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  • Electoral Reforms In India

    Is it time for Proportional Representation?     

    Explained | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Why in the News?

    India should contemplate proportional representation to ensure fairer political outcomes, given NDA’s 293 seats (43.3%) compared to INDIA bloc’s 234 seats (41.6%).

    First Past the Post (FPTP) System

    • First Past the Post (FPTP) is a voting system where the candidate with the most votes in each constituency wins, regardless of whether they achieve an absolute majority.
    • Simple and feasible method used in large democracies like India, the U.S., the U.K., and Canada.
    • Provides stability to the executive as the ruling party/coalition can enjoy a majority in the legislature without obtaining a majority of the votes across constituencies.
    • Criticized for potentially resulting in over or under-representation of political parties compared to their vote share.

    Proportional Representation (PR) System:

    • Ensures representation of all parties based on their vote share. Commonly implemented through party list PR, where voters vote for parties rather than individual candidates. PR system applied at each State/Union Territory (UT) level in federal countries like India.

    Pros and Cons Comparison between FPTP and PR

    First Past the Post (FPTP):

    • Pros: Simple, stable majority governments, clear constituency representation.
    • Cons: Disproportionate representation, underrepresentation of minorities, many wasted votes.

    Proportional Representation (PR):

    • Pros: Fairer representation, inclusivity of smaller parties, fewer wasted votes.
    • Cons: Complex, potential for unstable coalitions, weaker direct constituency representation.

    International Practices:

    • The PR system is used in presidential democracies like Brazil and Argentina, as well as parliamentary democracies like South Africa, the Netherlands, Belgium, and Spain.
    • Mixed Member Proportional Representation (MMPR) system employed in Germany and New Zealand.
    • Germany: Germany uses MMPR for elections to the Bundestag. Half of the seats are filled through FPTP constituencies, and the other half are allocated to ensure proportional representation based on party votes, provided parties receive at least 5% of the vote.
    • New Zealand: New Zealand’s House of Representatives is elected using MMPR, with 60% of seats filled through constituency elections and 40% allocated proportionally based on party votes.
    • The Mixed Member Proportional Representation (MMPR) system is a hybrid electoral system that combines elements of First Past the Post (FPTP) and Proportional Representation (PR) to ensure both local representation and proportionality in election results.

    Way Forward:

    • The Law Commission, in its 170th report titled ‘Reform of the Electoral Laws’ (1999), recommended the experimental introduction of the Mixed Member Proportional Representation (MMPR) system. It suggested that 25% of seats in the Lok Sabha could be filled using a Proportional Representation (PR) system by increasing the total number of seats.
    • Incremental implementation of MMPR system for additional seats during delimitation exercises to address population disparities while ensuring fair representation for all regions.

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  • Prime Minister’s Office : Important Updates

    What are Cabinet Committees, and why is the CCS the most important of them all?

    Prelims Only | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Why in the News?

    After the swearing-in ceremony of PM Modi, he is set to share the four big portfolios of Home, Defence, Finance, and External Affairs with its alliance partners.

    What are the Cabinet Committees?

    • Cabinet committees in India are groups of ministers formed by the Prime Minister to handle specific tasks or issues more efficiently.
    • The PM sets up these committees with selected members of the Cabinet and assigns specific functions to these committees.
    • The PM may change the number of committees, and modify the functions assigned to them.
    • Usually, only Cabinet ministers are members of these committees. However, non-Cabinet ministers are not unheard of to be members or special invitees to committees.
    • If the PM himself is a member of any such committee, he acts as the head of that committee.

    Evolution of Cabinet Committees in India’s Governance

    • Cabinet committees operate under the Government of India Transaction of Business Rules, 1961.
    • These committees are categorized as Standing (Permanent) or Ad-Hoc (Temporary).
    • They are established based on Article 77(3) of the Constitution, allowing the President to make rules for efficient transaction of government business and allocation among ministers.
    • Membership varies from three to eight, predominantly comprising Cabinet ministers, with the Prime Minister often presiding.
    • The number, terminology, and composition may change over time.

    Note: All Cabinet Committees except the Cabinet Committee on Accommodation and the Cabinet Committee on Parliamentary Affairs are headed by the Prime Minister.

    There are 8 Cabinet committees at present — 

    1. Appointments Committee of the Cabinet (composed of the PM (ex-officio Chairman) and the Minister of Home Affairs),
    2. Cabinet Committee on Economic Affairs (headed by the PM himself),
    3. Cabinet Committee on Political Affairs (headed by the PM),
    4. Cabinet Committee on Investment and Growth,
    5. Cabinet Committee on Parliamentary Affairs,
    6. Cabinet Committee on Employment & Skill Development,
    7. Cabinet Committee on Accommodation, and
    8. Cabinet Committee on Security.
    • The Committees on Investment and Employment were innovations introduced in 2019  by the Modi government.

    About Cabinet Committee on Security

    • Head of the Committee: The Prime Minister assumes the role of the committee’s head.
    • Membership: Cabinet ministers of Finance, Defense, Home Affairs, and External Affairs serve as members.
    • Key Responsibilities: The committee addresses issues related to law and order, internal security, and foreign affairs policy with security implications, including matters concerning atomic energy.
    • Economic and Political Considerations: It also examines economic and political issues relevant to national security.
    • Financial Oversight: The CCS reviews cases involving capital defence expenditure exceeding Rs 1,000 crore.
    • Departmental Considerations: Additionally, it evaluates matters concerning the Department of Defence Production, Department of Defence Research and Development, Services Capital Acquisition plans, and procurement of security-related equipment.

    Why is CCS so important?

    • The CCS, led by the Prime Minister, includes key ministers overseeing finance, defence, home affairs, and external affairs, playing a pivotal role in national security discussions and appointments.
    • It makes major decisions regarding significant appointments, national security issues, and defence expenditure, indicating its crucial role in India’s security framework.
    • Apart from defence matters, the CCS addresses law and order, internal security, foreign policy on security issues, and matters related to atomic energy, showcasing its broad spectrum of responsibilities.

    Alliance Partners in the Cabinet Committee on Security (CCS)

    • 1996 Government Transition: A notable instance was during the 1996 H.D. Deve Gowda government, following Atal Bihari Vajpayee’s resignation as Prime Minister. Deve Gowda, then CM  of Karnataka, took office as Prime Minister on June 1. Mulayam Singh Yadav from the Samajwadi Party served as Defence Minister, P. Chidambaram, founder of the Tamil Manila Congress earlier that year, became Finance Minister, and Indrajit Gupta of CPI assumed the role of Home Minister.
    • 2001 Appointment: During Vajpayee’s tenure leading the NDA government in 2001, George Fernandes, founder of the Samata Party, was appointed Defence Minister, holding the position for three years. Notably, during his tenure as Defence Minister in Vajpayee’s second and third ministries (1998–2004), Fernandes oversaw critical events such as the Kargil War and nuclear tests at Pokhran.
    • Party Distribution: However, during the UPA government, the Congress retained all CCS positions, whereas in the Modi government, the BJP held all four positions.

    PYQ:

    [2014] The size of the cabinet should be as big as governmental work justifies and as big as the Prime Minister can manage as a team. How far the efficacy of a government then is inversely related to the size of the cabinet? Discuss.

    [2017] Out of the following statements, choose the one that brings out the principle underlying the Cabinet form of Government:

    (a) An arrangement for minimizing the criticism against the Government whose responsibilities are complex and hard to carry out to the satisfaction of all.

    (b) A mechanism for speeding up the activities of the Government whose responsibilities are increasing day by day.

    (c) A mechanism of parliamentary democracy for ensuring collective responsibility of the Government to the people.

    (d) A device for strengthening the hands of the head of the Government whose hold over the people is in a state of decline.

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  • Modern Indian History-Events and Personalities

    124th Death Anniversary of Birsa Munda

    Prelims Only | History | Mains Paper 1: Modern Indian History

    Why in the News?

    Jharkhand CM marked the 124th death anniversary of revolutionary tribal leader “Birsa Munda” by paying his tributes.

    Who was Birsa Munda (1875-1900)?

    • Birsa Munda was born on November 15, 1875, during a period of significant change for his community, the Mundas, residing in the Chotanagpur region of present-day Jharkhand.
    • Birsa Munda spent his early years travelling with his parents and received primary education under Jaipal Nag.
    • Inspired by the peaceful Sardari agitation against British rule, Birsa became a prominent leader advocating for tribal rights.

    Causes of the Rebellion

    • Impact of Colonial Policies: Colonial policies, including the Permanent Settlement Act (1793), disrupted traditional land ownership systems, leading to displacement and exploitation of indigenous communities.
    • Erosion of Khuntkattidar System: The Mundas’ traditional land rights system, known as khuntkatti, was eroded by jagirdars and thikadars, leading to land alienation.
    • Land Alienation and Exploitation: Non-tribal migration into tribal regions accelerated under British rule, resulting in exploitation through high-interest money lending and forced labour.
    • Missionary Activity: The spread of education through missionary activities led to increased awareness among tribals, deepening social cleavages but also inspiring movements for tribal reconstruction.

    Major Activities:

    1. New faith ‘Birsait’ against religious conversion

    • Having gained awareness of the British colonial ruler and the efforts of the missionaries to convert tribals to Christianity, Birsa started the faith of ‘Birsait’.
    • Soon members of the Munda and Oraon community started joining the Birsait sect and it turned into a challenge to British conversion activities.
    • The Mundas called him Dharati Aaba, the father of earth.

    2. The Birsa Movement: Ulgulan

    • The Munda Rebellion was a tribal rebellion led by Birsa Munda in the region south of Ranchi in 1899-1900.
    • It mainly concentrated in the Munda belt of Khunti, Tamar, Sarwada, and Bandgaon.
    • The revolt sought to establish Munda Raj and independence, known as Ulgulan or ‘Great Tumult’ by Munda tribals.
    • The rebellion ended with the suppression by British forces and the death of Birsa Munda.

    Significant Outcomes

    • Impact: Birsa Munda’s mobilization of tribal communities left a lasting legacy, prompting government reforms such as the repeal of the Begar system and the enactment of the Tenancy Act (1903).
    • His Death: The movement was violently suppressed and Birsa Munda died in jail on 9 June 1900.

    What is Permanent Settlement System?

    • The Permanent Settlement system introduced by Lord Cornwallis in 1793 was a land revenue system implemented in British India, particularly in Bengal, Bihar, and Odisha.
    • Under this system, the land revenue to be paid by the peasants (ryots) was fixed permanently without revision for an extended period (typically 10 years or more).
    • This fixed amount was based on the estimated productive capacity of the land.
    • It established the Zamindari system, where Zamindars (landlords) were recognized as the owners of land.
    • They were responsible for collecting revenue from the peasants and paying it to the British government.
    • In return, they were entitled to keep a portion of the collected revenue as their income, often ranging from 10% to 15%.

    PYQ:

    [2020] With reference to the history of India, “Ulgulan” or the Great Tumult is the description of which of the following events?

    (a) The Revolt of 1857

    (b) The Mappila Rebellion of 1921

    (c) The Indigo Revolt of 1859-60

    (d) Birsa Munda’s Revolt of 1899-1900

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  • Innovation Ecosystem in India

    Hydrogen Line: A Unique Signal

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    The hydrogen line stands as a pivotal tool in contemporary astronomy, serving various purposes from studying distant stars to questing for extraterrestrial intelligence, should it exist.

    What is a Hydrogen Line?

    • The hydrogen line is a special type of light that hydrogen atoms emit.
    • It happens when an electron, a tiny particle that orbits the nucleus of the hydrogen atom, jumps from a higher energy level to a lower one.
    • This jump releases energy in the form of light, specifically with a wavelength of about 21 centimetres. This wavelength is what scientists call the hydrogen line.

    Why is it Important?

    • Hydrogen is everywhere in the universe. It’s the simplest and most abundant element, making up about 75% of the universe’s elemental mass.
      • So, studying the hydrogen line allows us to understand a lot about the composition and distribution of matter in the universe.
    • By observing the hydrogen line’s emission from different regions of space, astronomers can create maps showing where hydrogen gas is located.
    • Secrets about the early Universe: The hydrogen line also holds secrets about the early universe. Shortly after the Big Bang, the universe was filled with hydrogen gas.
      • By studying the hydrogen line from distant parts of the universe, astronomers can learn about its conditions and evolution billions of years ago.

    How Do We Interpret Hydrogen Line?

    • Radio telescope data enables mapping of hydrogen distribution, revealing locations of hydrogen clouds crucial for understanding galaxy and galaxy cluster formation and evolution.
    • Observing hydrogen line emission from different galaxy parts enables studying internal structures and dynamics, like rotation curves, offering insights into mass distribution within galaxies.
    • Observing hydrogen lines from distant galaxies unveils early universe conditions, aiding in understanding cosmic evolution’s initial stages.

    What’s Next?

    • New Discoveries: Scientists are continually developing new technologies and techniques to improve the sensitivity and resolution of radio telescopes.
      • This enables them to detect fainter signals and uncover new insights into the universe’s hydrogen content.
    • Exploring Dark Matter: The hydrogen line observations could also contribute to understanding dark matter, an invisible substance that makes up about 27% of the universe’s total mass-energy content.
      • By studying the hydrogen distribution in relation to the gravitational effects observed in galaxies, scientists hope to shed light on the nature of dark matter.

    PYQ:

    [2012] A team of scientists at Brookhaven National Laboratory including those from India created the heaviest anti-matter (anti-helium nucleus). What is/are the implication/implications of the creation of anti-matter?

    1. It will make mineral prospecting and oil exploration easier and cheaper.
    2. It will help prove the possibility of the existence of stars and galaxies made of anti-matter.
    3. It will help us understand the evolution of the universe.

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 3 only

    (d) 1, 2 and 3

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  • Oil and Gas Sector – HELP, Open Acreage Policy, etc.

    [pib] Green Ammonia Production under SIGHT Program

    Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the News?

    • Solar Energy Corporation of India (SECI) has initiated the bidding process for a total capacity of 5.39 lakh Metric Tonnes (MT) per annum of Green Ammonia production.
      • The initiative falls under Mode 2A of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, part of the National Green Hydrogen Mission led by the Ministry of New & Renewable Energy (MNRE).

    What is Green Ammonia?

    • Green ammonia, also known as renewable ammonia, is a form of ammonia produced using renewable energy sources, which is proposed as a sustainable, emission-free alternative with a multitude of applications in industry and other sectors.
    • It is produced by combining nitrogen with hydrogen, which is generated through water electrolysis using renewable energy, and then reacting the hydrogen and nitrogen at high temperatures and pressures to form ammonia.

    About the National Green Hydrogen Mission

    • The National Green Hydrogen Mission was launched in January 2023.
      • Objective: To make India a ‘global hub’ for using, producing and exporting green hydrogen.
    • Earlier, the National Hydrogen Mission was launched on August 15, 2021, with a view to cutting down carbon emissions and increasing the use of renewable sources of energy.
    • The Ministry of New and Renewable Energy (MNRE) formulates the scheme guidelines for the implementation of these missions.

    Key features of the NGHM

    • Power capacity: The mission seeks to promote the development of a green hydrogen production capacity of at least 5 MMT per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.
    • Job creation: It envisages an investment of over ₹8 lakh crore and creation of over 6 lakh jobs by 2030.
    • Reducing energy import bill: It will also result in a cumulative reduction in fossil fuel imports of over ₹1 lakh crore and abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030.
    • Export promotion: The mission will facilitate demand creation, production, utilisation and export of green hydrogen.
    • Incentivization: Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), distinct financial incentive mechanisms are provided.
    • Green Hydrogen Hubs: Regions capable of supporting large-scale production and/or utilisation of hydrogen will be identified and developed as Green Hydrogen Hubs.

    What is the SIGHT Program?

    • In the initial stage, two distinct financial incentive mechanisms proposed with an outlay of ₹ 17,490 crore up to 2029-30:
    1. Incentive for manufacturing of electrolysers
    2. Incentive for production of green hydrogen.
    • Depending upon the markets and technology development, specific incentive schemes and programmes will continue to evolve as the Mission progresses.

    PYQ:

    [2019] Consider the following statements:

    1. Agricultural soils release nitrogen oxides into the environment.
    2. Cattle release ammonia into the environment.
    3. Poultry industry releases reactive nitrogen compounds into environment.

    Which of the statements given above is/are correct?

    (a) 1 and 3 only

    (b) 2 and 3 only

    (c) 2 only

    (d) 1, 2 and 3

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  • The Crisis In The Middle East

    How the Six-Day War of 1967 transformed the Middle East?

    Explained | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Why in the News?

    Fifty-seven years have elapsed since the Six-Day War ( June 5 to June 10, 1967) fought between Israel and its Arab neighbors.

    Causes of the War

    • Historical Tensions: Rooted in the establishment of Israel in 1948, which resulted in the displacement and death of thousands of Palestinian Arabs, creating a massive refugee crisis.
    • Egypt-Israel Relations: Particularly hostile due to territorial and water disputes, exacerbated by Egyptian President Gamal Abdel Nasser’s aggressive stance against Israel.
    • Cold War Influences: Military build-up in Israel and Arab states along Cold War lines, with Israel supported by the US and Arab states by the Soviet Union.
    • Provocations: Egypt’s naval blockade of the Straits of Tiran in May 1967, cutting off Israel’s maritime access to the Red Sea and mobilizing forces in the Sinai Peninsula.

    Outbreak of the War

    • On June 5, 1967, Israel launched a pre-emptive airstrike on Egyptian airfields, swiftly gaining air superiority and neutralising the Egyptian Air Force.
    • Israel’s ground forces advanced into the Sinai Peninsula and Gaza Strip, territories occupied by Egypt.
    • Jordan and Syria entered the war, attacking Israel from the east and north, but were quickly repelled.

    Impacts of the War

    • Territorial Gains for Israel: In less than a week, Israel captured the Sinai Peninsula and Gaza from Egypt, the Golan Heights from Syria, and the West Bank and East Jerusalem from Jordan.
    • Geopolitical Shift: The defeat was a major blow to Arab nations, establishing Israel’s military and geopolitical dominance in the region.
    • Emergence of Palestinian Nationalism: The war spurred the rise of Palestinian nationalism and the Palestine Liberation Organization (PLO) emerged as a significant political entity.
    • Continued Conflict: Ongoing tensions and conflicts in the region, including the 1973 Yom Kippur War, are direct results of the 1967 war and subsequent Israeli occupation of key territories.
    • Unresolved Refugee Crisis: The plight of Palestinian refugees displaced during and after the war remains unresolved, continuing to fuel regional instability.

    Conclusion: The Six-Day War was thus a pivotal event that not only redefined territorial boundaries but also reshaped political dynamics and set the stage for ongoing conflicts in the Middle East.

    Mains PYQ:

    Q “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss. (UPSC IAS/2018)

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  • Waste Management – SWM Rules, EWM Rules, etc

    Remoulding the Global Plastics Treaty

    Explained | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the news?

    As discussions for an international legally binding treaty on plastic pollution continue, it is essential to consider how it can support a fair transition for informal waste collectors and recyclers.

    Observations by the OECD Global Plastic Outlook

    • In 2019, global plastic waste production was 353 million tonnes, more than double the amount in 2000. This number is expected to triple by 2060. Only 9% of plastic waste was recycled in 2019.
    • 50% of plastic waste was sent to landfills, 19% incinerated, and 22% disposed of in uncontrolled sites or dumps.

    Challenges due to Plastic Pollution:

    • Soil Pollution: Plastic waste can contaminate soil, reducing its fertility and affecting plant growth.
    • Marine Pollution: Plastic waste in oceans can harm marine life, alter habitats, and disrupt natural processes, making ecosystems less resilient to climate change.
    • Water Pollution: Plastic waste can contaminate groundwater and waterways, affecting human consumption and aquatic life.
    • Health Risks: 
      • Microplastics: Plastic waste can break down into microplastics, which can be ingested by humans and animals, potentially causing health problems.
      • Toxic Chemicals: Plastic products can leach toxic chemicals, such as phthalates and BPA, into food and water, posing health risks

    Significance of Recognizing the Issue

    • Crucial role of recycling workers: Informal recycling workers recycled 85% of the 9% recycled plastic, playing a crucial role in global waste management.
    • Economic and Environmental Contribution: These workers alleviate municipal budgets, promote circular waste management solutions, and help mitigate greenhouse gas emissions. Their efforts significantly reduce plastic in landfills and prevent plastic leakage into the environment.
      • Despite their contributions, informal recycling workers are often overlooked and remain vulnerable. They face risks such as privatization of waste management, waste-to-energy projects, and exclusion from public policy interventions in plastic waste management.

    Global Plastic Treaty Needs Just Transition

    • Need for Intergovernmental Negotiating Committee (INC): Established in 2021, the INC aims to create a legally binding agreement to reduce plastic pollution. The INC has held several meetings, with the final one scheduled in South Korea.
    • Promoting Informal Workers Participation: The International Alliance of Waste Pickers (IAWP) emphasizes the need to support and integrate informal waste pickers into the treaty discussions. Their historical contributions should be acknowledged, their rights protected, and their perspectives included in policy implementation.
    • Building Clarity: There is no universally agreed-upon terminology for a just transition or a formal definition of the informal waste sector. Clarifying these definitions is essential.

    India’s Voice is Important

    • India promotes repair, reuse, refill, and recycling without eliminating the use of plastics. This approach emphasizes country-specific circumstances and capacities.
    • India’s informal waste pickers are indispensable and remain central to the discussion on plastic waste management.
    • Rethinking EPR norms is crucial to integrating the informal worker cohort into the new legal framework.
    • As a key representative from the Global South, India’s perspectives and approaches are vital in shaping the Global Plastics Treaty.

    Conclusion: By incorporating the perspectives of informal waste workers and ensuring their livelihoods are protected, the Global Plastics Treaty can embody social justice and equity principles, contributing to a sustainable future while leaving no one behind.

    Mains PYQ:

    Q What are the impediments in disposing of the huge quantities of discarded solid wastes which are continuously being generated? How do we remove safely the toxic wastes that have been accumulating in our habitable environment?  (UPSC IAS/2018)

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  • RBI Notifications

    Why has RBI policy panel kept repo rate unchanged, hiked GDP growth projection?

    Explained | Economics | Mains Paper 3: Indian Economy

    Why in the news?

    The RBI’s Monetary Policy Committee kept the repo rate at 6.5% for the eighth consecutive time, due to persistent high retail inflation from sticky food prices.

    Monetary Policy Committee (MPC) 

    • The Monetary Policy Committee (MPC) of India is responsible for setting the benchmark interest rate in the country.
    • The committee consists of six members: the Governor of the Reserve Bank of India (RBI), the Deputy Governor in charge of monetary policy, an Executive Director of the RBI, and three external members nominated by the government.
    • The MPC meets at least four times a year and publishes its decisions after each meeting. The committee’s primary objective is to maintain price stability while considering the goal of economic growth.

    Why did the RBI keep the Rates Unchanged?

    • Inflation Concerns: The Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.5% due to persistent high inflation, with April 2024 retail inflation at 4.83%.
    • Caution on Food Inflation: The policy stance remains cautious due to the risk of rising food inflation from heatwave conditions, which may impact the final journey of disinflation.
    • Flexible Inflation Targeting: Under the regime, the RBI aims to keep inflation within the 2-6% range and achieve a 4% target on a durable basis.
    • Supply Side Disruptions: Persistent supply shocks in cereals, pulses, spices, and vegetables contributed to elevated food inflation, impacting overall inflation management.

    What happens to Lending Rates if the Repo Rate is left steady?

    Lending Rate:

    The lending rate, also known as the bank rate, is the rate at which commercial banks borrow money from the central bank without securities. It is typically higher than the repo rate and is used for longer-term lending. The lending rate is used to assess the long-term monetary goals of a bank and is often used to manage liquidity in the system

    Repo Rate 

    The repo rate, on the other hand, is the rate at which the central bank lends money to commercial banks against government securities as collateral. It is used for short-term lending and is typically lower than the lending rate
    • Relief for Borrowers: With the repo rate steady at 6.5%, external benchmark lending rates (EBLR) linked to the repo rate will not increase, keeping equated monthly installments (EMIs) on home and personal loans unchanged.
    • Potential MCLR Increase: Lenders might raise interest rates on loans linked to the marginal cost of fund-based lending rate (MCLR), as the full transmission of the 250 basis points hike in the repo rate from May 2022 to February 2023 has not yet occurred.

    Why Has MPC Hiked GDP Growth?

    • Improving Demand: The MPC raised the GDP growth forecast for FY25 to 7.2% from 7% due to strengthening rural and urban demand conditions buoyed by favourable monsoon forecasts.
    • Robust Economic Activity: Indicators such as healthy growth in the eight core industries, strong Purchasing Managers Index (PMI) in manufacturing and services, and overall resilient domestic economic activity support the upgraded growth projection.
    • Sectoral Strength: The manufacturing and services sectors continued to exhibit robust performance, with the PMI for services standing at 60.2 in May 2024, indicating strong expansion.

    Conclusion: The RBI’s cautious approach to keeping rates steady while boosting GDP growth projections aims to balance economic growth and inflation control, with a focus on addressing persistent food inflation.

    Mains PYQ:

    Q  Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC IAS/2019)

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  • Foreign Policy Watch: India-Myanmar

    India issues new advisory against fake job rackets in Myanmar, flags another ‘dangerous’ area

    Explained | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

     

    Why in the news?

    The advisory was shared on social media by the Indian Embassy in Yangon on Monday (June 3 2024), urging caution against job offers in the Pha Lu area, south of Myawaddy town. This region has recently emerged as a hotspot where most Indian victims are being trafficked, often via Thailand.

    Highlights made by the Indian Embassy’s Advisories:

      • The embassy has issued multiple advisories warning against fake job rackets in Myanmar, highlighting the significant and ongoing threat.
      • Declared New Danger Zone: The Pha Lu area, south of Myawaddy town, has been identified as a new hotspot for trafficking, necessitating heightened vigilance. Previous advisories flagged Myawaddy, Yangon, Laukkaing, Lashio, and Tachileik as risky areas.
        • There’s been a rise in Indian nationals falling victim to crime syndicates in the Myawaddy region on the Myanmar-Thailand border.
    • On Security Issues:
      • Broader insecurity: Not just Indian nationals, but individuals from countries like Malaysia and the UAE have also been targeted by these syndicates.
      • Social Media Caution: Emphasis on avoiding job offers made through social media or unverified sources.
      • Security Worsening: The security situation in Myanmar has deteriorated since the February 2021 military coup, exacerbating human trafficking issues.
    • Consultation Urged: Indian nationals are urged to verify job offers and consult respective Indian embassies before accepting employment abroad.

    India-Myanmar Bilateral Relations:

      • India and Myanmar signed a Treaty of Friendship in 1951, and the visit of Prime Minister Rajiv Gandhi in 1987 laid the foundations for a stronger relationship.

    Significance of India-Myanmar Relation:

      • Economic Cooperation: India is Myanmar’s 4th largest export market and 5th largest import partner. The bilateral trade target of $1 billion was achieved by 2017.
      • Strategic Cooperation: India’s engagement with Myanmar is motivated by a desire to counter China’s growing influence in the region and enhance its own influence and standing.
      • Security Ties: India and Myanmar have cooperated on security issues, including combating drug trafficking and insurgent groups operating in the border areas.
      • Recent Developments: India gifted Myanmar its first submarine, and the two countries have carried out joint operations against insurgent camps.

    The relationship faces challenges such as the Rohingya issue, the coup by the military junta, and the exploitation of the porous border by terrorist outfits and insurgent groups

    Way Forward:

    • Need Monitoring and Ground Surveillance: India can collaborate with social media platforms to monitor and remove fraudulent job postings and take legal action against those responsible.
    • Stronger Bilateral Cooperation: Strengthen cooperation with Myanmar and neighboring countries like Thailand, Laos, and Cambodia to crack down on human trafficking networks and facilitate the safe return of victims.

    Mains PYQ:

    Q Cross-border movement of insurgents is only one of the several security challenges facing the policing of the border in North-East India. Examine the various challenges currently emanating across the India-Myanmar border. Also, discuss the steps to counter the challenges. (UPSC IAS/2019)

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  • Modern Indian History-Events and Personalities

    131 years of Gandhiji’s Natal Satyagraha

    Prelims Only | History | Mains Paper 1: Modern Indian History

    Why in the News?

    • On June 7, 1893, Mahatma Gandhi faced racial discrimination when he was forced off a first-class train compartment at “Pietermaritzburg railway station” in South Africa.
      • This event ignited the spirit of civil disobedience in him through his first non-violent protest in the “Natal Satyagraha”.

    History of ‘Satyagraha’

    • The terms originated in a competition in the news-sheet Indian Opinion in South Africa in 1906.
    • Mr. Maganlal Gandhi, grandson of an uncle of Mahatma Gandhi, came up with the word “Sadagraha” and won the prize.
    • Subsequently, to make it clearer, Gandhi changed it to Satyagraha.

    About the Pietermaritzburg Incident 

    • Gandhi’s forced removal from a first-class train compartment in 1893 served as a catalyst for his commitment to resisting racial discrimination.
    • This event inspired him to pursue nonviolent resistance, planting the seeds for his philosophy of Satyagraha.

    Its’ Aftermath

    • Formation of Natal Indian Congress and Advocacy
      • Establishment: Gandhi organized the Indian community and founded the Natal Indian Congress (NIC) in 1894 at Durban to advocate for their rights.
      • Campaigns: He initiated various campaigns, including petitions and boycotts, challenging discriminatory laws and policies in South Africa.
    • Natal Satyagraha
      • The passage of the Asiatic Registration Act in 1906 sparked the Natal Satyagraha, protesting against this discriminatory law.
      • Gandhi emerged as the leader of the movement, advocating for nonviolent resistance and civil disobedience.
      • Satyagraha emphasized confronting oppression with moral courage and integrity, without resorting to violence.

    Gandhiji’s South Africa Settlements:

    • Phoenix Settlement in Natal: Founded in 1904, the Phoenix Settlement was established by Gandhi as a communal living space and centre for social and political activism. It served as a hub for his Satyagraha campaigns against racial discrimination and injustice in South Africa.
    • Tolstoy Farm outside Johannesburg: Gandhi established Tolstoy Farm in 1910 as a self-sustaining community inspired by the teachings of Russian writer Leo Tolstoy. It served as a refuge for Indian immigrants and a base for organizing resistance against discriminatory laws.

    Characteristics and Impact of Natal Satyagraha

    • Mass Participation: The movement garnered widespread support from the Indian community, involving thousands in nonviolent protests.
      • He mobilized support for the welfare of Indians and established the Transvaal British Indian Association in Johannesburg in 1903.
    • Arrests and Imprisonment: Gandhi and many others faced arrests and imprisonment for their acts of civil disobedience. He faced imprisonment multiple times for his nonviolent protests, including the Volkrust Satyagraha in 1913.
    • Attracted International attention: The Satyagraha attracted international attention and led to negotiations, culminating in the Indian Relief Act in 1914.

    PYQ:

    [2019] With reference to the British colonial rule in India, consider the following statements: 

    1. Mahatma Gandhi was instrumental in the abolition of the system of ‘indentured labour’.
    2. In Lord Chelmsford’s ‘War Conference’, Mahatma Gandhi did not support the resolution on recruiting Indians for World War.
    3. Consequent upon the breaking of Salt Law by Indian people, the Indian National Congress was declared illegal by the colonial rulers.

    Which of the statements given above are correct?

    (a) 1 and 2 only

    (b) 1 and 3 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

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