Type: Explained

These Newscards correspond to the explained section of various newspapers. They become immensely important for both prelims and mains and special attention needs to be paid to them

Bills/Act/LawsDOMREthicsExplainedHistorical SitesIOCRop-ed snapPIBPlaces in newsPrelims OnlySC JudgementsSchemesSpeciesStatesworld map

Corruption Challenges – Lokpal, POCA, etc

Why Centre filed an application to modify 2G spectrum scam judgement

Explained | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Spectrum

Mains level: What is the 2G scam case?

Why in the news? 

Attorney General R Venkataramani, on April 22, mentioned an application filed by the Centre to modify the Supreme Court’s 2012 judgement in the 2G spectrum scam case.

What is the 2G scam case?

  • In 2008, under then Telecom Minister A Raja, the Department of Telecommunications (DoT) issued 2G spectrum licenses to specific telecom operators on a first-cum-first-serve basis.
  • In 2009 ,the Central Vigilance Commission directed the CBI to investigate claims that there were illegalities in the allocation of licenses, following which the CBI filed a first information report against unknown officers of the DoT, private persons and companies.
  • In the meantime, the Centre for Public Interest Litigation and Subramanian Swamy filed petitions at the Supreme Court alleging a Rs 70,000 crore scam in the grant of telecom licenses in 2008.
  • In 2010, the Comptroller and Auditor General of India (CAG) filed a report claiming that the allocation had caused a loss of Rs 1.76 lakh crores to the public exchequer. Raja resigned shortly after.
  • In 2011 the CBI filed its first chargesheet, in which Raja was an accused.
  • In February 2012, the Supreme Court cancelled the 122 licenses granted during Raja’s tenure. The court found that Raja had allocated licenses in 2008 based on 2001 prices in order to benefit specific private telecom operators.

Why is the Centre seeking a modification of the apex court’s decision?

  • Need for Non-commercial Use: The Centre highlights that spectrum allocation is essential not only for commercial telecommunication services but also for public interest functions such as security, safety, and disaster preparedness. These functions may not always align with the profit-oriented nature of auction processes.
  • Situational Preferences: The Centre argues that there are situations where auctions are not technically or economically preferred or optimal. This could include scenarios where there is a one-time or sporadic use of spectrum, which may not justify the complexities and costs associated with conducting auctions.
  • Court’s Clarification on Auctions: The Centre refers to the Supreme Court’s clarification in September 2012, stating that the auction method prescribed in 2012 was not a constitutional principle and not an absolute or blanket statement applicable across all natural resources. The Court expressed respect for the executive’s discretion in such matters.
  • Seeking Clarity for Administrative Process: In light of the Court’s clarification, the Centre seeks clarity on whether it can allocate 2G spectrum in the future through an administrative process if determined through due process and in accordance with the law. This indicates a desire for flexibility in spectrum allocation methods based on situational considerations and public interest needs.

Conclusion: 

Need to implement transparent processes for the allocation of public resources such as spectrum. Clearly outline the criteria, procedures, and timelines for allocation, and ensure that these are accessible to all stakeholders.Establish independent oversight bodies or regulatory agencies to monitor and audit the allocation process.

Mains PYQ:

Q What is mean by public interest? What are the principles and procedures to be followed by the civil servants in public interest? (UPSC IAS/2018)

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RBI Notifications

RBI’s latest recommendations to regulate payment aggregators in offline spaces | Explained

Explained | Economics | Mains Paper 3: Indian Economy
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Payment aggregators

Mains level: What exactly are the norms about?

Why in the news?

The Reserve Bank of India (RBI) has floated two consultation papers seeking enhanced regulation of payment aggregators carrying out face-to-face transactions. It also seeks to strengthen the ecosystem’s safety.

What is Payment Aggregators?

  • A payment aggregator is a payment solution or a platform provider that aggregates various payment modes such cards, UPI, net-banking, wallets and alternate credit products by partnering with various processing entities such as acquiring banks, direct banks (in case of net banking) and issuers of wallets and alt credit products on to a single platform.

What exactly are the norms about?  

  • Extension to Offline Transactions: The existing guidelines for payment aggregators cover their activities in e-commerce and online platforms. The latest draft proposes extending these regulations to offline spaces, including proximity or face-to-face transactions.
  • Convergence on Standards: The proposed norms aim to achieve convergence on standards of data collection and storage across online and offline transactions handled by payment aggregators.
  • Elaborate Guidelines: The proposed norms are detailed and comprehensive, reflecting lessons learned from incidents such as the Paytm Payments Bank crisis.
  • Strengthening Ecosystem: RBI’s objective seems to be strengthening the payment aggregator ecosystem against opacity and ensuring compliance with regulatory standards.
  • Penalties for Non-Compliance: The Financial Intelligence Unit (FIU-IND) imposed penalties on Paytm Payments Bank for engaging in illegal activities and failing to adhere to regulatory requirements, indicating strict consequences for non-compliance with the proposed norms.

Is registration with the RBI being made compulsory?  

The primary focus of this guidlines is on non-bank PAs and within them, the offline extensions.

  • PA based on Bank: Banks providing physical PA services as part of their normal banking relationship would not require any separate authorisation from the RBI. They are only expected to comply with the revised instructions within three months after they are issued.
  • PA without Banking: Non-banking entities providing PA services at the point of sale (PoS), that is, offline, would have to inform RBI within 60 days (after the circular is issued), about their intent to seek authorisation.

Does it talk about provisions for sustainability?  

  • Minimum net worth aims to ensure the sustainability of non-banking entities: While the proposed norms primarily focus on regulatory compliance and financial stability, the requirement for a minimum net worth aims to ensure the sustainability of non-banking entities providing proximity/face-to-face transaction services. This is because entities with a stronger financial base are better positioned to weather economic challenges and uncertainties, thus promoting sustainability in the long run.
  • Risk-Based Payments: Payment aggregators are required to assign risk-based payments to merchants, focusing on sustainability. This involves assessing the risk associated with each merchant and adjusting payment terms accordingly.

What about KYC requirements?  

  • Extended Scope of KYC: The proposed regulations aim to extend the scope of Know Your Customer (KYC) requirements for merchants onboarded by payment aggregators. While KYC is already mandatory, the regulations seek to make the provisions more nuanced.
  • Document Verification for Medium Merchants: Medium merchants, with a higher annual turnover threshold, must undergo additional document verification. Payment aggregators are expected to verify one official document each of the proprietor, beneficial owner or attorney holder, and the stated business.
  • Ongoing Compliance Monitoring: Payment aggregators must ensure that transactions undertaken by their merchants are in line with their business profiles. This involves ongoing monitoring to ensure compliance with KYC requirements and business activities.

Conclusion: 

The proposed norms aim to achieve convergence on standards of data collection and storage across both online and offline transactions handled by payment aggregators. This helps in streamlining regulatory requirements and ensuring consistency in data management practices.

Mains PYQ 

Q  How can the Digital India program help farmers to improve farm productivity and income? What step has the government taken in this regard? (UPSC IAS/2015)

With Inputs from:

https://www.thehindu.com/business/rbi-clampdown-on-lenders-could-moderate-credit-growth-in-2024-25/article67994838.ece

https://www.thehindu.com/business/Industry/rbi-to-introduce-offline-erupee-transactions-soon-shaktikanta-das/article67824286.ece

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Judicial Appointments Conundrum Post-NJAC Verdict

SC declines plea against Collegium system to protect public’s best interest

Explained | Polity | Mains Paper 2: Executive & Judiciary
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Registrar of supreme court

Mains level: Collegium system

Why in the news? 

The petition, filed by advocate Mathews Nedumpara, seeks a revival of the NJAC. SC Registrar says the issue is already settled, and a repeat litigation is a “needless waste of judicial time and energy”

What is the Registrar of supreme court?

  • The registrar is a chief executive officer of a judicial forum. They are in charge of the entire registry of the department.

What is NJAC (National Judicial Appointments Commission)? 

  • In August 2014, Parliament passed the Constitution (99th Amendment) Act, 2014 along with the National Judicial Appointments Commission (NJAC) Act, 2014, providing for the creation of an independent commission to appoint judges to the Supreme Court and high courts.
  • In 2015, Supreme Court struck down the National Judicial Appointments Commission (NJAC) and the 99th Amendment

Actually, Collegium system is used for the appointment of SC Judges 

First Judges Case (1981): 

  • Also known as S.P. Gupta case (December 30, 1981), the Supreme Court held that consultation does not mean concurrence and it only implies exchange of views
  • It declared that the “primacy” of the Chief Justice of India (CJI)s recommendation on judicial appointments and transfers can be refused for “cogent reasons.”
  • The ruling gave the Executive primacy over the Judiciary in judicial appointments.

Second Judges Case (1993):

  • SC reversed its earlier ruling and changed the meaning of the word consultation to concurrence.
  • Hence, it ruled that the advice tendered by the Chief Justice of India is binding on the President in the matters of appointment of the judges of the Supreme Court.
  • But, the Chief Justice would tender his advice on the matter after consulting two of his senior most colleagues (this was considered as Collegium)
  • The collegium can veto the government if the names are sent back by the latter for reconsideration.
  • The basic tenet behind the collegium system is that the judiciary should have primacy over the government in matters of appointments and transfers in order to remain independent.
  • The opinions of each member of the Collegium and other judges consulted should be made in writing and form part of the file on the candidate sent to the government.
  • Thus, the executive element in the appointment process was reduced to a minimum.
  • If the CJI had consulted non-judges, he should make a memorandum containing the substance of consultation, which would also be part of the file. After the receipt of the Collegium recommendation, the Law Minister would forward it to the Prime Minister, who would advise the President in the matter of appointment.

Third Judges Case (1998):

  • SC on President’s reference expanded the Collegium to a five-member body, comprising the CJI and four of his senior-most colleagues while HC collegium is led by its Chief Justice and four other senior most judges of that court.
  • Names recommended for appointment by a HC collegium reaches the government only after approval by the CJI and the SC collegium.

Conclusion: 

The primary argument against the NJAC was that it could potentially undermine judicial independence by giving the executive a significant role in judicial appointments. Any alternative system, including a revised version of the NJAC, would need to ensure that judicial independence is safeguarded.

Mains PYQ 

Q Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to appointment of judges of higher judiciary in India.

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Air Pollution

On the National Clean Air Programme | Explained

Explained | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia
Note4Students

From UPSC perspective, the following things are important :

Prelims level: National Clean Air Programme (NCAP)

Mains level: Key features of NCAP

Why in the news? 

When the Indian government launched the National Clean Air Programme (NCAP) in 2019, it’s target was to cut the concentration of atmospheric Particulate Matter (PM) by 20-30% by 2024, from 2017 levels. This was later revised to 40% by 2026.

What is the NCAP?

  • The National Clean Air Programme (NCAP) was launched in India in January 2019 by the Ministry of Environment, Forest and Climate Change (MoEFCC)
  • The NCAP aims to achieve reductions in PM10 levels through various measures.

What is PM10? 

  • PM 10, also known as particulate matter with an aerodynamic diameter of less than 10 micrometers.
  • PM 10 particles can irritate the eyes, nose, and throat, and prolonged exposure to high levels of PM 10 can lead to serious health problems, including respiratory issues, cardiovascular disease, and even premature death.

Key features of NCAP (Note: asked in UPSC 2020 mains)

  • Target: Achieving 20% to 30% reduction target in Particulate Matter (PM10 and PM2.5) concentrations by 2024, where 2017 is kept as the base year for the comparison of concentration. But it has been revised to 40% by 2026.
  • Cities based on air quality:Identification of 122 non-attainment cities across the country based on the 2014-2018 Air Quality data.
  • City specific plans: Preparation of city-specific action plans, including measures to strengthen the monitoring network, reduce vehicular/industrial emissions, and increase public awareness.
  • Coordination between centre, state and local: Facilitating collaborative, multi-scale, and cross-sectoral coordination between the relevant central ministries, state governments, and local bodies.
  • Right mix with exixting policies: Establishing a right mix with the existing policies and programs, including the National Action Plan on Climate Change (NAPCC) and other government initiatives related to climate change.
  • Changes as per additional scientific information: Constant change, activity, and progress to get evolved based on the additional scientific and technical information as they emerge.
  • Monitoring station: Increasing the number of monitoring stations in the country, including rural monitoring stations, technology support, and data analysis.
  • Awareness and capicity building: Emphasis on awareness and capacity building initiatives, including public awareness campaigns, training programs, and research and development activities.

 Challenges related to NCAP 

  • Lack of fund Utilization: On average, only 60% of the allocated funds have been utilized so far, with 27% of cities spending less than 30% of their designated budgets. Notably, Visakhapatnam and Bengaluru have spent 0% and 1% of their NCAP funds, respectively.
  • Implementation Delays: Delays in implementing CAAPs are attributed to various factors, including bureaucratic hurdles such as delays in approvals from competent authorities and the absence of standard operating procedures.
  • Technical Challenges: Technical challenges, such as defining technical specifications for tendering processes and procuring necessary equipment like mechanical sweepers and electric buses, contribute to implementation delays.

How scientific tool can help?

  • Emissions Inventory (EI): EIs provide crucial insights into local pollution sources and their contributions, aiding in forecasting future emissions and shaping targeted pollution control strategies. 
  • Source Apportionment (SA) Studies: SA studies offer detailed analyses of contributions from various pollution sources, including distant ones.
  • Role of Air Quality (AQ) Modelling: AQ modelling helps in understanding pollution dispersion, including from distant sources.
  • Role of EI, SA and AQ: Combining EI, SA studies, and AQ modelling allows for a comprehensive understanding of pollution sources, their contributions, and dispersion patterns.

Conclusion: 

Implement stricter monitoring mechanisms to ensure timely and efficient fund utilization. Regular audits and reviews can help identify underutilization and take corrective actions promptly.

Mains PYQ

Q What are the key features of the National Clean Air Programme (NCAP) initiated by the government of India? (UPSC IAS/2020)

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The Crisis In The Middle East

Tensions grow in West Asia, a heavily militarised region

ExplainedIOCR | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Map of West Asia

Mains level: Reason behind the west Asia is a heavily militarised region

Why in the news? 

According to the Stockholm International Peace Research Institute’s ‘Trends in International Arms Transfers 2023’, four of the top 10 largest importers of arms last year were from West Asia, with the U.S. being the main supplier

SIPRI Report: Trends in International Arms Transfers, 2023

  • India’s Arms Imports: Increased by 4.7% compared to 2014-18.
  • European Arms Imports: Saw a staggering 94% increase between 2014-18 and 2019-23, likely influenced by the Russia-Ukraine conflict.
  • Russia-India Arms Trade: Russia remained India’s largest arms supplier, accounting for 36% of total imports.
  • Top Global Importers: India, Saudi Arabia, and Qatar emerged as the top three importers globally.
  • Ukraine’s Arms Imports: Became the fourth largest arms importer during the specified period.
  • China-Pakistan Arms Trade: Pakistan, the fifth largest arms importer, obtained 82% of its arms from China.
  • France’s Arms Exports: Emerged as the world’s second-largest arms supplier, after the United States.
  • French Arms Exports to India: India was highlighted as the largest single recipient of French arms exports.

 

West Asia has largest expenditure in Defence as per GDP %

Reason behind the west Asia is heavily militarised region:

  • Regional Conflicts and Tensions: The region is characterized by ongoing conflicts and tensions, such as those in Yemen and Syria, leading countries to seek advanced weaponry to address security challenges
  • Oil Boom: The oil boom in West Asia has led to increased military spending as countries seek to protect their oil resources and maintain regional stability
  • Internal Factors: The presence of Western arms and personnel in some Persian Gulf countries has contributed to internal resurgences, leading states to invest in military capabilities for self-defense
  • Diversification of Arms Suppliers: West Asian states have adopted the principle of diversifying sources of arms supply, leading to a broader range of arms imports from various suppliers globally
  • Client-Supplier Relationship: The relationship between client states and arms suppliers is often favorable to the recipient, with the recipient receiving the arms they wish and the supplier bowing to their demands
  • Regional Disputes and Border Skirmishes: Border disputes, threats, and wars have made it imperative for West Asian states to resort to modern and efficient national defense systems like conflict between Iran and Israel

Conclusion: 

Encourage diplomatic efforts to resolve regional conflicts and tensions through dialogue and negotiation, aiming to reduce the need for excessive military spending. Advocate for the establishment of regional arms control agreements to limit the proliferation of weapons and promote stability in the West Asia region.

Mains PYQ 

Q How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics?

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Swachh Bharat Mission

The reality of the Swachh Bharat Mission

Explained | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Agricultural subsidies; Policies and Programs by government;

Mains level: Key challenges related to Swachh Bharat Mission

Why in the news? 

India was ranked right at the bottom of 180 countries in the Environment Performance Index (EPI) in 2022. The EPI ranks countries on climate change performance, environmental health, and ecosystem vitality.

Swachh Bharat Abhiyan

  • It is also known as the Clean India Mission, is a significant campaign initiated by the Government of India on October 2, 2014,
  • It is primarily aimed at eliminating open defecation, improving solid waste management, and promoting cleanliness across the country.

Key challenges related to Swachh Bharat Mission

  • Poor Quality of Infrastructure: Reports suggest inadequate construction quality of toilets under the Swachh Bharat Mission (SBM), raising questions about the effectiveness of the initiative.
  • Inadequate Access to Sanitation Facilities: Despite government claims, communities in slums and peri-urban areas still lack access to public toilets, contributing to sanitation challenges.
  • Lack of Waste Treatment: Toilet construction in rural areas is not linked to waste treatment, leading to improper disposal of faecal sludge and environmental contamination.
  • Ineffective Waste Management Technologies: Large, capital-intensive waste management technologies have failed to meet expectations, resulting in health crises and the need for additional resources to fix them.
  • Privatization of Public Health Services: The outsourcing of sanitation work to private contractors, often employing subjugated communities, has led to the privatization of public health services and perpetuated caste discrimination.
  • Insufficient Human Resources: Shortage of sanitation inspectors and inadequacy in recruitment efforts hinder effective monitoring and management of sanitation programs at the local level.

Way forward

  • Enhanced Quality Assurance: Implement stricter quality control measures to ensure the construction of toilets meets prescribed standards. Regular inspections and audits can help identify and rectify any construction deficiencies.
  • Targeted Infrastructure Development: Prioritize the construction of public toilets in slums and peri-urban areas to improve access to sanitation facilities for marginalized communities.
  • Integrated Waste Management: Integrate toilet construction with waste treatment facilities in rural areas to ensure proper disposal of faecal sludge.

Mains PYQ 

Q What are the impediments in disposing the huge quantities of discarded solid wastes which are continuously being generated? How do we remove safely the toxic wastes that have been accumulating in our habitable environment? (UPSC IAS/2018)

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Minimum Support Prices for Agricultural Produce

PREMIUM – Subsidies – Good or Bad for India?

Explained | Economics | Mains Paper 3: Agriculture and related issues,Major Crops & Cropping Patterns,PDS, Buffer Stock & Food Security
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Agricultural subsidies; Policies and Programs by government;

Mains level: Issue of Subsidies in India; Policies and Programs by Government;

Why in the News? 

Issues have been raised by the World Trade Organization (WTO) concerning Agricultural Subsidies in India. Major subsidies in India are on fertilizer, power, credit, output, seed, and export products.

What is Subsidy?

  • The term subsidy refers to financial assistance in the form of discounts or monetary grants by the Central government to public entities or private institutions. 
  • The objective is to make the products offered by these institutions affordable for public consumption. 
  • The subsidized products are necessary for the larger public good and are a means of supporting the community’s welfare.

 

Historical Background

  • Post-Independence Era (1947 onwards): The government introduced various subsidies to promote industrialization, agriculture, and social welfare, aiming to reduce poverty and achieve self-sufficiency in key sectors.
  • Green Revolution (1960s): During the 1960s and 1970s, Subsidies on fertilizers, seeds, and credit were provided to farmers to encourage the adoption of new agricultural technologies and boost food production.
  • Liberalization Reforms (1991):  While liberalization led to a reduction in some subsidies and a shift towards market-oriented policies, the government continued to provide support to sectors deemed crucial for social welfare and economic development.

Types of Subsidies:

  • Food subsidy: The food subsidy’s main objective is to provide essential eatables to a large section of the population living below the poverty line in India. 
    • The major food items supplied to the BPL families (by PDS system) vary as per the region, it includes – Wheat, Rice, Sugar, Milk, Cooking oil, and more.
  • Education subsidy: The Central government extends the education subsidy to eligible students to pursue higher technical and professional education.
  • Export subsidy: To make exports attractive and lend support to the companies, the government offers export subsidies. 
  • Fertilizer subsidy: The fertilizer is provided at a fixed MRP that is below the actual price; the government pays the difference between the actual coat and the MRP.

(Note: There are various types of subsidies but UPSC usually asks for Agriculture subsidies) 

Subsidies in Agriculture:

Direct Subsidies: 

  • Credit Subsidies: Subsidized credit programs offer farmers loans at lower interest rates or with relaxed repayment terms to finance agricultural activities, such as purchasing inputs, machinery, or land.
    • Ex-The Government of India provides interest subvention of 2% and Prompt Repayment Incentive of 3% to the farmers, thus making the credit available at a very subsidized rate of 4% per annum as per Kisan Credit Card.
  • Direct Income Transfers: Governments provide direct cash transfers or income support schemes to farmers to supplement their incomes, improve their financial stability, and alleviate rural poverty. Ex-PM Kisan Samman Nidhi Scheme under which support of Rs.6000/- per year 

Indirect Subsidies 

  • Fertilizer Subsidies: Governments often provide subsidies on fertilizers to reduce the cost burden on farmers and promote fertilizer use, which enhances crop productivity. Ex- the Union Budget for the fiscal year 2024-25 (FY25) allocated ₹1.64 trillion for fertilizer subsidy.
  • Seed Subsidies: Subsidies on quality seeds help farmers access improved varieties that are disease-resistant, drought-tolerant or have higher yields. Ex- the government provides a subsidy of Rs. 1000/- per quintal or 50% of the cost.
  • Water Subsidies: Subsidized irrigation infrastructure and water supply schemes aim to improve water availability for agricultural purposes, especially in regions facing water scarcity. Ex- Pradhan Mantri Krishi Sinchai Yojana.
  • Minimum Support Prices (MSP): Governments guarantee a minimum price for certain crops to protect farmers from market price fluctuations and ensure stable income. Procurement agencies purchase crops from farmers at MSP, often for staples like wheat, rice, and pulses. Ex- the government of India sets the MSP twice a year for 24 commodities (23 crops + 1 sugarcane).
  • Crop Insurance Subsidies: Subsidies are offered on crop insurance premiums to encourage farmers to enroll in crop insurance schemes, which protect them against yield or revenue losses due to adverse weather, pests, or other risks. Ex- Pradhan Mantri Fasal Bima Yojana (PMFBY)
  • Subsidized Agricultural Machinery: Governments may subsidize the purchase of farm machinery, equipment, and tools to mechanize agricultural operations, increase efficiency, and reduce labor costs. Ex- Sub-mission On Agriculture Mechanization (SMAM scheme)

Present issues raised by the WTO:

  • Market Distortion: The WTO contends that agricultural subsidies have the potential to disrupt global markets. For instance, subsidies like India’s Minimum Support Price (MSP) may result in the undervaluation of Indian agricultural goods on the international stage. 
  • Trade Barriers: Subsidies can create challenges for foreign producers without subsidies to compete effectively in markets where subsidized goods are sold.
  • Overproduction of certain crops: Subsidies can lead to overproduction of certain crops, which can further distort the market and lead to wastage.
  • Negative Environmental Impact: Overuse of fertilizers and water for irrigation, encouraged by subsidies, can lead to environmental degradation.
  • Inequity: The benefits of subsidies often go to larger farmers rather than small-scale farmers who need them the most.

Limitations Faced by Indian Agriculture:

  • Subsidies on few crops: Subsidies like MSP, which are applicable for only a few crops, have led to cereal-centric agriculture with distorted cropping patterns, as farmers tend to grow only those crops for which they are given subsidies.
  • Benefiting only wealthy Farmers: As per the Economic Survey 2018, wealthy farmers benefited over small farmers from the farm subsidies. Thus the objective of giving subsidies is not fulfilled. This is the case frequently witnessed in Punjab and Haryana, where affluent farmers enjoy taxpayer money.
  • Fiscal deficit: Also, the subsidies lead to a substantial financial deficit and burden on the financial exchequer.
  • Cause of pollution: Subsidies for agriculture can foster the overloading of croplands, which leads to erosion and compaction of topsoil, pollution from synthetic fertilizers and pesticides, and release of greenhouse gases, among other adverse effects.

Way Forward:

  • Diversification of Subsidies: Expand subsidy programs to cover a wider range of crops, including fruits, vegetables, pulses, and other diversified agricultural products, to promote crop diversification and mitigate the cereal-centric focus.
  • Targeted Subsidy Programs: Implement targeted subsidy schemes that prioritize support for small and marginalized farmers, ensuring that subsidies reach those who need them most and reducing the disproportionate benefit to wealthy farmers.
  • Price Stabilization Mechanisms: Develop price stabilization mechanisms beyond MSP, such as futures markets, crop insurance, and warehouse receipt systems, to mitigate price volatility and provide income security to farmers without distorting cropping patterns.

Prelims PYQ

In India, markets in agricultural products are regulated under the (UPSC IAS/2015)

a) Essential Commodities Act, 1955

b) Agricultural Produce Market Committee Act enacted by States

c) Agricultural Produce (Grading and Marking) Act, 1937

d) Food Products Order, 1956 and Meat and Food Products Order, 1973

Mains PYQ 

Q How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers? (UPSC IAS/2017) 

Q What are the different types of agriculture subsidies given to farmers at the national and at state levels? Critically analyse the agricultural subsidy regime with reference to the distortions created by it (UPSC IAS/2013)

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Housing for all – PMAY, etc.

An overview of the PMAY-U scheme | Explained

Explained | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters,Government Scheme/Policies
Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Issues related to the PMAY scheme and the reason behind the failure of the PMAY Scheme

Why in the News? 

As the current Union government completes two terms, one of its flagship programs was Housing For All (HfA) by 2022, both in urban and rural areas, planned under the PMAY (Pradhan Mantri Awas Yojana) scheme in 2015.

About the PMAY scheme:

The declared objectives of the scheme included rehabilitation of slum dwellers with private developers’ participation; promotion of affordable housing for the weaker sections through Credit Linked Subsidy Schemes (CLSS); affordable housing in partnership with public and private sectors; and subsidy for Beneficiary-led Construction (BLC).

Issues related to the PMAY Scheme:

  • PMAY-U faltering Performance: The Pradhan Mantri Awas Yojana – Urban (PMAY-U) initiative has been criticized for its faltering performance. Data from the PMAY dashboard suggests a shortfall of around 40 lakh houses from sanctioned and completed segments.
  • ISSR Failure: The in-situ slum redevelopment (ISSR) component, aimed at addressing the largest demand in cities, has been particularly criticized for its failure. Only a small number of houses have been sanctioned under ISSR, falling far short of expectations.
  • The large difference between achievement and need: Despite delivering 80 lakh homes, the PMAY-U program has only addressed about 25.15% of the housing shortage. Even if the remaining sanctioned houses are constructed by the end of 2024, it would only address about 37% of the real need, leaving almost 2.4 crore households without adequate housing.
  • Not fulfilling the promise as per Spending: The housing program, which received significant budgetary allocation (over $29 billion in the last five years), has not been able to fulfill its promise of “Housing for All.” Despite the focus and financial support, the goal remains unfulfilled.

The reason behind the failure of the PMAY Scheme

  • Challenges in Slum Rehabilitation: Despite efforts, some projects aimed at slum rehabilitation have faced issues, such as vertical growth leading to increased utility costs and unsuitable living spaces, as well as difficulties in acquiring land.
  • Neglecting social housing needs: City development plans, including PMAY, are often influenced by consultants favoring capital-intensive solutions, potentially neglecting social housing needs and community involvement.
  • Less central government’s share: The funding structure of PMAY involves significant contributions from beneficiary households and state governments, with the central government’s share being relatively small.
  • Limited Government Role: The architecture of PMAY places limited responsibility on the government, particularly in providing interest subsidies and cost-sharing with beneficiaries, leading to concerns about addressing the needs of the landless and the poor.

Way Forward:

  • Reevaluation of Funding Allocation: The central government should consider increasing its share of funding to ensure adequate resources for housing projects. 
  • Enhanced Focus on Slum Rehabilitation: The government should review and enhance the implementation of the in-situ slum redevelopment (ISSR) component. This may involve better planning, community engagement, and addressing challenges such as land acquisition and vertical growth.
  • Community Participation and Needs Assessment: Incorporating community participation in the planning and implementation of housing projects is crucial 

Mains PYQ 

Q Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional fiancé fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion (UPSC IAS/2016)

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Electric and Hybrid Cars – FAME, National Electric Mobility Mission, etc.

How is India planning to boost EV production?

Explained | Economics | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia,Indigenization Of Technology
Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Features of the policy and concerns by private players

Why in the News? 

The Union government approved a policy to promote India as a manufacturing hub for Electric Vehicles (EVs).

Features of the Electric Vehicles policy:

  • Reduction of Import Duty: Import duty on electric vehicles (EVs) imported as Completely Built Units (CBUs) with a minimum CIF value of $35,000 is reduced from 70%-100% to 15% for five years.  
  • Waiver of Duty: A maximum of 40,000 EV imports in five years, with a duty waiver of ₹6,484 crore or proportional to investment (whichever is lower), requires a minimum $800 million investment.
  • Localization Targets: Manufacturers are required to set up manufacturing facilities in India within three years. They must achieve 25% localization by the third year and 50% localization by the fifth year of incentivized operation.
  • Incentives for Setting Up Manufacturing Facilities: The policy incentivizes manufacturers to establish manufacturing facilities in India by offering reduced import duties and waivers, provided they meet certain investment and localization targets.
  • Encouragement of Global EV Makers: The policy aims to encourage global EV makers like Tesla and Chinese EV maker BYD to enter the Indian market by providing favorable conditions for setting up manufacturing facilities and importing EVs.

Present concerns raised by Private Players in the Market:

  • Impact on Domestic Industry: Tata Motors opposed the reduction of import duties, fearing it would negatively affect the domestic industry. They argued that lowering duties could harm the investment climate.
  • Competitive Disadvantage: Domestic players are concerned that the policy benefits mainly higher-end Original Equipment Manufacturers (OEMs), potentially placing them at a competitive disadvantage in segments below ₹29 lakh.
  • Favoring Global Players: The policy appears to favor global EV players and Indian joint ventures with such players, potentially making it more challenging for purely domestic players to compete effectively.

Conclusion: The government should engage in dialogue with stakeholders, including domestic players like Tata Motors, to address their concerns and seek their input in shaping the policy framework. Need to implement measures to support domestic players, including providing incentives and support for technology development, innovation, and capacity building.

Mains question for practice 

Q Indian Government has recently approved a policy aimed at promoting the country as a manufacturing hub for Electric Vehicles (EVs). Discuss the key features of this policy. Highlight the concerns raised by private players.

Mains PYQ 

Q How is efficient and affordable urban mass transport key to the rapid economic development in India? (UPSC IAS/2019)

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Human Development Report by UNDP

Towards a less poor and more equal country

Explained | | Mains Paper 2: Health & Education
Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Income and wealth inequality as per the World Inequality Lab

Why in the news? 

In March, World Inequality Lab, a Global Research Center focused on inequality and public policies, published in a paper titled, ‘Income and Wealth Inequality in India, 1922-2023: The Rise of the Billionaire Raj’. 

Income and wealth inequality as per the World Inequality Lab: 

  • Income Inequality: In 2022-23, the top 1% of Indians received 22.6% of the national income, the highest in a century. The top 0.1% earned nearly 10% of the national income. Wealth inequality was also stark, with the top 1% holding 40.1% of the wealth in 2022-23, the highest since 1961.
  • Wealth Inequality Trends: Wealth concentration increased significantly between 1961 and 2023. The top 10% held 65% of the wealth in 2022-23, up from 45% in 1961. The bottom 50% and middle 40% saw declines in their share of wealth.
  • Comparison with Other Countries: India’s wealth inequality, while not as extreme as in Brazil and South Africa, increased threefold between 1961 and 2023. India’s income inequality is among the highest globally, surpassing South Africa, Brazil, and the U.S.
  • Impact of 1991 Economic Reforms: Inequality increased notably after the 1991 economic reforms in India. Growth in China has been broad-based compared to India, resulting in lesser income inequality despite higher growth rates in China.

Present Dilemma in Human Development:

  • The Human Development Report (HDR) 2023-2024 ranked India 134 out of 193 countries. 
  • India is now the fifth-largest economy but it still ranks lower than Sri Lanka, Bhutan, and Bangladesh in human development. Its economic growth has not translated into growth in human development.

Measures to Improve Human Development:

  • Investment in Education: Ensure access to quality education for all, from primary to higher levels. Focus on improving educational infrastructure, teacher training, and curriculum development.
  • Healthcare Access and Quality: Expand access to affordable and quality healthcare services, including preventive, primary, and specialized care. Invest in healthcare infrastructure, medical personnel, and technology.
  • Poverty Reduction: Implement social welfare programs to provide basic needs such as food, shelter, and clothing to the disadvantaged. Promote inclusive economic growth to create employment opportunities and increase household incomes.

Conclusion: The Indian government has taken several steps including the creation and organization of women’s self-help groups, sending civil servants to areas with poor levels of human development,  and implementing land reforms. However, a major necessity of raising awareness is through an organic approach.

 

Mains PYQ 

Q Despite the consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive (UPSC IAS/2019)

 

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Disasters and Disaster Management – Sendai Framework, Floods, Cyclones, etc.

A lesson from Taiwan in quake resilience

Explained | Enviro & Biodiversity | Mains Paper 3: Disaster Management
Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: What India can learn from Taiwan?

Why in the news? 

On April 3, Taiwan was struck by an earthquake of 7.4 magnitude. This was strongest in last 25 years.

Reason behind the earthquake in Taiwan

  • In the Taiwan region, the Philippine Sea plate is moving northwest towards the Eurasian plate at a velocity of about 7.8 cm per year, which is faster than the motion of the Indian plate. 
  • Lying 160 km off the coast of China, Taiwan was formed at a convergent boundary of the Philippine and Eurasian plates in the western Pacific Ocean. It is a country of strong earthquakes.

Why other countries should take lesson from Taiwan in quake resilience?

  • In 1999, the Chi-Chi earthquake of magnitude 7.7 occurred in the central part of Taiwan and impacted the western region. It killed more than 2,430 people and left 11,305 wounded. It caused more than 50,000 buildings to collapse and partially damaged as many.
  • In 2024, Hualien earthquake killed at least 13 people and injured about 1,000. Most of the deaths were caused by earthquake-triggered rockfalls and not by toppled buildings. Despite being of nearly comparable magnitude, the 2024 earthquake has caused minimal damage compared to the 1999 earthquake.

Taiwan’s earthquake preparedness

  • Advanced Monitoring and Early Warning Systems: Taiwan boasts the most advanced earthquake-monitoring network and early warning systems, allowing for quick detection and alerting of seismic activity.
  • Public Awareness Campaigns and Drills: Widespread awareness campaigns and regular drills on earthquake safety have significantly improved the public’s understanding of earthquake risks and proper safety protocols.
  • Government Regulations and Incentives: The government constantly updates earthquake safety requirements for both new and existing buildings. Additionally, incentives such as subsidies are offered to residents to improve the quake resistance of buildings, encouraging compliance with safety standards.
  • Scientific Judgments for Seismic Risk: Utilizing knowledge of earthquake frequency and severity in different areas, Taiwan is able to make sound scientific judgments regarding seismic risk.
  • Utilization of New Technologies: Taiwan employs cutting-edge technologies such as seismic dampers and base isolation systems to enhance building resilience. For example, Taipei 101, the nation’s iconic building, features a tuned mass damper—a massive steel sphere suspended by cables within the tower—which acts as a pendulum to counteract building motion during earthquakes.

What India can learn from Taiwan?

  • Importance of Seismic Safety Regulations: India, especially in tectonically unstable regions like the Himalayas, must prioritize seismic safety regulations in all infrastructure projects.  
  • Customized Seismic Codes: Similar to Taiwan, India should develop seismic codes tailored to specific regions based on local earthquake activity, building types, and construction materials. These customized codes can better address the unique seismic risks faced by different parts of the country.
  • Utilization of Traditional Architectural Styles: In some parts of India, traditional architectural styles may possess inherent earthquake resistivity. By rediscovering and encouraging the use of these traditional techniques, India can promote earthquake-resistant building practices that are culturally and environmentally sustainable.
  • Integration of Seismic Zonation Maps: Indian code IS 1893 already specifies seismic designs based on seismic zonation maps. It’s crucial for India to integrate these maps effectively into urban planning and construction practices to ensure that buildings are designed and located in accordance with seismic risk assessments.

Conclusion

Earthquakes is natural disasters with unpredictable occurrences, can have devastating effects on society. However, their impact can be mitigated through preventive measures such as early warning systems, construction regulations, and raising awareness about earthquake preparedness.

Mains PYQ 

Q Discuss about the vulnerability of India to earthquake related hazards. Give examples including the salient features of major disasters caused by earthquakes in different parts of India during the last three decades.(UPSC IAS/2021)

Mains question for practice 

Q Analyzing Taiwan’s earthquake preparedness following the April 3rd 7.4 magnitude earthquake, explore lessons for India’s earthquake resilience strategy.

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Juvenile Justice (JJ) Act

SC allows termination of pregnancy of minor rape survivor

Explained | Polity | Mains Paper 2: Executive & Judiciary,Health & Education
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Medical Termination of Pregnancy (MTP) Act 2020 and Article 142

Mains level: Distinctive features of Article 142

Why in the news? 

The Supreme Court on Monday used its extraordinary powers under Article 142 of the Constitution to do “complete justice” to permit the medical termination of pregnancy of a 14- year-old rape.Her pregnancy is nearing 30 weeks. The minor became aware of her condition only at a very late stage.

Article 142

  • Article 142 of the Indian Constitution grants extraordinary powers to the Supreme Court of India to deliver complete justice. It empowers the Supreme Court to pass any order or issue any writ necessary for doing “complete justice” in any cause or matter pending before it, even if the case does not fall directly within its jurisdiction. 

Distinctive features of Article 142:

  • Extraordinary Powers: Article 142 grants the Supreme Court of India extraordinary powers to deliver complete justice. These powers are exceptional and not restricted by the ordinary limitations of jurisdiction or procedure.
  • Wide Discretion: The provision grants the Supreme Court wide discretion in passing orders or issuing writs to achieve complete justice.  
  • Non-obstante Clause: Article 142 begins with a non-obstante clause, which means that the powers conferred by this article prevail over any other provision of the Constitution or law. This underscores the supremacy of the Supreme Court’s authority in exercising these powers.
  • Judicial Activism: Article 142 is often invoked to enable the judiciary to intervene in matters where existing laws or legal provisions are inadequate or where there are gaps in the law. This enables the court to play an active role in shaping legal principles and addressing societal concerns.

Medical Termination of Pregnancy (MTP) Act 2020

  • Gestation Limits: The Act allows for the termination of pregnancy up to 20 weeks with the opinion of one registered medical practitioner.
  • For termination between 20 to 24 weeks, the opinion of two registered medical practitioners is required.
  • The upper gestation limit has been increased from 20 to 24 weeks for special categories of women, including survivors of rape, victims of incest, differently-abled women, and minors.
  • Medical Board: In cases of substantial foetal abnormalities diagnosed by a Medical Board, the upper gestation limit does not apply.
  • The Medical Board consists of a gynaecologist, a paediatrician, a radiologist or sonologist, and other notified members.
  • Privacy Protection: The Act ensures the protection of privacy for women who have terminated their pregnancy. The name and other details of the woman are not to be revealed except to authorized individuals.

Conclusion: 

Need to take Measures to prevent rape in society by providing education on consent, promoting gender equality, ensuring swift and awareness about severe punishment for perpetrators, enhancing support for survivors, and fostering a culture of respect.

Mains PYQ

Q ‘Constitutional Morality’ is rooted in the Constitution itself and is founded on its essential facets. Explain the doctrine of ‘Constitutional Morality’ with the help of relevant judicial decisions.

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Foreign Policy Watch: India-Iran

What Iran-Israel conflict means for Middle East and India

Explained | International Relations | Mains Paper 2: Indian Diaspora
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bordering countries of israel and Iran

Mains level: Impact of the Iran-Israel conflict on India

Why in the news?

The turmoil resulting from the Iran-Israel conflict poses a threat to the security of the extensive Indian diaspora residing in the Gulf region, with an added risk of piracy and hostage situations.

The conflict between Israel and Iran:

  • Historical Context: The roots of the conflict can be traced back to the Islamic Revolution in 1979 when Iran rejected Israel’s existence and vowed to undermine it. Iran has supported anti-Israeli militant groups like Hezbollah and Hamas and pursued a nuclear program, which Israel sees as a threat
  • Recent Escalation: Recent events, such as the unprecedented missile and drone assault on Israel originating from Iran, have raised concerns about a potential all-out war between the two nations. Israel successfully intercepted most of the attacks, but the implications of this escalation are significant
  • Israel’s Response Options: Israel faces decisions on how to respond to Iran, with options including retaliation by proxy, assassinations, cyberattacks, or direct attacks. Each option carries risks of escalation and broader regional consequences
  • The nuclear issue: The long history of animosity and confrontation between the sides has now erupted in direct attacks. Israel is believed to be nuclear-capable and Iran’s desired programmes for nuclear capability have been in the spotlight

Impact of the Iran-Israel conflict on India:

  • Economic Interests: India has significant economic ties in the Middle East, including trade, investment, and energy imports. Any escalation of conflict in the region threatens India’s economic interests, potentially leading to disruptions in trade routes and increased oil prices.
  • Security of Indian Diaspora: The Middle East hosts a large Indian diaspora, particularly in the Gulf region. Turmoil and conflict pose risks to their safety and security, with concerns about piracy, hostage-taking, and general instability.
  • Instability in Global south Governance : India recognizes the importance of stability in the Middle East for global south governance and stability. Instability in the region affects not only regional dynamics but also has broader implications for international security and cooperation.

Diplomatic solution for this conflict:

  •  India advocates for diplomatic solutions to conflicts in the Middle East and supports initiatives for peace and stability, including the two-state solution for the Israel-Palestine conflict. India’s historical and cultural ties with the region position it as a potential mediator and facilitator for dialogue.

Way forward:

  • Restraint and De-escalation: Call upon both parties to exercise restraint and avoid actions that could escalate the conflict further.  
  • Regional Cooperation: Encourage regional actors, including neighboring countries  to work together to promote stability and security in the Middle East.  
  • International Support: Seek support from the international community, including major powers and multilateral organizations, to pressure Iran and Israel to pursue peaceful resolutions.

Mains PYQ:

Q How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics?

Mains question for practice:

Q The turmoil resulting from the Iran-Israel conflict poses a threat to the security of the  Indian diaspora residing in the Gulf region. Discuss the Impact of the Iran-Israel conflict on India and suggest the solution.

 

 

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Finance Commission – Issues related to devolution of resources

Premium- Indian Federalism as a Mad Hatter’s Tea Party

Explained | Polity | Mains Paper 2: Federalism
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 1, Article 3; Finance Commission; NITI Aayog; Federal Ssytem; Emergency Provisions;

Mains level: Issues related to Federalism in India;

Why in the News? 

In recent times, the Central government has exerted significant political and financial control over the regional states.

What is Federalism?

  • Federalism is a system of government in which power is divided and shared between a central authority (usually a national government) and constituent political units (such as states or provinces). 
  • Both levels of government have their spheres of authority, and they coexist within the same political framework.

 

Indian Federalism:

  • India opted for a federal form of government because of linguistic and regional diversity. It has dual objectives, to safeguard and promote the unity, and to accommodate regional diversity.
  • However, Indian Federalism has been described as quasi-federal since it contains major federation and union features (Article 1 says, “India that is ‘Bharat’, shall be the Union of the states”).
  • The central government has more authority, especially in fiscal matters (due to which it is sometimes called “asymmetrical federalism”).
  • Federalism is part of the basic structure which cannot be altered or destroyed under the constituent powers of the Parliament without undergoing judicial review by the Supreme Court.

Federal Features

Non-federal features

The Present Political Federal Issues in India:

  • Centralization of Power: Certain propositions laid down in the Supreme Court’s judgment, have upheld the prospects of Federalism in India
    • For example, the abrogation of Article 370 concerning Jammu and Kashmir’s special status by the central government without adequate consultation with the state government was seen as a move towards the Centralization of power.
  • Reorganization of States: The provision under Article 3 of the Constitution states that the President shall refer the Bill for the reorganization of any State to the legislature of the State concerned to elicit its opinion. 
    • The recent SC’s verdict that dismissed the challenges to the abrogation of Article 370 led to a serious undermining of federalism and the rights of the elected State legislatures.
  • Lack of clarity in Division of Powers: Although the subjects are enlisted in the Seventh Schedule and Emergency Provisions of the Constitution, the distribution of power between the Central government and the states lacks clarity and equity. 
    • For example, internal security assumes utmost importance with the Maoist challenge and cross-border terrorism, which threaten all the states across the country.
    • The Constitution does not refer either to ‘security’ or ‘internal security’ anywhere. However, it mentions five related terms namely ‘pubic order’ (List II, Entry 2), ‘war’ (Article 352), ‘external aggression’ (Article 352), ‘armed rebellion’ (Article 352), and ‘internal disturbance’ (Article 355).
    • Further, the imposition of President’s Rule in states under Article 356 has been recently criticized for being used arbitrarily by the central government.
  • Unequal Representation in Rajya Sabha: The representation of states in Parliament and other federal institutions does not accurately reflect their population, size, or contributions. Some states are over-represented while others are under-represented.
    • For example, the allocation of 80 Lok Sabha seats to Uttar Pradesh and only one to Sikkim results in unequal representation, impacting resource distribution and decision-making.
  • Simultaneous Elections: Measures discussed and recommended like the “One Nation One Election” undermined India’s federal structure and conflated the different priorities voters had for National, State, and “Panchayati raj” institutions, degrading each one’s different sphere of responsibility. 

The Present Fiscal Federal issues in India:

  • Fiscal Divisible Pool: The states often face financial constraints due to their dependence on the central government for funds. The unequal distribution of resources can exacerbate disparities among states. 
    • For example, states like Bihar and Uttar Pradesh receive more funds from the central government under various schemes. However, recently the Kerala government faced serious financial crunches due to a lack of funds.
  • Implementation of Goods and Services Tax (GST): GST’s implementation has raised issues related to fiscal autonomy. States have voiced concerns about the loss of their taxation powers and uncertainties regarding compensation from the central government for revenue losses.

Bodies related to the Federal System in India:

  • The Inter-State Council: It was constituted under Article 263 of the Constitution, and serves as a constitutional entity aimed at fostering coordination and collaboration between the Central government and the states regarding shared interests and issues of significance.  
  • The Finance Commission: It is a Constitutional Body established under Article 280 of the Constitution to recommend the distribution of revenues between the Centre and the states.
  • The NITI Aayog: Established in 2015 to replace the Planning Commission. It fosters cooperative federalism by involving states in policy formulation and implementation.

Committee Recommendation:

  • Sarkaria Commission (1983):
      • Balanced Distribution of Powers: Recommended a balanced distribution of powers between the central government and states, ensuring that each level of government has adequate authority to perform its functions.
      • Cooperative Federalism: Emphasized the need for cooperative federalism, where the central and state governments work together in the spirit of partnership and collaboration.
  • Punchhi Commission (2007):
    • Strengthening Inter-State Council: Recommended strengthening the Inter-State Council, an institution tasked with promoting cooperation among states and between the center and states.
    • Revisiting Center-State Relations: Suggested revisiting and updating the provisions related to center-state relations to address contemporary challenges and promote cooperative federalism.

 

Way Forward: The Centre cannot afford to ignore the importance of states to effectively respond to the Federal issues:

  • Empowerment of State Governments: Strengthen the powers and autonomy of state governments in decision-making processes, allowing them greater authority over issues within their jurisdiction, and revenue management is necessary.
  • Promoting Co-operative Federalism: Enhance the effectiveness of the Inter-State Council as a forum for dialogue and cooperation between the Centre and states on matters of common interest, ensuring meaningful participation of state leaders in decision-making processes.
  • Need a Balanced Approach: First, the government needs to review and make necessary amendments to clarify the distribution of powers, ensuring a more balanced and transparent framework for political governance.  Second, implement a balanced system of grants where states with weaker fiscal capacities receive adequate support to address developmental disparities.
  • Bringing Clarity: Clearly define revenue-sharing boundaries and internal security mechanisms between the Centre and states to ensure equitable distribution of resources.

Prelims PYQ 

Q) Which one of the following is not a feature of Indian federalism? (UPSC IAS/2017)

  1. a) There is an independent judiciary in India.
  2. b) Powers have been clearly divided between the Centre and the States.
  3. c) The federating units have been given unequal representation in the Rajya Sabha.
  4. d) It is the result of an agreement among the federating units.

 

Q) Consider the following statements: (UPSC IAS/2020)

1) The Consititution of India defines its ‘basic structure’ in terms of federalism, secularism, fundamental rights and democracy.

2) The Constitution of India provides for ‘judical review to safeguard the citizens’ liberties and to preserve the ideals on which the Constitution is based.

Which of the Statement given above is/are correct?

  1. a) 1 only
  2. b) 2 only
  3. c) Both 1 and 2
  4. d) Neither 1 nor 2

Mains PYQ 

Q1 How far do you think cooperation, competition and confrontation have shaped the nature of federation in India? Cite some recent examples to validate your answer. (UPSC IAS/2020) 

Q2 The concept of cooperative federalism has been increasingly emphasised in recent years. Highlight the drawbacks in the existing structure and the extent to which cooperative federalism would answer the shortcomings.

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

What is the outlook on the global economy? | Explained

Explained | Economics | Mains Paper 3: Indian Economy
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Global Financial Stability Report

Mains level: What does it mean for India?

Why in the news? 

The International Monetary Fund (IMF) released its latest Global Financial Stability Report warning about the risks to the Global Financial System.

What is the IMF’s worry about Inflation?

  • Premature Investor Enthusiasm: The IMF believes that investors may be overly optimistic about the end of high inflation and the subsequent lowering of interest rates by central banks. This enthusiasm could be premature.
  • Stalled Inflation: The IMF highlights that inflation may have stalled in some major advanced and emerging economies. Core inflation in the most recent three months has been higher than in the previous three months, indicating a potential slowdown in the decline of inflation.
  • Geopolitical Risks: The IMF warns that geopolitical risks, such as ongoing conflicts in West Asia and Ukraine, could disrupt aggregate supply and lead to higher prices. This could counteract efforts to lower inflation and deter central banks from lowering interest rates.
  • Potential Impact on Central Bank Action: The IMF suggests that if these risks persist, central banks may delay or refrain from lowering interest rates as expected by investors, which could have consequences for asset prices and investor losses.

How it will impact the Indian Market?

  • Strong Fund Flows: Emerging markets like India have experienced strong inflows of foreign capital, driven by optimism surrounding potential interest rate cuts by central banks.
  • Vulnerability: If central banks in Western countries signal a prolonged period of high interest rates, investors may withdraw funds from emerging markets like India, putting pressure on their currencies.
  • Depreciation of the Indian Rupee: The Indian rupee has already been depreciating, reaching a new low against the U.S. dollar. This trend could continue if capital outflows accelerate.
    • In response to currency depreciation and capital outflows, the RBI may intervene by curbing liquidity and raising interest rates. However, this could slow down the economy.
  • Potential Effects on Financial System: A severe outflow of capital could have implications for India’s financial system, potentially exacerbating the depreciation of the rupee and causing instability.

Private Credit Market Scenario:

  • The private credit market globally grew to $2.1 trillion last year, indicating its significant size and importance in the financial landscape.
  • The IMF is concerned about the unregulated private credit market, where non-bank financial institutions lend to corporate borrowers. Troubles in this market could potentially affect the broader financial system.
  • India has also witnessed the growth of a small private credit market, particularly with the rise of Alternative Investment Funds (AIFs).

Conclusion: The IMF’s concerns over premature investor optimism on inflation and risks from geopolitical tensions highlight potential challenges for India’s financial stability. Vigilance over capital flows and regulation of the private credit market are essential safeguards.

Mains PYQ:

Q The World Bank and the IMF, collectively known as the Bretton Woods Institutions, are the two inter-governmental pillars supporting the structure of the world’s economic and financial order. Superficially, the World Bank and the IMF exhibit many common characteristics, yet their role, functions and mandate are distinctly different. Elucidate.

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Capital Markets: Challenges and Developments

What are the new Green Credit Programme rules? | Explained

Explained | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Green Credit Programme;

Mains level: Sustainable Growth; GCP stoked controversy;

Why in the news? 

On April 12, the Environment Ministry issued further guidelines on its Green Credit Programme (GCP)

What is the Green Credit Programme?

  • The Green Credit Programme is a new market-based instrument in India designed to incentivize individuals, industries, and local bodies for their voluntary environmental actions across different sectors.
  • It is included under the government’s ‘Lifestyle for Environment’ or ‘LiFE’ movement and is a domestic voluntary market mechanism where green credit serves as a singular unit of credit provided for each specified activity.

Features of the Green Credit Programme:

  • Open-Platform: Participants, including individuals, organizations, and both public and private companies, can invest in these environmental initiatives and receive ‘green credits’ in return. These credits are earned based on the environmental impact of the invested activities.
    • Public sector companies such as Indian Oil, Power Grid Corporation of India, National Thermal Power Corporation, Oil India, Coal India, and National Hydropower Corporation have reportedly registered to invest in the GCP.
  • Set with Priority: The Ministry has prescribed rules for the first initiative under the GCP, focusing on afforestation. Participants can pay for afforestation projects in degraded forest and wasteland areas, with tree planting conducted by State forest departments.
    • The Indian Council of Forestry Research and Education (ICFRE), an autonomous body of the Environment Ministry, is responsible for administering the GCP. They define methodologies to calculate green credits and manage a trading platform for credit exchange.
  • Regional Participation: Thirteen state forest departments have offered 387 land parcels totaling nearly 10,983 hectares of degraded forest land for afforestation projects under the GCP.
  • Enhanced Decision-Making: Successful participants will receive estimates of the costs involved in their chosen afforestation projects, facilitating informed decision-making and planning.

Why has the GCP stoked controversy?

  • Commodification of Environmental Conservation: Critics argue that the GCP turns environmental conservation into a commodity, potentially undermining the spirit of India’s forest conservation laws.
  • Forest Diversion Concerns: The GCP’s provision for companies to “exchange” green credits for complying with compensatory afforestation requirements raises concerns that it could be exploited by industries seeking to ease forest diversion requirements, particularly in sectors like mining and infrastructure.
  • Ecological Impact: Planting trees as a part of afforestation efforts does not guarantee ecosystem improvement. India’s diverse forest types require specific approaches, and planting the wrong types of trees could lead to the proliferation of invasive species or disrupt sustainable ecosystems.
  • Monoculture Threat: There’s a risk that the GCP may promote the replacement of natural forests with invasive monocultures, potentially harming biodiversity and ecological balance.
  • Carbon Trading Controversy: The GCP allows green credits resulting from carbon storage (e.g., tree planting) to be used for carbon trading. However, the methodology for equating these activities is unclear, raising doubts about the effectiveness and legitimacy of such carbon trading schemes.

Conclusion: The Green Credit Programme in India, faces criticism for potentially commodifying conservation, raising forest diversion concerns, posing ecological risks like monoculture, and lacking clarity in carbon trading methodologies. So there is a need for rigorous oversight and adaptation.

Mains PYQ 

Q Explain the purpose of the Green Grid Initiative launched at World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November, 2021. When was this idea first floated in the International Solar Alliance (ISA)?

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Sustaining our Earth and Nourishing our Bodies

Explained | Enviro & Biodiversity | Mains Paper 1: Climatic Change
Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Climate Change;

Why in the news? 

The women from a Self-Help Group in Kanker district (Chhattisgarh), have spared 10 decimals of land for multi-layer farming to mitigate land degradation and under-nutrition, and to secure round-the-year incomes.

How does the relationship between Climate Change and Nutrition result in Food insecurity?

  • Impact on Food Chain: Climate change affects food value chains, agricultural yields, nutritional quality, food access, and energy-intensive processes, exacerbating existing challenges in food security and nutrition.
  • Lack of Access: The Rome Declaration on Nutrition highlights the global challenges in providing sufficient, safe, diverse, and nutrient-rich food for everyone, with approximately 800 million people lacking reliable access to food and two billion suffering from iron and zinc deficiencies.
  • Disparities in Diets: Disparities in production systems and individual dietary choices lead to populations being unable to maintain balanced diets, contributing to malnutrition and the prevalence of non-communicable diseases.
  • Results into Gender Disparities: Women are disproportionately affected by climate change and poor nutrition, but gender-just food systems, where women have equal rights and access to resources, contribute to resilience against shocks like drought.

Suggestive measures for reducing Emissions

  • Plant-Based Diet: A diet higher in plant-based foods is more environmentally sustainable than one with more animal foods. Substituting animal products with plant-based meats and dairy alternatives can lower emissions.
  • Mitigating CO2 Concentration: Higher atmospheric CO2 concentrations can lead to lower concentrations of protein, iron, and zinc in crops, highlighting the need to mitigate climate change impacts on food nutrition.
  • Value-Chain Approach: Adopting a value-chain approach can optimize dietary choices while lowering emissions, benefiting communities at the household level.
    • For Example, Initiatives like the Millet Mission in Chhattisgarh aim to promote millet cultivation, showcasing its nutritional value, low water footprint, climate resilience, and potential to address both nutritional and environmental concerns.
  • Scaling up diversified Food Production: Scaling up and decentralizing diversified food production systems can reduce emissions by promoting underutilized indigenous foods and improving resilience to climate change.
  • Monitoring Emissions: Continuous and extensive monitoring of emissions linked to food production and distribution is necessary, with accessible assessment tools for local communities to actively participate in emission reduction efforts.

Conclusion: Crops grown in regenerative and sustainable systems tend to have higher levels of vitamins, minerals, antioxidants, and other beneficial phytochemicals compared to conventionally grown counterparts. By prioritizing soil health and biodiversity, regenerative and sustainable agriculture systems government and farmers can collaboratively promote nutrient-dense foods that nourish our bodies and support overall health and well-being.

Mains PYQ:

Q Climate change’ is a global problem. How India will be affected by climate change? How Himalayan and coastal states of India will be affected by climate change? (UPSC IAS/2017)

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

On the fall in Household Savings

Explained | Economics | Mains Paper 3: Indian Economy
Note4Students

From UPSC perspective, the following things are important :

Prelims level: National Income; Household Savings;

Mains level: NA

Why in the news? 

The sharp reduction in Household Net Financial Savings and the rise in Household Debt burden are a cause for concern for growth and economic stability.

BACK2BASICS:

What are household financial savings?

  • Household financial savings refer to currency, bank deposits, debt securities, mutual funds, pension funds, insurance, and investments in small savings schemes. The total of these savings is referred to as gross household financial savings.

What is Household Debt?

  • Household debt is all household liabilities (including non-profit institutions serving households) that require payments of interest or principal by households to creditors at a fixed date in the future.
  • Debt is calculated as the sum of the following liability categories: loans (primarily mortgage loans and consumer credit) and other accounts payable.

 

What are the present reasons behind the Lower Financial savings?

  • Increased borrowing or reduced gross financial savings are the primary drivers of lower net financial savings.
  • Lower net financial savings due to increased borrowing for consumption or investment can stimulate aggregate demand and output.
  • Higher interest rates can lead to increased interest payments by households, reducing their net financial savings.

Implication of Higher Debt Burden on the Indian Market: The rise in household debt burden has two concerns for the macroeconomy. 

  • Debt Repayment and Financial Fragility: Household debt sustainability depends on the gap between the interest rate and income growth rate. 
    • Suppose households fail to meet their debt repayment commitments. In that case, it reduces the income of the financial sector and deteriorates their balance sheets, which in turn can have a cascading effect on the macroeconomy.
  • Scheduled Commercial Banks Lending vs. Growth Rate of GNS: The weighted average lending rate registered a sharp rise in the last two years, particularly due to the tight monetary policy stance of the RBI and the sharp rise in the call money rate during this period.
  • Impact on Consumption Demand: Reducing household wealth can lead to lower consumption expenditure as households may attempt to preserve their wealth by increasing their savings.

  • Reduced Higher household debt: Higher household debt can also reduce consumption expenditure in at least two ways.
    • If higher household leverage is perceived as an indicator of higher default risk, then it may induce banks to indulge in credit rationing and reduce credit disbursement. The consequent reduction in credit disbursement can adversely affect consumption.
    • Higher debt can reduce consumption expenditure by increasing the interest burden, not to mention the effect of higher interest rates on consumption expenditure.
  • Low household Financial wealth: Recent trends in the Indian economy indicate a decline in household financial wealth relative to GDP, alongside an increase in household leverage (debt to net worth ratio). 
    • The financial wealth/net worth of the household is the difference between the stock of financial assets and liabilities.

Macroeconomic Implication:

  • Implications of the Procyclical Leverage: Given that both the flow indicator of liabilities to disposable income and the debt to net worth show an increasing trend, where households are vulnerable.
  • Fall in the Household Savings: The policy mantra of higher interest rates to counter inflation by reducing macroeconomic output and employment can leave households with an increasing level of debt in their balance sheets and potentially push the households into a debt trap.
    • The implications of high-interest rates on debt burden can hurt the consumption of the households and consequently aggregate demand.

Suggestive measures:

  • Promote sustainable borrowing: Policymakers need to address the growing vulnerabilities of households by implementing measures to promote sustainable borrowing practices and reduce reliance on debt.
  • Prioritizes production and employment: Additionally, the policies aimed at fostering a more balanced economy that prioritizes production and employment alongside financial activities may be necessary to ensure long-term economic stability and growth.

Conclusion: The change in the composition of the asset side of the household balance sheet towards financial assets indicates some degree of financialization of the economy which moves from a production-based economy to a monetary or financial exchange-based economy making the 5 trillion dollar economy both jobless and fragile. 

Mains PYQ:

Q The public expenditure management is a challenge to the Government of India in the context of budgetmaking during the post-liberalization period. Clarify it.(UPSC IAS/2019)

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The Crisis In The Middle East

Israel, a two-state solution, some recent perceptions

Explained | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India
Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: Why Israel position is so strong in conflict?

Why in the news?

Writings and statements from Israel give us an understanding of what “a Jewish national home” means and the ongoing conflict it involves.

Historical origins and evolution of the concept of a Jewish national home

  • Historical and Religious Context: The concept of a Promised Land for the Jewish people dates back to biblical times, with references in the Hebrew Bible (Old Testament) to the land of Canaan as a homeland promised to the descendants of Abraham. The idea of returning to this ancestral homeland remained significant in Jewish religious and cultural traditions throughout centuries of diaspora.
  • Zionism: The modern movement for Jewish nationalism, known as Zionism, gained momentum in the late 19th century. Zionist thinkers and leaders, such as Theodor Herzl, envisioned the establishment of a Jewish homeland in Palestine.
  • Theodor Herzl and the First Zionist Congress: The publication of Herzl’s book “Der Judenstaat” (“The Jewish State”) in 1896 is often considered the starting point of modern political Zionism.
  • British Mandate for Palestine: During World War I, the British government issued the Balfour Declaration in 1917, expressing support for the establishment of a national home for the Jewish people in Palestine.
  • Settlement and Immigration: Jewish immigration to Palestine increased significantly during the early 20th century, as Jewish communities sought to establish settlements and build infrastructure in the region.
  • United Nations Partition Plan: In 1947, the United Nations proposed a partition plan for Palestine, which would have divided the territory into separate Jewish and Arab states, along with an internationalized Jerusalem. While Jewish leaders accepted the plan, Arab leaders rejected it, leading to the Arab-Israeli War of 1948 and the establishment of the State of Israel.

Continue Struggle after Arab-Israeli War 1948 

  • International Response and Recognition after 1967 war: UN Security Council resolutions 242 (1967) and 338 (1973) addressed the aftermath of the 1967 war. The Palestine Liberation Organization (PLO) was recognized by the Arab League and the UN General Assembly as the legitimate representative of the Palestinian people. The Arab League Declaration/Initiative of 2002 and the Palestinian Non-Paper outlined visions for a solution, including reference to the 1967 Armistice Line as a border.
  • Annexation of West Bank Settlements: In 2018, Israel’s ruling Likud Party unanimously endorsed a resolution calling for the annexation of West Bank settlements, indicating a hardline stance on territorial claims.

Why Israel’s position is so strong in conflict?

  • Military Might: The military success of Israel in the 1967 war shifted the dynamics of the Arab-Israeli conflict, convincing Arab states that they could not achieve victory through military means. However, it did not lead to a recommendation for a political settlement based on compromise.
  • Madrid Conference of 1991: The Madrid Conference was a significant event in the peace process, though the phrase “territories for peace” was not explicitly mentioned in the invitation letters. It marked a diplomatic effort to address the conflict.
  • American Support : The United States has provided unprecedented support to Israel, both diplomatically and militarily.And Israel’s conduct and efforts to shape the post-war situation have been growing.

Conclusion: The idea of a Jewish national home emerged from historical and religious roots, gained momentum through Zionism, and was furthered by international recognition. Resolution requires diplomacy, acknowledgment of historical grievances, and genuine efforts towards mutual understanding and compromise to stabalise the situation.

Mains PYQ

Q “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss (UPSC IAS/2018)

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Modern Indian History-Events and Personalities

Scripting a new tribal identity

Explained | History and Art & Culture | Mains Paper 1: Modern Indian History
Note4Students

From UPSC perspective, the following things are important :

Prelims level: ribal Leaders in the Freedom Struggle

Mains level: Contributions of Tribal Leaders in the Freedom Struggle

Why in the news? 

President of India Droupadi Murmu was being presented a book, Contributions of Tribal Leaders in the Freedom Struggle, at a National Commission for Scheduled Tribes (NCST) event.

Contributions of Tribal Leaders in the Freedom Struggle

  • Santhal Revolution: Led by Buddhu Bhagat, Joa Bhagat, and Madara Mahato, the Santhal Revolution was a significant tribal uprising against British colonial rule in 1855. The Kols were joined by other tribes like the Hos, Mundas, and Oraons in this struggle
  • Paika Rebellion: The Paika Rebellion in 1817 was a tribal uprising against the British in Odisha. The Paikas were a warrior class who were fighting for their rights and against the exploitation by the British
  • Kol Revolt: The Kol Revolt of 1831-32 was a tribal uprising against the British in Chhattisgarh. The Kols were fighting for their rights over the land and against the exploitation by the British
  • Birsa Munda: Birsa Munda was a tribal leader from Jharkhand who led the Millenarian Movement against the British in the late 19th century. He mobilized the tribal community against the British and forced them to introduce laws protecting the land rights of tribals
  • Rani Gaidinliu: Rani Gaidinliu was a tribal leader from Nagaland who led a revolt against the British in the early 20th century. She was a spiritual leader who fought for the rights of the Nagas and against the exploitation by the British
  • Laxman Naik: Laxman Naik was a tribal leader from Odisha who led a revolt against the British in the early 20th century. He was a farmer who fought for the rights of the farmers and against the exploitation by the British

Impact of Tribal Revolts during Freedom Struggle: 

  • The tribal revolts during the freedom struggle contributed to the very beginning of the aggression for British Raj. They revolted not against the British but their policy for Indians which were imposed on them without even knowing their culture and its significance. Later this led to the revolt of 1857, which took attention of all over the country

Conclusion: President Droupadi Murmu received the book “Contributions of Tribal Leaders in the Freedom Struggle” at an NCST event, highlighting significant uprisings like the Santhal, Paika, and Kol revolts, emphasizing tribal resistance against British exploitation, influencing broader Indian agitation.

Mains PYQ 

Q Several foreigners made India their homeland and participated in various movements. Analyze their role in the Indian struggle for freedom.(UPSC IAS/2013)

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