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
From UPSC perspective, the following things are important :
Prelims level: Why Are Methane Emissions a Problem?
Mains level: Significance of tax
Why in the news?
Denmark will impose a tax on its livestock farmers for the greenhouse gases (GHGs) emitted by their cows, sheep, and pigs from 2030.
What is it?
Denmark plans to impose a tax on livestock farmers for greenhouse gases (GHGs) emitted by their cows, sheep, and pigs starting in 2030.
Tax Rates: Farmers would initially pay about $43 per metric ton of carbon dioxide equivalent produced by their livestock, increasing to around $108 by 2035.
Actual Cost: Due to a 60% income tax deduction, the actual cost per ton will start at 120 kroner ($17.3) and rise to 300 kroner ($43) by 2035.
Use of Tax Collection: The funds collected from the tax between 2030 and 2031 will be returned to the industry to support its green transition. The handling of proceeds will be revisited in 2032. The proposal includes the development of over 600,000 acres of new forest areas.
How Do Cows and Sheep Produce Methane?
Ruminants like cows, sheep, goats, and buffaloes have a specialized digestive system with four stomach compartments, including the rumen. In the rumen, partially digested food ferments, producing methane.
Methane is released primarily through burping and farting as the animals regurgitate and chew cud to complete the digestive process. Ruminant digestive systems are responsible for 27% of all methane emissions from human activity.
Why Are Methane Emissions a Problem?
Climate Impact: Methane is a potent greenhouse gas, responsible for 30% of warming since preindustrial times, second only to carbon dioxide. Over a 20-year period, methane is 80 times more potent at warming than carbon dioxide.
Ground-Level Ozone: Methane is the primary contributor to ground-level ozone formation, a highly irritating gas just above the Earth’s surface, contributing to 1 million premature deaths annually.
Rising Levels: Atmospheric methane levels have dramatically increased in recent years, with the NOAA reporting a record 17 parts per billion increase in 2021, surpassing the previous record set in 2020.
Way forward:
Dietary Adjustments: Introduce feed additives, such as seaweed or other natural supplements, that can reduce methane emissions during digestion in ruminants. This approach can significantly lower methane production without negatively impacting livestock health or productivity.
Improved Manure Management: Utilize advanced manure management practices, such as anaerobic digestion, to capture and convert methane emissions from decomposing animal waste into biogas. This not only reduces methane emissions but also provides a renewable energy source.
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)
From UPSC perspective, the following things are important :
Prelims level: Panchsheel policy
Why in the News?
China is set to commemorate the 70th anniversary of the Five Principles of Peaceful Coexistence, a foreign policy concept initially outlined in a 1954 agreement with India, with special events scheduled for Friday, June 28th.
How it started?
Historical Context: India attained independence from British rule in 1947, and the People’s Republic of China was established in 1949 after a civil war victory by the Chinese communists. Nehru aimed to establish good relations with China based on trust and mutual respect, a sentiment reciprocated by China initially.
Origins and Proposal: The Five Principles of Peaceful Coexistence, known as Panchsheel in India, were proposed by Chinese Premier Zhou Enlai during bilateral talks with India over Tibet in 1954. This initiative was favored by Indian Prime Minister Jawaharlal Nehru.
Panchsheel Agreement: The agreement, formally titled “The Agreement on Trade and Intercourse with Tibet Region,” was signed on April 29, 1954. It was intended to enhance trade and cooperation, establishing trade centers and pilgrimage routes while recognizing Tibet as part of China.
Principles: The five guiding principles laid out in the agreement were mutual respect for territorial integrity and sovereignty, mutual non-aggression, mutual non-interference, equality and mutual benefit, and peaceful coexistence.
Bandung Conference: The Five Principles featured prominently in the 1955 Bandung Conference in Indonesia, which included 29 Asian and African countries. The principles were co-opted into a 10-point declaration and later became central to the Non-Aligned Movement (NAM).
Present Scenario:
After the India-China War of 1962: The principles of Panchsheel were severely undermined by the Sino-Indian War in 1962, leading to criticism of Nehru for misjudging Chinese intentions.
China’s Foreign Policy Shift: Over the past three decades, especially under President Xi Jinping, China has adopted a more aggressive foreign policy. This includes territorial claims in the South China Sea and hostile situations with neighbouring countries.
China’s Relations with the U.S: China’s relationship with the United States has been marked by hostility, characterized by trade and diplomatic challenges to American dominance globally.
India-China Relations Today: Since 2020, Indian and Chinese forces have been in a standoff along the Line of Actual Control (LAC) in Ladakh, with repeated but unsuccessful attempts to resolve the conflict.
Commemoration of 5 Principles by China: Despite the current strained relations, China commemorates the 70th anniversary of the Five Principles with a forward-looking theme, emphasizing building a community with a shared future for mankind.
Way forward: (What can India do?)
Engage in Diplomatic Dialogue: Despite historical tensions, maintaining open lines of diplomatic communication with China is crucial. India can continue efforts to engage in dialogue at multiple levels to manage and resolve bilateral disputes, including the ongoing situation along the Line of Actual Control (LAC) in Ladakh.
Strengthen Regional Alliances: Enhancing partnerships with other countries in the region and beyond can provide India with strategic leverage. Strengthening alliances through economic cooperation, military partnerships, and cultural exchanges can help counterbalance China’s influence and foster stability in the region.
Focus on Economic and Technological Development: Investing in economic growth and technological advancement can bolster India’s position on the global stage. Developing robust infrastructure, promoting innovation and entrepreneurship, and advancing sustainable development goals can strengthen India’s resilience and competitiveness in the face of geopolitical challenges.
Mains PYQ:
Q China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC IAS/2017)
From UPSC perspective, the following things are important :
Prelims level: Starliner mission
Mains level: Cause of delay of Starliner Crew Flight Test mission
Why in the News?
The scheduled return of the Starliner spacecraft, which transported NASA astronauts Sunita Williams and Butch Wilmore to the International Space Station (ISS) earlier this month, has been delayed.
What is the Starliner mission?
Objective: The Starliner Crew Flight Test mission aimed to transport NASA astronauts Sunita Williams and Butch Wilmore to the International Space Station (ISS) and demonstrate the spacecraft’s capability to safely ferry crew to and from low-Earth orbit (LEO).
Craft Description: CST-100 Starliner, developed by Boeing in collaboration with NASA’s Commercial Crew Program, is designed to accommodate up to seven passengers or a mix of crew and cargo for LEO missions. It is reusable up to 10 times with a turnaround time of six months.
Significance: Marks Boeing’s contribution to NASA’s efforts since the retirement of the Space Shuttle Program in 2011, alongside SpaceX’s Dragon spacecraft, which first delivered cargo in 2012 and transported astronauts in 2020.
What has caused the delay?
Technical Issues: Multiple setbacks delayed the mission, including a faulty pressure valve on the Atlas V upper stage, engineering problems with other mechanisms, and issues with a spacecraft valve regulating oxidisers.
Specific Challenges: Post-launch, Starliner encountered five helium leaks, malfunctioning maneuvering thrusters, and a propellant valve failure, necessitating mid-mission fixes and assessments.
What would happen to the astronauts?
Current Status: Sunita Williams and Butch Wilmore remain aboard the ISS, where they are conducting research and experiments. The spacecraft can stay docked for up to 45 days, and the ISS has sufficient supplies for extended periods.
Contingency Plan: If safety concerns persist or the Starliner issues cannot be resolved in time, the astronauts may return to Earth aboard SpaceX’s Dragon spacecraft, currently also docked at the ISS.
Way forward ( what can NASA do?)
Thorough Technical Review: NASA should conduct a comprehensive technical review of the Starliner spacecraft’s systems and components to identify the root causes of the multiple issues encountered during the mission.
Enhanced Mission Preparedness: NASA should prioritise enhancing mission preparedness protocols for commercial crew missions, including stricter pre-launch checks, contingency planning for mid-mission anomalies, and robust communication and coordination between mission control and astronauts aboard the ISS. This proactive approach can mitigate risks and ensure smoother operations in future missions.
Mains PYQ:
Q What is India’s plan to have its own space station and how will it benefit our space programme? (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Mains level: What has the Commission done on the PPAs so far?
Why in the news?
On June 27, the Telangana High Court postponed the hearing on a petition filed by Bharat Rashtra Samiti (BRS) president and former Telangana Chief Minister K Chandrashekar Rao. The petition sought to halt all future proceedings of the Justice (retired) L Narasimha Reddy Commission until Friday.
What is the Narasimha Reddy Commission?
Formation: Appointed by the Congress government of Chief Minister A Revanth Reddy in March 2024.
Purpose: To investigate Power Purchase Agreements (PPAs) made with Chhattisgarh in 2014-15 and construction of power projects at Yadadri and Bhadradri. Allegations of irregularities in the Kaleshwaram irrigation project.
What is Power Purchase Agreements (PPAs)?
Power Purchase Agreements (PPAs) are long-term contracts between electricity producers (such as power plants) and purchasers (such as utilities, governments, or large industrial consumers).
These agreements stipulate the terms under which electricity is to be generated, delivered, and sold over a specified period.
What has the Commission done on the PPAs so far?
Notice Issued: On June 11, the Commission issued a notice to K Chandrashekar Rao (KCR) requesting a response by June 15 regarding the PPAs made during his tenure (2014-2023).
KCR’s Response: KCR accused the Commission of bias and political motivation, requesting Justice Reddy to recuse himself.
Legal Action: Anticipating a personal summons, KCR filed a petition in the Telangana High Court seeking a stay on all proceedings of the Commission.
Energy Minister Notice: G Jagdish Reddy, Energy Minister in KCR’s Cabinet, was also issued a notice to appear before the Commission to provide a statement regarding the PPAs.
Allegations Regarding the Power Plants
Irregularities in Construction: The Narasimha Reddy Commission is investigating allegations of irregularities in the construction of the Bhadradri Thermal Power Plant at Manuguru and the Yadadri Thermal Power Plant at Damaracherla.Both projects were executed by the Telangana State Power Generation Corporation (TG GENCO).
Specific Concerns: The focus is on potential discrepancies and irregularities during the construction process, which may involve issues related to project execution, costs, and adherence to regulatory norms.
Way forward:
Fair and Transparent Investigation: The Narasimha Reddy Commission should ensure a fair and transparent investigation into the allegations concerning Power Purchase Agreements (PPAs) and the construction of power projects.
Collaboration and Accountability: Stakeholders, including former government officials and current authorities involved in the projects under scrutiny, should cooperate fully with the Commission.
From UPSC perspective, the following things are important :
Prelims level: Leader of Opposition in Lok Sabha and Rajya Sabha
Mains level: Significance of the Leader of Opposition
Why in the news?
For a decade, the Leader of Opposition in Lok Sabha remained vacant due to the absence of any party meeting the customary threshold of one-tenth of the House’s strength, now filled by Rae Bareli MP Rahul Gandhi.
Leader of Opposition in the past:
Who can serve as Leader of Opposition in Lok Sabha and Rajya Sabha?
Legal Definition: According to The Salary and Allowances of Leaders of Opposition in Parliament Act, 1977, the Leader of the Opposition is a member of the Lok Sabha or Rajya Sabha who leads the largest party in opposition to the government, recognised by the Speaker (Lok Sabha) or Chairman (Rajya Sabha).
Needed Strength: The leader must lead the party with the greatest numerical strength among the opposition parties in the respective House.
Recognition: The Speaker (Lok Sabha) or Chairman (Rajya Sabha) is mandated to recognize the leader of the largest opposition party as the Leader of the Opposition, irrespective of the party having a minimum threshold of 10% seats in the House.
Significance of the positions and its significant role in Indian Political Democracy
Voice of the Opposition: The Leader of the Opposition serves as the primary spokesperson for the opposition in the House, articulating their views, criticisms, and alternative policies to those of the government.
Role in Committees: The Leader of Opposition plays a crucial role in high-powered committees responsible for appointments to key posts like the Director of CBI, Central Vigilance Commissioner, and others. This ensures a bipartisan approach in crucial appointments.
Ceremonial Role: The Leader of Opposition enjoys ceremonial privileges such as sitting in the front row during important occasions like the President’s Address to Parliament, symbolizing their role as a significant political figure.
Constitutional Checks and Balances: By providing an institutionalized position for the opposition, the Leader of Opposition ensures checks and balances on the ruling party’s power, fostering democratic accountability and oversight.
Precedence and Protocol: In the order of precedence, the Leader of Opposition ranks alongside Union Cabinet Ministers and other senior officials, reflecting their role in the functioning of the parliamentary democracy.
Conclusion: The Leader of Opposition in Lok Sabha and Rajya Sabha, recognized per the 1977 Act, leads the largest opposition party, ensuring a vital role in governance oversight, committee appointments, and parliamentary protocol, crucial for democratic checks and balances.
Mains PYQ:
Q The Indian Constitution has provisions for holding joint sessions of the two houses of the Parliament. Enumerate the occasions when this would normally happen and also the occasions when it cannot, with reasons thereof. (UPSC IAS/2017)
From UPSC perspective, the following things are important :
Prelims level: NAFED, Open Market
Mains level: How Buffer in Chana Helped
Why in the news?
Sales of wheat and chana in the open market have effectively curbed soaring inflation in cereals and pulses.
What is an Open Market?
An open market is an economic system with little to no barriers to free-market activity. An open market is characterized by the absence of tariffs, taxes, licensing requirements, subsidies, unionization, and any other regulations or practices that interfere with free-market activity. Open markets may have competitive barriers to entry, but never any regulatory barriers to entry.
Present State of Inflation:
Overall CPI Inflation: Stood at 4.75% year-on-year in May, the lowest in 12 months, but food inflation remained elevated at 8.69%.
Cereals and Pulses: Inflation rates were 8.69% for cereals and 17.14% for pulses in May 2024.
Impact of Buffer Stocks: Buffer stocks of wheat and chana moderated inflation by ensuring sufficient supply during periods of price volatility.
How Buffer in Gram(Chana) Helped:
NAFED Procurements: Procured large quantities of chana during surplus years at MSP, preventing prices from soaring during crop failures.
Distribution: Sold chana through various channels including open market e-auctions and ‘Bharat Dal’ at subsidized rates, stabilizing prices for consumers.
Current Stock Levels: Despite recent sales, NAFED still maintains a buffer stock of 4.01 lakh tonnes of chana as of now.
Significant Role Played by FCI:
Wheat Offloading: FCI offloaded a record 100.88 lakh tonnes of wheat in fiscal 2023-24 through open market sales, stabilizing prices and reducing inflation.
Retail Price Management: Sales under schemes like ‘Bharat Atta’ ensured wheat and cereal inflation was reduced from peak levels earlier in 2023.
Buffer Management: Despite reduced stocks from previous years, FCI’s interventions have been crucial in managing price volatility in essential commodities.
Need to Adopt Buffer Policy and Better Procurement:
Buffer Stock Strategy: Proposal to expand buffer stocks beyond rice, wheat, and select pulses to include oilseeds, vegetables, and even milk powder to mitigate price spikes.
Enhanced Procurement: Advocates for increased procurement during surplus years to build adequate buffer stocks for future market stabilization.
Policy Impact: Buffer stocking can moderate price volatility influenced by climate change-induced agricultural uncertainties, benefiting both consumers and producers.
Way forward:
Enhanced Diversification of Buffer Stocks: There is a need to diversify buffer stocks beyond traditional items like rice and wheat to include a broader range of essential commodities such as oilseeds, vegetables, and milk powder. This expansion would help in better managing price spikes and supply shocks across various sectors.
Strengthened Procurement Mechanisms: Improving procurement strategies during surplus production years is crucial. This involves proactive measures to purchase larger quantities of commodities at minimum support prices (MSPs), ensuring adequate buffer stocks for future market stabilization and price moderation during scarcity periods.
Mains PYQ:
Q Food Security Bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in WTO. (UPSC IAS/2013)
From UPSC perspective, the following things are important :
Prelims level: Small Savings Schemes
Mains level: Impact of Stable Interest Rates on Small Savings Schemes
Why in the news?
The central government of India is set to announce the interest rates for various small savings schemes, including the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), and Post Office Monthly Income Scheme (POMIS), for the July-September 2024 quarter by June 30, 2024.
Current Interest Rates and Expected Changes
Public Provident Fund (PPF)
Current Rate: 7.1%
Expected Rate: Despite the benchmark 10-year bond yield averaging 7.02% from March to May 2024, which would suggest a rate of 7.27% according to the formula, experts believe the government will likely maintain the status quo.
Reason: Factors such as controlled inflation, stable 10-year G-Sec yields, and historical precedence of the government not strictly following the recommended formula indicate a low probability of rate hikes.
2. Senior Citizen Savings Scheme (SCSS)
Current Rate: 8.2%
Expected Rate: Unlikely to see significant changes.
Reason: With a spread of 100 basis points, the SCSS offers a substantial return, and experts predict the government will maintain existing rates to manage fiscal policies effectively.
3. Sukanya Samriddhi Yojana (SSY)
Current Rate: 8.0%
Expected Rate: Expected to remain stable.
Reason: The SSY enjoys a spread of 75 basis points. Given the controlled inflation and fiscal policies, a rate hike is not anticipated.
Factors Influencing Interest Rates
Benchmark Yields: The interest rates for small savings schemes are linked to the yields of 10-year government securities.
Market Conditions: Prevailing market yields and inflation rates play a crucial role in determining these rates.
Government Policy: The central government’s fiscal strategy and policies, such as those outlined in the Union Budget, impact decisions on interest rates.
Impact of Stable Interest Rates on Small Savings Schemes
Investor Sentiment and Returns
PPF: Investors in PPF may feel disappointed due to the stagnation in interest rates despite a slight uptick in benchmark yields. However, PPF still offers tax-free returns under the Exempt-Exempt-Exempt (EEE) status, making it an attractive long-term investment.
SCSS and SSY: Stability in interest rates ensures a predictable income stream for senior citizens and parents of girl children, maintaining their trust in these schemes.
Government Fiscal Management: Maintaining the current interest rates helps the government manage its fiscal deficit more effectively. Higher rates would increase the interest burden on the government, especially for widely subscribed schemes like PPF.
Inflation Control: Stable interest rates reflect the government’s confidence in managing inflation. By not increasing rates, the government signals that it sees inflation as under control, thus aiming to keep borrowing costs stable for both the government and the public.
Market Stability: Consistent interest rates contribute to market stability. Predictable returns on small savings schemes help in the planning of household finances, ensuring steady savings and investments. This stability can also foster overall economic stability by maintaining consumer confidence.
Conclusion: Investors in PPF, SCSS, and SSY should prepare for the possibility that interest rates will remain unchanged for the July-September 2024 quarter. While the formula indicates room for an increase in PPF rates, historical trends and expert opinions suggest that the government may maintain the current rates to balance fiscal control and market stability.
Mains PYQ:
Q Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing the unbanked to the institutional fiancé fold. Do you agree with this for the financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Prelims level: Eurasia; Government Initiatives;
Mains level: Strategic dependence on Eurasian countries;
Why in the News?
The significant upheaval caused by the increasing interdependence of European and Asian theatres is accompanied by the rise of influential middle powers. India can seize this opportunity to enhance its national power.
Complex and Deepening Interconnections between European and Asian Security:
Asia’s Active Role in European Geopolitics: Unlike the colonial era, Asian states now actively influence the balance of power in Europe. Both Russia and Western Europe are engaging Asia to shape the narrative on the Ukraine war.
Asian Arms Supply to Europe: Asia has emerged as a major supplier of arms in European conflicts, with North Korea supplying ammunition to Russia and South Korean arms flowing to Ukraine.
Asian Agency in Great Power Dynamics: Putin’s visit to North Korea and Vietnam highlights the increased agency of Asian states in leveraging great power rivalries for their own strategic benefits.
Impact on Western Alliances: The increasing agency of Asian countries like North Korea and South Korea affects the dynamics of Western alliances, with the US seeking stronger ties with South Korea and Japan in response to Russia’s actions.
Scope for a Strategic Window:
Increased Asian Maneuverability: Countries like Vietnam are skillfully balancing their relationships with China, the US, and Russia, enhancing their strategic autonomy and influence in the region.
Western Dilemmas: The US is facing challenges in balancing its strategic focus between Europe and Asia, with debates on whether to prioritize the Ukraine conflict or the challenge posed by China.
Europe’s Defence Responsibilities: Both Biden and Trump agree on the need for Europe to take greater responsibility for its own defense, urging Eurasian nations to balance Russia and China.
Opportunities for Middle Powers: Middle powers like India have a unique opportunity to enhance their national power and military capabilities through strategic partnerships with the US and its allies. This includes modernizing India’s defense industrial base and expanding arms production, crucial for achieving strategic autonomy.
Way forward:
Engage with Key Allies: India should Deepen strategic partnerships with the US, Japan, Australia, and South Korea to enhance security cooperation and joint defense initiatives.
These partnerships can provide India with access to advanced military technology and training, as well as opportunities for joint exercises and intelligence sharing.
Leverage International Platforms: India must actively participate in international platforms like the Quad and the Coalition for Disaster Resilient Infrastructure (CDRI) to strengthen India’s role in regional security and disaster resilience efforts.
Mains question for practice:
Q Discuss the complex and deepening interconnections between European and Asian security in the current geopolitical landscape. How can India leverage these dynamics to enhance its national power? 15M
From UPSC perspective, the following things are important :
Prelims level: India-Tibet Relations; Neighbourhood first policy;
Mains level: Challenges related to the Promotion of Resolution to the Tibet-China Dispute Act;
Why in the News?
A U.S. lawmaker delegation’s visit to Dharamshala closely followed the passage of the ‘Promoting a Resolution to the Tibet-China Dispute Act’ in Congress, awaiting Biden’s approval.
About the delegation on ‘Promoting a Resolution to the Tibet-China Dispute Act’
Legislative Background: The U.S. Congress passed the ‘Promoting a Resolution to the Tibet-China Dispute Act,’ emphasizing support for Tibetan autonomy and human rights.
The delegation’s visit to Dharamshala, India, followed this legislative action to underscore U.S. commitment to Tibetan freedom.
Delegation Composition and Purpose: The delegation included bipartisan U.S. lawmakers who were co-authors of the Act, invited by the Central Tibetan Administration.
Their visit aimed to advocate for restarting dialogue between the Dalai Lama’s representatives and Beijing, stalled since 2010.
India’s Diplomatic Calculus: Hosting the U.S. delegation amidst ongoing tensions with China signals India’s nuanced diplomacy in managing its relations with both nations.
It reflects India’s stance on Tibet as sensitive, balancing its traditional policy of non-interference with growing international scrutiny.
Geopolitical Implications: The delegation’s visit raises geopolitical questions about India’s sovereignty and diplomatic independence in the face of U.S.-China strategic competition.
It underscores India’s role in regional stability and global human rights discourse, impacting its strategic partnerships and international standing.
Challenges and weaknesses involved
Diplomatic Sensitivities: India faces challenges in balancing its historical support for Tibetan refugees with its current diplomatic relations with China, a crucial economic and strategic partner.
Hosting U.S. lawmakers advocating for Tibetan autonomy could strain India-China relations, given Beijing’s sensitivity to international interference on Tibet-related issues.
Domestic Perception and Political Messaging: Allowing U.S. lawmakers to publicly advocate for Tibetan independence in India could be perceived domestically as compromising India’s stance on sovereignty and non-interference in internal matters.
There is a risk of domestic backlash or political opposition questioning the government’s handling of sensitive foreign policy issues, particularly regarding Tibet and China.
Impact on Bilateral Relations: The visit and the Act may lead to diplomatic friction between India and China, potentially affecting bilateral cooperation in various domains, including trade, defense, and regional stability.
China’s response to perceived foreign interference on Tibet could escalate tensions, impacting broader regional dynamics and India’s strategic autonomy.
Future Scope (Way forward):
International Advocacy and Diplomatic Engagement: The U.S. delegation’s visit and advocacy for the Tibet-China Dispute Act highlight ongoing international interest and support for Tibetan autonomy.
The future scope involves continued diplomatic engagement by global stakeholders to advocate for human rights and autonomy for Tibetans, potentially influencing China’s policies.
India’s Strategic Positioning: India may explore a nuanced approach to balance its historical support for Tibetan refugees with its current diplomatic relations with China.
Future scope includes India asserting its stance on Tibet in international forums while managing bilateral relations with China to avoid escalation and maintain regional stability.
Mains question for practice:
Q The recent visit of a delegation of U.S. lawmakers to Dharamshala, closely following the passage of the ‘Promoting a Resolution to the Tibet-China Dispute Act’ in the U.S. Congress, has brought forth significant diplomatic challenges and implications for India.15M
Mains PYQ:
Q “The USA is facing an existential threat in the form of China, that is much more challenging than the erstwhile Soviet Union.” Explain. (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Prelims level: Coal production in India
Mains level: Coal Mining and its challenges;
Why in the News?
A new study by the National Foundation of India (NFI) reveals that 75% of focus group participants have chronic respiratory and skin ailments due to prolonged exposure to coal mining pollutants.
The study report titled, “At the Crossroads: Marginalised Communities and the Just Transition Dilemma”, is a sequel to the 2021 study by NFI on the socio-economic impact of coal transitions in India.
Key Highlights of the reports by the National Foundation for India:
The study covered two districts each from three central Indian states—Chhattisgarh, Jharkhand, and Odisha surveying 1209 households and conducting 20 Focused Group Discussions (FDGs).
Other key findings of the study are:
Health Concerns: Prolonged exposure to coal mining pollutants has resulted in widespread respiratory and skin diseases among the local populations. At least 75% of participants in Focus Group Discussions (FGDs) reported issues such as chronic bronchitis, asthma, and various skin conditions.
Economic Impact/ Economic Dependency on Coal: The phasing down of coal is expected to result in significant job losses and economic downturns in coal-dependent regions. This will not only impact the coal miners and workers directly but also the broader local economy.
Caste-Based Inequities: Access to resources and opportunities is significantly skewed, with marginalized communities such as Scheduled Castes (SCs), Scheduled Tribes (STs), and Other Backward Classes (OBCs) being disproportionately affected.
The report identifies several challenges in achieving a just transition, including the need to upskill a largely under-educated workforce and the lack of alternative livelihoods.
It underscores the importance of community-specific policies, robust institutional mechanisms, and coordinated efforts between government bodies.
The study offers a potential framework for safeguarding the interests of these communities through:
Alternative Livelihoods: Emphasizing the development of new economic opportunities beyond coal.
Ecological Restoration: Promoting environmental recovery to mitigate the health impacts of coal mining.
Inclusive Policies: Ensuring that the transition policies are inclusive and consider the needs of marginalized communities.
Present Challenges of Medical Expenses and Shift from Coal:
Health Concerns: People living closer to coal mines face higher medical expenses due to increased incidence of lung and breathing-related diseases and skin infections.
Economic concerns: The global shift away from coal is expected to result in job losses and economic downturns in coal-dependent regions, affecting both coal miners and the broader local economy.
Economic disparities exist with varying income levels and irregular wage receipt patterns in coal-dependent districts.
Dhanbad and Koriya, solely reliant on coal production, reported lower incomes compared to diversified industrial districts.
Way Forward:
Diversification of Local Economies: Develop alternative industries and economic activities in coal-dependent regions to reduce reliance on coal mining. Promote skill development programs to help coal workers transition to new employment opportunities in emerging sectors such as renewable energy, manufacturing, and services.
Investment in Health Infrastructure: Enhance healthcare facilities in coal mining regions to address the higher incidence of lung, and breathing-related diseases, and skin infections. Implement comprehensive health monitoring and support programs for communities living near coal mines.
Promotion of Renewable Energy: Accelerate the shift towards renewable energy sources, building on the recent trend of increased capacity addition in renewable energy. Invest in renewable energy infrastructure and create job opportunities in the renewable sector to offset job losses in coal mining.
Government and Policy Support: Implement policies and provide financial support for a ‘just transition’ to ensure that workers and communities dependent on coal mining are not left behind.
Community Engagement and Participation: Involve local communities in planning and decision-making processes related to the transition from coal.
Mains question for practice :
Q Analyse the health and socioeconomic impacts of prolonged coal mining in India, as highlighted by the National Foundation for India’s survey. 10M
Mains PYQ:
Q In spite of adverse environmental impact, coal mining is still inevitable for Development”. Discuss. (UPSC IAS/2017)
Explained | | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Critical Infrastructure Sectors;
Mains level: Resilience Mechanism
Why in the News? The unprecedented surge in electricity demand offers a glimpse into the kind of stress that critical infrastructure endures during extreme weather events and resulting disasters.
Present Challenges in India -> High Temperatures and Electricity Demand:
Record-breaking Electricity Demand: Delhi experienced record-breaking electricity demand due to persistently high temperatures.
Frequent Power Cuts: The high demand led to frequent power cuts in Delhi and neighbouring areas.
Worsening Conditions: Other regions in central and eastern India faced similar or worse situations, with high night temperatures exacerbating the situation.
Heat-related Deaths: The lack of electricity and high temperatures likely contributed to several heat-related deaths.
Mounting Losses:
Increased Economic Losses: Despite early warnings and quick responses reducing human casualties, economic and other losses from extreme weather events and disasters have been rising due to their increasing frequency and intensity.
Government Expenditure: States spent over Rs 1.5 lakh crore between 2018 and 2023 on disaster and natural calamity aftermaths.
Long-term Costs: Long-term costs include livelihood losses and reduced agricultural land fertility, which are projected to worsen over time.
Job Losses: A 2022 World Bank report projected that heat-related stress could result in a loss of around 34 million jobs in India by 2030.
Food Wastage: Food wastage due to non-air-conditioned transportation is estimated at about $9 billion annually.
Uncounted Infrastructure Damage: Damage to critical infrastructure like transportation, telecommunications, and power supply is often uncounted in government figures, particularly for privately owned services, causing massive disruptions.
Incorporating Resilience:
Disaster Management Plans: Infrastructure sectors have disaster management plans to prepare and respond to events, such as backup power supplies for hospitals, waterlogging prevention for airports and railways, and underground telecommunication lines.
Slow Progress: Despite plans, much of India’s infrastructure remains extremely vulnerable to disasters.
Future Infrastructure: India is still developing much of its infrastructure, and it is more cost-effective to incorporate disaster resilience during construction than to retrofit later. Upcoming projects need to be climate-smart, sustainable, energy-efficient, and disaster-resilient.
A case study of Odisha:
The Coalition for Disaster Resilient Infrastructure (CDRI) studied Odisha’s electricity transmission and distribution infrastructure, revealing its extreme fragility. Over 30% of distribution substations are within 20 km of the coastline; 80% of electricity poles are susceptible to high wind speeds; over 75% of distribution lines are over 30 years old and not cyclone-resistant.
Note: CDRI’s Created in 2019, CDRI aims to make critical infrastructure resilient to natural disasters. It serves as a knowledge hub and collaborates with over 30 countries, but only a few Indian states have engaged with CDRI.
Way Forward:
Proactive Infrastructure Planning and Investment: Future infrastructure projects in India must integrate disaster resilience at the planning and construction stages. This approach ensures that new developments are sustainable, energy-efficient, and capable of withstanding extreme weather events, reducing the need for costly retrofits later.
Collaboration with Expert Bodies and Adoption of Best Practices: States and infrastructure sectors should actively seek expertise and collaboration from organisations like the Coalition for Disaster Resilient Infrastructure (CDRI).
Mains question for practice:
Q Discuss the implications of extreme weather events on critical infrastructure in India, citing recent examples. What measures can be taken to enhance the resilience of infrastructure against such events? 15M
Mains PYQ:
Q Describe the benefits of deriving electric energy from sunlight in contrast to conventional energy generation. What are the initiatives offered by our government for this purpose? (UPSC IAS/2020)
From UPSC perspective, the following things are important :
Mains level: Issues Associated with the Scheme
Why in the news?
Following the 2024 election results, NDA allies Janata Dal (United) and Lok Janshakti Party (Ram Vilas) raised concerns about the Agnipath scheme and called for discussions on the matter.
What is the Agnipath scheme?
The Agnipath scheme recruits soldiers, sailors, and airmen into the Indian armed forces for a four-year term, replacing the previous system of permanent recruitment. After completing their four-year tenure, up to 25% of Agniveers can be selected for permanent positions within the armed forces.
Agniveers can obtain educational certificates and skill certifications during their service. They receive a lump sum amount upon completing their tenure but are not eligible for a pension.
Issues Associated with the Scheme
Personnel Shortage: There is a significant shortage of personnel in the ‘below officer’s rank’ cadres, exacerbated by the recruitment freeze during the COVID-19 pandemic. The Army retires around 60,000 soldiers annually but only recruits 40,000, leading to a growing shortfall.
Low Conversion Rate: The 25% conversion rate from Agniveers to regular soldiers is considered insufficient to address the personnel shortage.
Compressed Training: The four-year tenure necessitates a shorter training period, which may impact the quality of training.
Political and Social Opposition: The scheme has faced political opposition and led to violent protests in some parts of the country. Critics argue for a clause-by-clause review or complete scrapping of the scheme.
Present Scenario
As the Agnipath scheme marks two years since its implementation, the Department of Military Affairs (DMA) in the Defence Ministry is reviewing the scheme based on feedback from the armed forces.
Feedback Compilation: The Navy and Air Force have compiled their feedback, while the Army is still in the process.
Recommendations: Suggestions include increasing the intake numbers, raising the permanent recruitment rate from 25% to at least 50%, and extending the age limit for technical recruits from 21 to 23 years.
Review Process: The DMA will compile all recommendations and submit them to the Defence Ministry for potential adjustments to the scheme.
Way forward:
Enhance Educational and Skill Development Opportunities: Partner with educational institutions to provide Agniveers with advanced degrees and certifications that are recognized nationwide. Offer vocational training and skill development programs that are aligned with industry standards, improving post-service employability.
Increase Permanent Induction Rate: Raise the conversion rate of Agniveers to permanent positions from 25% to at least 50% to address the personnel shortage effectively.
From UPSC perspective, the following things are important :
Prelims level: Driest region in India
Mains level: Why do different regions of Maharashtra experience varied levels of water stress?
Why in the news?
After last year’s deficient monsoon, the Maharashtra government declared several parts of the state as drought-hit.
Why do different regions of Maharashtra experience varied levels of water stress?
Geographical Differences: Coastal areas receive excessive rainfall leading to flooding. Marathwada lies in the rain-shadow region, receiving significantly less rainfall (600-800 mm) compared to the western side of the Western Ghats (2,000-4,000 mm).
Topography and Soil: Marathwada has clayey black soil (regur) which retains moisture but has a low infiltration rate, leading to poor groundwater recharge. The region’s topography, with parallel tributaries and gently sloping hills, results in uneven water distribution, with valleys having perennial groundwater and upland areas facing acute water scarcity.
Impact of Climate Change: Increasing drought severity and frequency in central Maharashtra due to climate change, worsening water stress in regions like Marathwada and North Karnataka.
Why is sugarcane production not suited for regions with less rainfall?
High Water Requirement: Sugarcane needs 1,500-2,500 mm of water during its growing season, which is much higher than the annual rainfall in low-rainfall areas like Marathwada.
Irrigation Demands: Sugarcane requires almost daily irrigation, consuming 61% of the region’s irrigation water while occupying only 4% of the cropped area. This heavy water usage restricts the irrigation of other crops that are more suitable for the region’s climate, such as pulses and millet.
Government Policies: Long-standing government support for sugarcane pricing and sales has encouraged its cultivation in unsuitable regions. The recent promotion of sugarcane-juice-based ethanol production exacerbates the issue, diverting water resources away from more sustainable agricultural practices.
What is meant by the rain-shadow effect?
The rain-shadow effect occurs when moist winds from the Arabian Sea rise over the Western Ghats, causing heavy rainfall on the western side. By the time these winds descend on the eastern side (Western Maharashtra and Marathwada), they lose most of their moisture, resulting in significantly lower rainfall.
Impact on Marathwada: Marathwada, located in the rain-shadow region, receives only 600-800 mm of annual rainfall, contributing to its dry climate and water scarcity issues.
Note: Marathwada and North Karnataka have emerged as the second driest regions in India after Rajasthan.
How can supply-side solutions help the situation?
Watershed Management: Building water-conserving structures such as contour trenches, earthen bunds, and gully plugs to capture and store runoff. Designing silt-trapping mechanisms to prevent soil erosion and maintain water retention structures.
Rainwater Harvesting: Implementing measures to capture rainwater runoff from agricultural fields to recharge groundwater and reduce dependency on external water sources.
Utilizing Government Programs: Leveraging funds from the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for watershed management projects and training farmers in water conservation techniques.
Promoting Water-Efficient Practices: Encouraging the use of water-efficient irrigation methods, such as drip irrigation, to optimize water usage. Shifting to drought-resistant crops and high-value, low-water-using crops to reduce water demand and improve agricultural sustainability.
Conclusion: The state government has announced a massive Rs 59,000 crore package to transform the Marathwada region, with a focus on tackling the water crisis. This includes reviving stalled irrigation projects worth Rs 13,677 crore to make the region drought-free through water linking and diverting floodwaters to the Godavari basin
Mains PYQ:
Q Elaborate the impact of National Watershed Project in increasing agricultural production from waterstressed areas. (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Mains level: Challenges Involved in the Near Future for the Indian Government
Why in the news?
The newly elected National Democratic Alliance government is confronted with several longstanding and complex national security issues.
Strategic Relations with the US and Competition with China:
China’s Multifaceted Challenges: China poses an unprecedented array of interconnected challenges, including a significant naval build-up, geoeconomic clout in South Asia, and leverage in global supply chains.
Strategic Relations with the US: India must navigate its strategic partnership with the United States while managing competition with China.
Global Conflicts Impact: Distant conflicts, such as those in Ukraine and Gaza, reveal new technologies and tactics of war that could spread to India’s neighbourhood, influencing its strategic relations and defence strategies.
Challenges Involved in the near future for the Indian Government:
Decisions on Military Investments: The government must decide on key defence projects, such as building another aircraft carrier and implementing theaterisation.
Holistic National Security: There is a need to step back and consider national security holistically, rather than making piecemeal decisions that could waste resources and undermine national goals.
Managing Strategic Risks: Addressing strategic risks like climate change, pandemics, and China’s growing influence requires coordinated, long-term policy efforts.
Synchronizing Efforts: Various arms of the government, including the military and national security agencies, need to synchronize their efforts more effectively.
Blueprint for Expanding Power:
Comprehensive Strategic Assessment: A National Security Strategy (NSS) would compel the government to thoroughly review threats, opportunities, and global security trends.
Framework for Long-Term Planning: An NSS would provide a coherent framework for long-term strategic planning, helping to allocate resources effectively and develop necessary military capabilities and international partnerships.
Signaling Intent to Allies and Adversaries: An NSS would clarify India’s strategic intent, signaling its role as a net security provider in the Indian Ocean and its stance on regional security issues.
Coordinated National Security Efforts: An NSS would align the efforts of different national security agencies and military branches, fostering better coordination and integration.
Issue of Accountability:
Transparency and Accountability: An NSS would serve as a tool to ensure that the government’s policies are transparent and accountable to Parliament and the citizens.
Adherence to Political Leadership’s Intent: It would help ensure that the bureaucracy adheres to the political leadership’s strategic direction.
Public Document: A strong NSS should be a public document, endorsed by the Prime Minister, to synchronize efforts across the government and signal political intent both domestically and internationally.
Rational Decision-Making: An NSS would help identify trade-offs and opportunity costs, enabling political leaders to make informed, rational decisions for long-term national growth and security.
Conclusion: Develop a coherent strategic framework within the NSS that outlines India’s national security objectives, priorities, and methodologies for achieving them. This framework should guide decision-making on defense investments, international partnerships, and response strategies to global challenges like climate change and pandemics.
Mains PYQ:
Q What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem. (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Prelims level: What is ICC?
Mains level: Does ICC have the power to prosecute Russia?
Why in the news?
On Monday, June 24, the International Criminal Court (ICC) issued arrest warrants for former Russian Defence Minister Sergei Shoigu and current Chief of Staff of the Armed Forces Valery Gerasimov for “alleged international crimes” related to the Ukraine war.
Who are the Russian leaders and what effect does the move have on them?
Sergei Shoigu: Former Russian Defence Minister, key ally of Putin, led the invasion of Ukraine in February 2022, removed from his post in May 2024.
Valery Gerasimov: Current Chief of Staff of the Armed Forces, Deputy Defence Minister since November 2012, seen as the most powerful man in the government after Putin and Shoigu.
Impact on Shoigu and Gerasimov: Both have suffered reputational damage since the war began, criticized by Russian nationalists for failing to swiftly win the war against Ukraine.
What do the ICC charges say?
Charges Against Shoigu and Gerasimov: Directing attacks at civilian objects, causing excessive incidental harm to civilians or damage to civilian objects.
Responsibility: The two officials bear individual criminal responsibility for their actions, ordering the commission of crimes, and failing to exercise proper control over their forces.
Specific Acts: Missile strikes against Ukrainian electric infrastructure, constituting multiple acts against a civilian population.
What is ICC?
Establishment: Headquartered in The Hague, Netherlands, established under the 1998 Rome Statute.
Purpose: Investigates and tries individuals charged with genocide, war crimes, crimes against humanity, and the crime of aggression.
Membership: 123 countries are party to the Rome Statute, including Britain, Japan, Afghanistan, and Germany. The USA, India, and China are not members.
Function: Prosecutes heinous offences when a country’s own legal system fails to act, unlike the ICJ which deals with inter-state disputes.
Jurisdiction: Limited to offences occurring after July 1, 2002, committed in a country that ratified the agreement or by a national of a ratifying country, or cases referred by the UN Security Council.
Does ICC have the power to prosecute Russia?
Russia’s Stance: Kremlin spokesman Dmitry Peskov stated that any decision of the ICC was “null and void” due to Russia not being an ICC member.
Effect on Leaders: Putin and other leaders risk arrest if they travel to a state party to the ICC, which is obliged to arrest them under international law. This deepens Russia’s isolation from the West.
Ukraine’s Position: Ukraine is not a State Party to the Rome Statute but has accepted ICC’s jurisdiction over alleged crimes occurring on its territory under Article 12(3) of the Statute. This requires Ukraine to cooperate with the ICC without delay or exception.
Conclusion: The ICC’s charges against Russian leaders highlight significant legal and geopolitical challenges, deepening Russia’s isolation and emphasizing the need for global accountability in addressing war crimes and international conflicts.
Mains question for practice:
Q In light of the recent arrest warrants issued against Russian leaders, discuss the effectiveness and limitations of the ICC in prosecuting individuals from non-member states.15M
From UPSC perspective, the following things are important :
Prelims level: Surrogacy (Regulation) Act, 2021
Why in the News?
The Centre has notified amended rules allowing women government employees to take 180 days of maternity leave for children born through surrogacy.
Changes are introduced in the Central Civil Services (Leave) Rules, 1972.
There were previously no rules granting maternity leave to women government employees for children born through surrogacy.
Back2Basics: Surrogacy (Regulation) Act, 2021
Purpose: The Act aims to regulate surrogacy in India by prohibiting commercial surrogacy and allowing only altruistic surrogacy.
Eligibility Criteria:
Only Indian couples who have been legally married for at least five years can opt for surrogacy.
The woman must be between 25 to 50 years old, and the man must be between 26 to 55 years old.
Both partners must not have any living biological, adopted, or surrogate children.
Surrogate Mother Criteria:
The surrogate mother must be a close relative of the intending couple.
She should be a married woman having her own child and must be 25 to 35 years old.
Prohibitions:
Commercial surrogacy is banned under this Act.
Any form of payment to the surrogate mother beyond medical expenses and insurance coverage is prohibited.
Penalties:
Engaging in commercial surrogacy can lead to imprisonment up to 10 years and a fine up to Rs 10 lakhs.
Regulatory Bodies:
The Act establishes a National Surrogacy Board at the national level and State Surrogacy Boards at the state level to oversee the implementation of the law.
About the Central Civil Services (Leave) (Amendment) Rules, 2024
The amendment is issued under this notification, exercising the powers conferred by the proviso to Article 309 of theConstitution.
Article 309 provides that acts of the appropriate Legislature may regulate the recruitment and conditions of service of personsappointed to public services and posts in connection with the affairs of the Union or any State.
Authority: The President of India has made these amendments to the Central Civil Services (Leave) Rules, 1972.
Features and Benefits:
Surrogacy Inclusion: These amendments specifically address the needs of surrogacy, providing equitable maternity, paternity, and childcare leave benefits to government employees involved in surrogacy.
Enhanced Leave Entitlements:
Maternity Leave: 180 days for both the surrogate and the commissioning mother.
Paternity Leave: 15 days for the commissioning father within six months of the child’s birth.
Child Care Leave: Available to the commissioning mother. Female government servants and single male government servants are already allowed childcare leave for a maximum of 730 days (2 years!) during their entire service for the care of their two eldest surviving children.
Flexibility and Inclusivity:
The amendments aim to provide more flexible and inclusive leave options for government employees, recognizing diverse family structures and reproductive choices.
Support for Families:
These changes enhance support for government employees, ensuring they can adequately care for their children and family needs, especially in cases of surrogacy.
Administrative Implementation:
The rules simplify the process for applying for and approving leave, ensuring that employees can easily access their entitlements.
Impact:
Employee Well-being: Improved leave policies contribute to better work-life balance and overall well-being for government employees.
Gender Equality: By providing paternity leave and child care leave in surrogacy cases, the rules promote gender equality and shared parenting responsibilities.
Organizational Efficiency: Streamlined leave procedures and clear guidelines help maintain productivity and efficiency within government departments.
PYQ:
[2020] In the context of recent advances in human reproductive technology, “Pronuclear Transfer” is used for:
(a) fertilization of egg in vitro by the donor sperm
(b) genetic modification of sperm-producing cells
(c) development of stem cells into functional embryos
(d) prevention of mitochondrial diseases in offspring
From UPSC perspective, the following things are important :
Mains level: Economic difficulties in Male
Why in the news?
Amid mounting domestic and foreign policy challenges in Male, Mohamed Muizzu appears to be seeking reconciliation with India.
Economic Difficulties in Maldives
Debt Burden: Maldives faces severe economic strain with a debt-to-GDP ratio of 110% and significant debt servicing obligations, including around $512 million annually in 2024 and 2025.
Foreign Reserves: Foreign reserves are critically low at $622 million, insufficient to cover debt maturities and sustain imports amid rising inflation.
Dependence on Imports: Heavy reliance on imports for essential goods exacerbates economic vulnerabilities, particularly amidst food and fuel inflation.
Revenue Generation: The government struggles with low domestic revenue generation capacity, further complicating fiscal management and debt sustainability.
Diversification Efforts: Efforts to diversify economic partnerships beyond traditional allies like India and China reflect a strategy to mitigate economic dependencies and attract diverse investments.
What do the ties between India and China imply?
Geopolitical Competition: India and China’s engagements in countries like the Maldives reflect a broader competition for influence in the Indian Ocean region. Both countries strategically invest in infrastructure and security partnerships to enhance their regional foothold.
Economic Leverage: China’s substantial investments in the Maldives, including infrastructure projects under the Belt and Road Initiative (BRI), provide economic leverage but also raise concerns about debt sustainability and strategic dependencies.
Strategic Alignment: While India emphasizes developmental assistance and strategic partnerships focused on security and governance, China’s engagements often prioritize infrastructure development and economic cooperation, reflecting different strategic priorities.
Regional Stability: Both India and China play pivotal roles in ensuring stability and security in the Indian Ocean region. Their respective approaches influence regional dynamics and perceptions among neighbouring countries regarding economic partnerships and security alignments.
India’s stand
Balanced Approach: India continues to engage with the Maldives despite geopolitical shifts and maintains a stance of constructive diplomacy, offering economic support and emphasizing mutual respect.
Long-term Engagement: Inviting President Muizzu to Prime Minister Modi’s swearing-in signals India’s commitment to long-term bilateral relations and stability in the Indian Ocean region.
Strategic Importance: India views the Maldives as crucial for maritime security and regional stability, underpinning its continued diplomatic efforts and economic assistance.
Conclusion: India can increase its economic assistance to the Maldives through grants, concessional loans, and capacity-building initiatives aimed at improving fiscal management and revenue generation capabilities. And focus on projects that enhance infrastructure resilience, promote sustainable development, and support economic diversification efforts beyond traditional sectors.
Mains PYQ:
Q Discuss the political developments in Maldives in the last two years. Should they be of any cause of concern to India? (UPSC IAS/2013)
From UPSC perspective, the following things are important :
Prelims level: Finance commission
Mains level: 16th Finance Commission can catalyse municipal-level financial reforms
Why in the news?
With the new Lok Sabha and Union government in place, this final piece focuses on how the 16th Finance Commission can drive substantive public finance reforms for India’s cities.
Note: The Sixteenth Finance Commission has been requested to make its recommendations available by October 31, 2025, covering an award period of 5 years commencing 1st April, 2026.
16th Finance Commission can catalyse municipal-level financial reforms
Strengthening State Finance Commissions: The Commission should emphasize the need for state governments to constitute state finance commissions on time, provide them with adequate resources, and ensure their recommendations are taken seriously.
Fiscal Decentralization: The 16th FC should recommend a formula-based approach for predictable fiscal transfers from state governments to municipalities, moving away from the current practice of ad hoc, discretionary grants. This will enhance the financial autonomy of urban local bodies.
Revenue Optimization: The Commission should incentivize municipalities to enhance their own revenues through measures like property tax reforms, user charges, and leveraging land assets. This will reduce their dependence on state grants and promote fiscal responsibility.
Fiscal Responsibility and Budget Management: The 16th FC can provide incentives for municipalities to adopt fiscal responsibility and budget management frameworks to accelerate municipal borrowings for infrastructure development. This will enable cities to access capital markets for financing their growth.
Transparency and Citizen Participation: The 16th FC can encourage municipalities to enhance transparency and citizen participation in urban governance for improved accountability at the neighbourhood level. This will make urban local bodies more responsive to the needs of citizens.
Need for the Reforms
Inadequate Funding and Resource Utilization: Indian cities face significant financial shortfalls and struggle to effectively utilize the funds they have, leading to underdeveloped infrastructure and services.
Lack of Accountability: There is minimal accountability regarding how municipal spending improves citizens’ lives, resulting in inefficient use of resources and unmet public needs.
Fiscal Decentralization: Cities need predictable fiscal transfers for effective planning, but state governments often delay constituting State Finance Commissions (SFCs) and implementing their recommendations.
Revenue Optimization: Cities underutilize their revenue-generating powers due to outdated valuation processes controlled by state governments. Comprehensive reforms are needed at all stages of revenue collection.
Transparency and Fiscal Responsibility: The legal framework for financial accounting, reporting, and budgeting is inconsistent across states. Standardized formats, mandatory accounting standards, and management accounting systems are necessary to improve transparency and fiscal responsibility.
Activities by State Governments
Timely Constitution and Implementation of State Finance Commissions: State governments must ensure the timely establishment and effective implementation of SFC recommendations to support fiscal decentralization and provide predictable funding to cities.
Updating Valuation Processes: States should regularly update guidance values or circle rates to reflect current market values, enabling cities to optimize revenue collection and ensure financial sustainability.
Enhancing Legal and Institutional Frameworks: States should establish and enforce standardized formats for financial accounting, reporting, and budgeting to ensure consistency, transparency, and comparability across municipalities.
Empowering Local Governments: States should delegate reasonable expenditure authority to city councils, reducing dependency on state-level approvals and enabling more efficient and responsive local governance.
Mandating Transparency and Citizen Participation: States should mandate public disclosure of municipal financial data and project details in machine-readable formats and support the implementation of participatory budgeting to enhance transparency and citizen involvement in governance.
Conclusion: The 16th Finance Commission can drive critical municipal-level financial reforms by strengthening state finance commissions, promoting fiscal decentralization, optimizing revenues, enhancing fiscal responsibility, and encouraging transparency and citizen participation in governance.
Mains PYQ:
Q How is the Finance Commission of India constituted? What do you know about the terms of reference of the recently constituted Finance Commission? Discuss. (15) (UPSC IAS/2018)
From UPSC perspective, the following things are important :
Prelims level: PESA Act
Mains level: How PESA ensures Equitable Representation
Why in the News?
Conservation policies in India have long wrestled with dual conflicts: balancing conservation goals against local communities’ resource extraction needs, and reconciling conservation with the imperative of economic development.
Structural Mandate of Panchayat (Extension to Scheduled Areas) Act (PESA):
PESA was passed in 1996 and it mandates local government councils in Scheduled Areas to reserve all chairperson positions and at least half of the seats for Scheduled Tribes (ST).
This legislative framework is designed to empower marginalized communities by giving them a direct say in local governance and resource management.
Implementation in India:
Unlike the 73rd Amendment (which applies to non-Scheduled Areas), PESA ensures mandated representation for STs in decision-making bodies.
Variations in PESA implementation across states highlight challenges and successes in translating legislative intent into effective governance structures.
How it Ensures Equitable Representation:
Impact on Forest Conservation: The study employs a “difference-in-differences” methodology to analyze the effect of PESA on forest cover. Findings indicate that areas with mandated ST representation under PESA experience lower rates of deforestation and higher afforestation rates compared to areas without such representation.
Economic Incentives for Conservation: ST communities, dependent on forest resources for livelihoods, are incentivized to protect forest cover under PESA. This “forest stewardship” mechanism emerges as STs engage in sustainable practices and resist deforestation pressures driven by mining and commercial interests.
On Democratic Decentralization:
Comparison with Administrative Decentralization: The paper distinguishes between administrative decentralization (focused on efficiency) and democratic decentralization. Democratic decentralization, as exemplified by PESA, emphasizes representative and accountable local governance structures with decision-making autonomy over resource management.
Single Umbrella Institution: Advocates for consolidating power into a single, empowered institution that integrates both conservation and development objectives. Such an institution would better navigate the complexities of balancing local economic interests with sustainable conservation practices.
Conclusion: PESA serves as a critical example of how legislative mandates for political representation can drive positive environmental outcomes while addressing socio-economic disparities among forest-dwelling communities in India.
Mains PYQ:
Q What are the two major legal initiatives by the state since Independence, addressing discrimination against Scheduled Tribes (ST)? (UPSC IAS/2017)
From UPSC perspective, the following things are important :
Mains level: Power markets working and Power exchanges in India
Why in the news?
Amid rising summer demand, the government has permitted the trading of excess electricity produced from “linkage coal” within the nation’s power markets.
What is the Power Market?
A power market is a platform where electricity is bought and sold, enabling generators and consumers to trade electricity based on market-driven prices and conditions.
Types of Markets related to Power exchanges in India include:
Spot Markets: These include real-time markets (RTM) and day-ahead markets (DAM). RTM allows for immediate buying and selling of electricity, while DAM involves bidding for electricity to be delivered the next day.
Term-Ahead Markets: These markets facilitate trades for longer durations, ranging from hours to several days in advance, providing more certainty and planning for market participants.
Their working and Power exchanges in India
Market Operation: Power exchanges in India operate as platforms where electricity generators (sellers) and consumers (buyers) participate in trading electricity. Generators submit offers indicating the quantity of electricity they can supply at various prices, while buyers submit bids indicating the quantity they wish to purchase at various prices.
Renewable Energy Certificates (REC): Power exchanges also manage the trading of Renewable Energy Certificates (RECs). RECs represent the environmental attributes of renewable electricity generated and can be sold to utilities to meet their renewable purchase obligations (RPOs).
Regulation: Power exchanges are regulated by the Central Electricity Regulatory Commission (CERC) in India. The regulatory framework ensures fair and transparent trading practices, oversees market operations and sets rules to promote market integrity.
Market Dominance: The Indian Energy Exchange (IEX) is the dominant power exchange in India, handling the majority of electricity trading volume. Other exchanges include Power Exchange India Limited (PXIL) and Hindustan Power Exchange Ltd (HPX), though IEX holds more than 90% of the market share.
Their advantages
Flexibility: Enables generators to respond swiftly to fluctuating electricity demand by selling surplus power at market-driven prices, enhancing grid stability.
Efficiency: Optimizes utilization of coal-based power generation assets, minimizing wastage and maximizing revenue through market-based transactions.
Transparency: Promotes transparent pricing mechanisms in the electricity sector, fostering competitive market dynamics and benefiting consumers with potentially lower electricity costs.
The Road Ahead for Power Exchanges:
Market Coupling: It matches bids from different power exchanges to discover a uniform market clearing price, promoting efficiency and reducing price disparities across regions.It enhances price discovery, market stability, and regional grid integration by providing a reliable reference price for policymakers.
Capacity Markets: It compensates generators for maintaining available capacity, incentivizing investment in reliable generation infrastructure. They ensure long-term grid reliability, especially during peak demand periods, aligning India’s power market with international standards and attracting investment.
International Alignment and Competitiveness: India’s adoption of advanced market structures (like market coupling and capacity markets) aims to align with mature international markets.These developments can foster greater competition, attract investment, and enhance overall sector efficiency and reliability.
Mains PYQ:
Q Write a note on India’s green energy corridor to alleviate the problem of conventional energy. (UPSC IAS/2013)
