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  • Finance Commission – Issues related to devolution of resources

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

    23 April 2024 | Explained | Polity
    Mains Paper 2: Federalism

    Note4Students

    From UPSC perspective, the following things are important:

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

    Mains level: Issues related to Federalism in India;

    Why in the News? 

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

    What is Federalism?

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

     

    Indian Federalism:

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

    Federal Features

    Non-federal features

    The Present Political Federal Issues in India:

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

    The Present Fiscal Federal issues in India:

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

    Bodies related to the Federal System in India:

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

    Committee Recommendation:

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

     

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

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

    Prelims PYQ 

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

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

     

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

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

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

    Which of the Statement given above is/are correct?

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

    Mains PYQ 

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

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

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

    What is the outlook on the global economy? | Explained

    22 April 2024 | Explained | Economics
    Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Global Financial Stability Report

    Mains level: What does it mean for India?

    Why in the news? 

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

    What is the IMF’s worry about Inflation?

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

    How it will impact the Indian Market?

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

    Private Credit Market Scenario:

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

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

    Mains PYQ:

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

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  • Capital Markets: Challenges and Developments

    What are the new Green Credit Programme rules? | Explained

    22 April 2024 | Explained | Economics
    Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Green Credit Programme;

    Mains level: Sustainable Growth; GCP stoked controversy;

    Why in the news? 

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

    What is the Green Credit Programme?

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

    Features of the Green Credit Programme:

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

    Why has the GCP stoked controversy?

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

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

    Mains PYQ 

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

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

    Sustaining our Earth and Nourishing our Bodies

    22 April 2024 | Explained | Environment
    Mains Paper 1: Important Geophysical Phenomena

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Climate Change;

    Why in the news? 

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

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

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

    Suggestive measures for reducing Emissions

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

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

    Mains PYQ:

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

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

    On the fall in Household Savings

    22 April 2024 | Explained | Economics
    Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: National Income; Household Savings;

    Mains level: NA

    Why in the news? 

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

    BACK2BASICS:

    What are household financial savings?

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

    What is Household Debt?

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

     

    What are the present reasons behind the Lower Financial savings?

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

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

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

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

    Macroeconomic Implication:

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

    Suggestive measures:

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

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

    Mains PYQ:

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

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  • The Crisis In The Middle East

    Israel, a two-state solution, some recent perceptions

    20 April 2024 | Explained | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

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

    Why in the news?

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

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

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

    Continue Struggle after Arab-Israeli War 1948 

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

    Why Israel’s position is so strong in conflict?

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

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

    Mains PYQ

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

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  • Modern Indian History-Events and Personalities

    Scripting a new tribal identity

    20 April 2024 | Explained | History
    Mains Paper 1: Modern Indian History

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: ribal Leaders in the Freedom Struggle

    Mains level: Contributions of Tribal Leaders in the Freedom Struggle

    Why in the news? 

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

    Contributions of Tribal Leaders in the Freedom Struggle

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

    Impact of Tribal Revolts during Freedom Struggle: 

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

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

    Mains PYQ 

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

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  • Russian Invasion of Ukraine: Global Implications

    A world in disarray, a concern about the future

    19 April 2024 | Explained | International Relations
    Mains Paper 2: Important International Institutions

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Factors behind the concerning current geopolitical landscape

    Why in the news? 

    Factors such as the lack of globally influential leaders, evolving alliances, economic challenges, and advancements in technology contribute to the current geopolitical landscape.

    Factors behind the concerning current geopolitical landscape

    Growing chaos, an absent leadership

    • Decline of the rules-based international order: The traditional Western-led global order is perceived as dead, leading to increased geopolitical disarray.
    • Rise of new alliance patterns: With the weakening of the West and the ascent of China, new alliances have emerged, but none possess enough strength to maintain global peace.
    • Lack of influential leaders: Leaders like Xi Jinping, Vladimir Putin, and Joe Biden are seen as lacking the ability to sustain peace globally, with many other Western leaders deemed inadequate for the task.
    • Potential for conflict escalation: While shooting wars are limited to certain regions like Ukraine and Gaza, there’s concern about the absence of leaders capable of resolving conflicts peacefully.
    • Stalemate in Ukraine: The situation in Ukraine remains deadlocked, with leaders unwilling to compromise, raising concerns about the possibility of the use of battlefield nuclear weapons.
    • Escalating tensions in West Asia: Israel’s actions, described as those of a “wounded tiger,” are leading to increased casualties in Gaza, while Iran poses a direct threat to Israel, potentially leading to a broader conflict with dire implications.
    • Potential leadership shift in militant Jihadism: There are indications that a resurgent Iran could take over the leadership of militant Jihadism against the West and other perceived “infidels,” further complicating the geopolitical landscape.

    A new set of alliances

    • Great power rivalry appears diminished: The rivalry between the U.S. and China is described as a “shadow play” with little significance beyond proxy conflicts.
    • U.S. setbacks and diminished superpower status: The U.S. is perceived as grappling with hubris following setbacks since Afghanistan in 2020, which has diminished its status as a superpower.
    • Europe’s reliance on NATO and limited influence: Europe’s reliance on NATO for protection from Russia has not translated into significant influence in conflicts like Ukraine, despite significant costs.
    • Emerging China-Russia-Iran axis: The alliance between China, Russia, and Iran poses a challenge to U.S. and Western influence in West Asia, raising questions about their tactics in the region.

    Economic challenges

    • Geopolitics of oil: The China-Russia-Iran axis signals a significant shift in the politics of oil, which is likely to have far-reaching consequences for global stability.
    • Diminished effectiveness of sanctions: Sanctions are seen as losing their impact in the face of changing geopolitical dynamics, potentially leading to a major economic slowdown.

    Advancements in technology 

    • Technology as a disruptor: National security efforts are increasingly focused on protecting vital technologies, with artificial intelligence emerging as a major disruptor in conventional warfare.
    • Rise of smaller nations leveraging AI: Smaller nations are leveraging artificial intelligence to challenge the military dominance of larger powers like the U.S. and China, potentially leveling the playing field.
    • Impact of ISR revolution in warfare: The military intelligence, surveillance, and reconnaissance (ISR) revolution, enabled by drones, aircraft, and space assets, is transforming the battlefield, posing new challenges for military strategies.
    • Nuclear arms race and arms control fraying: Arms control agreements are deteriorating, leading to the development of new nuclear warheads and cruise missiles, raising concerns about a nuclear makeover and potential use of nuclear weapons.

    Conclusion: The breakdown of the rules-based order, inadequate leadership, and the formation of volatile alliances contribute to geopolitical turmoil. Need of robust leadership and coherent strategiesto avoid the conflict escalation in the world.

    Mains PYQ 

    Q (UPSC IAS/2022) (a): Russia and Ukraine war has been going on for the last seven months. Different countries have taken independent stands and actions keeping in view their own national interests. We are all aware that war has its own impact on the different aspects of society, including human tragedy. What are those ethical issues that are crucial to be considered while launching the war and its continuation so far? lllustrate with justification the ethical issues involved in the given state of affairs.

    (b): Write short notes on the following in 30 words each:

    (i) Constitutional morality

    (ii) Conflict of interest

    (iii) Probity in public life

    (iv) Challanges of digitalization

    (v) Devotion to duty

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

    Why have private investments dropped? | Explained

    19 April 2024 | Explained | Economics
    Mains Paper 3: Indian Economy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Gross Fixed Capital Formation (GFCF)

    Mains level: Why has private investment fallen?

    Why in the news? 

    The failure of private investment, as measured by private Gross Fixed Capital Formation (GFCF) as a percentage of gross domestic product (GDP) at current prices, to pick up pace has been one of the major issues plaguing the Indian economy.

    What is GFCF?

    • GFCF refers to the growth in the size of fixed capital in an economy.
    • Fixed capital refers to things such as buildings and machinery, for instance, which require investment to be created.
    • So private GFCF can serve as a rough indicator of how much the private sector in an economy is willing to invest.
    • Overall GFCF also includes capital formation as a result of investment by the government.

    Why does it matter?

    • GFCF matters because fixed capital, by helping workers produce a greater amount of goods and services each year, helps to boost economic growth and improve living standards.
    • In other words, fixed capital is what largely determines the overall output of an economy.

    What is the trend seen in private investment in India?

    • Pre-liberalization (1950s to early 1990s): Private investment remained relatively stable, hovering around or slightly above 10% of GDP. Public investment, however, steadily increased during this period.
    • Liberalization (early 1990s onwards): Economic reforms in the early 1990s improved private sector confidence, leading to a significant uptick in private investment. Public investment, although still significant, began to decline relative to private investment.
    • Post-global financial crisis (late 2000s to present): Private investment continued to grow until the global financial crisis of 2007-08, reaching around 27% of GDP. However, from around 2011-12 onwards, private investment began to decline, hitting a low of 19.6% of GDP in 2020-21.

    Why has private investment fallen?

    • Low private consumption expenditure: Some economists attribute the decline in private investment to low private consumption expenditure. They argue that businesses need confidence in future demand to invest in fixed capital, and boosting consumption expenditure can help stimulate private investment.
    • Structural problems and policy uncertainty: Other economists argue that structural issues and policy uncertainty are core reasons behind the fall in private investment. They point to unfavourable government policies and policy uncertainty as major factors affecting private investment.

    Conclusion: To address the decline in private investment, India needs policies promoting consumer confidence and stable, conducive business environments. Balancing pro-growth fiscal measures with structural reforms can stimulate investment, fostering economic growth and prosperity.

    Mains PYQ 

    Q Explain the meaning of investment in an economy in terms of capital formation. Discuss the factors to be considered while designing a concession agreement between a public entity and private entity.(UPSC IAS/2020)

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  • The Crisis In The Middle East

    Where India’s trade with Israel and Iran stands, and whether regional tensions could impact it

    19 April 2024 | Explained | International Relations
    Mains Paper 2: Effect Of Policies & Politics Of World On India’S Interests

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: How could Middle East tensions impact the Indian economy?

    Why in the news? 

    Iran’s attack on Israel earlier this week has sparked tensions in the Middle East and beyond. India, which has friendly ties with both the countries, has expressed “serious concerns” about escalation of hostilities.

    India-Israel trade has doubled in the last five years

    • India established diplomatic relations with Israel in 1992. Since then, trade between two countries has been rising significantly, from around $200 million in 1992 (comprising primarily of diamonds), to $10.7 billion (excluding defence) in the Financial Year 2022-23.

    What are the main components of India’s trade with Israel?

    • Based on India’s 8-digit Harmonized System code, under which trade items are classified, the most valued items exported by India to Israel included diesel, diamonds, aviation turbine fuel, radar apparatus, Basmati rice, T-shirts, and wheat.

    Value of India-Iran trade came down in the last five years

    • India’s trade with Iran has seen a contraction in recent years, before an uptick in the FY 2022-23. It increased by 21.77 per cent — from $1.94 billion in 2021-22 to $2.33 billion in 2022-23.

    Israel and Iran do not have significant FDI in India

    • Israel’s FDI in India: Israel’s contribution to Foreign Direct Investment (FDI) in India is relatively low, accounting for just 0.4% of the total FDI inflows between April 2000 and December 2023. FDI from Israel to India amounted to $288 million during this period.
    • Indian Investment in Israel: Conversely, Indian firms have invested more in Israel, with cumulative Overseas Direct Investment (ODI) reaching around US$ 383 million from April 2000 to May 2023.
    • India’s Investment in Iran: India is involved in developing the first phase of the Shahid Beheshti Port at Chabahar in Iran. This initiative aims to enhance India’s connectivity and trade relations with the Middle East and Central Asia.

    How could Middle East tensions impact the Indian economy?

    • Impact on Trade Routes: Tensions in the Middle East, particularly in the Red Sea region, could disrupt crucial trade routes connecting Europe and Asia. Roughly 12 percent of global trade depends on this route, potentially affecting India’s trade.
    • Shipping Disruptions: Yemen-based militants, known as the Houthis, have targeted ships passing through the Red Sea since November 2023, leading to shipping disruptions. This could exacerbate India’s trade problems.
    • Stability Concerns in West Asia: The conflict between Iran and Israel adds to the instability in West Asia, potentially delaying projects like the Middle East-Europe Economic Corridor (IMEC).
    • Impact on Petroleum Prices: While the ongoing conflict may not significantly disrupt crude oil and gas production, shipping disruptions in the Red Sea could lead to higher oil and gas prices. However, the impact on Indian consumers may be minimal as the government could offset price increases by reducing taxes.

    Conclusion: India’s friendly ties with both Israel and Iran provide an opportunity for diplomatic engagement to mitigate the escalation of hostilities in the region. By actively participating in diplomatic efforts to de-escalate tensions and promote dialogue, India can contribute to regional stability and safeguard its economic interests.

    Mains PYQ 

    Q There arose a serious challenge to the Democratic State System between the two World Wars.” Evaluate the statement. (UPSC IAS/2021)

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