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  • What is the Turner Prize?

    Why in the News?

    • Jasleen Kaur, an Indian-origin artist, was awarded the Turner Prize for her exhibit that pays tribute to her family’s history of migration to Scotland.

    What is the Turner Prize?

    About
    • Named after JMW Turner (1775-1851), known for his dramatic seascapes and innovative use of color and light, it was first awarded in 1984 by Patrons of New Art.
    • It aims to promote interest in contemporary art and assist the Tate Gallery in acquiring new works.
    What makes it special?
    • One of the most prestigious awards in contemporary art, awarded annually by the Tate Gallery to an outstanding British artist.
    • Spotlights new talent and helps lesser-known artists gain international recognition.
    • The winner receives £25,000, and shortlisted artists receive £10,000 each.
    Significance in British Culture
    • A major cultural event in the UK, attracting wide media coverage and public attention.
    • Its controversial nature fuels discussions about the definition of art and the role of contemporary artists.
    • Winning the Prize often defines an artist’s place in British culture, establishing them as a significant figure in the art world.

  • Polavaram Project Controversy

    Why in the News?

    The Biju Janata Dal (BJD) has restarted its protest against the Polavaram multipurpose project in Andhra Pradesh, claiming it will flood large areas in Malkangiri, Odisha, displacing many tribal communities.

    What were the recommendations by the Godavari Water Disputes Tribunal (GWDT) 1969?

    The Godavari Water Disputes Tribunal (GWDT), was established to resolve water-sharing disputes concerning Godavari River water among the states of Andhra Pradesh, Maharashtra, and Madhya Pradesh (now Chhattisgarh). It made several key recommendations regarding the utilization of Godavari River water. Notable points include:

    • Water Allocation: The Tribunal allowed Andhra Pradesh to divert 80 TMC (thousand million cubic feet) of Godavari water at 75% dependability for irrigation and other uses, which could also substitute releases from the Nagarjunasagar project for the Krishna delta.
    • Inter-State Agreements: The Tribunal recognized various inter-state agreements that specified how water from the Godavari and its tributaries could be utilised, ensuring equitable distribution among the states involved.
    • Project Approvals: The GWDT endorsed the construction of projects like Polavaram, provided they adhered to specified Full Reservoir Levels (FRL) and operational guidelines.

    What are the social and environmental impacts of the Polavaram Project?

    • Social Impact: The project is expected to displace over 150,000 people across approximately 276 villages, with many of these being tribal communities. For every five acres irrigated, one tribal family is projected to lose their land.
      • Infrastructure Strain: The project has faced funding challenges for rehabilitation efforts, leading to halted work on necessary infrastructure like canals, which could exacerbate social tensions among displaced populations.
    • Environmental Impact: The dam’s backwaters will submerge an estimated 3,731 hectares of forest land. The environmental impact assessments have raised concerns about ecosystem disruption, including increased vulnerability to erosion and regional landslides.

    How is the project being managed politically and administratively?

    • National Project Status: Declared a national project under the Andhra Pradesh Reorganisation Act of 2014, the Central Government is responsible for executing the project while ensuring compliance with environmental and rehabilitation norms.
    • Polavaram Project Authority: A governing body has been established to oversee project execution, comprising representatives from both state and central governments. This authority is tasked with ensuring timely execution and adherence to regulatory requirements.
    • Political Dynamics: The project has become a focal point for regional politics, particularly as parties like the BJD leverage opposition against it to bolster their regional identity amidst changing political landscapes in states like Odisha.

    What are the legal and regulatory challenges faced by the Polavaram Project?

    • Ongoing Litigation: Multiple states have challenged the project in court on grounds of inadequate environmental assessments and potential adverse impacts on their territories. Legal disputes have persisted since at least 2011, complicating project timelines.
    • Regulatory Compliance Issues: Environmental clearances for the project have been contentious, particularly following changes in flood situation estimates that were not incorporated into updated designs. This has raised questions about compliance with earlier environmental impact assessments conducted in 2005.
    • Funding Challenges: Financial constraints have hindered progress on rehabilitation efforts for displaced populations, leading to further legal scrutiny regarding compliance with social justice norms and commitments made during project approval processes.

    Way forward: 

    • Comprehensive Impact Assessment and Mitigation: Conduct updated environmental and social impact assessments, including backwater studies, and implement robust mitigation measures for displaced populations, ensuring compliance with legal and regulatory frameworks.
    • Strengthen Inter-State Collaboration: Establish a transparent and inclusive mechanism involving all affected states to address concerns, promote equitable resource sharing, and expedite the resolution of legal and administrative challenges.

    Mains PYQ:

    Q Constitutional mechanisms to resolve the inter-state water disputes have failed to address and solve the problems. Is the failure due to structural or process inadequacy or both? Discuss. (UPSC IAS/2013)

  • Building on the revival of the manufacturing sector

    Why in the News?

    Manufacturing output grew by 21.5% in 2022-23, but the GVA (Gross value addition) only grew by 7.3%. This is because input costs increased sharply by 24.4%, making production more expensive. As a result, even though industries produced more, their profits and value-added were reduced.

    Note: GVA represents the value added by industries, while manufacturing output refers to total production. GVA reflects the economic contribution, factoring in costs like inputs.

    What is the present scenario of India’s manufacturing sector?

    • Growth Momentum: India’s manufacturing sector is experiencing significant growth, with a reported output increase of 21.5% in 2022-23, as indicated by the Annual Survey of Industries (ASI).
      • This growth is attributed largely to the Production Linked Incentive (PLI) scheme, which has played a crucial role in boosting production across various sectors, including electronics, pharmaceuticals, and automobiles.
    • Sectoral Contributions: Key sectors benefiting from the PLI scheme, such as basic metals and motor vehicles, collectively contributed 58% to total manufacturing output, showcasing robust performance driven by these incentives.
    • Positive Economic Indicators: The gross value added (GVA) from manufacturing grew by 7.3%, highlighting an overall recovery in the sector post-COVID-19 disruptions.

    What are the current challenges facing the manufacturing sector?

    • Input Cost Surge: A significant challenge is the rising input prices, which increased by 24.4% in 2022-23. This surge has created a gap between manufacturing output growth and GVA growth, indicating that while production volumes are increasing, profitability is being squeezed due to higher costs.
    • Regional Imbalance: Manufacturing activity is heavily concentrated in a few states—Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Uttar Pradesh—accounting for over 54% of total manufacturing GVA. This concentration limits equitable development across the country.
    • Skill Development Needs: There is a pressing need for skill enhancement to meet the demands of evolving manufacturing technologies and processes.

    How can digital transformation contribute to the future of manufacturing?

    • Adoption of Advanced Technologies: Digital transformation can enhance manufacturing efficiency through automation, data analytics, and IoT (Internet of Things) integration. This can lead to improved productivity and reduced operational costs.
    • Supply Chain Optimization: Digital tools can streamline supply chain management, making it more resilient to disruptions and better able to respond to global demand fluctuations.
    • Enhanced R&D Capabilities: Investing in digital technologies can foster innovation in product development and advanced manufacturing techniques, positioning India as a leader in high-tech manufacturing sectors.

    What strategies can be implemented to stimulate growth in manufacturing? (Way forward)

    • Expand PLI Scheme Scope: To further stimulate growth, the PLI scheme should be extended to include labour-intensive sectors such as apparel and furniture, as well as emerging industries like aerospace and space technology. This could unlock new growth opportunities and reduce import dependency.
    • Streamline Import Regime: Implementing a simplified three-tier tariff system for imports—0–2.5% for raw materials, 2.5%–5% for intermediates, and 5%–7.5% for finished goods—could help lower input costs and enhance competitiveness.
    • Focus on MSMEs: Tailoring PLI incentives for micro, small, and medium enterprises (MSMEs) by lowering capital investment thresholds could empower these businesses to scale up and innovate.

    Mains PYQ:

    Q  Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)

  • [7th December 2024] The Hindu Op-ed: Public health — insights from the 1896 Bombay Plague

    PYQ Relevance:

    Q) Public health system has limitation in providing universal health coverage. Do you think that private sector can help in bridging the gap? What other viable alternatives do you suggest? (UPSC CSE 2015)

    Mentor’s Comment: UPSC Mains have asked questions around the Public Health Policies (2017) and Newer Health Challenges (2020 and 2022).

    India is aiming for real-time public health monitoring platforms National Health Mission Health Management Information System (NHM-HMIS), and the Integrated Disease Surveillance Programme (IDSP) to enhance surveillance, monitoring, and resource allocation at primary healthcare levels.

    Today’s editorial reflects on the historical context of the Bombay Plague of 1896 and its implications for contemporary public health practices. This content can be used as a case study while exchanging ideas on ‘Public Health Policies and challenges in India’.

    _

    Let’s learn!

    Why in the News?

    There are ongoing discussions in Parliament around public health strategies in the wake of recent health crises, including the past COVID-19 pandemic.

    • By reflecting on historical lessons from the Bombay 1896 plague outbreak, we can analyze the significance of community engagement, comprehensive disease management strategies, and ethical considerations in health interventions.
    What were the Public Health Measures implemented by Britishers and how effective were they?

    • Quarantine and Isolation: Infected individuals were forcibly removed from their homes and taken to plague hospitals or camps, where they were often separated from their families. This included door-to-door searches conducted by soldiers to identify the sick.
    • Destruction of Property: Personal belongings and houses of the infected were often burned and demolished which led to substantial loss of property for many residents.
    • Sanitation Campaigns: A large-scale sanitation initiative was launched, which included flushing sewers with seawater, washing streets with lime, and disinfecting homes.
    o Special camps were established for the treatment of the infected but often faced criticism for poor conditions and high mortality rates.
    • Legislative Measures: The Epidemic Diseases Act of 1897 was enacted, granting authorities extensive powers to enforce health measures, including movement restrictions and compulsory examinations.

    Were they effective?
    • Limited Success: The death toll exceeded 33,000 within a short period, indicating that these strategies did not sufficiently curb the outbreak.
    • Social Backlash: Reports of disrespect during inspections and inadequate hospital conditions fueled anger, resulting in protests and even violent incidents against medical personnel.
    • Migration and Spread: Many residents fled Bombay in response to the plague and government actions, which inadvertently contributed to the spread of the disease beyond urban areas.
    • Long-term Impact: While some improvements in urban infrastructure and public health policies emerged post-plague, many immediate measures were criticized for their insensitivity to local customs and needs.

    What was positive in this policy implementation despite the criticism?

    • Emphasis on control over cases: The Indian Plague Commission’s approach during the 1896 Bombay Plague focused significantly on controlling the movement of people and the spread of the disease rather than directly addressing the health needs of affected individuals. Focus Areas were:
      • Railway Plague Inspection Stations Map (to monitor the movement of people) focused on railway networks and inspection points.
      • Chausa Observation Camp Plan detailed layouts of observation camps that reflected a militarized approach to quarantine with prominent police presence.
      • Khanpur Station Map illustrated disinfection zones and highlighted the role of police in maintaining control over these areas.
    • Cartographic Approach and Its Consequences: The maps were unusually colorful for administrative reports, possibly to convey a sense of effective control while downplaying the epidemic’s severity. The emphasis moved from identifying who was affected by the plague to understanding where the disease could potentially spread.
    • Prioritization of State Control: The Commission’s focus on control points indicated a prioritization of state mechanisms for surveillance rather than an understanding of epidemiological factors or community health requirements.
      • This approach raised concerns about the adequacy of public health responses that prioritized state security over effective disease management and community welfare.

    What lessons can contemporary public health systems learn from the Bombay Plague?

    • Community Engagement: Effective public health responses must include community cooperation. The mistrust generated by colonial policies highlights the need for transparent communication and involvement of local leaders in health initiatives.
    • Comprehensive Disease Management: The outbreak underscored the importance of not only immediate medical responses but also long-term strategies addressing underlying social determinants of health such as poverty and sanitation.
    • Ethical Considerations: The harsh measures taken during the plague raise ethical questions regarding public health interventions. Balancing individual rights with community safety remains a critical challenge for public health officials today.
    • Historical Reflection: Understanding past epidemics can inform current practices. The Bombay Plague illustrates how historical narratives shape contemporary health policies and societal attitudes toward disease management.

    https://www.thehindu.com/opinion/lead/public-health-insights-from-the-1896-bombay-plague/article68955779.ece

  • [pib] Pradhan Mantri Kisan Maan Dhan Yojana (PMKMY)

    Why in the News?

    • The Ministry of Agriculture & Farmers Welfare has provided state-wise details of farmers registered under the Pradhan Mantri Kisan Maan Dhan Yojana (PMKMY).
      • Top Three States: Haryana (5,74,467), Bihar (3,45,038), Chhattisgarh (2,02,734).
      • Bottom Three States/UT: Lakshadweep (72), Ladakh (114), Goa (150).
    • Recently, the PMKMY (launched on 12th September 2019) has completed 5 successful years.

    About Pradhan Mantri Kisan Maan Dhan Yojana (PMKMY)

    Details Type: Central Sector Scheme
    Objective: To provide a voluntary, contributory pension scheme for farmers aged 18–40 years, ensuring ₹3,000/month pension after they turn 60 years of age.
    Implementation & Structural Mandate Implemented by: Ministry of Agriculture and Farmers Welfare
    Pension Fund Manager: Life Insurance Corporation (LIC) of India
    State-wise Registration: Registered farmers are managed by the respective state governments in collaboration with LIC. The scheme encourages a structured approach involving the collection of contributions and government matching funds.
    Contribution: Farmers contribute between ₹55 and ₹200 per month, depending on their entry age.
    Beneficiaries & Benefits Beneficiaries: Farmers aged 18–40 years.
    Benefits: Assured pension of ₹3,000 per month post-60 years, matching contribution by the Government of India, administered by LIC.
    Exclusions: Income taxpayers, members of government pension schemes, and those already enrolled in other pension schemes.

     

    PYQ:

    [2020] In India, which of the following can be considered as public investment in agriculture? (2020)

    1. Fixing Minimum Support Price for agricultural produce of all crops
    2. Computerization of Primary Agricultural Credit Societies
    3. Social Capital development
    4. Free electricity supply to farmers
    5. Waiver of agricultural loans by the banking system
    6. Setting up of cold storage facilities by the governments

    Select the correct answer using the code given below:

    (a) 1, 2 and 5 only

    (b) 1, 3, 4 and 5 only

    (c) 2, 3 and 6 only

    (d) 1, 2, 3, 4, 5 and 6

  • [pib] CAR T-Cell Therapy

    Why in the News?

    The Department of Biotechnology (DBT) has been a key supporter of research projects focusing on CAR T-cell therapies for cancers.

    About CAR T-Cell Therapy:

    What is it?
    • Acronym  for Chimeric Antigen Receptor T–Cell Therapy;
    • Innovative  immunotherapy in which T-cells (a type of white blood cell) are genetically modified to express a receptor (CAR) that targets specific proteins on cancer cells.
    • T-cells are part of the immune system and help identify and eliminate infected or cancerous cells.
    Objective of the Therapy
    • To treat blood cancers, especially B Acute Lymphoblastic Leukemia (B-ALL) and Non-Hodgkin Lymphoma (B-NHL).
    • Aimed at patients whose disease relapsed or was resistant to conventional treatments (chemotherapy, radiation).
    • Specifically targets CD19, a protein found on the surface of B-cells, which includes cancerous B-cells.
    Implementation and Structural Mandate
    • Developed jointly by Indian Institute of Technology (IIT-Bombay) and Tata Memorial Center (TMC), Mumbai since 2015.
    • Approved by DCGI (Drug Controller General of India) in March 2021 for Phase 1 trials in children and adults with relapsed B-ALL and B-NHL.
    • Supported by academic grants from Department of Biotechnology and government agencies.
    • Trials were conducted at Tata Memorial Center (TMC), and other hospitals.
    Future Scope for Phase II
    • Phase 1 Trials: Conducted from 2021 to 2023 on children and adolescents with B-ALL and adults with B-NHL, with promising results matching international standards in terms of efficacy and safety.
    • Phase 2 Trials: Have been approved and are currently ongoing. These trials will expand on the efficacy and long-term safety of the therapy, including larger cohorts of patients.

    Future Scope: Holds the potential for expanding to other cancers, such as Multiple Myeloma, Glioblastoma, and Hepatocellular Carcinomas, based on continued research and results from Phase II trials.

     

    PYQ:

    [2022] Which one of the following statements best describes the role of B cells and T cells in the human body?

    (a) They protect the environmental allergens body.
    (b) They alleviate the body’s pain and inflammation.
    (c) They act as immuno-suppressants in the body.
    (d) They protect the body from diseases caused by pathogens.

  • [pib] National Tuberculosis Elimination Programme (NTEP)

    Why in the News?

    The Union Ministry of Health has re-strategized the National Tuberculosis Elimination Programme (NTEP) under the 100-Day TB Elimination Campaign to reduce TB cases and mortality through targeted interventions and a multi-pronged approach.

    Menace of TB in India:

    • According to the World Health Organization (WHO), India accounted for 26% of global TB cases and deaths in 2023.
    • The Indian Council of Medical Research (ICMR) conducted a National TB Prevalence Survey in 20 states, reporting 312 TB cases per lakh population.
      • The TB incidence rate decreased by 17.7%, from 237 per 100,000 in 2015 to 195 per 100,000 in 2023.
      • Similarly, TB-related deaths have declined by 21.4%, from 28 per lakh population in 2015 to 22 per lakh population in 2023.

    About the National TB Elimination Programme (NTEP):

    Details
    About
    • Former Name: Revised National Tuberculosis Control Programme (RNTCP)
    • Objective: To eliminate tuberculosis (TB) as a public health issue in India by 2025, as per PM Modi’s 2018 target.
    • Focus Areas: Early detection, complete treatment, prevention, and strengthening TB care and control services.

    Key Components of NTEP:

    • Universal Drug Susceptibility Testing (UDST): Early detection of drug-resistant TB.
    • Free Diagnosis and Treatment: Provided for all TB patients across India.
    • Nikshay: A case-based web-enabled TB information system for monitoring and case management.
    • Private Sector Engagement: Involving private healthcare providers for standardized care.
    Objectives under the National Strategic Plan 100-Day TB Elimination Campaign is an intensified effort launched to fast-track the detection and treatment of tuberculosis (TB) cases across the country.

    • Eliminate TB as a public health problem by 2025.
    • Achieve Universal Access to quality TB care.
    • Prevent the emergence of drug-resistant TB through early diagnosis and appropriate treatment.
    • Reduce the burden of TB through preventive interventions and awareness campaigns.
    • Ensure better case management through Nikshay, a case-based monitoring system.
    • 6. Engage with the private sector to ensure standardized and quality TB care.
    Steps taken by Govt
    • Universal Drug Susceptibility Testing (UDST): Early detection of drug-resistant TB.
    • Free Diagnosis and Treatment: Provided for all TB patients.
    • Nikshay System: Web-enabled case-based monitoring and management system for TB patients.
    • Private Sector Engagement: Ensuring standardized TB care by involving private healthcare providers.
    • National TB Prevalence Survey: Conducted to assess the TB burden in 20 states.
    • Enhanced Diagnostic Facilities: Including genetic and molecular tests for early detection.
    • Targeted Interventions for Vulnerable Populations: Focus on high-risk groups, including children and marginalized populations.

  • Commissioning of INS TUSHIL

    Commissioning of INS TUSHIL

    Why in the News?

    INS Tushil, a multi-role stealth guided missile frigate, is set to be commissioned by the Indian Navy at Kaliningrad, Russia.

    About INS Tushil:

    Details
    • INS Tushil is a multi-role stealth guided missile frigate, part of the Krivak III class (Project 1135.6).
    • It is the seventh in the series of Krivak III frigates, following the Talwar-class ships (three built at Baltiysky Shipyard in St. Petersburg) and the Teg-class ships (three built at Yantar Shipyard in Kaliningrad).

    Development of INS Tushil:

    • Built at Yantar Shipyard in Kaliningrad, Russia.
    • Contract signed in Oct 2016 between Indian Navy, JSC Rosoboronexport, and Government of India.
    • Indian team of specialists from the Warship Overseeing Team monitored the construction.
    • Extensive trials, including Factory Sea Trials, State Committee Trials, and Delivery Acceptance Trials, were conducted in 2024.
    Special Features
    • Speed of over 30 knots
    • Stealth design with advanced radar-absorbing features.
    • Equipped with guided missiles, advanced weapon systems, and radars.
    • Enhanced combat capabilities with a focus on anti-surface and anti-air warfare.
    • Helicopter deck for operations.
    Significance
    • Boosts India’s naval capabilities in the Indian Ocean Region (IOR).
    • Part of an ongoing effort to modernize the fleet with advanced technologies.
    • Strengthens India-Russia defence ties.
    • Will be key in maritime security and regional defense, especially in contested waters.

  • [6th December 2024] The Hindu Op-ed: A three-nation visit as a foray into summit diplomacy

    PYQ Relevance:

    Q) “If the last few decades were of Asia’s growth story, the next few are expected to be of Africa’s.” In the light of this statement, examine India’s influence in Africa in recent years. (UPSC CSE 2021)

    Mentor’s Comment: UPSC Mains have focused on ‘India’s influence in Africa (2021), and anti-colonial struggles in West Africa were led by the new elite of Western-educated Africans (in 2016).

    The Prime Minister’s visit to Nigeria, Brazil, and Guyana from November 16-21, 2024, was carefully planned to achieve multiple goals. This trip showcased India’s efforts in diplomacy across Africa, Latin America, and the Caribbean, focusing on important discussions about bilateral, regional, and global issues. While the main reason for the visit was to attend the G-20 summit in Brazil, dedicating time to Nigeria and Guyana added more value to this journey. The trip reflects India’s key foreign policy priorities.

    Today’s editorial highlights the what are the outcomes of the recent visits of the PM of India to Nigeria, Brazil and Guyana.

    _

    Let’s learn!

    Why in the News?

    The recent visit to Nigeria, Brazil, and Guyana provides valuable insights into India’s prevailing foreign policy priorities.

    Outcomes of the recent visit of the Indian PM to Nigeria in West Africa

    • Significance of the Visit: This was the first visit by an Indian Prime Minister to Nigeria in 17 years, underscoring the importance of strengthening bilateral ties. The visit was at the invitation of the Nigerian President, emphasizing a shared belief in democracy and pluralism.
    • Bilateral Cooperation: Discussions focused on enhancing cooperation in sectors such as trade, investment, education, energy, health, and culture.
      • New areas for collaboration included agriculture, urban transportation, renewable energy, and digital transformation.
    • Recognition and Awards: The Nigerian government conferred a top national award on the Indian leader for contributions to bilateral relations, signalling a strong appreciation for India’s expanding influence in Africa.
    • Counter-Terrorism Cooperation: Both leaders reaffirmed their commitment to combating terrorism and extremism together. However, only three memoranda of understanding (MoUs) were signed, likely due to bureaucratic delays.

    Recently visit of PM to Brazil for the G20 summit:

    • Summit Overview: Hosted in Rio de Janeiro on November 18-19, the G-20 Summit aimed to incorporate perspectives of the Global South into its decision-making processes. Key priorities included social inclusion, sustainable development, and reforming global governance institutions.
    • Outcomes: The summit led to the launch of the Global Alliance against Hunger and Poverty and the adoption of a roadmap for more effective multilateral development banks. However, progress on climate finance remained limited.
    • Bilateral Engagements: The Indian delegation engaged with several world leaders during the summit, including discussions with U.S. and European leaders, as well as a meeting with the Chinese Foreign Minister to advance bilateral relations.

    Last visit of PM to Guyana: The Wrap-Up

    • Historical Significance: The visit to Guyana marked the first by an Indian Prime Minister since 1968, underscoring India’s commitment to strengthening ties with Caribbean nations, particularly given that 40% of Guyana’s population is of Indian origin.
    • Cooperation Agreements: Ten MoUs were signed across various sectors, including energy, defence, urban development, digital collaboration, education, and food security, reflecting a robust bilateral cooperation program.
    • India-CARICOM Summit: During the visit, the Indian leader co-chaired the second India-CARICOM Summit in Georgetown, proposing seven pillars for enhanced cooperation that align with regional priorities.

    Importance of Carrabian for India

    • Strategic Trade Gateway: The Caribbean serves as a crucial gateway to North and South American markets, making it an important trade partner for India.
      • Strengthening ties with CARICOM nations can facilitate access to these markets, enhancing India’s economic outreach and trade opportunities in the region.
    • Energy Security and Resource Collaboration: The Caribbean, particularly nations like Guyana, is rich in hydrocarbons and other natural resources.
      • India’s engagement in the region aims to diversify its energy sources and reduce dependence on traditional suppliers.  
    • Cultural and Historical Ties: The Caribbean has a significant Indian diaspora, providing a strong foundation for cultural exchange and bilateral relations.  

    Way forward: 

    • Strengthen Regional Partnerships: Build on existing MoUs by establishing follow-up mechanisms to ensure timely implementation of agreements across sectors like energy, education, and digital transformation. Enhance India’s role in regional forums like CARICOM and AU to solidify partnerships.
    • Leverage Cultural and Economic Ties: Utilize India’s cultural connections, especially in Guyana and Nigeria, to foster people-to-people links while expanding trade and investment in renewable energy, agriculture, and technology to deepen economic cooperation.

    https://www.thehindu.com/opinion/op-ed/a-three-nation-visit-as-a-foray-into-summit-diplomacy/article68951760.ece

  • States and the challenge before the Finance Commission

    Why in the News?

    Recently, Tamil Nadu hosted the Sixteenth State Finance Commission, highlighting the need for fair resource allocation to performing states and addressing fiscal imbalances between the Union and states.

    What are the primary challenges faced by State Finance Commissions?

    • Vertical Fiscal Imbalance: There is a significant disparity in revenue-raising capabilities between the Union and state governments. The Union holds greater powers to generate revenue, while states bear most of the expenditure responsibilities. This imbalance has led to insufficient funds for states to meet developmental needs.
    • Inequitable Resource Distribution: Despite efforts to achieve equitable redistribution through vertical and horizontal devolution, actual outcomes often fall short of expectations.
      • For instance, the Fifteenth Finance Commission’s effective devolution was only 33.16% of the Union’s gross tax revenue, despite a declared share of 41%.
    • Inadequate Devolution: The increasing reliance on cess and surcharges by the Union government has further constrained the financial resources available to states. This trend undermines the intended fiscal autonomy that states require to implement local schemes effectively.
    • Demographic and Urbanization Challenges: Progressive states like Tamil Nadu face unique challenges related to ageing populations and rapid urbanisation, which strain their fiscal capacities while necessitating increased investment in infrastructure and services.

    How can compliance with constitutional mandates be improved?

    • Strengthening Legal Frameworks: Ensuring that SFCs operate within a robust legal framework that mandates transparency and accountability can enhance compliance with constitutional directives. This includes clearer guidelines on resource allocation and devolution processes.
    • Public Disclosure: Mandating public disclosure of financial data and project details in accessible formats can foster greater transparency and allow for citizen engagement in governance, thereby ensuring that SFCs adhere more closely to their constitutional roles.
    • Participatory Budgeting: Encouraging participatory budgeting practices can help align state financial decisions with local needs, ensuring that resources are allocated in a manner that reflects constitutional mandates for equitable development across regions.

    What reforms are necessary to enhance the effectiveness of SFCs?

    • Revising Devolution Principles: A reassessment of the principles governing vertical and horizontal devolution is essential to create a fairer distribution system that recognizes both the needs of less-developed states and the contributions of high-performing states like Tamil Nadu.
    • Augmenting State Resources: Increasing the share of gross central taxes allocated to states from 41% to at least 50% could provide states with greater fiscal autonomy, allowing them to fund locally relevant initiatives effectively.
    • Focus on Growth Incentives: Developing a progressive resource allocation methodology that rewards high-performing states can stimulate economic growth while ensuring that less-developed states also receive adequate support for their development needs.
    • Addressing Urbanization Needs: Specific reforms aimed at addressing urbanization challenges—such as earmarking funds for infrastructure development—will be crucial for progressive states experiencing rapid urban growth.

    Conclusion: State Finance Commissions must address fiscal imbalances, enhance devolution principles, and prioritise growth incentives to empower states. This is vital for achieving Sustainable Development Goals (SDGs) through equitable and inclusive development.

    Mains PYQ:

    Q Discuss the recommendations of the 13th Finance Commission which have been a departure from the previous commissions for strengthening the local government finances. (UPSC IAS/2013)