December 2022
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  

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

Discussing the Indian Economy’s pressing problems

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: India's economic growth and the problems

Economy

Context

  • Several agencies, including the IMF and the World Bank have projected lower growth rates for the Indian economy in FY23, than the 7.2 per cent estimated by the RBI in April. The Central bank has now lowered its forecast to 6.8 per cent. Given the current situation, with the Q2 FY 2023.

Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

Economy

Current economic growth estimation

  • Economy is likely to grow at 6.5-7.0 per cent: Given the current situation, with the Q2 FY 2023 GDP growth clocking in at 6.3 per cent, the economy is likely to grow at 6.5-7.0 per cent in this fiscal year.
  • Considering economic uncertainties it is difficult to arrive at precise estimate: It is difficult to arrive at a precise estimate for growth this year with unprecedented economic uncertainty worldwide, including high global inflation, synchronized monetary tightening, and the impact of the Ukraine war.

Positive signs in the Indian Economy

  • Positive medium-term growth prospects: Company and bank balance sheets are healthier, credit growth is rising, and capacity utilisation has increased, all of which augur well for investment activity.
  • Positive impact on tourism: The waning of Covid-19 should hopefully have a positive impact on travel, transport and tourism. Construction activity should pick up further with the reduction in housing inventory and almost stable prices over the last decade.
  • On inflation India is doing better: On the inflation front, India is doing better than many advanced economies and emerging markets.

Economy

What is Indian economy’s pressing problems specifically in terms of Labour-intensive growth?

  • Employment a biggest concern: Employment, an issue that has persisted over the last two decades. In brief, we have not generated enough good jobs to match the scale at which the economy has grown, especially in the organised sector. As a result, we have very high under-employment and poor-quality employment, which have hampered a much-needed move away from agriculture.
  • Lack of precise data on people living in poverty: We do not have a precise estimate of the current levels of poverty, as there has been no household consumption survey since 2011-12, and the 2017-18 survey was abandoned due to technical issues. But there is reasonable consensus that poverty could be around 10 per cent of the country’s population, A low number compared to the past, but as many as 140 million people could still be living in poverty.
  • Lack of non-agricultural jobs: The rising demand for the MGNREGA, and the importance of food distribution schemes and other welfare programmes for the poor are indicators of the lack of non-agriculture jobs being generated.
  • Lowest rate of women participation in labour force: An alarming aspect of the employment problem in India is the low participation rate of women in the labour force, which is among the lowest in the world. This loops back to the importance of labour-intensive manufacturing. For example, much of Bangladesh’s success, and that of Southeast Asian countries, in exports and manufacturing stems from the large number of women working in their factories.
  • Women literacy is rising but increasing number of educated women are not working: A positive trend in India has been the growing trend in girls attending schools and college in the last 20 years, but this also means that an increasing number of educated women are not working.
  • Despite of 1991 reforms still remains an untapped opportunity: With the LPG reforms, the expectation was that, as the economy opened up to global competition, India’s low wage levels would attract private investment into labour-intensive manufacturing, thus generating jobs. This was the path followed by the East Asian economies that experienced high growth and rapid development. But for India this remains an untapped opportunity.
  • Manufacturing is shifting to countries other than India: Even with rising wage levels in China, manufacturing is shifting to countries other than India. The PLI (production-linked incentives) scheme has been rolled out to encourage manufacturing. It may need some tweaking to be biased towards labour-intensive manufacturing as China vacates space in this area. This may seem at odds with the more popular view that it is small and medium enterprises which promote employment.
  • Country’s real exchange rate is not healthy: An overvalued rupee has discouraged the export of labour-intensive manufacturing goods, which are very price-sensitive in global markets. It has also had a dampening effect on domestic production as our currency has depreciated at a lower rate than other emerging economies like China and Indonesia.
  • Depreciated rupee impacting domestic producers by inflow of cheaper imports: Domestic producers of goods that compete with imports into our markets have been impacted by the inflow of cheaper imports. This has disincentivised them from expanding production and generating employment.
  • Micro, small and medium enterprises (MSMEs) are severally hit: Problems that have come to the fore post-pandemic include the health of micro, small and medium enterprises (MSMEs). Accurate information on this is somewhat scarce but anecdotal evidence suggests that they have been more severely hit than the formal sector.

Economy

Way ahead

  • The rupee has been overvalued for long and needs to be allowed to depreciate, though in a calibrated way, ensuring external and financial stability.
  • Job growth is crucial if we are to reduce the still high levels of poverty in the country
  • Incentivizing the domestic producers so that they can compete with the cheaper inflow of imports and expands their manufacturing thereby generating employment in the economy
  • The continued recovery of the formal sector, as indicated by various metrics, in terms of the improved health of corporates and banks should effectively pull up the MSMEs through supply chains linkages, among others.
  • We still have a negative real interest rate (that is, the difference between the RBI’s policy rate and inflation). Hence, the policy rate needs to rise further, providing a push to financial savings, which are needed to generate higher investment for growth.
  • Inflation need to be contained through supply-side measures as well, such as an improvement in the supply of food products.

Conclusion

  • High under-employment and poor-quality employment have hampered a much-needed move away from agriculture. A focus on labour-intensive formal manufacturing is the need of the hour.

Mains Question

Q. India is showing positive signs of economic recovery however the economy still has a hangover from the past and some are exacerbated by Covid. Discuss.

(Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Tourism Sector

Need for an effective Tourist Police

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Tourist Police

Mains level: Tourism in India and Safety of tourists

Tourist

Context

  • Crimes against tourists and other foreign nationals appear to be on the rise in India. Consider several recent cases, and the lessons they suggest.

Some of the recent cases of crime against tourists

  • A case of rape and murder in Kerala: A few days ago, a Kerala session court sentenced two men to life imprisonment for the rape and murder of a Latvian tourist in 2018.
  • A case of a rape of a girl child in Goa: A 12-year-old Russian girl was raped in a hotel in Goa on April 6 this year. The rapist was an employee of the hotel in which the girl was staying with her mother.
  • A case extortion in Gurugram: An Iraqi couple staying at a hotel in Gurugram for the treatment of the husband in the Medanta hospital was accosted by two miscreants posing as policemen on October 23. They accused the couple of carrying drugs and on the pretext of checking their wallets, fled with $15,000 the couple had saved for the treatment.
  • A case of sexual misconduct in Delhi: On September 2, a British woman lawyer lodged a complaint of sexual misconduct against a cab driver who was ferrying her from the airport to her hotel in South Delhi. The incident traumatized her to the extent that she left for the U.K. within two days of her arrival.

Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

Status of Crimes against foreigners

  • Drastic decline in cases of crimes against foreigners in Delhi: According to data of the National Crime Records Bureau (NCRB), Delhi recorded 27 cases of crime against foreigners last year, a drastic decline from 62 cases reported in 2020 and 123 in 2019.
  • Sharp reduction Rajasthan: Rajasthan has shown a sharp reduction in registration of crimes from 16 in 2019 to just 4 in 2020 and two cases last year, which could be attributed to the sharp decline in tourist arrivals due to COVID-19.
  • Though there is a decline in cases but the data is still shameful and to be studied: As many as 29 foreigners were murdered in the last three years. While 14 foreigners fell victim to rape last year, 16 were raped in 2020 and 12 in 2019. As many as 15 cases of assault to outraging modesty of foreign women were registered last year across the country, apart from 14 complaints of cheating. While 142 cases of theft were lodged by foreigners in 2019, it declined to 52 in 2020 and further dipped to 23 in 2021.
  • Women are more prone and most cases go unreported: Women are more prone to sexual attacks by criminals on the prowl in tourist destinations. For every crime committed against foreigners, there would be several others that go unreported for multifarious reasons, with one of them being the fear instilled in them by the threats of these criminals. In the South Delhi incident, the British national was reluctant to lodge a formal complaint out of fear

Tourist

How do such cases of crimes against tourists tarnish our image?

  • Not only dents our image but also impacts on tourism: Crime against foreigners not only dents our image globally but could also adversely affect the inflow of foreign tourists, which is a vital source of income for our country.
  • It impacts Tourism sector which is one of the significant sources of FOREX: Tourism happens to be one of the biggest foreign exchange earners for India. Such cases may leave tourists moral down and they may lose sense of security.

What is Tourist police scheme and what steps can be taken to ensure security of the Tourists?

  • Booklet on the tourist police scheme and tourist police stations: The Bureau of Police Research and Development (BPRD) has brought out a booklet on the tourist police scheme detailing the mode of setting up of tourist police stations and control rooms, outposts, uniforms, recruitment, qualifications, training and logistics requirements for tourist police stations.
  • Identified tourist spots: As many as 25 popular tourist spots have been identified in the country where the tourist police necessarily need to be deployed to help foreigners. As an incentive, 30% deputation allowance has been recommended for the police personnel who joins the tourist police on deputation.
  • Identified Criminals in and around tourists’ spots need to be kept on constant surveillance: While the setting up of tourist police stations is a commendable step to provide safety to foreigners, much needs to be done to instil a sense of security in them even before they leave their countries for India. With theft being the most common crime committed against foreigners, all criminals in and around tourist spots need to be identified and kept under constant surveillance.
  • Fast track courts should be set immediately to try cases of crimes against tourists: Since foreigners come for short durations, the cases cannot be allowed to linger on in courts for long. Fast track courts should be set up immediately to try cases of crime against foreigners and the culprits punished speedily. It may be recalled that a rape convict, Bitihotra Mohanty, was tried for raping a German national in Alwar (Rajasthan) on March 21, 2006 and he was sentenced to seven years imprisonment on April 12, that is, within 22 days.

Tourist

A positive step by Ministry of Tourism

  • For the effective implementation of Tourism police scheme: In order to provide a safe environment for tourists, the Ministry of Tourism, in collaboration with the Bureau of Police Research and Development (BPRD), organised a conference in New Delhi on October 19, 2022. It was organised with a view to “sensitise the specific requirements of the tourists for effective implementation of Uniform Tourist Police Scheme at pan-India level”.
  • States that have tourist police: Though the concept of ‘tourist police’ has been in vogue for the past few years, it has not been given the kind of attention it deserves. The States that have tourist police are Uttar Pradesh, Madhya Pradesh, Delhi, Goa, Rajasthan and Kerala.
  • Delhi a neglected state is gearing up for tourist police wing: In view of the forthcoming G20 Summit, the Delhi police is gearing up its tourist police wing, which was hitherto in a neglected state and so are other States which will see a huge influx of foreigners.

Conclusion

  • With optimistic predictions of about 13.34 million foreign tourists arriving by 2024, there is a pressing need to upgrade our security systems specially to provide a flawless security blanket cover to foreign tourists. Safety assumes utmost importance to draw tourists in hordes.

Mains question

Q. What is tourist police scheme? Why it is necessary to have such a tourist security wing in India? What more steps can be taken to ensure the security of tourist in India?

(Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Foreign Policy Watch: India-SAARC Nations

SAARC vs BIMSTEC

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SAARC, BIMSTEC and regional organisations

Mains level: Bilateralism, regionalism and India's approach towards SAARC and BIMSTEC

SAARC

Context

  • December 8 is commemorated as SAARC Charter Day. It was on this day, 37 years ago, that the South Asian Association for Regional Cooperation (SAARC), an intergovernmental organization, was established.

Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

What is SAARC?

  • Establishment: The South Asian Association for Regional Cooperation (SAARC) was established with the signing of the SAARC Charter in Dhaka on 8 December 1985.
  • Members: It is an intergovernmental organization, was established by Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka Afghanistan acceded to SAARC later.
  • Secretariat: The Secretariat of the Association was set up in Kathmandu on 17 January 1987.
  • Objectives: The objectives as outlined in the SAARC Charter are, to promote the welfare of the peoples of South Asia and to improve their quality of life; to accelerate economic growth, social progress and cultural development in the region and to provide all individuals the opportunity to live in dignity and to realize their full potentials; to promote and strengthen collective self-reliance among the countries of south Asia.

What SAARC has achieved?

  • SAARC has failed abjectly in accomplishing most of its objectives.
  • South Asia continues to be an extremely poor and least integrated region in the world.
  • The intraregional trade and investment in South Asia are very low when compared to other regions such as the Association of South East Asian Nations (ASEAN) and Sub-Saharan Africa.
  • Pakistan has adopted an obstructionist attitude within SAARC by repeatedly blocking several vital initiatives such as the motor vehicles agreement, aimed at bolstering regional connectivity.
  • Deepening hostility between India and Pakistan has made matters worse. Since 2014, no SAARC summit has taken place leaving the organisation rudderless, and practically dead.

SAARC

But why to bother about SAARC?

  • South Asia is important for India’s national interest: Because South Asia, that is India’s neighbourhood, is important for India’s national interests. This is best captured in the current government’s ‘neighbourhood first’ policy.
  • SAARC, a pan south Asia reach: SAARC is the only intergovernmental organisation with a pan-South Asia reach. India can judiciously employ it to serve its interests in the entire region.
  • Weakened SAARC means heightened instability: A weakened SAARC also means heightened instability in other promising regional institutions such as the South Asian University (SAU), which is critical to buttressing India’s soft power in the region.

Bilateralism or regionalism, which one is best for India?

  • Bilateralism can complement, not substitute regional efforts: A new narrative is that in South Asia, India can successfully use the instrument of bilateralism over regionalism to pursue its interests. While bilateralism is undoubtedly important, it can at best complement, not substitute, regional or multilateral efforts.
  • Regionalism in East Asia and Africa: Regionalism has brought immense success in other parts such as East Asia and Africa. Regionalism can deliver prosperity in the South Asian region too, especially because multilateralism is weakening.
  • concept of new regional economic order: Looking at ASEAN’s spectacular success in regional integration, international lawyers Julien Chaisse and Pasha L. Hsieh have developed the concept of a new regional economic order, a process through which developing countries search for a trade-development model, based on incrementalism and flexibility; this is different from the neoliberal model laid down by the Washington Consensus.

SAARC

What is BIMSTEC?

  • Regional organization of seven members lying in or adjacent to BOB: The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is a regional organization comprising seven Member States lying in the littoral and adjacent areas of the Bay of Bengal constituting a contiguous regional unity.
  • Establishment: This sub-regional organization came into being on 6 June 1997 through the Bangkok Declaration.
  • Act as a bridge between South and South East Asia: The regional group constitutes a bridge between South and South East Asia and represents a reinforcement of relations among these countries.
  • Provides Inter regional cooperation platforms: BIMSTEC has also established a platform for intra-regional cooperation between SAARC and ASEAN members.

Did you Know?

  • BIMSTEC comprises five South Asian nations (Bangladesh, Bhutan, Nepal, India and Sri Lanka) and two ASEAN countries (Myanmar and Thailand).
  • Pakistan is NOT a BIMSTEC member.

Importance of BIMSTEC for India

  • India shifted its diplomatic energy from SAARC to BIMSTEC: In recent years, India seems to have moved its diplomatic energy away from SAARC to BIMSTEC. This resulted in BIMSTEC, after 25 years, finally adopting its Charter earlier this year.
  • BIMSTEC is better than SAAC charter: The BIMSTEC Charter is significantly better than the SAARC Charter. For instance, unlike the SAARC Charter, Article 6 of the BIMSTEC Charter talks about the ‘Admission of new members’ to the group. This paves the way for the admission of countries such as the Maldives.
  • However no flexible formula like ‘ASEAN Minus X’: Notwithstanding the improvements, the BIMSTEC Charter, to boost economic integration, does not contain the flexible participation scheme of the kind present in the ASEAN Charter. This flexible scheme, also known as the ‘ASEAN Minus X’ formula, allows two or more ASEAN members to initiate negotiations for economic commitments. Thus, no country enjoys veto power to thwart economic integration between willing countries.
  • Obstructionist attitude of Pakistan within SAARC: Given the experience of SAARC, where Pakistan routinely vetoes several regional integration initiatives, it is surprising that BIMSTEC does not contain such a flexible participation scheme. A flexible ‘BIMSTEC Minus X’ formula might have allowed India and Bangladesh or India and Thailand to conduct their ongoing bilateral free trade agreement (FTA) negotiations under the broader BIMSTEC umbrella. This would have eventually strengthened BIMSTEC by enabling the gradual and incremental expansion of these binding commitments to other members. India should press for this amendment in the BIMSTEC Charter.

Some steps to take

  • BIMSTEC should not end up as another SAARC: For this, its member countries should raise the stakes. A high-quality FTA offering deep economic integration, something that Prime Minister Narendra Modi also advocated at the last BIMSTEC ministerial meeting would be an ideal step.
  • India should try make the organizations flexible to ensure peace and prosperity in the region: Likewise, India should explore legal ways to move successful SAARC institutions such as SAU to BIMSTEC. These steps will give stronger roots to BIMSTEC and enable erecting a new South Asian regional order based on incrementalism and flexibility, ushering in prosperity and peace in the region.

Conclusion

  • Since South Asia cannot repudiate regionalism, reviving SAARC by infusing political energy into it and updating its dated Charter will be an ideal way forward. However, in the current scenario, this is too idealistic. So, the next best scenario is to look at other regional instruments such as the Bay of Bengal Initiative for Multi-Sectoral, Technical and Economic Cooperation (BIMSTEC).

Mains Question

Q. India seems to have shifted its diplomatic energies away from SAARC to BIMSTEC in recent years. What are the reasons for doing so?

(Click) FREE1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Judicial Appointments Conundrum Post-NJAC Verdict

Why is Parliament silent on Voiding of NJAC: Vice-President

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Collegium system, NJAC

Mains level: Judicial appointment opacity issue

njac

VP asked the two Houses for not taking cognizance, over the last seven years, of the 2015 Supreme Court judgment setting aside the Constitutional amendment to constitute the National Judicial Appointment Commission (NJAC).

Background

  • Since few days, Judiciary and Executive are at loggerheads.
  • VP pointed out that the amendment had been passed with unprecedented support by both Houses and approval from 16 State Assemblies.
  • However, on October 16, 2015, the Supreme Court ruled that it was not in consonance with the basic structure of the Constitution, and scrapped the legislation.

What was NJAC?

  • The NJAC was a body which was proposed to make appointments of Chief Justices, Supreme Court judges, and High Court judges in a more transparent manner as compared to the existing collegium system.
  • It sought to replace the Collegium System.
  • It was proposed via the National Judicial Appointments Commission Bill, 2014.
  • The bill was passed by both the houses; Lok Sabha and Rajya Sabha, and also received the President’s assent.
  • The commission was established by the 99th Constitutional Amendment Act, 2014.
  • The Act proposed that the members of NJAC would be composed of members from the legislative, judicial, and civil society.

Composition of NJAC

  • Chief Justice of India would be the Chairman of the NJAC
  • Two senior-most judges of the Supreme Court
  • The Law and Justice Minister
  • Two eminent persons would be selected by a committee which would be composed of the Prime Minister, the Chief Justice of India and the Leader of Opposition

Why was the NJAC Act struck down?

  • The five-judge SC bench struck down the NJAC Act along with the 99th Constitutional Amendment Act in a 4:1 ratio.
  • It was repealed by a five-judge bench, famously known as the Fourth Judges Case, 2015.
  • It was termed ‘unconstitutional’ and was struck down, citing it as having affected the independence of the judiciary.

Benefits of the NJAC Act

Justice Chelameshwar praised the NJAC Act because-

  • Transparent process: It involved a smooth and transparent process for the appointment of judges.
  • Brings checks and balances: the exclusion of checks and balances principle leads to the destruction of the basic structure of the Constitution.
  • Seeks balance of power: In a democratic setup, the executive cannot be completely excluded.
  • Global examples: In the dissent order, an example of the United States of America was given, where the head of the Executive is conferred with the power to appoint the judges.

Issues with collegium system

  • Alleged favouritism: The collegium system does not provide any guidelines or criteria for the appointment of the Supreme Court judges and it increases the ambit of favouritism.
  • Ambiguous process: The absence of an administrative body is also a reason for worry because it means that the members of the collegium system are not answerable for the selection of any of the judges.
  • Isolating the executive: The check and balance principle is necessary because it ensures that no organ of democracy is exercising its power in an excessive manner.
  • Extra-constitutional nature: The collegium system tells us that even though the collegium system is not mentioned anywhere in the Constitution, rather it has evolved over a period of time from different landmark cases.
  • Lack of transparency: Nepotism has been often witnessed in the judiciary due to a lack of criteria for the appointment of judges.

What can we, as aspirants, observe here?

  • After analyzing both NJAC and the collegium system, it can be inferred that neither of the methods is complete and both lack certain aspects.
  • Many former judges and legal experts are supporting the NJAC.
  • However, legal jurists are divided on NJAC, with some supporting it while others calling for amendments to the Act.
  • It is quite evident that neither the collegium system nor the NJAC is accurate; both have some shortcomings.

Way forward

  • NJAC needs to be amended to keep the judiciary independent.
  • According to Justice Deepak Gupta, retired senior civil servants need to be inducted into the body appointing judges.
  • The Supreme Court needs to lay down certain guidelines for appointing judges and those guidelines should be strictly followed and codified.
  • Apart from that, all the notifications should be issued in the public domain to make the process more transparent.

 

Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Bill to amend Multi-State Cooperative Societies Act introduced in LS

Note4Students

From UPSC perspective, the following things are important :

Prelims level: MSCS Act, 2002

Mains level: Cooperatives in India

The Multi-State Cooperative Societies (Amendment) Bill, 2022, aimed at bringing in transparency in the sector, was introduced in the Lok Sabha.

What is MSCS Act, 2002?

  • Cooperatives are a state subject, but there are many societies such as those for sugar and milk, banks, milk unions etc. whose members and areas of operation are spread across more than one state.
  • The MSCS Act was passed to govern such cooperatives.
  • For example, most sugar mills along the districts on the Karnataka-Maharashtra border procure cane from both states.

What are Multi-State Cooperatives?

  • They draw their membership from two or more states, and they are thus registered under the MSCS Act.
  • Their board of directors has representation from all states they operate in.
  • Administrative and financial control of these societies is with the central registrar, with the law making it clear that no state government official can wield any control on them.

Why does the government plan to amend the Act?

(1) Issues with Central Registrar

  • The exclusive control of the central registrar, who is also the Central Cooperative Commissioner, was meant to allow smooth functioning of these societies.
  • The central Act cushions them from the interference of state authorities so that these societies are able to function in multiple states.
  • What was supposed to facilitate smooth functioning, however, has created obstacles.
  • For state-registered societies, financial and administrative control rests with state registrars who exercise it through district- and tehsil-level officers.

(2) Multiple checks and balances

  • Thus if a sugar mill wishes to buy new machinery or go for expansion, they would first have to take permission from the sugar commissioner for both.
  • Post this, the proposal would go to the state-level committee that would float tenders and carry out the process.
  • While the system for state-registered societies includes checks and balances at multiple layers to ensure transparency in the process, these layers do not exist in the case of multistate societies.
  • Instead, the board of directors has control of all finances and administration.

(3) Lack of govt control

  • There is an apparent lack of day-to-day government control on such societies.
  • Unlike state cooperatives, which have to submit multiple reports to the state registrar, multistate cooperatives need not.
  • The central registrar can only allow inspection of the societies under special conditions — a written request by one-third of the members of the board.
  • Inspections can happen only after prior intimation to societies.

(4) Lack of infrastructure

  • The on-ground infrastructure for central registrar is thin — there are no officers or offices at state level, with most work being carried out either online or through correspondence.
  • For members of the societies, the only office where they can seek justice is in Delhi, with state authorities expressing their inability to do anything.

(5) Ponzi schemes functioning as MCS

  • There have been instances across the country when credit societies have launched ponzi schemes taking advantage of these loopholes.
  • Such schemes mostly target small and medium holders with the lure of high returns.
  • Fly-by-night operators get people to invest and, after a few instalments, wind up their operations.

Need for Amendment

  • At present, India has more than 1,500 multi-State cooperative societies.
  • The Bill seeks to strengthen governance, reform the electoral process, improve the monitoring mechanism, and ensure ease of doing business in multi-State cooperative societies.
  • It also aims to improve the composition of boards and ensure financial discipline, besides enabling the raising of funds in multi-State cooperative societies.

Key establishments under the Amendment Bill

  • In order to make the governance of multi-State cooperative societies more democratic, transparent and accountable, the Bill has provisions for setting up of –
  1. Cooperative Election Authority,
  2. Cooperative Information Officer and
  3. Cooperative Ombudsman.

Other features

  • Constitution of interim board: The Bill allows the central registrar to declare any multi-state cooperative society as sick. The Central government may, on the recommendation of the registrar, appoint an interim board for a maximum of five years. The central registrar can also declare a cooperative to be viable within the five years. The board of directors before the cooperative was declared sick shall be reinstated.
  • Elections: The Act states that elections shall be conducted by the existing board. The Bill amends this to state that the Central government may appoint a Cooperative Election Authority to conduct elections in cooperative societies to be prescribed.
  • Constitution of Fund: The Bill states that the central government shall set up the Cooperative Rehabilitation and Reconstruction Fund. A cooperative society shall credit 0.005% to 0.1% of its turnover to the fund, provided it does not exceed Rs 3crores per year.

 

 

Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Electoral Reforms In India

Who exactly counts your Vote after polling?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Vote counts

Mains level: Not Much

For a country like India where each individual constituency can have lakhs of voters, counting votes is a complex process that requires both pace and precision.

Where are the Votes counted?

  • Ideally, all votes should be counted in one location in the constituency.
  • However, during General Elections, when seats are larger with multiple Assembly constituencies, many counting centres can be appointed, depending on the number of votes that need to be counted.
  • The location(s) for counting votes is decided by the Returning Officer (RO), with multiple centres in assembly segments being under the supervision of the Assistant Returning Officers (ARO).
  • In counting centres, ideally all votes are counted in one big hall having multiple tables.
  • However, if the RO feels there is a risk of overcrowding, more rooms may be opened up after permission from the Election Commission (EC).

Role of Returning Officer

  • The RO is appointed for each constituency by the Election Commission.
  • During the duration of the election, the RO is the highest authority in the constituency having a wide range of powers in order to peacefully and impartially conduct elections.
  • With respect to counting of votes, the RO has the following duties:
  1. To designate the counting centres and get them approved by the Commission well in advance;
  2. To send notice to the candidates about the place, date and time of counting of votes;
  3. To appoint and train counting staff;
  4. To count the votes and declare the result.
  • ROs themselves do not count all votes but verify the counting at multiple stages and announce the results.
  • They are the final authority in the matter of vote counting in an election.

Supervision of the process

  • A counting room will have multiple counting tables with each counting a set number of postal ballots/EVMs on a round-to-round basis.
  • On each table, there is a counting supervisor and up to two assistants who do the actual counting.
  • They should be gazetted officers and are appointed by the RO.
  • They receive specific training pertaining to the tasks they are expected to undertake.
  • For instance, for those counting postal ballots, the training is different from that received for counting EVM votes.

Observers in the counting process

  • The EC appoints observers at each counting room, who are supposed to record the proceedings and file a report.
  • They are generally employees of the GoI, and are tasked with the duty to oversee overall functioning of the election apparatus.
  • Candidates who were on the ballot are also allowed in the counting room along with their representatives.
  • All parties and candidates send counting agents in order to ensure that votes are counted fairly and according to procedure, and lodge complaints, if any.

 

Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

ISRO Missions and Discoveries

ISRO to establish SpaceTech Innovation Network (SpIN)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: SpaceTech Innovation Network (SpIN)

Mains level: Commercial space activities in India

spin

The Indian Space Research Organisation (ISRO) has signed a MoU with Social Alpha, a multistage innovation curation and venture development platform, to launch SpaceTech Innovation Network (SpIN).

SpaceTech Innovation Network (SpIN)

  • SpIN is India’s first dedicated platform for innovation, curation, and venture development for the burgeoning space entrepreneurial ecosystem.
  • SpIN will primarily focus on facilitating space tech entrepreneurs in three distinct innovation categories:
  1. Geospatial Technologies and Downstream Applications;
  2. Enabling Technologies for Space & Mobility; and
  3. Aerospace Materials, Sensors, and Avionics.

Key initiative

  • SpIN has launched its first innovation challenge for developing solutions in areas of maritime and land transportation, urbanization, mapping, and surveying.
  • The selected start-ups and innovators will be able to access both Social Alpha’s and ISRO’s infrastructure and resources as per the prevailing guidelines.
  • They will be provided active hand-holding in critical areas, including access to product design, testing and validation infrastructure, and intellectual property management.

 

Click and get your FREE Copy of CURRENT AFFAIRS Micro Notes

(Click) FREE 1-to-1 on-call Mentorship by IAS-IPS officers | Discuss doubts, strategy, sources, and more

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

JOIN THE COMMUNITY

Join us across Social Media platforms.

💥Mentorship New Batch Launch
💥Mentorship New Batch Launch