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  • What do OPEC+ production cuts mean for India?

    opec

    OPEC+ countries announced a voluntary oil production cut of 1.16 million barrels per day, which could impact the Indian economy, which depends on oil imports for 85% of its energy needs.

    Recent trend in crude oil prices

    • Crude oil prices crashed in April 2020 due to the pandemic and recovered when economies opened up.
    • Subsequently, prices rocketed in early 2022, but then the global economy slowed and a recession in advanced markets looms large.
    • This has resulted in declining demand for crude oil from major economies, causing oil prices to start falling again.

    What is OPEC+?

    • OPEC+ is a group of oil-producing countries that cooperate to manage the global supply and prices of crude oil.
    • It is made up of the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC countries, including Russia, Mexico, Kazakhstan, and others.
    • OPEC was founded in 1960 by five countries: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
    • The organization’s primary objective was to coordinate and unify petroleum policies among member countries to secure fair and stable prices for petroleum producers and a regular supply for consumers.

    Key functions of OPEC+

    • Oil Production Regulation: OPEC+ regulates oil production of its member countries to ensure that oil prices remain stable and there is no oversupply or undersupply of oil in the market.
    • Price Control: It aims to control the price of crude oil by regulating the supply of oil to the market.
    • Market Monitoring: OPEC+ closely monitors the global oil market to understand the demand and supply dynamics of oil.
    • Coordination: OPEC+ member countries work together to make decisions on oil production levels, pricing policies, and other matters that impact the global oil market.
    • Research and Development: OPEC+ invests in research and development to explore new technologies and methods that can help member countries to produce oil more efficiently and sustainably.

    Reason behind recent production cuts

    • OPEC+ countries aim to support market stability by reducing oil supplies.
    • The recent production cuts, totalling 3.7% of global demand, will raise crude oil prices per barrel and help cover up the losses producer countries faced after prices crashed.

    Impact on Indian economy

    • India is the third-largest oil consumer and imports 85% of its total crude oil requirement.
    • The cut could raise crude by $10/barrel, increasing import bill and worsening the current account deficit by around 0.4% of GDP.
    • This will impact foreign exchange reserves and result in the depreciation of the rupee, which in turn can increase imported inflation.

    Impact on common people

    • If the rise in crude oil import bill is passed on to the public, it may lead to cost-push inflation as every economic activity gets affected by oil price movement.
    • On the flip side, state-controlled oil marketing companies may be stopped from passing on the increased burden to consumers, further worsening the financial balance of the oil public sector units.

    Alternatives for India

    • India can turn to Russia for more supplies of cheap crude, but of late there has been a small decline in Russia’s share in India’s oil imports.
    • As a long-term strategy, the government should focus on alternative energy sources and building better roads.
    • The government should work on bringing petroleum products within the goods and services tax, and promote energy-efficient use of vehicles or an eco-driving culture.

     

  • Set time limit to Governor to grant assent to Bills: TN urges Centre

    governor

    Central idea: The Tamil Nadu Legislative Assembly passed a resolution urging the Union Government to issue appropriate instructions to Governor to give his assent to bills passed by the Assembly within a specific period.

    Who is Governor?

    • Parallel to President: The Governors of the states of India have similar powers and functions at the state level as those of the President of India at the Central level.
    • Nominal head: The governor acts as the nominal head whereas the real power lies with the Chief Ministers of the states and her/his councils of ministers.
    • Similar offices: Governors exist in the states while Lieutenant Governors or Administrators exist in union territories including the National Capital Territory of Delhi.
    • Non-local appointees: Few or no governors are local to the state that they are appointed to govern.

    Governor-State Relations: How are they guided?

    • Acting on aid and advice: Although envisaged as an apolitical head who must act on the advice of the council of ministers, the Governor enjoys certain powers granted under the Constitution.
    • Discretion: He has monopoly for giving or withholding assent to a Bill passed by the state legislature, or determining the time needed for a party to prove its majority, or which party must be called first do so, generally after a hung verdict in an election.
    • Apparatus of interaction: There are no provisions laid down for the manner in which the Governor and the state must engage publicly when there is a difference of opinion. The management of differences has traditionally been guided by respect for each other’s boundaries.

    Role of Governor in Legislature

    • Integral part: A Bill passed by the State Assembly becomes law only after it is assented to by the Governor. The Governor being a part of the State legislature, the process of law making is complete only when he signs it, signifying his assent.
    • Established practice: In all democratic countries, similar provision exists in their constitutions.

    Power of Governor vis-a-vis legislature

    • What Article 200 says: The Constitution provides certain options for the Governor to exercise when a Bill reaches him from the Assembly.
    • There are four possible scenarios:
    1. Assent: He may give assent.
    2. Reconsider: He can send it back to the Assembly requesting it to reconsider some provisions of the Bill, or the Bill itself. In this case, if the Assembly passes the Bill without making any change and sends it back to the Governor, he will have to give assent to it.
    3. Reserve: The third option is to reserve the Bill for the consideration of the President.
    4. Withhold: The fourth option, of course, is to withhold the assent.

    Why there is ambiguity over the role of governors in India?

    • Role of the governor: The question of whether a Governor is permitted by the Constitution to cause uncertainty in the matter of giving assent to the Bills passed by State legislatures assumes great importance.
    • Presidential Assent: The provision concerned makes it clear that a Bill can be reserved for the consideration of the President only if the Governor forms an opinion that the Bill would endanger the position of the High Court by whittling away its powers. The Constitution does not mention any other type of Bill which is required to be reserved for the consideration of the President.
    • Constitution is silent: the Constitution does not mention the grounds on which a Governor may withhold assent to a Bill.
    • No remedy: The Indian Constitution, however, does not provide any such remedy as that of USA or UK. The courts too have more or less accepted the position that if the Governor withholds assent, the Bill will go. Thus, the whole legislative exercise will become fruitless. It does not square with the best practices in old and mature democracies.

    Various friction points

    In recent years, these have been largely about:

    1. Selection of the party to form a government
    2. Deadline for proving the majority
    3. Sitting on Bills
    4. Withhold of assents
    5. Passing negative remarks on the state administration

    Why does this happen?

    • Political appointment: This is because Governors have become political appointees. Politicians become Governors and then resign to fight elections.
    • Nature of appointment: In the Constitution, there are no guidelines for exercise of the Governor’s powers, including for appointing a CM or dissolving the Assembly.
    • Defying constituent assembly: The Constituent Assembly envisaged governor to be apolitical.
    • Nature of appointment: The CM is answerable to the people. But the Governor is answerable to no one except the Centre.
    • Constitutional vacuum: Once can sugercoat it with ideas of constitutional morality and values, but the truth is there is a fundamental defect in the Constitution.
    • Security of Tenure: There is no provision for impeaching the Governor, who is appointed by the President on the Centre’s advice. While the Governor has 5-year a tenure, he can remain in office only until the pleasure of the President.
    • Powers in legislation: There is no limit set for how long a Governor can withhold assent to a Bill.

    What reforms have been suggested?

    • From the Administrative Reforms Commission of 1968 to Sarkaria Commission of 1988 and the one mentioned above, several panels have recommended reforms, such as:
    1. Selection of the Governor through a panel comprising the PM, Home Minister, Lok Sabha Speaker and the CM,
    2. Fixing his tenure for five years
    3. Provision to impeach the Governor by the Assembly
    • No government has implemented any of these recommendations.

     

  • [pib] State Energy Efficiency Index, 2021-22

    energy

    The Union Minister of Power and New & Renewable Energy has released the report of State Energy Efficiency Index (SEEI) 2021-22.

    State Energy Efficiency Index

    • The SEEI 2021-22 has been developed by Bureau of Energy Efficiency (BEE) in collaboration with Alliance for an Energy Efficient Economy (AEEE).
    • SEEI 2021-22 consists of 50 indicators (common and programme-specific) spanning 7 sectors – buildings, industry, municipal services, transport, agriculture, DISCOMs, and cross-sector.
    • 36 states and union territories have been assessed for their energy efficiency progress in FY 2020- 21 and FY 2021-22 in SEEI 2021-22.
    • Based on their efforts and achievements, states have been classified as ‘Front runner’, ‘Achiever’, ‘Contender’, and ‘Aspirant’.

    Highlights of the 2021-22 report

    Category States
    Front Runner (>60 points) Andhra Pradesh, Karnataka, Kerala, Rajasthan, Telangana
    Achiever (50-60 points) Assam, Haryana, Maharashtra, Punjab

     

    Importance of SEEI

    • The SEEI improves data collection, enables cross-state collaboration, and develops energy efficiency program ideas.
    • It helps states identify areas for improvement, learn from best practices, and adopt an economy-wide approach to energy efficiency implementation.
    • By prioritizing energy efficiency, it aims at driving decarbonization efforts and achieving a more sustainable future.

    Key recommendations of the report

    The report outlines the following recommendations to help states drive change in EE which will contribute towards the fulfillment of SDGs and NDC:

    • Enabling fiscal assistance for energy efficiency in the focus sectors.
    • Developing institutional capacity in states and UTs to address emerging needs and challenges in energy efficiency implementation.
    • Enhancing cross-functional collaborations across financial institutions, energy service companies, and energy professionals in large-scale energy efficiency implementation in states.
    • Mainstreaming energy data reporting and monitoring across sectors.

    Back2Basics: Bureau of Energy Efficiency (BEE)

    • BEE was established by the Government of India on 1st March 2002 under the provisions of the Energy Conservation Act, 2001.
    • The primary objective of BEE is to reduce the energy intensity of the Indian economy by developing policies and strategies based on self-regulation and market principles.
    • BEE coordinates with designated consumers, designated agencies, and other organizations to perform its functions under the Energy Conservation Act.
    • The Energy Conservation Act provides for both regulatory and promotional functions for BEE.
    • BEE’s role includes recognizing, identifying, and utilizing existing resources and infrastructure to promote energy conservation and efficiency.
    • It works towards driving energy efficiency policies and programs at the state and local level, enabling cross-state collaboration and developing energy efficiency program ideas.

     

  • What is UN Democracy Fund?

    democracy

    Central Idea: The article provides an explanation of the UN Democracy Fund (UNDEF), its history and objectives, as well as the involvement of India and the United States in its establishment.

    Why in news?

    • There is a controversy surrounding the fund’s support for NGOs funded by George Soros, who is on a watchlist in India.
    • He had alleged the Adani turmoil will weaken Indian politics and lead to a “democratic revival” in the country.

    What is UN Democracy Fund?

    • The UNDEF was established in 2005 with an initial contribution of $10 million each from the United States and India.
    • Its aim is to support projects that strengthen the voice and participation of civil society, promote human rights, and encourage the development of democratic institutions and processes.
    • It is funded entirely by voluntary contributions from member states and is governed by an advisory board composed of 16 members representing different regions of the world.

    Role in promoting democracy and civil society

    • UNDEF’s mission is to support projects that strengthen the voice and participation of civil society, promote human rights, and encourage the development of democratic institutions and processes.
    • The fund solicits and receives up to 3,000 proposals from NGOs around the world each year.
    • An advisory board considers these proposals and recommends proposals for approval by the Secretary-General.
    • Between 30 to 50 projects are chosen every year, and in 15 rounds of funding so far, UNDEF has supported over 880 two-year projects in more than 130 countries.

    India’s involvement in the governance of UNDEF

    • India has been a member of the UNDEF advisory board since the fund’s inception.
    • The board is composed of 16 members representing different regions of the world, and it includes the eight largest member state contributors and six other states to reflect diverse geographical representation, including one “small island” and developing states.
    • It also has two individual members and two CSOs.
    • The CSOs currently serving on the board include CIVICUS and Transparency, Accountability and Participation Network.

    India’s involvement in the establishment of UNDEF

    • India played a key role in the establishment of UNDEF as it was one of the founding members of the fund.
    • In 2005, India’s then PM, Manmohan Singh, and US President George W. Bush announced the US-India Global Democracy Initiative, which included support for the UNDEF.
    • India has contributed to the fund on several occasions since its inception, although its contributions have decreased in recent years.

    Contradictions with UNDEF

    • India’s relationship with UNDEF has been marked by contradictions.
    • While India has supported the fund and contributed to it, it has also put George Soros on a watchlist in India while UNDEF has no objections to the fund giving grants to NGOs funded by Soros.
    • This underscores a contradiction between the imperatives of the Modi government’s high table diplomacy and its domestic political ideology.
    • It requires only Delhi to deploy a soft touch in the former while playing hardball at home for domestic audiences.

    India’s contribution so far

    • India has contributed to UNDEF on several occasions since its inception, although its contributions have decreased in recent years.
    • India gave $5 million to the fund in 2005, 2006, 2008, 2009 and 2011, but no contribution was made in 2007 and 2010.
    • The contributions began dipping from 2012, with the amount being $4.71 million that year.
    • In 2014, India slashed its funding, contributing only $200,000 that year and in 2015.
    • In 2016, it was a mere $50,000, and no contribution was made in 2017.
    • In 2018 and 2019, India was back with $100,000, and in 2020, 2021 and 2022, it gave $150,000.

     

  • How is a ‘National Party’ in India defined?

    The Election Commission of India recognised the Aam Aadmi Party (AAP) as a national party, while revoking the status of the All India Trinamool Congress, Nationalist Congress Party (NCP) and the Communist Party of India (CPI).

    What is National Party?

    • The name suggests that a national party would be one that has a presence ‘nationally’, as opposed to a regional party whose presence is restricted to only a particular state or region.
    • National parties are usually India’s bigger parties.
    • However, some smaller parties, like the communist parties, are also recognised as national parties in India.
    • A certain stature is sometimes associated with being a national party, but this does not necessarily translate into having a lot of national political clout.

    How is a political party defined?

    The ECI’s Political Parties and Election Symbols, 2019 handbook species following criteria:

    National Party Definition

    For recognition as a “National Party” in India, the conditions specified are:

    1. a 6% vote share in the last Assembly polls in each of any four states, as well as four seats in the last Lok Sabha polls; or
    2. 2% of all Lok Sabha seats in the last such election, with MPs elected from at least three states; or
    3. Recognition as a state party in at least four states.

    For recognition as a “State Party”, any one of five conditions needs to be satisfied:

    1. two seats plus a 6% vote share in the last Assembly election in that state; or
    2. one seat plus a 6% vote share in the last Lok Sabha election from that state; or
    3. 3% of the total Assembly seats or 3 seats, whichever is more; or
    4. one of every 25 Lok Sabha seats (or an equivalent fraction) from a state; or
    5. an 8% state-wide vote share in either the last Lok Sabha or the last Assembly polls.

    Benefits for recognized National Parties in India

    • This is subject to the fulfillment of the conditions prescribed by the Commission in the Election Symbols (Reservation and Allotment) Order, 1968.

    (a) Reserved Symbol

    • If a party is recognised as a ‘state party’, it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it in the state in which it is so recognised.
    • If a party is recognised as a ‘national party’ it is entitled for exclusive allotment of its reserved symbol to the candidates set up by it throughout India.

    (b) Proposer for nomination

    • Recognised ‘state’ and ‘national’ parties in India need only one proposer for filing the nomination.

    (c) Campaigning benefits

    • National Parties in India are also entitled for two sets of electoral rolls free of cost and broadcast/telecast facilities over state-owned Akashvani/Doordarshan during the general elections.

     

  • Fishing Industry: India and Sri Lanka Needs a Boost

    Central Idea

    • The neglect of the fishing industry by India and Sri Lanka has resulted in an ongoing dispute over fishing rights in the Palk Strait. Developing the fishing industry could help resolve the conflict and boost the economies of both countries.

    Fishing Industry

    What is Blue Economy?

    • Origin of the concept: Gunter Pauli’s book, “The Blue Economy: 10 years, 100 innovations, 100 million jobs” (2010) brought the Blue Economy concept into prominence.
    • A project to find best nature inspired and sustainable technologies: Blue Economy began as a project to find 100 of the best nature-inspired technologies that could affect the economies of the world. While sustainably providing basic human needs potable water, food, jobs, and habitable shelter.
    • Inclusive approach and objective: This is envisaged as the integration of Ocean Economy development with the principles of social inclusion, environmental sustainability and innovative, dynamic business models
    • Environment friendly maritime infrastructure: It is creation of environment-friendly infrastructure in ocean, because larger cargo consignments can move directly from the mothership to the hinterland through inland waterways, obviating the need for trucks or railways

    Indo-Sri Lankan dispute over fishing rights in Palk Strait

    • Maritime boundary agreement: The maritime boundary agreements signed in 1974 and 1976 allowed fishermen of both nations to fish in each other’s waters as they traditionally did.
    • Absence of physical demarcation: Lack of physical demarcation of maritime boundaries resulted in Indian fishermen encroaching into Sri Lankan waters during the civil war.
    • Rising conflicts: The Sri Lankan fishing community sought to reclaim their rights after the end of hostilities, leading to conflict with Indian fishers. Sri Lankan Navy’s intervention has resulted in arrests and even fatal shootings of Indian fishermen.

    Neglect of the fishing industry by India and Sri Lanka

    • India’s marine fishery: India’s marine fishery has been dominated by the artisanal sector, which can afford only small sailboats or canoes to fish for subsistence.
    • Lack of investment: India’s fisheries are being transformed into a commercial enterprise, but lack of investment in a deepwater fleet results in most fishing taking place in coastal waters, leading to competition with neighboring countries.
    • Underexploited resources: Rich resources in India’s Exclusive Economic Zone remain underexploited, with much of the catch from India’s fishing grounds taken away by better-equipped fishing fleets of other Indo-Pacific countries indulging in illegal, unregulated, and unreported fishing.
    • Growing tensions: Neglect of the fishing industry has resulted in dwindling fish stocks, rising fuel costs, and growing tensions between India and Sri Lanka.

    Development of the fishing industry

    • China: China has mobilized its fishing industry to meet rising demand for protein in the Chinese diet and is now a fishery superpower.
    • India: India needs to invest in a deepwater fleet to exploit rich fishing grounds in its Exclusive Economic Zone and compete with other countries in the Indo-Pacific region.
    • India must focus on modernisation: India should focus on mechanization and modernization of fishing vessels, developing deep-water fishing fleets, building a DWF fleet around the mother ship concept, and developing modern fishing harbours.

    PM Matsya Sampada Yojana

    • PM Matsya Sampada Yojana is a scheme launched by the Government of India in 2020, with the aim of boosting the fisheries sector in the country. The scheme has a total outlay of Rs. 20,050 crores and is implemented over a period of five years from 2020-21 to 2024-25. The scheme is focused on four key areas of intervention, which include:
    1. Development of infrastructure and modernization of the fisheries sector: This involves the creation of new fishing harbours, fish landing centres, cold chain facilities, and other related infrastructure.
    2. Fisheries management and regulatory framework: This involves strengthening the regulatory framework for fisheries and aquaculture, promoting sustainable fishing practices, and conserving marine biodiversity.
    3. Fisheries post-harvest operations and value chain: This involves promoting the processing and value addition of fish and fishery products, and improving market access for fishermen and fish farmers.
    4. Aquaculture development: This involves promoting the development of inland fisheries and aquaculture, including the creation of new fish farms, and supporting the adoption of modern technologies for fish farming.

    Conclusion

    • Neglect of the fishing industry by India and Sri Lanka has resulted in an ongoing dispute over fishing rights in the Palk Strait. Developing the fishing industry could help resolve the conflict and boost the economies of both countries. The government’s Pradhan Mantri Matsya Sampada Yojana could be used to form an Indo-Sri Lankan Fishing Corporation to provide a huge boost to the fishing industries of both nations and remove an unwanted irritant in bilateral relations.

    Mains Question

    Q. It is said that fishing industry has been overly neglected by India and Sri Lanka. Development of the fishing industry is crucial to boost the economy for both the countries. Discuss.

  • Artificial Intelligence (AI) for Legislative Procedures

    AI

    Central Idea

    • Artificial Intelligence (AI) has gained worldwide attention, and many mature democracies are using it for better legislative procedures. In India, AI can be used to assist parliamentarians in preparing responses for legislators, enhancing research quality, and obtaining information about any Bill, legislative drafting, amendments, interventions, and more. However, before AI can work in India, there is a need to codify the country’s laws, which are opaque, complex, and face a huge translation gap between law-making, law-implementing, and law-interpreting organizations.

    What is Artificial Intelligence?

    • AI is a constellation of technologies that enable machines to act with higher levels of intelligence and emulate the human capabilities of sense, comprehend and act.
    • The natural language processing and inference engines can enable AI systems to analyze and understand the information collected.
    • An AI system can also take action through technologies such as expert systems and inference engines or undertake actions in the physical world.
    • These human-like capabilities are augmented by the ability to learn from experience and keep adapting over time.
    • AI systems are finding ever-wider application to supplement these capabilities across various sectors

    Need to Codify Laws

    • Current laws are complex and opaque: Current laws in India pose many challenges, such as their complexity, opaqueness, and lack of a single source of truth.
    • The India Code portal does not provide complete information: The India Code portal is not enough to provide complete information about parent Acts, subordinate legislation, and amendment notifications.
    • AI can be used to provide comprehensive information: There is a need to make laws machine-consumable with a central law engine, which can be a single source of truth for all acts, subordinate pieces of legislation, gazettes, compliances, and regulations. AI can use this engine to provide information on applicable acts and compliances for entrepreneurs or recommend eligible welfare schemes for citizens.

    Assisting Legislators

    • Potential of AI for legislators: AI can help Indian parliamentarians manage constituencies with a huge population by analysing citizens’ grievances and social media responses, flagging issues that need immediate attention and assisting in seeking citizen inputs for public consultation of laws and preparing a manifesto.
    • AI-powered assistance: Many Parliaments worldwide are now experimenting with AI-powered assistants.
    • For instance:
    • Netherlands’s Speech2Write system: The Speech2Write system in the Netherlands House of Representatives, which converts voice to text and translates voice into written reports.
    • AI tools Japan: Japan’s AI tool assists in preparing responses for its legislature and helps in selecting relevant highlights in parliamentary debates.
    • Brazil: Brazil has developed an AI system called Ulysses, which supports transparency and citizen participation.
    • NeVA portal India: India is also innovating and working towards making parliamentary activities digital through the ‘One Nation, One Application’ and the National e-Vidhan (NeVA) portal.

    Simulating Potential Effects of Laws

    • Dataset modelling: AI can simulate the potential effects of laws by modelling various datasets such as the Census, data on household consumption, taxpayers, beneficiaries from various schemes, and public infrastructure.
    • Flag outdated laws: In that case, AI can uncover potential outcomes of a policy and flag outdated laws that require amendment.
    • For example: During the COVID-19 pandemic, ‘The Epidemic Diseases Act, 1897’ failed to address the situation when the virus overwhelmed the country. Several provisions in the Indian Penal Code (IPC) are controversial and redundant, such as Article 309 (attempted suicide) of the IPC continues to be a criminal offense. Many criminal legislation pieces enacted more than 100 years ago are of hardly any use today.

    Conclusion

    • The COVID-19 pandemic has given a strong thrust to the Digital India initiative, and a digitization of services needs to be kept up in the field of law, policy-making, and parliamentary activities, harnessing the power of AI. However, the use of AI must be encouraged in an open, transparent, and citizen-friendly manner, as AI is a means to an end, not an end in itself. Therefore, it is necessary to address the current challenges faced by India’s laws before AI can be effectively used to assist parliamentarians in their legislative duties.

    Mains Question

    Q. Artificial Intelligence (AI) has gained worldwide attention, and many mature democracies are using it for better legislative procedures. In this light evaluate the potential of AI in assisting Indian parliamentarians.

  • India’s Space Industry: Enormous Potential

    Central Idea

    • India needs an enabling policy and regulatory environment to tap into the potential of the Second Space Age and its rapidly growing space economy.

    What is mean by the Second Space Age?

    • Commercialization: The Second Space Age refers to the recent era of increased commercialization and private sector involvement in space exploration, which began in the early 2000s.
    • Emergence of private space companies: This period has been marked by the emergence of private space companies like SpaceX, Blue Origin, and Virgin Galactic, who are investing heavily in space technology and infrastructure.
    • Today’s space domain has many more actors once dominated by US and USSR: Compared to the First Space Age dominated by the US and the USSR, today’s space domain has many more actors, with a majority being private companies. Private companies account for 90% of global space launches since 2020, and India is no exception
    • Increasing involvement of non-spacefaring nations: The Second Space Age is also characterized by the increasing involvement of non-spacefaring nations in space exploration and the development of technologies that enable greater access to space for both commercial and scientific purposes.
    • Exploration: The hope is that this new era will lead to breakthroughs in areas like space tourism, asteroid mining, and Mars colonization, among others.

    India’s Space Journey

    • India’s journey in space began modestly in the 1960s.
    • Societal objectives: Over the decades, the Indian Space Research Organisation (ISRO) prioritized societal objectives and benefits, such as developing satellite technology for mass communication, remote sensing for weather forecasting, resource mapping of forests, agricultural yields, groundwater and watersheds, fisheries and urban management, and satellite-aided navigation.
    • Enhanced launch capabilities: ISRO also developed satellite launch capabilities, beginning with the SLV-1 in the 1980s, followed by the PSLV series, which has become its workhorse with over 50 successful launches.

    Facts for prelims

    Steps taken to promote the space industry in India

    Resulting Outcome
    Creation of Indian Space Research Organisation (ISRO) in 1969 Establishment of a strong foundation for space research and exploration in India
    Launch of Aryabhata satellite in 1975 First satellite successfully launched by India
    Establishment of the Vikram Sarabhai Space Centre (VSSC) in 1972 Development of technologies for rocket and satellite launch
    Launch of Rohini satellite in 1983 First satellite launched using an Indian-made launch vehicle
    Launch of Polar Satellite Launch Vehicle (PSLV) in 1993 Capability to launch smaller satellites into orbit
    Launch of Geosynchronous Satellite Launch Vehicle (GSLV) in 2001 Capability to launch larger and heavier satellites into orbit
    Successful Mars Orbiter Mission (MOM) in 2014 India became the first country to successfully launch a spacecraft to Mars in its first attempt
    Formation of NewSpace India Limited (NSIL) in 2019 Increased involvement of private sector in space activities and commercialization of space technologies
    Announcement of Gaganyaan mission in 2018 Development of human spaceflight capabilities in India

    India’s Space Potential

    • Economy and employment: India’s space economy, estimated at $9.6 billion in 2020, is expected to be $13 billion by 2025. However, with an enabling policy and regulatory environment, the Indian space industry could exceed $60 billion by 2030, directly creating more than two lakh jobs.
    • Downstream activities: Downstream activities such as satellite services and associated ground segment are dominant, accounting for over 70% of India’s space economy.
    • Media and entertainment segment: Media and entertainment account for 26% of India’s space economy, with consumer and retail services accounting for another 21%.

    The Growing Role of the Private Sector

    • Increasing space start ups: The Indian private sector is responding to the demands of the Second Space Age, with over 100 space start-ups today. From less than $3 million in 2018, investment in the sector has doubled in 2019 and crossed $65 million in 2021.
    • Potential of multiplier effect on economy: The sector is poised for take-off, as a transformative growth multiplier like the IT industry did for the national economy in the 1990s.

    Way ahead: Creating an Enabling Environment

    • ISRO needs to focus on research and collaborate with the Indian private sector, which has different needs and demands.
    • To create an enabling environment for the private sector, India needs a space activity act that provides legal grounding, sets up a regulatory authority, and enables venture capital funding into the Indian space start-up industry.
    • Although a series of policy papers have been circulated in recent years, legislation is needed to provide legal backing and create an enabling environment for private sector growth.

    Conclusion

    • India’s space industry has enormous potential, but realizing it requires an enabling policy and regulatory environment that encourages private sector growth. With a space activity act that provides legal backing, sets up a regulatory authority, and enables venture capital funding, India can take advantage of the Second Space Age and become a major player in the global space economy.

    Mains Question

    Q. What do you understand by mean Second Space Age? Highlight potential of India’s space industry and growing role of private sector

  • 16th Finance Commission to be constituted in November

    The Union government is gearing up to constitute the Sixteenth Finance Commission in November this year to recommend the formula for sharing revenues between the Centre and the States for the five-year period beginning 2026-27.

    What is the Finance Commission?

    • The Finance Commission (FC) was established by the President of India in 1951 under Article 280 of the Indian Constitution.
    • It was formed to define the financial relations between the central government of India and the individual state governments.
    • The Finance Commission (Miscellaneous Provisions) Act, 1951 additionally defines the terms of qualification, appointment and disqualification, the term, eligibility and powers of the Finance Commission.
    • As per the Constitution, the FC is appointed every five years and consists of a chairman and four other members.
    • Since the institution of the First FC, stark changes in the macroeconomic situation of the Indian economy have led to major changes in the FC’s recommendations over the years.

    Constitutional Provisions

    Several provisions to bridge the fiscal gap between the Centre and the States were already enshrined in the Constitution of India, including Article 268, which facilitates levy of duties by the Centre but equips the States to collect and retain the same.

    Article 280 of the Indian Constitution defines the scope of the commission:

    1. Who will constitute: The President will constitute a finance commission within two years from the commencement of the Constitution and thereafter at the end of every fifth year or earlier, as the deemed necessary by him/her, which shall include a chairman and four other members.
    2. Qualifications: Parliament may by law determine the requisite qualifications for appointment as members of the commission and the procedure of selection.
    3. Terms of references: The commission is constituted to make recommendations to the president about the distribution of the net proceeds of taxes between the Union and States and also the allocation of the same among the States themselves. It is also under the ambit of the finance commission to define the financial relations between the Union and the States. They also deal with the devolution of unplanned revenue resources.

    Important functions

    • Devolution of taxes: Distribution of net proceeds of taxes between Center and the States, to be divided as per their respective contributions to the taxes.
    • Grants-in-aid: Determine factors governing Grants-in-Aid to the states and the magnitude of the same.
    • Augment states fund: To make recommendations to the president as to the measures needed to augment the Fund of a State to supplement the resources of the panchayats and municipalities in the state on the basis of the recommendations made by the finance committee of the state.
    • Any financial function: Any other matter related to it by the president in the interest of sound finance.

    Members of the Finance Commission

    • The Finance Commission (Miscellaneous Provisions) Act, 1951 was passed to give a structured format to the finance commission and to bring it to par with world standards.
    • It laid down rules for the qualification and disqualification of members of the commission, and for their appointment, term, eligibility and powers.
    • The Chairman of a finance commission is selected from people with experience of public affairs. The other four members are selected from people who:
    1. Are, or have been, or are qualified, as judges of a high court,
    2. Have knowledge of government finances or accounts, or
    3. Have had experience in administration and financial expertise; or
    4. Have special knowledge of economics

    Key challenges ahead for 16th FC

    • Overlap with GST Council: A key new challenge for the 16th FC would be the co-existence of another permanent constitutional body, the GST Council.
    • Conflict of interest: The GST Council’s decisions on tax rate changes could alter the revenue calculations made by the Commission for sharing fiscal resources.
    • Feasibility of recommendations: Centre usually takes the Commission’s recommendations on States’ share of tax devolution and the trajectory for fiscal targets into account, and ignores most other suggestions.

    Major outstanding recommendations

    • Creating a Fiscal Council: The 15th FC has suggested creating a Fiscal Council where Centre and States collectively work out India’s macro-fiscal management challenges, but the government has signalled there is no need for it, he pointed out.
    • Creating a non-lapsable fund for internal security: The centre accepted to set up a non-lapsable fund for internal security and defense ‘in principle’, its implementation still has to be worked out.

  • What is Article 371F?

    371

    Former Sikkim CM claimed that the Sikkimese people feel betrayed as Article 371F, which guarantees special provisions for Sikkim, was “violated”.

    What is Article 371F?

    • Article 371F is a special provision in the Constitution of India that was created to provide for the unique status of Sikkim, a state located in the northeastern part of India.
    • Sikkim was an independent kingdom until 1975, when it became the 22nd state of India.
    • Article 371F was included in the Constitution to ensure that Sikkim’s distinct identity and cultural heritage were protected and preserved after its merger with India.

    Special provisions for Sikkim

    Under Article 371F, Sikkim has been granted several special provisions that are not available to other states in India. Some of the key provisions of Article 371F are:

    • Protection of Sikkimese people: Only the descendants of Sikkim subjects (those who lived in the state before its merger with India) whose names were mentioned in the 1961 register are considered Sikkimese and are entitled to certain benefits, such as the right to own land and get state government jobs. They are also exempted from paying income tax.
    • Legislative powers: The Governor of Sikkim has special powers with respect to the Sikkim Legislative Assembly, including the power to nominate one member to the Assembly and the power to give his or her assent to certain bills.
    • Constitutional safeguards: Certain constitutional safeguards have been provided to the people of Sikkim to protect their distinct identity and cultural heritage.
    • Formation of Committees: The Central Government has the power to appoint a committee of experts to advise on matters related to Sikkim, and the State Government can also appoint committees to examine issues related to the protection of Sikkim’s unique identity.

    Why in news?

    • The Financial Bill, 2023 redefined Sikkimese as any Indian citizen domiciled in Sikkim, which would extend these benefits to a broader population.
    • This move is seen as a violation of Article 371F, which was the basis for Sikkim’s merger with India in 1975.

    Concerns highlighted

    • The leader claimed that the people of Sikkim feel betrayed by the violation of Article 371F.
    • He alleged that Sikkim has become a hotbed for political violence.
    • He claimed that unrest in a sensitive border state like Sikkim is not good for national security.

    Back2Basics: Article 371

    • It is a provision in the Constitution of India that grants special provisions and autonomy to certain states in India.
    • It is a set of temporary and transitional provisions that were included in the Constitution to address the specific needs and aspirations of various regions and communities in the country.
    • The provisions of Article 371 differ from state to state, depending on the specific needs and demands of the region. For instance:
    1. Maharashtra and Gujarat: Article 371 provides for special provisions for the states of Maharashtra and Gujarat, which grants certain rights and privileges to the people of the Marathi-speaking areas of Maharashtra and the Gujarati-speaking areas of Gujarat.
    2. Nagaland: Article 371A provides for special provisions and autonomy for the state of Nagaland. It grants the Nagaland Legislative Assembly special powers with respect to lawmaking, and prohibits outsiders from acquiring land in the state.
    3. Assam: Article 371B provides for special provisions for the state of Assam, which includes the establishment of a regional council for the state and grants the council certain legislative and executive powers.
    4. Manipur: Article 371C provides for special provisions for the state of Manipur. It gives the Manipur Legislative Assembly the power to enact laws related to land, forests, and minerals, and also provides for the protection of the rights of the hill tribes in the state.
    5. Andhra Pradesh: Article 371D provides for the establishment of a special committee to oversee the development of backward regions in the state of Andhra Pradesh.
    • The provisions are aimed at promoting the development and welfare of the people in these states, while preserving their unique cultural and linguistic identity.