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  • What are the Memory Techniques to Follow While Studying for UPSC CSE? || Free Q&A Webinar with IAS Officer Vaibhav Rawat (AIR 25, UPSC 2020)|| Limited Slots Open, Register Now

    What are the Memory Techniques to Follow While Studying for UPSC CSE? || Free Q&A Webinar with IAS Officer Vaibhav Rawat (AIR 25, UPSC 2020)|| Limited Slots Open, Register Now

    “Prelims, Mains and Interview are 3 stages of pilgrimages and I found all of them equally challenging”, says Vaibhav Rawat IAS after securing All India Rank 25 in UPSC 2020 Exam.

    He started his preparation in 2018 without any idea of what was civil services or the challenging syllabus of UPSC. Fresh out of his job in Samsung R&D, Vaibhav initially faced umpteen difficulties in understanding or remembering what he had read. However, with daily studies there was an improvement and he was slowly able to master the topics. In his first attempt, Vaibhav reached till interview stage but missed out on the final ranking by a whisker. After this, he took the mentorship of Sajal Sir to score high marks in Mains and Interview. Vaibhav proves the saying that, successful people are not gifted but they work hard.

    Upon finding his name in the final pdf, Vaibhav asserts that his parents are more happier than him. For Vaibhav, there is only relief as he doesn’t have to start the exhausting cycle of UPSC preparation all over again.

    Open to All, Free to Attend—Ask me Anything Session with Vaibhav Rawat IAS

    Vaibhav Rawat is geared up for an Ask me Anything Session with all Civilsdaily UPSC aspirants. For anyone wanting tips on certain topics, preparing for UPSC Mains in the last 3 months or suggestions on improving their marks, this session will be useful. Your questions will be Vaibhav’s answers which are drawn from his own experiences. Just register yourself with us as soon as possible to confirm your presence.

    Key Takeaways of Vaibhav Rawat’s Webinar

    1. Importance of having a role model. Who was Vaibhav Rawat’s idol and how did that help him stay calm and focused towards his goals?

    2. Unpredictability of UPSC . What to study when you are not sure of the type of questions which would come in the exam?

    3. The art of answer writing in Mains. What are few of the common practices Vaibhav followed in the Mains exam?

    4. Memory techniques followed by Vaibhav Rawat. What did he do to recall important dates, names, statistics, conventions for the exam?

    5. First Attempt v/s Second Attempt. How did Vaibhav approach prelims, mains and interview preparation?

    6. Tips for beginners. Why is it better to work for a year or two before preparing for UPSC?

    A major part of the session would be interactive and in Q&A format. This will surely benefit any aspirant who are in midway of their preparation.

    Webinar Details

    If you are studying hard but are unsure that you are studying right, then its time to get some assurance from the topper himself! Register for this free webinar by IAS officer Vaibhav Rawat.

    Date: 22 November 2021 (Monday)

    Time: 7 P.M

  • Why India’s pro-rich, anti-poor taxation policies must change

    Context

    To develop their renewable energy capacities poor countries may well have to help themselves to make the transition that society urgently needs. One source of funding could well be the well-off citizens of India, who are getting richer and richer.

    Growing inequality in India

    • A 2018 Oxfam report revealed that 10 per cent of the richest Indians garnered 77.4 per cent of the nation’s wealth.
    •  In fact, according to the report, 58 per cent of India’s wealth was in the hands of one per cent of the country’s population.
    • The combined income of this handful of people in 2017 was almost as much as India’s budget that year.
    • In 2017, the fortune of India’s 100 richest tycoons leaped by 26 per cent.
    •  According to Crédit Suisse, the number of dollar millionaires in India has jumped from 34,000 in 2000 to 7,59,000 in 2019 — in other words, the country has one of “the world’s fastest-growing population of millionaires”.
    • The average wealth of these millionaires has increased by 74 per cent over this period.

    Issues with taxation policies

    • The taxation policy of the government, instead of making the exchequer benefit from this trend, has actively strengthened the trend of growing millionaires.
    • Replacing wealth tax by increasing income tax: The government replaced the wealth tax by an income tax increase of two per cent for households that earned more than 10 million rupees annually.
    • Corporate tax was reduced: The corporate tax was lowered, for existing companies from 30 per cent to 22 per cent, and for manufacturing firms incorporated after October 1, 2019 that started operations before March 31, 2023, from 25 to 15 per cent — the biggest reduction in 28 years.
    • Increase in income tax exemptions: In the 2019-20 budget, the income tax exemption limit jumped from Rs 2,00,000 to 2,50,000 and the tax rate for incomes up to Rs 5 lakh was reduced from 10 to 5 per cent.

    Impact of pro-rich taxation policy

    • Deprives the state of resources: This taxation policy deprived the state of important resources.
    • Increase in indirect taxes: To (partly) compensate for the decline of direct taxes, the government has increased indirect taxes, unfairly so, because they affect all Indians irrespective of their income.
    • The share of indirect taxes in the state’s fiscal resources has increased to reach 50 per cent of total taxes in 2018.
    • Taxes on petroleum products are a case in point.

    High taxes on petroleum products

    • About two-thirds of the cost of a litre of petrol now goes towards taxes.
    • The tax collected on petrol and diesel has increased by 459 per cent in the past seven years — from Rs 52,537 crore in 2013 to Rs 2.13 lakh crore in 2019-2020.
    • Given that petrol is a less elastic good, people are bound to consume it even at higher prices.
    • This also explains why the government sees fuel sale in India as a safe “revenue collection” medium.
    • In 2018-19, excise duty on petroleum products alone accounted for roughly 24 per cent of the indirect tax revenue.

    Consider the question “India’s taxation policies are criticised for being pro-rich. In the context of this, discuss the issues with the taxation system and suggest the measure to deal with these issues.”

    Conclusion

    The government’s taxation policy will probably continue to prevail depriving the exchequer of some of the resources it needs for dealing with issues as important as climate change.

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  • Economic, political implications of repeal of farm laws

    Context

    In a surprise move, Prime Minister Narendra Modi announced that the government will repeal the farm laws in the Winter Session of Parliament.

    Economic impact

    • Agri-growth rate to remain constant: The agri-GDP growth has been 3.5 per cent per annum in the last seven years.
    • One expects this trend to continue — there might be minor changes in the agri-GDP depending on rainfall patterns.
    • Cropping pattern to remain skewed: Cropping patterns will remain skewed in favour of rice and wheat, with the granaries of the Food Corporation of India bulging with stocks of grain.
    • Increase in food subsidy: The food subsidy will keep bloating and there will be large leakages.
    • Environmental impact: The groundwater table in the north-western states will keep receding and methane and nitrous oxide will keep polluting the environment.

    Suggestion on increasing farmers income

    • Average agri-household income: The latest Situation Assessment Survey of the NSO reveals that the income of an average agri-household in India was only Rs 10,218 per month in 2018-19.
    • This is not a very happy situation and all out measures need to be taken to increase rural incomes in a sustained manner.
    • How to increase farmers income: Given that the average holding size stands at just 0.9 ha (2018-19), and has been shrinking over the years.
    • Efficient functioning value chain: Unless one goes for high-value agriculture — and, that’s where one needs efficient functioning value chains from farm to fork by the infusion of private investments in logistics, storage, processing, e-commerce, and digital technologies — the incomes of farmers cannot be increased significantly.
    • Reforms: This sector needs reforms, both in the marketing of outputs as well as inputs, including land lease markets and direct benefit transfer of all input subsidies — fertilisers, power, credit and farm machinery.

    Implications

    • Demand for legal status to MSP could strengthen: Farmer leaders are already asking for the legal guarantee of MSPs for 23 agri-commodities.
    • Their demand could increase to include a larger basket of commodities.
    • Demand for privatisation: There could be demands to block the privatisation reforms of public sector enterprises — Air India, for instance — or to scuttle any other reform for that matter.
    • The net result is likely to be slowing down the economic reforms that are desperately needed to propel growth.

    Consider the question “The latest Situation Assessment Survey of the NSO reveal the low average agri-household income in India. All out measures need to be taken to increase rural incomes in a sustained manner. In the context of this, suggest the measures to increase the farmers’ income and challenges in it.

    Conclusion

    The most important lesson from the repeal of the farm laws is that the process of economic reforms has to be more consultative, more transparent and better communicated to the potential beneficiaries. It is this inclusiveness that lies at the heart of democratic functioning of India.

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  • PM announces repeal of three Farm Laws

    The Prime Minister has announced the withdrawal of the contentious farm laws.

    Daniel Q. Gillion, author of The Political Power of Protest, and a sociologist at the University of Pennsylvania, says to be successful, a protest must be impossible to ignore.

    What were the farm laws that have been repealed?

    1. Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020: It was aimed at allowing trade in agricultural produce outside the existing APMC mandis
    2. Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020: It seeks to provide a framework for contract farming;
    3. Essential Commodities (Amendment) Act, 2020: It was aimed at removing commodities such as cereals, pulses, oilseeds, edible oils, onion and potato from the list of essential commodities.

    Why were these reforms sought?

    • APMC reforms: There has been a long-pending demand for reforms in agricultural marketing, a subject that comes under the purview of state governments.
    • Long pending stagnation: It was in this backdrop that the present government went for reforms in the sector by passing these laws.

    In what circumstances were the laws passed?

    • Ordinance route: The government initially cleared them as ordinances in June 2020, there were token protests with the country’s attention gripped by the first wave of Covid-19.
    • Without consultation and haste: In Parliament, there was no thorough scrutiny of the Bills by a parliamentary panel. The government dismissed these demands and pushed the legislation through.
    • Opposition disregard: The Opposition benches were suspended for a week for their “disorderly conduct” while protesting against the rushed passage of the laws.

    Beginning of the protests

    The protests gained momentum when the Centre pushed the Bills in Parliament in the Monsoon Session.

    • Fear over private mandis: Farmers feared that the existing APMC mandis where they sell their products would be shut down once private players started trading in agri-produce outside the mandi premises.
    • Non-guarantee over MSP: Once the APMC mandi system became redundant, procurement based on minimum support prices (MSP) too would come to an end.

    After sporadic protests against the farm laws, including a nationwide road blockade, the farmers’ unions in Punjab and Haryana gave a call for a ‘Delhi Chalo’ movement.

    How protests could sustain for so long?

    • Unity: The leaders of farmers’ unions were very strategic in their approach to the protest and decided to work together very early in the agitation.
    • Finances: The protest sites at the Delhi border needed a steady injection of resources to keep going. Aware of this need, the unions had begun making monthly collections.
    • People: The unions behind the farm stir are well-organized machinery with committees at the level of villages, blocks, and districts.
    • Communication: Social media has been central to the scale of this agitation.
    • Engagement: The unions kept the stakeholders engaged by ensuring that there was never a dull moment in this agitation.

    In practical terms, what was the status of the three laws until the repeal?

    • The farm laws were in force for only 221 days — June 5, 2020, when the ordinances were promulgated to January 12, 2021, when the Supreme Court stayed their implementation.
    • The Supreme Court stayed the implementation of the three laws on January 12 this year.
    • Since the stay, the laws have been suspended.
    • The government has used old provisions of the Essential Commodities Act, 1955 to impose stock limits, having amended the Act through one of the three farm laws.

    Reasons for the repeal

    There are contrasting suggestions about the timing of the decision to announce the repeal.

    • Forthcoming elections: There are crucial Assembly elections early next year in five states, including Uttar Pradesh and Punjab.
    • Public appeasement: The PM sought to announce this on Guru Nanak Jayanti probably in a move to appease a community, to which a significant segment of protesting farmers from Punjab belongs.
    • Rising anxiety among Public: There was a risk that anxiety among the protesters could lead to tensions as there had been many deaths since the protests began.
    • Fury over year-long protests: The protest had created a ruckus on the streets of capital due to continuous blockades even after the intervention of Supreme Court.
    • Rising political differences: Given that it took the government a year to realise the socio-political costs, the repeal also signals a weakened political feedback mechanism within the party.

    Significance of the repeal

    • Restores faith in the govt: In the immediate term, the repeal exposes the government to charges of being on the wrong path and against popular sentiments, notwithstanding its claims to the contrary.
    • Dedication over farmers’ cause: The govt moves were increasingly perceived as being not in tune with the needs of rural farming communities.
    • Political stewardship: The PM was clearly balancing his political posture that has thrived on the image of strong and decisive leadership.

    Implications of the repeal

    • CAA standpoint: Although the anti-CAA protests were called off, almost two years on, the Home Ministry has not yet framed the rules for implementation of the CAA.
    • Statehood for J&K: There is no such unanimity over Article 370. Most of these parties have largely been united for the restoration of statehood to J&K, and early elections.

    An analysis of the enactment-repeal conundrum

    (1) Reforms are must

    • There may be some deficiencies in the exact design and mechanism of the reforms proposed in the three farm laws.
    • However, most advocates of agricultural reform would agree that they were in the right direction.

    (2) Reforms don’t occur overnight

    • These laws could be a great example for passionate reforms. However, Legislative tapasya (penance) is all about listening to outer world (i.e the farmers), not inner self.
    • It requires listening to those for whose benefit laws and policies are crafted. It can’t be a meditation in isolation and implementation as a divine ordeal.

    (3) Answerability and consultation matters

    • That the government chose to push these reforms through its own set of consultations left many stakeholders feeling left out, and created a backlash.
    • The repeal underlines that any future attempts to reform the rural agricultural economy would require a much wider consultation.

    (4) Success lies in the acceptance of reforms

    • The better design of reforms ensures wider acceptance.
    • The repeal would leave the government hesitant about pursuing these reforms in stealth mode again.

     

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  • 25 years of Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA)

    The Ministry of Tribal Affairs has celebrated the 25th year of the inauguration of the Panchayats (Extension to Scheduled Areas) Act 1996 (PESA)’ as a part of Azadi Ka Amrit Mahotsav.

    What is PESA?

    • The PESA is a law enacted by the govt. for ensuring self-governance through traditional Gram Sabhas for people living in the Scheduled Areas of India.
    • Scheduled Areas are areas identified by the Fifth Schedule of the Constitution of India.

    What are Scheduled Areas?

    • “Scheduled Areas” mean the Scheduled Areas as referred to in Clause (1) of Article 244 of the Constitution.
    • They are found in ten states of India which have predominant population of tribal communities.
    • At present, Scheduled Areas have been declared in the States of AP (including Telangana), Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, MP, Maharashtra, Odisha and Rajasthan.

    Powers granted to Gram Sabha/Panchayats

    • Land acquisition: To be consulted on matters of land acquisition and resettlement.
    • Mining licencing: Grant prospecting license for mining lease for minor minerals and concessions for such activities.
    • Water Bodies: Planning and management of minor water bodies.
    • Regulation of Liquor: The power to enforce prohibition or to regulate or restrict the sale and consumption of any intoxicant.
    • Minor Forest Produces: The ownership of MFPs
    • Land reforms: The power to prevent alienation of land and to restore any unlawfully alienated land of a scheduled tribe.
    • Village Markets: The power to manage village markets.
    • Money Lending: The power to exercise control over money lending to scheduled tribes.

    Role of Governor in Implementation of PESA

    (1) Report as sought by the President:

    • As per para 3 of the Fifth Schedule, the Governor therein is required to make a report to the President regarding the administration of the Scheduled Areas.
    • The Attorney General had advised the Home Ministry that the role of the governor in sending this report is discretionary.

    (2) Applicability of certain laws:

    • An even more significant role of the Governor in scheduled areas arises out of the powers inherent in sub-para (1) of Para 5 of the Fifth Schedule.
    • Governor may direct that any particular Act of Parliament or of the Legislature of the State shall not apply to a Scheduled Area or any part thereof in the State or shall apply to a Scheduled Area.

    (3) Modification of laws:

    • The regulation-making powers of the Area is bound neither by the advice of the Tribes Advisory Council or the assent of the President.
    • The provision lays down the responsibility on the Governor to ensure that laws that are contrary to the interests of Scheduled Areas may be suitably modified.

    Why was PESA enacted?

    • Filling the constitutional vacuum: These Areas were not covered by the 73rd Constitutional Amendment or Panchayati Raj Act of the Indian Constitution as provided in Part IX of the Constitution.
    • Self-governance: PESA sought to enable the Panchayats at appropriate levels and Gram Sabhas to implement a system of self-governance.
    • Customary regulation: It includes a number of issues such as customary resources, minor forest produce, minor minerals, minor water bodies, selection of beneficiaries, sanction of projects, and control over local institutions.

    Significance of PESA

    • Tribal autonomy: PESA was seen as a panacea for many of these vulnerabilities where the tribal communities in such Scheduled Areas were to decide by themselves the pace and priorities of their development.
    • Tribal way of development: PESA was viewed as a positive development for tribal communities in Scheduled Areas that had earlier suffered tremendously from engagement with modern development processes.
    • Sustainable access to forests: The loss of access to forest, land, and other community resources had increased their vulnerability.
    • Easing of tribal distress: Rampant land acquisition and displacement due to development projects had led to large-scale distress in tribal communities living in Scheduled Areas.

    Issues with PESA

    • Dilution of the role of Tribal Advisory Councils: PESA mandates Tribal Advisory Councils to oversee tribal affairs and also gives extrajudicial, extra-constitutional powers to the Governors.
    • Politicization: The councils, with the CM as their chairperson, have evolved into a non-assertive institution amid the machinations of upper-class politics.
    • Non-involvement: The Governors, in order to have friendly relations with the Chief Ministers, have desisted from getting involved in tribal matters.
    • Lack of coordination at Centre: Two different ministries, the Ministry of Panchayati Raj and the Ministry of Tribal Affairs, have an overlapping influence and they function almost without any coordination.
    • Lack of operationalization: In most of the state the enabling rules are not in place more than eight years after the adoption of the Act suggests the reluctance to operationalize the PESA mandate.
    • Ignoring the spirit of PESA: The state legislations have omitted some of the fundamental principles without which the spirit of PESA can never be realised.
    • Ambiguous definitions: No legal definition of the terms like minor water bodies, minor minerals etc. exist in the statute books.

    Related question in CS Mains:

    Q. What are the two major legal initiatives by the State since Independence addressing discrimination against Scheduled Tribes (STs)? (2017, 150W)

    Also try answering this PYQ:

    In the areas covered under the Panchayat (Extension to the Scheduled Areas) Act, 1996, what is the role/power of Gram Sabha?

    1. Gram Sabha has the power to prevent alienation of land in the Scheduled Areas.
    2. Gram Sabha has the ownership of minor forest produce.
    3. Recommendation of Gram Sabha is required for granting prospecting license or mining lease for any mineral in the Scheduled Areas.

    Which of the statements given above is/are correct?

    (a) Only 1

    (b) 1 and 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

     

    Post your answers here:

     

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  • HC presses Centre on Uniform Civil Code

    Stating that the Uniform Civil Code “is a necessity and mandatorily required today,” the Allahabad High Court has called upon the Central Government to forthwith initiate the process for its implementation.

    What is a Uniform Civil Code?

    • A Uniform Civil Code is one that would provide for one law for the entire country, applicable to all religious communities in their personal matters such as marriage, divorce, inheritance, adoption etc.
    • Article 44, one of the directive principles of the Constitution lays down that the state shall endeavour to secure a Uniform Civil Code for the citizens throughout the territory of India.
    • These, as defined in Article 37, are not justiciable (not enforceable by any court) but the principles laid down therein are fundamental in governance.

    Why need UCC?

    • UCC would provide equal status to all citizens
    • It would promote gender parity in Indian society.
    • UCC would accommodate the aspirations of the young population who imbibe liberal ideology.
    • Its implementation would thus support the national integration.

    Issues with UCC

    • There are practical difficulties due to religious and cultural diversity in India.
    • The UCC is often perceived by the minorities as an encroachment on religious freedom.
    • It is often regarded as interference of the state in personal matters of the minorities.
    • Experts often argue that the time is not ripe for Indian society to embrace such UCC.

    Greater role for State

    • Fundamental rights are enforceable in a court of law.
    • While Article 44 uses the words “state shall endeavour”, other Articles in the ‘Directive Principles’ chapter use words such as “in particular strive”; “shall in particular direct its policy”; “shall be obligation of the state” etc.
    • Article 43 mentions “state shall endeavour by suitable legislation” while the phrase “by suitable legislation” is absent in Article 44.
    • All this implies that the duty of the state is greater in other directive principles than in Article 44.

    What are more important — fundamental rights or directive principles?

    • There is no doubt that fundamental rights are more important.
    • The Supreme Court held in Minerva Mills (1980): Indian Constitution is founded on the bed-rock of the balance between Parts III (Fundamental Rights) and IV (Directive Principles).
    • To give absolute primacy to one over the other is to disturb the harmony of the Constitution.
    • Article 31C inserted by the 42nd Amendment in 1976, however, lays down that if a law is made to implement any directive principle, it cannot be challenged on the ground of being violative of the FRs under Articles 14 and 19.

    Does India not already have a uniform code in civil matters?

    • Indian laws do follow a uniform code in most civil matters – Indian Contract Act, Civil Procedure Code, Sale of Goods Act, Transfer of Property Act, Partnership Act, Evidence Act etc.
    • States, however, have made hundreds of amendments and therefore in certain matters, there is diversity even under these secular civil laws.
    • Recently, several states refused to be governed by the uniform Motor Vehicles Act, 2019.

    What about personal laws?

    • If the framers of the Constitution had intended to have a Uniform Civil Code, they would have given exclusive jurisdiction to Parliament in respect of personal laws, by including this subject in the Union List.
    • But “personal laws” are mentioned in the Concurrent List.
    • Last year, the Law Commission concluded that a Uniform Civil Code is neither feasible nor desirable.

    Is there one common personal law for any religious community governing all its members?

    • All Hindus of the country are not governed by one law, nor are all Muslims or all Christians.
    • Not only British legal traditions, even those of the Portuguese and the French remain operative in some parts.
    • In Jammu and Kashmir until August 5, 2019, local Hindu law statutes differed from central enactments.
    • The Shariat Act of 1937 was extended to J&K a few years ago but has now been repealed.

    Various customary laws

    • Muslims of Kashmir were governed by a customary law, which in many ways was at variance with Muslim Personal Law in the rest of the country and was, in fact, closer to Hindu law.
    • Even on registration of marriage among Muslims, laws differ from place to place. It was compulsory in J&K (1981 Act), and is optional in Bengal, Bihar (both under 1876 Act), Assam (1935 Act) and Odisha (1949 Act).
    • In the Northeast, there are more than 200 tribes with their own varied customary laws.
    • The Constitution itself protects local customs in Nagaland. Similar protections are enjoyed by Meghalaya and Mizoram.
    • Even reformed Hindu law, in spite of codification, protects customary practices.

    How does the idea of a Uniform Civil Code relate to the fundamental right to religion?

    • Article 25 lays down an individual’s fundamental right to religion;
    • Article 26(b) upholds the right of each religious denomination or any section thereof to “manage its own affairs in matters of religion”;
    • Article 29 defines the right to conserve distinctive culture.
    • An individual’s freedom of religion under Article 25 is subject to “public order, health, morality” and other provisions relating to FRs, but a group’s freedom under Article 26 has not been subjected to other fundamental rights
    • In the Constituent Assembly, there was division on the issue of putting UCC in the fundamental rights chapter. The matter was settled by a vote.
    • By a 5:4 majority, the fundamental rights sub-committee headed by Sardar Patel held that the provision was outside the scope of FRs and therefore the UCC was made less important than freedom of religion.

    Minority opinion in the Constituent Assembly

    • Some members sought to immunize Muslim Personal Law from state regulation.
    • Mohammed Ismail, who thrice tried unsuccessfully to get Muslim Personal Law exempted from Article 44, said a secular state should not interfere with the personal law of people.
    • B Pocker Saheb said he had received representations against a common civil code from various organisations, including Hindu organisations.
    • Hussain Imam questioned whether there could ever be uniformity of personal laws in a diverse country like India.
    • B R Ambedkar said “no government can use its provisions in a way that would force the Muslims to revolt”.
    • Alladi Krishnaswami, who was in favour of a UCC, conceded that it would be unwise to enact UCC ignoring strong opposition from any community.
    • Gender justice was never discussed in these debates.

    How did the debate on a common code for Hindus play out?

    • In June 1948, Rajendra Prasad, President of the Constituent Assembly, warned Nehru that to introduce “basic changes” in personal law was to impose “progressive ideas” of a “microscopic minority” on the Hindu community as a whole.
    • Others opposed to reforms in Hindu law included Sardar Patel, Pattabhi Sitaramayya, M A Ayyangar, M M Malaviya and Kailash Nath Katju.
    • When the debate on the Hindu Code Bill took place in December 1949, 23 of 28 speakers opposed it.
    • On September 15, 1951, President Prasad threatened to use his powers of returning the Bill to Parliament or vetoing it. Ambedkar eventually had to resign.
    • Nehru agreed to the trifurcation of the Code into separate Acts and diluted several provisions.

     

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  • What are the Memory Techniques to Follow While Studying for UPSC CSE? || Free Q&A Webinar with IAS Officer Vaibhav Rawat (AIR 25, UPSC 2020)|| Limited Slots Open, Register Now

    What are the Memory Techniques to Follow While Studying for UPSC CSE? || Free Q&A Webinar with IAS Officer Vaibhav Rawat (AIR 25, UPSC 2020)|| Limited Slots Open, Register Now

    “Prelims, Mains and Interview are 3 stages of pilgrimages and I found all of them equally challenging”, says Vaibhav Rawat IAS after securing All India Rank 25 in UPSC 2020 Exam.

    He started his preparation in 2018 without any idea of what was civil services or the challenging syllabus of UPSC. Fresh out of his job in Samsung R&D, Vaibhav initially faced umpteen difficulties in understanding or remembering what he had read. However, with daily studies there was an improvement and he was slowly able to master the topics. In his first attempt, Vaibhav reached till interview stage but missed out on the final ranking by a whisker. After this, he took the mentorship of Sajal Sir to score high marks in Mains and Interview. Vaibhav proves the saying that, successful people are not gifted but they work hard.

    Upon finding his name in the final pdf, Vaibhav asserts that his parents are more happier than him. For Vaibhav, there is only relief as he doesn’t have to start the exhausting cycle of UPSC preparation all over again.

    Open to All, Free to Attend—Ask me Anything Session with Vaibhav Rawat IAS

    Vaibhav Rawat is geared up for an Ask me Anything Session with all Civilsdaily UPSC aspirants. For anyone wanting tips on certain topics, preparing for UPSC Mains in the last 3 months or suggestions on improving their marks, this session will be useful. Your questions will be Vaibhav’s answers which are drawn from his own experiences. Just register yourself with us as soon as possible to confirm your presence.

    Key Takeaways of Vaibhav Rawat’s Webinar

    1. Importance of having a role model. Who was Vaibhav Rawat’s idol and how did that help him stay calm and focused towards his goals?

    2. Unpredictability of UPSC . What to study when you are not sure of the type of questions which would come in the exam?

    3. The art of answer writing in Mains. What are few of the common practices Vaibhav followed in the Mains exam?

    4. Memory techniques followed by Vaibhav Rawat. What did he do to recall important dates, names, statistics, conventions for the exam?

    5. First Attempt v/s Second Attempt. How did Vaibhav approach prelims, mains and interview preparation?

    6. Tips for beginners. Why is it better to work for a year or two before preparing for UPSC?

    A major part of the session would be interactive and in Q&A format. This will surely benefit any aspirant who are in midway of their preparation.

    Webinar Details

    If you are studying hard but are unsure that you are studying right, then its time to get some assurance from the topper himself! Register for this free webinar by IAS officer Vaibhav Rawat.

    Date: 22 November 2021 (Monday)

    Time: 7 P.M

  • [Burning Issue] Farm Laws and Farmers Protest

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    Recently, Prime Minister Narendra Modi announced that the central government will repeal all three farm laws. Farmers have been protesting against the farm laws and demanding their rollback since 2020.

    The Modi government has been confrontational with farmers’ organizations, giving so far an impression that it would not repeal the laws as the protesting farmers didn’t represent the “real” farmers. These laws will be repealed in the Winter Session of Parliament.

    Let us look at the topic in detail and try to understand the factors behind the policy retreat of the government.

    Background

    • Long pending reforms: Government wanted to convert the COVID-19 crisis into a reform opportunity by undertaking long pending reforms in agriculture marketing.
    • Out of 11 measures, 3 measures seek to liberalize agricultural marketing and hence hailed as 1991 moment for agriculture.
    • The 3 farms acts ware:  
      1. Act to promote Inter-state and Intra-State Trading
      2. Act to promote Contract farming
      3. Amendments to Essential Commodities Act
    • However, these 3 farm Acts have been opposed by various stakeholders- Farmers, Traders and State Governments on account of various reasons:
      1. Discontinuation of MSP via open-ended procurement
      2. Gradual dismantling of the Public Distribution System (PDS),
      3. Loss of price discovery mechanism established by the APMC mandis
      4. Exploitation by the corporates,
      5. Fear of a reduction in the scope and size of PDS

    In what circumstances were the laws passed?

    • Ordinance route: The government initially cleared them as ordinances in June 2020, there were token protests with the country’s attention gripped by the first wave of Covid-19.
    • Without consultation and haste: In Parliament, there was no thorough scrutiny of the Bills by a parliamentary panel. The government dismissed these demands and pushed the legislation through.
    • Opposition disregard: The Opposition benches were suspended for a week for their “disorderly conduct” while protesting against the rushed passage of the laws.

    The Three Contentious Laws: A quick recap

     (1) Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020:

    • It expands the scope of trade areas of farmers produce from select areas to “any place of production, collection, and aggregation”. It allows electronic trading and e-commerce of scheduled farmers’ produce.
    • It prohibits state governments from levying any market fee, cess or levy on farmers, traders, and electronic trading platforms for trade of farmers’ produce conducted in an ‘outside trade area’.

    (2) Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020:

    • It creates a national framework for contract farming through an agreement between a farmer and a buyer before the production or rearing of any farm produce.
    • It provides farmers engaging with Agri-business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce by a mutually agreed price framework.

    (3) Essential Commodities (Amendment) Act 2020:

    • It allows for the center to regulate food items through essential commodities. 
    • It also requires that imposition of any stock limit on agricultural produce be based on price rise.

    Why are farmers fuming over these laws?

    These bills sought to bring much-needed reforms to the agricultural marketing system. However, farmers are apprehensive that the free market philosophy supported by these bills could undermine the MSP system and make farmers vulnerable to market forces.

    Let us look at all their concerns one by one:

    (1) Fear against the end of Mandi System

    • The APMC regulates the mandi (marketplace) where farmers bring their produce, and therefore, guarantees that they receive the MSP.
    • Since the state governments will not be able to regulate the trade outside the APMC markets, farmers believe the laws will gradually end the mandi system and leave farmers at the mercy of corporates.

    (2) Fear over MSPs and procurement guarantee

    • Farmers believe that dismantling the mandi system will bring an end to the assured procurement of their crops at MSP.
    • Similarly, farmers believe the price assurance legislation may offer protection to farmers against price exploitation, but will not prescribe the mechanism for price fixation.
    • They are demanding the government guarantee MSP in writing, or else the free hand given to private corporate houses will lead to their exploitation.

    (3) Fear of Arhatiyas

    • The arhatiyas (commission agents) and farmers enjoy a friendship and bonding that goes back decades.
    • On an average, at least 50-100 farmers are attached with each arhatiyas, who takes care of farmers’ financial loans and ensures timely procurement and adequate prices for their crop.
    • Farmers believe the new laws will end their relationship with these agents and corporates will not be as sympathetic towards them in times of need.

     (4) Fear over the end of subsidized electricity

    • Farmers concerns are also fuelled by the proposed Electricity (Amendment) Bill 2020 which might end their access to subsidized electricity.
    • The bill seeks to create an Electricity Contract Enforcement Authority (ECEA), a move aimed to further centralization.
    • Another concern is the transfer of subsidies through DBT. Farmers will have to pay first from their own pocket, after which they will get subsidies.

    (5) Fear over Contract Farming

    • The FAPA Act formalizes contract cultivation through a “national framework” and explicitly prohibits any sponsor firm from acquiring the land of farmers through purchase, lease or mortgage.
    • But farmers fear over the big corporate players’ monopoly over food processing industry and its supply chain dynamics.
    • They fear that their ownership rights would be at risk as the Act provides for debt instruments for the companies which have their own recovery mechanisms.

    (6) Fear over dispute resolution

    • The FAPA Act provided for a three-level dispute settlement mechanism by the conciliation board, Sub-Divisional Magistrate and Appellate Authority.
    • Since the highest level of appeal for the farmer against any private entity was the Appellate Authority, the farmer is effectively prevented from moving the Court.
    • Thus, they claim that the Act was highly skewed in favor of private entity as the individual farmers did not have the resources that private companies had.

    (7) Fear over EC Amendment Act

    • The original EC Act de-regulated food items including cereals, pulses, potato, onion, edible oilseeds, and oils, and could only be regulated in the extraordinary circumstances.
    • The new law states that government regulation of stocks will be based on rising prices.
    • This stock-limiting puts farmers at the peril of the government and thus prevent them from making from any profit during any extra-ordinary circumstances as most of the time they only have to bear losses.

    How were protests could sustain for so long?

    • Unity: The leaders of farmers unions were very strategic in their approach to the protest and decided to work together very early in the agitation.
    • Finances: The protest sites at the Delhi border needed a steady injection of resources to keep going. Aware of this need, the unions had begun making monthly collections.
    • People: The unions behind the farm stir are well-organised machineries with committees at the level of villages, blocks and districts.
    • Communication: Social media has been central to the scale of this agitation.
    • Engagement: The unions kept the stakeholders engaged by ensuring that there was never a dull moment in this agitation.

    In practical terms, what was the status of the three laws until the repeal?

    • The farm laws were in force for only 221 days — June 5, 2020, when the ordinances were promulgated to January 12, 2021, when the Supreme Court stayed their implementation.
    • The Supreme Court stayed the implementation of the three laws on January 12 this year.
    • Since the stay, the laws have been suspended.
    • The government has used old provisions of the Essential Commodities Act, 1955 to impose stock limits, having amended the Act through one of the three farm laws.

    Reasons for the repeal

    There are contrasting suggestions about the timing of the decision to announce the repeal.

    • Forthcoming elections: There are crucial Assembly elections early next year in five states, including Uttar Pradesh and Punjab.
    • Public appeasement: The PM sought to announce this on Guru Nanak Jayanti probably in a move to appease a community, to which a significant segment of protesting farmers from Punjab belongs.
    • Rising anxiety among Public: There was a risk that anxiety among the protesters could lead to tensions as there had been many deaths since the protests began.
    • Fury over year-long protests: The protest had created a ruckus on the streets of capital due to continuous blockades even after the intervention of Supreme Court.
    • Rising political differences: Given that it took the government a year to realise the socio-political costs, the repeal also signals a weakened political feedback mechanism within the party.

    Significance of the repeal

    • Reflects popularity of the govt: In the immediate term, the repeal exposes the government to charges of being on the wrong path and against popular sentiments, notwithstanding its claims to the contrary.
    • Dedication over farmers cause: The govt moves were increasingly perceived as being not in tune with the needs of rural farming communities.
    • Political stewardship: The PM was clearly balancing his political posture that has thrived on the image of a strong and decisive leadership.

    Implications of the repeal

    • CAA standpoint: Although the anti-CAA protests were called off,almost two years on, the Home Ministry has not yet framed the rules for implementation of the CAA.
    • Statehood for J&K: There is no such unanimity over Article 370. Most of these parties have largely been united for the restoration of statehood to J&K, and early elections.

    An analysis of the enactment-repeal conundrum

    (1) Reforms are must

    • There may be some deficiencies in the exact design and mechanism of the reforms proposed in the three farm laws.
    • However, most advocates of agricultural reform would agree that they were in the right direction.

    (2) Reforms don’t occur overnight

    • These laws could be a great example for passionate reforms.  However, Legislative tapasya (penance) is all about listening to outer world (i.e the farmers), not inner self.
    • It requires listening to those for whose benefit laws and policies are crafted. It can’t be a meditation in isolation and implementation as a divine ordeal.

    (3) Answerability and consultation matters

    • That the government chose to push these reforms through its own set of consultations left many stakeholders feeling left out, and created a backlash.
    • The repeal underlines that any future attempts to reform the rural agricultural economy would require a much wider consultation.

    (4) Success lies in the acceptance of reforms

    • The better design of reforms ensures wider acceptance.
    • The repeal would leave the government hesitant about pursuing these reforms in stealth mode again.

    Way forward

    • Parliamentary scrutiny is must: Parliament approved the laws even as dialogue around them was missing. While the Union government did speak to farmer leaders, it always maintained it would implement the laws.
      • It is very essential to take various stakeholders under consideration including opposition leaders.
    • Consultation with Farmers: There were no dialogues or inputs from farmers. They were simply bulldozed into implementation, fuelling an impression that some vested private interests were guiding them.
      • That could be the reason why many such laws have been brought in as ordinances and were then approved in Parliament using brute majority. Public scrutiny for laws is always treated as seditious.
      • The government has to do away with such forceful imposition of laws on public without giving due consideration to their demands.
    • A lesson for the upcoming legislations: Many similar legislations will be passed in the next few months. Amendments to the Forest Conservation Act will be one of them.
      • Here also there are many stakeholders at the receiving end government must consider their demands.
    • No stopping here: Though not accepted, reforms are necessary and government should strive to bring them with necessary changes. Agriculture is the backbone of the majority of Indian population and their concerns and wellbeing should be the priority of the government.

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  • The heavy lifting on climate action must begin

    Context

    Glasgow’s success was that it finished building the scaffolding for climate action initiated through the Paris Agreement. But true success depends on whether countries are receptive to these nudges.

    What were the Glasgow climate meeting’s (COP26) successes and failures?

    • Strengthened Paris Agreement mechanism: Glasgow strengthened the Paris Agreement mechanism of eliciting pledges from countries and ratcheting them up over time.
    • It requested countries to update and strengthen 2030 emission targets in their NDCs by the end of 2022, earlier than previously expected.
    • Success at Glasgow was explicitly defined around ‘keeping 1.5 degrees alive’ through such pledges.
    • There are two problems with this interpretation.
    • First, the Paris, and Glasgow, approach focusing on target-setting gives insufficient importance to the challenge of implementing those targets.
    • A focus on shorter term targets and their implementation — which India to its credit has been highlighting — will be important.
    • Second, by calling on countries to strengthen targets to align with the Paris Agreement objectives without explicitly considering that countries have different roles and responsibilities in doing so risks side-stepping, again, the long-standing issue of climate equity.

    Phase-down clause for thermal power and implications for India

    • Phasing down coal power: A specific high profile clause calls for the ‘phase down of unabated coal power and phase out of inefficient fossil fuel subsidies’.
    • It was the Indian Minister who read out an amendment modifying ‘phase-out’ to ‘phase-down’ for coal.
    • India’s concerns: India’s real concerns included not precluding subsidies for social purposes, such as for cooking gas; querying whether from an equity point of view, all countries should be asked to limit coal use at the same time; and noting the lack of mention of oil and gas.
    • A positive for all from environmental point of view: From an environmental point of view, more explicit discussion of coal, but ideally all fossil fuels, is a positive, including for India.
    • Concerns on developmental view: From a developmental view, however, India is concerned that explicit mention of coal constrains us in our choice of fuel.
    • Way out for India: A possible way out is for India to explicitly seek global support for an accelerated transition away from coal, an approach taken by South Africa.

    Challenges and achievements at COP26

    [A] Measures for adaptations

    • Adaptation has long been neglected in global negotiations, reflecting a global power imbalance that places less weight on the concerns of vulnerable nations.
    • In this context, it was a partial win that Glasgow set up an explicit two year work programme for a ‘global goal’ on adaptation.
    • No development on agenda of loss and damage: The important complementary agenda of ‘loss and damage’ – compensating for unavoidable impacts that go beyond adaptation — received at most lip service.
    • Even though there was discussion of a specific mechanism, backed by funding, to the dismay of small, vulnerable nations, only a ‘dialogue’ was established.

    [B] Climate finance commitment issue not addressed

    • Commitment on climate finance not met: Climate finance promised to be the central issue of COP26, with considerable frustration from developing countries that the decade-long commitment of $100 billion had not been met.
    • Glasgow did no more than establish a work programme on post-2025 financing and continue tracking progress on the $100 billion.
    • The exception was a call to double adaptation finance by 2025.
    • Mobilising private finance: Former Bank of England Governor Mark Carney indicated that companies committed to net zero initiatives could marshal a scarcely believable $130 trillion, suggesting growing efforts to mobilise private finance.
    • Developing countries have long insisted that publicly funded climate finance is a right devolving from the ‘polluter pays’ principle rather than aid.

    [C] Paris rulebook

    • Completion of two elements of Paris Rulebook: There were two particularly important elements of what is called the ‘Paris Rulebook’ that were completed in Glasgow.
    • Transparency framework: First, the transparency framework was completed, which includes reporting rules and formats for emissions, progress on pledges and finance contributions.
    • Rules for carbon market: The second key was completion of agreed rules for carbon markets, the complexities of which had stymied agreement for four years.
    • Rules were put in place to limit the scope for ‘double-counting’ of credits by more than one country.

    Way forward for India

    • The real determinant of success or failure rests on national politics and popular support for climate change within countries — how countries use the scaffolding.
    • For India, these politics are complex because they revolve around simultaneously balancing concerns over whether our policy space will be limited by inequities embedded in the global mitigation efforts, and our own interests as a vulnerable country in enhancing and accelerating climate action.
    • A balanced view requires consideration of both objectives.

    Consider the question “Why climate finance continues to be a contentious issue in the negotiations over climate change? Suggest the way to balance the concerns over development with the efforts at climate action.”

    Conclusion

    The meeting hit many, but not all, of its procedural benchmarks by building scaffolding for the future. But the real determinant of success or failure rests on national politics and popular support for climate change within countries.

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  • What are the Memory Techniques to Follow While Studying for UPSC CSE? || Free Q&A Webinar with IAS Officer Vaibhav Rawat (AIR 25, UPSC 2020)|| Limited Slots Open, Register Now

    What are the Memory Techniques to Follow While Studying for UPSC CSE? || Free Q&A Webinar with IAS Officer Vaibhav Rawat (AIR 25, UPSC 2020)|| Limited Slots Open, Register Now

    “Prelims, Mains and Interview are 3 stages of pilgrimages and I found all of them equally challenging”, says Vaibhav Rawat IAS after securing All India Rank 25 in UPSC 2020 Exam.

    He started his preparation in 2018 without any idea of what was civil services or the challenging syllabus of UPSC. Fresh out of his job in Samsung R&D, Vaibhav initially faced umpteen difficulties in understanding or remembering what he had read. However, with daily studies there was an improvement and he was slowly able to master the topics. In his first attempt, Vaibhav reached till interview stage but missed out on the final ranking by a whisker. After this, he took the mentorship of Sajal Sir to score high marks in Mains and Interview. Vaibhav proves the saying that, successful people are not gifted but they work hard.

    Upon finding his name in the final pdf, Vaibhav asserts that his parents are more happier than him. For Vaibhav, there is only relief as he doesn’t have to start the exhausting cycle of UPSC preparation all over again.

    Open to All, Free to Attend—Ask me Anything Session with Vaibhav Rawat IAS

    Vaibhav Rawat is geared up for an Ask me Anything Session with all Civilsdaily UPSC aspirants. For anyone wanting tips on certain topics, preparing for UPSC Mains in the last 3 months or suggestions on improving their marks, this session will be useful. Your questions will be Vaibhav’s answers which are drawn from his own experiences. Just register yourself with us as soon as possible to confirm your presence.

    Key Takeaways of Vaibhav Rawat’s Webinar

    1. Importance of having a role model. Who was Vaibhav Rawat’s idol and how did that help him stay calm and focused towards his goals?

    2. Unpredictability of UPSC . What to study when you are not sure of the type of questions which would come in the exam?

    3. The art of answer writing in Mains. What are few of the common practices Vaibhav followed in the Mains exam?

    4. Memory techniques followed by Vaibhav Rawat. What did he do to recall important dates, names, statistics, conventions for the exam?

    5. First Attempt v/s Second Attempt. How did Vaibhav approach prelims, mains and interview preparation?

    6. Tips for beginners. Why is it better to work for a year or two before preparing for UPSC?

    A major part of the session would be interactive and in Q&A format. This will surely benefit any aspirant who are in midway of their preparation.

    Webinar Details

    If you are studying hard but are unsure that you are studying right, then its time to get some assurance from the topper himself! Register for this free webinar by IAS officer Vaibhav Rawat.

    Date: 22 November 2021 (Monday)

    Time: 7 P.M

  • More a private sector primer than health-care pathway

    Context

    NITI Aayog recently published a road map document entitled “Health Insurance for India’s Missing Middle”.

    About missing middle and provision in the NITI Aayog report

    • The Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), aims to extend hospitalisation cover of up to ₹5 lakh per family per annum to a poor and vulnerable population of nearly 50 crore people.
    • Left out segment: Covering the left out segment of the population, commonly termed the ‘missing middle’ sandwiched between the poor and the affluent, has been discussed by the Government recently.
    • Towards this, NITI Aayog recently published a road map document entitled “Health Insurance for India’s Missing Middle”.
    • Primary role for private commercial health insurer: The report proposes voluntary, contributory health insurance dispensed mainly by private commercial health insurers as the prime instrument for extending health insurance to the ‘missing middle’.

    Issues with the provision in the NITI Aayog report

    • Narrow coverage: Government subsidies, if any at all, will be reserved for the very poor within the ‘missing middle’ and only at a later stage of development of voluntary contributory insurance.
    • This is a major swerve from the vision espoused by the high-level expert group on UHC a decade ago, which was sceptical about such a health insurance model.
    • No country has ever achieved UHC by relying predominantly on private sources of financing health care.
    • Contributory insurance not best way: Evidence shows that in developing countries such as India, with a gargantuan informal sector, contributory health insurance is not the best way forward and can be replete with problems.
    • Issues with low premium model: For hospitalisation insurance, the report proposes a model similar to the Arogya Sanjeevani scheme, albeit with lower projected premiums of around ₹4,000-₹6,000 per family per annum.
    • This model is a little different from commercial private insurance, except for somewhat lower premiums.
    • Low premiums are achieved by reducing administrative costs of insurers through an array of measures, including private use of government infrastructure.
    • This model is vulnerable to nearly every vice that characterises conventional private insurance.
    • Insufficient measures to deal with adverse selection: The report suggests enrolment in groups as a means to counter adverse selection.
    • The prevailing per capita expenditure on hospital care is used to reflect affordability of hospital insurance, and thereby, a possible willingness to pay for insurance.
    • Both these notions are likely to be far-fetched in practice, and the model is likely to be characterised by widespread adverse selection notwithstanding.
    • OPD insurance on a subscription basis: The report proposes an OPD insurance with an insured sum of ₹5,000 per family per annum, and again uses average per capita OPD spending to justify the ability to pay.
    • However, the OPD insurance is envisaged on a subscription basis, which means that insured families would need to pay nearly the entire insured sum in advance to obtain the benefits.
    • Clearly, this route is unlikely to result in any significant reduction of out-of-pocket expenditure on OPD care.
    • Role of government:The NITI report defies the universally accepted logic that UHC invariably entails a strong and overarching role for the Government in health care, particularly in developing countries.

    Consider the question “What are the challenges in achieving universal health coverage? What are the issues with private sources  financing health care to achieve UHC?”

    Conclusion

    The National Health Policy 2017 envisaged increasing public health spending to 2.5% of GDP by 2025. Let us not contradict ourselves so early and at this crucial juncture of an unprecedented pandemic.

  • Cryptocurrencies

    With cryptocurrencies such as Bitcoin gaining popularity among citizens, the Centre has been compelled to take a stance on the legal status of cryptocurrencies.

    Background

    • The Union Government is said to be considering a proposal to tax cryptocurrency transactions in the country.
    • The move would bring cryptocurrency trading, which has till date happened outside the ambit of the law, into the formal economy.

    Defying RBI ban

    • RBI has been vehemently opposed to the idea of legalizing cryptocurrencies.
    • It had banned financial institutions such as banks from facilitating transactions involving cryptocurrencies back in 2018.
    • The RBI’s order was overturned by the Supreme Court in 2020, and this led to a tremendous surge in cryptocurrency transactions through exchanges.

    Why did RBI propose a ban?

    • Financial stability: The RBI has characterized private cryptocurrencies as a threat to financial stability.
    • Threat to the sovereignty of Rupee: It perceives cryptocurrencies rise as a threat to the sovereignty of the rupee.
    • Beyond regulatory scope: The widespread acceptance of cryptocurrencies could interfere with the ability of the RBI to conduct monetary policy effectively.
    • Digital currency in the pipeline: It should be noted that RBI and other central banks are also looking to come up with digital versions of their own currencies.
    • Competition of currencies: The rupee or central bank digital currencies may not be able to outcompete cryptocurrencies just because they are digital.

    Legislative opinion on Cryptocurrencies

    • Not in favour of ban: This week, a Parliamentary Standing Committee recommended that cryptocurrencies be regulated rather than banned.
    • Making a legal framework: The Government is also expected to table a bill that clarifies its position on cryptocurrencies in Parliament next year.
    • Taxing cryptocurrencies: There is a proposal to classify cryptocurrency exchanges as e-commerce platforms and tax them under the GST framework comes.

    Why has the Government chosen to regulate rather than ban cryptocurrencies?

    • Popularity amongst Public: The growing popularity of cryptocurrencies among citizens may have played a role in the Government opting for regulation over an outright ban.
    • Lack of evident threat: There is no clear evidence of the misuse of cryptocurrencies and their risks.
    • Boosting with policy: The Union govt may also not want to kill the nascent cryptocurrency industry which many believe can be a hub for financial innovation.
    • Revenue generation: Fiscal revenues can be adversely impacted by the increased tax evasion opportunities that crypto-currencies can facilitate.
    • Capitalizing the market: The govt wants to capitalise on the recent surge in the usage of cryptocurrencies to tax them and shore up its revenues.
    • Financial innovation: Blockchain technology has multiple uses beyond just facilitating cryptocurrency transactions.

    Issues with the ban

    • Brain-Drain: Ban of cryptocurrencies is most likely to result in an exodus of both talent and business from India, similar to what happened after the RBI’s 2018 ban.
    • Capital inflows will be restricted: If cryptos begin to get mined onshore, they will induce capital inflows.
    • Killing financial innovation: A ban will deprive India, its entrepreneurs and citizens of a transformative technology that is being rapidly adopted across the world.

    Other generic concerns:

    • Safety (cyber-attacks and fraud)
    • Financial integrity (money laundering and evasion of capital controls)
    • Energy usage (outsized energy needs to mine cryptos)

    Way forward

    • Thus it can be inferred that cryptocurrency is better classified as an asset rather than as a currency, in order to gain acceptance and avoid a ban.

    Conclusion

    • There is no doubt that the acceptance of cryptocurrencies by the Government is likely to be limited.
    • While cryptocurrencies may be accepted as speculative assets, it is highly unlikely that they will be accepted as full-fledged currencies competing against the rupee.

     

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  • RBI panel brings law to regulate Digital Lending

    A Reserve Bank of India (RBI) Working Group (WG) on digital lending has recommended separate legislation to oversee such lending as well as a nodal agency to vet the Digital Lending Apps.

    Digital Lending

    • Digital lending is the process of availing credit online.
    • Its increased popularity amongst new-age lenders can be attributed to expanding smartphone penetration, credit range flexibility, and speedy online transactions.

    Significance of Digital Lending

    India has a huge growth potential when it comes to the Digital Lending landscape:

    • Alternate source of finance: Digital lending is mostly preferred by those who are generally not able to avail any credit through the formal sources of finance, like banks.
    • Lender of the last resort: Digital lending is mostly preferred by those who are generally not able to avail any credit through the formal sources of finance, like banks.
    • Financial inclusion: Digital lending is a powerful tool that can be used for financial inclusion.
    • Cost-efficient lending: With new innovations underway, digital lending offers much better products to the masses at a much faster rate which is even more cost-efficient.
    • Exception for red-tapism: Online lending has played a pivotal role in evading cumbersome red-tapism usually involved while availing loans offline in a traditional setting.
    • Preference by MSMEs: The online lending platforms have gained massive popularity among MSMEs post-Covid as they were unable to secure finance through traditional lending.
    • Easy onboarding: The quick turnaround time and onboarding, easy KYC, as well as disbursement within minutes have attracted the cash-crunched MSMEs towards these digital routes to secure credit.

    Issues with Digital Lending

    • No business model: There are many gaps that are existent in this model of digital lending like any new business operation.
    • High interest: Unauthorised lenders provided credit to customers without any collateral and at exorbitant rates coupled with unachievable deadlines to pay off these humongous debts.
    • Coercing and harassment for recovery: Resultantly, borrowers were coerced by the lenders to recollect when they were unable to pay off these debts. We see many cases of suicides due to such harassment.

    Key recommendations by RBI

    • Self-Regulation: RBI has mooted a Self-Regulatory Organisation for participants in the digital lending ecosystem.
    • Developing a Baseline Technology: Development of certain baseline technology standards and compliance with those standards as a pre-condition for offering digital lending solutions.
    • Direct loan disbursement: Disbursement of loans directly into the bank accounts of borrowers; disbursement and servicing of loans only through bank accounts of the digital lenders.
    • Data collection: With the prior and explicit consent of borrowers with verifiable audit trails.
    • Standardized code of conduct: for recovery to be framed by the proposed SRO in consultation with RBI.

    Way forward

    • There is a growing need for regulation in this space or unauthorized players like pointed out above will keep popping up.
    • Stringent provisions must be formulated which can be enforceable legally.
    • Regulation must be enforced in this industry soon to ensure consumer trust remains unfettered.

     

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  • Speaker’s powers on Anti-Defection Cases

    The All-India Presiding Officers’ Conference (AIPOC) ended with the delegates failing to reach a consensus on whether the Speaker’s powers under the anti-defection law should be limited.

    What is Anti-defection Law?

    • The Anti-Defection Law under the Tenth Schedule of the Constitution punishes MPs/ MLAs for defecting from their party by taking away their membership of the legislature.
    • It gives the Speaker of the legislature the power to decide the outcome of defection proceedings.
    • It was added to the Constitution through the Fifty-Second (Amendment) Act, 1985 when Rajiv Gandhi was PM.
    • The law applies to both Parliament and state assemblies.

    Cases considered under the anti-defection law

    The law covers three scenarios with respect to shifting of political parties by an MP or an MLA.

    (1) Voluntary give-up

    • The first is when a member elected on the ticket of a political party “voluntarily gives up” membership of such a party or votes in the House against the wishes of the party.
    • Such persons lose his seat.

    (2) Independent members

    • When a legislator who has won his or her seat as an independent candidate joins a political party after the election.
    • In both these instances, the legislator loses the seat in the legislature on changing (or joining) a party.

    (3) Nominated MPs

    • In their case, the law gives them six months to join a political party, after being nominated.
    • If they join a party after such time, they stand to lose their seat in the House.

    Powers to disqualification

    • Under the anti-defection law, the power to decide the disqualification of an MP or MLA rests with the presiding officer of the legislature.
    • The law does not specify a time frame in which such a decision has to be made.
    • As a result, Speakers of legislatures have sometimes acted very quickly or have delayed the decision for years — and have been accused of political bias in both situations.

    Significant role of the Speaker/Presiding Officer

    • Pandit Nehru had referred to the Speaker as “the symbol of the nation’s freedom and liberty” and emphasized that Speakers should be men of “outstanding ability and impartiality”.
    • Several judgments on the anti-defection law have been rendered by the Supreme Court.
    • A common factor that shows up in these rulings is the blatant, partisan conduct of speakers in state assemblies.

    Reasons for Speakers’ bias

    • The Speaker continues to belong to a particular political party.
    • The electoral system and conventions in India have ‘not been developed to ensure protection to the office, there are cogent reasons for Speakers to retain party membership.
    • It would be unrealistic to expect a speaker to completely abjure all party considerations while functioning.
    • There are structural issues regarding the manner of appointment of the Speaker and her tenure in office.

    Way forward

    • Parliament may seriously consider a Constitutional amendment to bring in a permanent Tribunal for dealing with defection cases.
    • It is suggested that a scheme should be brought wherein Speakers should renounce all political affiliations, membership, and activity once they have been elected.
    • We can learn from the UK model. In practice, once elected, the Speaker gives up all-partisan affiliation, as in other Parliaments of British tradition.
    • He/she remains in office until retirement, even though the majority may change and does not express any political views during debates.

    Conclusion

    • Impartiality, fairness, and autonomy in decision-making are the hallmarks of a robust institution.
    • It is the freedom from interference and pressures which provide the necessary atmosphere where one can work with an absolute commitment to the cause of neutrality as a constitutional value.

     

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  • Shale and its potential in India

    Cairn Oil & Gas has announced that it is partnering US-based Halliburton to start shale exploration in the Lower Barmer Hill formation, Western Rajasthan.

    What is Shale oil?

    • Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution.
    • These processes convert the organic matter within the rock (kerogen) into synthetic oil and gas.
    • The refined products can be used for the same purposes as those derived from crude oil.

     How does it differ from conventional crude oil?

    • The key difference between shale oil and conventional crude is that the former, also called ‘tight oil’, is found in smaller batches, and deeper than conventional crude deposits.
    • Its extraction requires creation of fractures in oil and gas rich shale to release hydrocarbons through a process called hydraulic fracking.

    What is fracking?

    • Fracking is the process of drilling down into the earth before a high-pressure water mixture is directed at the rock to release the gas inside.
    • Water, sand and chemicals are injected into the rock at high pressure which allows the gas to flow out to the head of the well.
    • The process can be carried out vertically or, more commonly, by drilling horizontally to the rock layer, which can create new pathways to release gas or used to extend existing channels.
    • The term fracking refers to how the rock is fractured apart by the high-pressure mixture.

    Shale production in the world

    • Russia and the US are among the largest shale oil producers in the world.
    • With a surge in shale oil production in the US, it has played a key role in turning the country from an importer of crude to a net exporter in 2019.

    Shale reserves in India

    • As per the US EIA 2015 report, India has got technically recoverable shale gas of 96 trillion cubic feet.
    • The recoverable reserves are identified in Cambay, Krishna – Godavari, Cauvery, Damodar Valley, Upper Assam, Pranahita – Godavari, Rajasthan and Vindhya Basins.
    • The ONGC has drilled the first exploratory shale gas well in Jambusar near Vadodara, Gujarat, in Cambay basin during October 2013.

    What are the prospects of shale oil exploration in India?

    • Currently, there is no large-scale commercial production of shale oil and gas in India.
    • Shale oil and gas exploration faces several challenges other than environmental concerns around massive water requirements for fracking and potential for ground water contamination.
    • State-owned ONGC had, in 2013, started exploration and, by the end of FY21, assessed shale oil and gas potential in 25 nomination blocks.
    • But it has reduced investments over the past few years after only getting limited success in shale exploration efforts.

     

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  • What is Cartelization?

    The Competition Commission of India (CCI) has slapped certain penalties on paper manufacturing companies from agricultural waste and recycled wastepaper against Cartelization.

    What is a Cartel?

    • According to CCI, a “Cartel includes an association of producers, sellers, distributors, traders or service providers who, by agreement amongst themselves, limit, control or attempt to control the production, distribution, sale or price of, or, trade in goods or provision of services”.
    • The International Competition Network, which is a global body dedicated to enforcing competition law, has a simpler definition.
    • The three common components of a cartel are:
    1. an agreement
    2. between competitors
    3. to restrict competition

    What is Cartelization?

    • Cartelization is when enterprises collude to fix prices, indulge in bid rigging, or share customers, etc.
    • But when prices are controlled by the government under a law, that is not cartelization.
    • The Competition Act contains strong provisions against cartels.
    • It also has the leniency provision to incentivise a party to a cartel to break away and report to the Commission, and thereby expect total or partial leniency.
    • This has proved a highly effective tool against cartels worldwide.
    • Cartels almost invariably involve secret conspiracies.

    How do they work?

    • According to ICN, four categories of conduct are commonly identified across jurisdictions (countries). These are:
    1. price-fixing
    2. output restrictions
    3. market allocation and
    4. bid-rigging
    • In sum, participants in hard-core cartels agree to insulate themselves from the rigours of a competitive marketplace, substituting cooperation for competition.

    How do cartels hurt?

    • While it may be difficult to accurately quantify the ill-effects of cartels, they not only directly hurt the consumers but also, indirectly, undermine overall economic efficiency and innovations.
    • A successful cartel raises the price above the competitive level and reduces output.
    • Consumers choose either not to pay the higher price for some or all of the cartelized product that they desire, thus forgoing the product, or they pay the cartel price and thereby unknowingly transfer wealth to the cartel operators.

    Are there provisions in the Competition Act against monopolistic prices?

    • There are provisions in the Competition Act against abuse of dominance.
    • One of the abuses is when a dominant enterprise “directly or indirectly imposes unfair or discriminatory prices” in purchase or sale of goods or services.
    • Thus, excessive pricing by a dominant enterprise could, in certain conditions, be regarded as an abuse and, therefore, subject to investigation by the Competition Commission if it were fully functional.
    • However, it should be understood that where pricing is a result of normal supply and demand, the Competition Commission may have no role.

    How might cartels be worse than monopolies?

    • It is generally well understood that monopolies are bad for both individual consumer interest as well as the society at large.
    • That’s because a monopolist completely dominates the concerned market and, more often than not, abuses this dominance either in the form of charging higher than warranted prices or by providing lower than the warranted quality of the good or service in question.

    How to stop the spread of cartelization?

    • Cartels are not easy to detect and identify.
    • As such, experts often suggest providing a strong deterrence to those cartels that are found guilty of being one.
    • Typically this takes the form of a monetary penalty that exceeds the gains amassed by the cartel.
    • However, it must also be pointed out that it is not always easy to ascertain the exact gains from cartelization.
    • In fact, the threat of stringent penalties can be used in conjunction with providing leniency — as was done in the beer case.

    Back2Basics: Competition Commission of India (CCI)

    • The CCI is the chief national competition regulator in India.
    • It is a statutory body within the Ministry of Corporate Affairs.
    • It is responsible for enforcing The Competition Act, 2002 in order to promote competition and prevent activities that have an appreciable adverse effect on competition in India.

     

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  • 19th November 2021| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1    Social Empowerment, Communalism, Regionalism & Secularism.

    GS-2     Executive and Judiciary

    GS-3     Internal Security

    GS-4    Public/Civil Service Values and Ethics in Public Administration: Status and Problems; Ethical Concerns and Dilemmas in Government and Private Institutions; Laws, Rules, Regulations and Conscience as Sources of Ethical Guidance

    Questions:

    Question 1)

     

    Q.1 What do you understand by the term secularism? Discuss how Indian concept of secularism is broader than western concept? (15 Marks)

     

    Question 2)

    Q.2 Highlighting the significance of Fast Track Courts (FTCs) in India, discuss the issues plaguing their functioning. Also, suggest some measures to improve their functioning. (10 Marks)

    Question 3)

    Q.3 Explain how crypto-currencies can emerge as a new vehicle for money laundering or terrorist financing. (10 Marks)

    Question 4)  

    Q.4 How can organizational culture impact public service motivation and sustain values in administration? (10 Marks)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?

    1. Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.

    2. A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.

    3. You can write your answer on an A4 sheet and scan/click pictures of the same.

    4.  Upload the scanned answer in the comment section of the same question.

    5. Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.

    6. If you upload the answer on the same day like the answer of 11th  October is uploaded on 11th October then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis

    7. If you are writing answers late, for example, 11th October is uploaded on 13th October, then these answers will be evaluated as per the mentor’s schedule.

    8. We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Staff so that the mentor is notified about your answer.

    *In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. 

    For the philosophy of AWE and payment: 

  • Q.3 Explain how crypto-currencies can emerge as a new vehicle for money laundering or terrorist financing. (10 Marks)

    Mentor’s Comments-

    • Brief explaining the concept of crypto-currencies, discuss their role as a new vehicle for money laundering or terrorist financing.
    • Discuss various reasons for growing use of crypto currencies for money laundering and terror financing.
    • Conclude accordingly.

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