Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Issue of retrospective taxation
Context
With the government proposing to repeal the ‘retrospective tax’ amendment introduced in the Union Budget 2012-13, a 14-year-story has come to an end.
Background of retrospective tax
- In 2007 Vodafone acquired Hutchison Essar, the telecom company, for $11 billion. But the deal did not take place in India.
- Yet, Vodafone was slapped with a huge income tax demand in India.
- The Supreme Court rule in favour of Vodafone and said that the Indian authorities could not tax a deal executed in Cayman Islands.
- This verdict led to the 2012 amendment in the Income Tax Act, to the effect that if an Indian asset was held by a foreign company and an acquirer bought this holding company, such a transaction was deemed to be taxable in India because the underlying asset was located in India.
- More importantly, this change was made retrospectively from 1962.
- Now, the government has introduced The Taxation Laws (Amendment) Bill, 2021 to undo this insidious provision from the Finance Bill, 2012.
- The government will not raise tax demands in any such case if the transaction occurred before 28 May 2012.
- The tax on the indirect sale of assets located in India still stays on the statute books, but it is fully visible to and understood by any parties looking to enter into such a transaction.
Why repeal of retrospective taxation is a good move?
- Resolution of case the cases: This will potentially help resolve 17 cases in which income tax demand had been raised, including two high profile cases—Cairn and Vodafone.
- Visibility and stability: The government is putting to rest the concept of retrospective taxation and is also creating visibility and stability for the future.
- Predictability: The most important aspect of any tax regime is its predictability and this decision helps bring that.
- Honouring the rule of law: It also reiterates India’s commitment to honour the rule of law and treaties.
- Build confidence: Apart from the various reform measures and incentives being offered, the sanctity of contracts is a key factor that any investing entity will look at when deciding on expanding business operations in India.
- The government’s move would help build confidence and provide a fillip to Atmanirbhar Bharat.
Conclusion
As the post-covid recovery picks up, focus needs to be on the future rather than keeping a sword of uncertainty for the past dangling on potential investors. Such a decision needs political capital and ownership, which comes through strongly in this case.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SAGAR
Mains level: Paper 3- Security and growth for all in maritime domain
Context
In an innovative departure from normal practice, Prime Minister Narendra Modi will preside (in virtual mode) over the UN Security Council, on Monday (August 9) when India holds the President’s chair for one month. The subject of debate is maritime security.
Issues with global maritime security
- FON issue: There is tension in the South China Sea over freedom of navigation (FON) rights in international waters and how China has laid claim to “territoriality” based on artificial structures (not natural islands).
- This formulation has not been accepted by the US that has exercised transit rights in these waters.
- Many ASEAN nations and Quad members such as Japan, Australia and India subscribe to the principle of FON and do not accept the Chinese interpretation of the “nine-dash-line”.
- Traditional challenges: Piracy and non-traditional challenges at sea such as gun-running and smuggling are old chestnuts.
- Maritime pollution: Accidents in the oceans have added to the anxiety about marine pollution and its downstream consequences for the health of the oceans.
- Global warming: A UN report has come up with grim statistics about the impact of global warming on the chemistry of oceans.
- This study notes that oceans have become more acidic as sea water absorbs more carbon dioxide.
- Furthermore, the upper layers of the open ocean have lost between 0.5 per cent and 3.3 per cent of their oxygen since 1970 as temperatures have risen.
Way forward for India at UNCS: Security and equitable growth
- The subject to be deliberated upon by the UNSC members is “Enhancing maritime security: A case for international cooperation”.
- This would be an extension of India’s advocacy of SAGAR (security and growth for all in the region) in relation to the Indian Ocean region (IOR).
- At the UNSC strategic and security issues such as the South China Sea and FON would find little consensus as China is a permanent member and would stall any meaningful debate.
- Focus on global goods: What may find support for a useful debate at the UNSC would be those areas that could be brought under the rubric of the “global good”.
- For instance, the welfare of seafarers who are the sinews of the global merchant marine, has received scant attention in this Covid-scarred period and the IMO (International Maritime Organisation) has been unable to effectively address such issues.
- Correlation with globalisation: India can also advocate for sustained focus on the maritime domain and the correlation with globalisation, the blue economy, the health of the ocean and the overall impact on human security.
Conclusion
Security and equitable growth for all by husbanding the global ocean for future generations is a laudable goal and encouraging the UNSC to prioritise this issue is a worthy cause.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ASEAN
Mains level: Paper 3- Adoption of digital transformation
Context
COVID-19 has forced South Asia to take a quantum leap in digitalisation, which will help shape its future prosperity.
Spike in digitisation due to Covid
- In India, COVID-19 accelerated the launch of the National Digital Health Mission, enhancing the accessibility and the efficiency of health-care services by creating a unique health ID for every citizen.
- Pandemic accelerated South Asia’s embrace of e-commerce, boosted by digital payment systems.
- Bangladesh alone witnessed an increase of 70-80% in online sales in 2020, generating $708.46 million in revenues.
- Even smaller nations such as Nepal recording almost an 11% increase in broadband Internet users.
The dangers of a digital divide
- A wide digital divide persists in access and affordability, between and within the countries of South Asia.
- Despite having the world’s second-largest online market, 50% of India’s population are without Internet with 59% for Bangladesh and 65% for Pakistan.
- This divide could permanently put children out of school, place girls at risk of early marriage, and push poor children into child labour costing economies billions of dollars in future earnings.
- Businesses too have paid a heavy price for the gap in digital solutions, whereby many South Asian firms failing to embrace e-commerce or other cloud-based technologies to survive the financial chaos of the novel coronavirus pandemic.
Asian digitalisation
- Digital transformation is a global imperative with the adoption of advanced technologies.
- At the forefront of Asian digitalisation are countries such as Singapore, Japan, and South Korea recognised as global technological hubs.
- The digital boom in the Association of Southeast Asian Nations (ASEAN) economies is pushing a “common market” initiative, fostering regional economic integration and enhancing global competitiveness.
- South Asia has also made significant strides in the adoption of digital technologies such as the Digital Bangladesh Vision 2021.
How digitalisation can help South Asia?
- The region still has a long way to go.
- Jobs in e-commerce: E-commerce could drive the post-pandemic growth in South Asia, providing new business opportunities and access to larger markets.
- In India, e-commerce could create a million jobs by 2030 and be worth $200 billion by 2026.
- Growth driven by Fintech: Fintech could drive significant growth and reduce poverty by building financial inclusion.
- Increase in productivity: A timely, inclusive, and sustainable digital transformation can not only bolster productivity and growth but also serve as a panacea for some of the region’s socio-economic divides.
Steps need to be taken
- To reap the dividends of digital transformation, South Asia needs to address legal, regulatory and policy gaps as well as boost digital skills.
- Digital infrastructure: A robust digital infrastructure is a sine qua non and there exists a huge financing gap.
- India alone needs an annual investment of $35 billion to be in the top five global digital economy.
- Private-public partnership: Public-private partnership needs to be leveraged for the region’s digital infrastructure financing.
- Regulatory roadblocks need to be addressed as e-commerce regulations are weak in South Asia.
- Digital literacy: There would be no digital revolution without universal digital literacy.
- Governments and businesses need to come together to revamp the education system to meet the demand for digital skills and online platforms.
- Cybersecurity measures: The crossflow of data and personal information calls for stringent cybersecurity measures as many have experienced painful lessons in data privacy during the pandemic.
- Digital Single Market Proposal: By addressing issues such as regulatory barriers on currency flows inhibiting online payment to transport-related constraints for cross-border e-commerce activities, South Asia can emulate the European Union’s Digital Single Market Proposal.
- Collaboration: Concerted collaboration at all levels is needed to push South Asia out of stagnancy and towards a digital future of shared prosperity.
- Partnership for digital revolution: During the pandemic, South Asian nations joined hands to collectively battle the crises by contributing towards a COVID-19 emergency fund, exchanging data and information on health surveillance, sharing research findings, and developing an online learning platform for health workers.
- If the eight nations (Afghanistan, Bangladesh, Bhutan, India, Nepal, Maldives, Pakistan and Sri Lanka) can start walking the talk, partnership for a successful digital revolution is plausible.
Conclusion
A shared “digital vision” could place the region on the right track towards the Fourth Industrial Revolution.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Constitutional amendment and its types
Mains level: 127th Constitutional amendment and its features
The Government will bring the 127th Amendment Bill to Parliament to clarify “some provisions in the 102nd Constitutional amendment Bill” to restore the power of the states to identify backward classes — a demand made by a number of regional parties and even the ruling party’s own OBC leaders.
Try answering:
Q. Consider the following statements:
- An amendment to the Constitution of India can be initiated by an introduction of a bill in the Lok Sabha only.
- If such an amendment seeks to make changes in the federal character of the Constitution, the amendment also requires to be ratified by the legislature of all the States of India.
Which of the statements given above is/are correct? (CSP 2013)
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
127th Constitutional Amendment Bill
- The Constitutional 127th Amendment Bill will amend Articles 342 A — clauses 1 and 2 — and will introduce clause 342 A (3) specifically authorizing states to maintain their State List.
- There will be a consequential amendment in Articles 366(26C) and 338B (9). States will then be able to directly notify OBC and SEBCs without having to refer to the NCBC.
- There has been some confusion about what comprises a state and Central list, and this clause will clarify that.
Why need amendment?
- The Centre had earlier moved a review petition in the Supreme Court challenging the court’s interpretation of the 102nd amendment of the Constitution in the Maratha reservation judgment.
- The 102nd CA had scrapped the power of the states to identify and notify socially and educationally backward classes.
- The move is politically significant as the govt is banking heavily on OBC votes in key states that go to the polls next year.
About the 102nd CAA
- The 102nd CAA, 2018 has given constitutional status to the National Commission for Backward Classes (NCBC).
- With this, NCBC gets powers to examine the grievances in the implementation of the various welfare schemes meant for OBCs.
- The status of the Central list of OBCs has been elevated by giving constitutional status to the list.
- It has given powers to the Parliament to make changes in the Central OBC list.
Back2Basics: Constitutional Amendment
- Amending the Constitution of India is the process of making changes to the nation’s fundamental law or supreme law.
- The procedure of amendment in the constitution is laid down in Part XX (Article 368) of the Constitution of India.
- There is a limitation imposed on the amending power of the constitution of India.
- The most famous among them is the Basic structure doctrine as laid down by the Supreme Court in the case of Kesavananda Bharati v. State of Kerala (1973).
Procedure
- An amendment of the Constitution can be initiated only by the introduction of a Bill in either House of Parliament.
- The Bill must then be passed in each House by a majority of the total membership of that House and by a special majority of not less than two-thirds of the members present and voting.
- There is no provision for a joint sitting in case of disagreement between the two Houses.
- If the amendment seeks to make any change in any of the provisions mentioned in the provision to article 368, it must be ratified by the Legislatures of not less than one-half of the States.
- Although there is no prescribed time limit for ratification, it must be completed before the amending Bill is presented to the President for his assent.
Types:
- Simple majority of the Parliament: Creation of new states, Delimitation of constituencies etc.
- Special majority of the Parliament: for Fundamental rights and DPSPs
- Special majority of the Parliament and the ratification of at least half of the state legislatures: Election of the President and its manner, Supreme Court and high courts etc.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Calamity
Mains level: Disaster management
Under the existing Scheme of State Disaster Response Fund / National Response Fund of the Ministry of Home Affairs, there is no provision to declare any disaster including flood as a National Calamity.
How does the law define a disaster?
- A natural disaster includes earthquake, flood, landslide, cyclone, tsunami, urban flood, heatwave; a man-made disaster can be nuclear, biological and chemical.
- As per the Disaster Management Act, 2005, “disaster” means:
- A catastrophe, mishap, calamity or grave occurrence in any area, arising from natural or man-made causes, or
- It results in substantial loss of life or human suffering or damage to, and destruction of, property, or damage to, or degradation of, environment, and
- Damage is of such a nature or magnitude as to be beyond the coping capacity of the community of the affected area.
How can any of these be classified as a national disaster?
- There is no provision, executive or legal, to declare a natural calamity as a national calamity.
- The existing guidelines of the State Disaster Response Fund (SDRF)/ National Disaster Response Fund (NDRF), do not contemplate declaring a disaster as a National Calamity.
Has there ever been an attempt to define a national calamity?
- In 2001, the National Committee under the chairmanship of the then PM was mandated to look into the parameters that should define a national calamity.
- However, the committee did not suggest any fixed criterion.
How, then, does the government classify disasters/calamities?
- The 10th Finance Commission (1995-2000) examined a proposal that a disaster be termed “a national calamity of rarest severity” if it affects one-third of the population of a state.
- The panel did not define a “calamity of rare severity” but stated that a calamity of rare severity would necessarily have to be adjudged on a case-to-case basis taking into account.
What happens if a calamity is so declared?
- When a calamity is declared to be of “rare severity/severe nature”, support to the state government is provided at the national level.
- The Centre also considers additional assistance from the NDRF.
- A Calamity Relief Fund (CRF) is set up, with the corpus shared 3:1 between Centre and state.
- When resources in the CRF are inadequate, additional assistance is considered from the National Calamity Contingency Fund (NCCF), funded 100% by the Centre.
- Relief in repayment of loans or for grant of fresh loans to the persons affected on concessional terms, too, are considered once a calamity is declared “severe”.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Retractable Roof Polyhouse
Mains level: Not Much
The CSIR-CMERI has recently inaugurated a “naturally ventilated polyhouse facility” and laid the foundation stone of “retractable roof polyhouse”.
What is a Polyhouse?
- A polyhouse is a specially constructed structure like a building where specialized polythene sheet is used as a covering material under which crops can be grown in partially or fully controlled climatic conditions.
- It is covered with a transparent material as to permit the entry of natural light. Polyhouses are also helpful in reducing threats such as extreme heat and pest attacks in crops.
- This is especially important for crops growing in the open field with no protection from the weather, and therefore its yield, quality, and crop maturity timings are changed.
Retractable Roof Polyhouse
- The retractable roof system is a modular screen system for greenhouses that helps in saving costs and time along with providing stability, flexibility & durability for the greenhouse structure.
- Such polyhouse will have an automatic retractable roof which will be operated based on weather conditions and crop requirements from the conditional database using the software.
Advantages offered
- Ability to use the benefits of natural weather conditions
- Long life of the system and material used
- Easy assembly and installation
- Maximum insulation and complete protection from insecticides
- Easy maintenance & even easier repair work during operation
Why need such polyhouse?
- With rapidly rising temperatures due to mounting greenhouse gases in the atmosphere from human activities, crops are increasingly facing both threats — extreme heat and pest attacks — simultaneously.
- Crop losses in India due to insect pests are about 15 percent at present and this loss may increase as climate change lowers the plant defense system against insects and pests.
- Conventional greenhouses have a stationary roof to reduce the effect of weather anomalies and pests.
- However, there are still disadvantages due to roof covering which sometimes lead to excessive heat and insufficient light (early morning).
- Besides this, they are also prone to insufficient levels of carbon dioxide, transpiration, and water stress.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Abanindranath Tagore
Mains level: Not Much
Year-long celebrations marking 150 years of Abanindranath Tagore have been kicked off in Kolkata.
Abanindranath Tagore (1871-1951)
- Tagore CIE was the principal artist and creator of the “Indian Society of Oriental Art”.
- A nephew of Rabindranath Tagore and a decade younger to the poet, he helped shape modern Indian art and was the creator of the iconic ‘Bharat Mata’ painting.
- He was also the first major exponent of Swadeshi values in Indian art, thereby finding the influential Bengal school of art, which led to the development of modern Indian painting.
- He was also a noted writer, particularly for children.
- Tagore sought to modernize Mughal, Rajput styles to counter the influence of Western models of art, as taught in art schools under the British Raj.
- Along with other artists from the Bengal school of art, Tagore advocated in favor of a nationalistic Indian art derived from Indian art history, drawing inspiration from the Ajanta Caves.
Q. Which among the following event happened earliest? (CSP 2018)
(a) Swami Dayanand established Arya Samaj.
(b) Dinabandhu Mitra wrote Neeldarpan.
(c) Bankim Chandra Chattopadhyay wrote Anandmath.
(d) Satyendranath Tagore became the first India to succeed in the Indian Civil Services Examination.
Answer this PYQ in the comment box:
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SATYAM Programme
Mains level: Yoga as a therapy
The Ministry of Science & Technology (MoST) is implementing the Science and Technology of Yoga and Meditation (SATYAM) Programme to explore the effect of yoga and meditation as add on therapy to fight COVID-19.
SATYAM Programme
- The MoST is implementing SATYAM Programme since the year 2015-16 to promote scientific research in the field of yoga and meditation in order to understand its role in human wellbeing.
- Its main objective is encouraging scientists, clinicians and experienced practitioners of yoga and meditation, with a proven track record, to submit concept notes.
Themes covered:
- Investigations on the effect of Yoga and Meditation on physical and mental health and well being.
- Investigations on the effect of Yoga and Meditation on the body, brain, and mind in terms of basic processes and mechanisms.
Focus on COVID
It shall focus on three dimensions of COVID related illness:
- Mental Stress
- Respiratory
- Immune system
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