Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- I2U2
Context
The first summit this week of I2U2, which brings together India, Israel, the United Arab Emirates and the United States – is exploratory in nature.
I2U2 forum
- Following the Abraham Accords between Israel and the UAE, I2U2 was founded in October 2021 to address marine security, infrastructure, and transportation challenges in the region.
- It was known as the ‘International Forum for Economic Cooperation’at the time. At that time, UAE had referred to the new grouping as the ‘West Asian Quad’.
- I2U2 seeks to empower the partners and encourages them to collaborate more closely, resulting in a more stable region.
- India is seen as a large consumer market as well as a large producer of high-tech and highly sought-after items in the United States.
- This has led India to enhance its relationship with Israel without jeopardising its ties with the UAE and other Arab states.
How I2U2 matters to India
- India can contribute to peace and prosperity in the region: The initiative signifies the US bet that India can contribute significantly to peace and prosperity in the region.
- West Asian engagement: It also underlines a new political will in Delhi to break the old taboos on India’s West Asian engagement.
- Consolidation of India’s Middle East Policy: The I2U2 marks the consolidation of a number of new trends in India’s Middle East policy that acquired greater momentum in the past few years.
- What stands out sharply in India’s new thinking in the Middle East is that the summit involves three countries that Delhi had traditionally kept a safe political distance from.
India-Israel relations
- Although India was one of the first countries to extend recognition to Israel in 1950, Jawaharlal Nehru held back from establishing full diplomatic relations with the Jewish state.
- PV Narasimha Rao reversed that policy in 1992 but he did not travel to Israel nor did he receive an Israeli prime minister.
- Atal Bihari Vajpayee of the BJP, which had a more empathetic view of Israel, hosted Israeli PM Ariel Sharon in 2003.
- While the relationship steadily expanded, there was ideological reluctance in Delhi to give the partnership a political profile.
- In the past few years India imparted a political character to the Israel ties.
- No backlash from the Arab countries: There was little negative reaction to the more open pursuit of India’s ties with Israel.
- The problem was never with the Middle East but Delhi’s ideological preconceptions that distorted India’s view of the region.
- Turkey, now a champion of political Islam, had diplomatic ties with Israel since 1949.
- Egypt normalised ties in 1980.
- Under the Abrahamic accords promoted by the Trump Administration, the UAE, Bahrain, Sudan and Morocco set up formal ties with Israel in 2020.
India’s relations with the Arab countries
- India’s engagement with Israel was matched by effort to deepen India’s ties with the Arab world.
- During his first visit to Israel in 2018, Prime Minister Mode also became the first Indian PM to visit Palestine.
- Even more important has been the transformation of India’s relations with the Gulf Kingdoms, especially the UAE and Saudi Arabia.
- India’s traditional preference in the Arab world was for engaging the republics.
- Engagement with monarchies: Delhi remained wary of engagement with the monarchies, telling itself that they were pro-Pakistan.
- No Indian PM visited Saudi Arabia between 1982 and 2010 and UAE between 1981 and 2015.
- After 2015 India developed strong ties with these governments without a reference to Pakistan.
- Despite Delhi’s ideological posturing, the Middle East had long ceased to be a political priority for India.
- In contrast with the past, recently the prime minister has travelled four times to the UAE alone, negotiated a free trade agreement with it, and has ambitious plans for the transformation of bilateral relations.
- The UAE has also backed India’s 2019 constitutional changes in Kashmir and is ready to invest in the union territory.
Change in India’s approach to the region
- India-US ties: For political Delhi, the US and Western policies in the region were a main part of the problem.
- The immediate focus of Nehru’s policy after independence was to actively oppose US moves in the region in the name of promoting an “area of peace”.
- That policy had no lasting impact as many regional countries sought active economic, political, and security cooperation with the US and the West.
- The I2U2 then marks a big break from the anti-Western tradition in India’s approach to the region.
- Negotiating the terms of joint engagement: In the past, standing up to the West in the Middle East was part of India’s approach, India now is prepared to confidently negotiate the terms of a joint engagement.
Conclusion
India’s participation in the West Asian Quad brings Delhi in line with other major powers– including Europe, China, and Russia – to try and engage all parties in the region. The I2U2 sets the stage for a new and dynamic phase in India’s relations with the Middle East.
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Back2Basics: Abraham Accords
- The Israel–UAE normalization agreement is officially called the Abraham Accords Peace Agreement.
- It was initially agreed to in a joint statement by the United States, Israel and the United Arab Emirates (UAE) on August 13, 2020.
- The UAE thus became the third Arab country, after Egypt in 1979 and Jordan in 1994, to agree to formally normalize its relationship with Israel as well as the first Persian Gulf country to do so.
- Concurrently, Israel agreed to suspend plans for annexing parts of the West Bank.
- The agreement normalized what had long been informal but robust foreign relations between the two countries.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rupee Settlement System for International Trade
Mains level: Read the attached story
RBI has decided to put in place an additional arrangement of international trade for invoicing, payment, and settlement of exports / imports in INR.
- Banks acting as authorised dealers for such transactions would have to take prior approval from the regulator to facilitate this.
- All exports and imports under the invoicing arrangement may be denominated and invoiced in Rupee.
- Exchange rate between the currencies of the two trading partner countries may be market determined.
- Exporters and importers can now use a Special Vostro Account linked to the correspondent bank of the partner country for receipts and payments denominated in rupees.
- These accounts can be used for payments for projects and investments, import or export advance flow management, and investment in Treasury Bills subject to Foreign Exchange Management Act, 1999 (FEMA).
- Also, the bank guarantee, setting-off export receivables, advance against exports, use of surplus balance, approval process, documentation, etc., related aspects would be covered under FEMA rules.
Nostro and Vostro Accounts
- Nostro and vostro are terms used to describe the same bank account; the terms are used when one bank has another bank’s money on deposit.
- They are used to differentiate between the two sets of accounting records kept by each bank.
- Nostro comes from the Latin word for “ours,” as in “our money that is on deposit at your bank.”
- Vostro means “yours,” as in “your money that is on deposit at our bank.”
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Why such move?
- The rupee is at a historic low against the dollar.
- The mechanism is meant to facilitate trade with countries under sanction.
- Payments had become a pain point for exporters immediately after the Russia-Ukraine war broke out, especially after Russia was cut off from the SWIFT payment gateway.
- As a result of the trade facilitation mechanism, we see easing of payment issues with Russia.
- The move would also reduce the risk of forex fluctuation specially looking at the Euro-rupee parity.
- We see this as a first step towards 100% convertibility of rupee.
- It will also help stabilize rupee.
What does the change mean for exports?
- Several countries including Sri Lanka and some in Africa and Latin America are facing forex shortage.
- As such, the new mechanism will help India promote its exports.
- It will also help buy discounted crude oil from Russia, which now accounts for 10% of all imported crude.
Will the move help narrow trade deficit?
- The gap between India’s exports and imports widened to record highs.
- This puts pressure on the current account deficit, which some economists estimate would nearly double to more than 3% of GDP in FY23.
- RBI’s decision may not benefit the external account immediately, but over the medium term, demand for dollars may come down.
- This is partly because opening of new vostro accounts between banks may take some time.
Back2Basics: Currency Convertibility
- Convertibility is the ease with which a country’s currency can be converted into gold or another currency through global exchanges.
- It indicates the extent to which the regulations allow inflow and outflow of capital to and from the country.
- Currencies that aren’t fully convertible, on the other hand, are generally difficult to convert into other currencies.
- Having a convertible currency allows a government to pay for goods and services in a currency that may not be the buyer’s own.
Convertibility of Rupee
- In order to face the serious current account deficit in the balance of payments, the Government of India introduced the partial convertibility of rupee from March 1, 1992.
- This was an inevitable move for the expeditious integration of Indian economy with that of the world.
- Under this system, 60 per cent of the exchange earnings were convertible in rupees at market-determined exchange rate and the remaining 40 per cent were at the officially determined exchange rate.
- Current account convertibility relates to the removal of restrictions on payments relating to the international exchange of goals, services and factor incomes.
- Capital account convertibility refers to a similar liberalization of a country’s capital transactions such as loans and investment, both short term and long term.
A bit difficult, but pls take an effort to try this PYQ from CSP 2020:
If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India?
- Not depending on short-term foreign borrowings
- Opening up to more foreign banks
- Maintaining full capital account convertibility
Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 2 only
(c) 2 only
(d) 1, 2 and 3
Post your answers here. Detailed explanation will be provided.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mediation Bill
Mains level: Read the attached story
The Parliamentary Standing Committee on Law and Justice has recommended substantial changes to the Mediation Bill.
Mediation Bill, 2021
- Mediation is a voluntary dispute resolution process.
- It is an informal, confidential, flexible, and non-binding process in which an impartial person called a “mediator” helps the parties to understand the interests of everyone involved, and their practical and legal choices.
- The Bill requires persons to try to settle civil or commercial disputes through mediation before approaching any court or tribunal.
- Agreements resulting from mediation will be binding and enforceable in the same manner as court judgments.
Key features of the Bill
(1) Pre-litigation mediation
- Parties must attempt to settle civil or commercial disputes by mediation before approaching any court or certain tribunals.
- Even if they fail to reach a settlement through pre-litigation mediation, the court or tribunal may at any stage refer the parties to mediation if they request for the same.
(2) Disputes not fit for mediation
- The Bill contains a list of disputes which are not fit for mediation.
- These include disputes: (i) relating to claims against minors or persons of unsound mind, (ii) involving criminal prosecution, and (iii) affecting the rights of third parties.
- The central government may amend this list.
- It will apply to mediations conducted in India: (i) involving only domestic parties, (ii) involving at least one foreign party and relating to a commercial dispute (i.e., international mediation).
(3) Mediation process
- Mediation proceedings will be confidential, and must be completed within 180 days (may be extended by 180 days by the parties).
- A party may withdraw from mediation after two sessions.
- Court annexed mediation must be conducted as per the rules framed by the Supreme Court or High Courts.
(4) Mediators
- Mediators may be appointed by: (i) the parties by agreement, or (ii) a mediation service provider (an institution administering mediation).
- They must disclose any conflict of interest that may raise doubts on their independence.
- Parties may then choose to replace the mediator.
(5) Mediation Council of India
- The central government will establish the Mediation Council of India.
- The Council will consist of a chairperson, two full-time members (with experience in mediation or ADR), three ex-officio members (including the Law Secretary, and the Expenditure Secretary), and a part-time member from an industry body.
- Functions of the Council include: (i) registration of mediators, and (ii) recognising mediation service providers and mediation institutes (which train, educate, and certify mediators).
(6) Mediated settlement agreement
- Agreements resulting from mediation (other than community mediation) will be final, binding, and enforceable in the same manner as court judgments.
- They may be challenged on grounds of: (i) fraud, (ii) corruption, (iii) impersonation, or (iv) relating to disputes not fit for mediation.
(7) Community mediation
- This may be attempted to resolve disputes likely to affect the peace and harmony amongst residents of a locality.
- It will be conducted by a panel of three mediators (may include persons of standing in the community, and representatives of resident welfare associations).
Issues highlighted by the Parliamentary Committee
- Compulsion: The panel cautioned against making compulsory pre-litigation mediation.
- Scope for Delay: Making pre-litigation mediation mandatory may actually result in delaying of cases.
- Judicial intervention: The provision to give higher courts the power to frame rules for mediation was also questioned.
- Narrower scope: The members questioned the non-applicability of the provisions to non-commercial disputes involving the Government and its agencies.
- No bar of experienced professionals: The MCI, established to regulate the profession of mediators, may not have representation of practising mediators with adequate experience.
- Prior approval from centre: The MCI requires prior approval from the central government before issuing regulations related to its essential functions. It is not clear why such prior approval is required.
- Domestic conduct of mediation: The Bill applies to international mediations only if they are conducted in India and not outside.
Why need a law on Mediation?
- Fast: Because the amount of time necessary for the parties and therefore the Mediator to organize for the mediation is significantly way less as that needed for trial or arbitration, a mediation of dispute can occur relatively early.
- Flexible: There exists no set formula for mediation. Different Mediators employ different styles. Procedures are often modified to satisfy the requirements of a specific case.
- Cost Efficient: Because mediation generally requires less preparation, is very less formal than trial or arbitration, and may occur at an early stage of the dispute.
- Brings Parties Together: Parties can save and sometimes rebuild their relationship like during a family dispute or commercial dispute.
- Convenient: The parties can control the time, location, and duration of the proceedings to large extent. Scheduling isn’t subject to the convenience of courts.
- Creative: Resolutions that aren’t possible through arbitration or judicial determination could also be achieved.
- Confidential: What’s said during mediation are often kept confidential. Parties wishing to avoid the glare of publicity can use mediation to stay their disputes low-key and personal
- Control: The parties control the result of the mediation and either party has the advantage of terminating the mediation, if it’s felt that it’s not within the interest of the said party.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pardoning Powers of president and governor
Mains level: Not Much
The Supreme Court has held that the Centre was “bound to advise” the President to remit the life sentence of gangster Abu Salem in the 1993 Mumbai blasts case on his completion of 25 years of his jail term.
What did the SC say?
- On the appellant completing 25 years of his sentence, the Central government is bound to advise the President for the exercise of his powers under Article 72 of the Constitution.
- The Centre could itself consider remission on the completion of 25 years’ sentence in terms of Sections 432 and 433 of the Code of Criminal Procedure.
What is Pardon?
- A pardon is a government/executive decision to allow a person to be absolved of guilt for an alleged crime or other legal offense as if the act never occurred.
Why need Pardon?
- Pardons can be granted when individuals are deemed to have demonstrated that they have “paid their debt to society”, or are otherwise considered to be deserving of them.
- Pardons are sometimes offered to persons who were either wrongfully convicted or who claim that they were wrongfully convicted.
- Pardons are sometimes seen as a mechanism for combating corruption, allowing a particular authority to circumvent a flawed judicial process to free someone that is seen as wrongly convicted.
What is the Article 72?
- Article 72 says that the president shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offense.
- There are five different types of pardoning:
- Pardon: means completely absolving the person of the crime and letting him go free. The pardoned criminal will be like a normal citizen.
- Commutation: means changing the type of punishment given to the guilty into a less harsh one, for example, a death penalty commuted to a life sentence.
- Reprieve: means a delay allowed in the execution of a sentence, usually a death sentence, for a guilty person to allow him some time to apply for Presidential Pardon or some other legal remedy to prove his innocence or successful rehabilitation.
- Respite: means reducing the quantum or degree of the punishment to a criminal in view of some special circumstances, like pregnancy, mental condition etc.
- Remission: means changing the quantum of the punishment without changing its nature, for example reducing twenty year rigorous imprisonment to ten years.
Cases as specified by art. 72
In all cases where the punishment or sentence:
- is by a court-martial
- is for an offence against any law relating to a matter to which the executive power of the Union extends
- is a sentence of death
Nature of the Pardoning Power
- The pardoning power of the president is not absolute. It is governed by the advice of the Council of Ministers.
- This has not been discussed by the constitution but is the practical truth.
- Further, the constitution does not provide for any mechanism to question the legality of decisions of presidents or governors exercising mercy jurisdiction.
- But the SC in Epuru Sudhakar Case has given a small window for judicial review of the pardon powers of President and governors for the purpose of ruling out any arbitrariness.
- The court has earlier held that court has retained the power of judicial review even on a matter which has been vested by the Constitution solely in the Executive.
Some traditions
- It is important to note that India has a unitary legal system and there is no separate body of state law.
- All crimes are crimes against the Union of India.
- Therefore, a convention has developed that the governor’s powers are exercised for only minor offenses.
- While requests for pardons and reprieves for major offenses and offenses committed in the UTs are deferred to the President.
Try this PYQ:
Who/Which of the following is the custodian of the Constitution of India?
(a) The President of India
(b) The Prime Minister of India
(c) The Lok Sabha Secretariat
(d) The Supreme Court of India
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: World Population Prospects (WPP)
Mains level: Global population trends
The 2022 edition of the United Nations’ World Population Prospects (WPP) was released.
Why in news?
- India is projected to surpass China as the world’s most populous country in 2023.
What is the World Population Prospects?
- The Population Division of the UN has been publishing the WPP in a biennial cycle since 1951.
- Each revision of the WPP provides a historical time series of population indicators starting in 1950.
- It does so by taking into account newly released national data to revise estimates of past trends in fertility, mortality or international migration.
Main takeaways for the global population
(1) Slow pace of growth
- The world’s population continues to grow, but the pace of growth is slowing down.
- The global population is expected to grow to around 8.5 billion in 2030, 9.7 billion in 2050 and 10.4 billion in 2100.
- In 2020, the global growth rate fell under 1% per year for the first time since 1950.
(2) Region-wise differential
- Rates of population growth vary significantly across countries and regions.
- More than half of the projected increase in global population up to 2050 will be concentrated in just eight countries- Congo, Egypt, Ethiopia, India, Nigeria, Pakistan, the Philippines and Tanzania.
- Disparate growth rates among the world’s largest countries will re-order their ranking by size.
(3) Ageing population
- The population of older persons is increasing both in numbers and as a share of the total.
- The share of the global population aged 65 years or above is projected to rise from 10% in 2022 to 16% in 2050.
- The report suggests measures for ageing population by improving the sustainability of social security and pension systems and by establishing universal health care and long-term care systems.
(4) Decline in fertility rate
- A sustained drop in fertility has led to an increased concentration of the population at working ages (between 25 and 64 years), creating an opportunity for accelerated economic growth per capita.
- This shift in the age distribution provides a time-bound opportunity for accelerated economic growth known as the “demographic dividend”.
(5) International migration
- This is having important impacts on population trends for some countries.
- For high-income countries between 2000 and 2020, the contribution of international migration to population growth (net inflow of 80.5 million) exceeded the balance of births over deaths (66.2 million).
- Over the next few decades, migration will be the sole driver of population growth in high-income countries.
- In many of these countries, the outflows were due to temporary labour movements, such as for Pakistan (net flow of -16.5 million), India (-3.5 million), Bangladesh (-2.9 million), Nepal (-1.6 million) etc.
How reliable is the UN projection, and how do they compare with India’s Census?
- In India, of course, the Registrar General comes out with a population projection based on the Census.
- The last such projection was released in 2019 and it was based on Census 2011.
- The Census projection is slightly lower than the UN projection.
- Still UN projection is widely acknowledged across the world
What is the significance of India overtaking China?
- That India would overtake China has been known for a while.
- Moreover, in the past, when the world population was still at 5-billion or 6-billion levels, there was a concern about overcrowding.
- Those concerns no longer exist because the global population is already 8 billion and several countries (including India) have achieved a replacement rate of fertility.
- The concern now is not about the absolute numbers — India’s population is already 1.4 billion and may go up to 1.6 billion before declining.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nord Stream Pipelines
Mains level: NA
The Nord Stream 1, Germany’s main source of gas from Russia, was recently shut down for scheduled maintenance work.
Why in news?
- There are growing concerns in European countries that Russia would shut down its gas supplies in retaliation against the current sanctions against Moscow.
What is Nord Stream 1?
- It is a system of offshore natural gas pipelines running under the Baltic Sea from Russia to Germany.
- Nord Stream 1 is a 1,224 km underwater gas pipeline that runs from Vyborg in northwest Russia to Lubmin in northeastern Germany via the Baltic Sea.
- Two further pipelines under construction running from Ust-Luga to Lubmin termed Nord Stream 2.
- Majority owned by the Russian energy giant Gazprom, the pipeline is the primary route through which its gas enters Germany.
Worry for Europe
- There have been growing concerns that there could be further restrictions to European gas supplies.
- European countries rely on Russian energy for their cold winters.
- But now they believe that Russia could weaponized their dependency as a response to their sanction due to the conflict in Ukraine.
What are Europe’s alternative sources of energy?
- As an alternative source for energy, European countries have increasingly turned towards the US, from whom they purchase liquified natural gas (LNG) that comes via ships.
- Since ship-delivered gas ends up being far more expensive, there are also attempts to get non-Russian pipeline gas from Norway and Azerbaijan.
- While EU countries were earlier seeking to phase out fossil fuels and emphasize renewable forms of energy, many are now returning to coal to deal with the energy crisis.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Patriot Missile System
Mains level: Paper 3- Indigenisation in defence technology
Context
Perturbed by India’s reluctance to condemn the Russian invasion of Ukraine and keen to bind the country closer in confronting China, Western governments have launched a fresh push to wean India, the world’s biggest importer of arms, off its long dependence on Russian weaponry.
India’s concerns after Ukraine war
- India has grown increasingly alarmed about China, following deadly border clashes in 2020.
- Since the war in Ukraine began, it has also worried about Russia’s reliability as an arms supplier and about the quality of some of its weapons.
- Diversification away from Russia: India, though insistent that it has every right to choose its own suppliers, is already diversifying away from Russia.
- The share of weapons it imports from Russia has fallen sharply, to around 50% between 2016 and 2021, down from 70% during the previous five-year period.
- Western help for diversification: It has welcomed Western help in fulfilling its ambition to make more of its own weapons.
Joint arms production plan
- As the West cannot compete with Russia on price and remain reluctant to share their most cutting-edge technology, they are counting on joint arms production.
- Western leaders have been vocal about their willingness to help India arm itself.
- At a ministerial meeting in Washington in April, American officials discussed helping India to make advanced weapons, including reconnaissance aircraft and a system for combating aerial drones.
- On visits to Delhi that month, Boris Johnson, Britain’s prime minister, and Ursula von der Leyen, the European Commission’s president, also proposed joint arms ventures.
- Despite avowed interest from both sides, such a shift faces many challenges.
Challenges
- Dominance of PSUs: India’s arms industry, technically open to private investment since 2001, has long been hampered by the dominance of a small number of state-owned giants such as Hindustan Aeronautics Limited (HAL).
- Inefficiencies: State-owned arms-makers remain notoriously inefficient.
- They also retain long-running tie-ups with Russia, making Western governments wary of accepting India’s demands for the transfer of more advanced technology.
- Low presence of private sector: The share of defence production in the hands of the private sector, which is a more natural partner for big Western defence manufacturers, is about a fifth—scarcely higher than it was five years ago.
- Lack of industrial capacity and skill: Both the state and private sector still lack the industrial capacity and skilled workers to produce highly specialised defence technology at scale—especially military aircraft.
- Trust issue: While Western companies worry about inadvertent technology transfers to Russia, India worries about the reliability of its Western partners.
- Past record: Many see America, which in the past has imposed sanctions on India for its nuclear-weapons programme, as a fickle supplier.
- More recently America refused to sell India its Patriot missile system, prompting India to fall back on a Russian alternative and thereby put itself at risk of American sanctions once more.
Way forward
- Liberalisation of defence sector: As a step to liberalise the industry as part of his push towards self-reliance, in 2020 India raised the limit on foreign ownership of defence firms from 49% to 74%.
- Ordinance Factory Board was dissolved into small units to corporatize the entity.
- Lockheed Martin, a big American defence manufacturer, last year approved the manufacture of wings for the f-16 fighter jet by its joint venture with Tata.
- The company has also pledged to produce a more advanced fighter, the f-21, in India, provided it wins a multi-billion-dollar contract to supply 114 fighter jets.
- Big deals like those would provide incentives for foreign governments to approve more technology transfer and for Western manufacturers to make the investments needed to spur India’s indigenisation drive.
Conclusion
Russia’s war and China’s muscle-flexing have opened a door for India and the West to walk through, but crossing the threshold will require some resolve on both sides.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GST compensation to States
Mains level: Paper 3- GST compensation discontinuation
Context
The five-year transition period after the adoption of the Goods and Services Tax (GST) on July 1, 2017, came to an end on June 30, 2022. With this, the era of GST compensation that the state governments were entitled to has ended.
High estimated loan issuance
- Many state governments have asked for the compensation period to be extended by a few years.
- To tangibly assess the near-term outlook for state finances, we have to rely on the states’ own estimates for their market borrowing requirements for the second quarter of 2022-23.
- The indicative calendar of market borrowings by 23 state governments and two Union territories for the second quarter has pegged their total state development loan issuance — the primary source of financing state government deficits — at Rs 2.1 trillion.
- This projected issuance is 29 per cent higher than the same period last year, and at an eight-quarter high.
- This high level of issuance projected by states reflects concerns that some of them might rightfully have regarding the uncertainty of their cash flows in the post-GST compensation era.
- High dependence on GST compensation: Of these 23 states, Tamil Nadu, Andhra Pradesh, Haryana, Punjab and Gujarat have indicated large increases in borrowings.
- Most of these states have an above-average dependence on GST compensation.
Implications of discontinuation of GST compensation
- Alter the revenue compensation: The discontinuation of the GST compensation flows would alter the revenue composition of some states adversely, particularly those with a relatively larger share of such receipts in their overall revenue streams.
- Increase in debt level: To offset a portion of the associated revenue loss, such states are likely to enhance their borrowings and/or to undertake some expenditure adjustments in the quarters ahead.
Adjustment of borrowing limit of the States by the Centre
- At the time of communicating to states their annual borrowing limits for the ongoing year, we understand that the Centre had informed state governments that their off-budget borrowings for the past two years (2020-21 and 2021-22) would be adjusted from their borrowing ceiling this year.
- Data on off-budget borrowing: It appears that the calculation of the adjusted borrowing limit required the submission of detailed data by the state governments related to their off-budget borrowings for the last two fiscal years, followed by a thorough assessment of the same by the Centre.
Need for early step up in tax-devolution
- On the whole, though, states appear to have entered the year with a comfortable cash flow position.
- This follows from the back-ended release of the tax devolution to states for 2021-22 — nearly half of the full-year amount was released in the fourth quarter.
- Additionally, the total amount was also well above the revised estimate, providing an unexpected gain to states.
- This may have allowed them to temporarily withstand the changes related to their borrowing permission.
- Subsequently, the release of the GST compensation grant of Rs 869 billion for several months in May is likely to have further eased their cash flows.
- If the government does decide to step-up tax devolution to the states in the near term, instead of back-ending it as was done in the last year, it may reduce the size of state borrowings in the second quarter.
- But more significantly, such revenue certainty, despite the end of the GST compensation era, may embolden states to ringfence their capital spending, providing a positive impulse to the economy.
Conclusion
The discontinuation of the GST compensation flows would alter the revenue composition of some states adversely, tax devolution to the states in the near term could cushion the blow of the discontinuation.
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Back2Basics: Compensation under GST regime
- The adoption of the GST was made possible by the States ceding almost all their powers to impose local-level indirect taxes and agreeing to let the prevailing multiplicity of imposts be subsumed under the GST.
- While the States would receive the SGST (State GST) component of the GST, and a share of the IGST (Integrated GST), it was agreed that revenue shortfalls arising from the transition to the new indirect taxes regime would be made good from a pooled GST Compensation Fund for a period of five years that is set to end in 2022.
- This corpus in turn is funded through a compensation cess that is levied on so-called ‘demerit’ goods.
- This GST Compensation Cess or GST Cess is levied on five products considered to be ‘sin’ or luxury as mentioned in the GST (Compensation to States) Act, 2017 and includes items such as- Pan Masala, Tobacco, and Automobiles etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Labour productivity and roads
Context
The commute time for the labour force to the workplace plays a very important role in determining their productivity in cities.
Issue of long travel time to work
- Labour market: Cities are labour markets where the labour force exchanges their labour and creates knowledge spillovers.
- Relation between commute time and productivity: The commute time for the labour force to the workplace plays a very important role in determining their productivity in cities.
- The longer the commute time in a city, the smaller is its effective labour market and vice-versa.
- Difference between nominal and effective labour market: While the nominal labour market of the city refers to all jobs created in the metropolitan area, the effective labour market refers to the jobs accessible within a certain commute.
- Importance of effective labour market: The larger a city’s effective labour market, the greater its agglomeration economies and knowledge spillovers will be.
- From the viewpoint of enlarging a city’s effective labour market and economic output, it is therefore very important to keep the commute time short and commuting cost cheap within a city as it keeps growing in population.
Way forward
- One way in which urban local bodies (ULBs) directly impact the city’s economic output is through their infrastructure.
- Increase in tax base: Road length has a positive effect on the city’s tax base.
- Motivation to pay texes: This is because roads lead to easy access to jobs and increased economic activity; that also gives the public more confidence and motivation to pay taxes.
- Cities should not view investment in road networks as expenditure; rather, roads add to the city’s revenue base which the city can use to improve infrastructure and public services.
Conclusion
Investing in roads not only reduces travel time and enlarges effective labour markets of cities and their economic output, but also improves access to schooling for children as well as healthcare, thereby upgrading human development. This is indeed the road to the $5 trillion economy along with improvement in human well-being.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Environment Protection Act (EPA), 1986
Mains level: Read the attached story
The Ministry of Environment, Forest and Climate Change (MoEFCC), put out a note, proposing amendments in the Environment (Protection) Act, 1986.
Environment Protection Act (EPA), 1986
- EP Act was passed under Article 253 of the Constitution, which empowers the Centre to enact laws to give effect to international agreements signed by the country.
- The purpose of the Act is to implement the decisions of the UN Conference on the Human Environment.
- They relate to the protection and improvement of the human environment and the prevention of hazards to human beings, other living creatures, plants and property.
- It was enacted in 1986 on the backdrop of Bhopal Gas Tragedy.
- The Act was last amended in 1991.
Why this Act?
- The Act is an “umbrella” legislation that has provided a framework for the environmental regulation regime in India.
- It covers all major industrial and infrastructure activities and prohibits and regulates specific activities in coastal areas and eco-sensitive areas.
- The Act also provides for coordination of the activities of various central and state authorities established under other environment-related laws, such as the Water Act and the Air Act.
What are the proposed amendments?
- The Environment Ministry has proposed amendments in four key legislations:
- Environment (Protection) Act, 1986
- Water (Prevention and Control of Pollution) Act, 1974
- Air (Prevention and Control of Pollution) Act, 1981 and
- Public Liability Insurance (PLI) Act, 1991
- These are the cornerstone environmental laws that led to the setting up of the Central Pollution Control Board (CPCB).
- These laws empowered the CPCB to take criminal action against individuals and corporate bodies who pollute air, water and land.
Powers given to CPCB by these Laws
- The clutch of laws currently empowers the CPCB to either:
- Shut down a polluting industrial body or
- Imprison executives of an organization found to be environmental violators
- The EPA currently says that violators face imprisonment up to five years or a fine up to ₹1 lakh or both.
- There’s also a provision for the jail term to extend to seven years.
Purpose of the Amendments
- The Environment Ministry had received suggestions to decriminalise existing provisions of the EPA to weed out “fear of imprisonment for simple violations.”
- These, however, don’t apply to violations that cause grave injury or loss of life.
How will violators be punished?
- The changes proposed include the appointment of an ‘adjudication officer’.
- He/She will decide on the penalty in cases of environmental violations such as reports not being submitted or information not provided when demanded.
- Funds collected as penalties would be accrued in an “Environmental Protection Fund.”
- In case of contraventions of the Act, the penalties could extend to anywhere from 5 lakh to 5 crore, the proposal notes.
Need for such amendments
- Limited success of existing laws: The history of environmental action and its success in India shows that the current laws have had limited effectiveness.
- Backlog of cases: An analysis by the Centre for Science and Environment found that Indian courts took between 9-33 years to clear a backlog of cases for environmental violations.
- Capitalist power: Myriad challenges dogged the process of bringing violators to book.
- Red tapism: Flag pollution from an industrial unit would mean filing a complaint with the court of the concerned DM, or furnishing evidence to the CPCB which would again have to approach the same institution.
- Burden of proof: In most cases, it was practically impossible to hold a specific individual in an organization responsible for a specific crime given the burden of proof required.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mission Vatsalya
Mains level: Read the attached story
In order to access Central funds and benefits under Mission Vatsalya (an umbrella scheme for child protection services in the country), the centre has issued certain guidelines.
What is Mission Vatsalya?
- Mission Vatsalya promotes family-based non-institutional care of children in difficult circumstances based on the principle of institutionalization of children as a measure of last resort.
- It is one of the new triad of schemes along with Mission Shakti, and Poshan 2.0, that aims at securing a healthy and happy childhood for every child.
Components under the mission include:
- Improve the functioning of statutory bodies;
- Strengthen service delivery structures;
- Upscale institutional care/services;
- Encourage non-institutional community-based care;
- Emergency outreach services;
- Training and capacity building.
Implementation
- It will be implemented as a Centrally Sponsored Scheme in partnership with state governments and UT administrations, with a fund-sharing pattern in a 60:40 ratio.
- However, for the eight states in the Northeast — as well as Himachal Pradesh, Uttarakhand and the UT of J&K — the Centre and state/UT’s share will be 90:10.
- The Centre will cover the whole cost in UTs without a legislature.
What are the new guidelines?
(1) Official changes
- States will have to retain the official name, as given by the Centre. Only a correct translation to local language is permissible.
- The centre detailed the process by which funds will be disbursed to states under various heads by defining institutionalised arrangements.
- Funds to states will be approved through the Mission Vatsalya Project Approval Board (PAB), which will be chaired by the Secretary of the Ministry of WCD.
- The Secretary will scrutinise and approve annual plans and financial proposals received from states and UTs for release of grants.
(2) Special arrangements
- States/UTs have also been directed to focus on special needs children with physical or mental disabilities.
- Institutions now have to provide special educators, therapists and nurses to impart occupational therapy, speech therapy, verbal therapy and other remedial classes.
- The staff in these special units will have to know sign language, Braille, etc, according to the new guidelines.
(3) Newly shouldered tasks
- The guidelines state that Mission Vatsalya will support State Adoption Resource Agencies (SARA), which will support the Central Adoption Resource Authority (CARA).
- This move aims at promoting in-country adoption and regulating inter-country adoption.
- Mission Vatsalya, in partnership with states and districts, will execute a 24×7 helpline service for children, as defined under JJ Act, 2015.
Name change saga: Child Protection Services Scheme
- Before 2009, three schemes were being implemented under the WCD Ministry for children in need of protection:
- Programme for juvenile justice for children in need of care and protection, and children in conflict with law;
- Integrated programme for street children and
- Scheme for assistance to homes for children
- These were clubbed in 2010 into a single scheme called the Integrated Child Protection Scheme.
- It was then renamed “Child Protection Services” Scheme in 2017, and again as Mission Vatsalya in 2021-22.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ashokan edicts, Stupa Architecture
Mains level: NA
Left almost unattended to for 20 years after excavation, the ancient Buddhist site on the bank of Bhima river near Kanaganahalli (forming part of Sannati site) in Kalaburagi district, has finally got some attention.
About Sannati
- Sannati is a small village on the banks of the River Bhima in Chittapur Taluka of Kalaburagi (Gulbarga).
- It came into prominence after the collapse of the roof of the Kali temple in Chandralamba temple complex in 1986.
- The collapse revealed the historically valuable Ashokan edicts written in Prakrit language and Brahmi script at the foundations of the temple, attracting historians from across India.
- While the Stupa is believed to be one of the largest of its time.
- The stone-portrait is considered to be the only surviving image of the Mauryan Emperor which had the inscription ‘Raya Asoko’ in Brahmi on it.
Significance of Sannati
- Further revelations led to the discovery of the magnificent Maha Stupa, which had been referred to as Adholoka Maha-Chaitya (The Great Stupa of the Netherworlds) in the inscriptions.
- More importantly, a sculpture-portrait of Ashoka seated on his throne with his queens was also discovered.
- Historians believe that the Sannati Ranamandal (war zone) was a fortified area spread over 210 acres, of which only a couple of acres have been excavated so far.
Try this PYQ:
In which of the following relief sculpture inscriptions is ‘Ranyo Ashokan’ (King Ashoka) mentioned along with the stone portrait of Ashoka?
(a) Kanganahalli
(b) Sanchi
(c) Shahbazgarhi
(d) Sohgaura
Post your answers here.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NIXI
Mains level: Not Much
Two new Internet Exchange points (IXP) of NIXI were inaugurated at Durgapur and Bardhman.
What is NIXI?
- NIXI is a not for profit Organization under section 8 of the Companies Act 2013 and was registered on 19th June 2003.
- It’s an initiative under Ministry of Electronics and Information Technology (MeitY) vision 1000 days.
- It aims for spreading the internet infrastructure to the citizens of India through the following activities:
- Internet Exchanges through which the internet data is exchanged amongst Internet Service Protocols (ISPs), Data Centers and CDNs.
- .IN Registry, managing and operation of .IN country-code domain and .भारत IDN domain for India.
- Indian Registry for Internet Names and Numbers (IRINN), managing and operating Internet protocol (IPv4/IPv6).
Why NIXI?
- NIXI was set up for peering of Internet Service Protocols (ISPs) among themselves for the purpose of routing the domestic traffic within the country, instead of taking it all the way to US/Abroad.
- It is thereby resulting in better quality of service (reduced latency) and reduced bandwidth charges for ISPs by saving on International Bandwidth.
- NIXI is managed and operated on a Neutral basis, in line with the best practices for such initiatives globally.
Utility of NIXI
- The launch of these new NIXI internet exchanges will contribute to the enhancement and improvement of Internet and Broadband services at local level and in neighbouring regions.
- The internet service providers connecting at these points will benefit as their broadband services to their end users will improve, bringing about a change in the lives of the people of the region.
- It will benefit every sector of the state ranging from health, education, agriculture, startup, and ecosystem to MSMEs & other business verticals.
- Accessibility and convenience will increase for citizens in terms of availing government benefits and improving quality of life.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Singalila National Park, Red Panda
Mains level: NA
The Singalila National Park, the highest protected area in West Bengal, will soon wild Red Panda.
Singalila National Park
- Singalila National Park is located on the Singalila Ridge at an altitude of more than 7000 feet above sea level, in the Darjeeling district of West Bengal.
- It is well known for the trekking route to Sandakphu that runs through it.
- The Singalila area in Darjeeling was purchased by the British Government from Sikkim Durbar in 1882, and notified a Reserve Forest under the Indian Forest Act 1878.
- It was notified as a National Park in 1992 and was also officially opened up for tourism.
Why introduce Red Panda?
- The number of red pandas has been declining in the wild, even in the Singalila and Neora Valley National Parks, the two protected areas where the mammal is found in the wild in West Bengal.
- Recent studies estimate that there are 38 of them in Singalila and 32 in Neora.
- The zoological park who is at the centre of the Red Panda Augmentation Programme.
- Conservation breeding of red pandas is only one part of the programme.
About Red Panda
IUCN Red List: Endangered
- The red panda (Ailurus fulgens), also known as the lesser panda, is a small mammal native to the eastern Himalayas and southwestern China.
- It was first formally described in 1825.
- The red panda inhabits coniferous forests as well as temperate broadleaf and mixed forests, favouring steep slopes with dense bamboo cover close to water sources.
- It is solitary and largely arboreal.
- It feeds mainly on bamboo shoots and leaves, but also on fruits and blossoms.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- India- Japan ties
Context
The article recounts the contribution of Japan’s former Prime Minister Shinzo Abe in strengthening India-Japan ties.
Indo-Japan ties: Background
- Japan-India ties are 70 years old this year.
- For the first five post-war decades of the 20th century, bilateral ties were friendly.
- India was not among the signatories of the 1951 San Francisco Peace Treaty, which brokered post-war relations between the defeated Axis power and the Allies.
- Instead, Delhi established an independent peace treaty and bilateral relations with Japan.
- Nehru’s decision to accept Japanese Overseas Development Aid, the first country to do so, also generated a lot of goodwill in the bilateral relationship. Several collaborations took place.
- But it was only in the 21st century that bilateral ties climbed up to the next level.
India-Japan ties during Shinzo Abe’s premiership
- While Prime Ministers Yoshiro Mori had signed the Global Partnership for the 21st Century Agreement in 2000, to Abe goes much of the credit for the transformation of India-Japan ties in the last two decades.
- This period witnessed the Japanese funding for ambitious projects such as the Mumbai-Delhi Industrial Corridor and the Mumbai-Ahmedabad bullet train.
- The two countries upgraded the relationship to a Special Strategic and Global Partnership.
- After a waiver to India from the Nuclear Suppliers Group following the India-US civil nuclear deal, Abe — and his Liberal Democratic Party successors — had begun to consider a similar deal with India, and a round of negotiations was held in that period.
- The deal was eventually signed in 2016, and became operational a year later.
- It was during his tenure that the Japanese Maritime Self Defence Force (constitutionally, the Japanese military exists only for self-defence purposes) began naval exercises with friendly powers — India and Japan held their first naval exercise in December 2013 — and the country appointed its first National Security Advisor.
Conclusion
Abe believed that he was both destined and better equipped than many of his peers to play a transformational role in Japan’s politics and foreign affairs. He certainly achieved that with India. His passionate advocacy of closer ties with India will be missed.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India-Japan ties flourished under Mr. Abe
Shinzo Abe, the former Prime Minister of Japan, was shot dead.
Japan under Abe
- Abe, one of the most consequential leaders of Japan in its post-war history — was the country’s longest serving PM.
- During his time in office, Abe was a great friend of India, and a relationship that he invested personally in.
- He also had a special rapport with PM Modi, which came out on multiple occasions.
Transformation in India-Japan ties
(1) Personal visits
- During his first stint in 2006-07, Abe visited India and addressed Parliament.
- He visited India thrice: in January 2014, December 2015, and September 2017.
- No other Prime Minister of Japan has made so many visits to India.
- He was the first Japanese PM to be Chief Guest at the Republic Day parade in 2014.
(2) Bilateral talks
- The foundation for “Global Partnership between Japan and India” was laid in 2001, and annual bilateral summits were agreed in 2005, Abe accelerated the pace of ties since 2012.
- In August 2007, when Abe visited India for the first time as PM, he delivered the now-famous “Confluence of the Two Seas” speech — laying the foundation for his concept of Indo-Pacific.
- This concept has now become mainstream and one of the main pillars of India-Japan ties.
(3) Nuclear deal
- In September 2014, Modi and Abe agreed to upgrade the bilateral relationship to “Special Strategic and Global Partnership”.
- The relationship grew and encompassed issues from civilian nuclear energy to maritime security, bullet trains to quality infrastructure, Act East policy to Indo-Pacific strategy.
- When Modi went to Japan in 2014, the Indo-Japan nuclear deal was still uncertain, with Tokyo sensitive about a pact with a non-Nuclear-Proliferation-Treaty member country.
- Abe convinced the anti-nuclear hawks in Japan to sign the agreement in 2016.
(4) Defence cooperation
- While the security agreement was in place since 2008, under Abe the two sides decided to have Foreign and Defence Ministers’ Meeting (2+2).
- They started negotiations on the Acquisition and Cross-Servicing Agreement — a kind of military logistics support pact.
- In November 2019, the first 2+2 was held in New Delhi.
- A pact for transfer of defence equipment and technology was also signed in 2015, an uncommon agreement for post-War Japan.
(5) Indo-Pacific narrative
- During Abe’s tenure, India and Japan came closer in the Indo-Pacific architecture.
- Abe had spelt out his vision of the Confluence of the Two Seas in his 2007 speech when the Quad was formed.
- It collapsed soon, but in October 2017, as Chinese aggression grew in the Pacific, Indian Ocean, and India’s borders in Doklam, it was Abe’s Japan that really mooted the idea of reviving the Quad.
(6) Development cooperation
- During Abe’s visit in 2015, India decided to introduce the Shinkansen System (bullet train).
- Under Abe’s leadership, India and Japan also formed the Act East Forum and are engaged in projects in the Northeast, closely watched by China.
- The two countries also planned joint projects in Maldives and Sri Lanka among others to counter Beijing’s influence.
(7) Stand against China
- Since 2013, Indian and Chinese soldiers have had four publicly known border-stand-offs — April 2013, September 2014, June-August 2017, and the ongoing one since May 2020.
- Abe’s Japan has stood with India through each of them.
- During the Doklam crisis and the current stand-off, Japan has made statements against China for changing the status quo.
Conclusion: A leader India always missed
- Abe was a valuable G-7 leader for India, focused on strategic, economic and political deliverables, and not getting distracted by India’s domestic developments — much to New Delhi’s comfort.
- Having hosted Modi at his ancestral home in Yamanashi, the first such reception extended to a foreign leader, Abe was feted at a roadshow in Ahmedabad.
- Quite befittingly, the Indian government in January 2021 announced the Padma Vibhushan, the country’s second-highest civilian honour, for Abe.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CAATSA
Mains level: Not Much
A US senator has said the US government must not impose sanctions on India under the Countering America’s Adversaries through Sanctions Act (CAATSA) for its purchase of S-400 missile weapons system from Russia.
What is the CAATSA?
- CAATSA is a law that came into effect in the US in 2017, meant to punish countries having deep engagements with Russia, North Korea, and Iran using economic sanctions.
- It said countries having a “significant transaction” with Russian intelligence and military agents will be subject to at least five kinds of sanctions.
- Ordinary transactions will not invite sanctions, and the decision of who has sanctions imposed on them comes down to the interpretation of “significant transaction”.
- This is one of the various waivers or exemptions mentioned, such as the transaction not affecting US strategic interests, not endangering the alliances it is a part of, etc.
Could it apply to India?
- India has purchased the S-400 Triumf missile systems, which have advanced capabilities to judge the distance from a target and launch a surface-to-air missile attack.
- Five such systems were bought by India in 2018 for US$ 5.5 billion and in November last year, their delivery began.
- They were deployed in Punjab.
- However, the application of CAATSA is not limited to the S-400, and may include other joint ventures for manufacturing or developing weapons in the future, or any other kinds of major deals with Russia.
Why did the US enact a law like CAATSA?
- The US flagged issues of Russia’s alleged interference in the 2016 Presidential elections, and its role in the Syrian war as some of the reasons for punishing engagement with it.
- EU countries that had even more significant ties with Russia for oil and gas supply before the Ukraine-Russia conflict in 2022, had also criticised CAATSA.
Countries facing sanctions
- The US has placed sanctions on China and Turkey for purchase of the S-400.
- The sanctions included denial of export licences, ban on foreign exchange transactions, blocking of all property and interests in property within the US jurisdiction and a visa ban.
Likely impacts after India’s purchase
- The Biden administration has no firm indication on where it leans on India’s case.
- However, several senators (US parliamentarians) have called upon the Biden administration to consider a special waiver for India.
- This is on account of India’s importance as a defence partner, and as a strategic partner on US concerns over China and in the Quad.
- Other US leaders thinks that giving a waiver to India would be the wrong signal for others seeking to go ahead with similar deals.
Why is the S-400 deal so important to India?
- Security paradigm: S-400 is very important for India’s national security considerations due to the threats from China, Pakistan and now Afghanistan.
- Air defence capability: The system will also offset the air defence capability gaps due to the IAF’s dwindling fighter squadron strength.
- Russian legacy: Integrating the S-400 will be much easier as India has a large number of legacy Russian air defence systems.
- Strategic autonomy: For both political as well as operational reasons, the deal is at a point of no return.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Autonomous District Council (ADC)
Mains level: Read the attached story
The Khasi Hills Autonomous District Council (KHADC) in Meghalaya has called for a meeting of traditional heads to revisit the Instrument of Accession that made the Khasi domain a part of the Indian Union.
About KHADC
- KHADC is an autonomous district council in the state of Meghalaya in India.
- It is one of the three autonomous district councils within Meghalaya, and one of twenty-five autonomous regions of India.
- Meghalaya is divided into three regions dominated by as many matrilineal communities — the Khasis, Garos and Jaintias.
- The Khasi hills straddle 25 Himas or States that formed the Federation of Khasi States.
Why in news?
- Some members of the KHADC agreed that the Instrument of Accession and Annexed Agreement signed with the Dominion of India between December 15, 1947 and March 19, 1948, should be studied.
- The treaty was signed by Governor General of India, Chakravarti Rajagopalachari, on August 17, 1948.
What is Instrument of Accession?
- It was a legal document first introduced by the Government of India Act, 1935.
- It was used in 1947 to enable each of the rulers of the princely states under British paramountcy to join one of the new dominions of India or Pakistan created by the Partition.
- The instruments of accession executed by the rulers, provided for the accession of states to the Dominion of India (or Pakistan) on three subjects, namely, defence, external affairs and communications.
Back2Basics: Autonomous District Council (ADC)
- The Sixth Schedule of the Indian Constitution allows for the formation of autonomous administrative divisions which have been given autonomy within their respective states.
- Most of these ADC are located in North East India with the exception of two in Ladakh and one in West Bengal.
- Presently, 10 Autonomous Councils in Assam, Meghalaya, Mizoram and Tripura are formed by virtue of the Sixth Schedule with the rest being formed as a result of other legislations.
Powers and competencies
(1) Executive and legislative powers
Under the provisions of the Sixth Schedule, ADCs can make laws, rules and regulations in the following areas:
- Land management
- Forest management
- Water resources
- Agriculture and cultivation
- Formation of village councils
- Public health
- Sanitation
- Village and town level policing
- Appointment of traditional chiefs and headmen
- Inheritance of property
- Marriage and divorce
- Social customs
- Money lending and trading
- Mining and minerals
(2) Judicial powers
- ADCs have powers to form courts.
- They can hear cases where both parties are members of Scheduled Tribes (STs) and the maximum sentence is less than 5 years in prison.
(3) Taxation and revenue
- Autonomous district councils have powers to levy taxes, fees and tolls on: building and land, animals, vehicles, boats, entry of goods into the area, roads, ferries, bridges, employment and income and general taxes for the maintenance of schools and roads.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sherpa, G20
Mains level: G20 summit
Former NITI Aayog CEO Amitabh Kant has been picked as India’s new Sherpa for the G-20.
Who is a Sherpa (in IR context)?
- A Sherpa is the personal representative of a head of state or government who prepares an international summit, particularly the annual G7 and G20 summits.
- Between the G7 summits, there are multiple Sherpa conferences where possible agreements are laid out.
- This reduces the amount of time and resources required at the negotiations of the heads of state at the final summit.
- The name Sherpa—without further context—refers to Sherpa for the G7 summit, but the designation can be extended to different regular conferences where the participation of the head of state is required.
- The Sherpa is generally quite influential, although they do not have the authority to make a final decision about any given agreement.
Etymology
- The name is derived from the Sherpa people, a Nepalese ethnic group, who serve as guides and porters in the Himalayas, a reference to the fact that the sherpa clears the way for a head of state at a major summit.
- They are Tibetan Buddhists of the Nyingmapa sect, and have drawn much of their religious tradition from the Rongphu monastery, located at 16,000 feet on the north side of Mount Everest.
About G20
- Formed in 1999, the G20 is an international forum of the governments and central bank governors from 20 major economies.
- Collectively, the G20 economies account for around 85 percent of the Gross World Product (GWP), 80 percent of world trade.
- To tackle the problems or address issues that plague the world, the heads of governments of the G20 nations periodically participate in summits.
- In addition to it, the group also hosts separate meetings of the finance ministers and foreign ministers.
- The G20 has no permanent staff of its own and its chairmanship rotates annually between nations divided into regional groupings.
Aims and objectives
- The Group was formed with the aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability.
- The forum aims to pre-empt the balance of payments problems and turmoil on financial markets by improved coordination of monetary, fiscal, and financial policies.
- It seeks to address issues that go beyond the responsibilities of any one organization.
Members of G20
The members of the G20 consist of 19 individual countries plus the European Union (EU).
- The 19 member countries of the forum are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and the United States.
- The European Union is represented by the European Commission and by the European Central Bank.
Its significance
- G20 is a major international grouping that brings together 19 of the world’s major economies and the European Union.
- Its members account for more than 80% of global GDP, 75% of trade and 60% of population.
India and G20
- India has been a member of the G20 since its inception in 1999.
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From UPSC perspective, the following things are important :
Prelims level: Cloudburst
Mains level: Extreme weather events
At least eight people have died after a cloudburst occurred at the Amarnath Cave Shrine near Pahalgam in south Kashmir.
What is a Cloudburst?
- Cloudbursts are short-duration, intense rainfall events over a small area.
- According to the IMD, it is a weather phenomenon with unexpected precipitation exceeding 100mm/h over a geographical region of approximately 20-30 square km.
What causes Cloudburst?
- A study published last year studied the meteorological factors behind the cloudburst over the Kedarnath region.
- They analysed atmospheric pressure, temperature, rainfall, cloud water content, cloud fraction, cloud particle radius, cloud mixing ratio, total cloud cover, wind speed, wind direction, and relative humidity during the cloudburst, before as well as after the cloudburst.
- The results showed that during the cloudburst, the relative humidity and cloud cover was at the maximum level with low temperature and slow winds.
- It is expected that because of this situation a high amount of clouds may get condensed at a very rapid rate and result in a cloudburst.
Impact of climate change
- Several studies have shown that climate change will increase the frequency and intensity of cloudbursts in many cities across the globe.
- As temperatures increase the atmosphere can hold more and more moisture and this moisture comes down as a short very intense rainfall for a short duration.
- This results in flash floods in the mountainous areas and urban floods in the cities.
- Also, there is evidence suggesting that globally short-duration rainfall extremes are going to become more intense and frequent.
Try this PYQ
Q.During a thunderstorm, the thunder in the skies is produced by the:
- meeting of cumulonimbus clouds in the sky
- lightning that separates the nimbus clouds
- violent upward movement of air and water particles
Select the correct option using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) None of the above
Post your answers here.
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