Note4Students
From UPSC perspective, the following things are important :
Prelims level: Operation Ajay
Mains level: Not Much
Central Idea
- India has initiated Operation Ajay to evacuate its citizens who wish to return from conflict-ridden Israel.
- External Affairs Minister S. Jaishankar announced this operation, emphasizing the safety and well-being of Indian nationals abroad.
Operation Ajay
- Evacuation Plan: Special chartered flights and other arrangements are being organized for the return of Indian citizens from Israel.
- Second Evacuation: This marks the second evacuation operation this year, following Operation Kaveri, which brought back several thousand Indian citizens from strife-torn Sudan in April-May.
Significance: Indian Jewish Community
- The Indian Jewish community, with an ancestry spanning over 2000 years in India, has a unique history.
- India has been a welcoming home to them, where they thrived without encountering anti-Semitism, making it a distinct place on the global map.
- However, the landscape changed with the independence of India in 1947 and the establishment of the state of Israel in 1948.
- This transformation marked the beginning of a new chapter in India-Israel relations, leading to the migration of Indian Jews to their religious homeland.
Diverse Indian Jewish Groups
Indian Jews can be categorized into four main sects, each with its own historical origins and cultural traditions:
- Cochin Jews: Tracing their arrival to India back to 50 CE, they primarily settled in the southern region.
- Bene Israel: The largest group among Indian Jews, they settled in and around Maharashtra and Konkan.
- Baghdadi Jews: This group, part of the most recent wave of Jewish migration, established communities in port cities like Calcutta, Bombay, and Rangoon.
- Bnei Menashe: Settled in the North East, they are another significant segment of Indian Jews.
Complex Reception in Israel
The migration of Indian Jews to Israel was not without challenges. Israeli society struggled to embrace them due to several factors:
- Internal Divisions: The four Indian Jewish groups had substantial differences and disagreements among themselves. These internal divisions, combined with bias from Jews of European origin, complicated the reception of Indian Jews, especially in the initial years of migration.
- Discrimination: The Bene Israel, primarily from Maharashtra, faced significant discrimination upon their arrival in Israel. Reports in the 1950s highlighted instances of racism and unequal treatment, including job and housing discrimination.
- Differing Motivations: Indian Jews’ motivations for migrating varied. While the Cochin Jews were seen as driven by religious reasons, the Bene Israel were often perceived as seeking better economic prospects, leading to different treatment based on perceived motives.
- Economic Disparities: The economic differences among the four groups fueled animosity. Some attributed the Cochin Jews’ messianic aspirations to poverty, while the Baghdadi Jews considered the Bene Israel as lacking proper religious traditions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Critical Minerals
Mains level: Read the attached story
Central Idea
- The Centre has approved royalty rates of 3% each for lithium and niobium and 1% for Rare Earth Elements (REEs).
- These changes enable competitive royalty rates for these strategically vital minerals (critical minerals) and open the doors to private sector participation through concession auctions.
What are Critical Minerals?
- Critical minerals are elements that are crucial to modern-day technologies and are at risk of supply chain disruptions.
- These minerals are used in making mobile phones, computers, batteries, electric vehicles, and green technologies like solar panels and wind turbines.
- Minerals such as antimony, cobalt, gallium, graphite, lithium, nickel, niobium, and strontium are among the 22 assessed to be critical for India.
- Many of these are required to meet the manufacturing needs of green technologies, high-tech equipment, aviation, and national defence.
Implications of the Amendment
- Alignment with Global Benchmarks: The amendments, involving specifying new royalty rates, bring India’s royalty rates in line with global standards. This is crucial to attract bidders’ in future mineral auctions.
- Competitive Royalty Rates: The Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957, previously set a 12% royalty rate for unspecified minerals, which was significantly higher than international benchmarks. The revised rates are 3% for lithium and niobium, and 1% for REEs, based on price benchmarks, enhancing the attractiveness of mining in India.
- Domestic Mining Promotion: Lower royalty rates and commercial exploitation opportunities aim to encourage domestic mining, reduce imports, and stimulate related industries like electric vehicles (EVs) and energy storage solutions.
- Energy Transition Commitment: Access to critical minerals is integral to India’s commitment to energy transition and achieving net-zero emissions by 2070, aligning with global environmental goals.
Economic significance of the move
(A) Lithium
- Import Dependence: India currently imports all its required lithium. The government’s push for lithium mining extends beyond Jammu & Kashmir to explore lithium extraction from Rajasthan and Gujarat’s brine pools, as well as Odisha and Chhattisgarh’s mica belts.
- Economic Offensive: This initiative is part of India’s economic strategy to reduce dependency on China for lithium-ion energy storage products, given China’s dominant position in the market.
- EV Growth: With EVs on the cusp of disruption, securing a lithium supply chain is strategically vital. The global lithium battery market has seen significant growth in recent years.
(B) Rare Earth Elements
- Global Supply Challenges: Rare earth elements, primarily sourced from or processed in China, pose challenges in the EV supply chain. Securing supplies can be difficult, and China’s dominance has raised concerns.
- Usage in Motors: Rare earth elements are crucial in EV motors, particularly permanent magnet motors. Elements like neodymium, terbium, and dysprosium are used in magnets for generating a constant motor flux, enhancing motor efficiency.
- Environmental Concerns: Mining rare earth elements often involves environmentally damaging open-pit operations, raising environmental and ecological concerns.
(C) Niobium for Industry
- Corrosion Resistance: Niobium, known for its resistance to corrosion due to a surface oxide layer, is used in various industries. It strengthens alloys, particularly stainless steel, making them ideal for applications in aerospace, construction, and pipelines.
- Superconducting Properties: Niobium’s superconducting properties find applications in magnets for particle accelerators and MRI scanners.
- Global Sources: The main source of niobium is the mineral columbite, found in several countries, including Canada, Brazil, Australia, and Nigeria.
Conclusion
- India’s decision to amend mining laws for strategic minerals is a significant step toward aligning with global standards, promoting domestic mining, and securing supplies for emerging industries like EVs and energy storage.
- It underscores India’s commitment to sustainable energy transition and reduced import dependency while addressing environmental concerns in mining rare earth elements.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MRTP Act
Mains level: Abortion vs. Mothers Bodily Rights
Central Idea
- A Division Bench of two judges of the Supreme Court grappled with divergent views regarding the abortion of a 26-week pregnancy and the government’s stance to protect the “unborn child.”
- The judges, unable to reach a consensus, opted to refer the case to the CJI to convene a three-judge Bench for further deliberation.
Woman’s Plight for Abortion
- A mother of two with her youngest child just a one-year-old infant, she asserted her desire for a medically induced abortion due to her mental health condition and her inability to care for a third child.
- Her lawyer stressed the court should prioritize the mother’s well-being.
- He emphasized the threat to her privacy and dignity and her conscious decision to not proceed with the pregnancy.
Government’s Stance
- Legal Argument: The Additional Solicitor General contended that the woman did not possess an “absolute right of autonomy” to exercise her reproductive rights in a manner that would compromise the rights of the unborn child.
- MTP Act of 2021: Reference was made to the Medical Termination of Pregnancy (Amendment) Act of 2021, which extended the abortion deadline to 24 weeks in “exceptional circumstances,” primarily to save the mother’s life or in the case of fatal foetal deformity.
Legal Debate
- Bodily Autonomy vs. Foetal Rights: The core of the debate centred on whether, once a viable baby exists, the woman’s right to bodily autonomy or integrity should yield to the Act, curbing her fundamental right to choose.
- Court’s Earlier Decision: On October 9, the Bench had initially permitted the medical termination in line with the woman’s wishes, following a report from an All India Institute of Medical Sciences (AIIMS) medical board.
Government’s Reversal
- Government’s Appeal: Subsequently, the Union government filed an application, citing an expert doctor’s opinion received on October 10, which advocated for giving the child a chance to survive.
- State’s Responsibility: The argument was that a categorical medical opinion had emerged, offering hope for the child’s survival, and placing a responsibility on the state.
Judicial Opinions
- Justice Kohli’s Stance: One judge aligned with the government’s position that the woman should not be allowed to terminate the pregnancy.
- Justice Nagarathna’s Dissent: In contrast, the other judge dissented, asserting that the woman’s decision should be respected, considering her socio-economic circumstances, mental health, and the young age of her second child.
Conclusion
- The Supreme Court’s divided opinion on this intricate abortion case underscores the challenging balance between a woman’s right to make decisions about her body and the state’s interest in protecting the unborn.
- As the case proceeds to a three-judge Bench, it raises broader questions about the legal and ethical complexities surrounding reproductive rights and foetal interests in India’s legal landscape.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Semi-conductors
Mains level: semi-conductor industry, potential, initiatives challenges and way forward
What’s the news?
- Moody’s report has brought to light a critical factor that could disrupt India’s semiconductor aspirations: climate change.
Central idea
- In December 2021, the Indian government launched the Semicon India Programme, allocating a substantial budget of Rs 76,000 crore for the development of a domestic semiconductor manufacturing ecosystem. While this initiative aimed to position India as a prominent player in the global semiconductor market, it faces multifaceted challenges, as highlighted in a recent report by Moody’s, a global rating firm.
Challenges highlighted in the Moody’s report
- Climate Change Risks: The report points out that climate change can lead to damage to manufacturing facilities, disruptions in supply chains, and substantial financial losses in the semiconductor industry, potentially deterring investments.
- Environmental Footprint: The semiconductor industry’s substantial environmental footprint is a challenge, with chip fabrication plants consuming large amounts of water, generating hazardous waste, and contributing significantly to greenhouse gas emissions.
- Competitive Landscape: India’s emerging semiconductor sector faces competition from established global players who are already taking steps towards sustainability, making it essential for Indian semiconductor units to adopt sustainable practices to remain competitive.
The Significance of Semiconductors
- Technological Advancement: Semiconductors are the bedrock of technological progress, enabling innovations across industries. They underpin the development of advanced electronic devices, leading to continuous improvements in efficiency, performance, and functionality.
- Information Processing: Semiconductors power the microprocessors and memory chips found in computers, smartphones, and digital gadgets. This processing capacity drives data analysis, artificial intelligence, and complex computations.
- Consumer Electronics: Nearly all consumer electronic devices, from televisions to household appliances, incorporate semiconductors. These components enhance functionality, making these devices more user-friendly and efficient.
- Clean Energy: Semiconductors are vital for renewable energy sources. They enable efficient energy conversion and management in solar panels, wind turbines, and energy storage systems, promoting clean and sustainable energy solutions.
- Healthcare Revolution: In the healthcare sector, semiconductors are crucial for medical imaging, diagnostic equipment, and wearable health monitoring devices. They empower healthcare professionals with accurate data for improved patient care.
- National Security: Semiconductors are indispensable for defense and security applications, including radar systems, encryption technology, and surveillance equipment. They ensure the reliability and security of vital systems.
- Space Exploration: Semiconductors are vital for space missions and satellite technology. They enable data collection, communication with Earth, and the operation of instruments, advancing humanity’s understanding of the cosmos.
- Environmental Monitoring: Semiconductors are used in environmental monitoring systems, aiding efforts to assess and mitigate environmental issues such as air and water quality, climate change, and pollution.
Industry Initiatives Toward Sustainability
- Taiwan’s Semiconductor Manufacturing Company (TSMC): TSMC, one of the world’s largest chip manufacturers and a key supplier to tech giants like Apple, has taken a significant step by pledging to achieve net-zero emissions by 2050. This commitment reflects a proactive approach to reducing the environmental impact of semiconductor manufacturing.
- Samsung and Intel: The article also notes that companies like Samsung and Intel, along with several European semiconductor firms, have reportedly started conducting greenhouse gas (GHG) audits. These audits are essential for understanding and quantifying the industry’s carbon footprint, with the goal of identifying areas for improvement.
India’s Greenfield Advantage
- Clean Slate: India’s semiconductor industry has the advantage of starting from a relatively clean slate. Unlike established semiconductor hubs that may have legacy issues, India’s greenfield centers can begin their operations with a fresh perspective and without the burden of historical environmental challenges.
- Learning Opportunity: These greenfield centers in India can learn from the experiences of semiconductor companies in other parts of the world. They have the opportunity to incorporate global best practices right from the outset, making sustainability and environmental responsibility integral to their operations.
- Smart City Programme: Many of India’s semiconductor hubs are planned as part of the government’s Smart City Programme. This planning approach involves creating modern, sustainable urban environments. As a result, these townships are more likely to incorporate eco-friendly and climate-resilient infrastructure and drainage systems.
- Preventing Disruptions: The greenfield centers should prioritize strategies to prevent disruptions during extreme rainfall events. This proactive approach is important, considering the potential impacts of climate change, which can lead to increased rainfall and extreme weather events.
Way forward
- Learning from Global Best Practices: By learning from the experiences of established global players and incorporating best practices from the outset, Indian semiconductor units can enhance their sustainability quotient.
- Regional Considerations: The government’s vision of establishing Dholera in Ahmedabad as a chip-making hub should be attuned to regional climate factors. Climate change is expected to exacerbate heat-related stresses in the region, making it crucial to factor in climate-resilient infrastructure.
- Government Intervention: In light of Moody’s report, it is evident that the government must play a pivotal role in supporting the semiconductor industry. This includes investment in climate-resilient infrastructure, providing guidance to the industry, and encouraging semiconductor units to adopt sustainable practices.
Conclusion
- The Semicon India Programme holds the potential to propel India into the ranks of global semiconductor manufacturing leaders. However, this ambitious endeavor faces significant challenges, with climate change posing a formidable threat to its success. By taking proactive measures, India can navigate the treacherous waters of climate change and move closer to realizing its dream of becoming a chip-manufacturing hub.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: World Heart Day
Mains level: World Heart Day, Rising burden of Cardio vascular diseases, efforts and challenges
What’s the news?
- World Heart Day, observed globally on September 29, serves as a crucial reminder of the escalating threat posed by cardiovascular diseases (CVD) and the need to promote heart-healthy lifestyles.
Central idea
- World Heart Day, an annual event, initiated by the World Heart Federation in collaboration with the World Health Organization (WHO) in 2000, seeks to heighten awareness, engage communities, and advocate for universal access to CVD prevention, detection, and treatment. Tackling the silent epidemic of cardiovascular diseases in India demands a multi-pronged approach.
Public Awareness Efforts on CVD
- On World Heart Day, several English-language national dailies published full-page advertorials, which are advertisements designed to resemble written articles. These advertorials aimed to raise awareness about cardiovascular diseases (CVD) and promote heart-healthy lifestyles.
- The content of these advertorials seemed to provide information about CVD rather than directly promoting a product.
- Notably, there was limited involvement or a meaningful campaign by public health agencies like the Union Ministry of Health in raising awareness about CVD on this occasion.
- These advertorials were sponsored by the diagnostics, devices, and pharmaceutical industries, indicating a partnership between these industries and media outlets for public awareness efforts.
- Additionally, clinicians from high-end corporate tertiary care hospitals contributed by providing lifestyle modification advisories as part of the public awareness campaign
Alarming Data on Hypertension
- Data from the National Family Health Survey-5 (2019–2021) and the 2017-18 National NCD Monitoring Survey (NNMS) in India reveals concerning statistics about hypertension.
- The NFHS-5 data shows that 18.3 percent of the country’s population has hypertension, while the NNMS reports a higher rate of 28.5 percent among individuals aged 18-69.
- These percentages translate to significant numbers, given India’s large population.
- Both surveys highlight low levels of awareness, treatment, and control of hypertension.
Treatment Gaps and Disparities
- The NNMS data indicates that only 28 percent of those with hypertension were aware of it.
- Among those aware, 52 percent were receiving treatment, and a smaller percentage had their blood pressure under control.
- Disparities exist based on factors such as education, income, and geographic location, with better access to healthcare services in south India.
- Vulnerable groups, including males, illiterates, those with lower income, rural residents, smokers, and alcohol users, were less likely to be part of the treatment cascades.
Efforts in India
- India launched the National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases, and Stroke (NPCDCS) in 2010, expanding its implementation.
- The program primarily focuses on screening and treatment.
- India is committed to the principles of primary healthcare and Universal Health Coverage (UHC), as outlined in the 2018 Astana Declaration.
Challenges
- Challenges include inadequate awareness, limited healthcare access in various regions, and disparities in healthcare access and outcomes. More resources are needed for primary healthcare.
- Contemporary approaches to managing CVD heavily emphasize risk factors, particularly lifestyle-related ones like diet, physical activity, smoking, and obesity.
- Epigenetic modifications may emerge as a consequence of a lifetime of disadvantage, structural inequalities, and discrimination, thereby influencing future generations.
- There is a challenge in retaining rural health workers.
The Need for a Holistic Approach
- Contemporary approaches to managing cardiovascular diseases (CVD) emphasize lifestyle risk factors.
- The WHO’s Commission on Social Determinants of Health highlights that these risk factors often result from systemic compromises rather than individual choices.
- The Commission emphasizes addressing socioeconomic factors that affect health across an individual’s lifespan and calls for equity and social justice in healthcare.
Conclusion
- As the WHO rightly asserts, Reducing health inequities is… an ethical imperative. Social injustice is killing people on a grand scale. World Heart Day serves as a stark reminder that the battle against CVD must continue with renewed vigor and a holistic perspective.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UNSC
Mains level: UNSC, need for reforms, obstacles, India's case
What’s the news?
- The issue of fundamental reforms at the United Nations (UN) has resurfaced at the ongoing General Assembly session.
Central idea
- President Recep Tayyip Erdoğan of Türkiye has declared that the Security Council no longer guarantees world security but serves as a battleground for a select few. UN Secretary-General António Guterres warns that the organization must evolve to reflect the changing world.
- Outdated Structure: The current composition of the Security Council reflects the geopolitical realities of 1945 and fails to account for the significant changes in the world since then.
- Inadequate Representation: In 1945, the Council had 11 members out of 51 UN member countries, representing 22% of the states. Today, with 193 member states, the Council consists of only 15 members, less than 8% of the total.
- Lack of Equitability: The existing composition gives undue weight to the balance of power of 1945. For instance, Europe, with just 5% of the world’s population, controls 33% of the Council’s seats.
- Historical Inequity: Some countries, like Japan and Germany, which have been major financial contributors to the UN, are still labeled as enemy states in the UN Charter, despite their significant contributions.
- Failure to Address Current Challenges: The Council’s inability to adapt to the contemporary world hampers its effectiveness in addressing current global issues and crises.
- Global Dynamics Have Changed: The world has changed significantly since 1945, and the Council needs to evolve to remain relevant and capable of addressing 21st-century challenges.
Obstacles to Reform
- High Bar for Charter Amendment: One of the primary obstacles to reforming the UN Security Council is the high bar set for amending the UN Charter. Any amendment requires a two-thirds majority of the overall UN membership, which translates to the support of 129 out of 193 states in the General Assembly. This level of consensus is challenging to achieve.
- Ratification Hurdles: Beyond the General Assembly’s approval, amendments must also be ratified by two-thirds of the member states. Ratification is typically a parliamentary procedure, making it essential for the proposed reforms to gain widespread support and avoid opposition from any member state.
- Resistance from Current Permanent Members: Existing permanent members of the Security Council, notably China, may resist reforms that could dilute their status as the only Asian permanent member. This resistance can be a significant roadblock to any reform efforts.
- African Representation: Africa, with 54 member states, insists on having two permanent seats. However, resolving the rival credentials of nations like Nigeria, South Africa, and Egypt poses a substantial challenge.
- No Consensus on Semi-Permanent Members Proposal: A proposal to create a second category of semi-permanent members with 10-year electable terms has not found acceptance among the principal aspirants, adding to the complexity of reform discussions.
- Geopolitical Conflicts: Ongoing geopolitical conflicts, such as the Ukraine crisis, highlight the Security Council’s gridlock in responding effectively to global issues when permanent members exercise their veto powers.
Stances by Countries
- Reforming the Security Council faces opposition from both rival countries and those who fear losing their influence.
- The high bar for amending the UN Charter, requiring a two-thirds majority of member states and ratification by the same, makes change difficult.
- China resists diluting its status as the sole Asian permanent member, Pakistan opposes India’s inclusion, and Indonesia has reservations.
- In Latin America, Brazil’s claims clash with those of Argentina and Mexico. Africa, with 54 member states, demands two permanent seats, further complicating the issue.
The case for India’s inclusion in the UNSC
- Population Size: India is the world’s second-most populous country, with over 1.3 billion people.
- Economic Significance: India has emerged as one of the world’s fastest-growing major economies.
- Peacekeeping Contributions: India has been a consistent and substantial contributor to UN peacekeeping missions.
- Regional Influence: India’s geographical location places it in a critical region of Asia. Its inclusion in the Security Council would provide a balanced representation of Asian interests and perspectives.
- Diplomatic Engagement: India has a long history of active engagement in international diplomacy and has played a constructive role in various global forums.
- Democracy and Pluralism: India is the world’s largest democracy, with a diverse and pluralistic society.
- Representation of the Global South: India’s presence in the Security Council would provide greater representation to the Global South, addressing concerns of equity and diversity in international decision-making.
The issue of continuing gridlock
- Lack of Progress Over Decades: Despite the urgent rhetoric, the UN has missed several milestones for reform, including the 50th, 60th, 70th, and 75th anniversaries of the organization.
- Obstructionism and Veto Use: The ongoing gridlock in the Security Council is exemplified by instances where permanent members have used their veto powers to block resolutions on critical issues. For example, Russia’s repeated use of the veto has obstructed resolutions related to Ukraine, Mali, Syria, and North Korea.
- Failure to Respond to Crises: The Security Council’s inability to respond effectively to crises, such as when a permanent member invaded a sovereign UN member state (as seen in the Ukraine conflict), underscores the Council’s limitations in addressing pressing global challenges.
- Stalemate in Financial Institution Reforms: The gridlock extends to other areas, such as reforms of international financial institutions like the World Bank and the International Monetary Fund.
Way Forward
- Acknowledging the UN’s importance: Recognize the vital role that the United Nations (UN) plays as the only global platform that brings all countries together. It serves as a crucial forum for international cooperation, diplomacy, and conflict resolution.
- Addressing the Challenges: While acknowledging the challenges and obstacles to reform, member states should actively engage in discussions and negotiations to find viable solutions.
- Building Consensus: Prioritize the process of building consensus among member states on the need for Security Council reform. Diplomatic efforts should focus on finding common ground and shared objectives.
- Flexible Reform Proposals: Explore flexible reform proposals that can accommodate the diverse interests and aspirations of member states. Proposals should be open to adjustments and compromises to secure broader support.
Conclusion
- The ongoing debate on Security Council reform must prioritize maintaining the UN’s relevance in the 21st century by achieving equitable representation through innovative solutions that balance emerging powers’ aspirations with existing permanent members’ concerns, ensuring the UN fulfills its mission as a global platform for peace and progress.
Also read:
UNSC: India’s Remarkable Tenure
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Israel-Palestine Issue
Central Idea
- Mahatma Gandhi’s perspective on the Israel-Palestine issue has been a topic of extensive debate over the years.
- His article, ‘The Jews,’ written in 1938, offers insights into his complex views on the matter.
- Gandhi’s sentiments regarding the Jewish people, the Holocaust, and the creation of a Zionist state in Palestine are subjects of scrutiny and admiration, shedding light on his unwavering commitment to non-violence.
Gandhi’s Sympathy for the Jewish People
- Historical Persecution: Gandhi expressed deep sympathy for the Jewish people who had endured historical persecution due to their religion. He likened their mistreatment by Christians to the plight of untouchables in Hinduism.
- German Persecution: Gandhi went further, describing the German persecution of Jews as unparalleled in history. He voiced concern over Britain’s appeasement policy toward Adolf Hitler and asserted that a war against Germany, if necessary to prevent Jewish persecution, would be justifiable in the name of humanity.
Opposition to a Zionist State in Palestine
- Violence and Settlement: Gandhi firmly opposed the imposition of Jews on Arabs in Palestine, condemning it as inhumane. He believed that the settlement of Jews, facilitated by Britain, was inherently violent and could not be achieved through force.
- Need for Arab Goodwill: Gandhi insisted that Jews could only settle in Palestine with the goodwill of the Arab population, without the assistance of British military force.
- Antithetical to Jewish Rights: He argued that the idea of a Jewish homeland in Palestine contradicted the Jews’ struggle for rights in other parts of the world. Gandhi questioned whether Jews, who had settled globally, would appreciate being compelled to leave other regions for a singular homeland.
Influence on India’s Foreign Policy
- Wider Anti-Imperialist Sentiment: Gandhi’s stance on Palestine resonated with leaders across the Arab world and anti-imperialist movements globally. The Balfour Declaration of 1917, promising Jews a homeland in the British Mandate of Palestine, drew criticism.
- Impact on Nehru: Jawaharlal Nehru, India’s first Prime Minister, was profoundly influenced by Gandhi’s views. Gandhi’s anti-imperialism and his perspective on the Israel-Palestine issue shaped India’s foreign policy for decades.
- UN Resolution and Recognition: India voted against UN Resolution 181, which proposed the partition of Palestine between Jews and Arabs. Although India recognized the state of Israel in 1950, it was not until 1992, under Prime Minister P. V. Narasimha Rao, that official diplomatic relations were established.
Conclusion
- Mahatma Gandhi’s complex and empathetic stance on the Israel-Palestine issue reflects his unwavering commitment to non-violence and his deep sympathy for the Jewish people.
- His opinions on the matter, rooted in anti-imperialism and a profound sense of humanity, played a pivotal role in shaping India’s foreign policy and continue to be subjects of historical significance and debate.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Prompt Corrective Action (PCA)
Mains level: Read the attached story
Central Idea
- The RBI has announced the extension of the Prompt Corrective Action (PCA) framework to Government Non-Banking Financial Companies (NBFCs), excluding those in the Base Layer, starting from October 1, 2024.
PCA Framework Expansion
- Scope: Government-owned NBFCs, such as PFC, REC, IRFC, and IFCI, will now fall under the PCA framework.
- Impact: These NBFCs will face restrictions on dividend distribution and profit remittances. Promoters and shareholders will have limitations on equity infusion, and leverage reduction will be required. Issuing guarantees or taking contingent liabilities on behalf of group companies will also be restricted.
What is Prompt Corrective Action (PCA) Framework?
- Definition: The PCA Framework is a watchlist of banks identified as financially weak by the central bank.
- Regulatory Measures: When a bank falls under PCA, the regulator imposes restrictions on its operations, such as curbs on lending activities.
- Coverage: The PCA Framework applies exclusively to commercial banks and does not extend to cooperative banks or non-banking financial companies (NBFCs).
- History: The RBI introduced the PCA Framework in December 2002 as an early intervention mechanism, inspired by the US Federal Deposit Insurance Corporation’s PCA framework.
- Last Update: The revised PCA framework came into effect on January 1, 2022.
- Monitoring Areas: The revised framework places a heightened focus on capital adequacy, asset quality, and leverage.
- Risk Threshold: The RBI has updated the level of capital adequacy ratio shortfall that triggers classification into the “risk threshold three” category.
Trigger Points for PCA Inclusion
- Capital-to-Risk Weighted Assets Ratio (CRAR): CRAR measures a bank’s capital in relation to risk-weighted assets. If CRAR falls below 9 percent, the RBI takes action, including the submission of a capital restoration plan, restrictions on business activities, and dividend payments. Additional steps may follow if CRAR is below 6 percent but equal to or above 3 percent.
- Net Non-Performing Assets (NPA): If net NPAs exceed 10 percent but remain below 15 percent, the RBI initiates measures to reduce bad loans and strengthen credit appraisal skills.
- Return on Assets (RoA): If RoA drops below 0.25 percent, restrictions are imposed on deposit renewal, access to costly deposits and CDs, and the bank’s entry into new lines of business.
Rationale for Expansion
- Growing Significance: NBFCs have witnessed substantial growth and have strong linkages with various financial segments.
- Supervisory Enhancement: In 2022, the RBI introduced the PCA framework for NBFCs to strengthen supervisory tools. The objective is to facilitate timely supervisory intervention and mandate corrective actions to restore financial health.
- Market Discipline: The framework serves as a mechanism for effective market discipline, ensuring that NBFCs adhere to financial prudence.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Climate Change
Mains level: Not Much
Central Idea
- Studies have highlighted various climate phenomena in India, including declining monsoon rainfall, intensifying extreme weather events, droughts, heatwaves, and cyclones.
- However, a critical question that demands attention is whether these changes represent long-term trends, abrupt shifts, or decadal cycles.
- These distinctions hold significant implications for resource planning and management.
Understanding Climate Change Terminology
- Trend: Refers to a continuous, prolonged change in climate variables, such as a steady temperature increase over time. The term “anthropogenic trend” implies changes occurring within human lifetimes.
- Secular Trend: Indicates a variable’s continuous increase for a specific period within a more extended timeframe, like 30 years within a century.
- Decadal Variability: Involves oscillations between positive and negative phases over tens of years, potentially resembling a shift.
- Shift: Represents a rapid transition from one state to another, like a sudden change in rainfall patterns. An example is the shift in seasonal monsoon rainfall from above the long-period average (LPA) to below it.
Case Study: Cyclones Trend in Arabian Sea
- A recent study in the journal Climate and Atmospheric Science identified a notable change in cyclone formation potential over the Arabian Sea in the late 1990s.
- Cyclone-genesis potential depends on factors like sea surface temperature, ocean heat content, wind changes from the surface to upper atmosphere, and wind rotation. These factors have favored increased cyclone formation potential since the 1990s.
- However, the crucial question is why this rapid increase occurred during this period. The study suggests that it coincided with a shift in the ‘Warm Arctic, Cold Eurasian’ (WACE) pattern rather than being a trend.
Warm Arctic, Cold Eurasian Pattern
- The WACE pattern involves warm surface temperatures over the Arctic and cold surface temperatures over Eurasia. It influences upper-level circulation changes that extend into the Indian Ocean sector.
- Global warming experienced a slowdown during this period, and scientists have proposed the occurrence of a ‘regime shift,’ similar to one observed in the mid-1970s.
|
Challenge for India
- Regardless of whether these climate changes are shifts or decadal cycles, it is essential to understand their potential long-term effects on the monsoon, cyclone frequency, heatwaves, and extreme rainfall.
- Accurate predictions are vital for planning and allocating resources to adapt to climate risks, such as sea-level rise, heavy rainfall, drought, heatwaves, and cyclones.
- Climate scientists must focus on understanding natural variability in the local context, especially since this variability is influenced by global warming.
- For example, the study indicates that the monsoon decadal cycle, previously lasting around 20 years, may now extend further, raising questions about the underlying causes.
Conclusion
- Distinguishing between climate trends, shifts, and decadal cycles is essential for India’s adaptation strategies.
- These distinctions affect how the country prepares for and responds to evolving climate patterns, and climate scientists must strive to unravel the complexities of natural variability to make informed predictions and policy recommendations.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Baiga Tribes , PVTG
Mains level: Read the attached story
Central Idea
- The Baiga Particularly Vulnerable Tribal Group (PVTG) recently became the second community in the state to receive habitat rights, following the Kamar PVTG in Chhattisgarh.
- Habitat rights recognition marks a crucial step towards preserving the culture, livelihoods, and heritage of these indigenous groups.
Baiga PVTG
- The Baiga are an ethnic group found in central India primarily in the state of Madhya Pradesh, and in smaller numbers in the surrounding states of Uttar Pradesh, Chhattisgarh and Jharkhand.
- The largest number of Baiga is found in Baiga-chuk in Mandla district and Balaghat district of Madhya Pradesh.
Understanding Habitat Rights
- Significance: Habitat rights recognition bestows upon the concerned community various rights over their customary territory, encompassing habitation, socio-cultural practices, livelihood means, ecological knowledge, and protection of natural and cultural heritage.
- Empowering Communities: These rights empower PVTG communities by safeguarding their traditional livelihoods and ecological knowledge, thereby promoting their development.
- Coordination: Habitat rights facilitate the convergence of government schemes and initiatives across departments, fostering the holistic development of PVTG communities.
Legal Framework
- Forest Rights Act: Habitat rights for PVTGs are granted under Section 3(1)(e) of The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, commonly known as the Forest Rights Act (FRA).
- Definition of Habitat: As per Section 2(h) of FRA, habitat encompasses customary habitats and other habitats within reserved forests and protected forests, catering to the needs of primitive tribal groups and pre-agricultural communities.
- Protection from Developmental Activities: While habitat rights do not convey ownership, they require consent and consultation with the gram sabha (village council) for any developmental activity. These rights also offer legal protection under various laws.
Habitat Rights as a Protective Measure
- Legal Safeguards: Habitat rights serve as an additional layer of legal protection against activities that may harm the habitat or livelihood of PVTGs.
- Administrative Resolution: If developmental activities threaten habitat rights, the tribal community can raise the issue with the administration under the Forest Rights Act, potentially seeking legal recourse.
Determining Habitats
- Procedure: Habitat determination is based on comprehensive guidelines issued by the Ministry of Tribal Affairs (MoTA) in 2014. Coordination among four state-level departments—Forest, Revenue, Tribal, and Panchayati Raj—is crucial.
- Consultation: Traditional tribal leaders are consulted to assess cultural practices, traditions, and livelihoods. The government corroborates this information before officially declaring a habitat.
Back2Basics: Particularly Vulnerable Tribal Group (PVTG)
| Definition |
Tribal communities with declining population, low literacy, pre-agricultural tech, and economic backwardness. |
| Habitat |
Inhabit remote areas with poor infrastructure and limited administrative support. |
| Vulnerability |
Highly vulnerable due to small numbers and lack of socio-economic development. |
| Number |
75 such groups identified and categorized as Particularly Vulnerable Tribal Groups (PVTGs). |
| Origin of the Concept |
| Dhebar Commission (1960-1961) |
Identified inequality in development among Scheduled Tribes. |
| Fourth Five Year Plan |
Created a sub-category within Scheduled Tribes to identify lower development groups. |
| Sub-Category Name Change |
Renamed “Primitive tribal group” to “Particularly vulnerable tribal group” in 2006. |
| Features of PVTGs |
| Characteristics |
Pre-agricultural lifestyle, hunting and gathering, zero/negative population growth, low literacy. |
| Criteria |
Any one criterion makes a group a PTG, later renamed PVTG by the Indian government. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Direct Taxes
Mains level: Not Much
Central Idea
- India’s net direct tax collections have surged, exceeding over half of this year’s Budget estimates.
- By October 9, the collections had grown by 21.8% to reach ₹9.57 lakh crore.
Factors Driving Tax Collections
- Personal Income Tax Growth: Personal income tax collections have seen a remarkable increase of 32.5%, reflecting higher income levels and tax compliance among individuals.
- Corporate Tax Revenues: Corporate tax collections grew by 12.4%, reflecting improved corporate earnings and economic recovery.
- Budget Surpassing Collections: The robust growth has already surpassed over 50% of the Budget estimates for the fiscal year.
What are Direct Taxes?
- A type of tax where the impact and the incidence fall under the same category can be defined as a Direct Tax.
- The tax is paid directly by the organization or an individual to the entity that has imposed the payment.
- The tax must be paid directly to the government and cannot be paid to anyone else.
Types of Direct Taxes
The various types of direct tax that are imposed in India are mentioned below:
(1) Income Tax:
- Depending on an individual’s age and earnings, income tax must be paid.
- Various tax slabs are determined by the Government of India which determines the amount of Income Tax that must be paid.
- The taxpayer must file Income Tax Returns (ITR) on a yearly basis.
- Individuals may receive a refund or might have to pay a tax depending on their ITR. Penalties are levied in case individuals do not file ITR.
(2) Wealth Tax:
- The tax must be paid on a yearly basis and depends on the ownership of properties and the market value of the property.
- In case an individual owns a property, wealth tax must be paid and does not depend on whether the property generates an income or not.
- Corporate taxpayers, Hindu Undivided Families (HUFs), and individuals must pay wealth tax depending on their residential status.
- Payment of wealth tax is exempt for assets like gold deposit bonds, stock holdings, house property, commercial property that have been rented for more than 300 days, and if the house property is owned for business and professional use.
(3) Estate Tax:
- It is also called Inheritance Tax and is paid based on the value of the estate or the money that an individual has left after his/her death.
(4) Corporate Tax:
- Domestic companies, apart from shareholders, will have to pay corporate tax.
- Foreign corporations who make an income in India will also have to pay corporate tax.
- Income earned via selling assets, technical service fees, dividends, royalties, or interest that is based in India is taxable.
- The below-mentioned taxes are also included under Corporate Tax:
- Securities Transaction Tax (STT): The tax must be paid for any income that is earned via security transactions that are taxable.
- Dividend Distribution Tax (DDT): In case any domestic companies declare, distribute, or are paid any amounts as dividends by shareholders, DDT is levied on them. However, DDT is not levied on foreign companies.
- Fringe Benefits Tax: For companies that provide fringe benefits for maids, drivers, etc., Fringe Benefits Tax is levied on them.
- Minimum Alternate Tax (MAT): For zero-tax companies that have accounts prepared according to the Companies Act, MAT is levied on them.
(5) Capital Gains Tax:
- It is a form of direct tax that is paid due to the income that is earned from the sale of assets or investments. Investments in farms, bonds, shares, businesses, art, and homes come under capital assets.
- Based on its holding period, tax can be classified into long-term and short-term.
- Any assets, apart from securities, that are sold within 36 months from the time they were acquired come under short-term gains.
- Long-term assets are levied if any income is generated from the sale of properties that have been held for a duration of more than 36 months.
Advantages of Direct Taxes
The main advantages of Direct Taxes in India are mentioned below:
- Economic and Social balance: The Government of India has launched well-balanced tax slabs depending on an individual’s earnings and age. The tax slabs are also determined based on the economic situation of the country. Exemptions are also put in place so that all income inequalities are balanced out.
- Productivity: As there is a growth in the number of people who work and community, the returns from direct taxes also increase. Therefore, direct taxes are considered to be very productive.
- Inflation is curbed: Tax is increased by the government during inflation. The increase in taxes reduces the necessity for goods and services, which leads to inflation to compress.
- Certainty: Due to the presence of direct taxes, there is a sense of certainty from the government and the taxpayer. The amount that must be paid and the amount that must be collected is known by the taxpayer and the government, respectively.
- Distribution of wealth is equal: Higher taxes are charged by the government to the individuals or organizations that can afford them. This extra money is used to help the poor and lower societies in India.
What are the disadvantages of direct taxes?
- Easily evadable: Not all are willing to pay their taxes to the government. Some are willing to submit a false return of income to evade tax. These individuals can easily conceal their incomes, with no accountability to the law of the land.
- Arbitrary: Taxes, if progressive, are fixed arbitrarily by the Finance Minister. If proportional, it creates a heavy burden on the poor.
- Disincentive: If there are high taxes, it does not allow an individual to save or invest, leading to the economic suffering of the country. It does not allow businesses/industries to grow, inflicting damage to them.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Basics- traditional and modern medicine system
Mains level: The coexistence of traditional and modern medicine systems, challenges and significance
What’s the news?
- The recent case where a manufacturer of indigenous drugs filed a lawsuit against a medical practitioner over a social media thread has ignited discussions in medical circles.
Central idea
- The recent case prompts us to explore the broader questions surrounding the role of traditional medicine in our modern world, the principles of evidence-based medicine, and the steps governments should take to ensure the health of their populations.
The Evolution of Modern Medicine
- Early Medical Practices: In ancient civilizations, various cultures developed their own medical systems, often rooted in traditions and observations. These practices formed the foundation upon which modern medicine would later build.
- Scientific Renaissance: The Renaissance period in Europe marked a resurgence of interest in science and inquiry. This era laid the groundwork for the scientific approach that modern medicine would adopt.
- 19th Century Advancements: The 19th century witnessed significant strides in medical science and technology. Innovations such as the microscope, anesthesia, and surgical techniques transformed medical practices.
- Evidence-Based Medicine: Modern medicine became truly science-based in the late 19th century, when advances in technology allowed for a more accurate understanding of human physiology, health, and disease. The adoption of evidence-based approaches has become a hallmark of modern medical practice.
- Technological Marvels: The 20th century saw unprecedented developments in medical technology, including the advent of diagnostic imaging, organ transplantation, and the establishment of pharmaceutical research. These advancements revolutionized patient care.
- Global Collaboration: The latter half of the 20th century and the early 21st century have been characterized by increased global collaboration in healthcare. Medical knowledge, research, and innovations have transcended geographical boundaries, leading to improved healthcare outcomes worldwide.
The Global Nature of Modern Medicine
- Global Scientific Collaboration: Researchers worldwide work together to advance medical knowledge and develop innovative treatments.
- Access to Innovations: Patients globally benefit from medical breakthroughs, ensuring wider access to cutting-edge treatments and technologies.
- Healthcare Diplomacy: Many countries engage in healthcare diplomacy, offering aid and expertise to regions in need and fostering goodwill.
- International Healthcare Workforce: Healthcare professionals from diverse backgrounds contribute their expertise globally, addressing healthcare disparities.
- Cross-Cultural Integration: Modern medicine respects diverse healthcare approaches, integrating traditional medical systems and practices from different cultures.
- Pandemic Response: The COVID-19 pandemic highlighted global health interconnectedness, emphasizing collaborative efforts in vaccine development, information sharing, and medical aid distribution.
Traditional Medicine in the Modern World
- Traditional medicine, which includes systems like Ayurveda, Unani, and Siddha, continues to coexist alongside modern medicine. These traditional systems have a long history and cultural significance. However, their place in the modern world is subject to several challenges:
- Scientific Scrutiny: Traditional medicine often lacks the rigorous scientific validation that modern medicine adheres to. This can hinder its integration into the mainstream healthcare system.
- Safety and Quality Control: Ensuring the safety and quality of traditional medicines can be a concern. Contaminants, inconsistent formulations, and a lack of standardized production processes can lead to safety issues.
- Lack of Standardization: Traditional medicine formulations can vary widely from one source to another, making it difficult to assess their efficacy consistently.
- Cultural and Ethical Considerations: Traditional medicine is deeply rooted in cultural and traditional beliefs. Balancing cultural practices with modern medical standards can be complex, as some treatments may hold cultural significance but lack scientific validation.
- Education and Training: There is a need for comprehensive education and training programs to ensure that practitioners of traditional medicine are well-informed about modern medical standards and safety protocols.
Challenges in Evaluating Ayurvedic Medicines
- Complex Formulations: Ayurvedic medicines often consist of multiple herbs and ingredients, making it challenging to isolate and study the specific active components responsible for their effects.
- Diverse Combinations: Ayurvedic formulations can vary widely in their combinations of herbs and minerals. Understanding how these components interact and their individual contributions to treatment can be complex.
- Lack of Standardization: There is a lack of standardized protocols for the production and quality control of Ayurvedic medicines, affecting the consistency and safety of products.
- Integration with Modern Science: Bridging the gap between traditional Ayurvedic knowledge and modern scientific methods is essential. Developing research methods that respect Ayurvedic principles while adhering to contemporary scientific standards is a challenge.
The government’s role in promoting evidence-based medicine
- Regulation and Oversight: Governments should establish regulatory bodies to oversee traditional medicine practices, ensuring they meet safety and quality standards. This includes setting guidelines for the manufacturing, labeling, and marketing of traditional medicines.
- Research and Funding: New investigational methods and trial designs that can evaluate Ayurvedic therapies without undermining the classical basis of administering them must be worked out. The Ministry of AYUSH must facilitate this.
- Public Awareness: Governments can educate the public about the benefits and limitations of traditional medicine, promoting informed choices when seeking healthcare.
- Integration with Modern Healthcare: Promoting collaboration and integration between traditional and modern healthcare systems can provide patients with a more comprehensive range of treatment options.
Way forward: Maintaining an Open Mind
- Balanced Perspective: Maintain a balanced view when assessing traditional medicine alongside modern healthcare, considering both potential benefits and limitations.
- Open-mindedness: Embrace open-mindedness in exploring traditional practices for potential insights, fostering an environment of curiosity and exploration.
- Informal Verifications: Acknowledge the value of centuries of informal verifications in traditional medicine, recognizing that these practices have been refined through generations of use.
- Cultural Significance: Traditional medical systems are often deeply intertwined with cultural heritage and beliefs. Respecting and acknowledging this cultural significance is essential when considering their place in modern healthcare.
- Historical Insights: The reference to artemisinin, a Nobel-winning anti-malarial drug derived from a 1,600-year-old text of Traditional Chinese Medicine, underscores the potential for valuable discoveries when traditional knowledge is integrated with modern scientific methods.
- Collaboration: Encourage collaboration between traditional practitioners and modern scientists, promoting dialogue and cooperation for the advancement of healthcare.
- Evidence-based Approach: Subject traditional knowledge to rigorous scientific evaluation to ensure safety and efficacy, aligning with the principles of evidence-based medicine to validate its effectiveness.
Conclusion
- The coexistence of traditional and modern medicine systems is a testament to the diversity of human healthcare practices. It is crucial to embrace a nuanced approach that recognizes the strengths and limitations of each system, fostering an environment where science and tradition can collaborate for the betterment of public health.
Also read:
Homeopathy and associated issues
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Women's Reservation Bill
Mains level: Gender parity in India, challenges and Women's Reservation Bill
What’s the news?
- The recently released 17th edition of the Global Gender Gap Report (2023) predicts it will take 131 years to close the global gender gap, rising to 149 years in South Asian countries, including India.
Central idea
- The recently released Global Gender Gap Report by the World Economic Forum, based on data from 146 countries, paints a grim picture. In light of this sobering reality, it is evident that affirmative action in the form of reservation is an essential step towards achieving gender equity and, ultimately, gender equality.
Reservation: An Effective Tool for Equality?
- Equality through Equity: Equity is the initial and essential step toward achieving true equality. In a world where gender discrimination has persisted for centuries, equitable policies like reservations are indispensable. They provide women with the opportunities they have long been denied and help level the playing field.
- Affirmative Action through Reservations: Reservations are undeniably one of the most effective forms of affirmative action aimed at rectifying historical injustices and promoting equity. It serves as the cornerstone for achieving gender equality and is integral to dismantling deeply entrenched societal biases.
- Inefficiency and incompetency Misconceptions: Critics claim that reservations result in inefficiency, but this assertion lacks evidence; competency gaps, if any, are temporary and can be overcome through skill development and experience for marginalized individuals, including women.
- A Level Playing Field: Women are not seeking to compete against their own gender; instead, they aspire to operate in an environment where gender becomes entirely irrelevant, where meritocracy triumphs over discrimination.
- Challenging the Competency Argument: Women consistently outperform men in academics, with higher college graduation rates and increasing representation in the workforce. The glaring gender gap emerges in leadership positions, not due to women’s incompetence but because entrenched male hegemony persists.
Notable examples: Complexities of Gender and Leadership
- Indira Gandhi’s Delayed Leadership: Despite her significant political advantages and early involvement in politics, Indira Gandhi did not become Prime Minister immediately after Jawaharlal Nehru’s death in 1964. She had to wait until the passing of Lal Bahadur Shastri in 1966 to assume the role.
- Historical Opposition to Gender-Based Reservations: During the 1930s Round Table Conference in London, prominent women leaders like Sarojini Naidu and Begum Jahanara Shahnawaz presented a joint manifesto. They rejected the idea of providing either discriminatory or preferential treatment based on gender in legislative representation, indicating their opposition to gender-based reservation policies.
- Diverse Perspectives Within the Women’s Movement: Begum Jahanara Shahnawaz and Radhabai Subbarayan advocated for a modest five percent reservation for women, while Sarojini Naidu opposed such reservations.
A Fresh Start: Women’s Reservation Bill
- Historic Moment: The Women’s Reservation Bill, Constitution (One Hundred Twenty-Eighth Amendment) Bill, 2023, cleared both Houses in September 2023, marking a historic achievement in India.
- Delayed Gender Equality: Despite early universal adult suffrage, women’s role in shaping Indian politics has remained minimal, highlighting the significance of this legislation.
- Global Youthful Leaders: In a trend of younger political leaders worldwide, questions arise about the potential for an ordinary Indian woman to aspire to the Prime Minister’s office, as seen in leaders like Jacinda Ardern.
- Undervalued Women’s Leadership: While women are often recognized in supportive roles, their presence in leadership positions remains limited, as evident in the case of Hillary Clinton, whose qualifications were overshadowed by an inexperienced male opponent in a prominent democracy.
Regressive Views and Misconceptions
- Regressive Views on Gender Equality:
- One of the most significant obstacles to gender equality is the presence of regressive views held by both men and women.
- Even individuals who are considered progressive, like C. Rajagopalachari, have opposed women like Radhabai Subbarayan from contesting general seats.
- Misconceptions about the Women’s Reservation Bill:
- Mulayam Singh’s accusation in Parliament in 2010 further illustrates the challenge. He argued that the earlier version of the Women’s Reservation Bill would primarily benefit educated, urban, and elite women.
- However, this viewpoint failed to recognize that the bill’s core objective was to provide opportunities for women who did not belong to privileged and elite classes.
Changing landscape
- The Prolonged Gender Gap: The persistence of regressive views and misconceptions has contributed to the enduring gender gap. Women have had to wait for an extended period to close this gap. The current Women’s Reservation Bill is considered the first step toward achieving gender parity.
- Desire for Expedited Implementation: There is a hope that the implementation of the Women’s Reservation Bill will be expedited by readjusting seats based on the 1991 Census data, similar to the process followed for Scheduled Caste seats by the Delimitation Commission.
Conclusion
- The Women’s Reservation Bill is the first step toward achieving gender parity in India. It is time to correct historical wrongs, as women and society as a whole demand and deserve change. There is no reason to delay the journey towards true gender equality.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Recent developments involving India
Mains level: India's approach in the evolving Maldivian political landscape
What’s the news?
- The recent presidential election in the Maldives has demonstrated the vitality of democracy in South Asia’s smallest nation-state.
Central idea
- The Maldives’ recent fair and free election, which enhanced its international standing, underscores the importance of a nuanced understanding of its politics rather than portraying it as a China vs. India contest. Voter concerns, especially among the youth, are primarily centered on economic well-being.
Transition of Power in the Maldives and India vs. China
- Maumoon Abdul Gayoom’s Era (1978–2008): For three decades, Maumoon Abdul Gayoom ruled as the President, maintaining a one-party system. This period marked a lack of political pluralism and democracy in the Maldives.
- Emergence of Multiparty Democracy (Late 2000s): The Maldives began to transition towards a multiparty democracy under a new constitution, signaling a shift away from Gayoom’s authoritarian rule.
- Mohamed Nasheed’s Presidency (2008–2012): Mohamed Nasheed, a charismatic leader, became the first directly elected President of the Maldives. However, his presidency was short-lived, as he did not complete his full five-year term.
- Shared Presidency (2012–2013): Mohamed Nasheed’s resignation led to a period of political uncertainty. Mohamed Waheed Hassan assumed the presidency during this transitional phase.
- Abdulla Yameen’s Presidency (2013–2018): Abdulla Yameen became president and was notably the most pro-China president during his tenure. His presidency marked a shift in the Maldives’ foreign policy towards China.
- Ibrahim Mohamed Solih’s Presidency (2018–2023): Ibrahim Mohamed Solih, representing the Maldivian Democratic Party (MDP), assumed the presidency and adopted an ‘India First’ policy, emphasizing strong ties with India.
- Transition to Mohamed Muizzu (Upcoming): Following Ibrahim Mohamed Solih’s defeat, the presidency is set to transition to Mohamed Muizzu, the opposition candidate backed by an alliance of political parties. Muizzu, who currently serves as the mayor of the capital city, Male, will be sworn in as the new president.
Challenges Faced by Ibrahim Mohamed Solih
- Historical Incumbent Disadvantage: The Maldives has a history of not re-electing incumbent presidents, posing a significant challenge to Solih’s re-election.
- Intraparty Conflict: Internal divisions within the ruling MDP, exacerbated by Mohamed Nasheed’s departure, weakened party cohesion and campaign effectiveness.
- Disinformation Campaign: The opposition alliance launched a disinformation campaign exploiting MDP’s internal divisions and injecting unnecessary geopolitical issues into the election discourse.
- Loss of Nasheed’s Influence: Mohamed Nasheed’s departure deprived the MDP of his charismatic leadership and effective communication skills, further straining party unity.
The Path Ahead for the Maldives
- Leadership Dynamics: Watch for the evolving relationship between President-elect Muizzu and former President Yameen, a key figure in the new administration.
- Transition to Presidential Role: Expect Mayor Muizzu to shift from his mayoral role to acting as president, focusing on domestic development and regional responsibilities.
- Domestic Priorities: Muizzu is likely to prioritize issues like employment, housing, and education for Maldivian citizens while leveraging foreign policy for national interests.
- Foreign Policy Options: The new administration faces choices in foreign policy: revert to ‘India Out,’ continue ‘India First,’ or adopt a balanced approach involving India and China.
- Changing Global Landscape: Consider the impact of challenges to China’s Belt and Road Initiative, the Sri Lankan financial crisis requiring India’s help, and shifts in India-Gulf State relations on the Maldives’ stance.
- Islamist Constituency: Monitor the attitude of the Maldives’ Islamist constituency, which historically had complex relations with India, in response to changing regional dynamics.
- Reduced Interest in Pakistan: Observe how diminishing interest in Pakistan in West Asia may affect the Maldives’ security and its handling of extremism-related challenges.
Recommendations for India’s approach in the evolving Maldivian political landscape
- Positive Public Sentiment: India enjoys a positive image among the Maldivian people, thanks to extensive development work and community projects. This sentiment can be leveraged for stronger bilateral relations.
- Engagement with Youth: Thousands of Maldivian youth have benefited from training and capacity-building programs in India. Continued engagement with youth is vital for fostering long-term ties.
- Diverse Engagement: India plays a significant role in the Maldives, including in tourism, trade, and investment. This multifaceted engagement should be nurtured and expanded.
- Strengthening Regional Initiatives: New Delhi should focus on strengthening regional initiatives, such as the Colombo Security Conclave, with tangible outcomes in maritime security and the development of the Blue Economy.
- BIMSTEC Involvement: India should consider reimagining regional cooperation by inviting the Maldives as an observer in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) at its next summit. This could enhance regional collaboration.
- Resource Allocation: There is a need for additional resources to support India’s strategic community and media organizations in taking a more active interest in the Maldives. Building bridges of mutual understanding and trust is essential.
Conclusion
- The Maldives’ recent presidential election underscores the resilience of democracy and the evolving political landscape in South Asia. As the nation embarks on a new chapter, prudent diplomacy and strategic engagement will be essential for the Maldives and its regional partners, including India, to navigate the challenges and opportunities on the horizon.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Indian Ocean Rim Association (IORA)
Mains level: Read the attached story
Central Idea
- Sri Lanka is set to take over Chair of the Indian Ocean Rim Association (IORA) succeeding Bangladesh.
- It will hold this prestigious position for the next two years.
About Indian Ocean Rim Association (IORA)
- Establishment: Founded in 1997, IORA serves as a regional forum aimed at fostering understanding and mutually beneficial cooperation through a consensus-based, non-intrusive approach.
- Membership: IORA comprises 23 member states, including Australia, Bangladesh, Comoros, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Maldives, Mauritius, Mozambique, Oman, Seychelles, Singapore, Somalia, South Africa, Sri Lanka, Tanzania, Thailand, UAE, and Yemen.
- Secretariat: The association’s Secretariat is based in Cyber City, Ebene, Mauritius, responsible for managing, coordinating, servicing, and monitoring policy decisions, work programs, and projects adopted by member states.
Significance of IORA
- IORA’s significance is underscored by the Indian Ocean’s pivotal role in global trade, handling half of the world’s container ships, one-third of bulk cargo traffic, and two-thirds of oil shipments.
- It forms the lifeline of international trade and transport, controlling major sea-lanes.
Agenda for Collaborative Action
The Council of Ministers will engage in discussions to foster collaboration across six priority areas highlighted by the IORA:
- Trade and Investment
- Maritime Safety and Security
- Fisheries Management
- Disaster Risk Management
- Blue Economy
- Strengthening Regional Ties
Strategic Significance for Sri Lanka
- Navigating Geopolitical Dynamics: Sri Lanka often finds itself managing complex strategic interests involving India and China within the Indian Ocean Region, positioning it as a crucial player in the IORA.
- Regional Inclusivity: Sri Lanka’s active participation in the forum aligns it with neighboring nations, fostering regional inclusivity and cooperation. This engagement extends to countries such as Pakistan, Myanmar, Bangladesh, Nepal, and Afghanistan.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Scheduled Areas
Mains level: Not Much
Central Idea
- India’s diverse landscape is home to 705 Scheduled Tribe (ST) communities, constituting 8.6% of the nation’s population.
- These communities reside across 26 States and six Union Territories.
- A crucial constitutional provision, Article 244, governs the administration of Scheduled and Tribal Areas, significantly impacting the lives of STs.
Constitutional Framework for STs
- Fifth Schedule (Article 244(1)): This provision applies the Fifth Schedule’s provisions to Scheduled Areas in states other than Assam, Meghalaya, Tripura, and Mizoram.
- Sixth Schedule (Article 244(2)): In the mentioned states, the Sixth Schedule governs the administration of Scheduled and Tribal Areas.
Geographical Scope of Scheduled Areas
- Coverage: Scheduled Areas span 11.3% of India’s land area, designated in 10 States: Andhra Pradesh, Telangana, Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh, Rajasthan, Gujarat, Maharashtra, and Himachal Pradesh. Kerala has proposed additional areas for notification, pending government approval.
- Exclusions: Despite demands from Adivasi organizations, numerous villages in Scheduled Areas and other regions with ST populations have been excluded from Article 244’s purview. Consequently, 59% of India’s STs lack the rights conferred by Scheduled Areas-related laws.
Historical Recommendations
- Bhuria Committee (1995): This committee recommended extending panchayat raj to Scheduled Areas, including the villages, a suggestion yet to be implemented.
- Denotification Debate: Some argue for the denotification of parts of Scheduled Areas where non-tribal individuals have increased, citing the absence of viable ST-majority administrative units.
Governance of Scheduled Areas
- Notification: The President of India designates Scheduled Areas.
- Tribal Advisory Council: States with Scheduled Areas must establish a Tribal Advisory Council with up to 20 ST members to advise the Governor on ST welfare matters.
- Governor’s Role: The Governor reports annually to the President regarding Scheduled Areas’ administration. They can also repeal or amend laws applicable to the Scheduled Area, regulate tribal land transfer, and control money-lending activities.
- Underutilized Provisions: These extensive powers granted to Governors and the President have remained largely inactive, with notable exceptions in Maharashtra from 2014 to 2020.
Defining a Scheduled Area
- Exclusive Presidential Power: The Fifth Schedule exclusively grants the President the authority to declare Scheduled Areas.
- Empirical Basis: A 2006 Supreme Court ruling upheld the executive function of identifying Scheduled Areas and stated that it lacks the expertise to scrutinize this process.
- Criteria: Neither the Constitution nor any law specifies criteria for identifying Scheduled Areas. However, based on the Dhebar Commission Report (1961), key considerations include tribal population predominance, area compactness, administrative viability, and economic backwardness relative to neighboring regions.
Settlement of Ambiguity
- PESA Act (1996): The Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996, empowered gram sabhas within Scheduled Areas, reinvigorating the intent of the Constitution and the Constituent Assembly. This law enabled direct democracy and recognized the gram sabhas as primary authorities.
- Village Definition: PESA defines a village as a habitation or group of habitations managed by a community according to traditions and customs. This definition extended beyond Scheduled Areas to forest fringes and villages.
- Unresolved Issues: Gram sabhas have yet to demarcate traditional boundaries on revenue lands. FRA 2006 requires the demarcation of “community forest resource” areas within traditional boundaries.
Conclusion
- Understanding and expanding Scheduled Areas in India necessitates the notification of all habitations or groups of habitations with ST majorities outside existing Scheduled Areas.
- Furthermore, geographical boundaries should encompass “community forest resource” areas where applicable and extend to customary boundaries within revenue lands.
- These steps are essential for ensuring equitable governance and preserving the rights and welfare of India’s Scheduled Tribes.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Claudia Goldin
Mains level: Not Much
Central Idea
- In 2023, Claudia Goldin, a distinguished economist and Professor at Harvard University, was awarded the Nobel Prize in Economic Sciences for her pioneering work on women’s labor market outcomes.
Claudia Goldin: A Trailblazer in Economics
- Harvard Tenure: In 1990, Claudia Goldin made history by becoming the first woman to achieve tenure in Harvard University’s economics department, securing a permanent position as a professor.
- In-Depth Research: The Royal Swedish Academy of Sciences acknowledged Goldin’s important contributions, citing her work as advancing our knowledge of women’s job market outcomes.
- Historical Perspective: Goldin’s research provides a comprehensive historical account of women’s earnings and job market participation over centuries, uncovering the reasons behind changes and the ongoing gender gap.
Key Questions Addressed by Claudia Goldin’s Research
- Gender Inequality at Work: Goldin’s research explores why fewer women seek jobs and earn less than men, shedding light on this inequality.
- Impact of Economic Growth: She challenges the idea that economic growth always leads to more women working, showing that historical trends follow a U-shaped curve due to changes in society and evolving norms.
- Role of Education, Marriage, and Childbirth: Goldin investigates how education, marriage, and having children affect women’s work, providing insights into the complex relationship between these factors.
- Gender Pay Gap: Her research shows that despite modernization and economic growth in the 20th century, the gender pay gap persisted, with a significant part emerging after the birth of the first child.
Transformational Insights
- Contraceptive Pill’s Impact: Goldin highlights how the contraceptive pill empowered women to plan their careers, creating new opportunities for career development.
- Shift in Earnings Gap: She reveals that the main source of the earnings difference between men and women shifted from career choices to disparities within the same job, mainly arising after the birth of the first child.
- Influence on Young Women: Goldin emphasizes that young women’s educational and career decisions are often influenced by previous generations, leading to slow progress in closing the earnings gap.
Significance for Society
- Policy Implications: Claudia Goldin’s research has important implications for addressing barriers to women’s progress in the job market. Her work provides insights into the factors that need attention to promote gender equality.
- Enhancing Understanding: Through her groundbreaking research, Goldin has significantly improved our understanding of women’s roles in the job market, offering the knowledge needed to build a more inclusive and fair society.
Conclusion
- Claudia Goldin’s Nobel Prize in Economics recognizes her pioneering research in unraveling the complexities of women’s job market outcomes.
- Her comprehensive historical analysis has reshaped our understanding of the ongoing gender gap, offering policymakers and society valuable insights for working towards a more equitable future.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Periodic Labour Force Survey (PLFS)
Mains level: Not Much
Central Idea
- The latest findings from the Periodic Labour Force Survey (PLFS), conducted by the National Sample Survey Office (NSSO), reveal a decrease in India’s unemployment rate for the period between April and June 2023.
- This encouraging trend is accompanied by improvements in the Labour Force Participation Rate (LFPR) and the Worker-Population Ratio (WPR), signifying positive shifts in the country’s labor market.
About Periodic Labour Force Survey (PLFS)
| Objective |
Collect comprehensive labor market data in India. |
| Conducted by |
Ministry of Statistics and Programme Implementation (MoSPI), Government of India. |
| Replacement for |
Replaced earlier employment-unemployment surveys by NSSO. |
| Frequency |
Conducted periodically, with rounds typically spanning a year. |
| First Round |
Conducted in July 2017-2018, marking the survey’s initiation. |
| Data Categories |
Employment status, unemployment rate, sector-wise employment, income, demographics, and more. |
| Sampling Methodology |
Sample survey approach with data collected from households and individuals through a scientific sampling process. |
| Policy Impact |
Informs government policies related to employment, labor market interventions, and economic planning. |
2022-23 Survey Overview
- Scope: The national survey compiled data from 5,639 first-stage sampling units (FSUs) and encompassed 1,67,916 individuals residing in 44,190 urban households.
- Age Group: The survey focused on individuals aged 15 years and above.
Improvements in Urban Labour Force Participation
- LFPR Uptick: The LFPR in urban areas exhibited growth, rising from 47.5% in April-June 2022 to 48.8% in the corresponding months of 2023 for individuals aged 15 years and above.
- Gender Disparities: While the LFPR remained stable at approximately 73.5% for males during this period, it notably increased for females, climbing from 20.9% to 23.2%.
Enhanced Worker-Population Ratio
- WPR Gains: In urban areas, the WPR increased from 43.9% in April-June 2022 to 45.5% during the same period in 2023 for individuals aged 15 years and above.
- Gender-Specific Improvements: For males, the WPR progressed from 68.3% to 69.2%, and for females, it surged from 18.9% to 21.1% over this timeframe.
Decrease in Unemployment Rate
- Declining Unemployment: The PLFS reported a diminishing trend in the Unemployment Rate (UR) for individuals aged 15 years and above in urban areas.
- UR in Urban Areas: It decreased from 7.6% in April-June 2022 to 6.6% in April-June 2023.
- Gender-Based UR: For males, the UR dropped from 7.1% to 5.9%, while for females, it decreased from 9.5% to 9.1% during this period.
Comparative Analysis
- Positive Trends: The report highlights improvements in key labor market indicators in urban areas when compared to the pre-pandemic period (April-June 2018 to October-December 2019).
- LFPR Improvement: The LFPR ranged from 46.2% to 47.8% during the pre-pandemic period and has now reached 48.8%.
- WPR Enhancement: Pre-pandemic WPR figures ranged from 41.8% to 44.1%, while the current WPR stands at 45.5%.
- Lower UR: Unemployment rates during the pre-pandemic period fluctuated between 7.8% and 9.7%, with the latest survey reporting a lower UR of 6.6%. This rate is deemed favorable compared to the unemployment rates observed in the quarters preceding the pandemic.
Conclusion
- The Periodic Labour Force Survey (PLFS) results reflect positive developments in India’s labor market, marked by a decreasing unemployment rate, improved labor force participation, and enhanced worker-population ratios.
- These trends indicate a resilient labor market recovery and may signify the nation’s progress towards economic stability and job creation.
Back2Basics:
- Labour Force Participation Rate (LFPR): LFPR is defined as the percentage of persons in labour force (i.e. working or seeking or available for work)in the population.
- Worker Population Ratio (WPR): WPR is defined as the percentage of employed persons in the population.
- Unemployment Rate (UR): UR is defined as the percentage of persons unemployed among the persons in the labour force.
- Activity Status- Usual Status: The activity status of a person is determined on the basis of the activities pursued by the person during the specified reference period. When the activity status is determined on the basis of the reference period of last 365 days preceding the date of survey, it is known as the usual activity status of the person.
- Activity Status- Current Weekly Status (CWS): The activity status determined on the basis of a reference period of last 7 days preceding the date of survey is known as the current weekly status (CWS) of the person.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Women’s Reservation Bill
Mains level: Women’s Reservation Bill, concerns and challenges
What’s the news?
- The Women’s Reservation Bill has journeyed through decades of debates and discussions, yet its implementation remains uncertain.
Central idea
- The recent tabling of the Women’s Reservation Bill in the Lok Sabha has brought attention to the long-awaited issue of gender representation in Indian politics. However, despite the grand announcement, there are several complexities and challenges surrounding its implementation that demand scrutiny.
Historical Background
- The issue of women’s reservation in Indian politics dates back to the Constituent Assembly debates in 1947, where it was initially rejected as unnecessary.
- However, subsequent decades witnessed a decline in women’s political representation, prompting further policy deliberations.
- The quest for women’s reservation in legislative bodies began in 1996, with notable progress occurring during Manmohan Singh’s tenure in 2010, when it passed in the Rajya Sabha but faced rejection in the Lok Sabha.
- Since then, the commitment to empowering women in India’s political landscape has remained unfulfilled.
Current Bill’s Complexities
- Implementation Linked to Census and Delimitation: One of the major complexities is that the bill’s implementation is contingent upon two crucial factors: conducting a new census and completing the delimitation process. Unlike some previous legislation, this bill cannot be immediately enforced but rather depends on these time-consuming processes.
- Unclear Timeline: The bill lacks a clear and specific timeline for its implementation. It leaves the question of when reservations for women in legislative bodies will become a reality unanswered. This ambiguity has raised concerns about the government’s commitment to gender equality in politics.
Census and Delimitation Challenges
- Delay Due to the Pandemic:
- The last census in India was conducted in 2011. Subsequent Census exercises were delayed, with the Union government attributing the postponement to the COVID-19 pandemic.
- This delay has had a direct impact on the implementation of the Women’s Reservation Bill since the bill is linked to the data obtained from the Census.
- Even if the Census process moves forward, there is a looming possibility of conflicts arising during the delimitation process.
- Delimitation, which involves the division of electoral constituencies, can be contentious, particularly between different regions and states. This could further delay the bill’s implementation and pose political challenges.
Key Differences from the 2008 Version
- Intra-State Women Representation: Unlike the 2008 version of the bill, the current iteration does not include provisions for “intra-state women representation.” The 2008 bill mandated that one-third of Lok Sabha seats in each state or Union Territory should be reserved for women, ensuring representation from various regions within the state.
- Rotation of Reserved Seats: The current bill proposes that reserved seats for women should be rotated after every delimitation exercise. This means that the seats set aside for women may change constituency boundaries periodically. In contrast, the 2008 bill did not include such a provision.
- Unclear Status During Delimitation: The current bill does not provide clarity on the status of women’s reservations when the delimitation process is ongoing. Given that delimitation commissions typically take several years to issue their reports, it remains uncertain how the reserved seats for women will be affected during this period.
Way forward
- Clear Implementation Plan: The government must outline a comprehensive and transparent plan for the implementation of the Women’s Reservation Bill. A clear roadmap with specific timelines can provide clarity and boost public confidence in the process.
- Fast-Track Census and Delimitation: Expedite the Census and delimitation processes. Swiftly resolve any conflicts that may arise during these procedures to prevent further delays in implementing the bill.
- Revise Intra-State Representation: Reconsider the exclusion of intra-state women’s representation from the current bill. Ensuring representation from various regions within a state can enhance diversity and inclusivity.
- Seat Rotation Framework: Develop a framework for seat rotation that balances stability and change in women’s representation. Ensure that changes in constituency boundaries do not disrupt the continuity of women in politics.
- Encourage Political Parties: Encourage political parties to proactively nominate more women candidates in elections. Parties can voluntarily set quotas for women candidates to increase their presence in legislative bodies.
Conclusion
- For a nation that initially championed equal rights and representation for all citizens, this delay is a blemish on the visionary ideals of our founding fathers. It is high time that the promise of women’s reservation in politics transforms into a tangible reality.
Also read:
What will hold up women’s reservation Bill?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Banking sector updates
Mains level: India's banking sector growth, reforms, opportunities, challenges and way forward
What’s the news?
- Despite facing numerous challenges in the past quarter-century, including economic crises, pandemics, and geopolitical tensions, India’s banking and financial sector has continued to evolve and adapt.
Central idea
- India’s remarkable growth and stability over the past 25 years have placed the country at the forefront of global optimism. This shift is attributed to the nation’s governance structures and policy apparatus, which have fostered innovation and positioned India as a hub of novel public goods. Among the sectors driving this transformation, banking and finance stand out as key contributors.
The Banking Evolution
- Maturation of Banking in India: Over a period of 75 years, India’s banking sector has matured and grown into a vibrant and robust industry.
- Reforms and Critical Enablers: The past 30 years have seen critical reforms that have played a pivotal role in enabling the growth and transformation of the banking sector.
- Diversity in Banking: India’s banking sector now boasts a diverse landscape that includes public sector banks, private banks, non-banking financial companies (NBFCs), and a burgeoning fintech ecosystem. This diversity has made the financial sector more inclusive and dynamic.
- Addressing Legacy Issues: Reforms and changes in the sector have addressed legacy issues such as non-performing assets (NPAs), making the banking system more resilient.
- Internal Accruals: The internal accruals have become a significant source of growth capital for banks, enhancing their financial stability.
- Technological Advancements: Banks in India have moved away from traditional, brick-and-mortar models to embrace advanced technology. Products such as mobile banking apps, UPI, Aadhaar e-KYC, and digital payment systems have transformed the banking landscape.
The role of artificial intelligence (AI)
- Knowledge-Based Regime: India’s banking system is undergoing a transition toward a knowledge-based regime, primarily driven by AI and cognitive computing technologies. This shift represents a move away from traditional banking practices toward more data-driven and intelligent operations.
- Personalization of Customer Engagement: AI is enabling banks to personalize customer engagement. Through AI-powered capabilities, banks can gain a deeper understanding of individual customer preferences and needs. This personalization enhances the overall customer experience.
- Deeper Understanding of Customers: AI facilitates a more profound insight into customers’ behaviors and financial needs. By analyzing data and utilizing machine learning algorithms, banks can develop a comprehensive understanding of their customers, allowing for more targeted services.
- Adaptation to a Changing Business Environment: In a landscape characterized by constant change, AI serves as a valuable tool for ensuring banks remain agile and responsive to shifting demands.
- Challenges and Opportunities: While AI presents significant opportunities for banks, it also poses challenges. Banks must address issues related to data privacy, ethical considerations, and the potential biases inherent in AI algorithms.
- Key to Future Success: AI will be a pivotal factor in differentiating successful banks in the coming years. Banks that effectively harness AI technologies are likely to maintain their competitiveness and adapt to the changing demands of customers and the business landscape.
What are the Challenges?
- Digitalization Challenges: The digitalization of banking services has introduced several challenges. These include the proliferation of unregulated digital lending apps, the emergence of cryptocurrencies, and the risk of cyberattacks.
- Cybersecurity Risks: There is a need to address cybersecurity risks. As digitalization advances, banks are increasingly vulnerable to cyber threats and attacks.
- Critical Support Infrastructure: With the increasing reliance on digital banking channels, ensuring the availability of critical support infrastructure becomes paramount. This encompasses maintaining secure payment settlement systems, safeguarding ATMs, and ensuring the continuity of internet and mobile banking services.
- Data Challenges: As banks increasingly rely on data for decision-making and personalization, addressing methodological and data challenges is essential. Ensuring data accuracy, security, and compliance with privacy regulations is a responsibility that banks must prioritize.
Way forward
- Customer Grievances: The digital banking era comes with added responsibilities related to addressing customer grievances efficiently. Banks must establish mechanisms to handle and resolve customer complaints promptly to ensure the uninterrupted delivery of banking services.
- Regulator frameworks: These digitalization-related challenges require banks to adopt robust security measures and regulatory frameworks to protect both customers and the financial system.
- Climate Change Imperative: Initiatives for decarbonization present opportunities in renewables, green hydrogen, and green goods trade. Banks are expected to be major financiers in combating climate change, necessitating robust risk management practices.
- Investment in Human Resources: In an ever-changing environment, the quality of human resources becomes a critical differentiator. Banks and financial institutions must attract, train, and retain talent while fostering adaptability and upskilling.
- Innovation and Governance: Financial services must invest in research and embrace out-of-the-box ideas for seamless service delivery and product personalization. Governance remains the backbone of institutions and is crucial for financial stability.
Conclusion
- India’s banking sector has endured and evolved, emerging from a challenging decade more resilient and adaptable. With a focus on robust governance, innovation, and a growing domestic market, it is poised to play a crucial role in India’s journey towards an Atmanirbhar Bharat, promoting equitable and sustainable development.
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