The 2014-2016 Pacificmarine heatwave (MHW) killed over four million common murres (Uria aalge) (IUCN: Least Concerned) in Alaska. A study published in Science revealed that this event marked the largest recorded vertebrate die-off linked to warming oceans.
About Marine Heat Waves (MHWs)
Details
What is it?
As per the National Oceanic and Atmospheric Administration (NOAA), prolonged periods of sea surface temperatures rising 3 to 4°C above average for at least five consecutive days.
IMD defines a marine heat wave (MHW) as a period when the sea’s temperature is above the 90th percentile(seasonally varying threshold) for at least 5 consecutive days.
Can last fromweeks to years, depending on intensity and extent.
Frequency: Increasing in both occurrence and intensity due to climate change.
Identified as one of the most significant stressors on global marine ecosystems, causing large-scale disruptions.
Key Observations on MHWs
2014-2016 Pacific MHW:
Caused the death of over 4 million common murres (Uria aalge) in Alaska, the largest vertebrate die-off linked to warming oceans.
Highlighted rapid and severe population declines in marine birds and a lack of ecosystem recovery even years later.
Increasing frequency and intensity are reshaping ecosystems, creating new survival challenges for marine species.
Evidence of shifts in marine environments, disrupting population dynamics.
Impacts of MHWs
On Ecosystems:
Mass Mortality: Loss of habitat-forming species like kelps and corals, degrading ecosystems.
Trophic Cascades: Displacement of lower-trophic species and reduced ecosystem productivity.
On Marine Species:
Reduced breeding success and increased mortality.
Example: 2014–2016 Pacific MHW killed half the common murre population in Alaska.
On Biodiversity:
Loss of key predators disrupts food webs.
Threatened species face survival challenges due to limited adaptability.
PYQ:
[2020] With reference to Ocean Mean Temperature (OMT), which of the following statements is/are correct?
OMT is measured up to a depth of 26ºC isotherm which is 129 meters in the south-western Indian Ocean during January-March.
OMT collected during January-March can be used in assessing whether the amount of rainfall in monsoon will be less or more than a certain long term mean.
Select the correct answer using the code given below:
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Secondly, Let’s Understand Why Traditional Methods Fall Short
Relying solely on traditional methods attending 1:many classes, reading model answers, and taking a few mock tests-often creates the illusion that this is the core of Prelims and Mains preparation. In reality, these approaches make up only about 10% of a comprehensive strategy. When your goal is to secure a rank in the least number of attempts, the stakes are even higher. Here’s how UAP Mentorship elevates your preparation to the next level:
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Philosophy: Every Student Is A Batch
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ܳDedicated Monthly CA Test: Focus on Risk-Taking, Logical Problem Solving
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ܳDetailed Explainations
ܳAll India Rankings
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Q. What is the need for expanding the regional air connectivity in India? In this context, discuss the government’s UDAN Scheme and its achievements. (CSE 2024)
Mentor’s Comment: UPSC mains have always focused on the development of Airports (2017), and ‘application in aviation ’ (2013).
The December 5, 2024, incident involving an Air India Airbus A320 at Goa’s Mopa airport highlights ongoing issues in Indian aviation. The crew rejected takeoff after mistakenly entering a taxiway instead of the runway, a recurring problem. The DGCA, often blaming pilots and neglecting deeper issues, continues to overlook systemic failures in regulation and airline practices, failing to learn from past incidents.
Today’s editorial addresses the systemic challenges in aviation regulation in India. This content can be used in your Mains answer to highlight challenges related to the aviation sector and how should be resolved the challenges.
_
Let’s learn!
Why in the News?
The repeated occurrence of similar serious aviation incidents in India highlights shortcomings in regulations and training standards.
What are the key challenges related to regulations in Indian Aviation?
Runway Confusion: There is a long history of runway confusion incidents involving Indian carriers, indicating systemic issues with pilot training and operational protocols.
Example (1993): A Jet Airways Boeing 737 on its inaugural flight to Coimbatore mistakenly landed at the Sulur airbase of the Indian Air Force instead of the Peelamedu civil airport.
Regulatory Oversight Failures: The Directorate General of Civil Aviation (DGCA) has been criticized for its reactive approach to safety incidents, often blaming pilots rather than addressing underlying systemic failures.
Example(Mopa Airport, December 2024): In a recent incident at Mopa Airport in Goa, a pilot from an Air India Airbus A320 crew was forced to abort takeoff after entering a parallel taxiway instead of the main runway. While the blame was placed on the pilot, such incidents highlight the DGCA’s failure to implement corrective measures across the industry.
Crew Fatigue and Operational Pressure: Indian regulations regarding flight and duty time limitations are considered weak, leading to crew fatigue and pressure to meet on-time performance (OTP) targets.
Example (Kozhikode, 2020): The tragic crash of an Air India Express flight in Kozhikode, which resulted in the death of 21 people, was partly attributed to the pilot’s fatigue and decision-making under pressure. The pilot had been under time constraints due to a tight schedule, resulting in a rushed landing.
What are the issues related to Addressing Aviation Safety?
Inadequate Training: Pilots often lack sufficient training on runway markings and stabilized approach criteria, contributing to repeated errors in navigation and landing.
Systemic Accountability: There is a lack of accountability among airlines and regulatory bodies for safety lapses, which prevents meaningful changes from being implemented.
Pressure from Management: Operational pressures imposed by airline management can lead to violations of safety protocols, as crews may prioritize performance metrics over safety considerations.
What are the international legislations related to aviation accidents signed by India?
• Chicago Convention (1944): India is a signatory to the Chicago Convention, which established the International Civil Aviation Organization (ICAO). It sets global standards for aviation safety, air navigation, and accident investigation, obligating India to maintain aircraft airworthiness and investigate aviation incidents. • Annex 13 to the Chicago Convention: India follows Annex 13, which mandates thorough investigations of aviation accidents and incidents, ensuring corrective actions to prevent future occurrences. • Montreal Convention (1999): Ratified by India in 2009, this convention outlines airline liability for passenger injury, death, baggage loss, or cargo damage during international flights, establishing compensation frameworks for aviation incidents. • Warsaw Convention (1929): India is a signatory to the Warsaw Convention, which defines carrier liability for accidents, including passenger injury and death, later modified by the Hague Protocol (1955) and Montreal Convention (1999). • IATA Membership & EU-India Aviation Safety Agreement: India is a member of IATA, ensuring adherence to global safety standards. It also has a safety agreement with the EU to enhance air transport safety and mutually recognize safety protocols.
Case study of Singapore Airlines Singapore Airlines is renowned for its commitment to service excellence and operational efficiency, achieved through a comprehensive digital transformation strategy: • Data Utilization: The airline harnessed data analytics to optimize customer service and streamline operations, ensuring a superior travel experience. • Automation of Processes: By automating various processes, Singapore Airlines improved efficiency and reduced operational costs while maintaining high safety standards. • Continuous Innovation: The airline consistently invests in new technologies, which has helped it remain competitive in the global market.
What should be the steps taken to address the problem related to Aviation Safety? (Way forward)
Strengthening Regulatory Oversight: The DGCA should enhance its safety audits and ensure strict compliance with ICAO standards to foster a culture of accountability within the aviation sector.
Improving Pilot Training: Airlines must invest in comprehensive training programs that emphasize understanding runway markings and adherence to stabilized approach criteria to reduce confusion during operations.
Addressing Crew Fatigue: Revising regulations on flight and duty time limitations is essential to prioritize crew rest and well-being over operational efficiency, thereby enhancing overall safety.
Promoting Systemic Accountability: Both airlines and regulatory bodies should share responsibility for aviation incidents, implementing systemic changes that prevent recurrence rather than placing blame solely on individual pilots.
Recently, Justice Shekhar Kumar Yadav’s speech at a Vishwa Hindu Parishad event, showing bias against Muslims, has raised concerns about the challenges in holding higher court judges accountable in India.
Why do the judges need to be accountable?
Upholding Judicial Integrity: Judges are the guardians of the Constitution and are expected to exhibit the highest ethical standards to maintain public trust in the judiciary.
Safeguarding Democracy: Accountability ensures that the judiciary acts as a fair and impartial arbiter, without overstepping or undermining democratic institutions.
Preventing Abuse of Power: Judicial independence is vital, but unchecked power can lead to misconduct or corruption, as seen in cases like Justice V. Ramaswami and Justice Soumitra Sen.
Maintaining Public Confidence: Accountability is critical to reinforcing public confidence in the judiciary, especially in a democracy where the judiciary acts as a check on other branches of government.
What are the accountable-related issues?
High Bar for Impeachment: The process requires “proved misbehaviour or incapacity” and a two-thirds majority in Parliament, making it almost impossible to remove errant judges.
Resignation to Evade Accountability: Judges like Justice Soumitra Sen and P.D. Dinakaran resigned before the completion of impeachment proceedings, avoiding scrutiny while retaining post-retirement benefits.
Immunity Misuse: Judges continue to enjoy post-retirement benefits even after accusations of misconduct, as seen in Justice Ramaswami’s case, undermining accountability.
Limited Scope for Independent Oversight: The judiciary lacks an independent review mechanism outside the Parliament-driven impeachment process, leaving little room for holding judges accountable in real time.
What is the review mechanism of committee set up under the Judges (Inquiry) Act, 1968?
Initiation: A removal motion, signed by 100 Lok Sabha MPs or 50 Rajya Sabha MPs, is submitted and approved by the Speaker or Chairman to initiate the process.
Investigation: A three-member committee (Supreme Court judge, Chief Justice of a High Court, and an eminent jurist) is constituted under the Judges (Inquiry) Act, 1968 to investigate allegations of “proved misbehaviour or incapacity.”
Parliamentary Decision: If the committee confirms the charges, the motion is debated in Parliament and requires a two-thirds majority in both Houses for the judge’s removal by the President.
Is there any accountability limitation by the Constitution for the judges?
Article 124(4) and (5): These articles provide for the removal of judges only through impeachment, which is a political and cumbersome process requiring a majority in Parliament.
Lack of Disqualification: The Constitution does not explicitly disqualify judges found guilty of misconduct from holding future public office.
Insufficient Deterrence: Provisions under the Judges (Inquiry) Act, 1968, do not offer significant penalties apart from removal, leaving gaps in ensuring judicial accountability.
Ambiguity in “Proved Misbehavior”: The term is not clearly defined, leading to challenges in establishing guilt and enforcing accountability.
Way forward:
Streamlining the Impeachment Process: Simplifying procedures and reducing the threshold for initiating impeachment could make it easier to hold judges accountable.
Clear Disqualification Guidelines: Introducing clear guidelines regarding disqualification from future judicial roles following findings of misconduct would reinforce accountability.
Public Awareness and Advocacy: Increasing public awareness about judicial accountability issues can foster demand for reform and greater scrutiny of judicial conduct.
Legislative Reforms: Revisiting the Judges (Inquiry) Act, 1968, to address its limitations and ensure it meets contemporary standards for accountability is crucial for restoring public confidence in the judiciary.
Mains PYQ:
Q Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to the appointment of judges of higher judiciary in India.(UPSC IAS/2017)
After the USA’s election result, U.S.-India (in 2nd term of Donald Trump) ties could be stronger, but issues over tariffs might cause trouble.
Why US India ties will be strengthed?
Shared Strategic Interests: The U.S. and India both view China as a significant strategic challenge, which aligns their interests in the Indo-Pacific region. This common perspective fosters collaboration on defence and security matters.
Political Will and Leadership: The anticipated second term of Donald Trump is expected to reinforce the U.S.-India relationship, as evidenced by the strong ties developed during his first term. Trump’s cabinet nominees are also pro-India, indicating a continuity of support for enhancing bilateral relations.
Economic Cooperation Potential: There is a renewed focus on trade agreements and economic partnerships, including the possibility of finalizing a Free Trade Agreement (FTA), which could enhance market access and reduce tariffs, benefiting both economies.
Defence and Technology Collaboration: Continued emphasis on defence cooperation and technology partnerships, particularly in areas like semiconductors and emerging technologies, will strengthen ties and enhance mutual security interests.
In which area would ties be strengthened?
Defence and Security: The U.S. and India have significantly enhanced their defence cooperation, including joint military exercises and technology transfers, such as the recent offer to restart the transfer of jet engine technology to India.
The India-U.S. Initiative on Critical and Emerging Technology (iCET) aims to foster collaboration in areas like artificial intelligence, quantum technologies, and cybersecurity.
Economic Relations: Bilateral trade has surged, increasing by 72% from 2017-18 to 2022-23, highlighting a robust economic partnership.
Both nations are keen on resolving trade disputes to further enhance mutual benefits.
Technological Collaboration: Initiatives like INDUS-X focus on integrating defense start-ups from both countries, promoting innovation in military technology and enhancing capabilities in critical sectors like semiconductors.
Multilateral Cooperation: Engagement through platforms like the Quad (with Japan and Australia) strengthens regional security cooperation against common threats, particularly from China.
What were the successful agreements between India and the USA during the first term of the Donald Trump period?
Communications Compatibility and Security Agreement (COMCASA): Signed in September 2018, this agreement aimed to facilitate secure communication between the armed forces of both nations, thereby enhancing interoperability during joint operations.
Basic Exchange and Cooperation Agreement (BECA): Finalized in October 2020, BECA provided a framework for sharing geospatial intelligence, which is crucial for military planning and operations.
Industrial Security Annex (ISA): This agreement, signed in December 2019, allowing for greater collaboration in defence manufacturing and technology transfer between the two countries.
Strategic Trade Authorization (STA-1) Status: The U.S. elevated India to STA-1 status, allowing for easier access to advanced technologies that were previously restricted to NATO allies.
2+2 Dialogue Format: This mechanism was initiated to bring together the defense and foreign ministers of both countries to discuss strategic issues, enhancing diplomatic engagement.
What could be the challenges between India and the USA?
High Tariffs and Market Access: Disagreements over tariffs and market access for U.S. products in India, particularly in agriculture and technology sectors, remain significant irritants.
Geopolitical Tensions: Differences in policy regarding Iran and Russia may create friction in the bilateral relationship, particularly with India’s historical ties to Russia.
Legal Investigations: Ongoing investigations by the U.S. Department of Justice into cases involving Indian entities could complicate diplomatic relations and create perceptions of bias against the Indian government.
What should India do to address the challenges? (Way forward)
Engage in Constructive Dialogue: India should actively engage with the U.S. to address tariff issues and seek mutually beneficial solutions that enhance market access for American products while protecting domestic interests.
Strengthen Economic Cooperation Frameworks: Pursuing comprehensive economic agreements that encompass trade, investment, and technology sharing can help mitigate tensions and foster a more robust partnership.
Clarify Stances on Geopolitical Issues: India needs to communicate its positions on sensitive geopolitical matters clearly to avoid misunderstandings with the U.S., particularly regarding its relationships with Iran and Russia.
Mains PYQ:
Q Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (UPSC IAS/2020)
ISRO’s PSLV will launch 2 satellites, SDX01 and SDX02, into a 476-km circular orbit in the first week of January to conduct the Space Docking Experiment (SpaDEx), marking India’s entry into the elite group of nations capable of mastering Space Docking.
What is PSLV-C60 SpaDeX Mission?
The PSLV-C60 SpaDeX Mission is a landmark mission aimed at demonstrating in-space docking and undocking technology.
This mission would position India as the fourth country in the world to master space docking, following the US, Russia, and China.
Objective:
To demonstrate the docking, undocking, and rendezvous capabilities of two satellites in low-Earth orbit (LEO).
Facilitate power transfer between docked spacecraft, an essential capability for future space missions.
Satellites: (Each weighing 220kg.)
SDX01 (Chaser): Equipped with a High-Resolution Camera (HRC).
SDX02 (Target): Carries a Miniature Multispectral Payload (MMX) and a Radiation Monitor (RadMon).
Configuration:
The satellites will be launched using the Polar Satellite Launch Vehicle (PSLV-C60) in a core-alone (CA) configuration, meaning without strap-on boosters.
They will be placed in a 476-km circular orbit with an inclination of 55°.
Post-Docking:
After the docking demonstration, the satellites will continue standalone missions for two years, conducting imaging, natural resource monitoring, and radiation environment studies.
Significance: It is a strategic step towards several ambitious space objectives, including:
Preparing for the Gaganyaan human spaceflight program
Developing the Bharatiya Antariksh Station (BAS), India’s proposed space station35
What is Space Docking?
Space docking refers to the process where two spacecraft in orbit rendezvous and physically connect to form a single entity. It is a highly complex and precise maneuver essential for advanced space missions.
Key Steps of Space Docking:
Rendezvous: Involves bringing two spacecraft into the same orbit with minimal distance and velocity difference.
Docking: Establishing a mechanical connection between the spacecraft using specialized docking systems.
Power and Resource Sharing: Once docked, the spacecraft can transfer power, fuel, or crew to support joint operations.
PYQ:
[2018] With reference to India’s satellite launch vehicles, consider the following statements:
PSLVs launch satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites.
Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth.
GSLV Mk III is a four-staged launch vehicle with the first and third stages using solid rocket motors; and the second and fourth stages using liquid rocket engines.
Which of the statements given above is/are correct?
The rupee has been hitting record lows against the US dollar but has simultaneously reached an all-time high in real effective terms. In November 2024, the Real Effective Exchange Rate (REER) index of the rupee touched 108.14, strengthening by 4.5% during the year, according to the RBI.
What is Effective Exchange Rate (EER)?
The Effective Exchange Rate (EER) measures the value of a currency relative to a basket of currencies from its major trading partners.
EER is a weighted average of exchange rates, reflecting the importance of each trading partner in a country’s total foreign trade.
Types of EER:
Nominal Effective Exchange Rate (NEER):
NEER is the weighted average of a currency’s exchange rates with the currencies of its trading partners.
It does not adjust for inflation, representing only nominal changes in currency value.
Higher NEER: Indicates the domestic currency has appreciated compared to the basket of currencies.
Real Effective Exchange Rate (REER):
REER adjusts NEER for inflation differentials between the country and its trading partners.
It measures the real purchasing power of a currency, providing insights into its competitiveness in international trade.
The base year for REER in India is 2015-16, set at 100.
REER > 100: Indicates an overvalued currency, making exports less competitive.
REER < 100: Indicates an undervalued currency, making exports more competitive.
How does it impact Exports?
REER provides a real measure of currency competitiveness, adjusted for inflation:
REER > 100 (Overvalued Currency):
Exports suffer, as Indian goods and services become expensive in global markets.
Imports rise, as foreign goods become cheaper in comparison.
May lead to a widening trade deficit.
REER < 100 (Undervalued Currency):
Exports thrive, as Indian goods and services are priced more competitively in global markets.
Imports decrease, as foreign goods become relatively expensive.
Improves the trade surplus and supports domestic industries.
PYQ:
[2022] With reference to the Indian economy, consider the following statements:
An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
The Parker Solar Probe has reached 6.1 million km from the Sun’s surface — the closest any human-made object has ever been. At this distance, if the Earth and Sun were 1 meter apart, the probe would be 4 cm from the Sun.
What is theParker Solar Probe?
Details
About
A NASA mission launched on August 12, 2018, as part of the “Living With a Star” program to study the Sun’s corona and solar winds.
Named after Eugene Parker, the first NASA mission named after a living researcher.
Size: Comparable to a small car.
Instruments: Equipped with four instruments to study electric and magnetic fields, plasma, and high-energy particles.
Completed 21 orbits around the Sun and uses Venus flybys to gradually get closer to the Sun.
How did it manage to come so close to the Sun?
On December 24, 2024, it reached 6.1 million km from the Sun’s surface, the closest any human-made object has been.
Technologies:
Heat Shield: A 4.5-inch carbon-composite shield withstands temperatures up to 1,377°C while keeping instruments stable at 29.4°C.
Venus Flybys: Gravitational assists from Venus gradually reduced the orbit.
Speed: Travels at 6,92,000 km/h, making it the fastest human-made object.
Significance of the Mission
Scientific Contributions: Provides insights into why the Sun’s corona is much hotter than its surface and the origins of solar winds.
Practical Implications: Improves predictions of space weather events that affect satellites, power grids, and communications on Earth.
Technological Feat: Demonstrates advanced spacecraft engineering to withstand extreme solar conditions.
PYQ:
[2010] In the context of space technology, what is “Bhuvan”, recently in the news?
(a) A mini satellite launched by ISRO for promoting the distance education in India
(b) The name given to the next Moon Impact Probe, for Chandrayaan-II
(c) A geoportal of ISRO with 3D imaging capabilities of India
The US President-elect Donald Trump has expressed support for H-1B Visas but emphasized balancing immigration policies with protecting American jobs.
AboutH-1B Visa Program
Details
What is it?
Allows U.S. employers to hire foreign workers for specialty occupations requiring:
High expertise.
A bachelor’s degree or higher.
Administered by the U.S. Department of Labor to address skill shortages in the U.S. workforce.
Employment under H-1B is temporary but renewable.
Key Features
Purpose: Provides access to specialized talent unavailable domestically.
Annual Cap: 65,000 new H-1B visas + 20,000 for workers with U.S. master’s degrees or higher.
Exemptions: Workers in higher education institutions, non-profits, or government research organizations are not subject to the cap.
How does it benefit in Indians?
Indians account for the largest group of H-1B beneficiaries (72.3% in FY 2023, ~2.79 lakh approvals).
Fields:
65% employed in computer-related occupations.
Others include architecture/engineering (9.5%) and education (6%).
Median Compensation: $118,000 annually in 2023.
Trends and Policy Changes:
1. Admission Trends:
• Pre-COVID rise (2018: 5.70 lakh; 2019: 6.01 lakh).
• COVID-19 decline (2020: 3.68 lakh; 2021: 1.48 lakh).
• Post-COVID recovery (2022: 4.10 lakh; 2023: 7.55 lakh).
2. Denial Rates:
• Increased during Trump era (2016: 6%; 2018: 24%).
• Declined to 4% by 2021 and stabilized at 2% in 2022.
• High denials during Trump’s term were often overturned upon appeal.
PYQ:
[2020] Indian diaspora has a decisive role to play in the politics and economy of America and European Countries’. Comment with examples.
At a New Delhi panel, economist Thomas Piketty proposed taxing India’s super-rich to fund health and education, while Chief Economic Advisor Anantha Nageswaran cautioned against potential fund outflows from higher taxes.
What are the potential benefits of reinstating a wealth tax?
Funding Public Services: A wealth tax could provide significant revenue that could be allocated to critical sectors such as health and education, addressing inequalities in access to these services. This funding could help create a more educated and healthier workforce, ultimately benefiting the economy.
Addressing Wealth Inequality: With wealth concentration at historically high levels, a wealth tax could serve as a tool to mitigate inequality, which is increasingly viewed as a fundamental development issue that affects opportunities for many individuals.
Encouraging Productive Investments: By taxing unproductive assets like real estate and gold while promoting investments in productive assets such as equities and bonds, a wealth tax could potentially shift capital towards more economically beneficial uses.
What challenges and criticisms exist regarding the implementation of a wealth tax?
Measurement Difficulties: Accurately measuring wealth poses significant challenges. The complexities of defining what constitutes wealth and ownership can lead to loopholes and evasion, as individuals may shift their assets to avoid taxation.
Capital Flight Concerns: There is apprehension that high taxation on the wealthy could lead to capital outflows, as individuals may relocate their assets or themselves to countries with lower tax burdens. This concern is particularly pronounced in India, where the public infrastructure may not be sufficient to retain high-net-worth individuals.
Historical Ineffectiveness: Previous implementations of wealth tax in India resulted in low collection rates (less than 1% of gross tax collections). The high cost of collection and the challenges of enforcement contributed to its abolishment in 2016-17.
Misallocation of Resources: Critics argue that simply imposing a wealth tax does not guarantee effective use of the revenue generated. There are concerns about whether additional funds would improve sectors like education, which already face management inefficiencies.
How would a wealth tax impact India’s economy and social structure?
Economic Growth vs. Redistribution: Proponents argue that addressing inequality through a wealth tax can enhance overall economic growth by expanding opportunities for disadvantaged groups.
However, opponents maintain that focusing on growth alone is more beneficial, suggesting that redistribution efforts may not lead to improved outcomes for the economy.
Social Cohesion: A wealth tax could potentially foster greater social cohesion by addressing stark disparities in wealth and opportunity.
However, if perceived as punitive or ineffective, it might exacerbate tensions between different socioeconomic groups.
Investment Climate: A wealth tax could change how people invest in India. Some investors might hesitate because of higher costs, but if the money is used well for public services. It could improve living standards and infrastructure, making India a better place for investment over time.
Case study:
Norway is often cited as a successful case study for wealth tax implementation. Norway imposes a wealth tax on individuals with a net worth exceeding a certain threshold, which includes various asset classes such as real estate, stocks, and bonds.
For 2022, a new step for the state rate is introduced. For net wealth in excess of NOK 20 million (NOK 40 million for married couples), the rate is 0.4%. Thus, the maximum wealth tax rate is 1.1%.
Way forward:
Efficient Tax Design and Implementation: Develop a clear and transparent framework for wealth taxation to minimize evasion, ensure equitable enforcement, and balance revenue generation with economic growth.
Focus on Public Infrastructure: Prioritize effective allocation of tax revenue to critical sectors like health and education, addressing inefficiencies to build trust and maximize social and economic benefits.
Mains question for practice:
Q “Reinstating a wealth tax in India could be a tool for reducing inequalities and funding critical public services. However, its implementation poses several economic and administrative challenges.” Critically analyse this statement in the context of India’s socio-economic landscape. (250 words) 15M
Mains PYQ:
Q Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. (UPSC IAS/2019)
