💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Type: Explained

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

  • The case for a Caste Census 

    Why in the news? 

    The Census Act, 1948 ought to be revised to mandate the inclusion of caste enumeration as a regular part of the Census process, incorporating specific questions in the questionnaire to gather this data systematically, rather than leaving it subject to discretionary decisions by the Union executive.

    Why a Caste Census?

    • Social Relevance: Caste remains a significant social determinant in India, influencing access to opportunities, resources, and representation. A caste census is essential to understand and address caste-based inequalities and social stratification accurately.
    • Policy Formulation: Constitutionally mandated policies such as reservations in education, employment, and legislative bodies rely on caste-based data to ensure effective implementation. Detailed enumeration helps in identifying beneficiaries, preventing misclassification, and ensuring equitable distribution of benefits.
    • Administrative Precision: Detailed caste-wise data is crucial for administrative purposes, including planning and allocation of resources. It helps in targeting development programs and policies for specific caste groups based on their socio-economic status and needs.
    • Historical Context: India has a history of caste-based discrimination and marginalization. A caste census provides empirical evidence of existing disparities, enabling the government and civil society to design interventions aimed at promoting social justice and equality.

    The arguments against caste Census

    • Social Divisiveness: Critics argue that emphasizing caste through a census could perpetuate social divisions and caste identities. They fear that highlighting caste differences could exacerbate tensions and hinder national unity.
    • Administrative Complexity: Conducting a caste census is seen as administratively challenging due to the sheer number of caste groups in India, estimated to be thousands, many of which are region-specific. Critics argue that accurately enumerating and categorizing these castes could pose logistical difficulties and lead to inaccuracies.
    • Political Implications: There are concerns that caste-based data could be misused for electoral gains and political manoeuvring. Critics argue that caste enumeration might lead to demands for increased reservations and create further divisions along caste lines in political representation and decision-making processes.

    How an attempt at caste Census failed

    • Constitutional Mandate: The Constitution of India provides for reservations in education (Article 15(4)) and public employment (Article 16(4)) for OBCs. Enumerating OBCs in the Census is essential to effectively implement these constitutional provisions and ensure accurate representation.
    • Policy Implementation: Detailed caste-wise data is necessary for effective policy formulation and implementation related to reservations, social justice, and welfare schemes targeting OBC communities. It helps in identifying deserving beneficiaries and avoiding wrongful inclusions or exclusions.
    • Judicial Imperative: The Supreme Court of India, in various rulings like Indra Sawhney case (1992), has underscored the importance of accurate caste data for upholding reservation policies and ensuring social justice. The court has emphasized the need for periodically revising the OBC list based on updated census data.
    • Local Governance and Representation: Post the 73rd and 74th Amendments to the Constitution, which introduced reservations for OBCs in local bodies (panchayats and municipalities), accurate caste data at the local level is crucial for fair representation and effective governance.

    How an attempt at caste Census failed

    • Poor Design and Execution: The Socio-Economic and Caste Census (SECC)-2011, conducted through Union Ministries of Rural Development and Urban Development, lacked the expertise and experience needed for sociological surveys
    • Legal and Administrative Challenges: The SECC-2011 was not conducted under the Census Act, 1948, which meant it lacked the legal framework and procedural clarity required for a comprehensive census.

    Way forward: 

    • Amendment of Census Act: Amend the Census Act, 1948, to explicitly include caste as a parameter for enumeration. This legal revision will provide a clear mandate and framework for conducting a comprehensive caste Census, ensuring adherence to standardised procedures and data collection methodologies.
    • Expert Involvement and Public Consultation: Engage sociological and anthropological experts to develop a detailed list of caste categories specific to each state. Publish the draft list online for public review and feedback, facilitating transparency and accuracy in caste enumeration.

    Mains PYQ: 

    Q Caste system is assuming new identities and associational forms. Hence, the caste system cannot be eradicated in India.” Comment. (UPSC IAS/2018)

  • MSMEs need funds for tech upgrades, green transition

    Why in the news? 

    Union Minister for MSMEs Jitan Ram Manjhi outlined six strategic pillars identified to foster the growth of the MSME sector.

    What are the 6 pillars for the growth of the MSME Sector   

    • Formalisation and Access to Credit: Promoting formalization of MSMEs to enhance their credibility and access to formal financial institutions.Improving access to credit through schemes like Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
    • Increased Access to Market and E-commerce Adoption: Facilitating MSMEs’ access to domestic and international markets through initiatives like market linkages and export promotion schemes.
    • Higher Productivity Through Modern Technology: Encouraging MSMEs to adopt modern technologies and digital tools to improve productivity and efficiency.
    • Enhanced Skill Levels and Digitalisation in the Service Sector: Focusing on skill development and training programs to enhance the capabilities of the MSME workforce.
    • Support to Khadi, Village, and Coir Industry for Globalisation: Promoting traditional industries like Khadi and Coir by providing marketing support and international exposure.
    • Empowerment of Women and Artisans Through Enterprise Creation: Encouraging entrepreneurship among women and artisans through skill development and financial support.

    How can Employment be raised?   

    • Promoting MSME Growth: Support MSMEs with policies for credit access, market expansion, tech modernization, and encourage startups for job creation.
    • Skill Development and Training: Invest in industry-aligned skill development, collaborating with educational institutions and industry partners for vocational training.
    • Infrastructure Development: Invest in infrastructure projects for job creation; develop industrial clusters and economic zones for manufacturing jobs.
    • Supporting Employment-intensive Sectors: Promote high-employment sectors like tourism, agriculture, healthcare, renewable energy; prioritize job creation in rural areas.

    Indian Government steps taken for MSME 

    • Prime Minister Employment Generation Programme (PMEGP): It aims to create employment opportunities through the setting up of new micro-enterprises.
    • Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE): Provides collateral-free loans of up to ₹1 crore to individual Micro and Small Enterprises (MSEs).
    • Financial Support to MSMEs in ZED Certification Scheme: Provides up to 80% subsidy to MSMEs to inculcate Zero Defect and Zero Effect (ZED) practices in manufacturing.
    • A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE): Facilitates innovative business solutions, promotes entrepreneurship, and creates new jobs at the grassroots level.

    Way to Green Transition and R&D (Way forward)

    • Financial Incentives and Soft Funds: Offer MSMEs financial incentives, subsidies, and soft loans for green tech and support R&D with grants and tax incentives.
    • Policy Support and Regulatory Framework: Develop supportive policies and regulatory frameworks that encourage MSMEs to integrate environmental sustainability into their operations.
    • Capacity Building and Technical Assistance: Offer capacity-building programs and technical assistance to MSMEs to enhance their knowledge and capabilities in green technologies.
    • Promotion of Green Products and Market Access:Promote green products via marketing campaigns, certification programs, and platforms for showcasing and selling.

    Mains PYQ: 

    Q Economic growth in the recent past has been led by an increase in labour productivity.” Explain this statement. Suggest the growth pattern that will lead to the creation of more jobs without compromising labour productivity. (UPSC IAS/2022)

  • Central India’s land-use patterns, roads fragmenting gaur & sambar populations, threatening genetic diversity   

    Why in the news? 

    A recent study by the National Centre for Biological Sciences (NCBS) found that land-use alterations and road construction in central India affect the genetic connectivity of two prominent herbivores: the gaur and the sambar.

    What is Genetic diversity?

    • Genetic diversity refers to the variety and variability of genetic material within a species or population, essential for adaptation, resilience to environmental changes, and long-term survival of organisms.

    About National Centre for Biological Sciences (NCBS)   

    • NCBS is a premier research institute located in Bangalore, India that is part of the Tata Institute of Fundamental Research (TIFR) under the Department of Atomic Energy of the Government of India.
    • The mandate of NCBS is to conduct fundamental research in the frontier areas of biology, ranging from the study of single molecules to ecology and evolution.

    Observations made by the National Centre for Biological Sciences (NCBS)   

    • Impact of Habitat Modification: The NCBS study underscores the significant impact of habitat loss and fragmentation on wildlife populations, particularly highlighting how expanding linear infrastructure like highways and railway lines disrupts animal movement and genetic connectivity.
    • Genetic Connectivity of Herbivores: It is the first study in India to investigate the genetic connectivity of large herbivores, specifically the gaur and sambar, at a landscape scale. The research reveals how these species are affected differently by landscape features and human activities, influencing their genetic diversity and ability to adapt to environmental changes.
    • Conservation Urgency: The study emphasizes the urgent need for conservation measures in fragmented habitats, such as Umred Karhandla Wildlife Sanctuary in Maharashtra, where small and genetically isolated populations of herbivores require targeted interventions to ensure their survival and genetic health.
    • Methodological Advances: Using advanced genetic techniques like next-generation sequencing (NGS) and landscape genetics, the NCBS researchers demonstrated how these tools can provide crucial insights into population dynamics, genetic diversity, and the impacts of human-induced changes on wildlife populations.

    Present Issues from Tiger reserves and Wildlife sanctuaries in MP and MH

    • Habitat Fragmentation and Connectivity: Both states face significant challenges related to habitat fragmentation due to expanding linear infrastructure like highways and railway lines. These developments disrupt wildlife corridors essential for the movement of animals, leading to isolated populations and reduced genetic connectivity, as observed in the NCBS study.
    • Human-Wildlife Conflict: Increasing instances of human-wildlife conflict pose a threat to both animals and human communities living near tiger reserves and wildlife sanctuaries. Encroachment of habitat for agriculture and settlements often results in conflicts over resources and occasionally leads to casualties among both wildlife and humans.
    • Poaching and Illegal Wildlife Trade: Despite conservation efforts, tiger reserves and sanctuaries in MP and MH continue to face challenges related to poaching and illegal wildlife trade. Tigers and other endangered species are targeted for their skins, bones, and other body parts, driven by demand in illegal markets.
    • Resource Extraction and Mining: Mining activities and resource extraction near protected areas pose significant environmental threats. These activities not only lead to habitat destruction but also contribute to pollution and disturbance, affecting the overall ecosystem health and biodiversity of these regions.
    • Climate Change Impacts: The effects of climate change, such as erratic weather patterns and changing rainfall regimes, also impact tiger reserves and wildlife sanctuaries in MP and MH. These changes can alter habitat suitability for wildlife species, affecting their distribution, migration patterns, and ability to adapt to new environmental conditions.

    Way forward: 

    • Enhanced Habitat Connectivity and Protection: Implement measures to mitigate habitat fragmentation caused by linear infrastructure. This includes creating wildlife corridors over or under highways and railways to facilitate safe animal movement
    • Integrated Conservation and Community Engagement: Foster collaboration between local communities, conservation organizations, and government agencies to address human-wildlife conflict and illegal activities like poaching.

    Mains PYQ: 

    Q How does biodiversity vary in India? How is the Biological Diversity Act,2002 helpful in the conservation of flora and fauna? (UPSC IAS/2018)

  • A case of people versus Population    

    Why in the news? 

    Since 1989, July 11 has been designated as World Population Day, marking the global population surpassing the five billion mark.

    About Malthus Theory of Population

    • Thomas Malthus’ Theory of Population, proposed in 1798, posited that population growth would outpace food production, leading to widespread famine and poverty.
    • He believed population grows exponentially while food production increases linearly. However, advancements in agriculture and technology have prevented the catastrophic outcomes he predicted.

    Present Scenario

    • Population Growth and Food Production: Despite significant population growth, currently estimated at 8.1 billion globally, advancements in technology and agriculture have enabled food production to keep pace. This disproves Malthus’ prediction of widespread famine due to population outstripping food supply.
    • India’s Demographics: India, the most populous nation with 1.44 billion people, has seen its annual population growth rate fall below 1%, with a total fertility rate (TFR) of 2, just below the replacement level. Economic growth has surged, with per capita GDP increasing sixfold from $400 to $2,400 over the past 27 years.
    • Poverty Reduction and Challenges: The percentage of Indians living below the poverty line has decreased from 43% to 11%. However, significant disparities persist, with certain states like Uttar Pradesh, Bihar, Madhya Pradesh, and Jharkhand accounting for 83% of the nation’s poverty. Climate change remains a critical challenge, disproportionately affecting poorer populations.

    Changes in India

    • Population : Population Growth has Increased from 1 billion to 1.44 billion (44% increase). The Annual population growth rate decreased from nearly 2% to below 1%. Total Fertility Rate (TFR) has declined from 3.4 to 2, below the replacement level of 2.1.
    • Economic Indicators: Per Capita GDP has rose sixfold from $400 to $2,400, signifying substantial economic growth. And percentage of people living below the multi-dimensional poverty line decreased from 43% to 11%.
    • Life Expectancy: Increased from 61 years to 70 years, indicating improvements in healthcare and living standards.

    Impact of Climate Change on Population

    • Increased Vulnerability of the Poor: Climate change disproportionately affects poorer populations in developing countries like India. Inadequate housing, infrastructure, and resources make these communities more susceptible to the adverse effects of extreme weather events, such as floods, droughts, and heatwaves.
    • Agricultural Disruption: Unpredictable weather patterns and extreme climate conditions disrupt agricultural productivity, leading to food insecurity. This particularly impacts rural populations who depend on farming for their livelihoods, exacerbating poverty and malnutrition.
    • Migration and Displacement: Climate change-induced events, such as rising sea levels and severe weather, force people to migrate from their homes. This internal displacement puts additional strain on urban areas and exacerbates existing social and economic challenges, leading to overcrowding and increased competition for resources.

    Agenda of Global South Population 

    • Economic Growth and Poverty Eradication: Developing nations in the Global South prioritize economic growth to reduce poverty and improve living standards. The focus is on sustainable development, ensuring that economic progress is not compromised while addressing the immediate needs of their populations. India’s aim to achieve zero poverty within the next decade exemplifies this priority.
    • Sustainable Development and Climate Responsibility: The Global South advocates for a balanced approach to climate change, emphasizing the need for developed countries (with higher historical emissions) to take greater responsibility. The G-20 New Delhi Declaration (2023) highlights the importance of the circular economy, resource efficiency, and extended producer responsibility in achieving sustainable development without hindering economic growth.

    A Pathway for the Most Populous Nation (Way Forward) 

    • Balancing Economic Growth and Environmental Sustainability: India must continue prioritizing economic growth to alleviate poverty and improve living standards while integrating sustainable practices. Emphasizing circular economy principles, resource efficiency, and extended producer responsibility can help decouple economic growth from environmental degradation.
    • Reducing Poverty and Inequality: Targeted efforts to address regional disparities and uplift impoverished populations are crucial. Programs focusing on education, healthcare, and infrastructure development, particularly in states with high poverty levels like Uttar Pradesh, Bihar, Madhya Pradesh, and Jharkhand, are essential to ensure inclusive growth.
    • Climate Change Mitigation and Adaptation: India should implement strategies to mitigate climate change impacts, such as investing in renewable energy, enhancing disaster resilience, and promoting sustainable agriculture. While striving for net-zero emissions by 2070, India must ensure that climate actions do not compromise its economic growth and poverty eradication goals.

    Mains PYQ: 

    Q Critically examine whether growing population is the cause of poverty OR poverty is the mains cause of population increase in India. (UPSC IAS/2015)

  • What is the draft Digital Competition Bill?  

    Why in the news? 

    In February 2023, the Ministry of Corporate Affairs (MCA) established a Committee on Digital Competition Law (CDCL) to assess the necessity for distinct legislation concerning competition within digital markets.

    What is an ex-post framework?

    • An ex-post framework refers to a regulatory approach where authorities intervene and enforce regulations after potentially harmful activities or behaviors have already occurred.
    • In the context of competition law, it means that enforcement actions are taken against anti-competitive practices only after they have been observed or reported.

    How is an ex-post framework different from an ex-ante framework?

    Timing of Intervention:

    • Ex-post framework: Intervenes after anti-competitive conduct has occurred and its effects are observed. It relies on retrospective enforcement based on complaints or identified issues.
    • Ex-ante framework: Proactively sets rules and obligations before anti-competitive behavior happens, aiming to prevent market distortions and protect competition from potential harms.

    Nature of Regulation:

    • Ex-post framework: Reactive in nature, focusing on remedial measures and enforcement actions against established instances of anti-competitive behavior.
    • Ex-ante framework: Proactive in nature, establishing upfront rules and obligations to guide behavior and prevent market abuses by dominant players before they occur.

    Focus and Objectives:

    • Ex-post framework: Focuses on addressing past harms to competition, ensuring fair market practices, and correcting market distortions post-occurrence.
    • Ex-ante framework: Focuses on maintaining competitive markets, promoting innovation, and protecting consumer choice by setting clear rules and preventing anti-competitive behavior from developing in the first place.

    Why does the draft Bill encourage an ex-ante competition regulation?

    • Proactive Prevention: Digital markets exhibit characteristics such as rapid growth, network effects, and economies of scale that can lead to quick and irreversible market dominance. An ex-ante framework allows regulatory authorities to preemptively set rules and obligations to prevent anti-competitive practices before they occur, thereby maintaining market competition and ensuring consumer choice.
    • Timely Intervention: The existing ex-post framework under the Competition Act, 2002 is considered inadequate for digital markets, where traditional enforcement mechanisms may be too slow to effectively address evolving market dynamics and prevent potential harms to competition. An ex-ante approach enables timely intervention and regulatory oversight to curb monopolistic tendencies and promote a level playing field for all market participants.

    What framework does the European Union follow?

    • The European Union follows an ex-ante competition framework under the Digital Markets Act (DMA). It regulates large digital platforms identified as gatekeepers, imposing specific obligations to ensure fair competition.
    • Objectives: To promote competition, innovation, and consumer choice in digital markets by proactively addressing potential market distortions caused by dominant players.

    What are systemically significant digital enterprises (SSDEs)?

    • SSDEs are digital enterprises identified as dominant in specific digital market segments under the draft Digital Competition Bill.Identified through quantitative tests based on financial strength and user reach in India, or qualitatively based on significant influence and market impact.
    • SSDEs are required to operate transparently, refrain from anti-competitive practices like self-preferencing and data misuse, and ensure fair access to their platforms for other businesses.

    Conclusion: Ensure that the criteria used to designate SSDEs are well-defined and balanced. Conduct periodic reviews to adjust these criteria based on market dynamics and technological advancements to accurately capture entities with significant market power without overly burdening smaller players.

    Mains PYQ: 

    Q Examine the impact of liberalization on companies owned by Indians. Are they competing with the MNCs satisfactorily? Discuss. (UPSC IAS/2013)

  • In 2024, Maoists suffer severe setbacks in Chhattisgarh  

    Why in the news?

    As of July 9, 2024, India has recorded a total of 162 Maoist fatalities this year, with Chhattisgarh alone reporting 141 deaths.

    • This marks one of the highest casualty figures for extremists in the predominantly tribal state since the establishment of the Communist Party of India (Maoist) in 2004.

     

     About Left-wing extremism in India

    • Origins and Ideology: LWE in India began with the 1967 Naxalbari uprising in West Bengal, advocating armed revolution for a Maoist communist state overthrowing the Indian government.
    • Modus Operandi: Naxalites engage in guerrilla warfare, attacking security forces, extorting, intimidating, and propagandizing. They target government, infrastructure, and economic interests, and run parallel governance in controlled areas.
    • Red corridor Areas: LWE affects several states in central and eastern India, including Chhattisgarh, Jharkhand, Odisha, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Madhya Pradesh and Kerala, although to varying degrees.
    • Factors Contributing to LWE: Socio-economic disparities, land alienation and displacement of local communities, and issues related to Adivasi rights have contributed to the proliferation of LWE. Left-wing extremist groups have capitalized on these grievances to gain support among marginalized communities.
    • Government Response: The Government of India has taken various measures to counter LWE, including security operations, development initiatives, and rehabilitation programs. Violence related to LWE has decreased by 76% in 2022 compared to 2010, and the geographical spread of violence has also reduced.

    In 2024, Maoists suffer severe setbacks in Chhattisgarh 

    • Maoist Casualties in Chhattisgarh: In 2024, Chhattisgarh reported the highest number of Maoist deaths (141) since the formation of the Communist Party of India (Maoist) in 2004. This spike coincided with the return of the Bharatiya Janata Party (BJP) to power in December 2023.
    • Historical Context and Operations: The year 2009 saw the highest number of Maoist deaths (154) following the launch of ‘Operation Green Hunt’ by the Indian government, which included military offensives involving the Central Reserve Police Force (CRPF) and Chhattisgarh police.
    • Security Forces and Civilian Casualties: While Maoist casualties have increased recently, the number of security force personnel deaths has decreased. Civilian casualties have also reduced since their peak in 2006.
    • District-Wise Insights: Bijapur district witnessed the highest number of clashes in 2024, resulting in significant Maoist casualties. This district, along with Sukma, hosts several Border Security Force (BSF) camps, indicating intense security operations.
    • Surrenders and Operations: Despite some districts being declared ‘Maoist-free’ in recent years, significant operations continue, such as the joint BSF and District Reserve Guard operation in Kanker district resulting in top Maoist commander Shankar Rao’s death.
    • Development and Insurgency: There is a correlation between the intensity of the insurgency and lower development indicators like sanitation and literacy in districts like Dantewada, Bijapur, Sukma, Bastar, and Kanker. These areas are heavily forested, complicating security operations.

    Way forward: 

    • Integrated Development and Security Strategy: Implement a comprehensive strategy that integrates robust security measures with accelerated development initiatives in LWE-affected regions. This approach should prioritize improving socio-economic conditions, addressing land alienation, providing livelihood opportunities, and enhancing basic infrastructure like education and healthcare.
    • Enhanced Intelligence and Targeted Operations: Strengthen intelligence-gathering capabilities to preempt Maoist attacks and disrupt their operational networks effectively. This includes enhancing coordination among security forces, intelligence agencies, and local law enforcement to gather timely and actionable intelligence.

    Mains PYQ: 

    Q Left Wing Extremism (LWE) is showing a downward trend, but still affects many parts of the country. Briefly explain the Government of India’s approach to counter the challenges posed by LWE. (2018)

  • India, Russia to boost bilateral trade to $100 billion by 2030

    Why in the News? 

    During the 22nd Annual Summit on Tuesday, both countries agreed to elevate bilateral trade to $100 billion by 2030. This agreement includes the use of national currencies to bypass Western sanctions.

    Bilateral ties between India-Russia  

    • Long-standing strategic partnership: India and Russia have enjoyed a strong strategic partnership since the Cold War era.
      • This was further strengthened with the signing of the “Declaration on the India-Russia Strategic Partnership” in 2000, which elevated cooperation in various areas including politics, security, defense, trade, and culture.
      • In 2010, the partnership was elevated to a “Special and Privileged Strategic Partnership”.
    • Robust defense cooperation: Russia is India’s largest defense partner, accounting for approximately 68% of India’s military hardware imports in 2017.
      • The two countries have an Inter-Governmental Commission on Military-Technical Cooperation that meets annually.
      • Major defense projects include the MiG-21, Su-30, and the Kudankulam Nuclear Power Plant.
    • Economic and Trade Relations: Russia is India’s 7th largest trading partner, with bilateral trade reaching $45 billion, surpassing the target of $30 billion by 2025.
      • Key areas of economic cooperation include energy, nuclear energy, and the North-South Transport Corridor.
      • Russia is also an important partner in India’s energy security, with investments in the oil and gas sectors.
    • Geopolitical coordination: India and Russia closely collaborate on matters of shared national interest at international forums such as the UN, BRICS, G20, and SCO.
      • Russia supports India’s permanent seat on the UN Security Council and its membership in the NSG and APEC.
      • The two countries also coordinate on regional issues like Afghanistan and the Indo-Pacific.

    Key highlights of the 22nd Annual Summit   

    • Trade and Economic Cooperation: India and Russia have set an ambitious target to increase bilateral trade to $100 billion by 2030. They plan to use national currencies for trade to bypass Western sanctions, reflecting a strategic shift in their economic engagements.
    • Defense and Strategic Partnership: The countries discussed delays in defense supplies and committed to enhancing the co-production of defense equipment.
    • Response to Ukraine Conflict: Prime Minister Modi made a plea for ending civilian casualties and the conflict in Ukraine. Both countries called for a peaceful resolution to the Ukraine conflict in their joint statement, highlighting mediation efforts and adherence to international law.
    • Institutional Agreements and MoUs: Several MoUs were signed on topics including climate change, polar research, legal arbitration, and pharmaceutical certification, demonstrating broad-based cooperation.
    • Recognition and Future Engagements: Modi received Russia’s highest civilian honor, the Order of St. Andrew the Apostle. Putin invited Modi to the “Extended BRICS” summit in Kazan in October 2024, emphasizing ongoing and future high-level engagements.

    Russia Offers Compensation and Citizenship to Kin of Indians Killed in War Against Ukraine

    • Expedited Discharge of Indian Recruits: President Putin accepted Prime Minister Modi’s request to expedite the discharge of Indian nationals recruited by the Russian military. Approximately 40 Indians, currently at the war front, are to be discharged through diplomatic processes.
    • Compensation and Citizenship Offer: Russia has offered compensation and citizenship to the families of Indian nationals who have been killed in the conflict in Ukraine. This move aims to provide support and recognition to the families of the deceased.

    New Delhi and Moscow call for ‘zero tolerance’ towards terrorism

    • Joint Statement on Terrorism: India and Russia reiterated their strong stance against terrorism, emphasizing the need for “zero tolerance” towards all forms of terrorism.
    • Commitment to International Cooperation: Both countries underscored the importance of international cooperation to combat terrorism effectively. They highlighted the necessity for a coordinated global response to address the threat of terrorism.
    • Condemnation of Terrorist Acts: The leaders condemned terrorist acts worldwide and stressed that no cause or ideology could justify the killing of innocent people. They called for the strictest measures to combat and eliminate terrorism.

    Do you know – Why Western sanctions haven’t worked on Russia?

    While the U.S. and some European countries have imposed extensive sanctions, enforcement has been uneven across the coalition. Some nations lack robust mechanisms to prevent violations and struggle to track and penalise offenders effectively. Russia has found ways to sidestep restrictions on critical technologies and dual-use items by re-labelling shipments, diverting products through third countries, and exploiting loopholes in regulations.  They are:

    • Collaborative evasion tactics: Russia’s partnerships with countries like China, Iran, and North Korea enable it to circumvent sanctions and sustain its military capabilities. These strategic alliances facilitate the procurement and transfer of goods, including weapons used in Ukraine.
    • Mutual economic dependence: Europe’s reliance on Russian energy, particularly natural gas, complicates the imposition of severe sanctions without causing significant repercussions for European economies.
      • Russia’s dependence on energy export revenue also makes it reluctant to disrupt energy flows to Europe.
    • Resilience of the Russian economy: Despite the sanctions, Russia’s economy has shown remarkable adaptability. It has redirected trade to China, found alternative suppliers for critical goods, and maintained robust oil and gas sales.

     

    Conclusion: India should work on broadening the range of goods and services exchanged with Russia. Focusing on sectors like pharmaceuticals, information technology, and agricultural products can reduce dependency on any single industry and promote sustainable trade growth.

    Mains PYQ: 

    Q What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC IAS/2020)

  • India to ratify High Seas Treaty

    Why in the News? 

    India has chosen to endorse and formally adopt the High Seas Treaty, a global accord aimed at conserving and safeguarding biodiversity in the oceans.

    • This treaty is frequently linked to the 2015 Paris Agreement due to its extensive scope and potential influence.

    What is the ‘High Seas Treaty’ agreement?

    • The agreement being referred to is the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement, also known as the High Seas Treaty.
    • Aim: To address the conservation and sustainable use of marine biodiversity in areas beyond national jurisdiction, which constitute about 64% of the ocean surface.
    • Objective:  To establish a framework for governing activities in these high seas areas to ensure environmental protection, regulate resource extraction, and promote equitable sharing of benefits from marine genetic resources.
      • It operates within the framework of the United Nations Convention on the Law of the Sea (UNCLOS) and aims to strengthen international cooperation and governance for the preservation of marine biodiversity.

    Significance of the Treaty:

    • Conservation of Marine Biodiversity: It covers a vast portion of the global ocean- these areas are crucial for maintaining biodiversity and ecosystem functions that are vital for global marine health.
    • Governance and Regulation: The treaty establishes a framework for governing human activities in the high seas, such as fishing, mining, and bioprospecting. It seeks to regulate these activities to ensure they are sustainable and do not cause irreversible harm to marine ecosystems.
    • Global Environmental Protection: Similar to the Paris Agreement on climate change, the BBNJ Agreement represents a global effort to protect and manage resources that are essential for the well-being of present and future generations.
      • Addressing threats like overfishing and habitat destruction, it contributes to global efforts towards sustainable development and environmental conservation.
    • Equitable Sharing of Benefits: The treaty includes provisions such as pharmaceutical developments. This ensures that benefits derived from these resources are shared fairly among countries and communities, promoting global equity and access to valuable resources.
    • International Collaboration: It fosters international cooperation and collaboration in ocean governance.
      • By bringing together countries it strengthens the rule of law and promotes transparency and accountability in global ocean management.

    Comparison with the 2015 Paris Agreement on climate change

    Dimensions  High Seas Treaty- Biodiversity Beyond National Jurisdiction (BBNJ) 2015 Paris Agreement 
    Scope and Focus Marine biodiversity conservation in the case of BBNJ Focuses on reducing greenhouse gas emissions and adapting to climate impacts
    Legal Framework It integrates with the UN Convention on the Law of the Sea (UNCLOS) Paris Agreement operates under the United Nations Framework Convention on Climate Change (UNFCCC).
    Approach to Governance Promotes governance structures that facilitate cooperation among nations to achieve common environmental goals. same
    Implications for Global Cooperation Underscore the importance of multilateralism and collective action in addressing global environmental challenges. same

     

    Conclusion: Need to establish robust mechanisms for implementing and monitoring the BBNJ Agreement at national and international levels. This includes setting up effective reporting systems, conducting regular assessments of biodiversity conservation measures, and ensuring compliance with regulations on resource extraction and marine genetic resources.

    Mains PYQ: 

    Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC IAS/2021)

  • The shape of the Manufacturing Base in India

    Why in the News? 

    Prime Minister Narendra Modi has formed the government again, now leading a coalition in his third term. The new administration must intensify its focus on economic reforms, especially those related to manufacturing.

    Significance of Manufacturing Base

    • Economic Growth: Enhancing the manufacturing sector is vital for India’s economic growth. Increasing manufacturing output can significantly boost GDP, as evidenced by the government’s initial target to raise manufacturing from 15% to 25% of GDP by 2025.
    • Employment Creation: A robust manufacturing sector can generate substantial low-skilled employment, which is crucial for absorbing the large workforce transitioning from agriculture. This can help mitigate stress on urban governance structures caused by rapid urbanization.
    • Trade Balance: Strengthening manufacturing can help reduce India’s goods trade deficit, particularly by decreasing reliance on imports of manufactured goods such as electronics, which currently contribute to a significant trade imbalance.
    • National Security: A strong manufacturing base can provide the resources needed for national security. By enhancing industrial capacity, India can better support its defense needs and contribute to regional security, aligning with American interests.
    • Supply Chain Resilience: Developing manufacturing capabilities in India can improve the viability of U.S. supply chains by having production bases in friendly countries. This is particularly important in the face of China’s rising economic and geopolitical influence.

    Issues with the “Business Reforms Action Plan (BRAP)” and the States

    • Outdated Rankings: The BRAP rankings, designed to foster competition among states, have not been updated since the COVID-19 pandemic. This has diminished their effectiveness in motivating states to improve their business environments.
    • Self-Reporting Issues: The BRAP rankings rely heavily on states’ self-reporting of their local business practices, which often does not align with actual investor experiences. This discrepancy undermines the credibility of the rankings.
    • Model Industry Laws: The central government’s initiative to create model industry laws for states has been underwhelming. There is a lack of robust and effective frameworks to guide states in implementing these laws.
    • State-Level Control: Many critical factors of production, such as power, water, sanitation, labor regulations, land acquisition rules, and environmental regulations, are controlled by state governments. This decentralization complicates the implementation of cohesive national policies.
    • Need for Transparent Policies: Encouraging states to adopt thoughtful and transparent industrial policies is challenging. The current toolkit of incentives and penalties needs enhancement to motivate states effectively.

    Role of the US in Improving the Business Attractiveness of Indian States

    • Guidance on Economic Governance: The U.S. can expand engagement with Indian states by providing direct guidance on effective economic governance. This can help states create more investor-friendly environments.
    • Investment Pathways: Improving pathways for potential investors to engage with state governments is crucial. The U.S. can facilitate connections between American investors and Indian states, helping to streamline investment processes.
    • Senior Officials’ Engagement: U.S. officials visiting India should go beyond the major economic hubs of Delhi, Mumbai, and Bengaluru. Engaging with a wider set of large states can highlight the importance and opportunities arising from global supply chain shifts.
    • Policy Redirection: The recent national election provides an opportunity for policy assessment and redirection. The U.S. can support India in aligning its policies with the core needs of the manufacturing push — jobs, trade, and security.
    • Encouraging Job-Creating Sectors: The U.S. can emphasize the importance of job-creating manufacturing sectors such as textiles, paper mills, and furniture, rather than focusing solely on capital-intensive sectors like semiconductors and robotics. This approach can help create more employment opportunities in India.

    Way forward: 

    • Establishment of State-level Economic Advisory Councils: Create advisory councils comprising experts from academia, industry, and government to advise state governments on economic policies, including manufacturing incentives and regulatory frameworks.
    • Review and Update of BRAP Rankings: Overhaul the Business Reforms Action Plan (BRAP) to include independent evaluations and audits alongside self-reporting. Ensure transparency and accuracy in ranking states’ business environments to provide credible guidance for investors.

    Mains PYQ: 

    Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)

  • How to read India’s Balance of Payments?  

     Why in the news? 

    India’s current account showed a surplus in Q4 of 2023-24. However, current account surpluses are not always beneficial, and deficits are not inherently detrimental.

    Latest Data from the Reserve Bank of India (RBI)

    • Current Account Surplus: India registered a current account surplus during the fourth quarter (Jan-Mar) of the 2023-24 financial year, marking the first surplus in 11 quarters.
    • Quarterly vs. Annual Data: Despite the Q4 surplus, the current account balance for the entire FY2023-24 remained in deficit, indicating underlying economic trends and demands.

    What is Balance of Payments (BoP)?

    • The BoP is a ledger of a country’s transactions with the rest of the world, recording all monetary transactions between residents of a country and the rest of the world.
    • It shows the amount of money flowing into and out of the country, indicating the relative demand for the rupee compared to foreign currencies (usually in dollar terms).

    Constituents of the BoP

    The BoP has two main accounts: the Current Account and the Capital Account.

    • Current Account: It covers the trade in goods (exports and imports), trade in services (transportation, tourism, licensing, etc.), Income (wages, interest, dividends, etc.), and current transfers (remittances, foreign aid, etc.).
      • Trade of Goods (Merchandise Account): Records export and import of physical goods. A trade deficit occurs when imports exceed exports.
      • Invisibles of Trade: Includes services (banking, insurance, IT, tourism), transfers (remittances), and income (earnings from investments). These are transactions not visible like physical goods.
      • Net Balance: The sum of the merchandise trade and invisible trade determines the current account balance. Q4 showed a surplus in the current account due to a surplus in invisible despite a trade deficit.
    • Capital Account: It covers debt forgiveness, migrants’ transfers of financial assets, taxes on gifts and inheritances, and ownership transfers of fixed assets.
      • Investments: Captures transactions related to investments such as Foreign Direct Investment (FDI) and Foreign Institutional Investments (FII).
      • Net Balance: Q4 showed a net surplus of $25 billion in the capital account.

    Impact on the Indian Economy: 

    • Exchange Rate Stability: The current account surplus in Q4 helped stabilize the exchange rate of the rupee. By absorbing excess dollars, the Reserve Bank of India (RBI) prevented excessive appreciation of the rupee, which helps maintain the competitiveness of Indian exports.
    • Improved Sovereign Ratings: A current account surplus can positively impact India’s sovereign credit ratings, as it indicates stronger external financial health and reduces reliance on foreign borrowing.
    • Foreign Exchange Reserves: The surplus contributed to an increase in India’s foreign exchange reserves, enhancing the country’s ability to manage external shocks and providing a buffer against global economic uncertainties.
    • Investment Climate: A surplus in the capital account, driven by Foreign Direct Investment (FDI) and Foreign Institutional Investments (FII), indicates investor confidence in the Indian economy, potentially leading to more robust economic growth and development.
    • Economic Health Indicators: Despite the Q4 surplus, the annual current account deficit suggests robust domestic demand and investment needs. This aligns with a growing economy that requires imports of capital goods to enhance production capacity and future export potential.

    Way forward: 

    • Enhance Export Competitiveness: India should focus on boosting its export sector by diversifying export products and markets, improving product quality, and providing incentives for export-oriented industries.
    • Promote Sustainable Foreign Investment: Encouraging sustainable and long-term foreign investments, particularly in sectors like manufacturing, technology, and renewable energy, can strengthen the capital account. 

    Mains PYQ: 

    Q Craze for gold in Indian has led to surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization scheme. (UPSC IAS/2015)