Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

ASHA Program

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ASHA program

Mains level: Paper 2- Strengthening ASHA

Context

India’s one million Accredited Social Health Activists (ASHA) volunteers have received World Health Organization’s Global Health Leaders Awards 2022.

Background of the ASHA program

  • In 1975, a WHO monograph titled ‘Health by the people’ and then in 1978, an international conference on primary health care in Alma Ata (in the then USSR and now in Kazakhstan), gave emphasis for countries recruiting community health workers to strengthen primary health-care services that were participatory and people centric.
  • Soon after, many countries launched community health worker programmes under different names.
  • India launched the ASHA programme in 2005-06 as part of the National Rural Health Mission.
  • The biggest inspiration for designing the ASHA programme came from the Mitanin (meaning ‘a female friend’ in Chhattisgarhi) initiative of Chhattisgarh, which had started in May 2002.
  • The core of the ASHA programme has been an intention to build the capacity of community members in taking care of their own health and being partners in health services.
  • Each of these women-only volunteers work with a population of nearly 1,000 people in rural and 2,000 people in urban areas, with flexibility for local adjustments.

A well thought through and deliberated program

  • The ASHA programme was well thought through and deliberated with public health specialists and community-based organisations from the beginning.
  • 1] Key village stakeholders selected: The ASHA selection involved key village stakeholders to ensure community ownership for the initiatives and forge a partnership.
  • 2] Ensure familiarity: ASHAs coming from the same village where they worked had an aim to ensure familiarity, better community connect and acceptance.
  • 3] Community’s representative: The idea of having activists in their name was to reflect that they were/are the community’s representative in the health system, and not the lowest-rung government functionary in the community.
  • 4] Avoiding the slow process of government recruitment: Calling them volunteers was partly to avoid a painfully slow process for government recruitment and to allow an opportunity to implement performance-based incentives in the hope that this approach would bring about some accountability.

Contribution of ASHA

  • It is important to note that even before the COVID-19 pandemic, ASHAs have made extraordinary contributions towards enabling increased access to primary health-care services; i.e. maternal and child health including immunisation and treatment for hypertension, diabetes and tuberculosis, etc., for both rural and urban populations, with special focus on difficult-to-reach habitations.
  • Over the years, ASHAs have played an outstanding role in making India polio free, increasing routine immunisation coverage; reducing maternal mortality; improving new-born survival and in greater access to treatment for common illnesses.

Challenges

  • Linkages with AWW and ANM: When newly-appointed ASHAs struggled to find their way and coordinate things within villages and with the health system, their linkage with two existing health and nutrition system functionariesAnganwadi workers (AWW) and Auxiliary Nurse Midwife (ANM) as well as with panchayat representatives and influential community members at the village level — was facilitated.
  •  This resulted in an all-women partnership, or A-A-A: ASHA, AWW and ANM, of three frontline functionaries at the village level, that worked together to facilitate health and nutrition service delivery to the community.
  • No fixed salary to ASHAs: Among the A-A-A, ASHAs are the only ones who do not have a fixed salary; they do not have opportunity for career progression.
  • These issues have resulted in dissatisfaction, regular agitations and protests by ASHAs in many States of India.

Way forward

  • The global recognition for ASHAs should be used as an opportunity to review the programme afresh, from a solution perspective.
  • 1] Higher remuneration: Indian States need to develop mechanisms for higher remuneration for ASHAs.
  • 2] Avenues for career progression: It is time that in-built institutional mechanisms are created for capacity-building and avenues for career progression for ASHAs to move to other cadres such as ANM, public health nurse and community health officers are opened.
  • 3] Extend the benefits of social sector services: Extending the benefits of social sector services including health insurance (for ASHAs and their families) should be considered.
  • 4] Independent and external review: While the ASHA programme has benefitted from many internal and regular reviews by the Government, an independent and external review of the programme needs to be given urgent and priority consideration.
  • 5] Regularisation of temporary posts: There are arguments for the regularisation of many temporary posts in the National Health Mission and making ASHAs permanent government employees.

Conclusion

The WHO award for ASHA volunteers is a proud moment and also a recognition of every health functionary working for the poor and the underserved in India.  It is a reminder and an opportunity to further strengthen the ASHA programme for a stronger and community-oriented primary health-care system.

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Malnutrition in India is a worry in a modern scenario

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Malnutrition challenge

Context

The country’s response to its burden of malnutrition and growing anaemia has to be practical and innovative.

What is malnutrition?

  • Malnutrition refers to deficiencies, excesses or imbalances in a person’s intake of energy and/or nutrients.
  • The term malnutrition covers 2 broad groups of conditions.
  • One is ‘undernutrition’—which includes stunting (low height for age), wasting (low weight for height), underweight (low weight for age) and micronutrient deficiencies or insufficiencies (a lack of important vitamins and minerals).
  • The other is overweight, obesity and diet-related non-communicable diseases (such as heart disease, stroke, diabetes, and cancer).

What are the root causes of malnutrition in India?

The following three deficits are the root cause of malnutrition in India.

1) Dietary deficit

  • There is a large dietary deficit among at least 40 per cent of our population of all age groups, shown in— the National Nutrition Monitoring Bureau’s Third Repeat Survey (2012), NFHS 4, 2015-16, the NNMB Technical Report Number 27, 2017.
  • Our current interventions are not being able to bridge this protein-calorie-micronutrient deficit.
  • The NHHS-4 and NFHS-5 surveys reveal an acute dietary deficit among infants below two years, and considerable stunting and wasting of infants below six months.
  • Unless this maternal/infant dietary deficit is addressed, we will not see rapid improvement in our nutritional indicators.

2) Information deficit at household level

  • We do not have a national IEC (information, education and communication) programme that reaches targeted households to bring about the required behavioural change regarding some basic but critical facts.
  • For example, IEC tells about the importance of balanced diets in low-income household budgets, proper maternal, child and adolescent nutrition and healthcare.

3) Inequitable market conditions

  • The largest deficit, which is a major cause of dietary deficiency and India’s chronic malnutrition, pertains to inequitable market conditions.
  • Such market conditions deny affordable and energy-fortified food to children, adolescents and adults in lower-income families.
  • The market has stacks of expensive fortified energy food and beverages for higher income groups, but nothing affordable for low-income groups.

The vicious cycle of malnutrition

  • Link with mother: A child’s nutritional status is directly linked to their mother.
  • Poor nutrition among pregnant women affects the nutritional status of the child and has a greater chance to affect future generations.
  • Impact on studies: Undernourished children are at risk of under-performing in studies and have limited job prospects.
  • Impact on development of the country: This vicious cycle restrains the development of the country, whose workforce, affected mentally and physically, has reduced work capacity.

Marginal improvement on Stunting and Wasting

  • The National Family Health Survey (NFHS-5) has shown marginal improvement in different nutrition indicators, indicating that the pace of progress is slow.
  • This is despite declining rates of poverty, increased self-sufficiency in food production, and the implementation of a range of government programmes.
  • Children in several States are more undernourished now than they were five years ago.
  • Increased stunting in some states: Stunting is defined as low height-for-age.
  • While there was some reduction in stunting rates (35.5% from 38.4% in NFHS-4) 13 States or Union Territories have seen an increase in stunted children since NFHS-4.
  • This includes Gujarat, Maharashtra, West Bengal and Kerala.
  • Wasting remains stagnant: Wasting is defined as low weight-for-height.
  • Malnutrition trends across NFHS surveys show that wasting, the most visible and life-threatening form of malnutrition, has either risen or has remained stagnant over the years.

Prevalence of anaemia in India

  • What is it? Anaemia is defined as the condition in which the number of red blood cells or the haemoglobin concentration within them is lower than normal.
  • Consequences: Anaemia has major consequences in terms of human health and development.
  • It reduces the work capacity of individuals, in turn impacting the economy and overall national growth.
  • Developing countries lose up to 4.05% in GDP per annum due to iron deficiency anaemia; India loses up to 1.18% of GDP annually.
  • The NFHS-5 survey indicates that more than 57% of women (15-49 years) and over 67% children (six-59 months) suffer from anaemia.

Way forward

1] Increase investment:

  • There is a greater need now to increase investment in women and children’s health and nutrition to ensure their sustainable development and improved quality of life.
  • Saksham Anganwadi and the Prime Minister’s Overarching Scheme for Holistic Nourishment (POSHAN) 2.0 programme have seen only a marginal increase in budgetary allocation this year (₹20,263 crore from ₹20,105 crore in 2021-22).
  • Additionally, 32% of funds released under POSHAN Abhiyaan to States and Union Territories have not been utilised.

2] Adopt outcome oriented approach on the nutrition programme

  • India must adopt an outcome-oriented approach on nutrition programmes.
  • It is crucial that parliamentarians begin monitoring needs and interventions in their constituencies and raise awareness on the issues, impact, and solutions to address the challenges at the local level.
  • Direct engagement: There has to be direct engagement with nutritionally vulnerable groups and ensuring last-mile delivery of key nutrition services and interventions.
  • This will ensure greater awareness and proper planning and implementation of programmes.
  • This can then be replicated at the district and national levels.

3] Increase awareness and mother’s education

  • With basic education and general awareness, every individual is informed, takes initiatives at the personal level and can become an agent of change.
  •  Various studies highlight a strong link between mothers’ education and improved access and compliance with nutrition interventions among children.

4] Monitoring

  • There should be a process to monitor and evaluate programmes and address systemic and on the ground challenges.
  • A new or existing committee or the relevant standing committees meet and deliberate over effective policy decisions, monitor the implementation of schemes, and review nutritional status across States.

Conclusion

We must ensure our young population has a competitive advantage; nutrition and health are foundational to that outcome.

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

How to keep inflation under control

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Tackling inflation

Context

The economy now seems to be largely out of the shadow of Covid-19, and only a notch better than in 2019-20. But the big question remains: can India rein in the raging inflation that is at 7.8 per cent (CPI for April 2022), with food CPI at 8.4 percent, and WPI at more than 15 per cent?

Need for bold steps on three fronts to tackle inflation

  • Unless bold and innovative steps are taken at least on three fronts, GDP growth and inflation both are likely to be in the range of 6.5 to 7.5 per cent in 2022-23.
  • 1] Tightening of loose monetary policy: The Reserve Bank of India (RBI) is mandated to keep inflation at 4 per cent, plus-minus 2 per cent.
  • The RBI has already started the process of tightening monetary policy by raising the repo rate, albeit a bit late.
  • It is expected that by the end of 2022-3, the repo rate will be at least 5.5 per cent, if not more.
  • It will still stay below the likely inflation rate and therefore depositors will still lose the real value of their money in banks with negative real interest rates.
  • That only reflects an inbuilt bias in the system — in favour of entrepreneurs in the name of growth and against depositors, which ultimately results in increasing inequality in the system.
  • 2] Prudent fiscal policy: Fiscal policy has been running loose in the wake of Covid-19 that saw the fiscal deficit of the Union government soar to more than 9 per cent in 2020-21 and 6.7 per cent in 2021-22, but now needs to be tightened.
  • Government needs to reduce its fiscal deficit to less than 5 per cent, never mind the FRMB Act’s advice to bring it to 3 per cent of GDP.
  • However, it is difficult to achieve when enhanced food and fertiliser subsidies, and cuts in duties of petrol and diesel will cost the government at least Rs 3 trillion more than what was provisioned in the budget.
  • 3] Rational trade policy: Export restrictions/bans go beyond agri-commodities, even to iron ore and steel, etc. in the name of taming inflation.
  • But abrupt export bans are poor trade policy and reflect only the panic-stricken face of the government.
  • A more mature approach to filter exports would be through a gradual process of minimum export prices and transparent export duties for short periods of time, rather than abrupt bans, if at all these are desperately needed to favour consumers.
  • Liberal import policy: A prudent solution to moderate inflation at home lies in a liberal import policy, reducing tariffs across board.

Way forward

  • If India wants to be atmanirbhar (self-reliant) in critical commodities where import dependence is unduly high, it must focus on two oils — crude oil and edible oils.
  • In crude oil, India is almost 80 per cent dependent on imports and in edible oils imports constitute 55 to 60 per cent of our domestic consumption.
  • In both cases, agriculture can help.
  • Ethanol production: Massive production of ethanol from sugarcane and maize, especially in eastern Uttar Pradesh and north Bihar, where water is abundant and the water table is replenished every second year or so through light floods, is the way to reduce import dependence in crude oil.
  • Palm plantation: In the case of edible oils, a large programme of palm plantations in coastal areas and the northeast is the right strategy.

Conclusion

We need to invest in raising productivity, making agri-markets work more efficiently.

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Goods and Services Tax (GST)

GST Council must uphold fiscal federalism

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 279A

Mains level: Paper 3- Fiscal federalism in GST Council

Context

The recent ruling of the Supreme Court held that the states were free to use means of persuasion ranging from collaboration to contestation.

 Simultaneous or concurrent powers under Article 246A

  • Article 246A confers simultaneous or concurrent powers on Parliament and the state legislatures to make laws relating to GST.
  • This article is in sharp contrast to the constitutional scheme that prevailed till 2017.
  • It clearly demarcated taxing powers between the Centre and states with no overlaps.
  • After 2017, several central and state levies were subsumed into GST.
  • Each state was to have its own GST Act, all of them being almost identical to the Central GST Act.
  • Inter-state supplies and imported goods are liable to IGST.

Composition of GST Council

  • The GST Council has the Union finance minister as the chairperson and the Union minister of state in charge of revenue or finance as a member.
  • Centre has one-third voting power, 31 states (including two Union Territories) share the remaining two-thirds of the vote.
  • The GST Council has a total of 33 members.
  • Out of a total of 33 votes, 11 belong to the Centre and 22 votes are shared by 31 states/UT, with each state/UT having a 0.709 vote.
  • Any decision of the GST Council requires a three-fourth majority or a minimum of 25 votes.
  • As the Centre has 11 votes, it requires an additional 14 votes.
  • Unlike so many statutes, Article 279A has made no provision to make the decision of the majority binding on the dissenting states.
  •  Paragraph 2.73 of the Select Committee Report on the 122nd Constitution (Amendment) Bill, 2014, noted that this voting pattern was to maintain a fine balance as, in a federal constitution, the dominance of one over the other was to be disallowed.

Role of GST Council

  • Under Article 279A, the GST Council has to make “recommendations” on various topics including the tax rate and exemptions.
  • The Union of India argued that the “constitutional architecture” showed that Articles 246A and 279A, when read together, made the GST Council the ultimate policy-making and decision-making body for framing GST laws.
  • The GST Council was unique and incomparable to any other constitutional body and its recommendations would override the legislative power of Parliament and state legislatures.
  • Neither of them could legislate on GST issues independent of the recommendations of the GST Council.
  • The argument went further: On a combined reading of Article 279A, the provisions of the IGST and CGST Acts and the recommendations of the GST Council were transformed into legislation.
  • The Supreme Court rightly noted that several sections in the state GST laws, CGST and in IGST, cast a duty even on dissenting states to issue notifications to implement the recommendations of the GST Council.

Observations on federalism

  • Delving into legislative history, the court ruled that a draft Article 279B, which provided for a GST Disputes Settlement Authority, was omitted because it would have effectively overridden the sovereignty of Parliament and the state legislatures, and diminished the fiscal autonomy of the states.
  • It was desirable, the Court said, to have some level of friction, some amount of state contestation, some deliberation-generating froth in our democratic system.
  • Putting to rest any controversy, the court held that the recommendations of the GST Council had only a persuasive value.
  • To regard them as binding edicts would disrupt fiscal federalism because both the Union and states were conferred equal power to legislate on GST.
  • Rule-making power bound by recommendations of GST Council: The Court held that the state governments and Parliament, while exercising their rule-making powers under the provisions of the State GST Acts, CGST & IGST Acts, are bound by the recommendations of the GST Council.
  • States can amend GST laws: But even this did not mean that all recommendations of the GST Council are binding on state legislatures or Parliament to enact primary pieces of legislation on GST.
  • In effect, states can amend their GST laws if they so choose.

Way forward

  •  If the GST Council meets periodically as mandated and there is active participation of the states in making recommendations, no state will oppose a recommendation that has been carefully deliberated and is in the national interest.

Conclusion

Indeed, there is little chance of cracks developing in the GST edifice as long as the spirit of cooperative and collaborative federalism prevails.

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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

For India, a lesson in food security from Sri Lanka

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Food security

Context

 India needs to have a strategy of self-reliance in basic foods, including edible oils.

Contrasting cases of Sri Lanka and Saudi Arabia

  • Sri Lanka, a country with 21.5 million population imported dairy products valued at $333.8 million in 2020 and $317.7 million in 2021.
  • The island nation’s imports of whole milk powder (WMP) alone were 89,000 tonnes and 72,000 tonnes in these two years.
  •  The 89,000 tonnes of powder imported in 2020 would have, thus, “produced” almost 2.1 million litres per day (MLPD) equivalent of milk.
  • This is as against the 1.3 MLPD that Sri Lanka produces from its own cows and buffaloes.
  • It translates into an import dependence of over 60 per cent.
  • At the other end, we have Saudi Arabia, home to over 35 million inhabitants (including immigrants) and also the world’s largest vertically integrated dairy company.
  • Almarai Company has six dairy farms producing more than 3.5 MLPD of milk.
  • The animals are sourced from the US and Europe.
  • The entire feed and also forage given to them are procured from abroad.
  • Why is Saudi Arabia taking such pains to produce its own milk?
  • The answer is food security.
  • The Saudis — other Persian Gulf countries have also copied the Almarai model — are prepared to pay any price when it comes to ensuring the availability of basic food like milk.

Lessons for India: Reducing import dependence on edible oil

  • India annually imports 13.5-14.5 million tonnes of vegetable oils, again roughly 60 per cent of its total consumption.
  •  Low international prices meant that the import bill, though high, fell from $9.85 billion in 2012-13 to $9.67 billion in 2019-20.
  • However, in the last couple of years, retail prices of most oils more than doubled
  • The value of India’s vegetable oil imports surged to a record $19 billion in 2021-22.

Conclusion

As a country with a population many times that of Sri Lanka and Saudi Arabia, India needs to have a strategy of self-reliance in basic foods.

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Aadhaar Card Issues

A judicial course that calls for introspection

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 142

Mains level: Paper 2- Implications of Perarivalan case for federalism

Context

The recent decision of the Supreme Court of India in the case of A.G. Perarivalan has stirred up a hornet’s nest.

Use of Article 142 to grant pardon

  • The Court has treaded the extraordinary constitutional route under Article 142.
  • The Bench decided to exercise the power of grant of pardon, remission et al., exclusively conferred on the President of India and State Governors under Articles 72 and 161.
  • Against the separation of power: Against the background of separation of powers viz. Parliament/Legislature, Executive and Judiciary, whether the course adopted by the Bench to do expedient justice is constitutional calls for introspection.

Evaluating the constitutionality of decision

  • The power under Article 161 is exercisable in relation to matters to which the executive power of the state extends.
  • Discretionary power under Article 161: Article 161 consciously provides a ‘discretion’ to the Governor in taking a final call, even if it was not wide enough to overrule the advice, but it certainly provides latitude to send back any resolution for reconsideration, if, in his opinion, the resolution conflicted with constitutional ends.
  • In Sriharan’s case (2016 (7) SCC P.1), one of the references placed for consideration was whether the term ‘consultation’ stipulated in Section 435 Cr.P.C. implies ‘concurrence’.
  • It was held that the word ‘consultation’ means ‘concurrence’ of the Central government.
  • The Constitution Bench highlighted that there are situations where consideration of remission would have trans-border ramifications and wherever a central agency was involved, the opinion of the Central government must prevail.
  • Basing its conclusion on the legal position that the subject matter (Section 302 in the Indian Penal Code) murder, falls within Lists II and III (State and Concurrent lists) of the Seventh Schedule to the Constitution, the learned judges concluded that the State was fully empowered to take a call and recommend remission in this case.
  • If it is a simple case of being a Section 302 crime, the reason for finding fault with the Governor’s decision to forward the recommendation to the President may be constitutionally correct.
  • But the larger controversy as to whether the Governor in his exercise of power under Article 161 is competent at all, to grant pardon or remission in respect of the offences committed by the convicts under the Arms Act, 1959, the Explosive Substances Act, 1908, the Passports Act, 1967, the Foreigners Act, 1946, etc., besides Section 302, is not certain.
  • According to the decision, it is a simple murder attracting Section 302 of the IPC and therefore the Governor’s decision to forward the recommendation to the President is against the letter and spirit of Article 161 — meaning it is against the spirit of federalism envisaged in the Constitution.
  • Constitutionality use of Article 142: There are momentous issues that are flagged on the exercise of the power of remission under Article 142, by the Supreme Court in the present factual context.
  • The first is whether Article 142 could be invoked by the Court in the circumstances of the case when the Constitution conferred express power on the Governor alone, for grant of pardon, remission, etc., under Article 161.

Way forward

  • Deeper judicial examination: Whether what the State government could not achieve directly by invoking Sections 432 and 433 of Cr.P.C, without concurrence of Centre could be allowed to take a contrived route vide Article 161 and achieve its objectives is a pertinent issue.
  • This aspect requires deeper judicial examination for the sake of constitutional clarity.
  • Timeframe for the Governor: The Constitution does not lay down any timeframe for the Governor to act on the advice of the Council of Ministers.
  • In any event, even if the delay was constitutionally inexcusable or was vulnerable to challenge, the final arbiter of the Constitution (Article 245) could not have trumped Article 161 with Article 142, which is constitutionally jarring.

Conclusion

To portray the remission as to what it was not in the State is a sad fallout the lawlords on the pulpit may not have bargained for. And on the constitutional plane, this verdict deserves a relook, even a review, as it stands on wobbly foundations built with creaky credence.

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Freedom of Speech – Defamation, Sedition, etc.

The sedition law must go

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Section 124A of IPC

Context

By order dated May 11, 2022, a Bench presided over by the Chief Justice of India, has directed that the petitions challenging the Section 124A be listed for final determination in the third week of July 2022; and that in the meantime suspend the use of Section 124A IPC.

Historical background of Section 124A

  • With effect from 1870, (as amended in 1955), Section 124A of the Penal Code read:

“Whoever by words, spoken or written, brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection, towards the Government established by law in India shall be punished with imprisonment for life…”.

  • “Sedition” is the vaguest of all offences known to the criminal law.
  •  In colonial times, it was defined expansively in order to uphold the majesty of British power in India.
  • Before 1950, there were several Court decisions in operation on Section 124A; amongst them was Bal Gangadhar Tilak’s case (1897).
  • Absence of affection: In Bal Gangadhar Tilak’s case the Privy Council declined to grant leave to appeal, affirming that “disaffection” only meant “absence of affection in any degree towards the British rule or its administration or representatives”, and that exciting of mutiny or rebellion or actual disturbance of any sort was “absolutely immaterial”.
  • With the establishment of a Federal Court by the Government of India Act, 1935, in Niharendu Dutt Majumdar And Ors. vs Emperor the Federal Court held that if the language of Section 124A were to be read literally “it would make a surprising number of persons in India guilty of sedition and that no one, however, supposes that it is to be read in this literal sense”
  • However, in 1947 it was precisely in this literal sense that the interpretation of Section 124A was reiterated by a Bench of five judges of the Privy Council (AIR 1947 P.C. 82) in which it was declared that: “If the Federal Court had given their attention to Tilak’s case (1897) they should have recognised it as an authority… by which they were bound”.
  • With the advent of the Constitution of India on January 26, 1950, this interpretation of Section 124A became “the law in force immediately before the commencement of the Constitution”.

Section 124A after 1950

  • Article 372: It stated that all laws in force in the territory of India immediately before the commencement of the Constitution shall continue in force therein until altered or repealed or amended by a competent legislature or other competent authority.
  • Protected due to Article 19(2): In 1962, in criminal appeals arising from the states of Bihar and Uttar Pradesh, a Constitution Bench of the Supreme Court held that though Section 124A “clearly violated” the fundamental right to freedom of speech and expression in Article 19(1)(a), it was not unconstitutional only because it was protected from challenge by the words “in the interests of public order” in Article 19(2).

Conclusion

This background has now become pertinent and relevant, because in a fresh batch of writ petitions filed in 2021, the constitutionality of Section 124A (IPC) has been once again challenged in the Supreme Court.

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Use of statecraft for long-term solutions to security problems

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Use of statecraft in finding solutions to security problems

Context

In many countries, both the authorities and security agencies are beginning to acknowledge the importance of resorting to statecraft as a vital adjunct to the role played by the security agencies.

The important role of statecraft in security

  •  Statecraft involves fine-grained comprehension of inherent problems; also an ability to quickly respond to political challenges.
  • It further involves strengthening the ability to exploit opportunities as they arise, and display a degree of political nimbleness rather than leaving everything to the security agencies.
  • It entails a shift from reposing all faith in the security establishment to putting equal emphasis on implementation of policies and programmes.
  • Two prime examples which provide grist to the above proposition are the prevailing situation in Jammu and Kashmir and the continuing problem involving Maoists.
  • The need to use statecraft to deal with quite a few other internal security problems — some of which have lain dormant for years — is also becoming more manifest by the day.

Security issues in various regions

  • Jammu and Kashmir: While Jammu and Kashmir has been a troubled region ever since 1947, the situation has metamorphosed over the years.
  • No proper solution has emerged to a long-standing problem.
  •  Irrespective of the reasons for the latest upsurge in violence, what is evident is that Jammu and Kashmir has again become the vortex of violence.
  • Evidently, the doctrine of containment pursued by the Jammu and Kashmir police and security agencies is not having the desired effect.
  • In Jammu and Kashmir today, as also elsewhere, there is no all-in-one grand strategy to deal with the situation.
  • The missing ingredient is statecraft which alone can walk in step with the changing contours of a long-standing problem.
  • Punjab: The recent discovery of ‘sleeper cells’ in the Punjab clearly indicates the potential for the revival of a pro-Khalistan movement — which once ravaged large parts of the Punjab.
  • While pro-Khalistani sentiment is present in pockets in the United Kingdom and in Europe, it has not been in evidence in India for some time.
  • Hence, the recent attack by pro-Khalistan elements on the headquarters of the Punjab Police Intelligence wing in Mohali was a rude shock to the security establishment.
  • The incident is a reminder that militancy in the Punjab has not been permanently extinguished, and will need deft statecraft to nip it in the bud.
  • North-east: In India’s North-east, more specifically in the States of Assam and Nagaland, there are again incipient signs of trouble which, for the present, may need use of statecraft rather than the security forces. 
  • In Assam, the United Liberation Front of Asom–Independent (ULFA-I) is trying to revive its activities after a long spell of hibernation.
  • Likewise in Nagaland, where the National Socialist Council of Nagalim (I-M) has recently initiated a fresh push for a solution of the ‘Naga political issue’, the situation is pregnant with serious possibilities.
  • Both instances merit the use of statecraft so that the situation does not get out of hand.
  • South India: In the South, intelligence and police officials appear concerned about a likely revival of Liberation Tigers of Tamil Eelam (LTTE)-sponsored activities in Tamil Nadu.
  • This stems from a possible revival of LTTE-sponsored militancy in Sri Lanka following the recent economic crises and uncertainty there.
  • This situation again needs deft statecraft to prevent a resurgence of the past.

Conclusion

India faces several challenges today, but the answer to this is neither grand strategy nor grand simplifications nor resort to higher doses of security. A properly structured set of policies, having liberal doses of statecraft in addition to a proper set of security measures, is the best answer to India’s needs, now and in the future.

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Russian Invasion of Ukraine: Global Implications

The return of the great power rivalries

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Implications of Ukraine war for European security

Context

The post-Cold War period of peace in Europe is more an aberration than norm in the continent’s history of conflicts.

Background of the First World War

  • The Russian power had collapsed in its far east after the war with Japan in 1904-05.
  • Faced with the erosion of Russian influence and the rise of Wilhelmine Germany, which together threatened to alter Europe’s balance of power, France and Britain, competing colonial powers, came together. 
  • France had already reached an alliance with Russia.
  • The three would later form the Triple Entente, triggering a dangerous security competition in Europe with the Triple Alliance (Germany, Austria-Hungary and Italy), which would eventually lead to the First World War in 1914.
  • What triggered the great power security competition in the run-up to the First World War was the phenomenal rise of Wilhelmine Germany as a military and industrial power and the regional hegemons’ response to it.

Similarities with the past

  • When Otto von Bismarck became the Minister-President of Prussia in September 1862, there was no unified German state.
  •  Bismarck adopted an aggressive foreign policy, fought and won three wars — with Denmark, Austria and France — destroyed the confederation, established a stronger and larger German Reich that replaced Prussia.
  • Bismarck stayed focused on transforming Germany internally in his last two decades.
  • It was on the foundation Bismarck built that Wilhelmine Germany turned to weltpolitik in the early 20 century, seeking global domination.
  • If Bismarck inherited a weak, loosely connected group of German speaking entities in 1862, Russian President Vladimir Putin got a Russia in 2000 that was a pale shadow of what was the Soviet Union.
  • Bismarck spent his years in power expanding the borders of Germany and building a stronger state and economy.
  • The post-Cold War Russia initially stayed focused on the restoration of the state and the economy, and then sought to expand its borders and challenge the continent’s balance of power — first the Crimean annexation and now the Ukraine invasion.
  • While NATO’s expansion deepened Russia’s security concerns, driving it into aggressive moves, Russia’s aggression has strengthened NATO’s resolve to expand further into Russia’s neighbourhood.

Offensive realism

  • Offensive realists argue that “revisionist powers” tend to use force to rewrite the balance of power if they find the circumstances are favourable, while the status quo powers, or the existing regional hegemons, would seek to thwart any new country attaining more power at their expense.
  • The result of this type of competition is permanent rivalry and conflict.
  • One major difference between the era of Wilhelmine Germany and modern Russia is that there were no well-defined international laws in the 19th and early 20th centuries.
  • The international system has evolved ever since.
  • But its basic instincts, as realists would argue, have not changed much.
  • Mr. Putin’s Russia is not the first country that violated the sovereignty of a weaker power and flouted international laws in the “rules-based” order.

Future of Europe’s security

  • Russia apparently had two strategic objectives in Ukraine —
  • One, to expand Russian borders and create a buffer.
  • And two, to reinforce Russia’s deterrence against NATO.
  • While Russia has succeeded, though slowly, in expanding its borders by capturing almost all of Ukraine’s east, the war has backfired on its second objective.
  • Russia’s inability to clinch a quick outright victory in Ukraine and the tactical retreats it has already made have invariably dealt a blow to the perception of Russian power that existed before the war.
  • This has strengthened NATO, driving even Sweden and Finland into its arms. Besides, the economic sanctions would leave a long-term hole in Russia’s economy.
  • But a Russia that is bogged down in Ukraine and encircled by NATO need not enhance Europe’s security.
  • As Henry Kissinger said at Davos, Russia had been and would remain an important element in the European state system.

Conclusion

The prospects are bleak. There will not be peace in Europe unless either Russia accepts its diminished role and goes into another spell of strategic retreat or Europe and the West in general accommodate Russia’s security concerns. Both look unrealistic as of today.

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E-governance

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Use of technology in governance

Context

There are several reforms and governance initiatives that have successfully steered India to its current strength.

Contribution of Digital India program

  • A report carding of Digital India’s performance shows impressive progress.
  • Thus far, the government has transferred more than Rs 17 lakh crore through DBT while saving Rs 2.2 lakh crore.
  • Today, India has the world’s fastest-growing and most vibrant startup ecosystem with close to 70,000 registered startups and around 100 unicorns, with a unicorn coming up every week.
  • GST regime: Thanks to the most significant reform in indirect taxation through the GST and tax compliance, India has registered its highest ever collections.
  • Revenue increased from Rs 22 lakh crore in FY 21 to Rs 27 lakh crore in FY 22 — a whopping 22 per cent growth.
  • Role in India’s response to pandemic: Digital India played a significant role in India’s response to the pandemic.
  • It ensured that the government could reach people in remote parts of the country.
  • Health, education and other essential services migrated swiftly to the online mode.

Use of technology for governance amid pandemic

  • Digital India played a significant role in India’s response to the pandemic.
  • It ensured that the government could reach people in remote parts of the country.
  • Health, education and other essential services migrated swiftly to the online mode.
  • It would not be an aberration to say that post-Covid, India emerged as a preeminent nation in the use of technology for governance.

Conclusion

The rapid digitalisation of the world along with a new focus on trust in the global supply chains for digital products and services presents tremendous opportunities for India and its youth.  It is now up to all of us to engage in a collective “sabka prayas” to realise New India’s economic potential.

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Judicial Reforms

Digitization of Judiciary

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Lok Adalat

Mains level: Paper 2- Use of technology by judiciary

Context

The Indian judiciary has increasingly started using technology and the change is reflected in the legal profession in general as well.

Increasing use of digital technology in the judiciary

  • With the digitisation of judicial records and the establishment of e-courts, significant developments had taken place in 2020.
  • Use of technology to better utilise potential: It is imperative that the use of digital technology be discussed to better utilise its potential, particularly in terms of digitisation of court records, e-filing of cases and their virtual hearing, live streaming of court proceedings.

Background

  • In India, e-governance in the field of administration of justice began in the late 1990s, but it accelerated after the enactment of the Information and Technology Act, 2000.
  • In the year of 2006, e-courts were launched as a part of the National e-Governance Plan (NEGP).

Digitisation of case files

  • When he was the Chief Justice of Allahabad HC, Justice D Y Chandrachud had conceptualised and initiated the project to digitise approximately one crore case files in one year.
  • Saving of space and preservation of old documents: This was necessary as not only was a large space required to store so many files, it was also becoming difficult to manually preserve the decades-old documents.
  • Traceability: Another purpose was to ensure that these files are traceable electronically as and when required.
  • It has also been observed that cases are adjourned simply because affidavits filed several years ago were not restored with the record or were not traceable.
  • Once the documents are digitised and e-filed by counsels, at least the cases would not get adjourned by the courts on this account.
  • Reducing the risk of missing court records: In State of Uttar Pradesh v. Abhay Raj Singh, it was held by the Supreme Court that if court records go missing and re-construction is not possible, the courts are bound to set aside the conviction.
  • Saving of time: With digitisation, it will take much less time for the lower courts to transmit the records as and when called for.
  • The lawyers benefit because they or their staff are no longer required to visit the reporting sections or other sections of the court to know about the status of their cases.
  • This has been sought to be implemented by the e-Committee of the Supreme Court by issuing directions to ensure that e-filing of cases/petitions by state governments in all matters be made mandatory from January 1, 2022.

Scope for virtual hearing in certain cases

  • Cases related to matrimonial issues and domestic violence bounced cheques, motor accident compensation referred to mediation centres and lok adalats could be included in the list of cases fit for disposal through the virtual hearing.
  • The hearing of matrimonial cases through video-conferencing was approved by the Supreme Court in the matter of Krishna Veni Nagam v Harish Nagam (2017).
  • The direction was short-lived and a coordinate bench of the Supreme Court in the case of Santhini v Vijaya Venkatesh (2018) referred the matter for reconsideration before a larger bench.
  • Virtual hearings cannot be a substitute for physical court hearings in all cases.
  • However, in appropriate cases and certain categories of cases as identified by the court administration in consultation with the members of the Bar, virtual hearing should be made mandatory.

Live streaming of cases

  • In 2018, the Supreme Court allowed the live-streaming of cases of constitutional and national importance on the basis of the judgment in Swapnil Tripathi.
  • Step towards transparency: The livestreaming of court proceedings is a step towards ensuring transparency and openness.
  • While several reservations were expressed against it, the Gujarat HC in July 2021 became the first court in the country to livestream its proceedings.
  • Its example was followed by other HCs like Karnataka, Odisha, Madhya Pradesh and Patna.

Challenges

  • Internet connectivity issues and the need for a well-equipped space where lawyers can conduct their cases are some of the major problems requiring attention.
  • Political will and the support of judges and lawyers are also necessary.
  • Awareness and training: Judges, court staff and lawyers are not well-versed with digital technology and its benefits.
  • The need of the hour is for them to be made aware of these and receive adequate training.

Conclusion

Adoption of technology will bring drastic changes in the field of law and will transform the Court system.

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Police Reforms – SC directives, NPC, other committees reports

Criminal justice system

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- Criminal justice system

Context

The key to an improved criminal justice system is quality forensic labs and well-trained staff, not more legislation and harsher punishments.

About forensic science

  • Forensic science is the application of scientific perspectives and techniques to the legal process, including investigations and courtroom protocol.
  • It is the use of scientific data and procedures specifically for the legal system.
  • There is rigorous procedure involved, including controlled conditions, reliable data collection and the attempt to disprove hypotheses.
  • Methodologies like the autopsy procedures, fingerprinting, testing and matching for poisons, blood spatter analysis, matching guns to bullets fired (ballistics), voice sample matches, handwriting assessments and DNA analysis are all facets of forensic science.

 Inadequate state forensic facilities

  • We have a woefully inadequate number of forensic science laboratories (FSL).
  • There are seven central forensic laboratories in India at Hyderabad, Kolkata, Chandigarh, New Delhi, Guwahati, Bhopal and Pune.
  • Six of these laboratories, barring Delhi, are under the control of the Directorate of Forensic Science Services (DFSS), and its mission is to render high quality and credible forensic services to the justice delivery system.
  • A National Forensic Sciences University was established in Gandhinagar, Gujarat in 2020.
  • The existing National Institute of Criminology and Forensic Science in Delhi has been integrated into this new university.
  • There are 32 state FSLs and about 529 mobile FSL units, of which Delhi has one state FSL and six mobile units.
  • The DNA tests discovered in 1985 are used to identify individuals involved in alleged crimes.
  • In 2017, The Hindu reported that while the United Kingdom completes DNA testing on over 60,000 crimes annually, India with over 13 times the population completes such tests on less than 7,500 cases.
  • The average pendency at each lab is huge.
  • In all states, there were over 50 per cent vacancies in personnel at their facilities.

Way forward

  • More investment: We certainly need more investment in the establishment of FSL laboratories, the training and appointment of personnel adept at forensic methodologies and reforms within our police to establish a trained and skilled detective cadre tasked with solving complex and heinous crimes.
  • Quality training and accreditation: There is a desperate need for good quality training facilities, standards of accreditation and continuous education programmes for our forensic experts.

Conclusion

It is not more legislation and harsher punishments that will solve crimes, but well-trained forensic staff plying their craft in good quality laboratories that will aid our criminal justice system.

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Goods and Services Tax (GST)

GST collections touched a record high of Rs 1.67 lakh crore in April.

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GST collection

Mains level: Paper 3- Increased GST collection

Context

There has been a remarkable upswing in GST collections in recent months. Collections touched a record high of Rs 1.67 lakh crore in April.

GST

GST Interstate Model Example

What are the reasons for increased collection?

  • 1] Inflation: First, the sharp rise in inflation has played a significant role.
  • Notwithstanding concerns over the unevenness of the economic recovery, in nominal terms, the economy grew by 19.4 per cent in 2021-22 as per the second advance estimates.
  • Deflating GST collection suggests that a large part of the recent increase in collections is driven by rising prices.
  • 2] Higher imports: Part of the overall increase in collections can be traced to higher imports.
  • Higher buoyancy: Even if one is to exclude the revenue accruing from imports, the rise in GST collections has outstripped GDP growth, indicating higher buoyancy.
  • 3] Tightening of the rules: In order to improve compliance levels, the GST Council has been tweaking the rules to tighten the system.
  • Returns filed have gone up, while the number of non-filers and those who delay filing have fallen.
  • Alongside, the administration has also taken steps to tackle the menace of fake invoices by placing restrictions on the quantum of input tax credit that can be used to pay of tax obligations.
  • The introduction of e-invoicing has also played a role.
  • Until recently, this was being implemented for firms with a turnover of more than Rs 50 crore.
  • From April, this process has been extended to firms above Rs 20 crore.
  • The incremental gains from bringing smaller firms into its ambit, while consequential, are unlikely to be of the same order.
  • 4] Industrial activity:  The higher collections in April 2022 seem to be led by increase in industrial activity. This is borne by strong growth in collections in states such as Maharashtra, Karnataka and Odisha which house lot of industries. Relatively tepid growth in more populous states such as Bihar (-2.47 per cent), West Bengal (7.80 per cent) and Jharkhand (4.86 per cent) shows that the GST collections was not propelled by revival in private consumption.
  •  The real challenge lies in improving compliance levels across the entire spectrum of industries where inputs/raw materials are sourced largely from the informal sector.
  • 5] Changing the structure of the economy: The formalisation of firms, the growing concentration of economic power in the hands of a few, imply that for the same level of output, the tax paid will be higher.

Suggestion

  • Increase tax rate: Around two-fifths of the taxable value (or turnover) falls under the 18 per cent slab as per research by some analysts.
  • This implies that simply merging the 12 per cent and the 18 per cent slab as some have been suggesting would lead to a revenue loss.
  • Before opting for such adjustments, the GST Council must first ascertain the potential revenue (net of cess and refunds) at varying levels of compliance, tax rates and exemptions afforded.
  • Now, as per some estimates presented to the 15th Finance Commission, with existing exemptions in place, the current tax regime should ideally yield revenues equivalent to 8.23 per cent of GDP.
  •  In another scenario, even if existing exemptions are kept in place, and if a single rate of 14 per cent is levied, then collections should rise to 8.93 per cent.

Conclusion

Considering the current economic situation, now may not be an opportune moment to raise taxes. But there is no getting around it. Both the Centre and the states need to work towards this.

 

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Important Judgements In News

Why transfer of case to district judge by Supreme Court sends the wrong signal

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Places of Worship (Special Provisions) Act, 1991

Mains level: Paper 2- Lower judiciary

Context

The Supreme Court order of May 20, transferring the suit on the Gyanvapi Masjid dispute from the civil judge (senior division) Varanasi to the district judge casts aspersion, though unintended, on the competence of civil judges in general.

Background

  • The matter had reached the Supreme Court on a petition filed by the Mosque Management Committee, which challenged the civil judge’s orders.
  • The order permitted inspection, survey, and videography of the mosque’s complex to collect evidence about the alleged existence of idols of Hindu deities inside the mosque, which is adjacent to the Kashi Vishwanath Temple.
  • The Mosque Management Committee had filed an application before the civil judge seeking the rejection of the plaint on the ground that it was barred by the Places of Worship (Special Provisions) Act, 1991.
  • Places of Worship (Special Provisions) Act, 1991 prohibits individuals and groups of people from converting, in full or in part, a place of worship of any religious denomination into a place of worship of a different religious denomination, or even a different segment of the same religious denomination.
  • It was argued before the SC that given the said Act, the suit was liable to be rejected at the threshold as the civil judge had no jurisdiction to entertain the same, much less to pass the aforesaid interim orders.
  • The SC has not found any fault with the order of the civil judge, though there is also a view that it was mandatory on the part of the civil judge to have first passed an order on whether he had the jurisdiction to entertain the suit.
  • However, it appears that in the SC’s view, this was not a serious infraction.
  • So, in a way, the SC has affirmed the orders of the civil judge.
  • The civil court had territorial and pecuniary jurisdiction to deal with the matter.
  • The question that arises is: Why has the Supreme Court transferred the matter to the court of the district judge?

Issues with the SC transferring the case to the district judge

  • The SC has seemingly declared civil judges to be not competent to decide a matter alleged to be complex.
  • When the Civil Procedure Code, the High Court Rules and Orders invest a civil judge with jurisdiction, why take it away merely on the plea that the matter is complex?
  • Unhealthy precedent: Fransfer of the case to the district judge has set an unhealthy precedent and will have a demoralising effect on the subordinate judiciary.
  • In the recent past, many lower-level judicial officers have passed outstanding orders in matters concerning the liberties of the citizens, which are under threat as never before.
  • The subordinate judiciary provides the foundation of our judicial system.

Conclusion

Supreme Court order inadvertently casts aspersions on competence of subordinate judiciary. District court should not be weighed down by SC observation.

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Goods and Services Tax (GST)

Supreme Court’s ruling on GST deepens the churn in the tax regime

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Implications of Supreme Court's ruling for GST regime

Context

Last week, the Supreme Court ruled that the decisions taken by the GST Council are merely recommendations with “persuasive value” and are not binding.

GST as a advisory body

  • The court has rejected the Centre’s contention that the entire structure of GST would crumble if the Council’s decisions were not treated as enforceable.
  • In some ways, the verdict states the obvious.
  • Article 246-A inserted after the 122nd constitutional amendment states, “Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of every state, have the power to make laws with respect to the GST imposed by the Union or by such state.”
  • Thus, the power to levy the central GST (CGST) vests with Parliament, the power to levy state GST (SGST) vests with state legislatures and Parliament has exclusive power to make laws with respect to the GST on items that are part of inter-state trade or commerce.
  •  Thus, the GST Council is only an advisory body and the actual decisions regarding model GST levies, principles of levy, apportionment of GST levied on inter-state supplies, principles relating to place of supply, exemptions and rate structure and any special provisions will have to be taken by either Parliament in the case of CGST and IGST or the states in the case of SGST.
  • In effect, decisions on the structure and operation of the tax can be made by the Centre and individual states without discussion and deliberation in the Council and both can ignore any recommendation made by the Council.
  • The judgment reiterates that the sovereign right to levy the tax still exists with the Union and state governments and it is for them to consider the recommendations of the Council.
  • The chance of having a harmonised GST and reforms in the tax regime will crucially depend upon continued negotiation and bargaining between the Union and states.
  • Intergovernmental cooperation has been kept alive to ensure a harmonised GST and unless both the Centre and the states see the gains, reforms will be hard to come by and if the Centre desires the reforms more than the states, it will have to ensure a “buy in” from the states to agree for the reform.

Implications of the judgement

  • Given that the GST Council has been declared as only an advisory body with a persuasive value, what happens to the dream of having a harmonised one nation, one tax, if a state or a group of states decides to deviate?
  • But the judgment paves the way for more intensive bargaining and negotiations, placing states on an equal footing with the Centre in taking decisions on the structure and operations of the tax.
  • At present, decisions get approved in the GST Council when passed by a majority of three-fourths of the weighted votes of the members present and voting, with the Centre having one-third weight and individual states (and UTs) having an equal share of the remaining two-thirds weight.
  • However, in the past, all decisions in the Council have been taken by consensus (except in the case of determining the rate on lotteries), and the Supreme Court decision reinforces this convention.
  • The immediate impact of this will be bargaining by states for extending the period of compensation for the loss of revenue.
  •  As the five-year period of compensation gets over at the end of June, this decision will now help the states to bargain hard for the extension.

Way forward

  •  Though the period of collecting compensation cess has been extended till March 2026 to meet the interest and repayment requirements of the funds borrowed from the RBI to meet the compensation requirements, the lasting solution lies in increasing the revenue productivity of the tax by pruning the list of exempted items, rationalising the rates and taking administrative measures.
  • These reforms will require strengthening the cooperative spirit.

Conclusion

This has come at a time when reforms have to be set in motion and hopefully, the Court’s decision will strengthen the cooperative spirit in reforming the domestic consumption tax system in the country.

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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

The message from the government’s wheat export ban

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Challenges facing wheat economy in India

Context

The ban on the export of wheat was not unexpected. The rather ambivalent approach to agriculture comes out clearly with this move.

Understanding how this ban has come about

  • We are not comfortable with market forces operating in agriculture.
  • Nor are we quite sure whether we want the farmer to get a better price or the consumer to pay less.
  • Governments spend a lot of money in the form of subsidies to ensure farmers are enthused to produce more wheat.
  • The Centre keeps increasing the MSP for this purpose and states often pay a bonus for procurement.
  • There are political reasons too as the farmer lobby needs to be placated.
  •  There are political reasons too as the farmer lobby needs to be placated.
  • We have been taking credit for the production of wheat and every year we set a new record.
  • This year, the Ministry announced that wheat production will touch a record of 111 million tonnes, which has recently been revised downwards.
  • With the war, conditions have changed. Russia and Ukraine are large producers of wheat and their supply to world markets has been cut off due to sanctions and supply chain disruptions.
  • With supplies interrupted, there is an opportunity for other surplus nations to step in.
  • But the disruption has caused world prices to rise significantly.

Opportunity for India

  • The World Bank data indicates that the price of US (soft red winter) wheat has gone up from $328/tonne in December to $672/tonne while US (hard red winter) wheat is up from $377 to $496/tonne.
  • Countries that produce abundant wheat now have a chance to leverage this opportunity to export.
  • However, in case of India it does appear that production will be lower than expected.
  • Low wheat stock: The government has also not been able to procure wheat as farmers are no longer selling at MSP (which is at Rs 2,015/quintal) as they are getting higher prices in mandis.
  • As of May 10, procurement was just 18 million tonnes against 43 million tonnes last year.
  • This is a significant fall.
  • But stocks with the Centre and other state agencies are 30.3 million tonnes, way above the buffer norms of 27.6 million tonnes.
  • The ban on wheat exports is because of this.

Two constraints on the wheat economy

  • In 2007 and again in 2021, the government banned futures trading in wheat on grounds that it led to speculative pressure on prices even though the quantity traded and the open interest were minuscule.
  • At that time, it was a decline in expected output which triggered this action.
  • It does look like the wheat economy will continue to operate within two constraints that have become barriers to commercialisation.
  • MSP and government procurement: The first is MSP and government procurement, which feeds into the public distribution system.
  • Arhatiya system: The second is the arhatiya system of trading where middlemen have come in the way of any reform.

Suggestions

  • Abolish MSP and procurement system: The MSP and procurement system needs to be dismantled.
  • Cash transfers: As the government has successfully expanded both the Aadhaar and Jan Dhan programmes, there should be simple cash transfers to beneficiaries.
  • Buffer stocks can be held to ease distress during a crisis, but government involvement should stop there.
  • Procuring unlimited quantities of wheat and keeping huge stocks has distorted the wheat matrix.
  • The mandi system too needs to be revisited and alternatives have to be made available so that farmers can choose the point of sale.

Conclusion

We have been talking about being a part of global supply chains to augment value addition and accelerate growth. But when it comes to agriculture it is a blow-hot blow-cold approach. This not only affects our credibility but also sends confusing signals to producers as to what is the best way out for them.

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Indian Ocean Power Competition

How the Quad can become more than an anti-China grouping

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Indo-Pacific Economic framework

Mains level: Paper 2- Opportunity for Quad plus

Context

On May 23, before the Quad leaders’ summit in Tokyo, the United States launched the Indo-Pacific Economic Framework (IPEF).

Significance IPEF

  • The Indo-Pacific Economic Framework (IPEF) will consist of a diverse group of 12 countries initially — Australia, Brunei, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
  • The IPEF — which covers fair trade, supply chain resilience, infrastructure, clean energy, and decarbonisation, among others — is likely to complement the other Indo-Pacific projects like the Supply Chain Resilience Initiative (SCRI)  that also seeks to build resilient and secure trade linkages by reducing dependence on China.
  • Decoupling from Chinese over-dependence: The US-led economic engagement is a salient attempt to allow countries to decouple from Chinese over-dependence in order to ultimately strengthen the existing free and open rules-based global order.
  • Extension of plus grouping: The launch of IPEF signifies the essence of the Quad and its extension as a “plus” grouping.
  •  It brings together seven critical countries of the Association of Southeast Asian Nations (ASEAN), all Quad states, and dialogue partners, including South Korea, solidifying a case for the “plus” characterisation of the Quad process.
  • Thus, it is an encouraging sign that the Quad countries are investing their strategic orientation in this regard.
  • Importantly, both the IPEF launch, and the Tokyo summit dispel any remaining misgivings about the Quad disintegrating and certify that it is a cohesive unit where it matters.
  •  It would potentially represent an amalgamation of the eastern and western “like-minded” countries.
  • The expanded grouping and the related Quad initiatives will build a comprehensive and integrated approach to combating shared challenges arising out of Chinese aggression.
  • A hallmark of Biden’s latest Asia visit has been South Korea’s embrace of the Indo-Pacific framework.
  • This is a long-awaited turn that could potentially lead to South Korea participating in a more meaningful manner in the Quad in the near future.

Importance of Taiwan

  • Taiwan is a major economy in the Indo-Pacific region (as also the US’s eighth-largest trading partner in 2021 and a critical partner in diversifying the US supply chains), which is already engaged in the US-Taiwan Economic Prosperity Partnership Dialogue that includes many of the issues proposed in the IPEF.
  • The inclusion of Taiwan, which already has a critical role in the global semi-conductor supply chain network, in the SCRI and the IPEF as well as, by extension, in the Quad format, in some manner would be a welcome addition.
  • Geopolitical statement against coercive tactics: Importantly, Taiwan’s inclusion would also be a geopolitical statement against coercion tactics by international actors.

Inclusivity characteristics based on a  commitment to the existing international order

  • In its current abstract framework, the plus framework includes a wide array of states (which also comprise the IPEF) — developing and developed economies as well as middle and major powers that are committed to maintaining an inclusive, rules-based and liberal institutional order.
  • The inclusivity angle is suspect as the grouping is essentially what China calls a US-led “anti-China” tool.
  • Therefore, what interested states must envision is a broad, all-embracing, and comprehensive framework that can stand as a pillar for regional security and stability, multilateralism, and defence of global institutionalism and the status quo.

Conclusion

States are showing their willingness, and now it is incumbent on the Quad states to allow for the creation of a “corridor of communication” that ultimately leads to a “continental connect” to strengthen a rules-based order.

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Parliament – Sessions, Procedures, Motions, Committees etc

India needs parliamentary supervision of trade pacts

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 253

Mains level: Paper 2- Parliamentary supervision of trade pacts

Context

India is negotiating and signing several free trade agreements (FTAs) with countries like Australia, the UK, Israel, and the EU. While the economic benefits of these FTAs have been studied, there is very little discussion on the lack of parliamentary scrutiny of these treaties.

Provisions in the Constitution

  • In the Constitution, entry 14 of the Union list contains the following item — “entering into treaties and agreements with foreign countries and implementing of treaties, agreements and conventions with foreign countries”.
  • According to Article 246, Parliament has the legislative competence on all matters given in the Union list.
  • Thus, Parliament has the power to legislate on treaties. 
  • This power includes deciding how India will ratify treaties and thus assume international law obligations.
  • Article 253  elucidates that the power of Parliament to implement treaties by enacting domestic laws also extends to topics that are part of the state list.

Lack of parliamentary oversight and its implications

  • No law laying down the process: While Parliament in the last seven decades has passed many laws to implement international legal obligations imposed by different treaties, it is yet to enact a law laying down the processes that India needs to follow before assuming international treaty obligations.
  • Given this legislative void, and under Article 73(the powers of the Union executive are co-terminus with Parliament), the Centre has been not just negotiating and signing but also ratifying international treaties and assuming international law obligations without much parliamentary oversight.
  • Arguably, Parliament exercises control over the executive’s treaty-making power at the stage of transforming a treaty into the domestic legal regime.
  • However, this is a scenario of ex-post parliamentary control over the executive.
  • In such a situation, Parliament does not debate whether India should or should not accept the international obligations; it only deliberates how the international law obligations, already accepted by the executive, should be implemented domestically.
  • Against the practice in other liberal democracies: This practice is at variance with that of several other liberal democracies.
  • In the US, important treaties signed by the President have to be approved by the Senate.
  • In Australia, the executive is required to table a “national interest analysis” of the treaty it wishes to sign in parliament, and then this is examined by a joint standing committee on treaties – a body composed of Australian parliamentarians.

Way forward

  • Indian democracy needs to inculcate these healthy practices of other liberal democracies.

Conclusion

Effective parliamentary supervision will increase the domestic acceptance and legitimacy of international treaties, especially economic agreements, which are often critiqued for imposing undue restraints on India’s economic sovereignty.

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Higher Education – RUSA, NIRF, HEFA, etc.

Branch campuses in India, prospects and challenges

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 2- University branch campuses

Context

India, after half a century of keeping its higher education doors closed to foreigners, is on the cusp of opening itself to the world.

Higher education reforms

  • Currently, India does not allow the entry and the operation of foreign university branch campuses.
  • The NEP 2020 was a turning point for the entry of foreign universities as it recommended allowing foreign universities ranked in the “top 100” category to operate in India — under somewhat unrealistic conditions.
  • Internationalism: The wide-ranging National Education Policy (NEP) 2020 promises higher education reforms in many areas, and internationalisation is prominent among them.
  • Strengthening India’s soft power: Among the underlying ideas is to strengthen India’s “soft power” through higher education collaboration, bringing new ideas and institutions from abroad to stimulate reform and show “best practice”, and in general to ensure that Indian higher education, for the first time, is a global player.
  • In February 2022, Finance Minister Nirmala Sitharaman, in her Budget speech, announced that “world-class foreign universities and institutions would be allowed in the planned business district in Gujarat’s GIFT City”
  •  It was reported that in April 2022, the University Grants Commission (UGC) formed a committee to draft regulations to allow foreign institutions in the “top 500” category to establish campuses in India — realising that more flexibility was needed
  • Bringing global experience to India: Establishing branch campuses of top foreign universities is a good idea as this will bring much-needed global experience to India.

Challenges

  • Globally, branch campuses, of which there are around 300 now, provide a mixed picture.
  • Many are aimed at making money for the sponsoring university — and this is not what India wants.
  • It will not be easy to attract foreign universities to India and even more difficult to create the conditions for them to flourish.
  • Many of those top universities are already fully engaged overseas and would likely require incentives to set up in India.
  • Further, there are smaller but highly regarded universities outside the ‘top 500’ category that might be more interested.
  • Universities around the world that have academic specialisations focusing on India, that already have research or faculty ties in the country, or that have Non-Resident Indians (NRI) in senior management positions may be easier to attract.
  • What is most important is to prevent profit-seekers from entering the Indian market and to encourage foreign institutions with innovative educational ideas and a long-term commitment.
  • Many host countries have provided significant incentives, including building facilities and providing necessary infrastructure.
  • Foreign universities are highly unlikely to invest significant funds up front.
  • A big challenge will be India’s “well-known” bureaucracy, especially the multiple regulators.

Opportunities

  • India is seen around the world as an important country and an emerging higher education power.
  • It is the world’s second largest “exporter” of students, with 4,61,792 students studying abroad (according to the UNESCO Institute for Statistics).
  • And India has the world’s second largest higher education system.
  • Foreign countries and universities will be eager to establish a “beachhead” in India and interested in providing opportunities for home campus students to learn about Indian business, society, and culture to participate in growing trade and other relations.
  • Benefits of branch campuses: International branch campuses, if allowed, could function as a structurally different variant of India’s private university sector.
  • Branch campuses, if effectively managed, could bring much needed new ideas about curriculum, pedagogy, and governance to Indian higher education — they could be a kind of educational laboratory.

Current initiatives

  • There has been modest growth of various forms of partnerships between Indian and foreign institutions.
  • The joint PhD programmes offered by the Indian Institute of Technology Bombay-Monash Research Academy and the University of Queensland-Indian Institute of Technology Delhi Academy of Research (UQIDAR), both with Australian partners, are some examples.
  • Another example is the Melbourne-India Postgraduate Academy (MIPA). It is a joint initiative of the Indian Institute of Science Bangalore, the Indian Institute of Technology Madras, the Indian Institute of Technology Kanpur and the Indian Institute of Technology Kharagpur with the University of Melbourne.
  • MIPA provides students with an opportunity to earn a joint degree accredited both in India and Australia: from the University of Melbourne and one of the partnering Indian institutions.
  • These partnerships suggest that India could offer opportunities for international branch campuses as well.

Challenges

  • Globally, branch campuses, of which there are around 300 now, provide a mixed picture.
  • Many are aimed at making money for the sponsoring university — and this is not what India wants.
  • It will not be easy to attract foreign universities to India and even more difficult to create the conditions for them to flourish.
  • Many of those top universities are already fully engaged overseas and would likely require incentives to set up in India.
  • Further, there are smaller but highly regarded universities outside the ‘top 500’ category that might be more interested.
  • Universities around the world that have academic specialisations focusing on India, that already have research or faculty ties in the country, or that have Non-Resident Indians (NRI) in senior management positions may be easier to attract.
  • What is most important is to prevent profit-seekers from entering the Indian market and to encourage foreign institutions with innovative educational ideas and a long-term commitment.
  • Many host countries have provided significant incentives, including building facilities and providing necessary infrastructure.
  • Foreign universities are highly unlikely to invest significant funds up front.
  • A big challenge will be India’s “well-known” bureaucracy, especially the multiple regulators.

Conclusion

After examining national experiences elsewhere, clear policies can be implemented that may be attractive to foreign universities. Once policies are in place, the key to success will be relationships among universities.

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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

Government lacking a coherent policy of food security

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Not much

Mains level: Paper 3- Need for coherent policy of food security

Context

The Government of India announced a sudden ban on export of wheat on May 13, 2022, a few days after Prime Minister Narendra Modi had stated that “at a time when the world is facing a shortage of wheat, the farmers of India have stepped forward to feed the world”.

What led to the sudden wheat export ban?

  • Low public procurement: The sudden turnaround in the export policy appears to be on account of fears that low public procurement would affect domestic food security.
  • This summer, procurement of wheat by the Food Corporation of India (FCI) has been very low.
  • Last year, the FCI and other agencies procured 43.34 million tonnes of wheat.
  • For the current season, procurement has only been 17.8 million tonnes, as of May 10, 2022.
  • Given the low levels of procurement, the Government has reduced the procurement target for the current season from 44.4 to 19.5 million tonnes.
  • Low production: While wheat production this year has been lower than estimated on account of high heat and other factors in March, there is not a big shortfall in production relative to previous years.
  • Wheat production was 103.6 million tonnes in 2018-19, 107.8 million tonnes in 2019-20, and 109.5 million tonnes in 2020-21.
  • The most recent estimate of production for 2021-22, revised downwards from the earlier estimate, is 105.

Public procurement in India

  • The system of public procurement has been in place since the mid-1960s, and has been the backbone of food policy in India.
  • As part of the liberalisation policy, many other economists suggested that food stocks be run down in India and that needs of food security be met through world trade and the Chicago futures market.

Need for effective PDS

  • Higher than buffer stock norm: Stocks of wheat in the central pool as of April 30, 2022 were 30.3 million tonnes, much lower than the 52.5 million tonnes of last year, but comfortably higher than buffer stock norms.
  • While the Government procurement in this marketing season has been lower than the previous two years, the stock position so far is similar to 2019, when we had 35.8 million tonnes of stock in April.
  • An important role in pandemic: In the two COVID-19 years (2020-21 and 2021-22), the Public Distribution System (PDS) played a stellar role, and, its role showed the wisdom of not dismantling it.
  • Total offtake of rice and wheat was 102.3 million tonnes in 2021-22 when distribution through the PDS and other welfare schemes is combined.
  • It is essential that the PDS and open market operations be used to cool down food price inflation.
  •  While most States have high inflation rates, States with better PDS, such as Kerala and Tamil Nadu, have low inflation rates.

Way forward

  • Provide remunerative prices: To promote production, a key aspect of food policy in India has been to provide remunerative prices to farmers.
  • As is well known, after the reports of the National Commission on Farmers, the announced minimum support price (MSP) for wheat has often been inadequate to cover costs of cultivation for several regions and classes of farmers, especially if comprehensive costs (or Cost C2) are taken as the base. 
  • Over the last two years, costs of production have risen sharply, one important component being the spiralling price of fuel.

Conclusion

India’s flip-flop on the export of wheat is an example of the Government lacking a coherent policy of food security.

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