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  • Armed Forces (Special Powers) Act

    Keen on lifting AFSPA from NE: PM

    The PM informed that AFSPA could be withdrawn partially from Assam, Manipur and Nagaland (from April 1) due to peaceful conditions since 2014.

    What is the news?

    • The AFSPA will now be applicable fully only in 31 districts and partially in 12 districts of four states in the Northeast Assam, Nagaland, Manipur and Arunachal Pradesh.
    • These four states together comprise 90 districts.
    • The AFSPA was completely withdrawn in Meghalaya in 2018, Tripura in 2015 and Mizoram in the 1980s.

    Immediate reasons for withdrawal

    • The Northeast has lived under the shadow of AFSPA for nearly 60 years, creating a feeling of alienation from the rest of the country.
    • The move is expected to help demilitarise the region; it will lift restrictions of movements through check points and frisking of residents.
    • Years of AFSPA regime has had psychological consequences, trauma and alienation of the people.

    AFSPA: A Backgrounder

    • The AFSPA, 1958 came into force in the context of insurgency in the North-eastern States decades ago.
    • It provides “special power” to the Armed Forces applies to the Army, the Air Force and the Central Paramilitary forces etc.
    • It has been long contested debate whether the “special powers” granted under AFSPA gives total immunity to the armed forces for any action taken by them.

    Armed Forces (Special Powers) Act, 1958

    • Armed Forces Special Powers Act, to put it simply, gives armed forces the power to maintain public order in “disturbed areas.”
    • AFSPA gives armed forces the authority use force or even open fire after giving due warning if they feel a person is in contravention of the law.
    • The Act further provides that if “reasonable suspicion exists”, the armed forces can also arrest a person without warrant; enter or search premises without a warrant; and ban the possession of firearms.

    What are the Special Powers?

    The ‘special powers’ which are spelt out under Section 4 provide that:

    (a) Power to use force, including opening fire, even to the extent of causing death if prohibitory orders banning assembly of five or more persons or carrying arms and weapons, etc are in force in the disturbed area;

    (b) Power to destroy structures used as hide-outs, training camps, or as a place from which attacks are or likely to be launched, etc;

    (c) Power to arrest without warrant and to use force for the purpose;

    (d) Power to enter and search premises without a warrant to make arrest or recovery of hostages, arms and ammunition and stolen property etc.

    What are the Disturbed Areas?

    • A disturbed area is one that is declared by notification under Section 3 of the AFSPA.
    • As per Section 3, it can be invoked in places where “the use of armed forces in aid of the civil power is necessary”.

    Who can declare/notify such areas?

    • The Central Government or the Governor of the State or administrator of the Union Territory can declare the whole or part of the State or Union Territory as a disturbed area.
    • A suitable notification would have to be made in the Official Gazette.

    Presently active ‘Disturbed Areas’

    • AFSPA is currently in force in Assam, Nagaland, Manipur, 3 districts of Arunachal Pradesh, and areas falling within the jurisdiction of 8 police stations in Arunachal Pradesh bordering Assam.
    • In Jammu and Kashmir, a separate law Armed Forces (Jammu and Kashmir) Special Powers Act, 1990 has been in force.

    AFSPA: Is it a License to Kill?

    While the operation of the Section has been controversial in itself, it has attracted much criticism when actions have resulted in the death of civilians.

    • Power to kill: Section 4 of the Act granted officers the authority to “take any action” even to the extent to cause the death.
    • Protection against prosecution: This power is further bolstered by Section 6 which provides that legal can be instituted against the officer, except with the previous sanction of the Central Government.

    Supreme Court’s Observations over AFSPA

    • These extra-judicial killings became the attention of the Supreme Court in 2016.
    • It clarified that the bar under Section 6 would not grant “total immunity” to the officers against any probe into their alleged excesses.
    • The judgment noted that if any death was unjustified, there is no blanket immunity available to the perpetrator(s) of the offense.
    • The Court further noted that if an offense is committed even by Army personnel, there is no concept of absolute immunity from trial by the criminal court constituted under the CrPC.

    Constitutionality of AFSPA

    • Attempts have been made to examine the constitutionality of the Act on the grounds that it is contravention to the:
    1. Right to Life and Personal Liberty (Article 21) and
    2. Federal structure of the Constitution since law and order is a State subject

    Recommendations to repeal AFSPA

    (1) Justice B.P. Jeevan Reddy Commission

    • The 2004 Committee headed by Justice B.P. Jeevan Reddy, the content of which has never officially been revealed by the Government, recommended that AFSPA be repealed.
    • Additionally, it recommended that appropriate provisions be inserted in the Unlawful Activities Prevention Act, 1967 (UAPA) instead.
    • It also recommended that the UAPA be modified to clearly specify the powers of the armed forces and paramilitary forces and grievance cells should be set up in each district where the armed forces are deployed.

    (2) ARC II

    • The Administrative Reforms Commission in its 5th Report on ‘Public Order’ had also recommended that AFSPA be repealed.
    • It recommended adding a new chapter to be added to the Unlawful Activities Prevention Act, 1967.
    • However, the recommendation was considered first and then rejected.

    Other issues with AFSPA

    (1) Sexual Misconduct by Armed Forces

    • The issue of violation of human rights by actions of armed forces came under the consideration of the Committee on Amendments to Criminal Law (popularly known as Justice Verma Committee) set up in 2012.
    • It observed that- in conflict zones, legal protection for women was neglected.

    (2) Autocracy

    • The reality is that there is no evidence of any action being taken against any officer of the armed forces or paramilitary forces for their excesses.

    Caution given by the Supreme Court

    A July 2016 judgment authored by Justice Madan B. Lokur in Extra Judicial Execution Victim Families Association quoted the “Ten Commandments” issued by the Chief of the Army Staff for operations in disturbed areas:

    1. Definite circumstances: The “power to cause death is relatable to maintenance of public order in a disturbed area and is to be exercised under definite circumstances”.
    2. Declaration preconditions: These preconditions include a declaration by a high-level authority that an area is “disturbed”.
    3. Due warning: The officer concerned decides to use deadly force on the opinion that it is “necessary” to maintain public order. But he has to give “due warning” first.
    4. No arbitrary action: The persons against whom the action was taken by the armed forces should have been “acting in contravention of any law or order for the time being in force in the disturbed area”.
    5. Minimal use of force: The armed forces must use only the “minimal force required for effective action against the person/persons acting in contravention of the prohibitory order.”
    6. Empathy with perpetrators: The court said that: the people you are dealing with are your own countrymen. All your conduct must be dictated by this one significant consideration.
    7. People friendliness: The court underscored how the Commandments insist that “operations must be people-friendly, using minimum force and avoiding collateral damage – restrain must be the key”.
    8. Good intelligence: It added that “good intelligence is the key to success”.
    9. Compassion: It exhorted personnel to “be compassionate, help the people and win their hearts and minds. Employ all resources under your command to improve their living conditions”.
    10. Upholding Dharma (Duty): The judgment ended with the final Commandment to “uphold Dharma and take pride in your country and the Army”.

    Conclusion

    • Despite demands by civil society groups and human rights activities, none of the recommendations have not been implemented to date.

     

     

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    ECGC to seek RBI nod for payment in forex to exporters

    ECGC Ltd., the government enterprise that provides export credit insurance, will soon approach the Reserve Bank of India for approval to deal in foreign currency for the benefit of exporters.

    What is ECGC?

    • ECGC is an acronym for Export Credit Guarantee Corporation of India Ltd.
    • It is a government owned export credit provider.
    • It is under the ownership of Ministry of Commerce and Industry and is based in Mumbai.
    • It provides export credit insurance support to Indian exporters.
    • Its topmost official is designated as Chairman and Managing Director who is a central government civil servant under ITS cadre.
    • The GoI had initially set up Export Risks Insurance Corporation (ERIC) in July 1957.
    • It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.

    Functions of ECGC

    • ECGC provides a range of credit risk insurance covers to exporters against loss in export of goods and services as well.
    • It offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.
    • It provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan and advances.

    Facilities by ECGC

    • It offers insurance protection to exporters against payment risks.
    • It provides guidance in export-related activities.
    • It makes available information on different countries with its own credit ratings.
    • It makes it easy to obtain export finance from banks/financial institutions.
    • It assists exporters in recovering bad debt.
    • It provides information on the creditworthiness of overseas buyers.

    Why need export credit insurance?

    • Payments for exports are open to risks even at the best of times.
    • The risks have assumed large proportions today due to the far-reaching political and economic changes that are sweeping the world.
    • An outbreak of war or civil war may block or delay payment for goods exported. Ex. Ukraine War.
    • Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goods or on transfer of payments for goods imported. Ex. Sri Lankan Crisis.
    • In addition, the exporters have to face commercial risks of insolvency or protracted the default of buyers.
    • Export credit insurance is designed to protect exporters from the consequences of the payment risks, both political and commercial, and to enable them to expand their overseas business without fear of loss.

     

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  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    [pib] MSME Sustainable (ZED) Certification Scheme

    The  Union Ministry for Micro, Small and Medium Enterprises has launched the MSME Sustainable (ZED) Certification Scheme.

    MSME Sustainable (ZED) Certification Scheme

    • This Scheme is an extensive drive to enable and facilitate MSMEs adopt Zero Defect Zero Effect (ZED) practices.
    • It aims motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions.
    • Through the ZED Certification, MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc.

    Components of the scheme

    • Under the Scheme, MSMEs will get subsidy as per the following structure, on the cost of ZED certification:
    1. Micro Enterprises: 80%
    2. Small Enterprises: 60%
    3. Medium Enterprises: 50%
    • There will be an additional subsidy of 10% for the MSMEs owned by Women/SC/ST Entrepreneurs OR MSMEs in NER/Himalayan/LWE/Island territories/aspirational districts.
    • In addition to above, there will be an additional subsidy of 5% for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises – Cluster Development Programme (MSE-CDP) of the Ministry.
    • Further, a limited purpose joining reward of Rs. 10,000/- will be offered to each MSME once they take the ZED Pledge.

    Back2Basics: Zero Defect Zero Effect Scheme

    • Launched in 2016 by the Ministry of MSME, the ZED scheme is an integrated and comprehensive certification system.
    • The scheme accounts for productivity, quality, pollution mitigation, energy efficiency, financial status, human resource and technological depth including design and IPR in both products and processes.
    • Its mission is to develop and implement the ‘ZED’ culture in India based on the principles of Zero Defect & Zero Effect.
    • ZED principles include:
    1. Zero Defect: Zero non-conformance or non-compliance
    2. Zero Effect: Zero wastage, liquid discharge, solid waste; zero pollution

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  • Tribes in News

    Tribes in news: Hattis of Himachal Pradesh

    The Centre is set to consider the Himachal Pradesh government’s request for inclusion of the Hatti community in the list of Scheduled Tribes in the state.

    Who are the Hattis?

    • The Hattis are a close-knit community who got their name from their tradition of selling homegrown vegetables, crops, meat and wool etc. at small markets called ‘haat’ in towns.
    • The Hatti community, whose men generally don a distinctive white headgear during ceremonies, is cut off from Sirmaur by two rivers called Giri and Tons.
    • Tons divides it from the Jaunsar Bawar area of Uttarakhand.
    • The Hattis who live in the trans-Giri area and Jaunsar Bawar in Uttarakhand were once part of the royal estate of Sirmaur until Jaunsar Bawar’s separation in 1815.
    • Due to topographical disadvantages, the Hattis living in the Kamrau, Sangrah, and Shilliai areas lag behind in education and employment.

    Societal norms of Hattis

    • The Hattis are governed by a traditional council called Khumbli, which like the khaps of Haryana, decide community matters.
    • The Khumbli’s power has remained unchallenged despite the establishment of the panchayati raj system.
    • The two clans have similar traditions, and inter-marriages are commonplace.
    • There is a fairly rigid caste system among the Hattis — the Bhat and Khash are the upper castes, while the Badhois are below them.
    • Inter-caste marriages have traditionally remained a strict no-no.

    Who are Paharis?

    • The proposal called for the inclusion of the “Paddari tribe”, “Koli” and “Gadda Brahman” communities to be included on the ST list of J&K.
    • The suggestion for the inclusion had come from the commission set up for socially and educationally backward classes in the UT.
    • The J&K delimitation commission has reserved six of the nine Assembly segments in the Pir Panjal Valley for STs.

    Back2Basics: Scheduled Tribes

    The above Article also provides for listing of scheduled tribes State/Union Territory wise and not on an all India basis.

    • The term ‘Scheduled Tribes’ first appeared in the Constitution of India.
    • Article 366 (25) defined scheduled tribes as “such tribes or tribal communities or parts of or groups within such tribes or tribal communities as are deemed under Article 342 to be Scheduled Tribes for the purposes of this constitution”.
    • Article 342 prescribes procedure to be followed in the matter of specification of scheduled tribes.

    How are STs notified?

    • As per the current procedure, each proposal for the scheduling of a new community as ST has to originate from the relevant State Government.
    • It is then sent to the Ministry of Tribal Affairs, which sends it to the Office of the Registrar General of India (RGI).
    • Once approved by the Office of the RGI, it is sent to the National Commission for Scheduled Tribes (NCST), and only after its approval is it sent to the Cabinet.

    Status of STs in India

    • The Census 2011 has revealed that there are said to be 705 ethnic groups notified as Scheduled Tribes (STs).
    • Over 10 crore Indians are notified as STs, of which 1.04 crore live in urban areas.
    • The STs constitute 8.6% of the population and 11.3% of the rural population.

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  • Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

    The post-pandemic world needs better public schools

    Context

    The pandemic has thrown a harsh light on the vulnerabilities and challenges faced by the world in education. There is an immense learning gap due to existing inequalities.

    Need for investment in learning systems

    • In India, we have to accept that unless we mobilise learning resources and institutions at the government level, the divides will continue to expand and learners will continue to fall between the cracks.
    • Systems have to be put into place to find a variety of methods to equip all learners — privileged, poor, middle-class and alternatively-abled.
    •  The challenge is about returning to school.
    • In wealthier nations, schools have always been the first to open and last to close and citizens have benefited from the public school system.
    • In India, across states, there is a sense of despair due to unemployment and lack of financial resources, which has snowballed due to the pandemic, resulting in greater inequality.
    • Sending children to school, as opposed to keeping them at home, is a huge financial investment, particularly in the private school system.
    • Parents have refrained from sending their children back to school due to a lack of funds.

    Viewing education through government school lens

    • The big shift that we as a nation have to make is viewing education through a government school lens.
    • This will only take place if states provide the opportunity for free, compulsory, neighbourhood education.
    • Radical reforms have to be implemented to restructure government schools and ensure quality.
    • The government, both at the Centre and in the states, should build good-quality primary, middle and high schools and provide facilities that the best private schools have to offer.
    • Online learning is not the way forward: We are subsumed by the myth that technology has expanded potential.
    • The concern is that online learning will create greater inequality, not only in the global South but even in the most well-resourced corners of the planet.
    • Online learning is not the way forward.
    • The UNESCO’s International Commission on the Futures of Education states in its report, “the core commitments that should always be remembered are public education and common good”.
    • It says, “This is not the time to step back and weaken these principles but rather to affirm and reinforce them.”
    • We must take the opportunity to protect and advance public education.
    • We cannot allow the government health system and government education to be opposed to one another. Their synergies must overlap

    Conclusion

    Public education is crucial to societies, communities and individual lives. It is the only thing that will enable us to live with dignity and purpose.

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  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    Tackling the inflation

    Context

    Expectations that commodity and oil prices would cool down in 2022 as the pandemic ebbed were belied by the Russia-Ukraine conflict, which exacerbated existing pressures. Fresh lockdowns in China are also extending the pandemic-induced supply-chain bottlenecks.

    Challenges for central banks

    • Systemically important central banks that viewed the consistent uptick in inflation as transitory — caused by post-pandemic supply shocks — are now finding it hard to bottle the genie.
    • Inflation in the time of weak growth: What central banks like even less is having to deal with rising inflation in times of weak growth.
    • Because the primary tool they have to fight it — the interest rate hikecan be recessionary.

    Inflation in India

    • CPI inflation averaged 6.3 per cent in the January-March 2022, above the RBI’s target range of 2-6 per cent.
    • The RBI forecasts inflation for April-June at 6.3 per cent.
    • One more quarter over the 6 per cent mark, and the central bank would owe the government an explanation.
    • Factors driving inflation: Fiscal 2021-In fiscal 2021, inflationary pressures came largely from food and, to some extent, core which excludes fuel and food.
    • Fiscal 2022- In fiscal 2022, crude prices hardened to emerge as the new driver. Core inflation firmed up further.
    • But the drop in food inflation offset this, so overall inflation was lower at 5.5 per cent compared with 6.2 per cent the previous year.

    Understanding inflation in fiscal 2023

    • What makes this fiscal worrying is, all three-fule, food and core are firmly pointing in the same direction — up.
    • Fuel inflation, in double digits for a year now, shows no signs of easing.
    • Energy prices have risen sharply across the board — from crude oil to coal and natural gas.
    • The cut in excise duties on petrol and diesel in November 2021 is insufficient to bring down fuel inflation, in the event crude prices stay above $90 per barrel this fiscal.
    • Food inflation: Food is the most volatile component and biggest mover of CPI inflation, given that it occupies 39 per cent weight in the average consumption basket.  
    • On the positive side, India looks set to enjoy a fourth successive year of normal monsoon and still has good buffer stocks of rice and wheat.
    • What is certain, though, is the rising cost of food production.
    • Prices of fertilisers, pesticides, diesel and animal feed are all surging.
    • Already pricey edible oils are set to get even costlier, with Indonesia’s recent ban on refined palm oil exports adding pressure.
    • No wonder then, food inflation is expected to rise.
    • Core inflation: Core inflation, a barometer of demand pressures, will continue to climb despite an environment of weak demand due to the persistence of supply shocks.
    • For producers, the bump-up in international prices across energy and metal commodities since the war has brought more pain.
    • But a weak and uneven demand recovery means producers had limited ability to pass on cost pressures to consumers.
    • Such pass-through has been partial, at best.
    • For most goods, CPI inflation has been much lower than the corresponding WPI last fiscal.
    • The pattern of recovery is also uneven across different segments, with contact-intensive services lagging formal manufacturing.
    • But contact-based services will catch up sooner or later, as restrictions become a thing of the past.
    • The last time we saw such broad-basing of inflationary pressures was after the Global Financial Crisis.
    • The difference this time around is consumer demand, which remains weak and will limit the extent of pass-through.

    Conclusion

    Forecasting inflation in such uncertain times is fraught with risk. The RBI has predicted ~5.7 per cent consumer inflation this fiscal, while professional forecasters see it at 5.6 per cent. The odds currently favour a higher inflation print, and a rate hike in June.

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  • Foreign Policy Watch: India-Pakistan

    In news: Balochistan Freedom Movement

    The Baloch Liberation Army (BLA), one of the most prominent militant groups operating against Pakistani, has claimed a suicidal attack on Chinese citizens in Karachi.

    Who are the BLA fighters?

    • The BLA announced itself in 2005 with a rocket attack on a paramilitary camp in Balochistan Kohlu during a visit by then President Pervez Musharraf.
    • It is a nationalist militant group that has been waging an insurgency for Baloch self-determination and a separate homeland for the Baloch people.

    Rise of Baloch nationalism

    • While the BLA’s armed insurgency is about two decades old, demands of Baloch nationalists for political autonomy and threats of secession date back to 1947.
    • The Khan of Kalat (who claimed sovereignty over the four princely states of Kalat, Lasbela, Kharan and Makran) held out for independence, and the Pakistan Army forced his accession in March 1948.
    • Between 1973 and 1977, the Zulfikar Ali Bhutto-led government sent in the Pakistan Army to crush a leftist guerilla war inspired by the liberation of Bangladesh.
    • The tribal sardars of Balochistan, who had been at the forefront of Baloch nationalism, and were co-opted by the state in the late 1970s, grew rebellious again.
    • The insurgency gathered momentum from 2006, after the Pakistan Army killed the Bugti sardar, Nawab Akbar Khan Bugti, who had been also been a chief minister and governor of the province.

    Why it is gaining momentum now?

    • The Pakistan Army’s operations against Baloch nationalists over the last two decades have seen hundreds of disappearances, and other alleged human rights violations.
    • Baloch nationalists also see the sudden influx of jihadist groups in the province as a move by the Pakistan security establishment to counter their nationalist demands.
    • In 2012, the US Congress convened a hearing on Balochistan and supported the demand for a free Baloch land.
    • In a significant shift in policy, back then in 2016, PM Modi had made a reference to the Baloch freedom struggle in his Independence Day speech.

    Why Balochistan matters?

    • Balochistan borders Afghanistan and Iran.
    • The people are mostly tribal with secular principles and are admirers of ties with India.
    • With gas, oil, copper and gold deposits, it is the most resource-rich of Pakistan’s four provinces.
    • It makes up half of Pakistan’s area, but has only 3.6% of its population.
    • Pakistan alleges that the insurgency is backed by India.
    • This is the region where a former Indian Navy officer Kulbhushan Jadhav was abducted from Iran and charged for espionage supporting Baloch activism in Pakistan.
    • Many Baloch activists had been seeking asylum and has applied for Indian citizenship. New Delhi neither confirmed nor deny the reports.

    Why did BLA target the Chinese now?

    • The BLA claimed it attacks Chinese nationals because Beijing ignored warnings not to enter deals and agreements regarding Balochistan before the province had been “liberated”.
    • Baloch people see China-Pakistan Economic Corridor (CPEC) as neo-colonist move against their sovereignty.
    • Among China’s major projects in Balochistan is the port of Gwadar, strategically located near the Strait of Hormuz – a crucial oil shipping route in the Arabian Sea.
    • The security of its nationals in Pakistan has become a major issue for Beijing, especially since it launched the CPEC.
    • Such attacks has literally stalled the work in progress of CPEC projects making it a sheer failure.

    Significance of recent events

    • It is rare that the BLA deployed female suicide bombers. Recent attack was done by a highly educated lady and mother of two.
    • This is also the first time that a non-jihadist ethno-nationalist group has deployed a woman suicide bomber in the manner of Sri Lanka’s LTTE.
    • According to security experts familiar with the Baloch insurgency, it marks a worsening security situation in Pakistan.
    • As the training camps are alleged by Pakistan to be in Afghanistan, the incident may also be a pointer to Pakistan’s loss of control over the Talibans.

     

     

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    State of (un)employment in India

    Data from the Centre for Monitoring Indian Economy (CMIE) shows that India’s labour force participation rate (LFPR) has fallen to just 40% from an already low 47% in 2016.

    What is LFPR?

    • Before understanding LFPR, we need to define the labour force itself.
    • According to the CMIE, the labour force consists of persons who are of age 15 years or older, and belong to either of the following two categories:
    1. are employed
    2. are unemployed and are willing to work and are actively looking for a job
    • There is a crucial commonality between the two categories — they both have people “demanding” jobs.
    • This demand is what LFPR refers to. While those in category 1 succeed in getting a job, those in category 2 fail to do so.
    • Thus, the LFPR essentially is the percentage of the working-age (15 years or older) population that is asking for a job; it represents the “demand” for jobs in an economy.
    • It includes those who are employed and those who are unemployed.
    • The Unemployment Rate (UER), which is routinely quoted in the news, is nothing but the number of unemployed (category 2) as a proportion of the labour force.

    What is the significance of LFPR in India?

    • Typically, it is expected that the LFPR will remain largely stable.
    • As such, any analysis of unemployment in an economy can be done just by looking at the UER.
    • But, in India, the LFPR is not only lower than in the rest of the world but also falling. This, in turn, affects the UER because LFPR is the base (the denominator) on which UER is calculated.
    • The world over, LFPR is around 60%. In India, it has been sliding over the last 10 years and has shrunk from 47% in 2016 to just 40% as of December 2021.
    • This shrinkage implies that merely looking at UER will under-report the stress of unemployment in India.
    • Recent trend suggests that not only that more than half of India’s population in the working-age group is deciding to sit out of the job market, but also that this proportion of people is increasing.

    How is it under-reported?

    • Imagine that there are just 100 people in the working-age group but only 60 ask for jobs — that is, the LFPR is 60% — and of these 60 people, 6 did not get a job. This would imply a UER of 10%.
    • Now imagine a scenario when the LFPR has fallen to 40% and, as such, only 40 people are demanding work. And of these 40, only 2 people fail to get a job.
    • The UER would have fallen to 5% and it might appear that the economy is doing better on the jobs front but the truth is starkly different.
    • The truth is that beyond the 2 who are unemployed, a total of 20 people have stopped demanding work.
    • Typically, this happens when people in the working-age get disheartened from not finding work.

    So, what is the correct way to assess India’s unemployment stress?

    • When LFPR is falling as steadily and as sharply as it has done in India’s case, it is better to track another variable: the Employment Rate (ER).
    • The ER refers to the total number of employed people as a percentage of the working-age population.
    • By using the working-age population as the base and looking at the number of people with jobs, the ER captures the fall in LFPR to better represent the stress in the labour market.

    ER trends in India

    • If one looks at the ER data (Chart 1), it becomes clear that while India’s working-age population has been increasing each year, the percentage of people with jobs has been coming down sharply.
    • Looking at the absolute numbers makes the stress even more clear.
    • In December 2021, India had 107.9 crore people in the working age group and of these, only 40.4 crore had a job (an ER of 37.4%).
    • Compare this with December 2016 when India had 95.9 crore in the working-age group and 41.2 crore with jobs (ER 43%).
    • In five years, while the total working-age population has gone up by 12 crore, the number of people with jobs has gone down by 80 lakh.

    Why is India’s LFPR so low?

    • The main reason for India’s LFPR being low is the abysmally low level of female LFPR.
    • According to CMIE data, as of December 2021, while the male LFPR was 67.4%, the female LFPR was as low as 9.4%.
    • In other words, less than one in 10 working-age women in India are even demanding work.
    • Even if one sources data from the World Bank, India’s female labour force participation rate is around 25% when the global average is 47%.

    Why do so few women demand work?

    • One reason is essentially about the working conditions — such as law and order, efficient public transportation, violence against women, societal norms etc — being far from conducive for women to seek work.
    • The other has to do with correctly measuring women’s contribution to the economy.
    • There are methodological issues in formally capturing women’s contribution to the economy since a lot of women in India are exclusively involved within their own homes.
    • Lastly, it is also a question of adequate job opportunities for women.

    How do people who leave the labour force survive?

    • Households with more than one working member often witness this phenomenon.
    • The fall in the LFPR since 2016 has been accompanied by a fall in the proportion of households where more than one person is employed.
    • The fall in LFPR has largely been the result of the additional person employed in a typical household losing a job.

     

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  • Freedom of Speech – Defamation, Sedition, etc.

    SC Ruling on Sedition Law

    The Supreme Court has fixed May 5 for final hearing of the petitions challenging the constitutionality of the sedition law and made it clear that it will not brook any delay in the form of requests for adjournment.

    What is the Sedition Law?

    • Section 124A of the Indian Penal Code lays down the punishment for sedition. The IPC was enacted in 1860, under the British Raj.
    • The then British government in India feared that religious preachers on the Indian subcontinent would wage a war against the government.
    • Particularly after the successful suppression of the Wahabi/Waliullah Movement by the British, the need was felt for such law.
    • Throughout the Raj, this section was used to suppress activists in favor of national independence, including Tilak and Mahatma Gandhi, both of whom were found guilty and imprisoned.

    What is Sedition?

    • The Section 124A defines sedition as:

    An offence committed when “any person by words, either spoken or written, or by signs, or by visible representation, or otherwise, brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards the government established by law in India”.

    • Disaffection includes disloyalty and all feelings of enmity.
    • However, comments without exciting or attempting to excite hatred, contempt or disaffection, will not constitute an offense.
    • Sedition is a non-bailable offense.
    • Punishment under Section 124A ranges from imprisonment up to three years to a life term with/without a fine.

    Sedition as a cognizable offense

    • Sedition was made a cognizable offense for the first time in history in India during the tenure of Prime Minister Indira Gandhi in 1973, that is, arrest without a warrant was now permissible.
    • In 1962 the Supreme Court of India interpreted the section to apply only if there is, say, “incitement to violence” or “overthrowing a democratically elected government through violent means”.

    Is it constitutionally valid?

    • Violative of FRs: Two high courts had found it unconstitutional after Independence, as it violated the freedom of speech and expression.
    • Reasonable restrictions: The Constitution was amended to include ‘public order’ as one of the ‘reasonable restrictions’ on which free speech could be abridged by law.
    • Kedar Nath Case: Thereafter, the Supreme Court, in Kedar Nath Singh v. State of Bihar (1962) upheld its validity.
    • Limited use: At the same time, it limited its application to acts that involve “intention or tendency to create disorder” or incitement to violence.
    • Strong criticism doesn’t amount to sedition: Thus, even strongly worded remarks, as long as they do not excite disloyalty and enmity, or incite violence, are not an offence under this section.

    Why the controversy now?

    • Frequent use: In recent times, the resort to this section is seen as disturbingly frequent.
    • Curbing dissent: Activists, cartoonists and intellectuals have been arrested under this section, drawing criticism from liberals that it is being used to suppress dissent and silence critics.
    • Misuse for propaganda: Authorities and the police who invoke this section defend the measure as a necessary step to prevent public disorder and anti-national activities.
    • Irrelevance: Many of them have also been detained under the National Security Act and UAPA.

    What is being debated about it?

    • Demand for its scrapping: Liberals and rights activists have been demanding the scrapping of Section 124A.
    • Provision is outdated: It is argued that the provision is “overbroad”, i.e., it defines the offence in wide terms threatening the liberty of citizens.
    • Various calls for its reconsideration: The Law Commission has also called for a reconsideration of the section.
    • Tyranny of the law: It has pointed that Britain abolished it more than a decade ago and raised the question of whether a provision introduced by the British to put down the freedom struggle should continue to be law in India.
    • Doctrine of severability: Some argue that a presumption of constitutionality does not apply to pre-constitutional laws as those laws have been made by foreign legislature or bodies.

    Way forward

    • India is the largest democracy in the world and the right to free speech and expression is an essential ingredient of democracy.
    • The sedition law should not be abolished as some measures are needed to check communal violence & insurgency activities like Naxals.
    • The definition of sedition should be narrowed down, to include only the issues pertaining to the territorial integrity of India as well as the sovereignty of the country.
    • Section 124A should not be misused as a tool to curb free speech.

     

    Try answering this PYQ:

    Q.With reference to Rowlatt Satyagraha, which of the following statements is/are correct?

    1. The Rowlatt Act was based on the recommendations of the ‘Sedition Committee’.
    2. In Rowlatt Satyagraha, Gandhiji tried to utilize the Home Rule League.
    3. Demonstrations against the arrival of Simon Commission coincided with Rowlatt Satyagraha.

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 1 and 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

     

    Post your answers here.

    Also read

    [Burning Issue] Should sedition law be scrapped?

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

    State Taxes on Fuels

    PM has said that fuel prices were too high in some States ruled by other parties and they were not passing on the benefits of the Centre’s excise duty cut to the people.

    Why are states reluctant?

    • The reluctance to reduce excise duty and VAT on fuel stems from the fact that it constitutes an important source of revenue for both the Union government and the states.
    • Excise duty on fuel makes up about 18.4 per cent of Centre’s gross tax revenues.
    • Petroleum and alcohol, on an average, account for 25-35 per cent of the own tax revenue of states

    Present taxation of Fuels

    What is Excise Duty?

    • Excise duty is a form of tax imposed on goods for their production, licensing and sale.
    • It is the opposite of Customs duty in sense that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside of the country.
    • At the central level, excise duty earlier used to be levied as Central Excise Duty, Additional Excise Duty, etc.
    • Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services.

    Purview of excise duty

    • The GST introduction in July 2017 subsumed many types of excise duty.
    • Today, excise duty applies only on petroleum and liquor.
    • Alcohol does not come under the purview of GST as exclusion mandated by constitutional provision.
    • States levy taxes on alcohol according to the same practice as was prevalent before the rollout of GST.
    • After GST was introduced, excise duty was replaced by central GST because excise was levied by the central government.
    • The revenue generated from CGST goes to the central government.

    Types of excise duty in India

    Before GST, there were three kinds of excise duties in India.

    (1) Basic Excise Duty

    • Basic excise duty is also known as the Central Value Added Tax (CENVAT).
    • This category of excise duty was levied on goods that were classified under the first schedule of the Central Excise Tariff Act, 1985.
    • This duty applied on all goods except salt.

    (2) Additional Excise Duty

    • Additional excise duty was levied on goods of high importance, under the Additional Excise under Additional Duties of Excise (Goods of Special Importance) Act, 1957.
    • This duty was levied on some special category of goods.

    (3) Special Excise Duty

    • This type of excise duty was levied on special goods classified under the Second Schedule to the Central Excise Tariff Act, 1985.
    • Presently the central excise duty comprises of a Basic Excise Duty, Special Additional Excise Duty and Additional Excise Duty (Road and Infrastructure Cess) on auto fuels.

    Present taxation of Fuels

    • Currently, taxes on petroleum products are levied by both the Centre and the states.
    • While the Centre levies excise duty, states levy value-added tax (VAT).
    • For instance, VAT on petroleum products is as high as 40% in Maharashtra, contributing over ₹25,000 crores annually.
    • By being able to levy VAT on these products, the state governments have control over their revenues.
    • When a national GST subsumed central taxes such as excise duty and state levies like VAT on July 1, 2017, five petroleum goods – petrol, diesel, ATF, natural gas and crude oil – were kept out of its purview.

     

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