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Type: Explained

  • Judicial Pendency

    The grueling course of litigation in India

    Explained | Polity | Mains Paper 2: Executive & Judiciary

    Note4Students

    From UPSC perspective, the following things are important:

    Mains level: Case pendency in judiciary;

    Why in the News?

    At the National Conference of the District Judiciary, President Droupadi Murmu emphasized the problem of court delays. She pointed out that these delays are causing people to hesitate in approaching the courts.

    What are the primary causes of delays in the Indian judicial system?

    • Ineffective Case Management: The lack of proper scheduling and timelines for filing documents, examining witnesses, and scheduling hearings leads to inefficiencies and prolonged delays.
      • Lawyers often seek adjournments due to unpredictable scheduling or strategic reasons, leading to repeated postponements of hearings.
    • Overburdened Judges: District court judges are often under pressure to prioritize cases based on higher court directives, skewing case management in favor of meeting deadlines rather than ensuring timely justice.
    • Incentive Structure for Judges: The “units system” rewards judges for disposing of simpler cases, often causing more complex cases to be delayed or neglected.
    • Extended Stays and Interim Orders: Litigants may use stays as a strategic delay tactic, reducing the urgency to resolve cases quickly.
    • Unpredictable Witness Testimonies: Disruptions in the court schedule and procedural delays make it difficult for witnesses to attend court, further contributing to trial delays.

    Status of the case pending in India: 

    • Total Pending Cases: As of 2024, there are over 58.59 lakh cases pending in high courts alone, with a staggering total of more than 51 million (5.1 crore) cases across all court levels, including district and Supreme Court.
    • Long-standing Cases: Nearly 62,000 cases have been pending for over 30 years, with some dating back to 1952. In high courts, about 23% of cases have been pending for over ten years2.
    • High Court Breakdown: The Allahabad High Court has the highest backlog, with over seven lakh cases pending as of 2018. Meanwhile, the Supreme Court currently has around 83,000 cases pending, marking a significant increase over the past decade despite an increase in the number of judges

    What impact do these delays have on public perception and access to justice?

    • Erosion of Trust: Delays make the judicial process appear slow and ineffective, leading to public hesitation in approaching courts, fearing that litigation will complicate their lives.
    • Increased Legal Costs: Prolonged cases escalate legal costs for litigants, making justice unaffordable for many.
    • Reluctance to Seek Justice: The “black coat syndrome” highlights how people avoid courts due to the fear of endless adjournments and delays, diminishing access to timely justice.
    • Backlog of Cases: The increasing backlog due to delays creates further congestion in the judicial system, perpetuating a cycle of inefficiency.

    How can reforms improve the efficiency of the judiciary? (Way forward)

    • Improved Case Management Systems: Implementation of Case Flow Management Rules with a focus on enforcing timelines for hearings and case disposal can streamline the process.
    • Reformed Incentive Structures: Reform the “units system” to incentivize judges to handle complex cases more efficiently rather than prioritizing simpler ones.
    • Predictable Scheduling for Lawyers: Providing clear scheduling information to lawyers can reduce unnecessary adjournments and improve case flow.
    • Review of Stay Orders: Limiting the duration of stay orders and making them subject to regular review can discourage their misuse as delay tactics.
      • Introducing real-time case management systems to track case progress and monitor delays could enhance judicial efficiency.
    • Support for Witnesses: Offering financial compensation and providing predictability in court appearances can encourage witnesses to testify without unnecessary delays.

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    What is the Samsung worker’s strike in Chennai about?

    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:

    Mains level: Wage issues in India;

    Why in the News?

    Approximately two-thirds of workers at Samsung’s flagship factory in Chennai have been on strike for a month, demanding higher wages, an eight-hour workday, improved conditions, and union recognition.

    What are the main demands of the striking workers?

    • Higher Wages: Workers are demanding increased salaries to improve their financial conditions.
    • Eight-Hour Work Day: The employees seek the implementation of an eight-hour workday to ensure better work-life balance.
    • Better Working Conditions: Strikers are advocating for improved health and safety standards in the workplace.
    • Recognition of Labour Union: The workers want formal acknowledgment of their recently formed union, the Samsung India Workers Union (SIWU).

    What is Samsung’s union policy?

    • Historically, Samsung has maintained a strict no-union policy for over 80 years, resisting any collective bargaining efforts by employees.
    • In July 2021, the company began to recognize unions after successful negotiations at Samsung Display and Samsung Electronics, allowing for some degree of collective bargaining.
    • Samsung now has various unions representing its workforce globally, with significant representation in South Korea.

    Why was SIWU unrecognised? 

    • Registration Challenges: SIWU’s registration has been opposed by Samsung management, citing trademark violations due to the use of the name “Samsung” in the union’s title.
    • Legal Precedents: SIWU argues that trademark issues should not apply, as their activities do not involve commercial undertakings that could infringe on the trademark.
    • Pending Legal Review: The case regarding SIWU’s registration is pending further court hearings, with the government examining objections raised by the management.

    What has been the govt.’s response?

    • Indifferent Stance: SIWU and the Centre of Indian Trade Unions (CITU) have accused the Tamil Nadu government of being indifferent and supportive of Samsung management, which the government denies.
    • Support for Workers’ Rights: The government claims it considers the registration application in light of Samsung’s objections and aims to ensure fair treatment of both workers and management.
    • CITU’s Position: Union leaders assert that government intervention in favor of management undermines the rights of workers and can deter unionization efforts, despite evidence showing that unions can benefit both employees and companies.

    Present Legislation in India:

    • Notice Period and Conditions for Strikes: Under the Industrial Relations Code, 2020, workers must provide a 14-day notice before striking, which cannot exceed a maximum of 60 days.
    • Strike definition: The definition of a strike now includes “mass casual leave,” where over 50% of employees taking leave can be classified as a strike.
    • Increased Flexibility for Employers: The code has increased the threshold for layoffs from 100 to 300 workers, allowing companies to lay off employees without government approval.
    • This change aims to give employers greater flexibility in managing their workforce, which has raised concerns among labor unions about job security and workers’ rights.

    Way forward: 

    • Facilitate Dialogue and Mediation: Establish a formal dialogue between the workers, Samsung management, and government representatives to address grievances, negotiate demands, and work towards a mutually beneficial agreement.
    • Strengthen Legal Framework for Union Recognition: Amend or clarify existing labor laws to ensure timely and transparent registration processes for unions, protecting their rights and enabling effective collective bargaining.

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    Fairwork India report highlights the absence of local living wage for gig workers, aggregators turning their back to collectivization

    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:

    Mains level: Issues related to gig workers;

    Why in the News?

    The ‘Fairwork India Ratings 2024’ highlights that platform aggregators in India fail to ensure local living wages and resist recognizing the collective rights of workers.

    Who are the Gig Workers?

    • Gig workers are individuals who take up short-term, flexible work assignments, typically managed via digital platforms. In the Indian context, gig workers operate in various sectors such as food delivery, ride-hailing, logistics, and personal/domestic care services. 
    • These workers are not considered employees in the traditional sense and often lack the benefits associated with full-time employment, such as job security, healthcare, and social protection.
    • Examples of platforms using gig workers include Swiggy, Zomato (food delivery) Uber, Ola (transportation), etc.

    Key highlights as per the report: 

    • No Platform Scored Perfectly: No digital labor platform scored more than 6 out of 10 points, and none met all criteria across the five principles — Fair Pay, Fair Conditions, Fair Contracts, Fair Management, and Fair Representation.
    • Fair Pay: Only BigBasket and Urban Company ensured a minimum wage, but no platform met the criteria for guaranteeing a living wage after work-related costs.
    • Fair Conditions: Several platforms (e.g., Amazon Flex, Swiggy, Zepto) provided safety equipment and training, but only a few offered comprehensive accident insurance and income loss compensation.
    • Fair Contracts: BigBasket, Swiggy, and others made contracts accessible and comprehensible, and provided data protection for workers.
    • Fair Management: Platforms like BluSmart and Zomato implemented processes for addressing grievances and preventing discrimination.

    Present Status of Gig Economy  in India:

    • Growth of the Gig Economy: India is witnessing rapid growth in the gig economy, with millions of workers depending on digital platforms for their livelihoods.
      • The rise of app-based platforms such as Uber, Zomato, and Urban Company has driven the expansion of gig work across urban areas.
    • Government Focus: Recent years have seen increasing political and legislative attention to gig worker welfare. Karnataka and Jharkhand are examples of states that have proposed new legislation to regulate platform work and protect gig workers’ rights.
    • Worker Conditions: Despite the expansion of gig work, platforms in India still lag in ensuring fair pay, safety, and management of gig workers.
      • The Fairwork India Ratings 2024 reveal that no platform scored above 6 out of 10, signaling considerable gaps in adhering to key labor standards.

    Challenges faced by the Gig Economy

    • Low Wages and Unstable Earnings: Many platforms fail to ensure a local living wage for workers after accounting for work-related costs. Only a few platforms like Bigbasket and Urban Company guarantee the local minimum wage, but none meet the standard of ensuring a living wage.
    • Lack of Social Security and Benefits: Most gig workers lack access to benefits such as healthcare, insurance, and paid leave. While a few platforms provide accident insurance, broader social security protections remain elusive.
    • Poor Working Conditions: Platforms often do not ensure adequate safety training or measures. While some like Swiggy, Zomato, and Zepto offer basic safety equipment and training, broader protections, especially in terms of income loss and sick leave, are limited.
    • Inflexible Contracts: Contracts on platforms are frequently unclear, lengthy, and not always comprehensible for workers, making it difficult for them to fully understand their rights and obligations.
    • Management Issues and Bias: Workers face arbitrary decisions and discipline without proper recourse. Though some platforms have mechanisms for workers to appeal decisions, few have adopted policies to ensure fairness in work allocation.
    • Collectivization Challenges: Platforms resist recognizing gig workers’ right to form unions or collective bodies. Despite the growing movement for gig worker collectivization, no platform showed evidence of supporting or acknowledging these efforts.

    Way forward: 

    • Strengthen Legal Protections and Social Security: Introduce comprehensive legislation ensuring gig workers receive fair wages, social security benefits like healthcare and insurance, and clear, comprehensible contracts.
    • Promote Worker Representation and Fair Management: Encourage platforms to recognize collective bodies of gig workers, ensuring their right to unionize. Implement transparent and bias-free management practices, along with grievance redressal mechanisms, to improve working conditions and fairness.

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  • Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

    What is fortified rice? Why did the Centre extend the initiative for its distribution of schemes

    Explained | Indian Society | Mains Paper 2: Health & Education

    Note4Students

    From UPSC perspective, the following things are important:

    Mains level: Significance of food fortification;

    Why in the News?

    On October 9, 2024, the Union Cabinet approved extending the free fortified rice supply under welfare programs until December 2028.

    Why Rice Fortification is needed?

    • Widespread Micronutrient Deficiency: India faces a significant public health challenge with micronutrient deficiencies, particularly iron, Vitamin B12, and folic acid. Anaemia, caused by iron deficiency, is a persistent issue affecting large segments of the population, including children, women, and men.
    • Rice as a Staple Food: Given that 65% of India’s population consumes rice as a staple, it is an ideal vehicle to deliver essential micronutrients to combat these deficiencies, helping improve overall health, productivity, and cognitive development.

    Process of Rice Fortification:

    • Fortified Rice Kernels (FRK): The process involves producing fortified rice kernels that are enriched with essential micronutrients such as Iron, Folic Acid, and Vitamin B12.
    • Blending with Regular Rice: These fortified kernels are then blended with regular rice at a ratio prescribed by FSSAI (Food Safety and Standards Authority of India).
      • Typically, fortified kernels make up 1-2% of the total rice, ensuring consistent delivery of micronutrients without altering the taste or cooking properties of the rice.

    How the Fortification Initiative has fared so far?

    • The rice fortification scheme was implemented in three phases between 2022 and March 2024, with the target of achieving universal coverage in all government schemes by March 2024 successfully met.
    • Fortified rice is now supplied under major welfare programs like the Targeted Public Distribution System (TPDS), Integrated Child Development Service (ICDS), and PM POSHAN in all states and Union Territories.
    • The initiative is fully funded by the central government, highlighting its commitment to tackling malnutrition and ensuring inclusive nutritional security across the country.

    How can food fortification help reduce malnutrition in India?

    • Combats Micronutrient Deficiencies: Fortifying staple foods with essential nutrients like iron and vitamins helps reduce widespread deficiencies that cause anemia and poor health.
    • Wide Reach: Through existing public programs (PDS, ICDS), fortified food reaches vulnerable populations, ensuring consistent nutrient intake for large segments of society.
    • Cost-Effective: It offers a scalable, affordable solution to malnutrition, improving health outcomes without significant changes in diets or eating habits.

    Way forward: 

    • Strengthen Monitoring and Quality Control: Implement robust monitoring mechanisms to ensure the consistent quality of fortified rice and its proper distribution across welfare programs to maximize nutritional benefits.
    • Raise Awareness and Promote Consumption: Conduct awareness campaigns to educate the public on the health benefits of fortified rice, ensuring higher acceptance and consistent consumption to address widespread micronutrient deficiencies.

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

    2023 driest for global rivers in 33 years, reveals WMO’s report

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

    Note4Students

    From UPSC perspective, the following things are important:

    Mains level: Impact of climate change;

    Why in the News?

    The World Meteorological Organization (WMO)‘s October 2024 report revealed that 2023 was the driest year for global rivers in 33 years, intensifying stress on water supplies globally.

    What factors contributed to 2023 being the driest year for global rivers?

    • Record High Temperatures: 2023 was marked as the hottest year on record, which significantly contributed to prolonged drought conditions and reduced river flows across many regions globally.
    • Climate Change Impact: Rising temperatures have led to a more erratic hydrological cycle, resulting in both extreme droughts and flooding. This unpredictability has exacerbated water shortages in many areas.
    • Transition from La Niña to El Niño: The climatic shift from La Niña to El Niño conditions in mid-2023 played a crucial role in altering weather patterns, leading to widespread dry conditions in many regions while simultaneously causing flooding in others.
    • Glacier Melting: The report indicated that glaciers experienced their largest mass loss in 50 years, which threatens long-term water security for millions who rely on glacial meltwater for their water supply.

    How has climate change impacted global water resources and glacier conditions?

    • Increased Water Scarcity: The report highlighted that approximately 3.6 billion people currently lack reliable access to water for at least one month each year, a number expected to rise to over 5 billion by 2050 due to worsening water scarcity.
    • Glacier Dependency: Many regions depend on glacial meltwater for their river systems. As glaciers continue to shrink, future water availability is jeopardized, particularly in areas like Europe and North America.
    • Erratic Water Supply: The hydrological cycle’s acceleration leads to unpredictable rainfall patterns, causing both droughts and floods that disrupt agricultural and industrial water supplies.

    What are the implications for global water access and management?

    • Increased Demand vs. Supply Shortages: With growing populations and rising demand for water resources, the current trends indicate a critical imbalance between supply and demand, leading to heightened competition for available water resources.
    • Need for Improved Monitoring: The WMO emphasizes the necessity for better data collection and sharing regarding water resources. This is crucial for effective management strategies that can adapt to changing conditions.
    • Urgent Action Required: There is an urgent need for global cooperation and action to address these challenges. Enhanced monitoring systems and international collaboration are essential to mitigate the impacts of climate change on water resources.

    Way forward: 

    • Strengthen Water Resource Management and Adaptation Strategies: Governments should implement integrated water resource management (IWRM) plans to address both water scarcity and flooding risks.
    • Enhance Global Cooperation and Data-Driven Decision Making: Countries must prioritize data-sharing, improve monitoring of water resources, and foster cross-border collaborations to manage shared water systems effectively.

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  • Minority Issues – SC, ST, Dalits, OBC, Reservations, etc.

    What does USCIRF report say about India?

    Explained | Indian Society | Mains Paper 1: Communalism, Secularism, Regionalism

    Note4Students

    From UPSC perspective, the following things are important:

    Mains level: Fake propaganda against India ;

    Why in the News?

    On October 2, the Washington DC-based United States Commission on International Religious Freedom (USCIRF) released a country update on India, highlighting what it described as “collapsing conditions for religious freedom.”

    Mandate of the USCIRF

    • Monitoring Religious Freedom: The USCIRF is tasked with monitoring the universal right to freedom of religion or belief (FoRB) in countries outside the U.S. This includes assessing violations based on international human rights standards, particularly Article 18 of the Universal Declaration of Human Rights.
    • Annual Reports: The commission produces annual reports that evaluate religious freedom conditions and recommend countries for designation as “Countries of Particular Concern” (CPC) or for inclusion on the “Special Watch List” (SWL).
    • Policy Recommendations: USCIRF provides policy recommendations to the President, Secretary of State, and Congress regarding actions to address violations of religious freedom.

    How does the UNSCIRF designate a country as a ‘Country of Particular concern’? 

    • Criteria for CPC Designation: A country is designated as a CPC if it engages in or tolerates “systematic, ongoing, and egregious violations” of religious freedom. This includes severe actions such as torture, prolonged detention without charges, and other flagrant denials of basic rights.
    • Recommendation Process: The USCIRF assesses countries based on its findings and recommends those that meet the CPC criteria. The U.S. Secretary of State ultimately decides whether to accept these recommendations and designate countries accordingly.

    How has the Indian government reacted to the report?

    • Rejection of Findings: The Indian government has strongly rejected the USCIRF’s report, labeling it as biased and politically motivated. Officials argue that the commission misrepresents facts regarding religious freedom in India.
    • Defense of Policies: The Ministry of External Affairs stated that India is committed to protecting the rights and freedoms of all its citizens, regardless of their faith, and urged USCIRF to refrain from agenda-driven narratives.

    Way forward: 

    • Engage in Diplomatic Dialogue: India should proactively engage with international bodies like USCIRF to address concerns, clarify its stance, and present factual data on religious freedom, fostering mutual understanding.
    • Strengthen Domestic Protections: India should reinforce legal and institutional frameworks to safeguard minority rights and religious freedoms, ensuring transparent mechanisms to address grievances and counter negative perceptions globally.

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  • Textile Sector – Cotton, Jute, Wool, Silk, Handloom, etc.

    Why is the textile industry struggling to perform better?

    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: Textile sector;

    Why in the News?

    Union Minister announced the Indian textile sector’s $350 billion business target by 2030, aiming to generate 3.5 crore jobs, despite recent challenges affecting the projected 10% CAGR.

    Present Status:

    • The Indian textile and apparel industry is currently valued at $153 billion (2021), contributing significantly to India’s GDP (2.3%) and manufacturing GVA (10.6%).
    • The industry employs around 105 million people and is highly dependent on global markets, with 80% of its capacity in MSMEs.
    • India was the third largest textile exporter in FY22, but faced a slowdown in FY23 and FY24, with significant drops in exports and domestic demand.

    What caused the slump in the Indian textile sector in the last two financial years?

    • Geopolitical Tensions: Global geopolitical issues reduced demand in key export markets.
    • High Raw Material Prices: Cotton and Man-Made Fibre (MMF) prices surged, hurting competitiveness.
    • Import Duties: A 10% import duty on cotton made Indian cotton more expensive than global prices.
    • Supply Chain Disruptions: Quality control measures affected the availability and price stability of MMF, further straining production.

    What are the other challenges?

    • Evolving Business Models: The rise of e-commerce and direct-to-consumer retailing is reshaping traditional business systems in the textile industry.
    • Sustainability Standards: Global brands are increasingly focusing on ESG (Environmental, Social, and Governance) criteria, forcing Indian manufacturers to adopt sustainable practices.
    • Changing Consumer Preferences: Growing demand for comfort wear, athleisure, and multi-brand outlets is shifting consumer behavior, impacting smaller or less-known brands.
    • Labour Costs and Productivity: Labour constitutes 10% of production costs, and the industry faces pressure to improve productivity through technology adoption and workforce skilling.

    Way forward: 

    • Enhance Global Competitiveness: The government should consider reducing import duties on key raw materials like cotton and stabilize supply chains by aligning domestic prices with international markets, ensuring competitiveness in global exports.
    • Invest in Technology and Sustainability: The industry should focus on adopting advanced technologies to improve productivity and meet global ESG sustainability standards, while simultaneously upskilling the workforce to handle these technological advancements effectively.

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  • Foreign Policy Watch: Indo-Pacific and QUAD

    A re-balancing of India’s great power relations

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

    Note4Students

    From UPSC perspective, the following things are important:

    Mains level: India’s relation with major powers in the world;

    Why in the News?

    India’s participation in the sixth Quad Leaders’ Summit in Wilmington, Delaware, U.S., on September 21, 2024, has heightened expectations for strengthening security cooperation among the “four key maritime democracies in the Indo-Pacific.”

    How can India navigate its relationships with major powers?

    • Strategic Autonomy: India maintains a policy of non-alignment, balancing relations with both the U.S. and Russia. It is careful not to be drawn into formal alliances but seeks to leverage its partnerships for national interests.
    • Quad vs. Russia: India’s engagement with the U.S.-led Quad strengthens its Indo-Pacific strategy, while its ties with Russia (a Quad opponent) focus on maintaining historical military and strategic benefits.
    • Russia-China Dynamics: As Russia moves closer to China, India seeks to rebalance, ensuring its interests are not sidelined, particularly in the context of China’s growing influence in Asia and unresolved border disputes.
    • U.S. Partnership: While deepening ties with the U.S., India is cautious about fully aligning with Washington’s agenda (for exports), especially regarding tensions with Russia.

    What role does India play in Global Conflict Resolution?

    • As a Peace facilitator: India is increasingly positioning itself as a peace facilitator, evidenced by the NSA (Ajit Dowal) of India’s outreach to Russia and France regarding the Ukraine conflict and peace plan.
    • As a ‘Vishwa Bandhu’: India’s engagement with both Ukraine and Russia shows its willingness to serve as an interlocutor, navigating complex diplomatic terrains while pushing for dialogue in global conflicts.
      • India’s attempts to mediate in conflicts like Ukraine emphasize its independent foreign policy, aiming to project itself as a “Vishwa Bandhu” (friend to the world).

    What implications do Domestic Issues have on India’s Foreign Policy?

    • Economic Dependencies: India’s reliance on Russian military equipment and discounted oil affects its stance on the Ukraine war, pushing for a more nuanced approach in balancing U.S. and Russian relations.
    • Border Tensions with China: Domestic security concerns, such as the standoff at the LAC, influence India’s foreign policy decisions, especially in its cautious relationship with China despite economic interdependence.
    • Public Opinion and Strategic Decisions: India’s foreign policy must account for domestic perceptions of global powers, balancing national security with economic growth and political stability in a complex international environment.

    Way forward: 

    • Strengthen Strategic Autonomy: India should continue balancing its relationships with major powers by deepening economic and security ties with both the U.S. and Russia, while maintaining flexibility to protect its national interests, particularly in the Indo-Pacific and vis-à-vis China.
    • Expand Peace Diplomacy: India can further leverage its role as a mediator in global conflicts, enhancing its international standing by promoting dialogue and peace initiatives.

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  • Urban Transformation – Smart Cities, AMRUT, etc.

    How high-performance buildings are the next step towards a sustainable future?

    Explained | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Sustainable Development;

    Mains level: Issues associated with Urbanization; Sustainable development; High-performance building;

    Why in the News?

    Due to rapid urbanization, India is facing the challenge of exceeding global energy efficiency and carbon benchmarks. High-performance buildings (HPBs) offer resilient, adaptive, and self-sufficient designs, promoting healthier indoor environments and better air quality.

    What are High-Performance Buildings (HPBs)?

    • These are structures designed to achieve peak levels of energy efficiency, sustainability, and occupant comfort.
    • They go beyond standard building practices by integrating advanced technologies and smart design strategies to minimize environmental impact, optimize resource use, and improve overall performance.
      • For example, Unnati (Greater Noida) and Indira Paryavaran Bhawan (New Delhi) showcase smart designs like sun-optimized facades and advanced HVAC systems, reducing energy use.

    Key features of HPBs include:

    • Energy Efficiency: HPBs use cutting-edge technologies like energy-efficient HVAC systems, smart lighting controls, and advanced insulation to reduce energy consumption.
    • Water Conservation: Techniques like greywater recycling and rainwater harvesting help HPBs minimize water usage.
    • Sustainable Materials: HPBs use eco-friendly, durable materials to reduce their carbon footprint and increase building longevity.
    • Site-Specific Design: HPBs leverage natural lighting, ventilation, and terrain-specific water management to enhance thermal efficiency and reduce energy demand.
    • Building Management Systems (BMS): HPBs employ BMS to monitor real-time performance metrics such as energy usage, water consumption, and indoor air quality, ensuring continuous optimization of resources.

    How can HPBs help Indian cities?

    • Resource Efficiency: HPBs help reduce energy consumption and promote water conservation, addressing India’s resource scarcity and fluctuating energy markets.
    • Urban Resilience: By being energy-efficient and self-sufficient, HPBs can help cities adapt to rising temperatures and urbanization pressures.
    • Healthier Environments: HPBs enhance indoor air quality, thermal comfort, and occupant well-being through intelligent systems like air filtration, natural lighting, and smart temperature control.
    • The strain on Infrastructure: HPBs can relieve pressure on public infrastructure by minimizing resource usage, making them crucial for fast-growing cities.
    • Sustainable Growth: HPBs are key to driving India’s transition to a low-carbon economy, supporting sustainable urbanization, and enhancing property value through long-term cost savings.

    Way Forward: 

    • Scaling Adoption of HPBs: Promote widespread implementation of HPBs through government incentives, regulations, and public-private partnerships, aligning with SDG Goal 11 (Sustainable Cities and Communities) to foster inclusive, safe, and resilient urban spaces.
    • Innovation and Capacity Building: Encourage innovation in building technologies and workforce training to develop HPBs, contributing to SDG Goal 7 (Affordable and Clean Energy) by ensuring energy efficiency and reducing carbon emissions in cities.

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  • Capital Markets: Challenges and Developments

    On the need for a different framework for passive Mutual Funds

    Explained | Economics | Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Passive mutual fund;

    Mains level: Liberalisation of mutual funds;

    Why in the News?

    On September 30, the Securities and Exchange Board of India (SEBI) launched the liberalized Mutual Funds Lite (MF Lite) framework specifically for passively managed schemes.

    What is a Passive Mutual Fund? 

    • A Passive Mutual Fund is a type of investment fund that follows a market index, like Nifty50, trying to match its performance.
    • They can be easily tracked, whereas, Active Mutual Funds need expert fund managers to actively monitor them and make investments in securities of their choice accordingly.
    • Since there’s no need for constant research, analysis, or active trading the costs are lower.

    Key highlights of the liberalized Mutual Funds Lite (MF Lite) framework:

    • Separate Framework for Passive Funds: It is tailored for passively managed schemes, which are less risky and require minimal active management.
    • Relaxed Entry Requirements: Lowered net worth requirement (₹35 crore), simplified criteria for sponsor eligibility (profitability, track record).
    • Encouraging New Players: It provides easier entry for new AMCs (Asset management companies) and market players in the passive fund segment.
    • Governance Flexibility: It has reduced oversight for trustees; operational responsibilities shifted to AMC boards, focusing on fees, expenses, and tracking error.
    • Cost Efficiency Focus: It emphasizes on lowering Total Expense Ratio (TER) and minimizing tracking error for better returns.
    • Simplified Disclosures: The Scheme Information Documents (SID) are simplified to focus on key metrics like benchmark index, TER, and tracking error.
    • Risk Management: Audit committees of AMCs can handle risk management duties due to the lower risk profile of passive funds.

    Why a Separate Framework for MF Lite is Needed?

    • Lower Risk Profile: Passively managed funds are generally less risky because they track established benchmarks like BSE Sensex or Nifty50, reducing the need for active decision-making.
    • Minimal Asset Manager Discretion: Unlike actively managed funds, asset managers of passive funds have limited discretion in asset allocation and investment objectives. They simply mirror the performance of the benchmark index.
    • Inapplicability of Existing Regulations: The current framework is designed primarily for actively managed funds, which involve more risks and require more oversight. It is less suitable for passive funds, which operate with predefined, transparent rules.
    • Cost-Effective Market Entry: To encourage new players and make the passive fund industry more competitive, SEBI introduced relaxed regulations regarding eligibility, net worth, and profitability.

    What about risks and disclosures? 

    • Success depends on Total Expense Ratio (TER) and tracking error. Lower costs and minimal deviation from the benchmark are crucial for performance.
    • Scheme Information Documents (SID) focus on key metrics like the benchmark name, TER, and tracking error, leaving out complex strategies.
    • Risk management responsibilities are streamlined, allowing the audit committee of the AMC to handle oversight, reflecting the lower risks of passive funds.

    Way forward: 

    • Enhance Investor Education: Develop targeted educational initiatives to inform retail investors about the benefits, risks, and operational aspects of passive mutual funds, fostering informed investment decisions.
    • Ongoing Regulatory Evaluation: Establish a framework for periodic assessment and adaptation of the MF Lite regulations to ensure they remain effective and relevant, promoting competition while safeguarding investor interests.

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