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  • A shift in the US to autocratic trends   

    Why in the news?

    Since WWII, U.S. foreign policy framed democracies vs. dictatorships, but this binary blurs with recent domestic political trends and shifting allegiances.

    The binary between democracy and autocracy in the USA  

    Difference between Democracy and Autocracy

    • Democracy is defined as a system of government where the population, typically through elected representatives, exercises power. It emphasizes freedom, constitutional governance, and the protection of fundamental rights.
    • In contrast, autocracy is characterized by absolute power held by a single ruler, where the will of the ruler supersedes the rights and freedoms of individuals. Autocracies suppress dissent and limit political pluralism, often relying on force and coercion to maintain control.
    • Current Political Climate

        • The political landscape in the U.S. has shifted towards a more autocratic style of governance, particularly among factions within the Republican Party. This shift is marked by a growing acceptance of strongman leadership, which seeks to undermine traditional democratic norms and institutions.
        • Trump’s rhetoric and actions have often reflected a disdain for the checks and balances that are foundational to American democracy. His assertion of broad presidential powers and his attempts to consolidate authority signal a move away from democratic principles toward a more autocratic governance model.
    • Implications of the Shift

      • This trend raises concerns about the future of democracy in the U.S. Supporters of Trump and similar populist leaders often view the federal government as an adversary, promoting a narrative that pits “the people” against a corrupt establishment. 

    What are the different phases of transformation?  

    • Rise of the Administrative State: The first phase was the rise of the administrative state under Theodore Roosevelt, Woodrow Wilson, Franklin Roosevelt, Lyndon Johnson and Richard Nixon.
        • This broadened the scope of government intervention and generated a complex bureaucracy to address social problems and welfare.
    • Centralizing Executive Power: As the administrative state grew, presidents needed to bring it under their direct control. During the 1980 transition, Ronald Reagan’s team employed a large staff to centralize control over policy, budgeting, and appointments. This led to the centralized apparatus that now resides in the Executive Office of the President.
    • In 2024, embracing autocratic tendencies: The populist faction of the Republican Party, concentrated among less educated, blue-collar, white, rural, and religious populations disadvantaged by globalization, embraces a strongman vision of leadership that operates beyond democratic norms.  
      • Trump waged a campaign against norms and institutions of two-party politics, culminating in his efforts to overturn the 2020 election. The Supreme Court’s ruling granting Trump immunity from prosecution for official acts has significantly blurred the line between democracy and autocracy.

    The present new normal

    • Erosion of Democratic Norms and Institutions: Trump showed disdain for legal limitations on presidential power and waged a campaign against democratic norms and institutions. His attempts to overturn the 2020 election results despite losing to Biden exemplified this authoritarian tendency.
    • Conservatism and Nationalism: Trumpism embraced conservative values like opposition to abortion, support for gun rights, and backing law enforcement.
      • Trump reshaped U.S. foreign policy to prioritize American interests over global cooperation and multilateralism.

    Way forward: 

    • Strengthen Democratic Institutions: Need to reinforce checks and balances to prevent executive overreach, enhance judicial independence, and protect electoral integrity to ensure democratic principles are upheld.
    • Promote Civic Education and Engagement: Need to educate citizens on democratic values, the importance of pluralism, and the dangers of autocracy to foster informed and active participation in the democratic process.
  • How India needs to deal with the new Bangladesh?  

    Why in the News?

    India will require significant political and diplomatic acumen to navigate the fallout from Sheikh Hasina’s fall, which could destabilize and potentially reshape the geopolitics of the subcontinent.

    Why Hasina’s fall was not a surprise?

    • Long-standing Discontent: Widespread protests against Sheikh Hasina’s government had been brewing over issues like a controversial quota system for government jobs, indicating significant public discontent.
    • Authoritarian Drift: Hasina’s government has been accused of suppressing opposition and civil society through measures like the Digital Security Act, which has been used to arrest critics and journalists.
    • Historical Context: Since gaining independence in 1971, Bangladesh has experienced several military coups, political assassinations, and periods of military rule, including the killing of Hasina’s father, Mujibur Rahman, in 1975.

    Five Challenges Beyond 1971

    • Engagement with Opposition: Due to prevailing political uncertainity, India need to distance itself from Hasina and engage with her opponents to maintain credibility and influence in Bangladesh.
    • Managing Regional Rivalries: India needs to prepare for potential exploitation of the situation by Pakistan and China, which may seek to influence the new government against Indian interests.
    • Historical Narratives: India needs to navigate the complex historical narratives surrounding the 1971 liberation of Bangladesh, recognizing that many in Bangladesh do not share the same interpretation.
    • Economic Stability: Ensuring economic stabilization in Bangladesh will be crucial, requiring collaboration with regional partners to prevent extremism and maintain stability.
    • Recognition of Local Agency: India must acknowledge that Bangladesh has its own political dynamics and agency, which cannot be solely dictated by Indian interests or actions.

    What India must prepare for now? (Way forward)

    • Diplomatic Strategy: India needs to develop a proactive diplomatic strategy to engage with the new government in Bangladesh while avoiding perceptions of interference.
    • Security Concerns: India must be vigilant about border security and the potential resurgence of anti-India activities, especially if the new government leans towards Pakistan or China.
    • Economic Engagement: Strengthening economic ties and leveraging people-to-people connections will be essential for maintaining a positive relationship with Bangladesh, regardless of political changes.
    • Learning from Past Experiences: India should draw lessons from its past experiences with political transitions in the region, such as in Afghanistan, to navigate the current situation effectively.
    • Collaborative Approach: Working with international partners, including the US and Gulf nations, will be important to address the challenges posed by the political shift in Bangladesh and to ensure regional stability.

    Mains PYQ: 

    Q Critically examine the compulsions which prompted India to play a decisive role in the emergence of Bangladesh. (2013)

  • On UP’s stringent Anti-conversion law     

    Why in the news?

    The UP Assembly’s amendments to its regressive ‘Anti-conversion’ law appear aimed at facilitating misuse, with over 400 cases registered since the original 2021 law.

    What is UP’s ‘Anti-conversion’ law?

    • Uttar Pradesh’s “Anti-conversion” law, officially known as the Uttar Pradesh Prohibition of Unlawful Conversion of Religion Act, 2021, prohibits religious conversion through unlawful means such as misrepresentation, force, undue influence, coercion, allurement, or fraudulent means.

    Why was the Original 2021 Anti-Conversion Law Amended by UP?

    • Increased Stringency: The amendments aim to make the original law more stringent, responding to claims of rising cases of forced conversions and the alleged involvement of foreign and anti-national elements in demographic changes.
    • Response to Public Discontent: The government cited the need to enhance penalties and legal measures to prevent unlawful conversions, particularly concerning vulnerable groups such as minors and women.
    • Legitimacy of Complaints: The amendment allows third parties to file complaints about alleged unlawful conversions, expanding the scope of the law and potentially increasing its application against inter-faith marriages.

    What are Its concerning features?

    • Harsh Penalties: The amended law introduces severe penalties, including imprisonment of up to 20 years or life for targeting minors, women, or certain communities through coercion or force.
    • Bail Conditions: The law imposes stringent bail conditions that make it difficult for accused individuals to secure bail, requiring public prosecutor consent and a presumption of guilt.
    • Third-Party Complaints: The provision allowing anyone to file complaints against alleged conversions opens the door for misuse by communal organizations and individuals with vested interests, potentially targeting inter-faith couples.

    What does it state about bail conditions and ‘foreign funding’?

    • Bail conditions: The amended law states that an accused individual cannot be granted bail unless the public prosecutor has the opportunity to oppose it, and there is reason to believe the accused is not guilty and unlikely to repeat the offence.
    • Foreign funding: The law prescribes stiff penalties for receiving funds from foreign organizations for unlawful conversion, with fines and imprisonment aimed at deterring financial support for conversion activities.

    How is it different from other states?

    • Comparison with Other States: While several states like Odisha and Madhya Pradesh have anti-conversion laws, Uttar Pradesh’s amendments are notably harsher, including provisions for life imprisonment, which are not present in other states.
    • Bail and Proof Burden: Other states may not impose such severe bail conditions or the reverse burden of proof required in Uttar Pradesh, making it easier for accused individuals in those states to secure bail.
    • Scope of Complaints: In many states, only aggrieved individuals or their close relatives can file complaints, whereas Uttar Pradesh’s amendments allow for broader third-party complaints, increasing the potential for misuse.

    Way forward:

    • Promote Awareness of Rights: Implement comprehensive public awareness campaigns to educate citizens about their legal rights concerning religious conversion and inter-faith marriages.
    • Legal and Constitutional Review: Stakeholders, including civil society organizations and legal experts, should actively pursue legal challenges against the amended law in the Supreme Court of India.
  • Counting the ‘poor’ having nutritional deficiency       

    Why in the news?

    The National Sample Survey Office has released the Household Consumption Expenditure Survey (HCES) report for 2022-23, along with public access to unit-level data on household expenditures.

    What does the recent NSSO Report tell us?

    • The report utilizes various definitions of poverty established by past committees, with the poverty line (PL) being anchored to calorie norms of 2,400 kcal for rural and 2,100 kcal for urban areas as per the Lakdawala Committee. The Rangarajan Committee’s approach considers broader normative levels, including non-food expenses.
    • The average per capita calorie requirement (PCCR) is estimated at 2,172 kcal for rural and 2,135 kcal for urban populations. The report highlights that the average per capita calorie intake (PCCI) for the poorest segments falls significantly below these requirements, indicating nutritional deficiencies.
    • The total monthly per capita consumption expenditure (MPCE) thresholds are set at ₹2,197 for rural and ₹3,077 for urban areas, with proportions of the population identified as ‘poor’ being 17.1% in rural and 14% in urban contexts. If non-food expenditures for the poorest 10% are considered, these thresholds rise, increasing the proportion of the deprived.

    Approach for measurement is the Issue:

    • Defining Poverty: The report defines the poor based on MPCE, which is linked to the ability to purchase essential food and non-food items.
      • The reliance on MPCE does not adequately address nutritional needs. While the poverty line is linked to the ability to purchase food and non-food items.
    • Caloric Requirement Calculation: The PCCR is derived from the ICMR-National Institute of Nutrition’s latest recommendations, weighted by the population distribution across age-sex-activity categories.
      • The ICMR-National Institute of Nutrition’s (ICMR-NIN) recommendations for caloric requirements in India are derived from the Recommended Dietary Allowances (RDA) for Indians.
      • The RDA does not adequately account for regional and cultural differences in dietary habits and food availability.
    • Fractile Class Analysis: Households are categorized into 20 fractile classes based on MPCE, allowing for the calculation of average PCCI and MPCE for each class.
      • Each fractile class represents 5% of the population, allowing for a detailed understanding of expenditure distribution and nutritional intake variations within the population
      • MPCE reflects consumption patterns but does not capture the full spectrum of economic well-being or deprivation.
    • State-Specific Adjustments: The all-India thresholds are adjusted for regional price differences to derive state-specific MPCE thresholds.
      • The methodology for deriving state-specific MPCE thresholds relies on regional price indexes, which can vary significantly in their construction and accuracy.

    Recommendations for Improving Nutritional Levels (Way Forward) 

    • Nutritional Schemes: Govt. needs to develop and expand schemes specifically aimed at improving the nutritional intake of the poorest households.
    • Awareness and Education: Govt. should increase awareness about nutrition and healthy eating practices among low-income households.
    • Subsidized Food Programs: Need to enhance access to subsidised food items to ensure that households can meet their caloric and nutritional needs.
    • Monitoring and evaluation: Govt. should establish robust mechanisms to monitor the effectiveness of nutritional interventions and adjust strategies as necessary.

    Conclusion: ​​The NSSO HCES 2022-23 report reveals significant nutritional deficiencies among the poorest. To align with SDG goals, expanding targeted nutritional schemes, subsidized food programs, and robust monitoring is essential.

    Mains PYQ: 

    Q How far do you agree with the view that the focus on the lack of availability of food as the main cause of hunger takes the attention away from ineffective human development policies in India? (2013)

  • RBI Report on Currency and Finance (RCF), 2023-24

    Why in the News?

    The Reserve Bank of India (RBI) released the “Report on Currency and Finance (RCF)” for the year 2023-24 with the theme – India’s Digital Revolution.

    What is the Report on Currency and Finance (RCF)? 

    • The RCF is an annual publication by the Reserve Bank of India (RBI).
    • It covers various aspects of the Indian economy and financial system, providing insights and analysis on current economic conditions, financial stability, and policy issues.
    • The theme for the 2023-24 report is “India’s Digital Revolution.”
    • Focus: It focuses on the transformative impact of digitalization across various sectors in India, especially in the financial sector.
    • Highlights: The report highlights how digital technologies are reshaping economic growth, financial inclusion, public infrastructure, and the regulatory landscape. It also addresses the opportunities and challenges associated with digitalization.

    Key Highlights of the RCF:

    [1] Digital Revolution

    • The RCF emphasizes India’s leading role in the global digital revolution.
    • With robust digital public infrastructure (DPI), evolving institutional frameworks, and a tech-savvy population, India has emerged as a frontrunner in this arena.
    • Key initiatives such as Aadhaar, the world’s largest biometric-based identification system, and the UPI, a real-time, low-cost transaction platform, have revolutionized service delivery and financial inclusion.

    [2] Digitalization in Finance

    • The above-discussed initiatives have made retail payments faster and more convenient, while the RBI’s pilot runs of the E-Rupee position India at the forefront of digital currency initiatives.
    • The digital lending ecosystem is also vibrant, with the Open Credit Enablement Network and the Open Network for Digital Commerce (ONDC) driving growth.

    [3] Remittance Inflows in India

    • India continues to lead as the highest remittance recipient globally, with US$ 115.3 billion in 2023, accounting for 13.5% of the world’s total remittances.
    • The RCF highlights that more than half of India’s inward remittances in 2021 came from the Gulf countries, with North America contributing 22%.
    • The remittance-to-GDP ratio for India has risen from 2.8% in 2000 to 3.2% in 2023, surpassing the gross FDI inflows to GDP ratio of 1.9% in 2023.
    • Looking forward, India is poised to remain a leading supplier of labor, with its working-age population expected to rise until 2048, potentially propelling remittances to around $160 billion by 2029.

    [4] Smartphones Penetration

    • India’s mobile penetration has seen remarkable growth, with internet penetration reaching 55% in 2023 and an increase of 199 million internet users over the past three years.
    • The cost per gigabyte of data in India is the lowest globally, at an average of Rs. 13.32 per GB.
    • India has one of the highest mobile data consumption rates worldwide, with an average per-user per-month consumption of 24.1 GB in 2023.
    • The number of smartphone users in India was about 750 million in 2023, expected to reach 1 billion by 2026. 
    • The RCF projects that India will become the second-largest smartphone manufacturer within the next 5 years.

    PYQ:

    [2017] Which of the following is the most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?

    (a) Mobile wallets will not be necessary for online payments.
    (b) Digital currency will replace physical currency in about two decades.
    (c) FDI inflows will drastically increase.
    (d) Direct transfer of subsidies to poor people will become very effective.

  • The Physics of Pressure

    Why in the News?

    • Pressure is an indispensable part of life, often unnoticed but always present.
      • It’s the interaction of microscopic particles with the macroscopic world, creating phenomena like air pressure.

    What is Pressure?

    • Pressure is defined as the force exerted per unit area on a surface. 
    • For example, an apple weighing 100 g exerts a force of about 1 newton (N) on your hand and a pressure of approximately 500 Pa.
    • Atmospheric pressure is around 100,000 Pa, equivalent to the pressure exerted by about 200 apples on your hand.

    Everyday Examples of Pressure

    (1) Measuring Blood Pressure:

    • Blood pressure, measured in mm of mercury (mmHg), is an example of pressure in a different context.
    • Blood pressure is measured using a sphygmomanometer, which balances the pressure in an arm cuff with the pressure of the blood in the arteries.
    • The readings, such as 120/80 mmHg, represent the pressure during heartbeats (systolic) and between beats (diastolic).
    • Mercury, being 15 times heavier than water, allows for portable blood-pressure machines.

    (2) Pressure Cookers:

    • The whistle of a pressure cooker is a direct result of the increased pressure cooking the food efficiently.
    • The pressure cooker exemplifies the practical application of pressure in cooking, making it an indispensable kitchen tool.

    PYQ:

    [2021] In a pressure cooker, the temperature at which the food is cooked depends mainly upon which of the following?​

    1. Area of the hole in the lid​

    2. Temperature of the flame​

    3. Weight of the lid​

    Select the correct answer using the code given below.​

    (a) 1 and 2 only ​

    (b) 2 and 3 only​

    (c) 1 and 3 only ​

    (d) 1, 2 and 3​

  • GST on Health and Life Insurance Premiums

    Why in the News?

    • Insurance premiums on health and life policies have increased this year, and the 18% Goods and Services Tax (GST) has made insurance less affordable for many people.
      • Medical inflation, estimated at 14% towards the end of last year, along with increased premiums, has made buying medical insurance difficult for many.

    What is the GST on Health and Life Insurance Premiums?

    • GST replaced all indirect taxes like service tax and cess from July 1, 2017.
    • Currently, GST on health and life insurance policies is fixed at 18%.
    • According to the formula, the Centre collects 9% GST with a matching collection by states.
      • Before GST, life insurance premiums were subject to 15% service taxes, including Basic Service Tax, Swachh Bharat cess, and Krishi Kalyan cess.

    Rational behind the Tax

    • GST Council Recommendations:
      • GST rates and exemptions on all services, including insurance, are prescribed on the recommendations of the GST Council, which includes the Union Finance Minister and ministers nominated by state governments.
      • Insurance is considered a service, and policyholders pay tax on their premiums, generating significant revenue for the government.
    • Tax Deductions:
      • Insurance policies allow certain deductions while computing income tax under Sections 80C and 80D of the Income Tax Act, 1961. Customers can avail deductions on the premium, including the GST applicable.

    Arguments for Withdrawing the GST on Premiums

    • High Premium Increases:
      • Significant increases in premiums on health insurance policies this year have been observed, with some public sector insurers hiking premiums by 50%.
      • The renewal rate of policies is declining due to frequent premium hikes and medical inflation.
    • Comparative GST Rates:
      • The Confederation of General Insurance Agents’ Associations of India points out that GST on insurance in India is the highest in the world.
      • The high GST rate is seen as a deterrent to insurance penetration, which conflicts with the goal of “Insurance for All by 2047”.
    • Recommendations for Rationalisation:
      • The Standing Committee on Finance recommended rationalising the GST rate on insurance products to make them more affordable.
      • Suggestions include reducing GST rates for health insurance, especially for senior citizens, micro-insurance policies, and term policies.

    Insurance Penetration in India:

    • According to a Swiss Re Sigma report, insurance penetration in India’s life insurance sector reduced from 3.2% in 2021-22 to 3% in 2022-23, while the non-life insurance sector remained stagnant at 1%.
    • Overall insurance penetration reduced to 4% in 2022-23 from 4.2% in 2021-22.

     

    PYQ:

    [2018] Consider the following items:

    1. Cereal grains hulled

    2. Chicken eggs cooked

    3. Fish processed and canned

    4. Newspapers containing advertising material

    Which of the above items is/are exempted under GST (Goods and Services Tax)?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1, 2 and 4 only

    (d) 1, 2, 3 and 4

  • Anti-Defection Law: Features, limitations and reforms

    Why in the News?

    • Numerous examples in recent time exist in the history of Parliament and State Assemblies where MPs or MLAs have defected from their party.
      • These activities often led to the frequent falling of governments.

    What is Anti-Defection Law?

    • The 52nd Constitutional Amendment introduced the anti-defection law through the Tenth Schedule in 1985.
    • It aimed at tackling political defections destabilizing governments, especially after the 1967 general elections.
    • According to this Schedule, a member of the State Legislature or the House of Parliament who voluntarily resigns from their political party or abstains from voting in the House contrary to the party’s instruction may be removed from the House.
    • This voting instruction is issued by the party whip, a member of the parliamentary party nominated by the political party in the House.

    Process of Disqualification under Anti-Defection Law

    • Petition:
      • Any member of the House can initiate the process by filing a petition/complaint with the Speaker (Lok Sabha) or Chairman (Rajya Sabha) alleging defection by another member.
      • The Presiding Officer CANNOT initiate disqualification proceedings suo moto and can only act upon a formal complaint.
    • Deciding Authority:
      • The Speaker of Lok Sabha, the Chairman of Rajya Sabha, or the State Legislative Assembly decides disqualification petitions under the anti-defection law.
    • Timeframe:
      • The law does not specify a strict timeline for the decision, which has led to criticism due to potential delays.
    • Judicial Review:
      • The decision can be challenged in courts, ensuring a system of checks and balances.
      • The landmark judgment in Kihoto Hollohan vs. Zachillhu and Others (1992) upheld the constitutionality of the anti-defection law and affirmed that decisions regarding disqualification are subject to judicial review.
    • Exceptions:
      • No disqualification if 1/3rd members of the legislature party split to form a separate group (provision DELETED by the 91st Amendment in 2003).
      • Mergers of political parties are allowed when 2/3rd of the members of a legislative party agree to merge with another party.

    Three-Test Formula of the Supreme Court:

    • The Supreme Court in Sadiq Ali versus Election Commission of India (1971) laid down the three-test formula for recognizing the original political party:
    1. Test of Aims and Objectives of the party.
    2. Test of Party Constitution, which reflects inner-party democracy.
    3. Test of Majority in the legislative and organizational wings.

    Limitations of the Anti-Defection Law

    • Dictatorship of Party: The law has been criticized for undermining democratic principles by restricting legislators’ freedom of speech and making them more accountable to party leaders than their constituents.
    • Limited Political Choice: The law discriminates against independent members, disqualifying them immediately if they join a political party, while nominated members have a six-month grace period.
    • Partial Law: The law needs a more precise timeline for resolving defection cases. It allows large-group defections, fostering opportunistic mergers and “horse-trading”, destabilizing the political system.
    • Promotes Defection: It fails to address root causes like intra-party democracy, corruption, and electoral malpractices.

    Recommendations on Reforming the Law

    • Dinesh Goswami Committee (1990):
      • Disqualification should be limited to cases of voluntarily giving up membership or voting/abstention contrary to the party direction only in specific motions.
      • Decision on disqualification should be made by the President or Governor based on the advice of the Election Commission.
    • Law Commission of India (2015):
      • Proposed shifting the power to decide disqualification petitions from the Presiding Officer to the President or Governor based on the advice of the Election Commission.
    • Supreme Court in K. M. Singh v. Speaker of Manipur (2020):
      • Recommended transferring the Speaker’s decision-making authority over disqualification petitions to an independent tribunal presided over by judges.
    • Committee Led by Rahul Narwekar:
      • Announced by Lok Sabha Speaker Om Birla to review the nation’s anti-defection law.

    PYQ:

    [2022] With reference to anti-defection law in India, consider the following statements:

    1. The law specifies that a nominated legislator cannot join any political party within six months of being appointed to the House.
    2. The law does not provide any time-frame within which the presiding officer has to decide a defection case.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    [2013] The role of individual MPs (Members of Parliament) has diminished over the years and as a result healthy constructive debates on policy issues are not usually witnessed. How far can this be attributed to the anti-defection law, which was legislated but with a different intention?

  • The Waqf Board Amendment Bill 2024

    Why in the News?

    The government has introduced the Waqf Act Amendment Bill 2024, in order to improve administration and management of the Waqf properties.

    Aim: To address existing issues in the management and administration of Waqf properties, ensuring better transparency and efficiency.

    • It also seeks to improve the legal framework governing Waqf boards and their operations across India.

    Background:

    • The Waqf Board Amendment Bill 2024 proposes changes to the Waqf Act of 1995.
    • The Waqf Board Act, initially enacted in 1995, is a legal framework governing the administration of Waqf properties in India.
    • Waqf refers to the endowment of property for religious or charitable purposes, and the act outlines the structure, functions, and powers of Waqf boards responsible for managing these properties.
    • The Central Waqf Council is a statutory body that advises and oversees the functioning of state-level Waqf Boards in India, established under the Waqf Act.
    • Wakf board’s income is exempt from Income Tax but revenue generated from leasing of properties can be taxed under the service tax and GST laws.

     Features of the Proposed Bill:

    • Waqf Board will mandatorily have two Non-Muslim members.
    • District magistrates may be involved in overseeing waqf properties to ensure proper management. The survey is to be carried out by the district collector, not by Waqf.
    • Properties are to be registered through a Centralized Portal for better scrutiny. Properties already claimed by boards will undergo new verification processes to resolve disputes and prevent misuse.
    • Waqf will lose the right to decide whether any property is a Waqf Asset or not.

    Present Composition of Waqf Board

    Chairperson Leads the Board
    State government nominees Representatives appointed by the state. (The Waqf Board operates under the supervision of the state government as per the provision of the Wakf Act 1995).
    Legislators and parliamentarians State representatives from the Muslim community
    State Bar Council members Muslim Legal experts providing guidance
    Mutawalis Managers of waqf with an annual income of Rs 1 lakh and above
    Islamic scholars Religious experts contributing to decision-making

     

    Significance of the Waqf Board Amendment Bill 2024:

    The bill seeks to bring about significant administrative reforms and ensure more inclusive and efficient management of Waqf assets. Here are some of the significances of the Waqf Board Amendment Bill 2024:

    • Enhanced Transparency: The bill includes provisions to digitize records and create a centralized database. This will make it easier to track and manage Waqf properties, reducing the potential for fraud and mismanagement.
    • Improved Governance: Administrative reforms proposed in the bill by the government will lead to more professional and efficient management of Waqf properties. This could result in better utilization of these resources for charitable and religious purposes​.
    • Protection of Waqf Properties: The bill aims to protect Waqf properties by regulating leasing and preventing encroachments. Unauthorized use and exploitation of these properties will be prevented, ensuring they are used for their intended religious and charitable purposes.
    • Inclusion and Representation: Including Muslim women and non-Muslims in Waqf Boards is a step toward more inclusive governance, ensuring diverse perspectives in decision-making.
    • Efficient Dispute Resolution: The new dispute resolution mechanism will help in resolving conflicts related to Waqf properties more effectively, reducing the burden on regular courts and ensuring quicker justice​.

     

  • [6th August 2024] The Hindu Op-ed: The social benefits of stock market speculation

    [6th August 2024] The Hindu Op-ed: The social benefits of stock market speculation

    PYQ Relevance:

    Mains:

    Q1 Comment on the important changes introduced in respect of the Long-term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019. (UPSC IAS/2018) 

    Q2 Distinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets. (UPSC IAS/2021) 

    Prelims: 

    Under which of the following circumstances may ‘capital gains’ arise? (2012)
    1. When there is an increase in the sales of a product 
    2. When there is a natural increase in the value of the property owned 
    3. When you purchase a painting and there is a growth in its value due to an increase in its popularity 
    Select the correct answer using the codes given below: 
    (a) 1 only 
    (b) 2 and 3 only 
    (c) 2 only 
    (d) 1, 2 and 3

    Note4Students: 

    Prelims: Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG);

    Mains: Impact of gambling instincts on the stock market;

    Mentor comments: In India, capital gains are classified into two categories based on the holding period of assets. Short-Term Capital Gains (STCG) apply to assets held for 12 months or less, taxed at a rate of 15% for listed equity shares. In contrast, Long-Term Capital Gains (LTCG) are applicable when assets are held for more than 12 months, taxed at 10% for gains exceeding ₹1 lakh, with no indexation benefits. This framework encourages long-term investment while imposing higher tax rates on short-term trading activities.

    Let’s learn!

    __

    Why in the News? 

    The Indian government has increased taxes on both short-term and long-term capital gains from stock market investments in its latest Budget, along with raising the securities transaction tax on derivatives trading.

    How capital gains occur

    Definition of Capital Gains: Capital gains are profits earned from the sale of an asset that has increased in value over the holding period. This occurs when the selling price exceeds the original purchase price.
    • Market Dynamics: In a perfect market where future cash flows are accurately forecasted, capital gains would not exist, as assets would be bought and sold at their fair value. However, in reality, uncertainty leads to mispricing, allowing investors to buy undervalued assets and realize gains when their true value is recognized.
    • Investor Behavior: Investors who allocate capital efficiently into undervalued businesses can earn capital gains when others recognize the fair value of those businesses. Conversely, those who misallocate capital into overvalued assets may incur capital losses.
    • Economic Implications: Efficient capital allocation is crucial for economic prosperity. Misallocation, such as investing in sectors with low demand (e.g., cruise ships during a pandemic), can lead to overall economic inefficiency and resource wastage.
    • Taxation and Incentives: A uniform tax on capital gains may help mitigate resource misallocation, but it can also impact private investment incentives and overall economic growth.  

    Impact of gambling instincts on the stock market

    • Increased Retail Participation: The Economic Survey 2023-24 highlights that the surge in retail investor participation in Futures and Options (F&O) trading is largely driven by inherent “gambling instincts.” 
      • This is evidenced by the rapid growth in trading volumes, with retail traders’ share in derivatives trading rising from 2% in 2018 to 41% in 2024.
    • Potential for High Returns: Derivatives trading offers the allure of outsized gains, which appeals to investors seeking quick profits.  
    • High Risk of Losses: Despite the appeal of quick profits, the reality is stark; a study by the Securities and Exchange Board of India (SEBI) found that 89% of individual traders in the equity F&O segment suffered losses, with average losses of ₹1.1 lakh in FY22.  

    Gambling instincts are worse for derivatives

    • Complexity and Misunderstanding: Derivatives are often misunderstood due to their complexity. This lack of understanding leads to a negative perception because many do not grasp their practical benefits and risk management functions.
    • Speculative Nature: The speculative aspect of derivatives trading can resemble gambling, especially when neither party intends to buy or sell the underlying asset. This speculative behaviour is seen as risky and irresponsible, contributing to the negative reputation of derivatives.
    • Risk Transfer: Derivatives allow for the transfer of risk from one group of investors to another. While this risk management is beneficial, the perception that some investors profit from others’ risk aversion can be seen as exploitative or opportunistic.
    • Market Impact: Just as with active trading in the cash market, speculative trading in derivatives can be socially beneficial by providing liquidity and risk management tools. However, the public often overlooks these benefits and focuses on the perceived destabilizing effects and the potential for large, rapid losses, which can harm individual investors and financial markets.

    Way forward: 

    • Investor Education: Need to implement comprehensive educational programs for investors to improve their understanding of derivatives and capital markets.  
    • Transparency in Trading: Need to increase transparency in derivatives markets by requiring more detailed disclosures about trading strategies, potential risks, and the impact of speculative trades.  
  • Why was a Customs Duty hike imposed for Lab Chemicals?   

    Why in the News?

    The Finance Ministry has reversed the proposed post-Budget customs duty hike on imported laboratory chemicals following an outcry from scientists.

    What are the different kinds of chemicals which are imported into the country?  

    • Inorganic Chemicals: This category includes substances like ammonia, phosphoric acid, and sulfuric acid, which are essential for various industrial applications.
    • Organic Chemicals: Key imports in this category are methanol, acetic acid, and phenol, which are used in the production of plastics, solvents, and pharmaceuticals.
    • Petrochemicals: Significant imports include polyethene, polypropylene, and styrene, which are crucial for manufacturing plastics and synthetic materials.
    • Speciality Chemicals: Chemicals such as ethyl vinyl acetate and maleic anhydride are imported for specific applications in industries like adhesives and coatings.
    • Agrochemicals: This includes various pesticides and herbicides, which are vital for agricultural productivity and crop protection.

    How important are these chemicals for scientific research?    

    • Foundation for Experimental Work: Laboratory chemicals are essential for conducting experiments in various scientific fields, enabling researchers to test hypotheses and validate results.
    • Facilitate Innovation: These chemicals allow for the development of new products and technologies, driving advancements in industries such as pharmaceuticals, biotechnology, and materials science.
    • Support Medical Diagnostics: Laboratory chemicals play a crucial role in medical testing and diagnostics, aiding in disease detection and treatment monitoring, which is vital for public health.

    What was the issue?

    • Steep Duty Increase: The hike in customs duty on laboratory chemicals alarmed the scientific community, with prices of essential chemicals projected to rise dramatically, such as a batch that typically costs ₹1,00,000 now estimated at ₹2,50,000.
    • Impact on Research: Researchers expressed concerns that the increased costs would hinder scientific research and experimentation, as many essential chemicals are imported and the hike could disrupt ongoing projects.

    Is Ethanol also imported into the country?

    • Import Volume: India imported approximately 635 million liters of ethanol in 2022, primarily for use as fuel and in industrial applications.
    • Types of Ethanol: There are two main types of ethanol relevant to India:
      • Denatured Ethanol: This type is mixed with additives to make it unfit for consumption and is primarily used in laboratories and industrial applications. India has reduced the import tariff on denatured ethanol to encourage its use in manufacturing.
      • Undenatured Ethanol: This type incurs a higher import tariff of 150% and is generally used for beverage production.
    • Domestic Production Challenges: Although India has a significant capacity for ethanol production, it often faces challenges such as insufficient molasses supply. The government has set ambitious goals for ethanol blending in gasoline, aiming for a 20% blend by 2025.

    How was the issue resolved?

    • The Finance Ministry clarified that all imported laboratory chemicals, except undenatured ethyl alcohol, will be taxed at the original 10% customs duty rate instead of the proposed 150% hike.
    • The customs department had initially hiked the duty to 150% to curb the import of undenatured ethyl alcohol that was being mis-declared as laboratory chemicals to avoid the higher 150% duty on undenatured ethanol.

    Way forward: 

    • Strengthen Local Production of Niche Chemicals: Need to invest in domestic manufacturing capabilities for niche and specialty chemicals to reduce dependency on imports, enhance self-sufficiency, and lower costs for research institutions.
    • Facilitate Smooth Import Processes: Govt. should streamline import regulations for essential laboratory chemicals, ensuring clear guidelines and minimal delays, while maintaining necessary checks to prevent misclassification and misuse.
  • Powering India’s future  

    Why in the News?

    In her seventh consecutive Budget address, the Finance Minister unveiled initiatives demonstrating India’s dedication to advancing its clean energy transition.

    Recent Observations

    • In a seventh consecutive Budget speech, the Finance Minister announced measures indicating India’s commitment to its clean energy transition, including developing policies on pumped hydro storage, energy transition pathways to support nuclear energy, and energy efficiency.
    • The memories of this summer’s record-breaking heatwaves, which drove up power demand, reflect both a growing economy and a warming climate.
    • India has achieved 3 key milestones in the last decade: 
      • Near-universal electrification through the Saubhagya scheme;
      • Five-fold increase in installed renewable energy capacity making India the fourth-largest country globally, and
      • 40% drop in aggregate losses of power distribution companies.
    • India’s annual electricity demand has been growing by 7-9% every year since the COVID-19 pandemic, with peak demand rising even faster. Climate change-induced weather extremes further exacerbate these challenges.
    • In 2023 alone, China added 300 GW of solar and wind capacity, while the European Union added 73 GW. As of March, India’s cumulative renewable capacity stood at 144 GW, with another 128 GW in the pipeline

    Investing in a cleaner, flexible, and resilient power grid will help our economy grow sustainably and create jobs in the clean energy sectors

    • Infrastructure Development: The government has allocated significant resources for infrastructure development, recognizing that a robust energy grid is crucial for economic growth.
    • Renewable Energy Capacity Goals: India aims to achieve 500 GW of renewable energy capacity by 2030. This goal is part of a broader strategy to increase the share of renewables in the energy mix, which currently stands at only 13%.
    • Job Creation: Investments in clean energy infrastructure are expected to create numerous jobs.
    • Diverse Clean Energy Resources: The Budget encourages the faster deployment of various clean energy resources, including solar and wind, to meet rising energy demands.
    • Energy Storage Solutions: The emphasis on developing pumped energy storage systems and battery storage solutions is crucial for addressing the intermittency of renewable energy sources, enhancing grid flexibility and reliability.
    • Taxonomy for Climate Finance: The introduction of a taxonomy to identify green activities aims to attract climate finance, facilitating investments in clean energy projects and supporting the transition to a sustainable energy economy.

    Way forward:

    • Accelerate Renewable Energy Deployment: Need to expedite the deployment of solar, wind, and other renewable energy projects to meet the 500 GW target by 2030.
    • Enhance Energy Storage and Grid Resilience: Need to develop robust energy storage solutions, such as pumped hydro and battery storage, to address renewable energy intermittency.

    Mains PYQ:

    Q Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (2022)

  • The issue of institutional violence, addressing it   

    Why in the News?

    India’s election had 642 million voters, mostly women, but few candidates focused on women’s safety, failing to address the pervasive institutional violence that millions of survivors endure daily.

    Gender-based Violence: Prolonged and Institutional 

    • Judicial and Police Challenges: A significant barrier to justice is the perception among police officers that complaints of gender-based violence are often baseless as per the report published in 2019 by J-PAL, a global policy think tank.
      • Survivors frequently encounter a judicial process that is lengthy and traumatizing, which perpetuates a cycle of violence and silence.
    • Silence Among Survivors: Many women endure violence in silence due to societal stigma and fear of further victimization. 
      • National Crime Records Bureau reported 405,861 cases of crimes against women in 2021, including 32,033 cases of rape. However, these figures are believed to represent only a fraction of the actual incidents due to underreporting driven by societal stigma and fear of retaliation

    Problems in Rural India

    • Caste and Gender Dynamics: In rural areas, the dominance of male and upper-caste individuals in local governance (panchayats) creates additional barriers for women seeking justice.
      • The socio-cultural norms often discourage women from reporting violence, as divorce and legal recourse are rarely options available to them.
    • Access to Justice: The backlog of court cases (estimated at 40 million) disproportionately affects survivors from marginalized communities, making it even more difficult for them to seek redress.

    Strong laws: 

    • The Dowry Prohibition Act 1961: Made giving and receiving dowry a crime
    • The Criminal Law (Amendment) Act 2013: Introduced new offences like stalking, voyeurism, and acid attacks
    • The Protection of Women from Domestic Violence Act 2005: Defines domestic violence and provides legal recourse for survivors.

    Issue of Weak Implementation of Law: 

    • Ineffective Enforcement: Despite having strong laws, the enforcement is often inadequate. For example, there are approximately 40 million pending court cases in India, leading to significant delays in justice.
    • Corruption and Indifference: Corruption within law enforcement and the judiciary hampers the implementation of laws. Police officials may exhibit insensitivity towards marginalized communities, leading to a lack of trust in the system.
    • Administrative Fragmentation: The structure of local governance, particularly through panchayats, is often disempowered and fragmented. This limits their capacity to address local issues effectively, as they lack the necessary funds and authority to implement programs that meet community needs.
    • Lack of Coordination: Multiple departmental organizations operate separately, leading to a lack of coordinated action.
      • For instance, local officials may be unable to address pressing community issues due to rigid departmental mandates that do not align with the actual needs of the population.
    • Inadequate Resources and Training: Many implementing organizations suffer from inadequate staffing and lack of expertise.
      • For example, while there may be a sufficient number of government personnel, they often lack the necessary training and resources to execute their duties effectively.
    • Cultural and Societal Barriers: Societal attitudes and stigma surrounding issues like gender-based violence can lead to underreporting and a reluctance to seek help.

    Way forward: 

    • Enhance Law Enforcement Training: Need to implement comprehensive training programs for police and judicial personnel focused on gender sensitivity, trauma-informed responses, and the legal rights of survivors.
    • Empower Local Communities: Engage community leaders and organizations to create support networks for survivors of gender-based violence. This can include establishing helplines, counseling services, and safe spaces for women to seek help without fear of stigma or retaliation.

    Mains PYQ:

    Q Women empowerment in India needs gender budgeting. What are the requirements and status of gender budgeting in the Indian context? (2016)

  • On doorstep delivery of alcohol       

    Why in the News?

    Delhi, Karnataka, Haryana, Punjab, Tamil Nadu, Goa, and Kerala are considering or have considered allowing doorstep delivery of alcohol through platforms such as Swiggy, BigBasket, and Zomato.

    Arguments in favour of Online Delivery of Alcohol:

    • Revenue Generation: Excise taxes on alcohol sales can help generate significant revenue for Central and State governments.
    • Reduce Drunk-Driving Incidents: Doorstep delivery can potentially reduce drunk-driving incidents and prevent road traffic crashes and injuries.
    • Access and Safety for Women:  Doorstep delivery may reduce on-premise violence against women and allow women to access alcohol without facing social stigma.

    Arguments against Online Delivery of Alcohol:

    • Economic Costs vs. Benefits: The costs due to alcohol use often exceed the economic benefits from alcohol sales.
    • Increased Consumption and Binge Drinking: The availability of alcohol on-demand can increase consumption, promote binge drinking, and lead to alcohol-related harms.
    • Public Health Concerns: Alcohol is associated with various health risks including cancers, mental illnesses, liver disease, and increased risk of inter-partner violence.

    Consumption of Liquor in India:

    • India is the sixth-largest alcohol market worldwide with $52 billion in revenue.
    • Per capita alcohol consumption has increased from 1.6 litres in 2003-2005 to 5.5 litres in 2016-2018.
    • According to a 2019 survey, there were about 16 crore alcohol users in India in 2018.
    • Of these, 5.7 crore frequently consumed alcohol leading to social or interpersonal problems, and 2.9 crore were dependent users requiring therapeutic intervention.

    Can such a system make it safer for women to access alcohol?

    • Doorstep delivery may help women access alcohol without dealing with social stigma.
    • There is some evidence that it could reduce on-premise violence against women, as seen in Kerala. However, domestic violence related to alcohol use is rampant, and the overall safety of women cannot be presumed.

    How should governments regulate liquor consumption? (Way forward)

    • Restrict Availability and Marketing: Implement policies to limit the availability and marketing of alcohol.
    • Higher Taxes: Increase taxes on alcohol to deter consumption and generate revenue.
    • Enforce Drunk-Driving Laws: Strengthen the enforcement of drunk-driving laws with stringent penalties.
    • Invest in Treatment Programs: Allocate funds for psychosocial treatments of alcohol-use disorders and mental health initiatives.
    • Monitor and Evaluate Impact: Governments should work with health departments to monitor and evaluate the impact of doorstep delivery on alcohol consumption and revise policies if necessary.
    • Uniform Policy Standards: Develop more uniform policy standards and ensure better implementation grounded in public health priorities over revenue generation.

    Mains question for practice:

    Q Analyze the trends in alcohol consumption in India over the past two decades. How has this trend impacted public health and social dynamics? 10M

  • [pib] PM marks 5 years of abrogation of Articles 370 and 35(A)

    Why in the News?

    The Prime Minister recalled the Parliament’s 5-year-old decision to abrogate Articles 370 and 35(A), calling it a watershed moment.

    About Articles 370 and 35(A) of the Indian Constitution

    [1] Article 370: 

    Description
    Provision Grants special autonomous status to the state of Jammu and Kashmir.
    Nature Initially intended as a temporary provision, subject to eventual change or abrogation.
    Powers of State Allowed J&K to have its own Constitution and autonomy over internal matters except defense, foreign affairs, finance, and communications.
    Presidential Order President of India could extend or modify the application of Indian laws to J&K with the concurrence of the state government.
    Autonomy Details Provides a degree of autonomy to the state and permits the state to give some special privileges to its “permanent residents”.
    Emergency Provisions Emergency provisions are not applicable to the state on the grounds of “internal disturbance” without the concurrence of the State.
    State Boundaries Name and boundaries of the State cannot be altered without the consent of its legislature.
    Separate Institutions State has its own constitution, a separate flag, and a separate penal code (Ranbir Penal Code).
    Assembly Duration Duration of the state’s Assembly is 6 years, unlike five in the rest of India.
    Parliamentary Jurisdiction
    • Indian Parliament can pass laws regarding J&K in the matters of defense, external affairs, and communication only.
    • Any other law formed by Union will only be applicable in J&K by presidential order if it concurs with the state assembly.
    Abolishment Condition President may, by public notification, declare that this Article shall cease to be operative but only on the recommendation of the Constituent Assembly of the State.
    Abolishment In August 5, 2019, through a Presidential Order and a resolution passed by the Indian Parliament.
    Impact of Abrogation
    • J&K’s special status was revoked.
    • It was reorganized into two Union Territories: Jammu and Kashmir, and Ladakh.

     

    [2] Article 35A:  

    Description
    Provision Empowers the J&K legislature to define permanent residents of the state and provide them with special rights and privileges.
    Insertion Added to the Constitution through a Presidential Order in 1954.
    Permanent Residents Defined by the state as those who were state subjects on May 14, 1954, or have been residents for 10 years, and lawfully acquired immovable property.
    Special Rights Permanent residents were given exclusive rights to employment under the state government, acquisition of immovable property in the state, and scholarships.
    Constitutionality Debate Debated on the grounds that it was not added via an amendment procedure.
    Criticism Criticized for being discriminatory and creating a sense of separation from the rest of India.
    Revocation Along with Article 370, Article 35A was effectively nullified on August 5, 2019.

     

    PYQ:

    [2016] To what extent is Article 370 of the Indian Constitution, bearing marginal note “Temporary provision with respect to the State of Jammu and Kashmir”, temporary? Discuss The future prospects of this provision in the context of Indian polity.

  • [pib] National Coastal Mission Scheme (NCM)

    Why in the News?

    The Ministry of Environment, Forest and Climate Change (MoEFCC) has expanded the National Coastal Mission Scheme (NCM) to address the challenges posed by rising sea levels.

    About National Coastal Mission Scheme (NCM)

    • The NCM was launched in July 2014.
    • It aims to address the climate change impact on coastal areas and ensure sustainable development of coastal regions.
    • It is part of India’s National Action Plan on Climate Change (NAPCC), focusing on sustainable development and climate resilience in coastal areas.
    • Key Areas:
      • Coastal protection
      • Conservation of coastal ecosystems
      • Development of sustainable livelihoods
      • Enhancing climate resilience
    • The MoEFCC, Government of India, is responsible for implementing the scheme.

    Key Strategies

    • Coastal Protection: Construction and maintenance of coastal protection infrastructure to prevent erosion and manage coastal disasters.
    • Ecosystem Conservation: Conservation and restoration of mangroves, coral reefs, and other critical coastal ecosystems.
    • Sustainable Livelihoods: Promotion of sustainable livelihoods for coastal communities through skill development and capacity building.
    • Climate Resilience: Improving the resilience of coastal communities and infrastructure to climate change impacts.

    Major Initiatives:

    1. Management Action Plan on Conservation of Mangroves and Coral Reefs
    2. Research & Development in Marine and Coastal ecosystem
    3. Sustainable Development of Beaches under Beach Environment & Aesthetic Management Service
    4. Capacity Building / Outreach Programme of Coastal States/UTs on conservation of marine and coastal ecosystem including beach cleaning drive.

    PYQ:

    [2022] Explain the causes and effects of coastal erosion in India. What are the available coastal management techniques for combating the hazard?

    [2011] The 2004 Tsunami made people realize that mangroves can serve as a reliable safety hedge against coastal calamities. How do mangroves function as a safety hedge?

    (a) The mangrove swamps separate the human settlements from the sea by a wide zone in which people neither live nor venture out.

    (b) The mangroves provide both food and medicines which people are in need of after any natural disaster.

    (c) The mangrove trees are tall with dense canopies and serve as an excellent shelter during a cyclone or tsunami.

    (d) The mangrove trees do not get uprooted by storms and tides because of their extensive roots.

  • [pib] Bhoj Wetland

    Why in the News?

    The Madhya Pradesh State Wetland Authority has reported that Bhoj Wetland in Bhopal is not at risk of being removed from the Ramsar Convention List of important international wetlands.

    About Bhoj Wetland

    • Bhoj Wetland is located in the center of Bhopal district in Madhya Pradesh.
    • The wetland includes two man-made lakes: the upper lake and the lower lake.
    • Since August 2002, they have been recognized as a wetland of international importance under the Ramsar Convention.
    • The upper lake, created by King Bhoj in the 11th century, is one of the oldest large man-made lakes in central India.
      • It was formed by building an earthen dam across the Kolans River, which used to be a tributary of the Halali River.
      • Now, the upper part of the Kolans River and the Bhojtal drain into the Kaliasot River through a diversion channel.
      • Bhadbhada Dam, built in 1965, controls the outflow to the Kaliasot River.
    • The lower lake was created in 1794 by Nawab Chhote Khan to beautify the city.
      • It also has an earthen dam and drains into the Halali River through the lower part of the Kolans River, now called the Patra Drain.
      • Both the Kaliasot and Halali Rivers flow into the Betwa River.

    Significance of Bhoj Wetland

    • The upper lake provides 40% of Bhopal’s drinking water, while the lower lake supplies raw water and enhances the city’s beauty.
    • It supports over 700 species of plants and animals, including zooplankton and phytoplankton.
    • Both lakes are rich in biodiversity, supporting various fish species, birds, insects, reptiles, and amphibians.

    PYQ:

    [2018] Which one of the following is an artificial lake?

    (a) Kodaikanal (Tamil Nadu)

    (b) Kolleru (Andhra Pradesh)

    (c) Nainital (Uttarakhand)

    (d) Renuka (Himachal Pradesh)

  • [pib] Adopt a Heritage Scheme 2.0 

    Why in the News?

    Under the Adopt a Heritage Scheme 2.0, 19 MoUs have been signed so far covering a total of 66 monuments.

    About Adopt a Heritage Scheme 2.0 

    Aspect Details
    Revamped version of the original Adopt a Heritage Scheme.

    Launched in 2023.

    Legal Framework Defined as per the Ancient Monuments and Archaeological Sites and Remains Act (AMASR), 1958
    Application Process Stakeholders apply through a dedicated web portal listing available monuments for adoption
    Collaboration Encourages corporate stakeholders to contribute to monument preservation
    Term of Appointment Initially 5 years, extendable up to another five years
    Objective Foster collaboration for preservation of monuments for future generations
    Key Stakeholders Corporate stakeholders, Ministry of Tourism, Ministry of Culture, ASI, State/UT governments
    Program Goal Develop and maintain amenities at heritage sites
    Initial Scheme
    • Launch Date: 27 September 2017 (World Tourism Day) by the President of India.
    • Collaborators: Ministry of Tourism, Ministry of Culture, ASI, and State/UT governments.
    • Objective: Address challenges in operations and maintenance of heritage sites, develop mechanisms for amenities provision.
    • Monument Mitras: Agencies/Companies become ‘Monument Mitras’ through ‘Vision Bidding’.
    Note: Red Fort was the first monument to be adopted under the scheme by the Dalmia Bharat group in 2019.

     

    PYQ:

    [2018] Safeguarding the Indian Art Heritage is the need of the moment. Discuss.

  • [5th August 2024] The Hindu Op-ed: The psychology of extravagance

    [5th August 2024] The Hindu Op-ed: The psychology of extravagance

    PYQ Relevance:

    Mains:

    Q1 Critically discuss the objectives of Bhoodan and Gramdan movements initiated by Acharya Vinoba Bhave and their success.  (UPSC IAS/2013) 

    Q2 Can the vicious cycle of gender inequality, poverty and malnutrition be broken through microfinancing of women SHGs? Explain with examples.  (UPSC IAS/2021) 

    Note4Students: 

    Mains: Reason behind the inequality in India ;

    Mentor comments: Inequality in India is characterized by significant disparities in wealth and income distribution. The richest 1% of the population owns over 58% of the nation’s wealth, while the bottom 50% holds merely 3%. Factors contributing to this inequality include caste, gender, and regional disparities. Women, for instance, earn 34% less than men and own only 2% of agricultural land despite comprising 42% of the agricultural workforce. The COVID-19 pandemic exacerbated these inequalities, with the wealth of billionaires increasing while poverty deepened for many.

    Let’s learn!

    __

    Why in the News? 

    In their March 2024 study, “Income and Wealth Inequality in India, 1922-2023: The Rise of the Billionaire Raj,” economists Nitin Kumar Bharti, Lucas Chancel, Thomas Piketty, and Anmol Somanchi report that in 2022-23, the top 1% of the population held 22.6% of the total income and 40.1% of the total wealth in India.

    A case of gross disproportion as per study

    • Income and Wealth Distribution: In 2022-23, the top 1% of India’s population received 22.6% of national income and owned 40.1% of total wealth. This marks the highest levels of inequality recorded since 1961, indicating a stark concentration of wealth among the richest individuals, with the top 0.1% earning nearly 10% of national income.
    • Comparison with Historical Context: The report suggests that the current inequality levels are greater than those during the British colonial rule, with the top 10% of the population owning 65% of total wealth. In contrast, the bottom 50% holds only 6.4% of total wealth and earns 15% of national income.
    • Wealth of the Wealthy: The wealthiest 10,000 individuals possess an average of ₹22.6 billion, which is approximately 16,763 times the average wealth of an Indian.  
    • Start of inequality: The rise in inequality began in the 1980s with economic liberalization, accelerating after the 1991 reforms. The share of the bottom 50% in national income dropped significantly, while the income share of the top 10% increased dramatically during the same period.

    The reason behind the inequality: 

    • Economic Liberalization: The economic reforms initiated in the 1990s led to rapid growth in certain sectors, particularly in urban areas, while rural and less developed regions lagged behind.  
    • Lack of Inclusive Growth: Economic growth has not been inclusive, with benefits disproportionately favouring certain sectors and geographic regions. For instance, the service sector, which significantly contributes to GDP, is concentrated in a few states like Maharashtra and Karnataka.
    • High Unemployment and Underemployment: A lack of sufficient job creation and the prevalence of underemployment contribute to low productivity and income levels among the majority of the population
    • Caste and Gender Discrimination: Social stratification based on caste and gender continues to limit access to opportunities for marginalized groups. For example, upper castes hold a disproportionate share of wealth, while Scheduled Castes and Scheduled Tribes have significantly lower ownership of assets.
    • Educational Disparities: Access to quality education is uneven, with lower-income groups often lacking the resources to attain higher education, which is crucial for upward mobility. This educational gap perpetuates income inequality.
    • Regional Imbalances: Certain states in India are significantly more developed than others, leading to disparities in income and wealth distribution. For instance, five states own about 50% of the country’s total wealth, Maharashtra (17% of the country’s wealth share) Uttar Pradesh (11.6%), Kerala (7.4%), Tamil Nadu and Haryana

    Way forward

    • Redistribution of Wealth: The funds generated from increased taxation should be directed towards social programs that improve access to education, healthcare, and nutrition for lower-income groups. 
    • Invest in Rural Development: Need to focus on targeted investments in rural areas which can help bridge the gap between urban and rural economies.
    • Promote Quality Education and Skill Development: Expanding access to quality education and vocational training for marginalized communities can empower individuals and enhance their employability.
  • Balancing competition and sustainability for India

    Why in the News?

    • In 2023, the Securities and Exchange Board of India (SEBI) introduced an updated framework for corporate sustainability reporting.
    • The revised Business Responsibility and Sustainability Report (BRSR) framework mandates that companies assess and disclose the environmental impact of their entire value chain.

    Business Responsibility and Sustainability Report (BRSR) 

    • In 2021, the Securities and Exchange Board of India (SEBI) introduced the Business Responsibility and Sustainability Report (BRSR) framework, mandating that the top 1,000 listed companies in India disclose their performance on environmental, social, and governance (ESG) parameters.
    • This initiative aimed to enhance transparency and encourage responsible business practices, building on the earlier Business Responsibility Report (BRR) introduced in 2012.

    Key Features of the BRSR Framework

    • Expanded Reporting Requirements: The BRSR Core builds upon the initial Business Responsibility and Sustainability Report (BRSR) introduced in 2021, which mandated the top 1,000 listed companies in India to disclose their ESG performance.
    • Mandatory Assurance: Starting from FY 2023-24, the BRSR Core mandates that the top 150 companies obtain reasonable assurance on their ESG disclosures. This requirement aims to improve the credibility of the reported data and combat greenwashing, ensuring that companies provide reliable information about their sustainability practices.
    • Nine ESG Attributes: The framework is structured around nine critical ESG attributes, which include greenhouse gas emissions, water usage, energy consumption, and employee well-being.
    • Comply or Explain Principle: SEBI has adopted a “comply or explain” approach, allowing companies to either adhere to the specified reporting requirements or provide valid reasons for non-compliance.
    • Alignment with International Standards: The BRSR Core is aligned with several internationally recognized frameworks, such as the EU Taxonomy and the Global Reporting Initiative (GRI) standards.  
    • Focus on Value Chain: A significant aspect of the BRSR Core is its emphasis on assessing the ESG impacts of a company’s supply chain.

    For India, every economic sector must contribute to greener means of production 

    For India to achieve its sustainability goals and contribute effectively to greener means of production, every economic sector must play a vital role.

    Importance of Sectoral Contribution to Sustainability

    • Diverse Economic Sectors: The key sectors such as agriculture, construction, power, manufacturing, transport, and tourism are crucial for transitioning to a green economy. For example, electric transport and eco-tourism.
    • Government Initiatives: The Indian government is actively promoting green growth through investments in priority sectors, which include manufacturing, renewable energy, and electric mobility.  For example, An allocation of ₹19,700 crore for the production of green hydrogen.
    • Green Manufacturing: The manufacturing sector is a significant focus for greening efforts, with studies indicating that sustainable manufacturing practices can lead to substantial reductions in greenhouse gas emissions. For example, the (Zero Defect Zero Effect) ZED initiative aims to create a competitive, qualitative, and clean manufacturing ecosystem.
    • Renewable Energy Commitment: India has set ambitious targets for increasing its non-fossil energy capacity to 500 gigawatts by 2030.
    • Collaboration and Policy Frameworks: Initiatives like the Partnership for Action on Green Economy (PAGE) and various policy dialogues aim to facilitate collaboration among sectors to promote inclusive and sustainable economic growth.

    Way forward: 

    • Enhanced Accountability: Ensure stricter enforcement of the BRSR and BRSR Core frameworks, expanding the scope to cover more companies and sectors beyond the top 1,000 listed companies.
    • Capacity Building: Provide training and resources to companies, especially small and medium enterprises (SMEs), to improve their ESG reporting capabilities and integrate sustainability into their core operations.

    Mains question for practice:

    Q Discuss the significance of the Business Responsibility and Sustainability Report (BRSR) framework introduced by the Securities and Exchange Board of India (SEBI) in promoting sustainable business practices among Indian corporations. 15M

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