Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Russia-Ukraine war, global implications , Food and energy cisis
Central Idea
- To be sure, the Ukraine-Russia conflict has thrown the energy markets into a crisis in several Global South nations. In addition, the supply cuts by edible-oil exporting countries, alongside the rise in fuel prices, have led to a surge in food prices, making food security a primary concern, especially for the vulnerable sections of society. In addition, China’s COVID-19 surge has dampened global economy, especially in BoB.
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How the South Asian neighbourhood is in flux?
- Sri Lanka and Pakistan: Sri Lanka and Pakistan are facing economic headwinds, with the former having gone through a full-blown economic collapse and the latter facing huge external debts, power shortages, and extreme inflation.
- Bangladesh: The IMF sanctioned a precautionary loan of US $4.7 billion to Bangladesh amidst the precarious macroeconomic situation in the country, with high inflation and volatility of the Bangladeshi Taka.
- Myanmar: A post-coup Myanmar sees a shutdown of businesses and a massive spike in unemployment.
- Nepal: Nepal, too, sees widening trade deficits and declining foreign exchange reserves.
How Russia-Ukraine war challenges Food security?
- Russia-Ukraine war and the resulting food crisis: Ukraine and Russia play a significant role in the global food supply chains, further affecting low- and middle-income countries and vulnerable populations already grappling with hunger in the post-pandemic world.
- Wheat suppliers: Since both countries exported more than one-third of the world’s wheat and barley, and about 70 percent of sunflower oil, governments around the world were severely hit as the war stopped exports of around 20 million tons of Ukrainian grain.
- Agricultural commodities exports to Asia have dried up: An estimated 6 million tons of agricultural commodities were exported monthly to Asia, Africa, and the Middle East. As of June 2022, this number had dried up to a fifth of its original value.
- Ripple effects on food prices and availability: According to the United Nations’ (UN) Food and Agriculture Organization (FAO), global food prices have risen by 20 percent. It further predicts a rise in the undernourished population to be between 7.6 to 13.1 million, because of the conflict situation and its ripple effects on food prices and availability.
Sri Lanka: A case of Food security crisis
- The economic meltdown in Sri Lanka wreaked havoc on the food security of the local population.
- For Sri Lanka, the sudden switch to organic farming in 2021 worsened its trade performance in the agricultural sector.
- The island nation had to import sugar, rice, and various other commodities, including intermediate goods in which the economy had had a previous surplus.
- By 2022, the tea industry, which was a major commodity of exchange, incurred losses of approximately US $425 million, further worsening the economy’s foreign exchange situation.
Energy crisis
- Heavy on energy imports: The data analysis on energy imports shows that all the countries in Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC), especially India, Myanmar, and Bhutan, rely heavily on energy imports.
- Fuel dependency makes the region highly vulnerable to external shocks: The trade dependency on fuel is a major curse for the region, making it highly vulnerable to exogenous macroeconomic shocks. The Russia-Ukraine conflict underscores the importance of nations having self-reliance regarding energy.
- Absence of infrastructure and synchronisation in BIMSTEC Grid plan: Despite the BIMSTEC countries having developed a ‘Plan of Action for Energy Cooperation in BIMSTEC’ and also signed a MoU for the establishment of the BIMSTEC Grid Interconnection in August 2018, the absence of required infrastructure and adaptive power market, the lack of synchronisation of the grid system, the lack of financial policies, and other related issues have made progress in energy cooperation slow among the countries in the region.
- Unable to set in motion the transition to renewable energy, alongside heavy dependence on fuel imports, Bangladesh, especially, has been placed in a tough spot concerning energy security.
- The Russia-Ukraine conflict has added more fuel to this fire. With energy prices climbing upwards and subsidy bills increasing, the fiscal balances and current account deficits have been worrisome for Bangladesh’s economy.
- The government had to finally put in place some austerity measures. The domestic prices of diesel, kerosene, octane, and petrol were increased to achieve price parity with its neighbours such as India, China, and Nepal.
Way ahead
- Safeguard against food security crisis: It becomes imperative for regional groupings to set up safeguards against crises where their food security is affected by geopolitical events and domestic macroeconomic threats.
- Food Bank for BIMSTEC: The idea of a food bank for the BIMSTEC countries modelled on the Association of Southeast Nations (ASEAN) Food Bank is a good start as it will aid in stabilising prices.
- India urged to develop regional strategy and promoting millets: Recently, in November 2022, India hosted the second Agriculture Ministerial-level meeting of the BIMSTEC nations, where it urged the member countries to develop a regional strategy for transforming agriculture and promoting millets into the food systems.
- Millets have potential to ameliorate food insecurity: Promotion and intra-regional trade of food items such as millets, where these countries have surplus production, can help ameliorate food insecurity to a large extent.
- Self-reliance in energy: Overdependence on fuel will make the region more vulnerable and affect its financial stability. Therefore, developing a domestic energy market is critical for the region. This can be achieved by accelerating the green transition.
- For instance: FDI from Japanese firms has constantly seen more impacts and spillovers in the Indian economy. If Japanese firms’ economies of scale and their potential in developing different green energy technologies could be fully utilised, it would reduce the regional dependence on China, which is currently the dominant player in the domain of solar energy.
Conclusion
- Regional economies have huge potential to invest in research for green transition technologies and sustainable agriculture which can help them have self-reliant energy and food markets respectively. Led by India, the Bay of Bengal region can lead the way in innovations in renewable forms of energy such as solar and wind.
Mains Question
Q. The South Asian neighbourhood is in flux. Discuss the major challenges and suggest a way ahead.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ransomware, Recent events of Cyberattacks and malwares
Mains level: Cyberattacks, cyber security infrastructure. Read the attached article
Central Idea
- The past few weeks have highlighted the soft underbelly of our fast-expanding digital networks. Ransomwares have emerged as the most predominant of malicious cyberattacks. Here, the perpetrators demand hefty payments for the release of withheld data. Data show that over 75% of Indian organisations have faced such attacks, with each breach costing an average of ₹35 crore of damage.
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Two recent ransomware attacks
- Ransomware attack on AIIMS: The first was the ransomware attack on the servers of India’s premium institute, the All-India Institute of Medical Sciences. Nearly 40 million health records were compromised and it took over two weeks for the systems to be brought online.
- BlackCat breached Solar Industries Ltd.: Soon afterwards, a ransomware gang, BlackCat, breached the parent company of Solar Industries Limited, one of the Ministry of Defence’s ammunition and explosives manufacturers, and extracted over 2 Terabyte of data.
What is mean by Cyber-attack?
- Cyberattacks are unwelcome attempts to steal, expose, alter, disable or destroy information through unauthorized access to computer systems.
- These attacks can target various entities such as governments, businesses, organizations, or individuals, and can have serious consequences such as theft of sensitive information, financial loss, reputational damage, or disruption of critical services.
Who is behind cyberattacks?
- Criminal organizations, state actors and private persons can launch cyberattacks against enterprises. One way to classify cyberattack risks is by outsider versus insider threats.
- Outsider threats: External cyber threats include; Organized criminals or criminal groups Professional hackers, like state-sponsored actors, Amateur hackers, like hacktivists
- Insider threats: Insider threats are users who have authorized and legitimate access to a company’s assets and abuse them either deliberately or accidentally. They include, Employees careless of security policies and procedures, Disgruntled current or former employees, Business partners, clients, contractors or suppliers with system access
Growing vulnerability
- There are malwares that could infect all kinds of computer systems: With the lines between the physical and digital realms blurring rapidly, every critical infrastructure, from transportation, power and banking systems, would become extremely vulnerable to the assaults from hostile state and non-state actors.
- For instance; Cyber capabilities are also playing a pivotal role: As seen in the ongoing conflict in Ukraine, where electronic systems in warheads, radars and communication devices have reportedly been rendered ineffective using hacking and GPS jamming.
- Cyber security breaches would only increase: With the introduction of 5G and the arrival of quantum computing, the potency of malicious software, and avenues for digital security breaches would only increase.
- For instance: This year, cybercrimes are expected to cause damage worth an estimated $8 trillion worldwide.
- CERT-In: In 2022, the Indian Computer Emergency Response Team (CERT-In), which is India’s cybersecurity agency, introduced a set of guidelines for organisations to comply with when connected to the digital realm. This included the mandatory obligation to report cyberattack incidents within hours of identifying them, and designating a pointsperson with domain knowledge to interact with CERT-In.
- Draft Digital Personal Protection Bill, 2022: India’s draft Digital Personal Protection Bill 2022 proposes a penalty of up to ₹500 crore for data breaches.
- Defence Cyber Agency (DCyA): Recently, India’s armed forces created a Defence Cyber Agency, capable of offensive and defensive manoeuvres. All Indian States have their own cyber command and control centres.
- Cybercrime Co-ordination centre: The Indian Cybercrime Co-ordination Centre (I4C) established by the Ministry of Home Affairs, acts as a nodal point in the response against cybercrime by coordinating with state police forces across the country. It also co-ordinates the implementation of mutual legal assistance treaties (MLAT) with other countries.
Have you heard about “Bluebugging”?
- It is a form of hacking that lets attackers access a device through its discoverable Bluetooth connection.
- Once a device or phone is blue-bugged, a hacker can listen to the calls, read and send messages and steal and modify contacts.
- It started out as a threat for laptops with Bluetooth capability. Later hackers used the technique to target mobile phones and other devices.
Limitations In India’s cybersecurity infrastructure
- Lack of tools to identify: Most organisations lack the tools to identify cyberattacks, let alone prevent them.
- Scarcity of cybersecurity professional: India also faces an acute scarcity of cybersecurity professionals. India is projected to have a total workforce of around 3,00,000 people in this sector in contrast to the 1.2 million people in the United States.
- Private sector participation is limited: Most of our organizations are in the private sector, and their participation remains limited in India’s cybersecurity structures.
Global understanding is essential
- International cooperation is critical: With most cyberattacks originating from beyond our borders, international cooperation would be critical to keep our digital space secure. It would also be a cause which would find resonance abroad.
- Cybersecurity treaties: India has already signed cybersecurity treaties, where the countries include the United States, Russia, the United Kingdom, South Korea and the European Union.
- Multinational frameworks are there but there is no truly global framework: Even in multinational frameworks such as the Quad and the I2U2 (which India is a member of) there are efforts to enhance cooperation in cyber incident responses, technology collaboration, capacity building, and in the improvement of cyber resilience. Yet, there is no truly global framework, with many operating in silos.
- UNGA established two processes on ICT: The United Nations General Assembly establish two processes on the issues of security in the information and communication technologies (ICT) environment.
- The Open-ended Working Group (OEWG), comprising the entire UN membership, established through a resolution by Russia.
- The other is the resolution by the U.S., on the continuation of the Group of Governmental Experts (GGE), comprising 25 countries from all the major regions.
- Differ vastly on many aspects of Internet: The two antagonistic permanent members of the UN Security Council, counted among India’s most important strategic partners, differ vastly on many aspects of the Internet, including openness, restrictions on data flow, and digital sovereignty. Amidst the turbulent current world events, these UN groups would struggle to have effective dialogues.
Conclusion
- The G-20 summit this year in India, which will see participation by all the stakeholders driving the global levers of power, is a rare opportunity to bring together domestic and international engagement groups across the spectrum, and steer the direction of these consultations. India could make an effort to conceptualize a global framework of common minimum acceptance for cybersecurity. This would be one of the most significant contributions made by any nation towards collective security in modern times.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Social Stock Exchange (SSE)
Mains level: Not Much
The National Stock Exchange (NSE) has received final approval from the Securities and Exchange Board of India (SEBI) to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.
What is a Social Stock Exchange?
- Social Stock Exchange (SSE) is a platform that connects social enterprises with investors who are looking for social impact along with financial returns.
- Social enterprises are organizations that prioritize social impact over profits.
- SSE aims to provide these organizations with access to capital markets and raise awareness about social investment opportunities.
Who can get listed for SSEs?
- Any social enterprise, Non-Profit Organisation (NOPs) or For-Profit Social Enterprises (FPEs), that establishes its primacy of social intent can get registered or listed on the Social Stock Exchange segment.
- Eligible NPOs can begin by registering on the SSE segment.
- After onboarding, NPOs can initiate the fund mobilization process by issuing instruments such as Zero Coupon Zero Principal (ZCZP) via a public issue or private placement.
- Currently, the regulations have prescribed a minimum issue size of Rs 1 crore and a minimum application size for the subscription of Rs 2 lakhs for ZCZP issuance.
How will SSE work?
- The SSE will be a separate segment on the NSE, where social enterprises can list their securities.
- These securities will be available for trading to investors who are interested in social impact investing.
- The SSE will also provide a range of services such as capacity building, impact measurement, and reporting to help social enterprises improve their operations and measure their social impact.
Benefits of SSE
- For social enterprises, SSE will provide access to capital markets and help them raise funds for their social projects.
- For investors, SSE will provide a platform to invest in social enterprises and contribute to social impact.
- SSE will also create a transparent marketplace where investors can assess the social impact of their investments.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Section 153A of IPC
Mains level: Free speech and defamation
Central idea: A politician was recently arrested under Section 153A of IPC for the alleged use of objectionable words against the Prime Minister.
Section 153A: What the law says
- Section 153A of the Indian Penal Code (IPC) penalises “promoting enmity between different groups on grounds of religion, race, place of birth, residence, language, etc., and doing acts prejudicial to maintenance of harmony”.
- This is punishable with imprisonment up to three years, or with fine, or with both.
- The provision was enacted in 1898 and was not in the original penal code.
- At the time of the amendment, promoting class hatred was a part of the English law of sedition, but was not included in the Indian law.
Charges laid for remarks against PM
The FIR mentioned the use of Sections-
- 153B(1) (Making imputations, assertions prejudicial to national integration);
- 295A (Deliberate and malicious acts, intended to outrage religious feelings of any class by insulting its religion or religious beliefs);
- 500 (Defamation); and
- 504 (Intentional insult with intent to provoke breach of the peace).
Conviction rates under Section 153A
- Data from the National Crime Records Bureau (NCRB) show that the rate of conviction for Section 153A is very low.
- In 2020, 1,804 cases were registered, six times higher than the 323 cases in 2014.
- However, the conviction rate in 2020 was 20.2%, suggesting that the process often becomes the punishment.
Issues with the law
- Hate speech laws have been invoked under regimes of all parties to crack down on criticism of public functionaries and to arrest individuals.
- The invocation of Section 153A is often criticized for restricting free speech and misusing the legal processes for political purposes.
Safeguards against misuse
- Given that the provisions are worded broadly, there are safeguards against its misuse.
- For example, Sections 153A and 153B require prior sanction from the government for initiating prosecution.
- But this is required before the trial begins, and not at the stage of preliminary investigation.
- To curb indiscriminate arrests, the Supreme Court laid down a set of guidelines in its 2014 ruling in Arnesh Kumar v State of Bihar.
- As per the guidelines, for offenses that carry a sentence of fewer than seven years, the police cannot automatically arrest an accused before investigation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Caveat
Mains level: Not Much
Recently, the Supreme Court bench reprimanded a law student for filing a caveat in a petition seeking menstrual leave for female students and working women across Indian institutions.
What is a Caveat?
- In common parlance, a caveat refers to “warning” or “caution”.
- However, legally it connotes a “formal notice requesting the court to refrain from taking some specified action without giving prior notice to the person lodging the caveat.”
- The person lodging the caveat is called a “caveator”.
- The provision was inserted by the Amendment Act of 1976 after the Law Commission’s recommendation by Section 148A of the Civil Procedure Code (CPC).
- However, the term is not expressly defined anywhere except in the Calcutta High Court’s 1978 ruling.
Who can fill the Caveat?
- Any person has a right to lodge a caveat in a Court.
- Any person claiming a right to appear before the Court on the hearing of such application may lodge a caveat in respect thereof.
- The caveator or the person lodging is also required to serve a notice of the caveat by “registered post” to the person on whose plea they are lodging the application
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CCR5-delta 32 mutation
Mains level: Not Much
Central idea: This article discusses recent developments in the field of HIV research that have led to the possibility of a cure for the disease.
What is HIV/AIDS?
- HIV (human immunodeficiency virus) is a virus that attacks cells that help the body fight infection, making a person more vulnerable to other infections and diseases.
- First identified in 1981, HIV is the cause of one of humanity’s deadliest and most persistent epidemics.
- It is spread by contact with certain bodily fluids of a person with HIV, most commonly during unprotected sex, or through sharing injection drug equipment.
- If left untreated, HIV can lead to the disease AIDS (acquired immunodeficiency syndrome).
- The human body can’t get rid of HIV and no effective HIV cure exists.
Present treatment of HIV
- However, by taking HIV medicine (called antiretroviral therapy or ART), people with HIV can live long and healthy lives and prevent transmitting HIV to their sexual partners.
- In addition, there are effective methods to prevent getting HIV through sex or drug use, including pre-exposure prophylaxis (PrEP) and post-exposure prophylaxis (PEP).
What is the new breakthrough?
- Doctors selected a donor carrying two copies of a CCR5-delta 32 genetic mutation – a mutation that is known to make the carriers almost immune to HIV.
- The CCR5-delta 32 genetic mutation is a rare genetic mutation that affects the CCR5 gene, which is involved in the immune system’s response to infection.
- The mutation causes a deletion of 32 nucleotides in the gene, resulting in a truncated or shortened version of the CCR5 protein.
- This truncated protein is not able to function normally, and people with this mutation are largely resistant to HIV infection.
How has the CCR5-delta 32 mutation been used in HIV research?
- Researchers have been studying the CCR5-delta 32 mutation as a potential avenue for developing an HIV cure.
- One approach involves using gene editing technologies like CRISPR to induce the mutation in HIV-positive individuals, effectively making their immune cells resistant to HIV infection.
- Another approach involves bone marrow transplantation from donors with the CCR5-delta 32 mutation.
What are the risks associated?
- Gene editing technologies like CRISPR are still in their early stages, and there are concerns about the safety and effectiveness of these methods.
- Additionally, bone marrow transplantation is a complex and risky procedure that is not feasible for all HIV-positive individuals.
- Finally, it is important to note that not all HIV infections are caused by the CCR5 strain of the virus, and therefore the use of the CCR5-delta 32 mutation as an HIV cure would not be effective for all cases of HIV.
Prevalence of HIV/AIDS in India
- As per the India HIV Estimation 2019 report, the estimated adult (15 to 49 years) HIV prevalence trend has been declining in India since the epidemic’s peak in the year 2000 and has been stabilizing in recent years.
- In 2019, HIV prevalence among adult males (15–49 years) was estimated at 0.24% and among adult females at 0.20% of the population.
- There were 23.48 lakh Indians living with HIV in 2019.
- Maharashtra had the maximum at 3.96 lakh followed by Andhra Pradesh (3.14 lakh) and Karnataka.
- ART is freely available to all those who require and there are deputed centres across the country where they can be availed from.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Gross Domestic Expenditure On Research and Development
Mains level: Research and development in India
Central Idea
- India’s research and development (R&D) expenditure-GDP ratio of 0.7% is very low when compared to major economies and is much below the world average of 1.8%. The main reason is the low investment in R&D by the corporate sector.
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- While the corporate sector accounts for about two-thirds of gross domestic expenditure on R&D (GERD) in leading economies, its share in India is just 37%. There is evidence, however, suggesting that India’s GERD data are an underestimate.
- A 2022 infobrief of the National Science Foundation (NSF) of the United States on Foreign R&D by U.S.-based multinational corporations (MNCs) shows a spend of $9.5 billion (₹649.7 billion) on R&D in India in 2018, which increased to $9.8 billion (₹690.2 billion) in the following year.
- There are MNCs from other leading countries also spending on R&D in India.
- But the latest Research and Development Statistics, published by the Department of Science and Technology (DST) in 2020, has provided an estimate of ₹60.9 billion R&D spending in 2017-18 by foreign MNCs, which is only about 10% of what U.S. firms have reported to have spent in India on R&D.
What is Gross Domestic Expenditure On R&D (GERD)?
- Gross domestic spending on R&D is defined as the total expenditure (current and capital) on R&D carried out by all resident companies, research institutes, university and government laboratories, etc., in a country.
- It includes R&D funded from abroad, but excludes domestic funds for R&D performed outside the domestic economy.
- This indicator is measured in USD constant prices using 2015 base year and Purchasing Power Parities (PPPs) and as percentage of GDP.
- It is often used as an indicator of a country’s level of innovation and technological progress.
Issues with the current system
- NSTMIS compiles GERD data: The National Science and Technology Management Information System (NSTMIS) of the DST is the agency that compiles GERD statistics in India.
- Challenge is to collect data from private sector: It is easier to gather the information on R&D by the government sector, the higher education sector and public sector enterprises. The challenge lies in collecting data from the private corporate sector.
There are two key factors that make the official R&D estimates grossly inadequate
- The method used for identification of R&D performing firms does not capture all the R&D performing firms.
- NSTIMS uses DSIR and Prowess to identify R&D units: A study found only 11% of 298 firms receiving foreign investment (2004-16) for R&D were registered with DSIR. Prowess covers only 3.5% of currently active registered enterprises in India. Leading enterprises in new technology areas may not be listed in both databases, such as SigTuple Technologies.
- The DSIR list may not have many of the actual R&D performers for two reasons: Firms which consider government incentives as not attractive enough or that are sensitive about sharing critical information with the DSIR may not be inclined to register themselves with the DSIR. 2. It may be difficult for R&D firms in services such as software and R&D services to meet the requirement of having separate infrastructure for R&D to distinguish it from their usual business. In fact, many of the R&D performing enterprises in new technology areas may come under the services category.
- The survey conducted by the NSTMIS is the key source of R&D statistics of India
- Data from Secondary sources works only if firms disclose their R&D spending: If firms don’t respond to the survey, data is collected from secondary sources like annual reports and Prowess. Some firms don’t report R&D spending despite their technology activities, patents and innovators. They may not feel obliged to report accurately to Indian regulatory authorities.
- For instance: A review of the documents submitted to the Ministry of Corporate Affairs (MCA) by some R&D-oriented firms shows that there are firms which do not report any spending on R&D in spite of their declarations that suggest that they are engaged in activities of technology development, adoption and adaptation.
What is to be done?
- Short term measure: the NSTMIS should use the patents granted data, both in India and the U.S., in addition to its current method to identify R&D performing enterprises.
- Mandatory disclosure: Annual R&D estimates can be prepared from mandatory disclosures that the enterprises are required to make to the MCA.
- Technologies can be employed to ensure compliance and proper reporting: In order to ensure compliance and proper reporting, technologies can be used like in the case of revamped income-tax return forms where various sections are interlinked.
- Spending data should be made an essential component of ESG: Additionally, proper disclosure of information to regulatory agencies, including R&D spending data, should be made an essential component of the environmental, social and governance (ESG) ranking of enterprises.
Conclusion
- Concrete data on R&D spending is crucial as it helps to identify areas needing investment, promotes economic growth, informs policymaking decisions, tracks progress, and evaluates policy effectiveness in promoting innovation and technological development. Transforming India’s R&D statistics to truly reflect the R&D ecosystem calls for short-term and medium-term measures.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Inflation
Mains level: The role of MPC, Inflation, repo rate and its impact
Central Idea
- In its last meeting, held just a few days after the Union budget, the monetary policy committee (MPC) of the RBI had voted to raise the benchmark repo rate by 25 basis points. The MPC noted that calibrated action was warranted to break the persistence in core inflation. This surprise uptick in inflation is likely to complicate the policy choices before the MPC members when it meets next in the first week of April.
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What is Basis points we often hear about?
- A basis point is a unit of measurement used to express changes in interest rates, bond yields, and other financial indicators.
- One basis point is equal to one-hundredth of a percentage point, or 0.01%.
- For example, If the Reserve Bank of India (RBI) raises the repo rate by 25 basis points, it means that the interest rate has increased by 0.25%.
What it indicates?
- If the Reserve Bank of India (RBI) keeps raising the repo rate by basis points, it is an indication that the central bank is tightening its monetary policy stance to manage inflationary pressures in the economy.
Back to basics: Monetary Policy Committee (MPC)
- Committee of RBI to fix the benchmark policy: The Monetary Policy Committee (MPC) is a committee of the RBI, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level.
- To bring transparency and accountability: The RBI Act, 1934 was amended by Finance Act (India), 2016 to constitute MPC to bring more transparency and accountability in fixing India’s Monetary Policy.
- Policy is published after discussion: The policy is published after every meeting with each member explaining his opinions.
- Answerable to GOI: The committee is answerable to the Government of India if the inflation exceeds the range prescribed for three consecutive months.
What is Inflation?
- Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices.
- Typically, prices rise over time, but prices can also fall (a situation called deflation).
- Rise in retail inflation: Retail inflation, as measured by the consumer price index, rose to 6.52 per cent in January, up from 5.72 per cent in December, reversing the declining trend seen in the preceding months.
- Much of the surge was driven by food inflation: The consumer food price index rose to 5.94 per cent, up from 4.19 the month before, driven largely by cereals.
- Price pressure remain across the economy: Inflation remained elevated in clothing and footwear, household goods and services, personal care effects and education, signalling that price pressures remain fairly broad-based across the economy.
RBI’s Upper tolerance limit for inflation
- Highest level of inflation that can be tolerated: The upper tolerance limit for inflation set by the Reserve Bank of India (RBI) is the highest level of inflation that the RBI will tolerate before taking action to bring inflation back within its target range.
- RBI’s limit: The target range is defined in terms of the Consumer Price Index (CPI) inflation and the RBI has set an upper tolerance limit of 6% and a lower tolerance limit of 2% with a central target of 4%. This means that the RBI aims to keep CPI inflation within the range of 2-6%, with a target of 4%.
- Tools to contain inflation: If inflation exceeds the upper tolerance limit of 6%, the RBI is required to take steps to bring inflation back within the target range. The RBI uses a variety of monetary policy tools to control inflation, including adjusting the policy interest rate, changing reserve requirements for banks, and using open market operations to manage liquidity in the financial system.
Conclusion
- Monetary policy experts Varma and Goyal suggest pausing to observe the impact of previous tightening before taking further action. Despite a cumulative 250 basis point increase, inflation is still expected to remain above the 6% target. The full impact of previous tightening should be considered before making any decisions.
Mains Question
Q. What is upper threshold of the RBI’s inflation targeting framework? Discuss the impact of policy interest rate hikes on the economy.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tenth Schedule of the Constitution
Mains level: Anti-defection law and the challenges
Central Idea
- On February 17, the Election Commission of India (ECI) allotted the name ‘Shiv Sena’ and the party’s Bow and Arrow symbol to Maharashtra Chief Minister Eknath Shinde’s faction, in effect recognizing it as the original party founded by Babasaheb Thackeray. Strengthening Anti-defection law becomes relevant again.
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- Division in the party: The political crisis in Maharashtra began last year after a group of 40 of the 55 Sena MLAs walked out of the Maha Vikas Aghadi (MVA) alliance under the leadership of Mr. Shinde, which caused a division in the party.
- Fight of Name and Symbol: Both the Uddhav Thackeray and Shinde sides staked claim to the party name and symbol, each claiming to represent the real Shiv Sena.
- The ECI said that it had based its decision on a test of majority: It said the group of MLAs supporting the Shinde faction got nearly 76% of the votes polled for the 55 winning Shiv Sena candidates in the 2019 Maharashtra Assembly elections, while the Uddhav Thackeray faction got 23.5% of votes.
Exam Spotlight
- The crisis has thrown the spotlight once again on the anti-defection law, whose purpose is to prevent political defections.
What is Anti-defection Law?
- Tenth Schedule: The Anti-Defection Law under the Tenth Schedule of the Constitution punishes MPs/ MLAs for defecting from their party by taking away their membership of the legislature.
- Power to the speaker: It gives the Speaker of the legislature the power to decide the outcome of defection proceedings.
- 52nd Amendment Act, 1985: It was added to the Constitution through the Fifty-Second (Amendment) Act, 1985 when Rajiv Gandhi was PM. The law applies to both Parliament and state assemblies.
What was the need to have this law then?
- Vies in favour
- Defection was recognized as an evil that needed to be curbed: Defections cause destabilization and lead to governments falling, which can have negative impacts on the country’s political and economic stability.
- Law helps to stabilise party system: The law helps to stabilize party systems by consolidating control of the party leadership instead of relying on ideological cohesion or ownership by constituent legislators.
- Views against it
- Law would curb freedom of opinion of the representatives: Some people thought that the law would curb freedom of speech and affect the free exercise of opinion by the members of the legislature who are elected by the people.
- Undermines the representative system of democracy: The law effectively does away with the representative system of democracy in India by framing democracy as a contest between factions rather than a system of representation and accountability.
- Limiting the ability of legislators: The law consolidates power in the hands of the party leadership, potentially limiting the ability of individual legislators to represent their constituents’ interests.
How the law is faring today?
- Recent events shows that the law needs to be tightened: The kinds of defections which used to take place before the passing of this law are not taking place now. But recent events show that this law needs to be tightened.
- Third paragraph of tenth schedule was deleted: A little tightening was done earlier by doing away with a split, that is, paragraph three of the Tenth Schedule of the Constitution. It had said, if there is a split in a particular party, and one-third of the legislators move along with the breakaway group, they will not be disqualified. So, split was a defence against disqualification.
- No authoritative interpretation of the law: there is a very disturbing trend, which is to interpret paragraph four (decision on questions as to disqualification on ground of defection) in a particular way, because there is no authoritative declaration of law from the Supreme Court on the exact application of it.
- No timeline fixed for the Speaker: In the 10th Schedule currently, there is no timeline fixed for the Speaker to determine the issue and the purpose of this anti-defection law is defeated.
Conclusion
- People are principal stakeholders in a democracy; parties are merely the institutional intermediaries. Democracy needs stable parties, but controlling legislators removes their representative role. Need of the hour is to fix the loopholes in the system because the continuous cycle of instability adversely affects the people, who are the primary stakeholders in a democracy and suffer the most.
Mains Question
Q. The events of spilt within the political are rising posing a challenge to the Anti defection law In this backdrop discuss the need of Anti defection law?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Aadhaar- Voter ID Linkage
Central idea: An RTI query has revealed that around 60% of Indian voters have linked their Aadhaar cards with their voter ID cards.
Benefits of Aadhaar linking
- Voter uniqueness: The move to link Aadhaar and voter ID cards was introduced to prevent electoral fraud and ensure unique identity of each voter.
- Curb bogus votes: It is expected to help prevent multiple voting, impersonation, and bogus voting, which have been a concern in the past.
- Facilitate migrant voting: There have been migrant workers who may have been registered more than once on the electoral rolls in different constituencies or for persons registered multiple times within the same constituency.
Is the linking of Aadhaar with one’s Voter ID mandatory?
- In December 2021, Parliament passed the Election Laws (Amendment) Act, 2021 .
- It states that the electoral registration officer may require voters to furnish their Aadhaar numbers to verify Authencity of voters list.
- This was to amend the Representation of the People Act, 1950 and Section 23(4) was inserted in the RP Act.
Why was such linking proposed?
The preference to use Aadhaar for verification and authentication, both by the state and private sector, stems from few reasons:
- Increase in UID-holders: First, at the end of 2021, 99.7% of the adult Indian population had an Aadhaar card.
- Most versatile document: This coverage exceeds that of any other officially valid document such as driver’s licence, ration cards, PAN cards etc. that are mostly applied for specific purposes.
- Reliable source of authentication: Since Aadhaar allows for biometric authentication, Aadhaar based authentication and verification is considered more reliable, quicker and cost efficient when compared to other IDs.
Issues with mandatory linking: Puttaswamy judgment highlights
- Puttaswamy judgment: The above reasons do not suffice the mandating of Aadhaar except in limited circumstances as per the Puttaswamy judgment.
- The indispensability of the purpose: It needs to be considered whether such mandatory linkage of Aadhaar with Voter ID would pass the test of being “necessary and proportionate” to the purpose of de-duplication which is sought to be achieved.
- Constitutional ambiguity: In Puttaswamy, one of the questions that the Supreme Court explored was whether the mandatory linking of Aadhaar with bank accounts was constitutional or not.
- Against informational autonomy: It is the right to privacy which would allow a person to decide which official document they want to use for verification and authentication.
Other judicial observations: Lal Babu Hussein (1995) Case
- The Supreme Court had held that the Right to vote cannot be disallowed by insisting only on four proofs of identity.
- The voters are entitled to rely on any other proof of identity and obtain the right to vote.
What are the operational difficulties?
- Aadhaar is not a citizenship proof: The preference to Aadhaar for the purposes of determining voters is puzzling as Aadhaar is only a proof of residence and not a proof of citizenship.
- Excluding non-citizens is not easy: Verifying voter identity against this will only help in tackling duplication but will not remove voters who are not citizens of India from the electoral rolls.
- Estimate of error rates in biometric based authentication: This certainly differs. As per the UIDAI in 2018, Aadhaar based biometric authentication had a 12% error rate.
- Disenfranchisement of existing voters: Errors have led to the disenfranchisement of around 30 lakh voters in AP and Telangana before the Supreme Court stalled the process of linkage.
Key concern: Right to Privacy
- Some civil societies has highlighted that linking of the two databases of electoral rolls and Aadhaar could lead to the linkage of Aadhaar’s “demographic” information with voter ID information.
- This could lead to violation of the right to privacy and surveillance measures by the state.
- This would leave the EC with the option of verifying its information only through door-to-door checks.
- There is a lack of enforceable data protection principles that regulate how authentication data will be used.
Way Forward
- Address privacy and security concerns: There should be strict measures in place to ensure the safety of personal information and prevent data breaches.
- Provide alternative authentication: The government should provide alternative methods of identity verification. This will help ensure that no citizen is disenfranchised due to the lack of an Aadhaar card.
- Regular monitoring and evaluation: The government should regularly monitor and evaluate the effectiveness of the linking of Aadhaar and voter ID cards in preventing electoral fraud.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GST share in Revenue
Mains level: GST
India’s Goods and Services Tax (GST) revenues grew 12.7% in January to hit almost ₹1.59 lakh crore ($17.9 billion), the second-highest monthly collections on record, as per revised figures from the Finance Ministry.
What led to hike in GST revenue collection?
- Economic recovery: Discusses how the steady economic recovery in India has led to higher consumption and spending, resulting in increased GST collections
- Crackdown on Tax evasion: Several measures were taken by the government to streamline the GST system and reduce tax evasion, including the implementation of e-invoicing and the use of technology to track compliance.
- Crackdown on fraudulent claims: The government’s efforts to crack down on fraudulent input tax credit claims, have also contributed to the increase in GST collections
- Increase in imports: The higher value of imported goods due to rising commodity prices is another reason behind the increase in GST collections from imports.
What is GST?
- GST is an indirect tax that has replaced many indirect taxes in India such as excise duty, VAT, services tax, etc.
- The Goods and Service Tax Act was passed in Parliament on 29th March 2017 and came into effect on 1st July 2017.
- It is a single domestic indirect tax law for the entire country.
- It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
- Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged. All the inter-state sales are chargeable to the Integrated GST.
Answer this PYQ in the comment box:
Q. All revenues received by the Union. Government by way of taxes and other receipts for the conduct of Government business are credited to the (CSP 2015):
(a) Contingency Fund of India
(b) Public Account
(c) Consolidated Fund of India
(d) Deposits and Advances Fund
Post your answers here
What are the components of GST?
There are three taxes applicable under this system:
- CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a transaction happening within Maharashtra)
- SGST: It is the tax collected by the state government on an intra-state sale (e.g., a transaction happening within Maharashtra)
- IGST: It is a tax collected by the Central Government for an inter-state sale (e.g., Maharashtra to Tamil Nadu)
Advantages of GST
- GST has mainly removed the cascading effect on the sale of goods and services.
- Removal of the cascading effect has impacted the cost of goods.
- Since the GST regime eliminates the tax on tax, the cost of goods decreases.
- Also, GST is mainly technologically driven.
- All the activities like registration, return filing, application for refund and response to notice needs to be done online on the GST portal, which accelerates the processes.
Issues with GST
- High operational cost
- GST has given rise to complexity for many business owners across the nation.
- GST has received criticism for being called a ‘Disability Tax’ as it now taxes articles such as braille paper, wheelchairs, hearing aid etc.
- Petrol is not under GST, which goes against the ideals of the unification of commodities.
Take a look at the share of GST in government earnings for the previous fiscal:
UPSC can ask about the majority component of the Revenue Receipts of the govt. See how Corporate tax is nearing the GST revenues.
Do you think it will surpass GST revenue when the economy is fully recovered?
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Neutral Citiation
Mains level: Not Much
The CJI expressed hope that High Courts too would follow neutral citation for their judgments. The Delhi, Kerala, and Madras HCs have already introduced neutral citation.
What is a “Citation”?
- A case citation is essentially an identification tag for a judgment.
- Typically, it would contain a reference number, the year of the judgment, the name of the court that delivered that judgment, and a shorthand for the journal publishing the judgment.
And what is a neutral citation?
- A neutral citation would mean that the court would assign its own citation — distinct from those given by traditional Law Reporters.
- Law Reporters are periodicals or annual digests that publish judgments, often with an editorial note to make it accessible for lawyers to refer to precedents.
- For example, for the landmark Kesavananda Bharati case, the citation in ‘Supreme Court Cases’, a journal published by the Eastern Book Company, is (1973) 4 SCC 225.
- In the All India Reporter (AIR), the citation is AIR 1973 SC 1461.
Why is a neutral system good or necessary?
- Judgments mention citations while referring to precedents and often use citations from different Law Reporters.
- With artificial intelligence (AI) enabled translation of judgments and transcribing of court proceedings, a uniform citation is necessary.
- Several High Courts including Delhi High Court have started a neutral citation format.
- The Delhi HC neutral citation is, for example, in this format: No-YEAR/DHC/XXXXXX
How will the SC implement the neutral citation system?
- Our recent initiative is neutral citations for all judgments of the Supreme Court.
- So all 30,000 judgments are going to have neutral citations.
- First tranche will be till January 1, 2023, then the other tranche will be till judgments from 2014 and then finally we will go back to 1950.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: 4-day work week, advantages and disadvantages
Central Idea
- Much is being made about the major breakthrough in one of the largest-ever experiments with a four-day workweek in Britain. Sixty-one companies were part of the six-month trial and 56 of them have opted to continue with the program, while 18 have made it permanent. 4 Day Week Global trial, overseen by Autonomy, aimed to improve work-life balance by allowing workers to work four days instead of five with the same salary and workload.
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Advantages of implementing a four-day workweek
- Improved Work-life balance: Having a positive work-life balance can also allow professionals to adopt a better attitude about their work, as they can return to their jobs well-rested. This can help employees remain productive and enthusiastic while working.
- Increased job satisfaction: With more free time, employees may feel more satisfied with their jobs and be more engaged at work.
- Reduced absenteeism and turnover: Offering a four-day workweek could make companies more attractive to potential employees, and employees may be less likely to miss work or leave their jobs if they have a better work-life balance.
- Increased productivity: Some studies have shown that shorter workweeks can actually boost productivity, as employees may be more focused and efficient during their work hours.
- Positive environmental impact: Working four days per week decreases the number of times a professional commute to work. This is helpful to the environment, as most vehicles produce emissions that can harm the environment.
Potential disadvantages
- Limited impact: The benefits of a four-day workweek may be limited in certain industries or job types, such as those that require shift work or have strict deadlines.
- Increased workload: Employees may feel pressure to complete the same amount of work in fewer hours, resulting in an increased workload and potential burnout.
- Reduced productivity: Some employees may find it difficult to maintain focus and productivity over longer workdays. This could lead to a decrease in overall output and quality of work.
- Impact on customer service: If businesses are closed for an extra day each week, it may be more difficult to provide customer service or maintain consistent operating hours.
- Reduced income: With a shorter workweek, employees may see a reduction in their pay, which could be a disadvantage for those who rely on their income to cover living expenses.
Examples of companies/organizations considering a four-day workweek
- Microsoft Japan: In 2019, the tech giant conducted a trial where employees worked a four-day week and saw a 40% increase in productivity.
- Iceland: A number of companies and organizations in Iceland have experimented with shorter workweeks, including the country’s government, which is exploring a four-day workweek for public servants.
- New Zealand: Unilever New Zealand recently announced it would be trialing a four-day workweek for all of its employees, while the country’s prime minister, Jacinda Ardern, has previously spoken in favor of the idea.
- Spain: The government of Spain has proposed a three-year trial of a four-day workweek, with the goal of improving work-life balance and boosting productivity.
- Will require a careful analysis: The feasibility and impact of a four-day workweek in India would depend on various factors such as industry type, workforce demographics, and cultural norms. Implementing a four-day workweek in India would require careful analysis of various factors.
- For instance: With the rise of remote work and the increased focus on work-life balance four day week option could be helpful to enhance productivity with improved work life balance in corporate sector.
- Complex regulations: India’s labour laws and regulations are complex and provide significant protections for workers. Any changes to work arrangements, including a four-day workweek, would need to comply with these laws and ensure that employees’ rights and benefits are protected.
- For example: Any reduction in working hours would need to be accompanied by appropriate compensation and benefits to ensure that employees do not suffer financial losses.
- Specific needs of industries: The feasibility of a four-day workweek would depend on the specific needs of different industries.
- For instance: While some knowledge-based sectors may be well-suited to a four-day workweek, industries that require continuous operations or shift work, such as manufacturing or healthcare, may face significant challenges in implementing a shorter workweek.
Conclusion
- It’s important to carefully consider the potential advantages and disadvantages of a four-day workweek before implementing it in any workplace. The impact may vary depending on the specific work arrangements and the needs of the employees and customers.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: UPI, PayNow link, UPI LITE, etc
Mains level: UPI and Internationalization of Digital Payments architecture
Central Idea
- On Tuesday, the Union government unveiled India’s first cross-border real-time payments systems linkage, with the Unified Payments Interface (UPI) connecting with Singapore’s PayNow payment system.
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What is Unified Payments Interface (UPI)
- UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
- It eliminates the risk of sharing bank account details by the remitter.
- UPI supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments and it also enables a user to send or receive money.
What is PayNow?
- It is a fast payment system in Singapore.
- It enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore.
- It allows users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore National Registration Identity Card (NRIC)/Foreign Identification Number (FIN), or VPA.
Overview: Remarkable success of UPI
- Changed the landscape of electronic payments: The introduction of UPI in 2016-17 led to a dramatic change in the electronic payments landscape of the country.
- Instrumental in dramatic growth of digital payments: Along with the JAM trinity of Jan Dhan, Aadhaar and mobile phones, this payment architecture has been instrumental in facilitating the dramatic growth of digital payments in the country, aided by a conducive regulatory framework.
- Value and volume increasing day by day: Over the years, various reports by the RBI have documented the significant increase in digital payments transactions in the country, with per person digital transactions growing both in terms of value and volume.
- Dramatic surge during the pandemic: Contactless payments also witnessed a surge during the pandemic. In fact, as per another study, roughly one-third of households surveyed had transacted digitally for the first time during the lockdown.
- Statistics for instance:
- In January 2023, roughly 8 billion transactions were carried out on the UPI platform, whose value touched almost Rs 13 lakh crore.
- In comparison, in January 2020, just prior to the pandemic, 1.3 billion transactions were routed through the UPI platform, which touched Rs 2.1 lakh crore in value.
- Aided in accelerating financial inclusion: The convenience of real-time transfer of payments, the zero-cost framework for users, the rapid expansion in the acceptance touch-points, have encouraged its widespread adoption. This has also aided in accelerating financial inclusion by providing access to financial services at low cost.
Did you know? “UPI Lite”
- UPI Lite is a on device wallet feature similar to the ones seen on popular digital payment apps such as Paytm, Freecharge, MobiKwik and others.
- The feature will allow you to make faster near real-time small value payments without internet connection via the money added in the wallet.
- In phase one, UPI Lite will process transactions in near offline mode i.e. debit offline and credit online, and at a later point, UPI Lite will process transactions in complete offline mode i.e. debit and credit both offline.
- How is the interlinkage benefit users?
- With this facility, funds held in bank accounts or e-wallets can be transferred to /from India using just the UPI ID, mobile number, or Virtual Payment Address (VPA), which is essentially the address to or through which you can make UPI money transfers.
- With this payment facility, both inward and outward remittances will happen instantly.
- Who can undertake remittance transactions through this facility: Account holders of participating banks and financial institutions in India and Singapore.
- Participating banks in India and Singapore:
- Banks from India are Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India (SBI). Going forward, the UPI-PayNow interlinkage will cover more banks and financial institutions.
- From Singapore, DBS Bank Singapore and Liquid Group (Non-Bank Financial Institution) are selected.
- Popular payment platforms such as PhonePe and Google Pay have been excluded from the ambit of this framework. Perhaps, over time, these platforms will also be brought under this framework, aiding in its widespread adoption.
- The daily transaction limit:
- Banks in India have not communicated about any restrictions on transfers yet.
- It is Rs 60,000 (around SGD 1,000). Initially, DBS customers can use PayNow-UPI only to transfer funds up to SGD 200 per transaction, capped at SGD 500 per day.
- There is no such communication about capping for transferring funds through Liquid Group (Non-Bank Financial Institution) to India.
Conclusion
- The UPI-PayNow interlinkage is a milestone moment for cross-border transfers. Not only India but the world has witnessed how UPI revolutionized the landscape of domestic digital payment infrastructure. With this encouraging development we are now going to see a similar revolution in the cross-border payments space as well. This internationalization of the digital payments architecture, will help bring down both the cost and the time associated with such transfers, bringing benefits to migrant workers, students, and professionals, among others.
Mains Question
Q. Recently India launched its first cross-border real-time payments systems linkage with Singapore. In this light highlight Discuss remarkable success of UPI and prospect of internationalization of UPI.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: 30×30 pledge, PM-STIAC, PM-PRANAM, MISHTI, Amrit Dharohar scheme
Mains level: Government initiatives for biodiversity conservation
Central Idea
- The sum and variation of our biological wealth, known as biodiversity, is essential to the future of this planet. India currently hosts 17% of the planet’s human population and 17% of the global area in biodiversity hotspots, placing it at the helm to guide the planet in becoming biodiversity champions.
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What is 30×30 pledge?
- The importance of our planet’s biodiversity was strongly articulated at the United Nations Biodiversity Conference in Montreal, Canada.
- On December 19, 2022, 188 country representatives adopted an agreement to halt and reverse biodiversity loss by conserving 30% of the world’s land and 30% of the world’s oceans by 2030, known as the 30×30 pledge.
- Green Growth push in Budget: The Union Budget 2023 mentioned Green Growth as one of the seven priorities or Saptarishis. The emphasis on green growth is welcome news for India’s biological wealth as the country is facing serious losses of natural assets such as soils, land, water, and biodiversity.
- Green India Mission: The National Mission for a Green India aims to increase forest cover on degraded lands and protect existing forested lands.
- Green Credit Programme: The Green Credit Programme has the objective to incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies.
- The MISHTI Program: The Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI) is particularly significant because of the extraordinary importance of mangroves and coastal ecosystems in mitigating climate change.
- PM-PRANAM: The Prime Minister Programme for Restoration, Awareness, Nourishment, and Amelioration of Mother Earth (PM-PRANAM) for reducing inputs of synthetic fertilizers and pesticides is critical for sustaining our agriculture.
- Amrit Dharohar scheme: The Amrit Dharohar scheme is expected to encourage optimal use of wetlands, and enhance biodiversity, carbon stock, eco-tourism opportunities and income generation for local communities. If implemented in letter and spirit, Amrit Dharohar, with its emphasis on sustainability by balancing competing demands, will benefit aquatic biodiversity and ecosystem services.
- For instance: The recent intervention by the Ministry of Environment, Forest and Climate Change to stop the draining of Haiderpur, a Ramsar wetland in Uttar Pradesh, to safeguard migratory waterfowl is encouraging.
Programs must be science-based
- Evidence-based implementation: It is critical that these programs respond to the current state of the country’s biodiversity with evidence-based implementation.
- A science-based and inclusive monitoring programme: A science-based and inclusive monitoring programme is critical not only for the success of these efforts but also for documentation and distillation of lessons learnt for replication, nationally as well as globally.
- Employing modern concepts of sustainability: New missions and programmes should effectively use modern concepts of sustainability and valuation of ecosystems that consider ecological, cultural, and sociological aspects of our biological wealth.
- Setting clear boundaries and priorities: With clear system boundaries, prioritisation of the benefits to resource people, and fund-services (rather than stock-flows) as the economic foundation for generating value has enormous potential for multiple sustainable bio-economies.
- Efficient water use patterns: The future of our wetland ecosystems will depend on how we are able to sustain ecological flows through reduction in water use in key sectors such as agriculture by encouraging changes to less-water intensive crops such as millets as well as investments in water recycling in urban areas using a combination of grey and blue-green infrastructure.
- Focus must be on ecological restoration: As far as the Green India Mission is concerned, implementation should focus on ecological restoration rather than tree plantation and choose sites where it can contribute to ecological connectivity in landscapes fragmented by linear infrastructure.
- Choices should be made on evidences of resilience: Choice of species and density should be informed by available knowledge and evidence on resilience under emerging climate change and synergies and trade-offs with respect to hydrologic services.
- Careful site selection for mangrove initiative: Site selection should also be carefully considered for the mangrove initiative with a greater emphasis on diversity of mangrove species with retention of the integrity of coastal mud-flats and salt pans themselves, as they too are important for biodiversity.
- Effort in response: In response to these needs, we hope that the National Mission on Biodiversity and Human Wellbeing (Mission to green India’s economy, restore natural capital, and make India a global leader in applied biodiversity science) already approved by PM-STIAC, will be immediately launched by the government.
Did you know?
Grey and Blue-Green Infrastructure
- Grey infrastructure: It refers to traditional man-made infrastructure, such as buildings, roads, and bridges, that are designed to provide human-made services like transportation, water supply, and waste management.
- Blue-green infrastructure: It is designed to mimic the functions of natural ecosystems, such as wetlands, rivers, and forests, to provide services like stormwater management, water purification, and carbon sequestration.
- Example: It includes, Rainwater harvesting systems that capture rainwater and recharge groundwater, green roofs that provide insulation and absorb rainwater, Urban parks and green spaces that improve air quality and provide habitat for wildlife, Wetlands and retention ponds that filter pollutants and store excess water during floods
- Sustainable and resilient: Blue-green infrastructure is often seen as a more sustainable and resilient alternative to traditional grey infrastructure, as it can help to mitigate the impacts of climate change, reduce urban heat island effects, and enhance the quality of life for urban residents
Prime Minister’s Science, Technology, and Innovation Advisory Council (PM-STIAC):
- PM-STIAC is a high-level advisory body that provides strategic guidance on science, technology, and innovation to the Prime Minister of India.
- Advises the Indian Prime Minister on science and technology policy, identifying emerging areas, recommending missions and projects, and enhancing the effectiveness of science and technology to tackle national challenges.
- The council comprises eminent scientists, technologists, entrepreneurs, and policymakers who are appointed by the Prime Minister.
- PM-STIAC also serves as a forum for stakeholders from academia, industry, and government to interact and collaborate on science and technology initiatives.
Local community involvement
- Efforts must be inclusive: Each of these efforts must be inclusive of local and nomadic communities where these initiatives will be implemented.
- Traditional practices should be integrated: Traditional knowledge and practices of these communities should be integrated into the implementation plans.
Conclusion
- Each of the above-mentioned programs has the potential to greatly improve the state of our nation’s biodiversity if their implementation is based on the latest scientific and ecological knowledge.
Mains Question
Q. What is 30×30 pledge? Discuss some of the key programs taken by the government to promote green growth and biodiversity conservation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: New Start Treaty, INF Treaty
Mains level: Not Much
Central idea: The article provides an overview of the New START treaty, which was signed by Russia and the United States in 2010. It highlights how the treaty limits the number of nuclear weapons that the two countries can possess and deploy.
The New START, INF and the Open Skies …. Be clear about the differences of these treaties. For example- to check if their inception was during cold war era etc.
New START Treaty
- The New Strategic Arms Reduction Treaty (New START) pact limits the number of deployed nuclear warheads, missiles and bombers and is due to expire in 2021 unless renewed.
- The treaty limits the US and Russia to a maximum of 1,550 deployed nuclear warheads and 700 deployed missiles and bombers, well below Cold War caps.
- It was signed in 2010 by former US President Barack Obama and then-Russian President Dmitry Medvedev.
- It is one of the key controls on the superpower deployment of nuclear weapons.
Background of US-Russia Nuclear Relations
- The US formally QUIT the Intermediate-Range Nuclear Forces (INF)
- The agreement obliged the two countries to eliminate all ground-based missiles of ranges between 500 and 5,500 km.
When did nuclear disarmament begin?
- In 1985, the two countries entered into arms control negotiations on three tracks.
- The first dealt with strategic weapons with ranges of over 5,500 km, leading to the START agreement in 1991.
- It limited both sides to 1,600 strategic delivery vehicles and 6,000 warheads.
- A second track dealt with intermediate-range missiles and this led to the INF Treaty in 1987.
- A third track, Nuclear, and Space Talks was intended to address Soviet concerns regarding the U.S.’s Strategic Defence Initiative (SDI) but this did not yield any outcome.
Success of INF
- The INF Treaty was hailed as a great disarmament pact even though no nuclear warheads were dismantled.
- As it is a bilateral agreement, it did not restrict other countries.
- By 1991, the INF was implemented. USSR destroyed 1,846 and the US destroyed 846 Pershing and cruise missiles.
- Associated production facilities were also closed down.
- INF Treaty was the first pact to include intensive verification measures, including on-site inspections.
How has the nuclear behavior been?
- With the end of the Cold War and the break-up of the USSR in end-1991, former Soviet allies were joining NATO and becoming EU members.
- The U.S. was investing in missile defense and conventional global precision strike capabilities to expand its technological lead.
- In 2001, the U.S. announced its unilateral withdrawal from the 1972 Anti-Ballistic Missile Treaty (ABM Treaty).
- The US also blamed Russia for not complying with the ‘zero-yield’ standard imposed by the Comprehensive Test Ban Treaty (CTBT). This may indicate the beginning of a new nuclear arms race.
Implications of the New Start
- The 2011 New START lapsed in 2021. It may meet the fate of the INF Treaty.
- The 2018 NPR envisaged the development of new nuclear weapons, including low-yield weapons.
- China is preparing to operate its test site year-round with its goals for its nuclear force.
- CTBT requires ratification by U.S., China, and Iran, Israel and Egypt and adherence by India, Pakistan and North Korea. It is unlikely to ever enter into force.
Conclusion
- A new nuclear arms race could just be the beginning. It may be more complicated because of multiple countries being involved.
- Technological changes are bringing cyber and space domains into contention. It raises the risks of escalation.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Keeladi Civilization, Sangam Age
Mains level: Major civilizations
Central idea: Keeladi is an archaeological site that has been excavated by the Tamil Nadu State Department of Archaeology since 2014. Recent excavations here has pushed the Sangam age further back.
About Keeladi
- Keeladi is a tiny hamlet in the Sivaganga district in south Tamil Nadu.
- It is about 12 km south-east to the temple city of Madurai and is located along the Vaigai River.
- The excavations here from 2015 prove that an urban civilisation existed in Tamil Nadu in the Sangam age on the banks of the Vaigai River.
How is Keeladi linked to Sangam age?
- The Sangam age is a period of history in ancient Tamil Nadu which was believed to be from the third century BCE to the third century CE.
- The name is derived from the renowned Sangam poets of Madurai from that time.
Recent findings
- In 2019, a TNSDA report dated the unearthed artefacts from Keeladi to a period between sixth century BCE and first century BCE.
- Some samples sent for carbon dating in the US, dated back to 580 BCE.
- The findings placed Keeladi artefacts about 300 years earlier than the previously believed third century BCE.
Significance of the findings
- Older than perceived: Recent finding at Keeladi has pushed the Sangam age to 800 BCE based on these archaeological findings.
- Literary evidences: Keeladi, along with other Tamil Nadu sites which have over a thousand inscribed potsherds, clearly suggest the long survival of the script.
- Substantial evidence to Sangam Age: It comes across as an industrious and advanced civilisation and has given evidence of urban life and settlements in TN during the Early Historic Period.
- Another major civilisation: The unearthed Keeladi artefacts have led academics to describe the site as part of the Vaigai Valley Civilisation. It has all the characteristics of an urban civilisation, with brick structures, luxury items and proof of internal and external trade.
- Filling in the cultural gaps: This could provide crucial evidence for understanding the missing links of the Iron Age (12th century BCE to sixth century BCE) to the Early Historic Period (sixth century BCE to fourth century BCE) and subsequent cultural developments.
Links with Indus Valley
Ans. A lot of digging and study has to be done to establish the links between these two civilisations.
- The findings have invited comparisons with the Indus Valley Civilisation while acknowledging the cultural gap of 1,000 years between the two places.
- Till now, the gap is filled with Iron Age material in south India, which serve as residual links.
- However, some of the symbols found in pot sherds of Keeladi bear a close resemblance to Indus Valley signs.
What has been unearthed so far?
- Pottery: Unearthing of heaps of pottery suggest the existence of a pottery making industry, mostly made of locally available raw materials.
- Inscriptions: Over 120 potsherds containing Tamil Brahmi inscriptions have been found.
- Jewellery: There also existed a dyeing industry and a glass bead industry. Gold ornaments, copper articles, semi-precious stones, shell bangles, ivory bangles and ivory combs reflect the artistic, culturally rich and prosperous lifestyle of the Keeladi people.
- Import of semiprecious stones: Agate and carnelian beads suggest import through commercial networks while terracotta and ivory dice, gamesmen and evidence of hopscotch have been unearthed revealing their pastime hobbies.
Recent politicization of the excavation
- The Keeladi site, since its discovery has been shrouded in controversies with several Dravidian and Left ideologues.
- They claim that the archaeological finds prove that the Indus Valley Civilisation was a “Dravidian” culture and an independent “secular” Tamil civilisation.
- The attempt to define the finds in narrow and racial terms is ideologically motivated to one, pump up Tamil exclusivist sentiments, and two, and challenge the view that sees India as one— unity in diversity.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Angel Tax
Mains level: Startup and money laundering
Central idea: The article provides an overview of the angel tax provisions in the Finance Bill, which were introduced in the Budget. It highlights the concerns raised by the start-up community regarding the impact of these provisions on their operations.
Angel Investment
- An angel investor is an individual who provides financial backing to early-stage startups or entrepreneurs, typically in exchange for equity in the company.
- Angel investors are typically high-net-worth individuals who invest their own personal funds, rather than investing on behalf of a firm or institution.
- Features of Angel Investing:
- Early-stage funding
- Equity investment
- High-risk, high-reward
- Active involvement
- Personal investment
- Flexible terms
- Shorter investment horizon
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What is Angel Tax?
- Referred to as Angel Tax, this rule is described in Section 56(2)(viib) of the Income Tax Act, 1961.
- Essentially it’s a tax on capital receipts, unique to India in the global context.
- This clause was inserted into the act in 2012 to prevent laundering of black money, round-tripping via investments with a large premium into unlisted companies.
- The tax covers investment in any private business entity, but only in 2016 was it applied to startups.
Why was angel tax introduced?
- The complicated nature of VC fundraising with offshore entities, multiple limited partners and blind pools is contentious.
- There has been some element of money laundering or round-tripping under guise.
Details of its levy
- The Angel Tax is being levied on startups at 9% on net investments in excess of the fair market value.
- For angel investors, the amount of investment that exceeds the fair market value can be claimed for a 100% tax exemption.
- However, the investor must have a net worth of ₹2 crores or an income of more than ₹25 Lakh in the past 3 fiscal years.
Startups under scrutiny
- As more and more new-age tech startups started raising VC funding, they came under the IT department scrutiny.
- These funding deals often saw investors paying a premium above the face value or the fair market value of securities, and therefore were taxed as income for the startup.
- Between 2016 and 2019, startups urged the government to add exceptions that would allow them to be exempt from the Angel Tax.
Which startups are exempted?
- There is a clear provision that says that start-ups which are recognized by DPIIT are out of the proposal’s purview.
- The start-up recognition process is also very simple where any applicant gets it automatically.
- However, the key condition for exemption is that the aggregate amount of paid up share capital and share premium of the startup after issue or proposed issue of share does not exceed INR 25 Cr.
Concerns raised by startup
- Compliance burden: Even beyond the issue of taxation, the compliance burden on startups will potentially increase significantly under the new rules.
- Persisting slowdown: The timing of this potential tax is most worrying since it coincides with the ongoing startup funding slowdown.
- Fear of off-shoring: Entrepreneurs and investors are concerned that applying strict taxes on capital receipts without adequate exceptions will lead to startups moving overseas.
Back2Basics: Startups in India
- Startups are young companies founded to develop a unique product or service, bring it to market and make it irresistible and irreplaceable for customers.
- In India, start-up should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership.
- Turnover should be less than INR 100 Crores in any of the previous fiscal years.
- An entity shall be considered a Start-up up to 10 years from the date of its incorporation.
- The Start-up should be working towards innovation/ improvement of existing products, services, and processes and should have the potential to generate employment/ create wealth.
- An entity formed by splitting up or reconstruction of an existing business shall not be considered a “Startup”.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Various provisions for disqualifications of MP/MLAs
Mains level: Represenation of People's Act
Central idea: The article provides an overview of Sections 123 (2) and Section 123 (4) of the Representation of People’s Act, 1951. It highlights how the section makes it illegal for candidates who have been convicted of certain offenses to contest elections to Parliament and state legislatures.
Recent context: Promise of Freebies
- Recently, the Supreme Court directed to look into prayers for reconsidering its 2013 judgment in ‘S. Subramaniam Balaji vs. State of Tamil Nadu’ Case.
- The court held that promises of freebies cannot be termed a corrupt practice. However, the matter is still yet to be decided.
Illicit Practices under the RPA, 1951
- Under the provisions of the Act, an elected representative can be disqualified if convicted of certain offences on grounds of-
- Corrupt practices
- Failing to declare election expenses
- Interests in government contracts or works
What amounts to Corrupt Practices?
- Section 123 of the Act defines ‘corrupt practices’: It includes bribery, undue influence, false information, and promotion or attempted promotion of “feelings of enmity or hatred between different classes of the citizens of India on grounds of religion, race, caste, community, or language” by a candidate for the furtherance of his prospects in the election.
- Section 123 (2) deals with ‘undue influence’: It defines as “any direct or indirect interference or attempt to interfere on the part of the candidate or his agent, or of any other person, with the consent of the candidate or his election agent, with the free exercise of any electoral right.” This could also include threats of injury, social ostracism and expulsion from any caste or community.
- Section 123 (4) extends ambit of “corrupt practices”: It covers the intentional publication of false statements which can prejudice the outcome of the candidate’s election.
What practices has the court held as corrupt practices in the past?
- Jamuna Prasad Mukhariya v. Lacchi Ram, 1995: The encroachment of religion into secular activities is strictly prohibited, the court stated while adding that the same is clear from Section 123(3). However, even as far back as 1955, the Apex Court in Jamuna Prasad Mukhariya Case upheld the constitutional validity of Section 123 (3).
- SR Bommai v. Union of India, 1994: In this case, otherwise held secularism to be a part of the ‘basic structure’, the court said, “whatever the attitude of the State towards the religions, religious sects, and denominations, religion cannot be mixed with any secular activity of the State.”
- Abhiram Singh v C.D. Commachen, 2017: In 2017, a seven-judge constitution bench of the apex court held that an election will be annulled if votes are sought in the name of a candidate’s religion, race, caste, community, or language, as per Section 123 (3) which prohibits the same.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: HD 3226 wheat variety
Mains level: Not Much
Scientists at the Indian Council of Agricultural Research (ICAR) have developed a new variety of wheat ‘HD 3226’ that can withstand high temperatures.
HD 3226 Wheat
- The wheat, known as “HD 3226”, has been developed specifically for cultivation in the northwest region of India, where temperatures can reach up to 42 degrees Celsius.
- It took 10 years for ICAR to develop this variety.
- It has been specifically developed for cultivation in the northwest region of India.
Features of HD 3226 Wheat
- More resilient to heat stress: The HD 3226 wheat variety is reportedly more resilient to heat stress than other varieties of wheat.
- Higher yields: The HD 3226 wheat variety can produce up to 12-15% higher yields in high-temperature conditions.
Significance
- The development of this new wheat variety is particularly important given the increasing frequency of heatwaves in the region due to climate change.
- With rising temperatures, it is becoming more challenging for farmers to grow crops.
Government approval and availability
- The HD 3226 wheat variety has now been submitted to the Indian government for approval.
- Once approved, it is expected to be available to farmers in the coming years.
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