The first scholarly outcome is the 2022 publication titled “Paramparik Bhartiya Darshan…Ranniti aur Netriyta ke Shashwat Niyam,” which is meant to be read by all ranks of the Indian Army.
  • A recent panel discussion included a dialogue on the study of ancient texts ranging from the 4th century BCE to the 8th century CE, with a specific focus on Kautilya, Kamandaka, and the Kural.

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RBI Notifications

Story of Mahatma Gandhi’s Portrait on Indian Banknotes

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Mahatma Gandhi

Mains level: Read the attached story

gandhi

Central Idea

  • Mahatma Gandhi seems a natural choice for the face of Indian currency as the Father of the Nation.
  • This wasn’t until 1996 that his image became a permanent fixture on legal banknotes issued by the RBI, the nation’s central bank and regulatory authority for the Indian banking system.
Gandhi
1946 photograph featuring Gandhi Ji with Frederick William Pethick-Lawrence

Gandhi’s Portrait on Indian Currency

  • Photographic Source: The portrait of Gandhi on Indian banknotes is not a caricature but a cut-out from a 1946 photograph featuring him alongside British politician Lord Frederick William Pethick-Lawrence.
  • Expression Matters: This particular photograph was chosen for its ideal depiction of Gandhi’s smiling visage, and the portrait is a mirrored image of the cut-out.
  • Unknown Photographers: Interestingly, the identities of the photographer of this image and the person who selected it remain unknown.

Currency Design Process

  • RBI’s Responsibility: The RBI’s Department of Currency Management is tasked with designing rupee notes, subject to approval from the central bank and the Union government.
  • Regulatory Framework: Section 25 of the RBI Act, 1934, mandates that the design, form, and material of banknotes must be approved by the central government after considering the central board’s recommendations.

Gandhi’s Debut on Indian Currency

  • 1969 Commemoration: Gandhi made his first appearance on Indian currency in 1969 through a special series issued to commemorate his 100th birth anniversary. These notes, featuring Gandhi alongside the Sevagram Ashram, bore the signature of RBI governor LK Jha.
  • 1987 Inclusion: In October 1987, a series of Rs 500 currency notes featuring Gandhi was introduced.

The Transition to Independent India’s Banknotes

  • Post-Independence Currency: Initially, after India gained independence in August 1947, the RBI continued to issue notes from the colonial era that depicted King George VI.
  • Symbol Selection: The government of India introduced new 1-rupee notes in 1949, replacing King George with a representation of the Lion Capital of Ashoka Pillar at Sarnath.
  • Design Continuity: The subsequent release of banknotes in 1950, in denominations of Rs 2, 5, 10, and 100, featured the Lion Capital watermark, maintaining continuity with earlier designs.

Gandhi’s Permanence on Banknotes

  • Security Concerns in the 1990s: By the 1990s, the RBI recognized the need for enhanced security features on currency notes due to advancements in reprographic techniques. A human face was deemed less susceptible to forgery than inanimate objects.
  • Gandhi’s Enduring Appeal: Mahatma Gandhi’s national significance made him the ideal choice. In 1996, the RBI introduced a new ‘Mahatma Gandhi Series’ of banknotes, replacing the previous Ashoka Pillar notes and incorporating advanced security features.
  • Continuity in 2016: The ‘Mahatma Gandhi New Series’ of banknotes, introduced in 2016, continued to feature Gandhi’s portrait, with the addition of the Swachh Bharat Abhiyan logo and enhanced security elements.

Other Suggestions for Currency Faces

  • Varied Proposals: Over the years, there have been calls to feature different personalities on banknotes apart from Gandhi.
  • Lord Ganesha and Goddess Lakshmi: In October 2022, Delhi Chief Minister Arvind Kejriwal appealed to the Prime Minister and the Union government to include images of Lord Ganesha and goddess Lakshmi on currency notes.
  • Previous Proposals: Suggestions in the past included Noble Laureate Rabindranath Tagore and former President APJ Abdul Kalam. However, the RBI and Indian authorities have consistently upheld Gandhi’s representation, considering him the most fitting embodiment of India’s ethos.

Conclusion

  • Gandhi’s Enduring Legacy: Mahatma Gandhi’s presence on Indian currency notes stands as a testament to his indelible impact on the nation’s history and values.
  • Challenges to Change: While various proposals have emerged over the years, the symbolism and significance of Gandhi on banknotes remain unwavering, reflective of his towering stature in India’s collective consciousness.

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Aadhaar Card Issues

Concerns of using Aadhaar in Welfare Schemes

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Privacy issues related to Aadhaar

Aadhaar

Central Idea

  • Moody’s Investor Service released a report titled ‘Decentralised Finance and Digital Assets,’ advocating for decentralized digital identity systems over centralised biometric systems like India’s Aadhaar.
  • The report raises concerns about security and privacy vulnerabilities associated with Aadhaar (being managed by Govt of India) and questions its effectiveness.

India’s Response to Moody’s Report

  • In response to Moody’s report, the Indian government strongly defended Aadhaar, asserting that it is “the most trusted digital ID in the world.”
  • The government highlighted Aadhaar’s integration with the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) database, emphasizing that workers can receive payments without biometric authentication.

Aadhaar: Rationale and Objectives

  • Unique Identification: Aadhaar is a unique identification number provided to all Indian residents by the Unique Identification Authority of India (UIDAI). It collects demographic details, biometric fingerprints, and iris scans during enrolment, aiming to create a unique identity for residents.
  • Fighting Corruption: Aadhaar’s primary objectives include curbing corruption in accessing welfare programs by eliminating “ghost” and “fake” individuals who fraudulently claim benefits.

Aadhaar’s Role in Welfare Programs

  • Ration Distribution: Aadhaar is used to authenticate individuals accessing rations under the Public Distribution System, ensuring that beneficiaries receive their entitled portions.
  • Government-to-Citizen Transfers: The government employs Aadhaar for various cash transfer programs, claiming substantial savings by eliminating fraudulent beneficiaries.

Aadhaar in Cash Withdrawals

  • Authentication Process: To enable payments through Aadhaar for MGNREGA, three steps are involved: linking Aadhaar to job cards, linking Aadhaar to bank accounts, and linking Aadhaar correctly with the National Payments Corporation of India for payment processing.
  • AePS Platform: Aadhaar-enabled Payment System (AePS) allows individuals to withdraw money from Aadhaar-linked bank accounts using biometric authentication.

Concerns Surrounding Aadhaar

  • Quantity Fraud: Critics argue that Aadhaar fails to address issues like quantity fraud, where beneficiaries receive less than their entitled share. This type of corruption remains prevalent, with Aadhaar unable to detect or prevent it.
  • Authentication Challenges: Rural areas face authentication challenges due to unreliable internet, fading fingerprints, and inadequate phone connectivity for OTPs. Vulnerable groups, such as older women and people with disabilities, face exclusion.
  • Lack of Data Transparency: Information regarding authentication attempts and failures is not publicly available, hindering transparency.
  • Payment Failures: Errors at any stage of Aadhaar-based payments can lead to payment failures. Mismatches in data between job cards and Aadhaar databases can result in authentication failures.
  • Misdirection of Payments: Misdirected payments through Aadhaar are difficult to detect and resolve, creating issues when Aadhaar numbers are linked to the wrong bank accounts.
  • Financial Exclusion: Critics argue that Aadhaar-based authentication requirements can lead to financial exclusion for certain groups.

Security Concerns

  • AePS Accountability: Banking correspondents using AePS operate without accountability frameworks, leading to potential misuse and unauthorized access to bank accounts.
  • Multiple Authentications: Some banking correspondents ask individuals to authenticate multiple times, providing them access to individuals’ bank accounts without consent.
  • Fraud and Scams: Several reports highlight instances of money withdrawal and enrollment in government programs without individuals’ knowledge through AePS.

Current Impasse

  • Resistance to Mandatory Aadhaar: The government’s efforts to make Aadhaar-based payments mandatory in MGNREGA have faced resistance from workers and field officials.
  • Deletion of Job Cards: Reports indicate that the job cards of active rural workers have been deleted on grounds of being “ghosts,” raising concerns about data accuracy.
  • Apprehensions: Critics express apprehensions based on their experience with Aadhaar in welfare programs, emphasizing the need for pilots and evidence-based decision-making.

Conclusion

  • The debate between centralized biometric systems like Aadhaar and decentralized digital identity solutions remains ongoing, with concerns regarding security, inclusivity, and transparency at the forefront of discussions.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Duarte Agostinho Case: A Youth-led Climate Lawsuit

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Duarte Agostinho Case

Mains level: Climate Justice and Reparations

Duarte Agostinho Case

Central Idea

  • On September 27, a historic legal battle in the climate action movement commenced at the European Court of Human Rights in Strasbourg, France.
  • This courtroom showdown featured 32 European governments, including the UK, Russia, and Turkey, facing off against six young individuals from Portugal, aged 11 to 24.

Why discuss this?

  • Youth-led climate lawsuits are reshaping climate litigation.
  • These lawsuits assert that uncontrolled carbon emissions infringe on fundamental rights, threaten the well-being of young generations.
  • This highlight the centrality of climate science in combating misinformation and denialism.

Understanding the Duarte Agostinho Case

[A] Origins of the Lawsuit:

  • The Duarte Agostinho and Others v. Portugal and Others case was initiated in September 2020.
  • It was in response to the devastating wildfires in Portugal’s Leiria region in 2017, resulting in 66 casualties and the loss of 20,000 hectares of forests.
  • This legal action highlights the urgency of adhering to the Paris Agreement’s target of limiting global warming to below 1.5°C.

[B] Concerns raised

  • The Portuguese youths assert that European nations have failed to meet climate emissions goals, exceeding global carbon budgets compatible with the Paris Agreement’s objectives.
  • Scientific evidence will be presented, demonstrating that if current emission trends persist, global temperatures will rise by 3°C during the plaintiffs’ lifetimes.
  • Such actions are alleged to breach fundamental rights protected under the European Convention on Human Rights, including the right to life, freedom from inhuman or degrading treatment, privacy, family life, and freedom from discrimination.

Lawsuit’s Demands

  • Rapid Emission Reduction: As these 32 countries contributed to climate catastrophes and threatened young people’s futures, the lawsuit contends that these nations must urgently intensify emissions reductions. The recommended measures include curbing fossil fuel production and addressing global supply chain sustainability.
  • Emissions Reduction Targets: The European Scientific Advisory Board on Climate Change (ESABCC) suggested that countries should aim for emissions reductions of 75% below 1990 levels, a more ambitious target than the EU’s current 55%. The lawsuit argues that European countries have overstated their carbon budgets, emphasizing the need for greater reductions.

Climate Crisis Impact on Human Rights

  • UNICEF characterizes the climate crisis as a “child rights crisis” due to unhindered carbon emissions and extreme weather jeopardizing access to education, health, nutrition, and the future.
  • Research links air pollution to adverse birth outcomes and increased risks of cardiovascular and respiratory diseases.
  • Heatwaves exacerbate mental health issues, ultimately affecting academic performance and school attendance.

Government Responses and Challenges

  • Cause and Effect Denial: Many countries have dismissed any direct relationship between climate change and its impact on human health. Greece, for instance, argued that climate change effects do not directly affect human life or health, despite experiencing massive wildfires.
  • Portrayal as Future Fears: Governments like Portugal and Ireland have downplayed climate change concerns as “future fears,” asserting that there is no immediate risk to lives.
  • Policy Reversals: Some nations, like the U.K., have showcased proactive climate policies, such as a 2030 ban on the sale of new petrol and diesel cars. However, these policies have been reversed, raising concerns about policy consistency and legality.

Conclusion

  • The Duarte Agostinho case represents a pivotal moment in the climate action movement, with young activists challenging their governments to protect their future against the looming climate crisis.
  • This legal battle underscores the critical intersection of climate change and human rights, shaping a path toward increased accountability and transformative climate governance.

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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Purchasing Managers’ Index (PMI) reaches 31-month high

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Purchasing Managers' Index (PMI)

Mains level: NA

pmi manager

Central Idea

  • Surge in PMI to 31-month high: The S&P Global India Manufacturing PMI soared to 58.7 in May, the highest level in 31 months.

 

Service Sector

The service sector, also known as the tertiary sector, includes a wide range of economic activities that are focused on providing intangible goods and services to customers.

Some examples of activities that fall under the service sector include:

  1. Hospitality and tourism: This includes activities such as hotels, restaurants, travel agencies, and tour operators.
  2. Retail and wholesale trade: This includes businesses that buy and sell goods, such as supermarkets, department stores, and online retailers.
  3. Financial services: This includes banks, insurance companies, and investment firms.
  4. Professional and business services: This includes activities such as legal services, accounting, consulting, and advertising.
  5. Information and communication technology: This includes activities such as software development, telecommunications, and data processing.
  6. Healthcare and social assistance: This includes activities such as hospitals, clinics, nursing homes, and social services.
  7. Education and training: This includes activities such as schools, colleges, universities, and vocational training.
  8. Transportation and logistics: This includes activities such as shipping, warehousing, and distribution.

Purchasing Managers’ Index (PMI)

  • PMI is an indicator of business activity — both in the manufacturing and services sectors.
  • The S&P Global India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies.
  • It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
  • It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.

How is the PMI derived?

  • The PMI is derived from a series of qualitative questions.
  • Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.

How does one read the PMI?

  • A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
  • Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
  • If the figure is higher than the previous month’s then the economy is expanding at a faster rate. If it is lower than the previous month then it is growing at a lower rate.

Key insights of recent trend

  • Fastest factory order growth: Factory orders rose at the fastest pace since January 2021.
  • Unprecedented accumulation of inputs: Producers accumulated inputs at an unprecedented pace due to lower costs.
  • Improvement in operating conditions: The index reflects a substantial improvement in operating conditions, with a significant increase from 57.2 in April.
  • Strong growth in order books and exports: Order books grew for the 23rd consecutive month, supported by a rise in export deals.
  • Highest output levels in 28 months: Output levels reached the highest point in 28 months.
  • Increased hiring: Pressure on capacities led firms to increase hiring, reaching a six-month high.

Reasons behind this rise

  • Rise in selling prices: Producers raised selling prices at a solid and quicker rate in May, the highest in a year.
  • Mild input costs but adjusted charges: Input costs remained historically mild, but producers adjusted their charges due to sustained cost increases and a supportive demand environment.
  • Improved business confidence: Business confidence about growth improved, reaching a five-month high.
  • Public faith in economy: Factors such as publicity and demand resilience contributed to the optimistic outlook.

 

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Zika Virus Outbreak

Autoimmune Diseases and the Promise of Inverse Vaccines

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Autoimmune diseases and the Concept of Inverse Vaccine

Mains level: Autoimmune diseases, Potential Applications of Inverse Vaccine and

What’s the news?

  • Breakthrough Inverse vaccines offer hope for treating autoimmune diseases.

Central idea

  • In the quest to combat autoimmune diseases, scientists are exploring a groundbreaking approach: inverse vaccines. While still in the developmental stage and yet to be tested on humans, this novel concept holds the potential to revolutionize the treatment of autoimmune diseases.

What are autoimmune diseases?

  • Autoimmune diseases are a group of medical conditions in which the body’s immune system, which is designed to protect against foreign invaders like bacteria and viruses, mistakenly attacks its own healthy cells and tissues.
  • Normally, the immune system can differentiate between the body’s own cells (self) and foreign substances (non-self), but in autoimmune diseases, this ability is disrupted, leading to immune responses directed against the body’s own tissues.

Key Facts

  • There are more than 80 known autoimmune diseases, and they can affect virtually any part of the body, including the skin, joints, muscles, organs, and various systems like the nervous system or endocrine system.
  • The exact cause of autoimmune diseases is often complex and not fully understood, but a combination of genetic, environmental, and hormonal factors is believed to contribute to their development.
  • These diseases can vary in severity and may have periods of remission and flare-ups.
  • Treatment typically involves managing symptoms, suppressing the immune response, and, in some cases, using medications to control inflammation or modulate the immune system.
  • Autoimmune diseases can be chronic and require ongoing medical management.
  • Some common autoimmune diseases include Type 1 Diabetes, Psoriasis, Rheumatoid Arthritis, Systemic Lupus, Multiple Sclerosis (MS), Hashimoto’s Thyroiditis.

The Concept of Inverse Vaccine

  • Conventional vaccines work by training the immune system to recognize and combat infectious agents. For instance, COVID-19 vaccines teach the immune system to identify the spike protein of the virus and neutralize it.
  • In contrast, inverse vaccines do the opposite. They prevent the immune system from attacking healthy cells by retraining it to spare them.
  • Inverse vaccines add a do not attack signal to healthy cells.

Table 1: Traditional Vaccines vs Inverse Vaccines

Aspect Traditional Vaccines Inverse Vaccines
Primary Purpose To stimulate the immune system to recognize and fight specific pathogens (e.g., viruses or bacteria) To prevent the immune system from attacking healthy cells and tissues in autoimmune diseases
Components Contain weakened or inactivated pathogens, proteins, or fragments derived from pathogens May contain markers or signals to modify the immune response and prevent attacks on healthy cells
Immune Response Elicits an immune response targeting specific pathogens, leading to the production of antibodies and memory cells Modifies or suppresses the immune response in cases of autoimmune diseases, reducing attacks on healthy tissues
Application Used to prevent infections by training the immune system to recognize and respond to specific threats Investigated for the treatment of autoimmune diseases by retraining the immune system to tolerate healthy cells
Protection Mechanism Provides protection against specific pathogens by building immunity Preserves the body’s healthy cells by preventing autoimmune attacks
Examples Vaccines for diseases like measles, polio, and influenza Experimental vaccines for autoimmune diseases like multiple sclerosis and rheumatoid arthritis
Status Widely used and established in preventive medicine Still in experimental stages, undergoing research and development

Potential Applications of Inverse Vaccines

  • Multiple Sclerosis (MS): Inverse vaccines may offer a new approach to managing MS by preventing immune cells from attacking cells in the brain and spinal cord.
  • Type I Diabetes: These vaccines could potentially help protect insulin-producing cells in the pancreas from immune attacks, offering a potential treatment for Type 1 diabetes.
  • Celiac Disease: Early safety trials are underway to test the use of inverse vaccines in celiac disease, a condition associated with gluten intolerance. These vaccines may help individuals respond better to gluten and manage the disease more effectively.
  • Allergic Asthma: Inverse vaccines are under investigation for managing allergic asthma by modifying the immune response to allergens, potentially reducing asthma symptoms.
  • Food Allergies: There is potential for inverse vaccines to improve tolerance to allergenic foods, making it safer for individuals with food allergies to consume these foods.
  • Chronic Inflammatory Diseases: Inverse vaccines may find applications in managing chronic inflammatory conditions like Crohn’s disease, offering a targeted approach to modulating the immune response.
  • Transplantation: Researchers are exploring the potential of inverse vaccines in organ transplantation to reduce the risk of organ rejection. These vaccines may help the recipient’s immune system tolerate the transplanted organ more effectively.

Adaptability to Different Diseases

  • The concept of an inverse vaccine is not new. It was pioneered by Stanford researcher Lawrence Steinman in the early 2000s.
  • Recent research led by Jeffrey Hubbell has opened the door to creating tailored inverse vaccines for various autoimmune diseases.
  • This adaptability allows for precision in addressing specific conditions, enhancing their effectiveness.

Progress and Future Prospects

  • Current Stage: Inverse vaccines are still in the experimental phase and have not yet been tested in human trials, as mentioned in the article.
  • Safety Trials: Early safety trials are underway, including trials related to their use in celiac disease and Phase 1 safety trials for multiple sclerosis (MS).
  • Potential Transformative Impact: Early indications of success, particularly in treating celiac disease, offer hope for transformative treatments.
  • Development in the Field: Researchers anticipate more developments in the field of inverse vaccines in the next five to ten years.
  • Adjustable Vaccines: The researchers are working on creating adjustable inverse vaccines tailored to different autoimmune diseases. This adaptability is expected to enhance their effectiveness.
  • Broader Applications: While the primary focus is on autoimmune diseases, researchers are also exploring potential applications of inverse vaccines in managing food allergies and allergic asthma.

Conclusion

  • Inverse vaccines represent a promising avenue for treating autoimmune diseases without compromising the overall immune response. As research continues, the prospect of bringing inverse vaccines from the lab to the clinic is an exciting possibility on the horizon.

Also read:

Tuberculosis (TB) Should No Longer Exists in the 21st Century: India can lead the way

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Tuberculosis Elimination Strategy

An ageing India needs age-responsive TB care

Note4Students

From UPSC perspective, the following things are important :

Prelims level: TB and elimination strategy

Mains level: India's TB Prevalence, Challenges and responsibilities and measures,

What’s the news?

  • TB, which affects over 25 lakh Indians every year and kills at least 1,000 every day, As India is on the cusp of a demographic shift, with the elderly population set to comprise a substantial portion of society, it is imperative to invest in the health of our elderly population and pay attention to their unique needs.

Central idea

  • Advances in healthcare and increased life expectancy are propelling India’s demographic transition, with the elderly projected to constitute 12.5% of the population by 2030, up from 9% in 2011. This underscores the urgent need for age-responsive healthcare systems to address the complexities of TB care among the elderly, aligning opportunity with responsibility.

What is tuberculosis (TB)?

  • TB is an infectious disease caused by the bacterium Mycobacterium tuberculosis.
  • It primarily affects the lungs but can also affect other parts of the body, such as the kidneys, spine, and brain.
  • TB is transmitted through the air when an infected individual coughs, sneezes, or speaks, releasing tiny droplets containing the bacteria. When inhaled by others, these droplets can lead to infection.

The Burden of TB among the Elderly

  • Recent findings from India’s National TB Prevalence Survey in 2021 reveal a concerning trend: the prevalence of TB among individuals aged 55 and above stands at 588 per one lakh population, significantly higher than the national average of 316.
  • This alarming disparity necessitates a dedicated focus on TB among the elderly and the formulation of age-specific TB guidelines.

Challenges faced by elderly TB patients

  • Delayed Diagnosis: TB symptoms, including cough, fatigue, and weight loss, are often misinterpreted as signs of old age or other illnesses. Consequently, TB diagnoses among the elderly are frequently delayed or overlooked.
  • Comorbidities: Many elderly TB patients have multiple comorbidities, especially diabetes, which complicates TB management. This leads to a higher pill count and an increased likelihood of side effects, affecting treatment adherence and outcomes.
  • Access to Healthcare: Elderly individuals, particularly those in rural and hilly areas, struggle to access healthcare facilities due to mobility challenges. This can lead to delays in seeking medical care.
  • Limited Information: Older individuals may have restricted access to reliable health information, as their social networks tend to shrink with age. This lack of information hampers their ability to recognize TB symptoms and seek timely medical attention.
  • Economic Dependence: Most individuals over the age of 60 are retired and financially dependent on savings or family. While there are some social welfare schemes for the elderly, they often have limitations and may not provide adequate financial support.
  • Stigma and Mental Health: TB-related stigma is a concern among the elderly, contributing to social isolation. Many elderly TB patients experience loneliness, anxiety, and a sense of purposelessness, negatively impacting their mental health.

Strategies to address these challenges and provide elder-friendly TB care

  • Holistic Care Models: Transition from disease-specific care to holistic models that reduce the need for elderly patients to interact with multiple healthcare providers and facilities.
  • Health Professional Training: Build the capacity of healthcare professionals at all levels to better understand TB in the elderly and manage multiple comorbidities effectively.
  • Improved Case-Finding: Enhance case-finding mechanisms through effective sputum collection and transportation systems, mobile diagnostic vans, and active case-finding at geriatric OPDs and residential homes.
  • Technical Protocols: Develop technical and operational protocols that guide the diagnosis and treatment of TB in the elderly, including sample extraction, comorbidity assessment, and drug dosage adjustments.
  • Socio-Economic Support: Design and implement support protocols in consultation with elderly TB patients, including community care models, doorstep medicine delivery, peer support, counseling, and assistance with accessing social support schemes.
  • Data Collection and Analysis: Ensure rigorous gender and age-disaggregated data collection and analysis to identify TB trends among the elderly, with a dedicated age category in all TB reports.
  • Strengthen Collaboration: Foster collaboration within the healthcare system to build elderly-friendly care systems effectively.
  • Research Agenda: Promote research focused on TB in the elderly, exploring state-specific trends, substance use, drug resistance, co-morbidity patterns, TB preventive therapy uptake, and intersectionality with other equity aspects.

Conclusion

  • On this International Day of Older Persons, India must reaffirm its commitment to the well-being of its elderly citizens. By implementing age-responsive TB care models, strengthening healthcare systems, and conducting focused research, we can pave the way for a healthier, more inclusive future for our aging population.

Also read:

India’s diabetes epidemic is making its widespread TB problem worse

 

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Aadhaar Card Issues

The concerns of using Aadhaar in welfare

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Aadhaar

Mains level: Aadhaar, rationale behind and Concerns with its Use in welfare

What’s the news?

  • On September 21, Moody’s Investor Service released a report advocating for decentralized digital identity systems over centralized biometric systems like India’s Aadhaar

Central idea

  • India has reacted strongly to the report released by Moody’s Investor Service, which advocates for decentralized digital identity systems over central biometric systems like Aadhaar. The government has refuted the claims made in the report and defended the Aadhaar system as the most trusted digital ID in the world.

What is Aadhaar?

  • Aadhaar is a 12-digit unique identification number issued to all Indian residents by the Unique Identification Authority of India (UIDAI).
  • It is based on biometric and demographic data, including fingerprints and iris scans, and serves as a standardized and secure means of identity verification.

The Rationale for Aadhaar

  • Unique Identification: Aadhaar assigns a unique ID to every Indian resident, ensuring distinct and verifiable identities.
  • Corruption Reduction: Aadhaar combats welfare fraud by verifying recipients, reducing ghost and fake beneficiaries.
  • Efficient Services: Simplifies access to government services, enhancing efficiency and accuracy.
  • Financial Inclusion: Links Aadhaar to bank accounts, promoting banking services in underserved areas.
  • Digital Transformation: Enables secure online authentication for e-services, e-commerce, and payments.
  • Data Security: Emphasizes data security and privacy measures, including encryption and authentication protocols.
  • Integration: Supports government database integration, enhancing governance and policy implementation.
  • Welfare Savings: Eliminates duplicates, leading to substantial savings and improved subsidy targeting.

Role in cash withdrawals

  • Aadhaar and Job Card Linking: First, a worker’s Aadhaar number must be linked to their job card, which is associated with the employment program, such as MGNREGA.
  • Aadhaar and Bank Account Linking: Second, the worker’s Aadhaar must be linked to their bank account. This linkage ensures that the Aadhaar number serves as the unique identifier for transactions related to this account.
  • Mapping with NPCI: The Aadhaar number must be correctly linked through the worker’s bank branch with the National Payments Corporation of India (NPCI). The NPCI acts as a clearing house for Aadhaar-based payments.
  • Cash Deposits: Once these linkages are established, any cash transferred by the government for benefits or payments gets deposited directly into the individual’s last Aadhaar-linked bank account.
  • Cash Withdrawals: Individuals can then withdraw money from their Aadhaar-linked bank account through private banking kiosks or by using private banking correspondents’ point of sale (PoS) machines. These transactions involve biometric authentication to confirm the individual’s identity.

Concerns with Aadhaar’s Use

  • Ineffectiveness Against Quantity Fraud: Aadhaar does not address quantity fraud, a prevalent form of corruption in ration distribution, where beneficiaries receive less than their entitled amount. The system focuses on identity verification but lacks mechanisms to prevent this type of fraud.
  • Authentication Challenges: In rural areas, authentication can be challenging due to unreliable internet, fading fingerprints, and limited phone connectivity for one-time passwords (OTPs). Multiple trips to ration shops may be necessary, leading to delays and uncertainty.
  • Lack of Transparency: The lack of public data on authentication attempts and failures raises transparency and accountability issues. The Comptroller and Auditor General of India (CAG) highlighted the absence of a system to analyze authentication errors.
  • Payment Failures: Any error in the Aadhaar-based payment process can result in payment failures. Issues like spelling discrepancies between job cards and Aadhaar databases can lead to authentication failures.
  • Coercion and Misdirection: Workers are often coerced into linking their Aadhaar with bank accounts without their consent, leading to wage diversion to unknown accounts. Misdirected payments, such as redirection to Airtel wallets, are challenging to detect and resolve.
  • Savings Claims: Claims of government savings through Aadhaar implementation have been questioned by researchers like Jean Drèze, Reetika Khera, Rahul Lahoti, and Anand Venkatnarayanan. They argue that the government’s assertions may be misleading and not supported by data.
  • Delays in Wage Payments: Despite government claims of reduced delays in wage payments under MGNREGA due to Aadhaar, recent research using extensive wage transaction data found no statistical evidence of these claims. Insufficient funds were suggested as a primary reason for payment delays

Security Concerns with Aadhaar

  • Lack of Accountability: Banking correspondents operating the Aadhaar-enabled Payment System (AePS) often lack a robust accountability framework, raising the risk of misuse or unauthorized access to individuals’ bank accounts.
  • Unauthorized Biometric Authentication: Some banking correspondents may ask individuals to undergo multiple biometric authentications, potentially granting them unauthorized access to individuals’ bank accounts.
  • Misuse of Aadhaar-Enabled Transactions: Reports and studies have highlighted cases where individuals’ money was withdrawn without consent through AePS, or they were enrolled in government insurance programs against their will.
  • Security Breaches: Instances like the ₹10 crore scholarship scam in Jharkhand in 2020 exemplify security breaches and fraudulent activities associated with Aadhaar-based systems.

Way forward

  • Data Security and Privacy: Strengthen data security measures to protect Aadhaar information. Ensure strict enforcement of data protection regulations and privacy standards.
  • Authentication Reliability: Improve the reliability of biometric authentication, especially in areas with limited connectivity. Develop backup authentication methods.
  • Process Streamlining: Simplify the process of linking Aadhaar with bank accounts and other services to reduce errors and misdirected payments. Provide clear information to individuals about the status and usage of their Aadhaar-linked accounts.
  • Addressing Corruption: Monitor and evaluate the impact of Aadhaar on reducing corruption in welfare programs. Implement additional measures to tackle specific forms of corruption, such as quantity fraud.
  • Independent Research and Evaluation: Support independent research to assess Aadhaar’s effectiveness and impact in various government programs. Use evidence-based findings to make informed policy decisions and improvements.
  • Accountability for Misuse: Establish mechanisms for holding individuals or organizations accountable for any misuse of Aadhaar data or fraudulent activities.

Conclusion

  • Moody’s report has sparked a debate about the effectiveness and security of Aadhaar. While it has brought some benefits in streamlining welfare programs, it falls short in addressing key issues and poses significant security risks. The government must address these concerns and work towards a more secure and efficient digital identity system, considering decentralized alternatives as suggested by Moody’s.

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Nobel and other Prizes

In news: SASTRA Ramanujan Prize

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SASTRA Ramanujan Prize

Mains level: Not Much

Central Idea

  • Ruixiang Zhang, an Assistant Professor at the University of California, Berkeley, USA, is set to receive the prestigious 2023 SASTRA Ramanujan Prize for his exceptional contributions to the field of mathematics.

SASTRA Ramanujan Prize

Establishment Recognizes outstanding contributions to mathematics
Inspiration Named in honor of mathematician Srinivasa Ramanujan
Awarded by Shanmugha Arts, Science, Technology & Research Academy (SASTRA), Kumbakonam, India
Objective Acknowledges and encourages exceptional achievements in mathematics
Recipient Criteria Awarded to mathematicians under 32 for significant contributions to mathematics
Selection Process Based on mathematical work, research contributions, and impact
Previous Recipients Annual recognition of mathematicians in various mathematical branches
International Recognition Prominent recognition within the mathematics community
Award Presentation Presented at an award ceremony, includes a cash prize of $10,000
Encouragement for Young Math Encourages young mathematicians to pursue research
Committee Composed of eminent mathematicians and experts from various foreign universities
Significance Promotes mathematical research and honors exceptional achievements
Prestigious Award Highly regarded in the field of mathematics

 

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Electoral Reforms In India

Electoral Bond Sale: Impact on Political Funding

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Electoral Bond Scheme

Mains level: Not Much

electoral bond

Central Idea

  • The government announced the 28th tranche of Electoral Bond sales, scheduled to take place over a ten-day span at authorized branches of the State Bank of India.

Why discuss Electoral Bonds?

  • Impact on Political Funding: The announcement of the upcoming electoral bond sale has implications for political funding in India. As part of the government’s efforts to reform the political financing system, electoral bonds aim to bring transparency and accountability to campaign financing.
  • Upcoming Elections: The timing of the sale window aligns with the upcoming assembly elections in some States, highlighting the significance of electoral bonds in shaping the financial landscape of political campaigns.
  • Continued Scrutiny: The use and impact of electoral bonds continue to be a subject of debate and scrutiny, with stakeholders assessing their role in enhancing or altering the political funding ecosystem in the country.

About Electoral Bond Scheme

Definition Banking instruments for political party donations with donor anonymity.
Purchase Method Available to Indian citizens and Indian-incorporated companies from select State Bank of India branches. Can be bought digitally or via cheque.
Donation Process Purchasers can donate these bonds to eligible political parties of their choice.
Denominations Available in multiples of ₹1,000, ₹10,000, ₹10 lakh, and ₹1 crore.
KYC Requirements Purchasers must fulfill existing KYC norms and pay from a bank account.
Lifespan of Bonds Bonds have a 15-day life to prevent them from becoming a parallel currency.
Identity Disclosure Donors contributing less than ₹20,000 need not provide identity details like PAN.
Redemption Electoral Bonds can be encashed only by eligible political parties through an Authorized Bank.
Eligibility of Parties Only parties meeting specific criteria, including securing at least 1% of votes in the last General Election, can receive Electoral Bonds.
Restrictions Lifted Foreign and Indian companies can now donate without disclosing contributions as per the Companies Act.
Objective To enhance transparency in political funding and ensure funds collected by political parties are accounted or clean money.

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Cyber Security – CERTs, Policy, etc

Dawn of Passkeys: A Password-Free Future

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Passkeys, Password

Mains level: Not Much

passkey

Central Idea

  • In 1961, MIT computer science professor Fernando Corbato introduced the world to digital passwords, an innovation designed for research purposes. Little did he know the profound societal impact his creation would eventually wield.

Why discuss this?

  • Passwords have become nearly synonymous with cybersecurity in the 21st century, albeit with an unsavory connotation.
  • Despite efforts to promote robust password practices, “password” and “123456” continue to dominate the list of common passwords, underscoring the pervasive vulnerability of most accounts.

Passkeys: Need for Change

  • Ineffectiveness of Passwords: The prevailing authentication method, based on passwords, falls short in ensuring adequate security.
  • Big Tech Solution: In response to this predicament, major tech companies propose a solution – passkeys.

Understanding Passkeys

  • Web Authentication Standard: Passkeys are a security feature built on the WebAuthentication (WebAuthn) standard.
  • Public-Key Cryptography: Passkeys employ public-key cryptography, a potent technique employing a public key (server-side) and a private key (user-side).
  • Authentication Process: When users log in, a challenge is sent to their device, which utilizes the private key to solve it and respond. The server then validates the response with the public key, all without storing any secrets, enhancing security.

Getting Started with Passkeys

  • Wide Compatibility: Leading tech companies, including Microsoft, Google, and Apple, have collaborated to make passkeys accessible to most recent phones and PCs.
  • Operating Systems: Passkeys are available on iOS 16+, iPadOS 16+, macOS Ventura, Android 9+, Windows 10, and Windows 11.
  • Web Browsers: Passkeys are supported on popular browsers like Chrome, Edge, Safari, and Firefox.

Creating and Using Passkeys

  • Account Requirement: Users need an account with a provider supporting passkeys, such as Microsoft, Google, or Apple.
  • Activation Process: To enable passkeys, sign in to a compatible app or website, activate the passkey option, and obtain a unique passkey linked to your account and device.
  • Usage: Passkeys can be used with biometrics (e.g., Touch ID, Face ID), QR codes, or device verification.

Future of Passwords

  • Inevitable Evolution: While passkeys offer notable advantages over traditional passwords in terms of security and user-friendliness, they still face challenges related to compatibility and user adoption.
  • Industry Push: Notably, Google, Apple, and Microsoft are driving the passkey agenda strongly, suggesting that passwords may eventually become obsolete.

Conclusion

  • A Security Evolution: The emergence of passkeys as an alternative to traditional passwords marks a significant shift in the realm of cybersecurity.
  • Ongoing Transition: As passkeys gain momentum and garner support from tech giants, they may gradually pave the way for a password-free future, promising enhanced security and user convenience in the digital realm.

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Temple entry for women : Gender Equality v/s Religious Freedom

Debate over Temple Priest Appointments in Tamil Nadu

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Freedom of Religion

Mains level: Temple Priest Appointments issue in TN

Central Idea

  • The Supreme Court has issued an order for maintaining the current state of affairs regarding the appointment of archakas (priests) in Agamic temples in Tamil Nadu.
  • The reforms introduced by the ruling government, aiming to change the hereditary system of appointing archakas, have faced opposition from the association of archakas.

Why discuss this?

  • Such appointments violated religious rights protected under the Constitution, emphasizing the need for rigorous training under experienced Gurus to comprehend the significant religious practices of the Agamas.

Government and Judicial Actions

The debate over temple priest appointments in Tamil Nadu has evolved over the years, with several key actions shaping its course:

  • 1971 Amendment: In 1971, the DMK government, led by Chief Minister M Karunanidhi, amended the Tamil Nadu Hindu Religious & Charitable Endowment (HR & CE) Act. This amendment abolished hereditary priest appointments and allowed individuals from all castes to become priests.
  • 2006 Declaration: In 2006, the government declared all qualified individuals eligible to be priests. However, this move was challenged in the Supreme Court, which, in 2015, emphasized the importance of adhering to Agama Sastras while safeguarding constitutional rights.
  • Gender Equality: In a landmark ruling in 2009, the Madras High Court favored a woman priest from Usilampatti, Madurai, who faced opposition from male priests regarding her inherited right to conduct puja at a temple. The court underscored the need to eliminate gender bias from temples to fulfill constitutional mandates.
  • Inclusivity: The Supreme Court’s rulings in the Guruvayoor Devaswom Case (2004) and the N Adithayan case (2002) upheld the appointment of non-believers and non-Brahmins as temple priests, emphasizing inclusivity and non-discrimination.

Complex Divine Contradictions

Despite the legal framework and the abolition of hereditary priest appointments, the Agama tradition continues to influence temple administrations in Tamil Nadu. This persistence has given rise to debates and challenges:

  • Regional Variations: Similar debates have emerged in Kerala, where questions have been raised about why only Hindu temples are under government control, while churches and mosques are not. Tamil Nadu has also witnessed campaigns for temple “reclamation.”
  • Historical Shift: During the colonial era, British officials’ involvement in Hindu rituals raised concerns among Christian establishments in India. This led to the transfer of temple control to local communities. In 1951, the HR & CE Act limited government involvement to administration and finance.
  • Friction between Tradition and Modernity: The ongoing tensions between traditional practices and modern principles are exemplified by debates over hereditary priest rights and resistance to the entry of women into the Sabarimala temple. These issues defy simple solutions.

What about Religious Freedom?

  • Complexity of Hinduism: A prominent temple priest in Chennai argued that rules applied to other faiths may not directly apply to Hinduism. Hinduism is characterized by its diversity of traditions, contradictions, and numerous deities. Temples are perceived as centers of “soul energy” with unique purposes and practices.
  • Role of Empathy: The priest emphasized the importance of empathy when dealing with matters of faith. Logic and reasoning cannot always apply to beliefs deeply rooted in tradition and spirituality. He highlighted the significance of experiential concepts, dedication, and the unique nature of temple administration.
  • Agama Sastra Expertise: The priest pointed out that learning Agama Sastra in a year does not equip an individual to manage a temple. Temple administration is a combination of experiential concepts, ideas, and dedication, distinct from running a company. Agama Sastra is not a simple manual but a profound tradition.

Conclusion

  • The debate surrounding temple priest appointments in Tamil Nadu remains complex, reflecting the ongoing struggle to balance tradition with modern principles.
  • It highlights the challenges in applying uniform rules to diverse faiths and underscores the profound significance of temples in Hinduism.

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Foreign Policy Watch: India-Maldives

Maldives Presidential Elections: Geopolitical Implications

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Maldives Presidential Elections

maldives

Central Idea

  • The Maldives’ presidential election run-off is set to “safeguard the country’s independence and sovereignty” amidst strong ties with India.
  • In addition to the presidential election, Maldivians will vote in a referendum next month to decide whether to switch to a parliamentary system of governance.

Key Points and Geopolitical Significance

[A] Electoral System

  • French-Style System: The Maldivian electoral system resembles France’s, requiring a candidate to secure over 50% of votes for victory. A runoff occurs if no candidate surpasses this threshold in the first round, with the top two candidates competing.

[B] History of Maldivian Presidency

  • Executive Presidency: The Maldives adopted the Executive Presidency in 1968. Initially, it operated as a single-party system until 2008 when political reforms led to a multi-party system.
  • Abdul Gayoom’s Era: Maumoon Abdul Gayoom served as President for 30 years, from 1978 to 2008, during which he faced political protests and thwarted a coup attempt with India’s assistance in 1988.
  • Political Reforms: In 2004, Gayoom initiated political reforms, leading to the registration of political parties in 2005 and the adoption of a new Constitution in 2008, enabling presidential elections every five years.

India’s Relations with Maldives

  • Mixed Relations: India’s engagement with Maldivian politics has seen fluctuations. President Solih’s government has had the most favourable relations with India thus far.
  • Gayoom and Nasheed Eras: India closely worked with Abdul Gayoom for three decades. When Nasheed assumed power in 2008, India supported his government initially. However, Nasheed later leaned toward China, cancelling a major infrastructure project with India in 2012.
  • Yameen’s Pro-China Stance: Abdulla Yameen, who took office in 2013, pursued a pro-China foreign policy, including joining China’s Belt and Road Initiative. India’s reluctance to provide loans due to human rights concerns led Yameen to turn to Beijing.
  • Solih’s Election: President Solih’s victory in the 2018 elections was a relief for India, signifying a shift in bilateral relations. PM Modi attended Solih’s swearing-in ceremony.
  • Stronger Ties: India provided rapid assistance, including vaccines, during the COVID-19 pandemic, further strengthening relations. Bilateral projects in Maldives have multiplied, and defense cooperation has expanded, with India training Maldivian security personnel and providing military equipment.

Current Election Landscape

  • Solih’s Challengers: President Solih is facing competition from Opposition candidate Mohamed Muizzu, who emerged as the consensus candidate after former President Abdulla Yameen’s disqualification.
  • Proxy for Yameen: Muizzu is seen as a proxy for Yameen and has made statements raising concerns for India. He has threatened to terminate agreements with foreign countries and withdraw Indian troops stationed in the Maldives.
  • Low Turnout: The election has seen a lower voter turnout compared to previous ones, with 79% participation in the first round. This low turnout is a concern in the context of Maldives’ democratic transition.

Geopolitical Ramifications

  • China’s Influence: Under President Abdulla Yameen’s rule from 2013 to 2017, the Maldives aligned with China, participating in the Belt and Road Initiative (i.e. String of Pearls) and receiving substantial loans, including funding for major infrastructure projects.
  • India’s Concern: India has a keen interest in maintaining influence in its “backyard” in the Indian Ocean and keeping Chinese influence at bay. India has invested heavily in Maldivian infrastructure and deepened security cooperation, which has raised concerns of establishing a strategic military presence.
  • Western Nations’ Watchful Eye: Western nations, including the US, UK, and Australia, are closely monitoring the election as part of their efforts to counter Chinese influence in the Indo-Pacific region. The opening of embassies by these countries in the Maldives underscores its strategic significance.

Conclusion

  • Geopolitical Implications: The Maldivian presidential runoff and the country’s relationship with India and China hold significant geopolitical implications. The outcome will shape the nation’s foreign policy direction.
  • India’s Interests: India’s interests in Maldives include defense cooperation, economic partnerships, and maintaining regional stability. The election’s result will be closely monitored to assess its impact on these interests and the future trajectory of Maldives’ foreign relations.

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Waste Management – SWM Rules, EWM Rules, etc

Status of Dumpsite Remediation across India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Dumpsite Remediation, Methane Pollution

Mains level: Solid Waste Management

Dumpsite Remediation

Central Idea

  • Dumpsite remediation in India holds immense significance due to its profound impact on the environment, public health, and overall quality of life.
  • These unregulated dumpsites release harmful gases, pollute air and water, and pose severe health risks to nearby communities.

Dumpsite Remediation: Government Initiatives and Progress

  • Govt Commitment: The Indian government aims to remediate all dumpsites in the country by 2025 under the Swachh Bharat Mission (SBM) 2.0.
  • Progress Overview: Over 82.7 million tonnes of waste have been remediated, reclaiming 3,477 acres of land.
  • State Progress: Mizoram has fully remediated its waste, while states like Chandigarh, Haryana, Uttar Pradesh, and Gujarat have addressed 50-60% of their legacy waste.

Challenges and Complexities

  • Topographical Challenges: States with mountainous terrains like Assam, Nagaland, Manipur, Sikkim, Meghalaya, Ladakh, and Jammu & Kashmir face difficulties in waste transport and utilization.
  • Economic Viability: Some states struggle to find economically viable disposal options for combustible fractions and fine soil-like material.
  • Waste Composition: Around 8% of legacy waste comprises combustible fractions.
  • Limited Co-Processing Units: India has 54 co-processing units, with only 13 states having operational units.

Benefits of Recovered Material

  • Construction and Filling Solutions: Repurposed fine soil-like material can be used in road construction and to stabilize flood-prone areas.
  • Improving Engineering Properties: Fine soil enhances roadbed engineering.
  • Elevation and Stabilization: Fine fraction elevates and stabilizes low-lying areas.

Another aspect: GHGs Emissions from Waste

Methane Emission Sources

  • Wastewater’s High Contribution: Wastewater treatment is a major source of methane emissions.
  • Organic Matter Decomposition: Methane is produced during organic matter decomposition in wastewater and solid waste disposal.
  • Solid Waste Disposal: Methane is generated in landfills, open dumps, and waste disposal sites.

Overall Methane Emissions in India

  • India’s Methane Emissions: In 2016, India emitted 409 million tonnes of CO2 equivalent methane.
  • Sector-Wise Breakdown: Agriculture contributed 73.96%, waste 14.46%, energy 10.62%, and industrial processes 0.96%.
  • Key Contributors: Open dumpsites and landfills are significant sources.

Lost Opportunities and Climate Impact

  • Persistent Methane Emissions: Even capped landfills emit methane due to biochemical reactions.
  • Untapped Energy Resource: Methane emissions represent missed energy opportunities.
  • Biogas Potential: 1 TPD of biodegradable waste can produce 80-100 cubic meters of biogas.
  • Environmental Harm: Disposing of biodegradable waste in landfills releases methane, a climate pollutant.

Harnessing Methane for a Sustainable Future

  • Bio-Methanation: Implementing bio-methanation processes can capture methane for various applications.
  • Beneficial Applications: Captured methane can be converted into bio-CNG, electricity, or other fuels.
  • Material Suitability: Recovered material must meet engineering and environmental standards.
  • Regulatory Compliance: Compliance with local regulations is essential.

Conclusion

  • Navigating Waste Remediation: India faces challenges and opportunities in dumpsite remediation. Addressing topographical barriers, ensuring economic viability, and maximizing material utilization are critical.
  • A Missed Opportunity: Dumpsites emit methane, a valuable energy resource. Proper waste management can mitigate climate impacts and unlock economic benefits.

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Modern Indian History-Events and Personalities

Gandhi and Ambedkar Dynamic

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Poona Pact and other related facts

Mains level: Gandhi and Ambedkar dynamic: critical roles in shaping India's social landscape.

What’s the news?

  • Prominent figures Mahatma Gandhi and Dr. B.R. Ambedkar’s historic collaboration on the Poona Pact, addressing caste and social injustice, remains relevant in contemporary India’s ongoing debates.

Central idea

  • Gandhi is indispensable. You may love him or hate him, but you can’t ignore him. As world leaders gathered for the G-20 summit, Prime Minister Narendra Modi emphasized the timeless importance of Gandhi’s ideals in shaping a harmonious global future. Gandhi’s persona transcended ideologies, making him a creed unto himself.

Gandhi’s Profound Persona

  • Gandhi’s persona transcended ideologies, becoming a creed in itself. To truly appreciate his legacy, we must approach it with an open mind, free from preconceived biases. His extensive literary contributions, spanning over a hundred volumes, offer insights into his complex worldview and philosophy.

Gandhi’s Humility and Self-Reflection

  • One admirable aspect of Gandhi was his recognition of his own fallibility.
  • He encouraged readers to choose the interpretation of his writings that resonated with them, demonstrating courage and humility.
  • His continual self-growth was evident, emphasizing his commitment to his principles.

The Gandhi-Ambedkar Dynamic

  • October holds significance for both Gandhi and Dr. B.R. Ambedkar, known for their opposing views on social issues like varna and caste.
  • Despite their differences, they reached a historic agreement known as the Poona Pact, which played a pivotal role in shaping India’s social landscape.

The Poona Pact: An Agreement for Inclusivity

  • Historic Agreement: The Poona Pact was a significant development in Indian history. It marked an agreement reached between Gandhi and Ambedkar in Pune, India, during a period of intense discussions and debates about political representation for the depressed classes (Dalits), who were formerly known as untouchables.
  • Background: Before the Poona Pact, there was a demand for separate electorates for Dalits, a move advocated by Dr. B.R. Ambedkar. This demand led to divisions and tensions within Indian society.
  • Gandhi’s Fast Unto Death: Mahatma Gandhi, opposed to the idea of separate electorates, embarked on a fast unto death in protest. This fast put immense pressure on the political leaders and created a crisis situation.
  • Outcome: The Poona Pact was the result of negotiations between Gandhi and Ambedkar. It led to the abandonment of the demand for separate electorates for Dalits. Instead, it introduced the concept of reserved seats (quotas) for the depressed classes within the general electorate.
  • Significance: The Poona Pact aimed to secure political representation for Dalits while maintaining the unity of the Hindu community. It was seen as a compromise that prevented further division within Indian society.
  • Legacy: The Poona Pact’s legacy is still felt in modern India. It introduced the system of reserved seats for Dalits in provincial legislatures and other political bodies. This system, known as scheduled castes, continues to ensure political representation for Dalits in India.

Unity Amidst Differences

  • A Shared Goal:
  • Though Gandhi and Ambedkar held divergent philosophical views on the foundation of caste, they both agreed on the need to eradicate untouchability and uplift the depressed classes.
  • Gandhi advocated for treating untouchables on par with caste Hindus, while Ambedkar sought to eliminate the varna system entirely.
  • Gandhi’s Support for the Varna System: Gandhi, inspired by Swami Dayananda Saraswati’s teachings, supported the Vedic varna system, where an individual’s qualities, actions, and nature determined their varna. He considered it a beneficent law, separate from untouchability.
  • Ambedkar’s Rejection of Varna Dharma: Ambedkar vehemently opposed the Varna system, viewing it as the root of the problem. He challenged the idea that caste and untouchability were distinct issues, arguing that they were inseparable.

Ongoing Debate

  • The debates surrounding caste, varna, and Sanatan Dharma (the traditional Hindu way of life) are still actively discussed in India.
  • Despite the Poona Pact and other social reforms, India grapples with issues related to caste discrimination and untouchability.
  • The ongoing debate reflects the complexity of India’s social fabric, with differing perspectives on how to address these issues.

Conclusion

  • Gandhi and Ambedkar, despite their differences, played critical roles in shaping India’s social landscape. Their historic collaboration in the Poona Pact demonstrated a shared commitment to inclusivity and justice. The debates they ignited still resonate in contemporary Indian society, underscoring the enduring relevance of their ideas and ideals.

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WTO and India

Global dispute settlement, India and appellate review

Note4Students

From UPSC perspective, the following things are important :

Prelims level: WTO and Appellate Review Mechanisms

Mains level: WTO's Dispute Settlement Crisis, ISDS and India's stand on Appellate Review Mechanisms

What’s the news?

  • The recently concluded G-20 Declaration, among its many commitments, reiterated the need to pursue reform of the World Trade Organization (WTO).

Central idea

  • Reforming international dispute settlement mechanisms is imperative for global trade and investment stability. The G-20 Declaration emphasizes WTO reform by 2024, yet uncertainties persist in the dispute resolution process, given ongoing US opposition.

WTO’s Dispute Settlement System: A Crisis Since 2019

  • The WTO’s dispute settlement system, known for its two-tier panel cum appellate body structure, has been in turmoil since 2019 when the United States blocked the appointment of appellate body members.
  • Despite being hailed as the crown jewel of the WTO, this system is currently hamstrung, jeopardizing its ability to issue coherent and predictable rulings.
  • The G-20’s commitment to improving this system is commendable, but uncertainties persist, especially due to the U.S.’s reluctance towards an appellate review process.

What is Investor-State Dispute Settlement (ISDS)?

  • ISDS is a mechanism used to resolve disputes between foreign investors and host countries’ governments in the context of international investment agreements.
  • It is a ubiquitous component of bilateral investment treaties (BITs).
  • The ISDS today is the principal means to settle international investment law disputes.
  • As of January 1, 2023, 1,257 ISDS cases have been initiated. India has had a chequered history with ISDS, with five adverse awards: four in favor and several pending claims.

The Role of Appellate Review in International Trade Law

  • An appellate review process is essential at the international level, just as it is in national courts. It acts as a crucial check on the interpretation and application of the law, ensuring consistency.
  • The absence of such a mechanism can lead to inconsistencies and incoherent decisions, as seen in international investment law through ISDS.

UNCITRAL’s Working Group III

  • Discussions are ongoing at the United Nations Commission on International Trade Law (UNCITRAL) regarding ISDS reforms and the creation of an appellate review mechanism.
  • Key issues include the form of the mechanism, review standards, timeframes, and decision effects. These discussions hold the promise of addressing the current deficiencies in ISDS.

Benefits of an appellate review mechanism

  • Error Correction: Appellate review corrects legal mistakes in WTO and ISDS decisions, ensuring the accurate application of rules.
  • Consistency and Confidence: It maintains a uniform interpretation of trade and investment laws, promoting stability and predictability. A functional appellate body boosts trust in the WTO, encouraging nations to resolve trade disputes peacefully.
  • Harmonization and Stability: ISDS appellate review aligns diverse treaty interpretations, reducing legal disparities. It also fosters investor-state predictability, attracts investments, and promotes economic growth.
  • Reducing Uncertainty: Appellate review clarifies investment treaty rights and obligations, reducing ambiguity.
  • Credibility: Its presence enhances ISDS credibility, making it more appealing for states and investors.
  • Rule-Based Order: Supporting appellate review aligns with India’s aim for a rule-based global system, fostering international cooperation.

India’s Position on Appellate Review Mechanisms

  • Support for Appellate Review in ISDS:
  • Although India has not officially articulated its stance, there is a presumption that India is supportive of the idea of an appellate review mechanism in ISDS.
  • This presumption is based on the presence of Article 29 in India’s model Bilateral Investment Treaty (BIT), which appears to endorse the concept of appellate review.
  • Alignment with India’s interests:
  • India is concerned about the inconsistency and incoherence that currently characterize the ISDS system.
  • Supporting an appellate review mechanism is seen as a means to address these concerns and promote greater stability and predictability in international investment law.
  • Relevance to Ongoing Negotiations:
  • India will likely need to take a formal position on this issue during ongoing investment treaty negotiations with the European Union (EU).
  • The EU is advocating for the establishment of an appellate review mechanism for investment disputes, and India’s stance will be crucial in shaping the outcome of these negotiations.
  • Quest for a Rule-Based Global Order:
  • India’s broader objective is to establish a rule-based global order in international trade and investment. Supporting an appellate review mechanism, both in ISDS and within the World Trade Organization (WTO), is seen as a way to achieve this goal.
  • Moreover, India should also advocate for the restoration of the WTO appellate body to ensure a fully functioning dispute settlement system at the WTO.

Conclusion

  • The G-20’s commitment to revitalizing the WTO’s dispute settlement system and the ongoing discussions on establishing an appellate review mechanism in ISDS are steps in the right direction. India, as a proponent of a rule-based global order, should actively support these reforms to ensure greater confidence among states and investors in international trade and investment law.

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