Note4Students
From UPSC perspective, the following things are important :
Mains level: Role of Governor;
Why in the News?
The Governor’s role as Chancellor of State universities has been a topic of significant debate. It is frequently misinterpreted as a post-independence mechanism designed to protect universities from political interference.
What are the implications of having the Governor serve as Chancellor for university autonomy?
- Reduced Autonomy: The role of the Governor as chancellor has historically restricted the autonomy of universities, as this model was inherited from colonial rule. The powers granted to Governors include appointing Vice-Chancellors and presiding over university bodies, which can lead to political interference rather than safeguarding academic independence.
- Political Interference: Instead of insulating universities from politics, the involvement of Governors often exacerbates political influence, particularly when Governors act in alignment with the Central government’s agenda, compromising the universities’ operational independence and academic freedom.
- Dual Authority System: The existence of both the Governor and State governments creates a dual authority that can lead to conflicting directives and administrative paralysis, particularly in Opposition-ruled states where disagreements may delay critical decisions such as Vice-Chancellor appointments.
How does the role of Governors as Chancellors align with or contradict the principles of federalism?
- Concurrent Legislative Powers in Education (Entry 25, List III, Seventh Schedule): Since education falls under the Concurrent List, the Governor’s role as Chancellor facilitates coordination between state and national education policies, promoting synergy.
- Governor Acting Beyond State Government’s Advice (Article 163): When Governors act in their discretionary capacity as Chancellors bypassing the elected state government undermines democratic accountability and state autonomy.
- State Authority over Universities (Entry 32, List II, Seventh Schedule): Control over universities is a state subject, and direct interference by Governors in university administration contradicts the federal principle of centralising authority.
What is the role of the President vs Governors as Chancellors?
- President: As the constitutional head, the functions are based on the aid and advice of the Council of Ministers at the Union level under Article 74 of the Constitution. The President does not directly act as a Chancellor for any educational institution.
- Governor: The Governor, appointed by the President under Article 155, acts as the constitutional head of the state and also serves as the Chancellor of State universities as per state laws, often with discretionary powers. This dual role blurs the line between their constitutional duties and state governance.
What alternative models for university governance could be considered?
- Governor as Ceremonial Chancellor: This model would limit the Governor’s powers, requiring them to act on the advice of the State Council of Ministers in university matters. States like Gujarat, Karnataka, and Maharashtra have implemented variations of this approach.
- Chief Minister as Chancellor: This model proposes that the Chief Minister take on a ceremonial role. While West Bengal and Punjab have passed bills for this system, they await Presidential assent.
- State-Appointed Chancellor: Implemented in Telangana, this model allows state governments to appoint a ceremonial Chancellor who is an eminent academic or public figure, thus ensuring greater alignment with local governance and accountability.
- Chancellor Elected by University Bodies: Similar to models in prestigious institutions like Oxford and Cambridge, this approach empowers university bodies and alumni to elect their Chancellor, promoting institutional self-governance and reducing political influence.
- Chancellor Appointed by University’s Executive Council: This model involves universities appointing their Chancellors through transparent selection processes within their governing bodies, fostering independence from external political pressures.
Way forward:
- Decentralize University Governance: Empower universities to elect or appoint Chancellors through their governing bodies, fostering institutional autonomy, and transparency to reduce external political interference.
- Restrict the Governor’s Role to Ceremonial Functions: Limit the Governor’s powers in university matters to a ceremonial capacity, ensuring that academic decisions align with the principles of state autonomy and federalism.
Mains PYQ:
Q Discuss the essential conditions for the exercise of the legislative powers by the Governor. Discuss the legality of the re-promulgation of ordinances by the Governor without placing them before the Legislature. (UPSC IAS/2022)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Climate change;
Why in the News?
Everyone will be watching Finance Minister Nirmala Sitharaman on February 1 as she presents the FY26 Budget, which needs to focus on climate issues and help India reach its Net-Zero goal by 2030.
How will the proposed climate finance taxonomy influence investment in sustainable projects?
- Standardization and Clarity: The proposed climate finance taxonomy will standardize definitions of green finance, providing clarity and reducing ambiguity for investors. This will help in distinguishing genuinely sustainable projects from those that are not, thereby building investor confidence.
| A green finance taxonomy is a classification system that defines which activities, investments, or projects are considered “green” or environmentally sustainable. |
- Increased Investment: By standardizing green finance definitions, the taxonomy can attract a significant portion of the ₹162.5 trillion ($2.5 trillion) needed to achieve India’s Nationally Determined Contributions (NDCs) by 2030. This is crucial for scaling up investments in sustainable projects.
- Market Readiness: The taxonomy will necessitate the development of institutional and technical infrastructure, including market readiness programs, verification systems, and capacity building of financial institutions. This will create a robust ecosystem for green investments.
- Differential Tax Treatment: The Budget could introduce differential tax treatment for investments aligned with the taxonomy, making green investments more attractive compared to conventional ones.
What specific measures are needed to incentivize green investments in the upcoming budget?
- Expanding PLI Schemes for Solar Module Supply Chain: India’s domestic solar module manufacturing capacity stands at 18-20 GW, while the annual demand is 30-35 GW. Imported solar panels are 65% cheaper than domestically produced ones.
- So, need to expand the scope of PLI schemes can enhance domestic capacity and reduce dependency on imports.
- Public-Private Partnerships for Railway Renewable Energy: Indian Railways has 51,000 hectares of land available for renewable energy projects, yet only 142 MW of solar capacity has been installed so far, against a potential of 5 GW. Public-private partnerships can unlock this potential and align with the Railways’ decarbonization goals.
- Establishing a Climate Action Fund for CBAM Compliance: India’s exports of CBAM-covered products to the EU amount to $8.22 billion annually. MSMEs, which contribute 30% of GDP and 45% of exports, often lack resources for decarbonization. A dedicated Climate Action Fund could support MSMEs in meeting compliance requirements and maintaining competitiveness.
- Fiscal Allocations for the RESCO Model: Only 6.34 lakh (4.37%) of 1.45 crore registrations under the PM Surya Ghar Muft Bijlee Yojana have been completed. Additionally, 60% of Indian households find rooftop solar installations unaffordable due to upfront costs.
- The RESCO model can help by enabling financing solutions to bridge this affordability gap.
- Tax Deductions and Depreciation Benefits for Circular Economy: India generates 62 million tonnes of waste annually, with only 30% being recycled. Transitioning to a circular economy could contribute ₹40 lakh crore ($624 billion) annually by 2050.
- Tax incentives and accelerated depreciation benefits can encourage private sector participation in recycling and resource efficiency.
What are the steps taken by the Government of India?
- National Action Plan on Climate Change (NAPCC): Launched in 2008, this comprehensive framework includes eight missions aimed at addressing climate change through renewable energy promotion, enhanced energy efficiency, sustainable habitat development, and more.
- Key missions include the National Solar Mission and the Green India Mission, which focus on increasing solar energy usage and enhancing forest cover, respectively.
- Commitment to Renewable Energy: India aims to achieve 500 GW of non-fossil fuel energy capacity by 2030 and has pledged to reduce total projected carbon emissions by one billion tonnes.
- Adaptation and Resilience Initiatives: The government has established the National Adaptation Fund on Climate Change (NAFCC) to support projects that enhance resilience against climate impacts.
- On the other hand, the State Action Plan on Climate Change (SAPCC) aligns with NAPCC objectives, focusing on sector-specific adaptations in agriculture, water management, and biodiversity.
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How can India ensure accountability and transparency in its climate financing efforts? (Way forward)
- Sovereign Green Bond Framework: Establish a sovereign green bond framework specifically for financing circular economy infrastructure, ensuring that funds are allocated transparently and used for their intended purposes.
- Verification Systems: Implement robust verification systems to ensure that projects funded through green finance taxonomy are genuinely sustainable and meet the required environmental standards.
- Capacity Building: Invest in capacity building of financial institutions to effectively implement the climate finance taxonomy, including training programs and technical support.
- Government Expenditure Classification: Commit to classifying government expenditure according to green criteria, ensuring that public funds are directed towards sustainable projects.
- Regular Reporting and Audits: Mandate regular reporting and audits of climate-related expenditures and projects to ensure accountability and transparency. This will help in tracking progress and making necessary adjustments to policies and allocations.
Mains PYQ:
Q ‘Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (UPSC IAS/2022)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Right to freedom of religion;
Why in the News?
The High Court was hearing a petition from two residents’ groups in Mumbai’s Nehru Nagar, Kurla (East), and Chunabhatti areas, complaining about mosques and madrasas using loudspeakers too loudly and at forbidden times.
What are the present directions by the Bombay High Court?
- The Court directed the state to implement a mechanism for controlling decibel levels in loudspeakers and sound-emitting devices at religious places, suggesting the use of “calibration or auto-fixation” of decibel limits.
- The Mumbai Police Commissioner is required to ensure police officers use mobile applications to measure decibel levels and identify violations.
- A four-step graded penalty system was prescribed, including caution for first-time offenders, fines for repeat violations, seizure of loudspeakers and cancellation of licenses for continued violations, and initiation of complaints against the violators.
Why did the Bombay High Court rule that the use of loudspeakers is not essential to religious practices (ERP)?
- Non-Essential Practice: The court emphasized that using loudspeakers for prayers or religious discourses does not constitute an essential part of any religion. It clarified that such practices are not protected under Article 25 of the Constitution, which guarantees the freedom to practice religion.
- Public Health Concerns: The court highlighted that noise pollution poses significant health hazards. It asserted that allowing the unrestricted use of loudspeakers could infringe on the rights of residents living nearby, thus prioritizing public interest and health over the claimed religious rights associated with loudspeaker use.
- Legal Framework Compliance: The ruling reinforced that all religious institutions must comply with noise pollution regulations, specifically the Noise Pollution (Regulation and Control) Rules, 2000, which set permissible noise levels in residential areas. The court directed strict enforcement of these laws, indicating that violations should result in penalties rather than exemptions based on religion.
What are the Supreme Court Judgements related to essential religious practices (ERP)?
- Shirur Mutt Case (1954): This case established the foundation for the ERP doctrine, where the Supreme Court ruled that Article 25 protects not only religious beliefs but also the outward expressions of those beliefs through rituals and ceremonies. The court emphasized that what constitutes an essential part of religion should be determined based on the doctrines of that religion itself.
- Durgah Committee Case (1961): In this ruling, the Supreme Court adopted a more restrictive approach, stating that only practices essential and integral to a religion are protected under Article 25. The court differentiated between superstitious practices and those that are essential, marking a shift to a narrower interpretation of protected religious practices.
- Ismail Faruqui v. Union of India (1995): This case involved the Babri Masjid land acquisition issue. The Supreme Court held that while offering prayers is an essential Islamic practice, doing so in a mosque is not necessarily required unless the mosque has specific religious significance, highlighting an inconsistency in applying the ERP test.
- Dr. Mahesh Vijay Bedekar v. Maharashtra (2016): The Supreme Court’s ruling emphasized that the use of loudspeakers is not an essential religious practice and cannot be claimed as a fundamental right under Article 25 (freedom of religion) or Article 19(1)(a) (freedom of speech and expression).
- Sabarimala Temple Entry Case (2018): The Supreme Court ruled that barring women from entering the Sabarimala temple violated their rights to equality and non-discrimination.
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Way forward:
- Implementation of Strict Noise Regulations: Ensure effective enforcement of noise pollution laws, using technology like mobile apps to monitor decibel levels, and impose a clear and consistent penalty system for violations at religious places.
- Public Awareness and Sensitization: Raise awareness about the non-essential nature of loudspeaker use in religious practices, while balancing religious freedom with public health and the rights of nearby residents. Encourage dialogue between religious institutions and local authorities to find peaceful solutions.
Mains PYQ:
Q What are the challenges to our cultural practices in the name of Secularism? (UPSC IAS/2019)
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PYQ Relevance:
Q) To what extend can Germany be held responsible for causing the two World Wars? Discuss critically. (UPSC CSE 2015) |
Mentor’s Comment: UPSC Mains has always focused on World Wars (2015) and India’s relations with Israel (2018).
On January 27, 1945, Soviet soldiers liberated Auschwitz-Birkenau (network of Nazi concentration and extermination camps), finding 8,000 starving prisoners and remnants of the 1.1 million, mostly Jewish, who perished there. With Nazi records destroyed, exact figures are uncertain. On this anniversary, survivors and world leaders gather to honor the victims and renew the commitment to prevent genocide.
Today’s editorial talks about Genocide in the world and laws related to Genocide. It will help in GS Paper 2 Internqtional relation and GS Paper 1 World History.
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Let’s learn!
Why in the News?
World leaders will gather in Poland to commemorate Holocaust Memorial Day and the 80th anniversary of the liberation of Auschwitz-Birkenau, a Nazi concentration camp.
What is Holocaust?
- The Holocaust, known in Hebrew as the Shoah , refers to the systematic, state-sponsored genocide of approximately six million Jews by Nazi Germany and its collaborators during World War II, primarily between 1941 and 1945.
- This atrocity was characterized by mass murders carried out through various means, including mass shootings and the use of extermination camps, such as Auschwitz-Birkenau and Treblinka.
What is Constitutes Genocide?
- Genocide is defined under international law as a series of acts committed with the intent to destroy, in whole or in part, a national, ethnical, racial, or religious group. This definition is codified in Article II of the 1948 United Nations Convention on the Prevention and Punishment of the Crime of Genocide (Genocide Convention).
How is it Recognized Internationally?
- Legal Frameworks: The 1948 Genocide Convention defines genocide and obligates signatory states to prevent and punish the crime. This convention has been incorporated into the statutes of various international tribunals, including the International Criminal Court (ICC), establishing a legal basis for prosecution and accountability for genocidal acts.
- International Courts and Tribunals: The International Court of Justice (ICJ) and other tribunals have jurisdiction to adjudicate cases related to genocide.
- They interpret and enforce the provisions of the Genocide Convention, allowing for legal proceedings against individuals or states accused of committing genocide.
- Recognition by States and Organizations: Various countries and international organizations have formally recognized specific events as genocides, which can influence diplomatic relations and international responses.
- For example, numerous nations have acknowledged the Armenian Genocide, while the European Parliament has recognized the actions of ISIS against Yazidis as genocide.
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Why do global powers often remain silent or inactive in the face of genocidal acts?
- Geopolitical and Strategic Interests: Global powers often prioritize alliances and regional influence over humanitarian intervention. For example: Rwanda Genocide (1994): Despite clear warnings, the UN and major powers failed to act decisively as Rwanda was not strategically significant to their interests, leading to the massacre of over 800,000 Tutsis and moderate Hutus.
- Economic Dependencies and Trade Priorities: Economic ties, such as energy or trade partnerships, often deter powers from addressing genocidal acts. For example: China’s Treatment of Uyghur Muslims: Countries like the U.S. and EU hesitate to impose strong measures against China due to its role as a major trading partner, despite widespread reports of atrocities in Xinjiang.
- International Bureaucratic Deadlock: Global institutions like the UN are often hindered by vetoes and a lack of consensus among major powers. For example: Syrian Civil War: Allegations of genocide and mass atrocities in Syria were met with inaction, as Russia and China vetoed resolutions in the UN Security Council, paralyzing international intervention.
What responsibilities do nations have to prevent and respond to genocide?
- Primary Responsibility to Protect: States have the primary obligation to protect their own populations from genocide, war crimes, ethnic cleansing, and crimes against humanity.
- This responsibility is affirmed by the 2005 United Nations World Summit Outcome, which emphasizes that national governments must take proactive measures to prevent such atrocities within their territories.
- International Cooperation and Support: The international community is obligated to assist states in fulfilling their protective responsibilities. This includes providing diplomatic, humanitarian, and other peaceful means to help protect populations at risk of genocide. If a state is manifestly failing to protect its citizens, the international community must be prepared to take collective action, including potential military intervention, in accordance with the UN Charter.
- Early Warning Systems and Preventive Measures: Nations and international organizations should establish early warning systems to identify signs of potential genocidal acts. This involves gathering information, promoting human rights, addressing root causes of conflict, and implementing strategies that foster social cohesion and prevent discrimination.
Way forward:
- Strengthen International Accountability Mechanisms: Nations must collaborate to reinforce the effectiveness of international courts and tribunals to ensure swift and impartial prosecution of genocidal acts. This includes reforming veto power in the UN Security Council to prevent deadlocks in responding to atrocities.
- Invest in Prevention and Early Intervention: Establish robust early warning systems and prioritize diplomacy, economic aid, and social cohesion initiatives to address the root causes of conflicts, reducing the risk of genocidal acts before they escalate.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Challenges in the Health sector;
Why in the News?
A report by the Lancet Diabetes and Endocrinology Commission emphasized body fat distribution, beyond Body Mass Index (BMI), as a vital health and disease risk indicator. In this response, India has revised its obesity guidelines after 15 years.
What is the present status of Obesity?
- Rising Obesity Rates: The obesity rate in India has significantly increased, with approximately 9.8% of women and 5.4% of men classified as obese as of 2022, compared to just 1.2% for women and 0.5% for men in 1990. This translates to around eight crore individuals being classified as obese, including one crore children aged 5 to 19 years.
- Economic Impact and Healthcare Costs: It is projected that India will spend about $13 million annually on treating obesity-related illnesses by 2025 as per the World Obesity Federation. The rising prevalence of obesity is associated with various non-communicable diseases, including diabetes and cardiovascular issues.
- Changing Demographics: The prevalence of obesity is expected to continue rising, with forecasts suggesting that by 2040, around 30.5% of men and 27.4% of women will be either overweight or obese.
What are the initiatives taken by the government?
- National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases, and Stroke (NPCDCS): This program aims to screen individuals for obesity-related risk factors and ensure early intervention to prevent complications associated with obesity. It is part of the broader National Health Mission.
- Eat Right India Movement: Launched by the Food Safety and Standards Authority of India (FSSAI), this initiative focuses on transforming the food system to promote safe, healthy, and sustainable food for all citizens. It includes awareness campaigns about nutrition and healthy eating habits.
- Ayushman Bharat Health Wellness Centres: These centres strengthen preventive healthcare by promoting wellness activities and targeted communication at the community level, addressing non-communicable diseases (NCDs) including obesity.
- Regulatory Measures: The FSSAI has set guidelines to limit trans fats in food products to no more than 2% by weight and has introduced labelling regulations that require nutritional information on food packaging, helping consumers make informed dietary choices.
What are the new guidelines?
- Terminology Update: The term “overweight” has been removed, categorizing obesity into Grade I (BMI >23 kg/m² without health issues) and Grade II (BMI >23 kg/m² with associated health limitations) to emphasize nuanced stages of obesity.
- Focus on Abdominal Obesity: Waist circumference (>90 cm for men, >80 cm for women) and waist-to-height ratio are prioritized as critical measures for assessing health risks in Asian Indians
Why has it been revised after 15 years?
- Rising Prevalence of Obesity: The prevalence of obesity in India has doubled over the past two decades, with significant increases observed in both adults and children. This alarming trend necessitated a reevaluation of existing guidelines to address the growing public health crisis effectively.
- Limitations of Previous Guidelines: The previous guidelines, established in 2009, relied solely on Body Mass Index (BMI) for diagnosing obesity.
- This approach was found inadequate as it did not consider critical factors such as abdominal fat distribution and the unique metabolic responses of Asian Indians, who tend to develop obesity-related health issues at lower BMI thresholds compared to Western populations.
- Global Framework Alignment: The revised guidelines align with global recommendations from the Lancet Diabetes & Endocrinology Commission, which advocates for a broader understanding of obesity as a chronic disease rather than merely excess weight.
What are the health issues that can develop due to obesity?
- Cardiovascular Diseases: Obesity significantly increases the risk of developing heart disease and stroke. It contributes to high blood pressure and unhealthy cholesterol levels, which are critical risk factors for cardiovascular conditions.
- Type 2 Diabetes: Excess body weight can disrupt the body’s ability to use insulin effectively, leading to insulin resistance and a higher likelihood of developing type 2 diabetes. This chronic condition is closely linked to obesity and can result in severe health complications if not managed properly.
- Certain Cancers: Obesity is associated with an elevated risk of various cancers, including breast, colon, endometrial, and liver cancers. The increased body fat may influence hormone levels and inflammation, contributing to cancer development.
Way forward:
- Comprehensive Public Health Strategies: Strengthen preventive measures through awareness campaigns, promote healthy lifestyles, regulate unhealthy food products, and expand screening programs under initiatives like NPCDCS and Ayushman Bharat.
- Collaborative Policy Reforms: Enhance inter-sectoral collaboration to address urbanization, sedentary lifestyles, and dietary patterns while aligning with global obesity management frameworks for effective, long-term solutions.
Mains PYQ:
Q Public health system has limitations in providing universal health coverage. Do you think that private sector can help in bridging the gap? What other viable alternatives do you suggest? (UPSC IAS/2015)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: India-Indonesia relations;
Why in the News?
Indonesian President Prabowo Subianto’s visit to India as the chief guest at the Republic Day parade highlighted the strong and historic relationship between the two countries.
Evolution of the bilateral relationship between India and Indonesia
- Historical Foundations and Early Cooperation: India and Indonesia established diplomatic relations in 1949, following India’s recognition of Indonesia’s independence in 1946.
- The early years were marked by a strong partnership against colonialism, highlighted by President Sukarno’s participation as the chief guest at India’s first Republic Day in 1950 and their collaboration during the Bandung Conference in 1955, which laid the groundwork for the Non-Aligned Movement.
- Revitalization in the 1990s: The relationship saw a significant revival with India’s ‘Look East Policy’ initiated in the 1990s, aimed at strengthening ties with Southeast Asian nations.
- This period marked increased political engagement and economic cooperation, culminating in the establishment of a strategic partnership during President Susilo Bambang Yudhoyono’s visit to India in 2005.
- Contemporary Engagement and Strategic Partnership: Recent years have seen a deepening of bilateral relations through comprehensive agreements on defence, maritime security, and economic collaboration.
- The signing of the “Shared Vision of Maritime Cooperation” in 2018 and ongoing joint military exercises reflect a commitment to enhancing security cooperation amid regional challenges, particularly concerning China’s assertiveness in the South China Sea.
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What are the implications of India-Indonesia bilateral relations?
- Strengthened Strategic Partnership: The agreement to position an Indonesian liaison officer at India’s Information Fusion Centre highlights a commitment to enhance maritime cooperation and information sharing, which is crucial for regional security amidst rising tensions in the South China Sea.
- Collective Security Efforts: Both nations have emphasized the importance of combating terrorism and have agreed to enhance anti-terror cooperation. This reflects a mutual understanding of shared security challenges and the need for collaborative responses.
- Maritime Dialogue: The establishment of early dialogues on maritime security and cyber security indicates a proactive approach to address emerging threats and maintain stability in the Indo-Pacific region.
How will the agreements reached during this visit impact regional security dynamics?
- Promotion of Peaceful Resolutions: By advocating for a “full and effective” Code of Conduct (COC) in the South China Sea, India and Indonesia are positioning themselves as key players in promoting a rules-based order in the region, countering China’s assertive claims.
- Support for International Law: Their joint statement reinforces adherence to international laws, including the 1982 UNCLOS, which could serve as a counterbalance to unilateral actions by China in the South China Sea.
- Enhanced Cooperation with ASEAN: Both countries are likely to strengthen ties with ASEAN nations that share similar concerns about China’s maritime ambitions, fostering a united front in regional diplomacy.
What economic benefits are anticipated from enhanced collaboration?
- Local Currency Transactions: The emphasis on using local currencies for bilateral trade is expected to reduce transaction costs and enhance trade volumes between India and Indonesia, thereby boosting economic ties.
- Increased Trade Opportunities: Enhanced cooperation in sectors such as hydrography and defense could open new avenues for economic collaboration, potentially leading to increased investments and joint ventures.
- Maritime Commerce: By advocating for unimpeded lawful maritime commerce, both nations aim to secure vital trade routes that are crucial for their economies, particularly in light of the South China Sea’s significance as a global trade corridor.
Way forward:
- Strengthen Multilateral Diplomacy: India and Indonesia should continue to collaborate with ASEAN and other regional stakeholders to promote a unified stance on maritime security, focusing on the full implementation of the South China Sea Code of Conduct and adherence to international law.
- Enhance Economic Integration: Both nations should prioritize deepening economic ties through initiatives like local currency transactions and joint ventures in defence and maritime sectors, fostering sustainable growth and bolstering regional economic stability.
Mains PYQ:
Q Mention the significance of straits and isthmus in international trade. (UPSC IAS/2022)
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From UPSC perspective, the following things are important :
Mains level: Capital Market;
Why in the News?
SEBI is collaborating with the mutual fund industry to find ways to make monthly SIPs of just Rs 250 possible, aiming to encourage more people from lower-income groups to invest in mutual funds.
What is Sachetisation?
- Sachetisation refers to offering products in small, affordable units, making them accessible to a broader consumer base, especially those in price-sensitive segments.
- The term originated from the FMCG (Fast Moving Consumer Goods) sector, where products like shampoos were made available in small sachets at low prices to cater to low-income consumers.
- SEBI is now proposing a similar approach for mutual funds, allowing small-ticket investments through SIPs (Systematic Investment Plans) with low monthly amounts (such as Rs 250).
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What are the significances of Sachetisation?
- Affordable Financial Products: Just as small sachets of consumer goods made them accessible to lower-income groups, small-ticket SIPs in mutual funds can make investment opportunities available to a larger section of the population, particularly those who may not have the financial capacity to invest larger amounts.
- Promoting Financial Empowerment: By lowering the entry barrier for mutual fund investments, sachetisation can help empower underserved communities and individuals by enabling them to participate in the growing financial markets and benefit from the potential returns.
- Expanding Reach: This approach would encourage mutual fund companies to expand their reach to remote locations, helping them penetrate rural and low-income markets, and promote a wider culture of saving and investing.
- Financial Inclusion for the Bottom of the Pyramid: The primary target of sachetisation in mutual funds is low-income groups that have limited access to traditional investment products. By offering small, regular investments, SEBI aims to promote financial inclusion at the grassroots level.
How does it work?
- SEBI has proposed introducing small ticket SIPs at Rs 250 per month, which would allow new investors from low-income groups to participate in mutual funds without the burden of higher minimum investment requirements. This contrasts with existing schemes that often require a minimum SIP of Rs 500 or more.
- Investors can commit to a small ticket SIP for a duration of five years (60 installments), although they have the flexibility to withdraw or stop their investments without restrictions if needed. This structure encourages consistent investment while providing an exit option for investors.
- To facilitate the success of small ticket SIPs, SEBI plans to implement discounted rates for intermediaries and reimburse certain costs from the Investor Education and Awareness Fund. This will help asset management companies (AMCs) break even more quickly on their investments in these small ticket offerings.
- The sachetised SIPs will be available under specific mutual fund schemes, excluding high-risk options like small-cap and mid-cap equity schemes, which are deemed unsuitable for new investors from lower-income backgrounds. This targeted approach aims to safeguard these investors while still encouraging their entry into the market.
- To further promote financial inclusion, SEBI proposes incentives for distributors who successfully guide investors through 24 instalments of the small ticket SIP, thereby enhancing participation and support for new investors in mutual funds.
Conclusion: The strategy could result in a significant increase in domestic investor participation, contributing to the resilience of India’s equity market and fostering long-term financial stability.
Mains PYQ:
Q Comment on the important changes introduced in respect of the Long term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019. (UPSC IAS/2018)
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From UPSC perspective, the following things are important :
Mains level: Debate on Death Penalty;
Why in the News?
A Kolkata court sentenced Sanjay Roy to life imprisonment for the rape and murder of a 31-year-old doctor in August 2024, despite widespread public demand for the death penalty.
What are the current statistics around the Death Penalty in India?
- As of the Annual Statistics Report 2023, 561 prisoners are under a sentence of death in India.
- Despite the significant number of death sentences, India sees more than 31,000 reported rape cases annually, indicating a mismatch between the deterrent effect of capital punishment and the reality of crime rates.
- The death penalty in India is often seen as disproportionately applied to the poor and marginalized sections of society.
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What are the key arguments around the Death Penalty (For/Against)?
The arguments in favour of the death Penalty:
- Retribution and Justice: Supporters argue that the death penalty serves as a just punishment for the “rarest of rare” cases, especially for heinous crimes like rape and murder. The desire for justice for victims and their families, including a sense of closure, is often emphasized.
- Deterrence: Some proponents believe that the death penalty deters heinous crimes, particularly acts of violence like murder and rape, by instilling fear of the ultimate punishment.
- Public Sentiment: In the case of particularly gruesome crimes, public outcry demands strong actions like the death penalty, seeing it as a symbol of societal moral condemnation.
The arguments against the death penalty:
- Moral and Existential Arguments: The death penalty is viewed as an act of violence, and critics argue that one form of violence cannot be justified as a solution for other forms of violence. It is considered inhumane and degrading by organizations like Amnesty International.
- Ineffectiveness as a Deterrent: Studies from countries that have abolished the death penalty (e.g., Denmark, Norway, the Netherlands) show no significant rise in crime rates, indicating that the death penalty does not effectively deter crime more than life imprisonment or other punishments.
- Disproportionate Application: The death penalty is disproportionately applied to the poor, marginalized, and downtrodden, as opposed to affluent or powerful individuals, raising concerns about systemic injustice.
- Diverts Focus from Structural Issues: Instead of focusing on capital punishment, critics argue the real issue lies in the cultural normalization of violence and toxic masculinity, which drives crimes like rape and murder. Emphasis should be on education, socialization, and cultural transformation.
What are the key reforms and guidelines established after the Bachan Singh v. State of Punjab Case?
- Rarest of Rare Doctrine: The Supreme Court, in Bachan Singh v. State of Punjab, ruled that the death penalty should only be imposed in the “rarest of rare” cases. This ruling set a framework for judicial discretion in sentencing, ensuring that the death penalty is applied only in cases where the crime is so grave that life imprisonment would not suffice.
- Guidelines for Sentencing: The court sets guidelines to determine whether a crime warrants the death penalty, including the nature of the crime, the circumstances, and whether the accused is beyond reform or rehabilitation. It emphasized considering the “mitigating factors,” such as the background of the accused.
- Judicial Review: The ruling clarified that the death sentence must be subject to judicial review and that higher courts must ensure that the death penalty is only handed out after thorough deliberation on all aspects of the case.
- Focus on Rehabilitation: The case pointed towards the importance of rehabilitation, requiring courts to assess the potential for the accused to reform before considering a death sentence.
Way forward:
- Strengthening Judicial Scrutiny and Transparency: To ensure the death penalty is applied fairly and consistently, there should be enhanced judicial oversight which includes a thorough review of sentencing decisions at multiple levels.
- This could involve greater emphasis on mitigating factors and the potential for rehabilitation, ensuring that capital punishment is reserved for the “rarest of rare” cases.
- Focus on Preventive Measures and Social Reform: Rather than relying solely on the death penalty, efforts should be redirected toward addressing the root causes of heinous crimes.
- This includes tackling societal issues such as gender inequality, toxic masculinity, and cultural normalization of violence, while investing in education, social reform, and stronger support systems for survivors of violence.
Mains PYQ:
Q Instances of President’s delay in commuting death sentences has come under public debate as denial of justice. Should there be a time specified for the President to accept/rejectsuch petitions? Analyse. (UPSC IAS/2014)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Constitutional values;
Why in the News?
As we mark 75 years since the Constitution of India came into effect, it’s important to look back and assess how the country has followed its core values before deciding the way forward.
What are the foundational values that define the Indian state?
- Sovereignty, Democracy, and Republic: The Constitution of India guarantees the sovereignty of the nation and democratic governance by the people through elected representatives.
- Liberty, Equality, and Fraternity: These values are enshrined in the Preamble and reflect the commitment to social democracy.
- Justice: Social, economic, and political justice is emphasized to create an inclusive society.
- Federalism: Though not explicitly mentioned, federalism underpins the constitutional framework, balancing powers between the Union and States.
- Secularism: Ensures the separation of religion and state, guaranteeing religious freedom and equality.
- Rule of Law: Establishes the supremacy of the Constitution and equality before the law.
- Unity in Diversity: Encourages harmony and fraternity among diverse cultural, linguistic, and regional groups.
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How have recent legislative and political changes impacted India’s commitment to these values?
- Secularism: India’s constitutional commitment to secularism has been challenged by the laws related to religious identity.
- The Citizenship Amendment Act (CAA), 2019, which provides citizenship to persecuted religious minorities from neighboring countries but excludes Muslims, has raised concerns about violating Article 14 (Right to Equality) and the secular ethos of the Constitution.
- Social Justice: The push for affirmative action through reservations continues, but new measures have sparked debates about inclusivity.
- The introduction of the Economically Weaker Sections (EWS) reservation (103rd Constitutional Amendment) raised debates over its exclusion of marginalized communities already under the SC/ST/OBC reservation framework, potentially diluting the focus on caste-based historical injustices.
- Federalism: Legislative changes have altered the balance between the Union and states, raising concerns about cooperative federalism.
- The abrogation of Article 370 in Jammu and Kashmir and its reorganization into Union Territories in 2019 was criticized for bypassing the state legislature, raising questions about federalism under Article 1 and Article 370.
- Freedom of Speech and Expression: Political changes have led to an environment where dissent and criticism of the government are often met with punitive action.
- The use of sedition laws under Section 124A of the IPC and the Unlawful Activities (Prevention) Act (UAPA) against journalists and activists has raised concerns about stifling democratic dissent.
- Inclusive Development: Legislative efforts to boost development have sometimes led to neglect of environmental sustainability and marginalized communities.
- The Forest Rights Act (FRA), 2006, intended to protect the rights of tribal communities, has faced dilution through recent amendments to environmental laws, prioritizing infrastructure over community rights.
- Equality and Gender Justice: Legislative progress has been seen, but gaps remain in implementation.
- The Criminal Law (Amendment) Act, 2018, which introduced stringent punishment for crimes against women, shows legislative intent. However, underreporting and delayed justice continue to challenge gender equality.
What steps can be taken to reinforce India’s foundational values moving forward? (Way forward)
- Strengthening Judicial Oversight and Constitutional Safeguards: To reinforce India’s foundational values, it is essential to strengthen the role of the judiciary in safeguarding constitutional rights to ensure that laws and policies align with the principles of equality, secularism, and justice.
- Inclusive and Transparent Policy Making: Policies should be designed to foster inclusive development, ensuring that marginalized communities are not left behind.
- Strengthening Inclusive Governance and Social Justice: Ensure that affirmative action policies, including reservations, are consistently aligned with the principle of social justice, addressing the historical and contemporary needs of marginalized communities.
- Promoting Secularism and Protecting Fundamental Rights: Strengthen and uphold the secular fabric of the nation by ensuring that laws and policies respect religious diversity and equality, in line with the Constitution’s guarantees.
Mains PYQ:
Q What was held in the Coelho case? In this context, can you say that judicial review is of key importance amongst the basic features of the Constitution? (UPSC IAS/2016)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Election Commission of India; Issues related to voters;
Why in the News?
January 25 is the 75th anniversary of the Election Commission of India, celebrated as ‘National Voters Day’ to recognize its role in protecting democracy and ensuring fair elections in India.
What are the current challenges facing the ECI?
The Election Commission of India (ECI) is currently facing significant challenges that threaten its credibility and effectiveness:
- Electoral Roll Manipulation: Allegations of mass enrolment of dubious voters have emerged, particularly highlighted during the Maharashtra State elections, where the ECI enrolled 9.7 crore voters despite an estimated adult population of only 9.54 crore. This discrepancy raises concerns about potential government interference in electoral processes.
- Verification Issues: Questions regarding the verification of new voters have surfaced, especially with a reported 48 lakh new registrations occurring in just six months. The legitimacy of these voters and whether proper verification processes were followed remain unaddressed.
- Public Trust: The ECI’s perceived lack of transparency and responsiveness to these concerns has led to a decline in public trust. Critics argue that the commission has been dismissive of legitimate inquiries regarding electoral integrity, which undermines its authority.
How has the role of the Election Commission evolved over time?
- Established in 1950, the ECI was designed to ensure free and fair elections in India, independent from governmental influence.
- Founding leaders like Dr. B.R. Ambedkar emphasized the importance of an autonomous body for maintaining electoral integrity.
- Technological Advancements: The ECI has adapted to technological changes by implementing electronic voting machines (EVMs) and online voter registration systems, aiming to streamline the electoral process and enhance voter participation.
- Voter Education Initiatives: The commission has increasingly focused on voter education and awareness campaigns, particularly through National Voters’ Day celebrations, which aim to engage young voters and promote democratic values.
What reforms are necessary to strengthen the EC’s authority and public trust?
To enhance its effectiveness and restore public confidence, several reforms are necessary:
- Biometric Verification: Implementing Aadhaar-based biometric verification for voter registration could help eliminate ghost voters and ensure that only eligible citizens are enrolled. This would strengthen the integrity of electoral rolls.
- Transparency Measures: The ECI should adopt greater transparency by publicly releasing data related to voter enrolment and verification processes. This would address concerns about electoral roll manipulation and build trust among citizens.
- Strengthening Legal Framework: Revising existing laws to provide the ECI with more robust powers to oversee and enforce electoral integrity could prevent interference from political entities and ensure fair elections.
Conclusion: The ECI should establish robust mechanisms for public scrutiny by releasing detailed voter enrolment and verification data, coupled with regular audits, to rebuild trust and ensure accountability.
Mains PYQ:
Q Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. (UPSC IAS/2022)
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Why in the News?
The government recently published a factsheet on the 2023-24 Household Consumption Expenditure Survey (HCES), highlighting a reduction in poverty levels across both urban and rural areas.
What are the key findings of the report?
- Average MPCE and Imputed Values: In 2023-24, the average Monthly Per Capita Expenditure (MPCE) was Rs. 4,122 in rural areas and Rs. 6,996 in urban areas, excluding the value of free items provided through social welfare schemes.
- Growth in MPCE and Urban-Rural Gap: Compared to 2022-23, the MPCE in nominal terms grew by approximately 9% in rural areas and 8% in urban areas. The urban-rural MPCE gap narrowed from 84% in 2011-12 to 71% in 2022-23, further declining to 70% in 2023-24, indicating robust consumption growth in rural areas.
- Consumption Trends by Population Segments: The highest increase in MPCE in 2023-24, compared to 2022-23, was observed among the bottom 5-10% of India’s population, for both rural and urban households.
- Composition of Expenditure: Non-food items accounted for 53% of rural MPCE and 60% of urban MPCE in 2023-24. Within the food basket, beverages, refreshments, and processed foods dominated expenditure, while in the non-food category, conveyance, clothing, entertainment, and durable goods were significant contributors. Urban households also allocated about 7% of non-food expenditure to rent.
- Decline in Consumption Inequality: The rural Gini coefficient dropped from 0.266 in 2022-23 to 0.237 in 2023-24, and the urban coefficient fell from 0.314 to 0.284 during the same period.
| Note: The Gini coefficient is a statistical measure used to quantify income or consumption inequality within a population, ranging from 0 (perfect equality) to 1 (maximum inequality). |
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What are the concerns related to the HCES data?
- Incomparability of Data Sets: The methodology used in the 2022-23 HCES differs significantly from previous surveys, making it difficult to compare results over time. The introduction of a “modified mixed reference period” complicates direct comparisons with earlier data collected under different methodologies.
- Sampling Bias: There are concerns that the survey may not adequately represent extremely poor households, leading to an overestimation of average expenditures. This bias could arise from changes in sampling strategies that favor more affluent households.
- Data Availability Issues: The absence of recent and reliable consumption data prior to the 2022-23 survey has led to a reliance on outdated estimates, which may not accurately reflect current poverty levels. The last comprehensive survey before this was conducted in 2011-12.
What does the consumption pattern tell about poverty in rural and urban regions?
- Divergent Poverty Levels: The average monthly per capita expenditure (MPCE) indicates significant disparities between rural and urban areas, with rural areas averaging Rs 4,122 and urban areas Rs 6,996 in 2023-24. This suggests that urban populations generally have higher consumption levels.
- Survival on Minimal Incomes: Reports indicate that a substantial portion of India’s population survives on less than Rs 100 per day, highlighting persistent poverty despite claims of decline. This raises questions about the adequacy of the poverty line used for estimation.
What are the criticisms faced by the Multidimensional Poverty Index?
NITI Aayog, the policy think tank of the Government of India, adopted the Multidimensional Poverty Index (MPI) as a measure to evaluate poverty in India.
- Methodological Concerns: Critics argue that the MPI’s reliance on equal weighting for health, education, and living standards may oversimplify the complexities of poverty. The selection of indicators can significantly influence outcomes, potentially leading to biased representations.
- Dynamic Nature of Poverty: The MPI may not adequately capture the fluidity and changing nature of poverty over time, as it relies on static indicators that do not reflect immediate economic conditions or shocks such as those experienced during the COVID-19 pandemic.
- Political Implications: Some economists suggest that using MPI as a primary measure for poverty could be politically motivated, aiming to present favourable statistics while ignoring deeper economic issues such as stagnant real wages and rising inequality.
Way forward:
- Strengthen Data Collection: Conduct regular and comprehensive Household Consumption Expenditure Surveys (HCES) to ensure updated and accurate poverty assessments. This will bridge data gaps and provide a more reliable basis for policy decisions.
- Refine Poverty Metrics: Combine the Multidimensional Poverty Index (MPI) with traditional consumption-based measures to capture a holistic and dynamic picture of poverty, accounting for region-specific and pandemic-induced challenges.
Mains PYQ:
Q “The incidence and intensity of poverty are more important in determining poverty based on income alone”. In this context analyse the latest United Nations Multidimensional Poverty Index Report. (UPSC IAS/2020)
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Why in the News?
The Union Cabinet has approved the extension of the National Health Mission (NHM) for an additional five years(2025 to 2030).
What are the new Components of the NHM and initiatives launched?
- Digital Health Initiatives: The U-WIN platform was launched in January 2023 to improve vaccination tracking for pregnant women, infants, and children, expanding to 65 districts across 36 states/UTs by the end of FY 2023-24.
- Expanded Healthcare Programs: NHM has overseen the launch of initiatives such as the National Sickle Cell Anaemia Elimination Mission and the Measles-Rubella Elimination Campaign, enhancing disease control efforts.
- Strengthening Human Resources: The NHM has focused on increasing healthcare personnel, engaging over 1.2 million additional healthcare workers across various roles since its last extension.
What are the key achievements of the National Health Mission during its previous tenure?
- Reduction in Maternal and Child Mortality:
- Maternal Mortality Ratio (MMR): Declined from 130 per lakh live births in 2014-16 to 97 per lakh in 2018-20 (25% reduction).
- Under-5 Mortality Rate: Decreased from 45 per 1,000 live births in 2014 to 32 in 2020 (75% decline).
- Infant Mortality Rate (IMR): Reduced from 39 per 1,000 live births in 2014 to 28 in 2020. India is on track to achieve the SDG targets for maternal, child, and infant mortality before 2030.
- Healthcare Workforce Expansion: The NHM facilitated the engagement of approximately 2.69 lakh additional healthcare workers in 2021-22 alone, contributing to improved healthcare delivery.
- Disease Control Improvements: Enhanced surveillance and control measures for diseases like tuberculosis have led to a decrease in incidence rates, contributing to overall public health improvements.
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What are the financial implications and commitments associated with the NHM’s extension?
- Budgetary Allocation and Funding Structure: The National Health Mission (NHM) continues based on recommendations from the Expenditure Finance Committee (EFC) and fixed spending limits. While the mission has been extended, its budget is reviewed regularly to ensure efficient use of resources.
- For funding, most states share costs with the central government in a 60:40 ratio, while northeastern and hilly states follow a 90:10 pattern. This setup ensures states have enough funds to implement health programs effectively.
- Performance-Based Funding: The NHM rewards states with additional funds for improving key health outcomes like maternal and child health. This encourages states to enhance their healthcare systems.
- Local committees, such as Rogi Kalyan Samitis (RKS), also receive untied funds, giving them the flexibility to directly address patient needs and improve services.
- Commitment to Health Targets: By 2025, the NHM aimed to achieve specific health goals, including reducing the Maternal Mortality Ratio (MMR) to 90, the Infant Mortality Rate (IMR) to 23, and the Under-5 Mortality Rate (U5MR) to 23. Achieving these targets will require consistent investment in health infrastructure, workforce training, and community programs.
- The government is also focused on tackling broader factors affecting health, such as nutrition and disease prevention while improving access to healthcare for disadvantaged groups.
What are the challenges?
- Infrastructure Deficiencies: Many Primary Health Centres (PHCs) lack essential diagnostic tools, medical equipment, and sanitation facilities. PHCs in remote areas of Bihar and Uttar Pradesh often face electricity and water supply shortages, limiting their ability to deliver quality care.
- Shortage and Distribution of Healthcare Workforce: Despite adding 1.2 million healthcare workers, there remains a shortage of specialists such as gynaecologists, anaesthetists, and paediatricians in rural areas. Rajasthan and Madhya Pradesh struggle to staff CHCs with specialized doctors.
- Financial Constraints and Inefficient Fund Utilization: Delays in fund disbursement and underutilization of allocated budgets hinder the implementation of key initiatives. Northeastern states like Nagaland and Manipur faced challenges in utilizing NHM funds due to inadequate financial planning and monitoring mechanisms.
Way forward:
- Infrastructure and Workforce Enhancement: Strengthen PHC and CHC infrastructure with essential facilities and ensure equitable distribution of healthcare specialists through targeted incentives, training, and deployment programs in underserved areas.
- Efficient Fund Utilization: Streamline fund disbursement processes, enhance financial planning, and implement robust monitoring mechanisms to ensure optimal use of allocated budgets, particularly in resource-constrained regions.
Mains PYQ:
Q “Besides being a moral imperative of a Welfare State, primary health structure is a necessary precondition for sustainable development.” Analyse. (UPSC IAS/2021)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues related to Indus Water Treaty ;
Why in the News?
A neutral expert appointed by the World Bank has supported India’s stance on how to resolve disputes with Pakistan over the Kishanganga and Ratle hydroelectric projects.
What are the key features of the Indus Water Treaty?
The IWT was signed on September 19, 1960, by Indian Prime Minister Jawaharlal Nehru and Pakistani President Ayub Khan, with the aim of regulating the use of water from the Indus River and its tributaries between India and Pakistan after extensive negotiations facilitated by the World Bank.
- Permanent Sharing of Water: The IWT ensures a clear division of water resources, allowing peaceful coexistence of water usage.
- Run-of-the-River Projects: India is allowed to build hydroelectric power projects on the Western Rivers, provided they do not obstruct natural river flows.
- Role of the World Bank: As a mediator, the World Bank facilitates the appointment of experts or arbitral bodies in case of disputes.
- Modification Provisions: Article XII (3) allows amendments to the Treaty through mutual consent.
What are the Disputes around the Indus Water Treaty?
- Run-of-the-River Projects: India’s construction of run-of-the-river hydroelectric projects, such as Kishanganga (a tributary of Jhelum) and Ratle (on the Chenab) has faced objections from Pakistan. Pakistan claims these projects could disrupt downstream water flow and utilisation, while India asserts they comply with the provisions of the Indus Waters Treaty (IWT).
- Dispute Resolution Mechanism: Pakistan sought arbitration at the Permanent Court of Arbitration (PCA), but India contested its jurisdiction and emphasised using the Neutral Expert process as outlined in the treaty. India views this process as a treaty-compliant method for resolving technical differences:
- Whether the pondage capacity of the two dams follows the limits set by the Indus Waters Treaty (IWT).
- Whether the turbine intakes in the design comply with the rules of the IWT.
- Whether the outlets below the dead storage level meet the IWT guidelines.
- Whether the gated spillway designs of each plant align with the IWT provisions.
- Trust Deficit: The lack of trust and strained relations between India and Pakistan undermines effective cooperation under the IWT. This atmosphere of distrust restricts constructive dialogue and hinders the timely resolution of disputes, affecting the treaty’s overall effectiveness.
- Climate Change Impacts: Changing precipitation patterns and altered runoff due to climate change challenge the treaty’s assumption of fixed water availability. The IWT does not account for these uncertainties, increasing the risk to water-sharing agreements.
- Evolving Needs: The treaty’s framework does not address the rising industrial and agricultural demands of both countries. Growing population and economic activities highlight the need for flexible mechanisms to ensure equitable and sustainable resource sharing in the future.
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How does the present decision highlight favourable implications on the Indian part?
- Vindication of India’s Position: The Neutral Expert, Michel Lino, upheld India’s stand that the disputes over the Kishenganga and Ratle HEPs fall under his jurisdiction, as per Annexure F, Part I of the IWT. This challenges Pakistan’s attempt to bypass the Neutral Expert process and proceed directly to the PCA.
- Preservation of Treaty Provisions: India’s participation in the Neutral Expert proceedings demonstrates its adherence to “Treaty-consistent mechanisms” while boycotting PCA proceedings that it considers beyond the IWT framework.
- Recognition of India’s Hydroelectric Rights: The ruling supports India’s right to construct run-of-the-river projects within the provisions of the Treaty, boosting its ability to harness renewable energy from the Western Rivers.
- Strengthening India’s Diplomatic Stance: The decision highlights Pakistan’s lack of adherence to the Treaty’s dispute resolution process, strengthening India’s argument for Treaty modification.
- Potential for Treaty Revision: India’s formal notices in 2023 and 2024 to review and modify the Treaty gain momentum, emphasising the need to address demographic changes, clean energy goals, environmental concerns, and the impact of cross-border terrorism.
Way forward:
- Revise the Indus Waters Treaty Framework: Advocate for Treaty modifications to address evolving needs like climate change impacts, rising industrial and agricultural demands, and demographic shifts, ensuring equitable and sustainable water-sharing mechanisms.
- Strengthen Dispute Resolution Mechanisms: Promote adherence to Treaty-sanctioned processes like the Neutral Expert mechanism, fostering trust, cooperation, and timely resolution of technical disagreements while upholding India’s hydroelectric and clean energy rights.
Mains PYQ:
Q Present an account of the Indus Water Treaty and examine its ecological, economic and political implications in the context of changing bilateral relations. (UPSC IAS/2016)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Challenges in the health sector;
Why in the News?
Recently, Maharashtra Food and Drugs Administration has allowed homeopathic doctors, who completed a course in modern medicine to prescribe allopathic medicines.
What is the difference between Homeopathy and Allopathy?
- Homeopathy uses natural substances in tiny doses to help the body heal, while allopathy uses medicines or treatments to directly fight or treat diseases based on science and evidence.
What is crosspathy?
- Crosspathy refers to practitioners from one medical system (e.g., homoeopathy) treating patients with medicines from another system (e.g., allopathy).
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Why did the Maharashtra FDA issue a directive allowing homoeopathic practitioners to prescribe allopathic medicines?
- Addressing Doctor Shortage: The directive aimed to tackle the severe shortage of doctors, particularly in rural areas, where there is a lack of healthcare professionals, especially specialists.
- Expanding Healthcare Access: By allowing certified homoeopathic practitioners to prescribe allopathic medicines, the Maharashtra FDA sought to expand healthcare services and make treatment more accessible to patients in underserved regions.
- Promoting Integrative Medicine: The directive is part of a broader initiative to promote integrative or integrated medicine, where different medical systems, such as homoeopathy and allopathy, are used to complement each other in patient care.
What is the Supreme Court’s stance on ‘crosspathy’?
- The Supreme Court (SC) has consistently held that cross-system practice (practicing medicine from a system one is not qualified for) is a form of medical negligence.
- Poonam Verma vs Ashwin Patel (1996) – A homoeopath was held liable for prescribing allopathic medicines that resulted in a patient’s death.
- Crosspathy is only allowed where state governments have specifically authorized it through special orders.
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What are the challenges faced by govt?
- Doctor Shortage: India faces a significant shortage of doctors, especially in rural areas, where the Health Dynamics of India 2022-23 report highlights an 80% deficit of specialists in community health centres. As of June 2022, there were 13.08 lakh allopathic doctors and 5.65 lakh AYUSH practitioners, indicating an insufficient number of qualified professionals to meet healthcare demands.
- Integration of AYUSH Practitioners: While AYUSH practitioners could potentially fill healthcare gaps, there is no systematic approach to integrating them effectively, which could lead to poor outcomes.
- Risk to Patients: Allowing unqualified practitioners to prescribe allopathic medicines could result in medical errors and negligence, raising concerns about patient safety.
- Opposition from Professional Bodies: Organizations like the Indian Medical Association (IMA) strongly oppose crosspathy, questioning its legality and the risks posed to patients.
- Regulatory Uncertainty: Lack of clarity on who has the authority to issue such directives and manage cross-system practice leads to legal and administrative challenges.
Way forward:
- Clear Regulatory Framework: Establish clear guidelines and regulations for integrating different medical systems to ensure patient safety and effective healthcare delivery, with proper qualifications for practitioners.
- Address Doctor Shortage Strategically: Focus on training and deploying more allopathic doctors, especially in rural areas, while ensuring AYUSH practitioners are properly integrated into the healthcare system through structured programs.
Mains PYQ:
Q Public health system has limitation in providing universal health coverage. Do you think that private sector can help in bridging the gap? What other viable alternatives do you suggest? (UPSC IAS/2015)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Artificial Intelligence;
Why in the News?
The U.S. Bureau of Industry and Security (BIS) created a system with different levels to control the sale and export of AI chips and technology more effectively.
What is the main objective behind one of the last orders of the Biden administration?
- National Security and Foreign Policy: The primary goal of the BIS regulations is to enhance control over the circulation of advanced AI technology and chips to align with U.S. national security and foreign policy interests.
- The regulations aim to prevent sensitive technologies from reaching adversarial nations, thereby mitigating risks associated with military advancements and cyber operations.
- Secure Technology Ecosystem: The regulations are designed to cultivate a secure and trusted technology ecosystem that promotes the responsible use and diffusion of AI technologies, ensuring that advanced AI capabilities do not fall into the hands of U.S. adversaries.
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How will the tiered framework for licensing and exporting Artificial Intelligence chips work?
- Three-Tier System: The new regulations categorize countries into three tiers based on their relationship with the U.S.:
- Tier 1: No restrictions for exports to 18 U.S. allies, including Australia, Canada, and Japan.
- Tier 2: Countries like China and India face caps on volumes and require Validated End User (VEU) authorization for transactions contributing to advanced AI development.
- Tier 3: Arms-embargoed countries such as North Korea and Iran have no access to advanced AI technology.
How has the tech industry responded to the move?
- Concerns Over Competitiveness: Major tech companies, including NVIDIA and Oracle, have expressed apprehension that these regulations could undermine U.S. competitiveness in the global tech landscape.
- They argue that restricting access to widely available technologies may not enhance security but instead hinder innovation.
- Call for Revisions: Industry leaders hope that the incoming administration will reconsider or withdraw these regulations, citing potential disruptions to business operations and global supply chains.
Will it affect the Indian Economy?
- Impact on AI Growth: As India invests heavily in its National AI Mission, which aims to develop infrastructure with over 10,000 GPUs through a ₹10,000 crore investment, the restrictions could pose substantial challenges in scaling up AI capabilities post-2027.
- The limits on GPU imports may deter innovation and slow down the growth of India’s tech sector.
- Potential Delays in Infrastructure Development: Major data center providers in India, such as Tata Communications and CtrlS, may face delays or downsizing of their plans due to restricted access to GPUs. This could place Indian companies at a competitive disadvantage compared to their U.S. counterparts.
- India’s Exclusion from Trusted Allies: India is not included in the list of trusted U.S. allies due to concerns over the leakage of chips to countries like Russia.
Way forward:
- Strengthen Domestic AI Capabilities: India should accelerate the development of indigenous AI technologies and chips to reduce reliance on foreign imports, invest in local R&D and foster partnerships with global tech firms for technology transfer.
- Diversify Global Alliances: India could strengthen its technological partnerships with countries outside the U.S. and explore alternative markets to source AI chips, ensuring the diversification of its supply chains to mitigate the impact of export restrictions.
Mains PYQ:
Q “The emergence of the Fourth Industrial Revolution (Digital Revolution) has initiated e-Governance as an integral part of government”. Discuss. (UPSC IAS/2020)
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From UPSC perspective, the following things are important :
Mains level: Uniform Civil Code;
Why in the News?
The Pushkar Dhami Cabinet in Uttarakhand approved the UCC with plans to roll it out after the local body elections. Uttarakhand will be the first state in India to implement the UCC.
What is the Uniform Civil Code?
- The UCC refers to a single law that governs personal matters such as marriage, divorce, inheritance, adoption, and succession for all citizens of India, irrespective of their religion.
- Constitutional Basis: Article 44 of the Directive Principles of State Policy (DPSP) in the Indian Constitution envisions a UCC to promote national integration by eliminating discrepancies in personal laws.
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What are the significance of UCC?
- Equality and Justice: UCC ensures equal treatment of all citizens, irrespective of religion, caste, or gender, by replacing diverse personal laws with a unified legal framework. This promotes fairness and eliminates discriminatory practices in personal matters like marriage, divorce, and inheritance.
- Gender Parity and Women’s Empowerment: Personal laws often favor patriarchal norms, disadvantaging women in areas like inheritance and divorce. UCC addresses these disparities, granting women equal rights and fostering gender justice.
- National Integration: By unifying personal laws across communities, UCC strengthens national unity and reduces divisions based on religion or community-specific laws. It promotes secularism and reinforces the idea of “one nation, one law”.
- Simplification of Legal Systems: A common civil code simplifies the legal process by eliminating inconsistencies among various personal laws, making it easier for citizens to understand their rights and obligations.
- Closing Loopholes in Personal Laws: UCC addresses biases and loopholes in existing personal laws that perpetuate inequality or favouritism, ensuring a more just legal system for all citizens.
What is the Judicial stand on it?
- Mohd. Ahmed Khan vs. Shah Bano Begum (1985): This case marked a pivotal moment when the Supreme Court urged the government to enact a UCC.
- The Court highlighted that a common civil code would promote national integration by eliminating conflicting loyalties to different personal laws.
- Jordan Diengdeh vs. S.S. Chopra (1985): The Court reiterated the “immediate and compulsive need for a uniform civil code”.
- Sarla Mudgal vs. Union of India (1995): In this case, the Supreme Court criticised the government’s inaction regarding the UCC, asserting that over 80% of citizens were already governed by codified personal laws and that there was no justification for delaying its introduction any further.
- John Vallamattom vs. Union of India (2003): The Supreme Court again stressed the need for a UCC, lamenting that Article 44 had not been implemented and reiterating its role in fostering national unity by resolving contradictions arising from diverse personal laws.
- Shayara Bano vs. Union of India (2017): In addressing the issue of triple talaq, the Supreme Court underscored that the Constitution mandates the state to provide for a UCC to address various social injustices and legal inconsistencies stemming from personal laws.
- Jose Paulo Coutinho vs. Maria Luiza Valentina Pereira (2019): The Court expressed disappointment over the lack of progress towards a UCC, noting that while personal laws reflect religious beliefs, they should not be exempt from reform in a secular state.
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What are the challenges?
- Cultural Resistance: There is significant opposition from various religious groups who view the UCC as an infringement on their cultural and religious practices. This resistance can lead to social unrest and political backlash.
- Political Controversy: The UCC is often a contentious political issue, with parties divided along ideological lines. This can complicate legislative processes and delay implementation.
- Legal Complexity: The integration of diverse personal laws into a single code poses substantial legal challenges. Ensuring that the new code respects individual rights while being comprehensive enough to address various community needs requires careful drafting.
- Awareness and Training: Effective implementation requires extensive training for officials and awareness campaigns for citizens to understand their rights under the new code. This necessitates significant resources and time.
Way forward:
- Phased Implementation and Pilot Projects: Begin with optional UCC adoption in specific regions or for limited personal law aspects (e.g., marriage or inheritance) to test feasibility and address concerns gradually.
- Inclusive Stakeholder Engagement: Conduct extensive consultations with religious leaders, community representatives, and legal experts to build consensus and ensure the code respects India’s diversity while upholding constitutional values.
Mains PYQ:
Q Discuss the possible factors that inhibit India from enacting for its citizen a uniform civil code as provided for in the Directive Principles of State Policy. (UPSC IAS/2015)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Impact USA on World;
Why in the News?
On his first day in office, U.S. President Donald Trump signed an order to pull the country out of the World Health Organization (WHO).
What will be the Impact of USA’s withdrawal from WHO?
- Funding Shortfall for WHO: The USA accounted for 22.5% of WHO’s assessed contributions and approximately 13% of voluntary contributions in 2023.
- The funding gap may affect WHO’s ability to implement health programs globally.
- Disruption of Global Health Programs: WHO’s work in areas such as pandemics, neglected tropical diseases, antimicrobial resistance, and vaccination programs could face setbacks.
- Loss of technical collaboration between the US CDC and WHO may weaken disease surveillance and pandemic preparedness.
- Increased Influence of China: The vacuum left by the US could amplify China’s role within WHO, leading to concerns over political influence and transparency.
- Undermining Global Health Equity: Withdrawal may hinder equitable access to healthcare resources, including vaccines and medicines, in developing nations.
- Undermining Pandemic Treaty: The US will cease negotiations on the WHO pandemic treaty, affecting the framework for global cooperation on future pandemics.
What are the Major Global Institutions and Challenges Faced by them?
- United Nations (UN): Political divisions among member states, limited enforcement power, and funding constraints. The UN’s peacekeeping missions and humanitarian efforts often face resource shortages and geopolitical interference.
- World Health Organization (WHO): Criticism for its pandemic response, reliance on voluntary funding, and political influence from member states. The WHO struggles to maintain independence and effectiveness in global health governance.
- World Trade Organization (WTO): Increasing protectionism, trade disputes among major economies, and calls for reform to address inequities in global trade rules. The WTO faces difficulties in resolving conflicts like U.S.-China trade tensions.
- International Monetary Fund (IMF) and World Bank: Criticism of conditional lending practices, perceived bias favoring wealthier nations, and inefficiencies in addressing poverty and economic disparities. Both institutions face calls for governance reforms to better represent developing countries.
- Regional Organizations (e.g., EU, African Union): Economic disparities among members, political instability, and resource limitations. For example, the EU faces challenges like migration issues and the aftermath of Brexit, while the African Union struggles with conflict resolution and development goals.
What would be the Impact on India?
- Funding Shortfalls for WHO Programs: The U.S. contributes approximately 15-20% of WHO’s budget, amounting to around $600 million annually.
- This withdrawal could lead to significant funding gaps for various health programs like India’s immunisation programs that India benefits from, such as those addressing neglected tropical diseases, HIV, malaria, and tuberculosis.
- Loss of Technical Expertise: The departure of U.S. experts from WHO committees could limit the organization’s ability to provide comprehensive guidelines and support for health policies in India.
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What are the reforms needed in Global Institutions?
- Enhanced Representation and Inclusivity: Need to expand the UN Security Council and restructure voting power in organizations like the IMF and World Bank to ensure equitable decision-making.
- Increased Transparency and Accountability: There is a pressing need for improved transparency in decision-making processes within global institutions. This includes establishing clear accountability mechanisms to address concerns about corruption, inefficiency, and lack of responsiveness to member states’ needs.
Mains PYQ:
Q Critically examine the role of WHO in providing global health security during the Covid-19 pandemic. (UPSC IAS/2020)
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From UPSC perspective, the following things are important :
Mains level: India EU relation;
Why in the News?
Recently, Commerce and Industry Minister Piyush Goyal highlighted six key principles to strengthen the partnership between India and the European Union during a meeting with Maros Sefcovic, the EU Commissioner for Trade and Economic Security.
What are the Six Broad Principles between the EU and India?
- Common Values: Establish a partnership based on shared values of democracy, rule of law, and an independent judiciary.
- Fair Trade Agenda: Develop a commercially meaningful trade agenda that addresses tariff and non-tariff barriers, ensuring benefits for small and medium enterprises, farmers, and fishermen.
- High-Quality Production: Engage in the exchange of best practices and harmonization of standards to achieve “zero defect” and “zero effect” production capabilities.
- Technological Collaboration: Work together to develop cutting-edge technologies and secure critical raw material supply chains, enhancing resilience against non-market economies.
- Sustainable Development: Cooperate on trade and sustainable development while respecting differing levels of development among nations, adhering to the principle of common but differentiated responsibility.
- Mutual Growth: Leverage India’s young talent pool to act as a bridge for mutual growth and development with the EU.
What is the Significance of the EU for India?
- Largest Trading Partner: The EU is India’s largest regional trading partner, accounting for approximately 12.2% of India’s total trade in goods as of 2023. This relationship facilitates substantial trade flows, with trade in goods reaching around €124 billion and trade in services amounting to €50.8 billion in 2023.
- Major Source of Investment: The EU is a leading source of foreign direct investment (FDI) in India, with an investment stock of approximately €108.3 billion in 2022. This investment supports job creation and economic development across various sectors in India.
- Technology Transfer and Innovation: The EU serves as a primary source of technology transfer to India, aiding in the development of critical sectors such as infrastructure, green technology, and digital solutions. This collaboration is vital for India’s aspirations to modernize its economy and enhance its global competitiveness.
- Strategic Partnership: The EU-India relationship is built on shared values such as democracy and human rights. It has evolved into a strategic partnership that addresses global challenges, including climate change, security threats, and sustainable development. This partnership is crucial for both entities to enhance their roles in global governance.
- Geopolitical Considerations: With the rise of assertive powers like China and shifting U.S. policies, the EU recognizes the importance of a robust partnership with India as a counterbalance in the region. Strengthening ties with India aligns with the EU’s goals of promoting multilateralism and addressing common security interests.
Evolution of India-EU Relations:
- Foundational Agreements and Strategic Partnership: India-EU relations date back to the early 1960s, with India being one of the first countries to establish diplomatic ties with the European Economic Community.
- The relationship was formalized through the Joint Political Statement in 1993 and the Cooperation Agreement in 1994, which expanded cooperation beyond trade.
- In 2004, at the 5th India-EU Summit, the relationship was upgraded to a Strategic Partnership, marking a significant milestone in bilateral ties.
- Joint Action Plan and Enhanced Cooperation: Following the strategic partnership, a Joint Action Plan was adopted in 2005 and reviewed in 2008, focusing on strengthening dialogue and cooperation across various sectors including trade, investment, and cultural exchanges.
- Recent Developments and Future Prospects: In 2022, India and the EU celebrated 60 years of bilateral relations by relaunching negotiations for a Broad-based Trade and Investment Agreement (BTIA), which had stalled since 2013.
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What are the challenges between India and the EU?
- Trade Barriers and Market Access: Indian companies face increasing non-tariff barriers when trying to access EU markets, including stringent technical regulations, phytosanitary measures, and compliance standards. These barriers hinder the export of Indian goods and services, complicating efforts to establish a comprehensive Free Trade Agreement (FTA) between India and the EU.
- Also, India is cautious about reducing high tariffs on sensitive sectors like automobiles and agricultural products, which the EU seeks to liberalize.
- Mobility of Professionals and Services Liberalization: The lack of a common working visa system in the EU restricts the free movement of Indian professionals across member states. India seeks greater access for its skilled workers in the EU, while the EU demands liberalization of India’s professional services sector, particularly in accountancy and legal services.
Way forward:
- Balanced Trade Agreement: Prioritize resolving key differences in tariff reductions and non-tariff barriers, especially in sensitive sectors like automobiles, agriculture, and professional services, while ensuring fair market access for both sides to boost mutual economic growth.
- Enhanced Mobility and Collaboration: Establish frameworks for the free movement of professionals and expand cooperation in technology transfer, sustainable development, and resilient supply chains, leveraging India’s skilled workforce and the EU’s technological advancements.
Mains PYQ:
Q ‘Indian diaspora has a decisive role to play in the politics and economy of America and European Countries’. Comment with examples. (UPSC IAS/2020)
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From UPSC perspective, the following things are important :
Mains level: Smart Cities Mission;
Why in the News?
The Smart Cities Mission (SCM), a flagship initiative launched during the NDA-1 government, has lost prominence in this year’s list of electoral promises and accomplishments.
What are smart cities?
- The Government of India defines smart cities as urban areas that provide core infrastructure, ensure a decent quality of life, promote a clean and sustainable environment, and utilize smart solutions for inclusive development.
What are the two major aspects of the Smart Cities Mission?
- Area-Based Development (ABD): This includes three components:
- Redevelopment: Transforming existing urban areas.
- Retrofitting: Improving infrastructure in underdeveloped areas.
- Greenfield Development: Creating new urban spaces with modern infrastructure.
- Pan-City Solutions: These involve applying smart solutions across the entire city, enhancing services through technology and improving overall urban management and governance.
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Why did the implementation of smart cities bypass local government?
- Special Purpose Vehicle (SPV) Model: The SCM employed a governance structure that relied heavily on Special Purpose Vehicles (SPVs), which were set up as limited companies under the Companies Act.
- This model often sidelined local elected councils, as SPVs were typically led by bureaucrats or representatives from multinational corporations, limiting local government involvement in decision-making processes.
- Top-Down Approach: Critics argue that the SPV model was too top-down, lacking alignment with the 74th Constitutional Amendment, which emphasizes decentralized governance. This disconnect resulted in many cities objecting to the governance structure, as it did not adequately reflect the needs and demands of local populations.
- Competitive Selection Process: The selection of cities was based on a competitive process that did not account for the diverse urban realities across India. This approach led to an exclusionary scheme where only small portions of cities were targeted for development, often ignoring broader community needs and existing urban dynamics.
- Limited Local Engagement: The mission’s design did not prioritize citizen participation or local stakeholder engagement effectively, which is crucial for understanding and addressing unique urban challenges. This lack of engagement contributed to projects that did not resonate with the actual needs of residents.
What has happened to the mission in Shimla?
- Project Value and Status: The ongoing projects in Shimla are valued at approximately ₹150 crore and are still in the early stages of construction. Key initiatives include the assembly flyover and various parking facilities, with tenders currently being processed.
- Funding: The Union Government has allocated a total of ₹500 crore to Shimla under the SCM, with two installments of ₹98 crore still pending. The overall budget for the mission in Shimla is ₹750 crore, which includes a contribution of ₹250 crore from the state government.
- Unfinished Projects: Despite the extension, several projects remain incomplete, including those at IGMC, Auckland, and Vikas Nagar. Additionally, construction for the bus stand parking area has not yet commenced.
What are the achievements of Smart City Mission?
- Project Completion: As of December 2024, 91% of the total projects under the SCM have been completed, with 7,380 out of 8,075 projects finalized. This reflects significant progress in urban development initiatives across 100 selected cities.
- Investment and Infrastructure: The mission has seen an investment of approximately ₹1,47,704 crore. Key areas of focus include infrastructure development, governance improvements, and social services such as housing, transport, education, and healthcare.
- Technological Integration: All 100 smart cities have established Integrated Command and Control Centres (ICCCs), which utilize data analytics and emerging technologies like AI and IoT to manage urban services more effectively. These centres played crucial roles during the COVID-19 pandemic by functioning as operational hubs.
- Public Safety Enhancements: Over 84,000 CCTV cameras have been installed for enhanced surveillance, along with emergency call boxes and public address systems to improve public safety.
- Solid Waste Management: The mission has improved solid waste management practices in over 66 cities through technology integration, enhancing efficiency in waste collection and management.
- Mobility Improvements: The development of smart roads and cycle tracks has been a significant focus, with over 1,740 kilometres of roads constructed or improved under the mission.
What are the challenges related to Smart City Mission?
- Disparity in Performance: While some cities have exceeded their project targets significantly, others have struggled to meet even basic completion goals. Reports indicate that 66 out of the 100 cities have not met their physical targets as of January 2023, highlighting a stark disparity in performance across regions.
- Limited Impact on Quality of Life: Critics argue that despite substantial investments, there has been little improvement in fundamental quality-of-life issues for citizens, such as access to clean water and affordable housing. The mission’s focus on high-tech solutions has sometimes overshadowed pressing social needs.
- Financial Constraints: Many local governing bodies face challenges in raising funds for projects due to financial limitations and resistance from citizens regarding user charges for services provided under the mission. This has hindered project execution in several cities.
- Implementation Delays: A significant number of projects remain incomplete or are stuck at various stages due to bureaucratic hurdles and lack of coordination among stakeholders involved in the SCM.
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Way forward:
- Strengthen Decentralized Governance: Empower local governments by aligning the SCM governance model with the 74th Constitutional Amendment. Involve elected councils and local stakeholders in planning, implementation, and decision-making to ensure projects reflect community needs and realities.
- Enhance Financial and Technical Capacities: Provide cities with access to sustainable funding mechanisms, including better public-private partnership models, while building technical expertise for efficient project execution and addressing socio-environmental challenges comprehensively.
Mains PYQ:
Q What are ‘Smart Cities’? examine their relevance for urban development in India. Will it increase rural-urban differences? Give arguments for ‘Smart Villages’ in the light of PURA and RURBAN Mission. (UPSC IAS/2016)
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From UPSC perspective, the following things are important :
Mains level: Insolvency and Bankruptcy Code ;
Why in the News?
The recent Supreme Court judgment in the Jet Airways case has highlighted several major problems in India’s insolvency system.
What is the Insolvency and Bankruptcy Code (IBC)?
- The Insolvency and Bankruptcy Code (IBC), enacted in 2016, is a comprehensive legal framework in India aimed at consolidating the existing laws governing insolvency and bankruptcy.
- It establishes a structured process for resolving insolvency for corporate entities, individuals, and partnership firms, promoting timely resolution and maximizing asset value.
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What are the structural inefficiencies in the current Insolvency and Bankruptcy Code (IBC)?
- Overburdened Tribunals: The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) are tasked with handling both corporate insolvencies under the IBC and cases under the Companies Act. This dual burden leads to inefficiencies and delays in resolving insolvency cases.
- Inadequate Institutional Capacity: The NCLT’s structure, established in 1999, is outdated and does not align with contemporary economic demands. With only 63 sanctioned members, many of whom split their time across multiple benches, the tribunal struggles to manage its caseload effectively, resulting in significant backlogs.
- Lack of Domain Expertise: Members of the NCLT often lack the necessary domain knowledge to handle complex insolvency cases effectively. This deficiency hampers their ability to make informed decisions, as highlighted by the Supreme Court in the Jet Airways case.
- Procedural Delays: The requirement for mandatory hearings for all applications contributes to lengthy delays. The average time for insolvency resolutions has increased, indicating that procedural inefficiencies are exacerbating the situation.
- Ineffective Urgent Listings: There is no robust system for urgent listings before the NCLTs, leading to further delays in critical cases. The discretion given to registry staff regarding case listings can lead to inconsistencies and unpredictability in case management.
- Judicial Discretion Issues: There is a growing tendency among NCLT and NCLAT members to ignore Supreme Court orders, undermining judicial authority and eroding trust in the system.
How can procedural innovations enhance the effectiveness of insolvency resolution?
- Specialized Benches: Establishing specialized benches for different categories of insolvency cases could improve efficiency and ensure that cases are handled by members with relevant expertise.
- Mandatory Mediation: Introducing mandatory mediation before filing insolvency applications could reduce the number of cases entering the formal insolvency process, alleviating pressure on tribunals.
- Streamlined Hearing Processes: Revising the requirement for mandatory hearings on all applications could expedite processes, allowing for more efficient case management and resolution.
- Improved Infrastructure: Investing in adequate courtrooms and permanent support staff is essential to enhance operational capacity and ensure that tribunals can function effectively within the broader economic framework.
What reforms are necessary to transform the IBC into a proactive economic tool?
- Reassessment of Tribunal Structure: A comprehensive review of the NCLT and NCLAT structures is needed to align them with current economic realities and demands, potentially increasing their sanctioned strength and operational hours.
- Focus on Domain Expertise in Appointments: Reforming the appointment process for tribunal members to prioritise candidates with relevant experience in insolvency matters will enhance decision-making quality.
- Encouraging Alternative Dispute Resolution (ADR): Promoting alternative dispute resolution methods within the insolvency framework can help manage caseloads more effectively while providing quicker resolutions for stakeholders.
- Legislative Amendments: Continuous legislative amendments should be made based on empirical data and stakeholder feedback to address emerging challenges within the IBC framework.
- Cultural Shift Towards Credit Discipline: Encouraging a cultural shift that emphasizes credit discipline among borrowers will support a healthier economic environment conducive to investment and growth.
Way forward:
- Strengthen Institutional Capacity and Expertise: Enhance the operational capacity of NCLT and NCLAT by increasing strength by appointing members with domain expertise, and providing adequate infrastructure and support staff to streamline case management and reduce delays.
- Promote Alternative Dispute Resolution (ADR): Integrate mandatory mediation and other ADR mechanisms within the IBC framework to alleviate tribunal workload, ensure quicker resolutions, and foster a collaborative insolvency ecosystem.
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