Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mines and Minerals (Development and Regulation) Act of 1957 (MMDR Act);
Mains level: Design of power between Union and state;
Why in the News?
The Supreme Court delivered a significant 8:1 judgment affirming that State Legislatures have the power to tax mining lands and quarries, independent of the Parliament’s Mines and Minerals (Development and Regulation) Act of 1957 (MMDR Act).
About the verdict given by SC
- Judgment Overview: The majority opinion, authored by Chief Justice D.Y. Chandrachud, stated that states derive their taxing authority from Article 246 and Entry 49 of the State List, which pertains to taxation on lands and buildings.
- Distinction Between Tax and Royalty: The Court clarified that royalty paid for mining leases is not considered a tax.
- Royalty is viewed as a contractual obligation between the mining lessee and the lessor, thus not subject to the same regulatory framework as taxes.
- Parliamentary Limitations: The judgment emphasised that the MMDR Act cannot impose limitations on state taxation powers regarding mines and quarries. The Court rejected the argument that Entry 50 of the State List allowed Parliament to impose restrictions on state taxes related to mineral rights.
- Dissenting Opinion: Justice B.V. Nagarathna provided a dissenting opinion, cautioning that allowing states to tax under Entry 49 could lead to double taxation and undermine the specific provisions of Entry 50.
About the Mines and Minerals (Development and Regulation) Act of 1957
- The MMDR Act was enacted to regulate the mining sector in India, ensuring the development and conservation of minerals while balancing the interests of the state and the public.
- The Act provides a comprehensive framework for the licensing and regulation of mines, including provisions for the fixation of royalties on mineral extraction.
- The Act has been a point of contention regarding the extent of state powers to impose taxes on mineral rights, with arguments that it limits state legislative competence in this area.
- The Supreme Court’s recent ruling clarifies that the MMDR Act does not restrict state powers to tax mineral rights, thus resolving conflicts arising from previous interpretations of the Act.
On the division of the power
- Constitutional Framework: The Constitution of India delineates the distribution of powers between the Centre and the States through the Seventh Schedule, which includes the State List and the Union List.
- Entry 49 and Entry 50: Entry 49 allows states to levy taxes on lands and buildings, while Entry 50 pertains specifically to taxes on mineral rights, subject to limitations imposed by Parliament.
- Judicial Clarity: The Supreme Court’s judgment clarifies that states can exercise their taxing powers under both Entries 49 and 50 without interference from the MMDR Act, reinforcing the states’ authority over local resources.
Conclusion: The Supreme Court’s ruling affirms that states can tax mining lands independently of the MMDR Act, highlighting their authority under Article 246 and Entry 49, despite dissenting concerns about double taxation.
Mains PYQ:
Q Though the federal principle is dominant in our Constitution and that priniciple is one of its basic features, but it is equally true that federalism under the Indian Constitution leans in favour of a strong Centre, a feature that militates against the concept of strong federalism. 15M
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From UPSC perspective, the following things are important :
Prelims level: Legal Frameworks Governing Coal Mining;
Mains level: Factors Contribute to the Persistence of Illegal Coal Mining;
Why in the News?
On July 13, three workers died of asphyxiation inside an illegal coal mine in Gujarat’s Surendranagar district.
How Prevalent is Illegal Coal Mining in India?
- Illegal coal mining has led to multiple fatalities, including recent incidents in Gujarat, Jharkhand, and West Bengal, highlighting its prevalence and dangers.
- There are 10 workers who have died in illegal mining incidents in Gujarat alone this year, showcasing the ongoing risks associated with this activity.
- Illegal mining is often conducted in abandoned mines or shallow coal seams, particularly in remote areas, where monitoring and enforcement of regulations are weak.
What are the Legal Frameworks Governing Coal Mining in India?
- Coal Mines (Nationalisation) Act, 1973: This act nationalized coal mining in India, regulating who can mine coal and under what conditions.
- Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act): This central legislation governs the mining sector, detailing processes for acquiring mining licenses and regulating mining activities. It empowers state governments to frame rules to prevent illegal mining.
- While the MMDR Act provides a framework, the enforcement and regulation of illegal mining fall under state jurisdiction.
Why is the Responsibility for Addressing Illegal Mining Placed on State Governments?
- Law and Order Issue: Illegal mining is categorized as a law and order problem, which is a subject under the State List of the Constitution, making it the responsibility of state governments to address.
- Limited Central Authority: The Union government often shifts the responsibility to state authorities, citing the decentralized nature of governance in matters of local enforcement and regulation.
What Factors Contribute to the Persistence of Illegal Coal Mining?
- High Demand for Coal: With coal accounting for 55% of India’s energy needs, the high demand often exceeds legal supply leading to illegal mining activities.
- Poverty and Unemployment: Many coal-rich areas are home to impoverished populations who resort to illegal mining as a source of livelihood due to limited job opportunities.
- Weak Regulatory Enforcement: Inadequate monitoring and enforcement of mining regulations in remote areas allow illegal mining operations to flourish.
- Political Patronage: Allegations of political leaders’ involvement in illegal mining operations complicate efforts to curb these activities, as seen in various states.
What Safety Risks Do Workers Face?
- Lack of Safety Equipment: Workers often operate without helmets, masks, or other protective gear, significantly increasing their risk of injury or death.
- Hazardous Working Conditions: Illegal mines are typically unregulated, lacking proper structural support, making them vulnerable to cave-ins, landslides, and explosions.
- Toxic Gas Exposure: Miners are at risk of asphyxiation from inhaling toxic gases like carbon monoxide, as evidenced by recent fatalities in Gujarat.
- Continuous exposure to coal dust and hazardous substances can lead to respiratory issues and chronic health conditions, further endangering workers’ health.
Conclusion: Need to implement advanced surveillance technologies, such as drones and satellite imaging, to monitor and detect illegal mining activities in real-time. This can improve the efficiency of enforcement agencies in identifying and responding to illegal operations swiftly.
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From UPSC perspective, the following things are important :
Prelims level: Constitutional provisions related to Municipality ;
Mains level: Functions and challenges of Municipality,
Why in the News?
The Karnataka government has introduced a bill in the state assembly that aims to restructure the Bruhat Bengaluru Mahanagara Palike (BBMP) by dividing it into multiple smaller municipal corporations. This proposal is known as the Greater Bengaluru Governance Bill, 2024.
What is the Greater Bengaluru Governance Bill?
- The Bill aims to restructure the Bruhat Bengaluru Mahanagara Palike (BBMP) into smaller administrative units to improve governance in Bengaluru.
- Drafted by the BBMP Restructuring Committee, the Bill has undergone multiple revisions since its inception in 2014, with the latest modifications presented in June 2024.
- The Bill was tabled in the Karnataka Assembly on July 23, 2024, and is set for discussion among lawmakers, with a sub-committee likely to scrutinize it before further consideration.
Key Highlights of the Draft Bill
- City Corporations: The Bill proposes that the number of city corporations in the Greater Bengaluru Area shall not exceed ten, with indications that it may be split into five units based on specified criteria.
- Governance Structure: A three-tier governance structure will be established, comprising the Greater Bengaluru Authority (GBA) at the top, city corporations in the middle, and ward committees at the bottom.
- Composition of GBA: The GBA will be headed by the Chief Minister and include 21 members, including key ministers and heads of various urban development organizations.
- Criteria for Corporations: City corporations must have a population of at least 10 lakh, a density of over 5,000 people per sq km, and a minimum revenue generation of ₹300 crore annually.
- Ward Distribution: Each city corporation will consist of between 50 to 200 wards, with the current BBMP having 198 wards.
Present Criticism
- The BJP has criticized the Bill as “unscientific,” claiming it threatens the cultural identity of Bengaluru and could lead to administrative chaos.
- BJP leaders have expressed fears that the proposed restructuring could diminish the prominence of the Kannada language in Bengaluru.
- Critics point to the unsuccessful trifurcation of the Municipal Corporation of Delhi in 2012, which was reversed in 2022, as a cautionary tale against such restructuring efforts.
- Concerns have been raised that the Bill may exacerbate economic disparities among the proposed city corporations, with wealthier areas receiving more resources while poorer areas remain underdeveloped.
Way forward:
- Comprehensive Stakeholder Consultation: Before finalizing the Bill, the government should conduct extensive consultations with all stakeholders, including local residents, urban planners, civic organizations, and opposition parties. This will ensure that diverse perspectives are considered, addressing concerns about cultural identity, economic disparities, and administrative efficiency.
- Clear Definition and Criteria: The Bill should include clear definitions of “local areas” and the criteria for determining the boundaries of the proposed city corporations.
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From UPSC perspective, the following things are important :
Prelims level: About Tribal Autonomous Councils;
Mains level: Controversy over the 125th Amendment Bill;
Why in the News?
The Union government will set up a committee led by MoS Home Nityanand Rai to address concerns and expedite the 125th Constitutional Amendment Bill, which aims to empower tribal autonomous councils in northeastern states.
What is the Controversy over the 125th Amendment Bill?
- The Constitution (125th Amendment) Bill, 2019 aims to grant more financial, executive, and administrative powers to tribal autonomous councils under the Sixth Schedule of the Constitution.
- The Bill has faced delays due to unresolved issues between the Union government and the tribal councils, prompting the formation of a committee to address these concerns.
- Tribal leaders argue that the Bill is essential for streamlining administrative systems, ensuring proper resource flow, and enhancing the capacity of councils to implement policies beneficial to their communities.
- The Bill has been pending since its introduction in the Rajya Sabha in February 2019 and has faced scrutiny from the Departmental-Related Standing Committee on Home Affairs, which flagged multiple issues.
What are Tribal Autonomous Councils?
- Tribal autonomous councils are local governance bodies established under the Sixth Schedule of the Constitution to provide autonomy and protect the rights of tribal populations in certain northeastern states of India.
- As of now, there are 10 autonomous councils across Assam, Meghalaya, Mizoram, and Tripura, which have the authority to legislate on matters related to land, public health, and agriculture.
- These councils are intended to empower tribal communities by allowing them to manage their resources and governance independently from state governments.
About the North Eastern Council (NEC) and Its Structural Mandate
- The North Eastern Council (NEC) was established in 1972 as a statutory body to promote the economic and social development of the northeastern states of India.
- The NEC’s primary mandate includes coordinating the planning and implementation of development programs, facilitating inter-state cooperation, and addressing issues specific to the northeastern region.
- The NEC comprises the Chief Ministers of the northeastern states, along with a nominated representative from the central government, ensuring representation from both state and central authorities.
- The Council focuses on various sectors, including infrastructure development, education, health, and cultural preservation, aiming to enhance the overall development of the northeastern states.
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Conclusion: The Union government should initiate a transparent and inclusive consultation process involving all stakeholders, including tribal leaders, local communities, and state governments. This process should aim to address the concerns raised by tribal councils and ensure that their voices are heard in the legislative process.
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From UPSC perspective, the following things are important :
Prelims level: About GM Mustard Crop
Mains level: Significance of GM crops
Why in the news?
A two-judge Bench of the Supreme Court delivered a split verdict on Tuesday, July 23, regarding the “environmental release” of Genetically Modified (GM) mustard.
About GM Mustard Crop
- Development and Approval Process: On September 15, 2015, the Centre for Genetic Manipulation of Crop Plants (CGMCP) at Delhi University sought approval from the Genetic Engineering Appraisal Committee (GEAC) for the environmental release of GM mustard DMH-11.
- Biosafety Dossier: The CGMCP submitted a biosafety dossier to the GEAC, which created a sub-committee to examine its contents. After revisions, the sub-committee submitted its report, inviting comments in September 2016.
- GEAC Recommendations: On May 11, 2017, the GEAC recommended the environmental release of GM mustard, allowing field tests to assess the crop’s effects. However, the Ministry of Environment sent the proposal back for re-examination in March 2018 after receiving several representations.
- Deferred Tests: The GEAC directed the CGMCP to examine the effects of GM mustard on honey bees and soil microbial diversity, but these tests were deferred through 2020-21.
- The GEAC-appointed expert committee found that honeybees do not discriminate between other GM crops such as genetically engineered canola.
What is the case before the Supreme Court?
- Background of the Case: The case arose from challenges by environmentalist Aruna Rodrigues and the organization Gene Campaign against the GEAC’s approval for the environmental release of GM mustard, arguing that the decision violated the precautionary principle and lacked proper scientific scrutiny.
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- Split Verdict: The Supreme Court delivered a split verdict regarding the approval for the environmental release of genetically modified (GM) mustard, specifically the hybrid DMH-11. Justices B.V. Nagarathna and Sanjay Karol had differing opinions on the legality of the Genetic Engineering Appraisal Committee’s (GEAC) decision-making process.
- Justice Nagarathna’s Opinion: Justice Nagarathna held that the GEAC’s approval was flawed and did not follow the necessary procedures, particularly failing to conduct promised field tests. She emphasized that the approval violated public trust and the precautionary principle, which is essential for protecting the environment and public health.
- Justice Karol’s Opinion: In contrast, Justice Karol argued that the GEAC’s decision was valid and aligned with the development of scientific temper. He stated that field trials are necessary to assess the environmental safety of GM mustard and that the decision-making process was independent and reasoned.
- Unanimous Directives: Despite the split decision, both judges agreed on the need for the Union government to formulate a national policy regarding GM crops. This policy should involve consultations with various stakeholders, including experts, farmers, and state governments.
- Case referred to larger bench: The case will be referred to a larger bench for further adjudication due to the differing opinions. The Supreme Court directed that the Ministry of Environment, Forest, and Climate Change (MoEF&CC) should conduct a national consultation within four months to develop this policy.
- Concerns Raised: Justice Nagarathna pointed out that the GEAC did not consider the long-term effects of GM mustard on health and the environment, while Justice Karol noted the importance of conducting field trials under strict safeguards to monitor the crop’s impact.
Conclusion: The Union government should formulate a detailed and inclusive national policy on genetically modified crops. This policy should be based on extensive consultations with experts, farmer representatives, state governments, and other stakeholders to ensure a balanced approach that considers scientific, environmental, and public health perspectives.
Mains PYQ:
Q What are the present challenges before crop diversification? How do emerging technologies provide an opportunity for crop diversification? (2021)
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From UPSC perspective, the following things are important :
Prelims level: Government initiatives related to Employment
Mains level: Significance of recent initiatives in the Budget (2024-2025)
Why in the news?
The 2024-25 Budget is a progressive proposal featuring several commendable initiatives aimed at boosting India’s economic growth and advancing social progress.
Prioritized areas in the recent Budget 2024-25
- Job Creation and Skilling: The budget allocates ₹1.48 lakh crore towards job creation, employment, and skilling, emphasizing the importance of developing a skilled workforce to support India’s service sector. This shift from a focus on manufacturing to skilling reflects a strategic move towards building a service-oriented economy.
- Energy Transformation: There is significant investments are directed towards energy transformation initiatives, including solar panel manufacturing and nuclear energy development. The budget allocates ₹89,287 crore to crucial sectors, indicating a commitment to sustainable energy solutions.
- Healthcare Initiatives: The budget includes measures to enhance healthcare access, such as customs duty exemptions on life-saving cancer medications and components for advanced medical equipment.
- Technology and Innovation: A framework with nine priorities is introduced to leverage advanced technology and foster collaboration between the government and private sector, promoting growth and innovation across various sectors.
- For example: The budget allocates ₹1 lakh crore specifically for research and innovation, accompanied by a 50-year interest-free loan.
What does the budget say on Accessibility and Affordability?
- Customs Duty Exemptions on drugs: The budget exempts customs duties on three essential cancer medications, making them more affordable and accessible to patients. This move addresses the high costs associated with cancer treatments, which often pose significant barriers to access.
- Support for Medical Equipment: Customs duties are also waived for components of X-ray tubes and digital detectors, which are crucial for advanced medical technologies.
- Alignment with Domestic Capacity: The budget emphasizes aligning customs duties with domestic capacity under the phased manufacturing program, fostering a conducive environment for startups and encouraging local manufacturing.
On Prioritizing Inclusivity and Fiscal Prudence
- Women’s Workforce Participation: The budget focuses on boosting women’s participation in the economy through targeted initiatives such as hostels, creches, and skilling programs.
- According to a report by McKinsey, India can increase its 2025 GDP, estimated at $4.83 trillion, by 16%-60% simply by enabling women to participate in the economy on par with men
- Research and Development: With India spending only 0.7% of its GDP on research, the budget encourages private sector collaboration with the government to increase investments in R&D. This collaboration is vital for fostering innovation and ensuring sustainable economic growth.
- Public-Private Partnerships: The budget promotes public-private partnerships to enhance healthcare delivery and infrastructure, reflecting a commitment to inclusivity and collaboration in achieving economic and social goals.
Conclusion: The government should expand the scope of skilling programs to cover a wider range of sectors and skill levels while ensuring the workforce is equipped to meet the evolving demands of the service-oriented economy.
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From UPSC perspective, the following things are important :
Prelims level: Comparision between President and Governor
Mains level: Immunity Under Article 361
Why in the news?
The Supreme Court has agreed to examine if the immunity granted to the President and Governors under Article 361 violates fundamental rights and constitutional principles.
What is the case?
- The Supreme Court is examining a petition filed by a contractual woman employee of the West Bengal Raj Bhavan, who has accused Governor C.V. Ananda Bose of sexual harassment and molestation.
- The petitioner argues that the “absolute immunity” granted to the Governor under Article 361 of the Constitution undermines her fundamental rights and the fairness of the legal process.
Immunity Under Article 361:
- Article 361 provides immunity to the President and Governors from being answerable to any court for acts performed in their official capacity.
- Specifically, clause (2) of Article 361 states that no criminal proceedings can be initiated or continued against the President or a Governor during their term of office. The petitioner contends that this immunity should not apply to illegal acts that violate fundamental rights.
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- The petitioner argues that the Governor’s immunity caused negligent handling of her complaint by police, delaying justice and hindering investigations.
- The Supreme Court will determine if Article 361(2) immunity is absolute or can be challenged in serious cases like sexual harassment.
Does Article 361 Grant Absolution to the Governor against Criminal Charges?
- Scope of Article 361: Article 361 does grant significant immunity to Governors, shielding them from criminal proceedings during their term. However, the immunity is not absolute.
- The first provision allows for the conduct of the President to be reviewed by designated bodies for impeachment, while the second provision allows for civil suits against the government.
- Judicial Precedents: Previous court rulings have indicated that while Governors enjoy immunity under Article 361, this does not prevent judicial scrutiny of their actions, especially if those actions infringe upon fundamental rights.
- For example, in the case of Rameshwar Prasad vs. Union of India, the Supreme Court stated that civil immunity does not preclude challenges based on malafide actions.
- Potential for Legal Challenge: The current case may set a precedent for how Article 361 is interpreted regarding criminal acts committed by Governors.
- If the court finds that immunity does not apply to acts that violate fundamental rights, it could pave the way for accountability and legal recourse for victims of misconduct by constitutional authorities.
Conclusion: The Supreme Court’s interpretation of Article 361 could redefine the immunity of Governors, potentially allowing criminal proceedings for actions violating fundamental rights, thereby ensuring accountability and justice for victims.
Mains PYQ:
Q Discuss the essential conditions for the exercise of the legislative powers by the Governor. Discuss the legality of the re-promulgation of ordinances by the Governor without placing them before the Legislature. (UPSC IAS/2022)
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From UPSC perspective, the following things are important :
Prelims level: About PMJAY
Mains level: Challenges to the Inclusivity of PMJAY
Why in the news?
- With the worst of the COVID-19 pandemic behind us (though the World Health Organization warns the virus still lingers), the Union Budget shifted focus to economic growth levers like infrastructure and employment.
- It was also hoped that recognizing population health as crucial for economic growth would lead to continued investment in strengthening health systems.
| A budget estimate refers to the initial allocation of funds designated for various programs, departments, or projects within a fiscal year. It represents the government’s expectations regarding how much money will be required to meet planned expenditures.
In contrast, revised estimates come into play later in the fiscal year. After assessing the actual expenditures and needs after the first six months, the government may adjust the initial budget estimates based on how much of the allocated funds have been utilised and what additional resources may be necessary. |
Comparisons with Previous Years
- Budgetary Estimates: The comparison of the Budget Estimates (BE) for health between 2023-24 and 2025-25, reveals minimal increases:
- Overall Health Ministry Budget: 1.98% increase
- National Health Mission (NHM): 1.16% increase
- PMJAY: 1.4% increase
- Overall Health Ministry budget: The present allocation made in the current Budget is deemed to be inadequate for expanding health coverage services and enhancing the impact of flagship health programs, particularly in light of rising non-communicable diseases and the goal of universal health coverage by 2030.
- Misleading Comparisons: When we compare the Budget estimates with the previous Revised estimates (RE) the budgetary increase of nearly 12% is misleading, as the RE reflects actual spending rather than the program’s needs.
Missed Opportunities
- Health Workforce Development: While the budget mentioned an increase in new medical colleges, it failed to address the critical need for a multi-layered, multi-skilled health workforce.
- Drug Pricing Mechanisms: Although customs duties were waived on three anti-cancer drugs. However, the budget missed the chance to implement price controls and pooled procurement strategies that could have lowered drug costs across both public and private healthcare sectors. Establishing such mechanisms could enhance the affordability and accessibility of essential medications.
- Climate-Resilient Agriculture: While the budget committed to climate-resilient agriculture, which is crucial for food security, it did not sufficiently link these efforts to health outcomes, such as nutrition and public health, which are critical in the context of rising health challenges.
Challenges to the Inclusivity of PMJAY
- Limited Coverage of Middle Class: PMJAY primarily targets the bottom 40% of the population based on economic status, leaving the middle class without coverage.
- Focus on Secondary and Tertiary Care: The program emphasizes secondary and tertiary healthcare, often neglecting primary care services. This approach limits comprehensive health coverage and fails to address preventive healthcare needs, which are crucial for achieving UHC.
- Awareness and Accessibility Issues: There is a significant disparity in awareness and accessibility of PMJAY across states.
- For example, awareness is notably higher in Tamil Nadu (80%) compared to Bihar (20%).
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Way forward:
- Targeted Funding for Flagship Programs: Need to allocate a more substantial increase in the budget for the National Health Mission (NHM) and Pradhan Mantri Jan Arogya Yojana (PMJAY) to the eradication of non-communicable diseases, tuberculosis elimination by 2025.
- Strengthen Primary Healthcare: Govt. should ensure adequate funding for primary healthcare services, which form the foundation for preventive and community health initiatives.
Mains PYQ:
Q The public health system has limitations in providing universal health coverage. Do you think that the private sector can help in bridging the gap? What other viable alternatives do you suggest? (2015)
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From UPSC perspective, the following things are important :
Prelims level: Schemes related to the social sector;
Mains level: Employment challenges;
Why in the News?
Budget 2024 maintains the same approach as previous years regarding social sector allocations.
Decreasing allocations in the Budget for social sector schemes
- Education Sector: The allocations for school education increased by ₹5,000 crore and for higher education by ₹3,000 crore. The increased recoveries from fees and self-financing schemes suggest a shift towards cost recovery in educational institutions.
- Health Sector: The allocation for the Department of Health and Family Welfare rose by only ₹1,500 crore.
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- Food Subsidy: There is a limited increase in food subsidies despite rising economic costs and the need to update coverage based on the latest population figures.
- Shift in Approach: The government giving greater emphasis on cost-effectiveness and privatization in education and health, shifting focus towards contributory schemes like the Atal Pension Yojana.
Social Sector Schemes in Budget 2024-25
- Social Protection Schemes:
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- POSHAN Scheme: There is a slight increase from ₹11,600 crore to ₹12,467 crore, but still less than the actual expenditure in 2022-23.
- Saksham Anganwadi Scheme: The allocation increased to ₹21,200 crore from ₹20,554 crore, but no increase in salaries for Anganwadi workers or honorarium for mid-day meal cooks.
- Maternity and Social Assistance:
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- Samarthya Scheme: The budget reduced to ₹2,517 crore from ₹2,582 crore. The PMMVY scheme’s maternity benefits have remained unchanged since 2017.
- NSAP: Allocation for social security pensions remains unchanged at ₹9,652 crore, reducing real coverage and value.
Schemes for the Unemployed
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- The ‘Prime Minister’s Package for Employment and Skilling’ includes government-sponsored internships, formalization of jobs through incentives for EPFO enrolments, and skill-development programmes
- An allocation of ₹2 lakh crore over five years for the employment package, linked to industry response
Schemes for Street Vendors
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- The PM SVANidhi Scheme (PM Street Vendor’s AtmaNirbhar Nidhi) aims to benefit over 50 Lakh street vendors across India
- All lending institutions, including NBFCs, are participating in the scheme to provide affordable loans to street vendors
Employment Challenges
- Stagnant Wages and Dampened Demand: The Indian economy faces significant challenges with stagnant wages, which affect consumer demand. This stagnation can hinder overall economic growth and employment generation.
- Reliance on the Private Sector for Job Creation: The government is increasingly looking to the private sector to address employment challenges.
- Initiatives like the ‘Prime Minister’s Package for Employment and Skilling’ aim to incentivize private sector job creation through government-sponsored internships and skill development programs.
- Limited Budgetary Allocations: The budgetary allocations for employment-related schemes are limited, with the entire employment package amounting to ₹2 lakh crore over five years.
- Focus on Supply-Side Solutions: The current approach emphasizes supply-side measures to incentivize the private sector rather than addressing the underlying demand-side issues, such as low consumer spending and economic uncertainty.
Way forward:
- Enhance Social Sector Investments: The government should significantly increase budget allocations for critical social sector schemes, particularly in education, health, and social protection.
- Comprehensive Employment Strategy: Need to develop a holistic approach to employment that addresses both supply and demand-side issues.
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From UPSC perspective, the following things are important :
Prelims level: Data trends in economic survey;
Mains level: Major five issues with the Indian Economy;
Why in the News?
The 2023-24 Economic Survey highlights realistic challenges for India’s growth, projecting GDP growth at 6.5%-7% for FY 2024-25 despite 8% growth in FY 2023-24.
What are the major five issues with the Indian Economy?
- Weak Demand: In India, an unfavourable environment for FDI growth is due to high interest rates in developed countries, which increases the cost and opportunity cost of investment in India.
- Dependence on China: Due to over-reliance on China for imports, particularly in key sectors like renewable energy, limits India’s manufacturing capabilities and increases vulnerability to geopolitical tensions.
- Tepid Private Investment: Despite tax cuts aimed at stimulating capital formation, the corporate sector has not significantly increased investment, leading to a lack of job creation and economic dynamism.
- Employment Challenges: The need to generate approximately 78.5 lakh jobs annually in the non-farm sector until 2030 to accommodate the growing workforce, coupled with insufficient data on job creation, complicates labour market analysis.
- Infrastructure Deficiencies: Inadequate infrastructure, such as roads, railways, and sanitation, continues to hinder economic development and efficiency, requiring substantial investment and reform to improve productivity.
What are the suggestions given in the Economic Survey?
- Private Sector’s Role in Job Creation: The corporate sector should take responsibility for creating jobs, as it is in their enlightened self-interest.
- Embracing Healthy Lifestyle: Indian businesses should learn from India’s traditional lifestyle, food, and recipes to live healthily and in harmony with nature.
- Focusing on Agriculture: The farm sector can generate higher value addition, boost farmers’ income, create opportunities for food processing and exports, and make the sector attractive to urban youth.
- Removing Regulatory Bottlenecks: Licensing, inspection, and compliance requirements imposed by various levels of government are an onerous burden on businesses, especially MSMEs.
- Improving Data Quality: The lack of availability of timely data on the absolute number of jobs created in various sectors precludes an objective analysis of the labour market situation.
Way forward:
- Enhance Infrastructure Development: Need to prioritize investments in essential infrastructure such as roads, railways, and sanitation to boost economic efficiency and productivity.
- Strengthen Data Collection and Analysis: The government should develop robust mechanisms for timely and accurate data collection on employment and other key economic indicators.
Mains PYQ:
Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019)
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From UPSC perspective, the following things are important :
Prelims level: Bordering countries of India;
Mains level: Neighbourhood First Policy;
Why in the News?
The Union Budget presented by Finance Minister Nirmala Sitharaman prioritized India-funded projects in neighbouring countries, receiving the majority of the Ministry of External Affairs’ allocation.
What are the India-funded projects in the neighbourhood?
- India has provided significant aid to Nepal, including funding for hydroelectric power plants like Pardi, Trishuli and Devighat.
- In Afghanistan, India has provided over $3 billion in assistance and was involved in over 400 projects across 34 provinces, including major infrastructure projects like the Salma Dam and the Zaranj-Dalaram Highway.
- In Myanmar, Kaladan Multi-Modal Transit Transport Projects is $484 million project aims to connect the northeastern Indian state of Mizoram to the Sittwe port in Myanmar’s Rakhine state.
- In the 2024-25 budget, India allocated ₹700 crore to Nepal (up from ₹550 crore), ₹245 crore to Sri Lanka (up from ₹150 crore), and ₹30 crore to Seychelles (up from ₹10 crore).
Reasons for reduced focus on Bhutan
- Bhutan, the largest recipient of MEA’s annual allocation, saw a dip in funding by ₹332.02 crore to ₹2,068.56 crore.
- However, this slight reduction does not indicate a decrease in funding for projects in Bhutan, as India and Bhutan recently cleared 61 projects amounting to ₹4,958 crore.
Importance of Bhutan for India:
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- Bhutan shares borders with India and China, acting as a buffer state between the two. Its strategic location is crucial for India’s security interests.
- India has provided assistance to Bhutan in areas like defence, infrastructure, and communication to maintain its sovereignty and territorial integrity.
- During the 2017 Doklam standoff between India and China, Bhutan allowed Indian troops to enter its territory to resist Chinese incursions.
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- India is Bhutan’s largest trading partner, accounting for 98% of its exports and 90% of its imports.
- Bhutan’s hydropower potential is a significant source of revenue, and India has been instrumental in assisting Bhutan in developing these projects.
- India provides substantial economic support to Bhutan. In 2015-16, India’s budgetary support to Bhutan stood at ₹61.60 billion, making it the largest recipient of India’s foreign aid.
- Cultural Ties: Bhutan and India share strong cultural ties, as both countries are predominantly Buddhist
Future scope for India’s Neighbourhood Policy (Way forward)
- Strengthening Bilateral Ties: Need to negotiate free trade agreements, promote investments, and collaborate on infrastructure projects to boost economic ties.
- For example, India and Bangladesh have made significant progress in recent years, with the inauguration of the Maitri Setu bridge connecting Tripura to Bangladesh. The two countries are also working on the Akhaura-Agartala rail link to enhance connectivity.
- Promoting Regional Cooperation: Need to collaborate on regional initiatives such as the BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicles Agreement for seamless movement of goods and people.
- For instance, India has been actively involved in the BIMSTEC Coastal Shipping Agreement and the BIMSTEC Grid Interconnection project to enhance regional connectivity and energy cooperation.
Mains PYQ:
Q Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (UPSC IAS/2016)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Trend in Defence budgeting;
Mains level: Significance of indigenisation in defence sector ;
Why in the News?
Union Finance Minister Nirmala Sitharaman has allocated ₹6.22 lakh crore for the Defence Ministry for 2024-25, matching the amount presented in the interim Budget in February.
Budgetary allocation for different sectors
- Border Roads Organisation (BRO): The BRO received a significant increase in funding, with an allocation of ₹6,500 crore, aimed at improving border infrastructure and promoting socio-economic development in border areas.
- Indian Coast Guard: The allocation for the Indian Coast Guard is ₹7,651.8 crore, which is 6% lower than the revised estimates for FY24. Of this, ₹3,500 crore is designated for capital expenditure to enhance maritime capabilities.
- Innovation in Defence: An additional ₹400 crore has been allocated for innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme, aimed at engaging startups and MSMEs in developing indigenous defence technologies.
- Overall Allocation Breakdown: The allocation for the Defence Ministry includes 27.66% for capital expenditure, 14.82% for revenue expenditure, 30.66% for pay and allowances, 22.7% for defence pensions, and 4.17% for civil organizations under the Defence Ministry.
Marginal Capex Push
- Slight increase in capital expenditure: The budget reflects a marginal increase in capital expenditure, focusing on strengthening the capabilities of the armed forces and enhancing domestic procurement.
- Strategic infrastructure development: The increased allocation to the BRO and the Coast Guard indicates a strategic push towards improving infrastructure in border areas and maritime security, though the overall capital push remains modest.
- Focus on Indigenous solutions: The emphasis on domestic capital procurement and innovation through the iDEX scheme aims to bolster self-reliance in defence technology, fostering a more robust Indigenous defence industry.
- Long-term strategic goals: The allocations are aligned with long-term strategic goals, including enhancing operational preparedness and infrastructure development in sensitive regions, although the overall growth in capital expenditure may be viewed as conservative.
- Balancing defence needs with budget constraints: While the budget seeks to address critical defence needs, the slight reduction in the overall percentage of the budget allocated to defence suggests a balancing act between defence priorities and other pressing social and economic needs.
Way forward:
- Enhance Focus on Indigenous Production: The government should further promote indigenous production capabilities by increasing investments in research and development, and by providing incentives for domestic manufacturers to produce advanced defence technologies.
- Strengthen Infrastructure Development: The need for continued emphasis on infrastructure projects, particularly in border areas, should be prioritized to enhance national security and socio-economic development, ensuring that allocations are effectively utilized for maximum impact.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Constitutional background of Reservation
Why in the News?
The Karnataka State Employment Bill, 2024, proposing private sector reservations for Kannadigas, is on hold after backlash from business and industry leaders.
What Does the Constitution Say?
- Equality of Opportunity (Article 16):
- Article 16(1): Guarantees equality of opportunity in public employment and prohibits discrimination based on race, religion, caste, sex, descent, place of birth, or residence.
- Article 16(3): Allows Parliament to prescribe residence requirements for public office in a specific state or Union Territory, but this power does not extend to state legislatures.
- Freedom of Movement and Residence (Article 19):
- Article 19(1)(d): Ensures the freedom of movement throughout India.
- Article 19(1)(e): Grants the right to reside and settle in any part of India.
- Article 19(1)(g): Protects the right to practice any profession or carry on any occupation, trade, or business.
- Legislative Powers (Article 35):
- Article 35(a): Designates Parliament as the sole authority to make laws concerning residence requirements for employment or appointments to public offices, thereby restricting state legislatures from enacting such laws.
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Why Is the constitutionality of the Karnataka State Employment of local candidates in the Industries, factories and Other Establishments Bill, 2024, being doubted?
- Absence of Provision for Private Sector Reservation: The Constitution does not provide for reservation in the private sector, leading to concerns about the legality of such mandates at the state level.
- Legislative limits on residential criteria: State Assemblies lack the power to prescribe residential criteria for private sector employment, as such powers are reserved for Parliament under Article 35(a).
- Impact on Fundamental Rights:
- The Bill may infringe on citizens’ rights under Article 19(1)(d) and (e), restricting their freedom of movement and right to reside or settle in different states.
- The quota system might violate Article 19(1)(g), impinging on individuals’ freedom to pursue occupations of their choice.
What Is the Status of Similar Laws in Other States Such as Haryana?
- Haryana State Employment of Local Candidates Act, 2020: Mandated 75% reservation in the private sector for jobs with salaries up to ₹30,000. This Act was struck down by the Punjab and Haryana High Court, and the matter is pending before the Supreme Court.
- Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, 2019: Proposed 75% reservation for local candidates and allowed a three-year period for training and engagement. This Act has faced legal challenges and has not been zealously implemented by the government.
- Jharkhand Definition of Local Persons Bill: Initially faced resistance from the Governor over its constitutionality, especially regarding 100% reservation for locals in certain job categories. The bill was re-enacted in December 2023 despite concerns about its constitutionality.
Way forward:
- Inclusive Dialogue: The Karnataka government should engage in comprehensive consultations with all stakeholders, including industry representatives, legal experts, and civil society, to understand their concerns and suggestions.
- Impact Analysis: Need to conduct a detailed socio-economic impact assessment of the proposed reservation policy can provide insights into its potential benefits and drawbacks.
Mains PYQ:
Q The reservation of seats for women in the institutions of local self-government has had a limited impact on the patriarchal character of the Indian Political Process.” Comment. (2019)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bordering states of India with Bangladesh
Mains level: Initiatives related to 'Strengthening Ties and Empowering Governance'
Why in the News?
At least 130 people have died in clashes during student protests over government job quotas in Bangladesh.
Why have students in Bangladesh taken to the streets?
- Opposition to Quota System: Students are protesting against the quota system for government jobs, specifically the 30% reserved for freedom fighters and their descendants, which they believe limits merit-based opportunities.
- Reversal of Quota Reforms: The protests intensified after the Supreme Court restored the quota system, reversing the previous decision to abolish it. Students demand a more balanced and inclusive quota system.
Why Is the 30% quota for Freedom fighters and their descendants an emotive matter for the Awami League?
- Legacy of Sheikh Mujib: The quota system was introduced by Sheikh Mujibur Rahman, and continuing it is seen as fulfilling his legacy and honouring the sacrifices of freedom fighters.
- Political Significance: The Awami League views the quota as a means to reinforce support within the bureaucracy and maintain political loyalty, linking it closely to the party’s historical and ideological narrative.
How did the protests turn violent?
- The violence escalated when Prime Minister Sheikh Hasina labeled protesters as “razakars” or traitors, which enraged students and led to violent clashes with the police and Rapid Action Battalion (RAB).
- The situation deteriorated to the point where the military had to be deployed to control the unrest, further intensifying the violence and confrontation between protesters and authorities.
Have the Quotas Been Misused?
- Allegations of Abuse: There have been claims that the quota system has been misused, with reservations extended to party operatives and not just deserving freedom fighters’ descendants.
- Dilution and Extension: The quota system, initially meant for freedom fighters and war survivors, has been criticized for being extended to broader categories over time, leading to concerns about fairness and effective utilization.
India’s recent Initiatives – ‘Strengthening Ties and Empowering Governance’
- Economic Cooperation: India and Bangladesh agreed to strengthen trade and investment linkages, including the early commencement of negotiations for a Comprehensive Economic Partnership Agreement (CEPA).
- Capacity Building for Civil Servants: India has been providing training and capacity-building programs for Bangladeshi civil servants through the National Centre for Good Governance (NCGG).
- Development Assistance: India is the largest development partner for Bangladesh, having extended approximately $8 billion in Lines of Credit (LOC) over the past eight years for infrastructure development in sectors such as roads, railways, and shipping.
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Way forward:
- Balanced Approach: The Bangladesh government should consider a transparent and balanced quota reform that addresses both merit-based and reservation needs.
- Monitoring and Accountability: Establishing mechanisms to monitor the implementation of quotas and prevent misuse is crucial.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: About UNSC, BRICS and QUAD
Mains level: Importance of BRICS
Why in the News?
Recently, the Quad Foreign Ministers’ meeting in Japan highlighted the UNSC’s paralysis, ongoing violations of international law, and the growing influence of China and an axis of Russia, China, North Korea, and Iran.
Present State of the UNSC:
- Paralysis and Ineffectiveness: The United Nations Security Council (UNSC) is currently paralyzed, unable to effectively address or resolve significant global conflicts. Efforts to reform the UNSC have stalled, leaving it incapable of adapting to contemporary geopolitical realities.
- Impunity in Violations of International Law: International law is being violated with impunity in conflicts such as the Ukraine war and the assault on Gaza by Israel.
- The UNSC’s inability to act decisively has contributed to a growing disregard for its authority and mandates.
Role of India in QUAD:
- Strategic Partnership: India’s involvement in QUAD enhances its strategic partnerships with the other member nations, allowing for collaborative efforts in maritime security, humanitarian assistance, and disaster relief operations.
- Building Indo-In Pacific Policy: One of the primary objectives of QUAD is to mitigate China’s assertive actions in Indo Pacific region.
- India is positioned to take on a leadership role in regional security.
- Economic Collaboration: The QUAD nations are working towards strengthening economic ties, including infrastructure development at ‘Strait of Malacca’ and alternative financing options for Indo-Pacific countries.
- Humanitarian Assistance and Disaster Relief: India has actively engaged in humanitarian efforts, exemplified by its Operation Sanjeevani, which provided medical assistance to several Indo-Pacific nations during the COVID-19 pandemic.
Silverlining on BRICS
- Promoting South-South Cooperation: BRICS represents a significant non-Western global initiative in the post-Cold War era. It can bring together major emerging economies from different parts of the world.
- Amplifying Voices in Global Governance: The BRICS Population is around 40% of the world so the BRICS nations can amplify their voices in global governance and expand their choices of international partners through this grouping.
- Fostering Economic Resilience: Despite the ongoing COVID-19 pandemic, BRICS has emerged as a more effective and efficient institution in fostering economic resilience among its member nations.
- Exploring Alternative Financial Mechanisms: BRICS has taken steps to establish alternative financial mechanisms, such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA).
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- Role BRICS group in G20: The BRICS group has consistently pushed for the inclusion of development issues in the G20 agenda. They argue that the G20 should prioritize the needs of developing countries, particularly in terms of infrastructure investment and social sector support
- Promoting Sustainable Development: The BRICS nations have emphasized the importance of responsible financing for green and sustainable development.
- Initiatives like the NDB’s focus on sustainable infrastructure projects which would help in achieving of SDG Goal 9.
Conclusion: Need to support and advocate for comprehensive reforms of the UNSC to address its paralysis and enhance its effectiveness. This includes expanding permanent membership to better represent contemporary global dynamics and improving decision-making processes to tackle conflicts with greater agility.
Mains PYQ:
Q Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (2020)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: World Economic Forum (WEF) report;
Mains level: Gender-based issues in India;
Why in the news?
The 2024 World Economic Forum (WEF) report on global gender gaps has ranked India at 129 out of 146 economies, marking a decline of two positions from the previous year.
Key Highlights by WEF Report:
- Gender Parity Regression: India’s gender parity levels in educational attainment dipped in the 18th edition of the report, with a score of 0.964, down from a perfect 1.000 in the 17th edition.
- This decline is attributed to a 17.2 percentage point gap between men’s and women’s literacy rates, causing India to rank 124th on this indicator.
- Data Update and Period Variation: WEF’s Insight and Data Lead, Ricky Li, explained that the regression is due to updated data from UNESCO for the 2022 and 2023 periods, contrasting with the data from 2018, 2021, and 2022 used in the previous edition.
- This emphasizes the impact of periodic updates and corresponding periods on the gender parity score.
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What do figures from the Unified District Information System for Education and the All India Survey on Higher Education indicate?
- Overall Enrolment and Gender Ratio: UDISE+ (2021-22) shows that girls constitute 48% of the school population, with enrolment increasing from 46.8% in preschool/kindergarten to 48.3% in higher secondary education.
- Gross Enrolment Ratio (GER) in Higher Education: AISHE (2021-22) reports that the GER for women in higher education is 28.5%, slightly higher than the male GER of 28.3%, indicating a positive trend in female participation in higher education.
- Trends in Female Enrolment: Female enrolment has seen a 32% increase since 2014-15, demonstrating significant progress in higher education, despite challenges such as lower enrolment in STEM fields and regional disparities in secondary education access.
Are girls more likely to complete secondary education when they have access to it?
- Yes, girls are more likely to complete secondary education when they have access to it. The data from UDISE+ (2021-22) shows that while there is a slight drop in the percentage of girls enrolled in secondary education (47.9%), those who do have access to secondary education are more likely to continue to higher secondary education, where the gender gap narrows again to 48.3%.
- This trend indicates that providing access to secondary education facilities helps girls stay in school and complete their education.
What needs to be done to ensure girls and boys, don’t drop out? (Way forward)
- Addressing Socio-Cultural Barriers: Raising awareness about social issues such as early marriage, which disproportionately affects girls, is essential. Collaborating with local authorities and community leaders to advocate for girls’ education can help mitigate these challenges
- Community Involvement: Engaging parents and the community in the educational process can foster a supportive environment for students. This can include parent workshops, support groups, and regular communication about student progress.
- Flexible Learning Options: Offering flexible learning arrangements, such as part-time schooling or distance education, can accommodate students facing economic or personal challenges. This flexibility can help students balance their responsibilities while continuing their education.
- Vocational Training and Skill Development: Incorporating vocational training programs into the school curriculum can equip students with practical skills that increase their employability. This can motivate students to stay in school as they see a direct link between education and future job opportunities
Mains PYQ:
Q Can the vicious cycle of gender inequality, poverty and malnutrition be broken through microfinancing of women SHGs? Explain with examples. (2021)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: How will iCAL work?
Mains level: How are local bodies audited in India?
Why in the news?
On July 18, CAG Girish Chandra Murmu inaugurated the International Centre for Audit of Local Governance (iCAL) in Rajkot, marking India’s first institute to set global standards for auditing local governance.
How will iCAL work?
- iCAL will serve as a platform for policymakers, administrators, and auditors connected with local governments to enhance collaboration and share best practices.
- Objective: It aims to improve the independence and effectiveness of local government auditors through training, leadership development, and capacity-building initiatives.
- Significance: iCAL will act as a think tank for addressing governance issues at the grassroots level through interactive workshops, knowledge-sharing sessions, and peer exchanges.
How are local bodies audited in India?
- India has a three-tier system consisting of the Union government, state governments, and local bodies (both urban and rural).
- Local bodies like Panchayats and Urban Local Bodies (ULBs) are audited by various entities:
- State-level offices like the Examiner of Local Fund Accounts (ELFA)/Director of Local Fund Accounts (DLFA) audit the utilisation of state funds by local bodies.
- CAG conducts audits of all funds at the central and state levels, including those of local bodies. The CAG also advises and supports ELFA/DLFA.
Why was a need felt for it?
- Increased Funding and Need for Proper Auditing: With significant funds flowing to local bodies, there is a pressing need for improved auditing practices to ensure proper utilisation and financial management.
- Global Practices and Collaboration: There is a need to promote global good practices and institutionalised collaboration among supreme audit institutions (SAIs) to enhance local government audit practices and share best practices.
- Addressing Inefficiencies: Concerns have been raised about inefficiencies in local body financial management and reporting, as highlighted by the Reserve Bank of India’s 2022 report. iCAL aims to address these inefficiencies through better auditing practices and capacity building.
Way forward:
- Expand Capacity Building and Training Programs: Enhance iCAL’s focus on training and capacity-building for auditors and local government officials.
- Foster International Collaboration and Knowledge Sharing: Strengthen partnerships with global audit institutions and engage in knowledge exchange initiatives.
Mains PYQ:
Q In the absence of well – educated and organised local-level government systems, Panchayats and Samitis have remained mainly political institutions and not effective instruments of governance. Critically Discuss. (UPSC IAS/2015)
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From UPSC perspective, the following things are important :
Prelims level: Indemnity-based Insurance Products and Parametric insurance
Mains level: Limitation of Parametric insurance
Why in the news?
In 2023, natural disaster losses hit $280 billion, with only $100 billion insured, highlighting a need for innovative insurance solutions amid rising extreme weather events.
Present Method of Disaster Risk Reduction
- Indemnity-based Insurance Products: Indemnity-based insurance products require a physical assessment of damage after a disaster to determine the payout amount. For example Health Insurance, Motor Insurance and Travel Insurance.
Challenges:
- Verification Issues: When large-scale calamities strike, especially in economically disadvantaged areas, it is difficult to verify losses due to the lack of records and widespread destruction.
- Delays in Payouts: The need for physical assessment can cause delays in providing financial assistance to the affected individuals and communities.
- Insurance Gap: There is a significant gap in insurance coverage between developed and developing economies, leaving many vulnerable populations without adequate protection.
Changing course and the associated limitations:
- Parametric insurance: Payments are made based on predefined parameters of weather events (e.g., rainfall exceeding 100 mm per day for two consecutive days, specific flood levels, wind speed).The payouts are made without the need for physical assessment of losses, enabling quicker disbursements.
Examples:
- Disaster-prone Island Countries: Many have adopted parametric insurance for climate adaptation, moving away from risk retention models. For example, Fiji launched its first parametric insurance product in 2021
- Morocco received $275 million in parametric insurance after a 6.8 magnitude earthquake, arranged with the help of the World Bank.
- India has initiated crop insurance (e.g., Pradhan Mantri Fasal Bima Yojana and the Restructured Weather Based Crop Insurance Scheme).
Associated Limitations
- Current Focus: Primarily used for low-frequency, high-impact disasters like earthquakes, cyclones, and hurricanes.
- Data and Infrastructure Requirements: There is challenges related to developing and maintaining the necessary infrastructure for data collection and monitoring can be challenging, especially in developing regions.
- Affordability and Accessibility issues: It demands high premiums can still be a barrier for economically disadvantaged communities.
Case Study of Nagaland:
- Nagaland was the first state in India to buy parametric cover for extreme precipitation in 2021.
- Based on lessons learned, it improved the product by fixing an absolute annual premium, duration, and rate online, allowing bidders to compete over lower threshold limits and maximized payouts.
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What can be done to ensure effectiveness? (Way Forward)
- Precise Thresholds and Robust Monitoring: Establish clear, accurate parameters for insurance triggers and implement reliable monitoring systems to track these parameters effectively.
- Transparent Bidding and Experience Sharing: Follow a transparent bidding process for price discovery and facilitate the exchange of best practices and lessons learned between governments.
- Widespread Payout Systems and Household Premium Support: Develop comprehensive systems for distributing payouts and promote long-term premium payment by households, leveraging tools like Aadhaar-based payment dissemination.
Mains PYQ:
Q Describe various measures taken in India for Disaster Risk Reduction (DRR) before and after signing ‘Sendai Framework for DRR (2015-2030)’. How is this framework different from ‘Hyogo Framework for Action, 2005’? (UPSC IAS/2018)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Green Revolution
Mains level: Present India’s Maize Production
Why in the news?
Over the past two decades, India’s maize production has more than tripled, emerging as a private sector-driven green revolution success story. Maize has transitioned from being primarily a feed crop to also serving as a fuel crop.
What was the Green Revolution?
- Began in 1968 with the introduction of high-yielding variety (HYV) seeds, especially for wheat and rice, developed by agronomist Norman Borlaug
- Institutions like CIMMYT (International Maize and Wheat Improvement Center) and IARI (Indian Agricultural Research Institute), led by scientists like Norman Borlaug and M S Swaminathan, played a crucial role.
- The Green Revolution is credited to M.S. Swaminathan, known as the “Father of the Indian Green Revolution”, who introduced Borlaug’s wheat varieties and other technologies.
- The initiative focused on increasing agricultural productivity through advanced breeding techniques, fertilizers, and irrigation methods.
- Wheat production increased from 12 million tons in 1964-65 to 20 million tons in 1970-71.India became self-sufficient in food grain production and a major exporter
Present India’s Maize Production called as a Green Revolution in Maize
- Significant Production Increase: Over the last two decades, India’s maize production has surged from 11.5 million tonnes in 1999-2000 to over 35 million tonnes in 2023-24, showcasing a remarkable increase in both yield and output.
- Private Sector Leadership: This growth has been largely driven by the private sector, with more than 80% of the maize area planted with high-yielding hybrids developed by private seed companies, indicating a successful private sector-led green revolution.
- Diverse Utilization: Maize in India has evolved from being primarily a feed crop for poultry and livestock to also being a vital industrial crop used for starch and ethanol production, reflecting its expanded role in the economy.
On Starch and Ethanol Production
- Maize contains 68-72% starch, with significant industrial applications in textiles, paper, pharmaceuticals, food, and beverages.
- Maize is emerging as a key feedstock for ethanol production, especially for blending with petrol.
- IARI has developed a waxy maize hybrid with high amylopectin content, enhancing its suitability for ethanol production.
- The new Pusa Waxy Maize Hybrid-1 has 71-72% starch with 68-70% recoverable, increasing ethanol yield per tonne.
Can India adopt new strategies? (Way forward)
- India can adopt new strategies through innovative breeding techniques like the doubled haploid (DH) technology used by CIMMYT.
- The DH facility in Karnataka speeds up the development of genetically pure inbred lines, enhancing the efficiency of maize breeding.
- IARI’s waxy maize hybrid is ready for field trials and commercial release, potentially boosting ethanol production.
- Collaboration between public sector institutions and private seed companies can drive the adoption of high-yielding, disease-resistant maize varieties.
- Private sector-bred hybrids account for over 80% of India’s maize area, indicating strong potential for further growth and innovation in maize production.
Mains PYQ:
Q Explain various types of revolutions, that took place in Agriculture after Independence in India. How these revolutions have helped in poverty alleviation and food security in India? (UPSC IAS/2017)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Paris Agreement
Mains level: Bilateral Ties between India and Japan related to climate change
Why in the news?
India is set to establish a Joint Crediting Mechanism (JCM) with Japan for carbon trading and emission-reduction credits.
Memorandum of Cooperation for Setting Up a Joint Crediting Mechanism (JCM)
- Objective and Framework: India and Japan plan to sign a Memorandum of Cooperation to establish a Joint Crediting Mechanism (JCM) for sharing emission-reduction credits. The JCM will involve a structured allocation of carbon credits and maintain a registry to track these credits, with projects needing clearance from a Joint Committee.
- Implementation and Oversight: The mechanism will be governed under Article 6.2 of the Paris Agreement, adhering to relevant domestic laws and regulations of both countries. A Joint Committee will develop rules, manage project cycles, and oversee monitoring and issuance of credits.
Emission Cuts
- Credit Allocation: Credits issued under the JCM will contribute to both Japan’s and India’s Nationally Determined Contributions (NDCs) under the Paris Agreement. The JCM will avoid double counting of credits and may authorize some credits for international mitigation purposes.
- Technology Transfer and Capacity Building: Japan will support technology transfer, finance, and capacity building to enhance the effectiveness of the JCM and facilitate the adoption of new technologies.
Significance of JCM:
- Increased Access to Clean Technologies: The JCM will facilitate the transfer of advanced decarbonizing technologies from Japan to India, such as renewable energy systems, energy-efficient appliances, and waste management solutions.
- Job Creation and Skill Development: The implementation of JCM projects will create new employment opportunities in sectors like renewable energy, energy efficiency, and waste management
Bilateral ties between India and Japan
- Strategic Partnership: The JCM will strengthen bilateral ties between India and Japan by fostering collaboration on low-carbon technologies and climate action, aimed at boosting job creation and investments in clean technologies.
- Clean Energy Partnership: It was launched in March 2022, the India-Japan Clean Energy Partnership (CEP) aims to enhance cooperation in sustainable energy transitions to achieve net-zero emissions by 2070.
- Investment Commitments: During the 14th India-Japan Annual Summit in March 2022, both nations agreed on a target of $42 billion (JPY 5 trillion) in public and private investment from Japan to India over the next five years
- Low Carbon Emission Strategies: A $600 million fund was established to focus on environmental sustainability and low carbon emission strategies. This initiative is part of a broader effort to enhance Japanese investments in India while addressing climate change.
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Way forward:
- Prioritize the adoption of cutting-edge decarbonizing technologies: Japan should prioritize the transfer of its most advanced low-carbon technologies to India, such as renewable energy systems, energy-efficient appliances, and carbon capture and storage solutions.
- Expand the scope of the JCM to include other areas of climate cooperation: While the initial focus of the JCM should be on emission reduction projects, India and Japan could explore expanding its scope to include other areas of climate cooperation, such as adaptation measures, climate finance, and capacity building.
Mains PYQ:
Q Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (UPSC IAS/2022)
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