From UPSC perspective, the following things are important :
Prelims level: Constitutional Provisions
Mains level: Basic Structure and foundational principles should never be allowed to be eclipsed
Why in the news?
Voters have cleverly embraced the idea of constitutional principles to protect their freedoms. It’s now everyone’s responsibility, including elected officials, citizens, and the judiciary, to ensure that there’s no overreach.
Constitutional Provisions:
Article 99: Mandates that every member of Parliament must take an oath or affirmation to uphold the Constitution.
Third Schedule: Specifies the form of oath or affirmation that members of Parliament, judges of the Supreme Court, and High Courts must take.
Part III (Fundamental Rights): Guarantees civil liberties, such as the rights to equality, freedom of speech, and right to life.
Part IV (Directive Principles of State Policy): Provides guidelines for governance, directing the state in certain policy matters for the welfare of citizens.
Basic Structure and Foundational Principles:
Kesavananda Bharati Case (1973): Established the doctrine that certain features of the Constitution are beyond the amending power of Parliament if they violate its “Basic Structure”, ensuring that fundamental principles like democracy, secularism, judicial review, and federalism cannot be altered.
Foundational Principles: Include the rule of law, separation of powers, judicial independence, and protection of fundamental rights.
Basic Structure and foundational principles should never be allowed to be eclipsed
Protection of Fundamental Rights: The Basic Structure doctrine protects fundamental rights and core principles like democracy, secularism, judicial independence, and federalism in India.
Preservation of Constitutional Balance: Eclipsing the Basic Structure and foundational principles could upset the delicate balance of powers among the legislature, executive, and judiciary. These principles ensure that no single branch of government becomes disproportionately powerful, thereby maintaining the checks and balances essential for democratic governance.
Upholding the Rule of Law: The Basic Structure doctrine reinforces the supremacy of the Constitution as the supreme law of the land. By preventing its core principles from being undermined or diluted through constitutional amendments or legislative actions, it ensures that all state actions, including laws passed by Parliament, are consistent with constitutional norms and the rule of law.
Significance of “Judicial Overreach”:
Protection of Rights: Judicial overreach often arises when courts intervene to protect fundamental rights guaranteed by the Constitution, especially when legislative or executive actions are perceived to violate these rights.
Checks and Balances: It serves as a crucial check on the powers of the legislature and executive, ensuring that their actions conform to constitutional principles and do not exceed their authority.
Defending the Constitution: Courts may intervene to uphold the supremacy of the Constitution, ensuring that laws and actions comply with its provisions, including the Basic Structure doctrine established in the Kesavananda Bharati case.
Criticisms of judicial overreach:
Interference with the Separation of Powers: Critics argue that judicial overreach interferes with the constitutional principle of separation of powers.
Lack of Accountability: Another criticism of judicial overreach is that the judiciary is not accountable to the people in the same way that elected representatives are. Because Judges are appointed, not elected
Dilution of Democracy: Some critics argue that judicial overreach can undermine the democratic process by taking important decisions out of the hands of elected officials and placing them in the hands of judges.
Mains PYQ:
Q What was held in the Coelho case? In this context, can you say that judicial review is of key importance amongst the basic features of the Constitution? (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Prelims level: Fintech Sector
Mains level: Challenges and significance of the fintech sector,
Why in the news?
Despite achieving a significant milestone in H1 2024, the fintech sector has encountered notable funding difficulties.
What is the Fintech Sector?
The fintech sector encompasses technologies and innovations that aim to compete with traditional financial methods in the delivery of financial services. This includes a wide range of applications like mobile banking, online payments, digital lending, and blockchain technology.
Present Report Insights
Funding Decline: The Indian fintech sector recorded $795 million in funding in H1 2024, a decrease of 11% from H2 2023 and 59% from H1 2023.
Global Ranking: Despite the decline, the Indian fintech ecosystem ranked among the top three globally funded sectors alongside the US and UK in H1 2024.
Major Transactions: Only two funding rounds exceeded $100 million in 2024, with Perfios becoming the only unicorn. Bengaluru led the funding, followed by Mumbai and Pune.
Segment Performance: Alternative Lending, RegTech, and BankingTech were the top-performing segments, with Alternative Lending securing $646 million, making up 81% of the total funding.
Acquisitions and IPOs: There were six acquisitions and five IPOs in H1 2024, marking significant activity despite the overall funding challenges.
Significance of Fintech Sector
Financial Inclusion: Fintech innovations enhance financial inclusion by providing access to financial services to unbanked and underbanked populations.
Economic Growth: The sector contributes significantly to economic growth by fostering innovation, creating jobs, and boosting consumer spending.
Efficiency and Transparency: Fintech solutions improve efficiency and transparency in financial transactions, reducing costs and fraud.
Support for Startups: The sector offers numerous opportunities for startups, driving entrepreneurship and competition.
Challenges
Data Security: Fintech companies must implement strong security measures to protect sensitive customer data from cyber-attacks and data breaches. For example, Acko, a leading Indian fintech startup, has faced issues with data breaches in the past, highlighting the importance of robust data security protocols in the industry.
Regulatory Compliance: The fintech industry is highly regulated, requiring companies to stay updated on the latest government policies and ensure compliance to avoid penalties. For example, the Reserve Bank of India (RBI) has issued guidelines to protect consumers from predatory lending practices by digital lenders, underscoring the need for fintech firms to navigate the evolving regulatory landscape.
Customer Acquisition and Retention: Attracting and retaining customers is critical for fintech firms. For example, BharatPe, a prominent Indian fintech company, has faced challenges in customer retention due to its focus on merchant acquisition.
Funding and Investment: Securing adequate funding and investments remains a challenge for many fintech startups. For example, Paytm, one of India’s largest fintech companies, has faced scrutiny from investors due to its inability to achieve profitability
How India Can Improve Its Fintech Sector
Supportive Regulatory Environment: Create a regulatory framework that encourages innovation while ensuring consumer protection and systemic stability, facilitating a balanced growth of the fintech ecosystem.
Infrastructure Development: Invest in digital infrastructure, such as high-speed internet and mobile connectivity, to support the widespread adoption and efficient functioning of fintech applications across the country.
Focus on Cybersecurity: Ensure robust cybersecurity measures to protect against fraud and cyber-attacks, building trust among users and maintaining the integrity of fintech services.
Steps taken by the government:
Regulatory Sandbox: The Securities and Exchange Board of India (SEBI) introduced a framework for regulatory sandbox in 2020 to allow fintech companies to experiment with new products and services in a controlled environment.
Digital Personal Data Protection Bill: Introduced in 2022, this bill aims to create a framework for the protection of personal data collected by fintech companies.
Guidelines on Digital Lending: In 2022, the Reserve Bank of India (RBI) issued guidelines to protect consumers from predatory lending practices by digital lenders.
Promoting Financial Inclusion: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has helped in enrolling over 523.9 million beneficiaries for new bank accounts, enabling fintech startups to reach a large consumer base.
Aadhar and UPI: The unique biometric identification system Aadhar and the Unified Payments Interface (UPI) have improved transparency and delivery of financial service
Conclusion: Fintech companies in India face challenges including data security, regulatory compliance, customer acquisition, and securing investments. Addressing these ensures sustainable growth and trust in a competitive market environment.
Mains PYQ:
Q Has digital illiteracy, particularly in rural areas, coupled with a lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification. (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Prelims level: What is Neofascism?
Mains level: Impact of Neofascism on Europe
Why in the news?
Before France’s UEFA Euro 2024 opener, Kylian Mbappé warned against extremist power, saying he doesn’t want to represent a country that opposes his values. Marcus Thuram urged against supporting Marine Le Pen’s party.
Who is Kylian Mbappé?
Kylian Mbappé is a French professional footballer who plays as a forward for Paris Saint-Germain (PSG) and the French national team.
Ultra-Right encompasses broader right-wing ideologies, focusing on nationalism, conservatism, and anti-immigration without necessarily adhering to fascist roots.
Neo-fascists often seek to mainstream their image, while ultra-right movements vary widely in intensity and focus on cultural and economic issues.
Key characteristics of Neofascism:
Ultra-nationalism: Extreme patriotism and loyalty to one’s country
Racial supremacy: Belief in the superiority of certain races over others
Populism: Appealing to the interests and concerns of ordinary people, especially against a perceived elite establishment
Authoritarianism: Favoring or enforcing strict obedience to authority at the expense of personal freedom
Nativism: Promoting the interests of native inhabitants against those of immigrants
Xenophobia: Intense or irrational dislike or fear of people from other countries
Opposition to liberal democracy: Rejecting the principles of liberal democracy such as individual rights, political pluralism and the rule of law
The spectre of the Ultra-Right and Neo-Fascism
Rise of the Ultra-Right in Europe: The ultra-right and neo-fascism are gaining significant traction across Europe. The recent European Union (EU) elections saw substantial gains for ultra-right parties, indicating a shift in political dynamics.
Impact on French Politics: Kylian Mbappé and Marcus Thuram’s comments highlight the concerns about the rise of extremist parties in France. Marine Le Pen’s National Rally (RN) party has seen increasing support, posing a challenge to traditional political structures. Emmanuel Macron called for a snap parliamentary election in response to RN’s success, hoping to rally moderate and progressive voters.
European Context: The spectre of nationalism and fascism is reminiscent of pre-World War II Europe. Timothy Garton Ash noted the irony of Europe celebrating liberation from fascism while facing a resurgence of similar ideologies.
Effect of the Growth of the Far Right Over the African and Asian Region
Anti-Immigration Sentiment: The far-right’s rise is partly driven by opposition to immigration from Africa and Asia. This sentiment is a legacy of colonialism and has been exacerbated by recent socio-economic challenges.
Integration Challenges: Prominent French footballers of African and Arab descent, like Kylian Mbappé and Karim Benzema, symbolize the integration issues within French society. Benzema’s quote, “If I score, I’m French… if I don’t, I’m an Arab,” underscores the conditional acceptance faced by immigrants and their descendants.
Policy Implications: Far-right governments may implement stricter immigration policies, affecting migrants and refugees from Africa and Asia. These policies could lead to increased xenophobia and social divisions.
How French Elections Could Turn Out to Be a Change Point in Both French and European History
Potential Shift in Political Power: The success of the RN in the French elections could signify a major shift in political power. If the RN wins the upcoming elections, it could lead to a reconfiguration of French politics, with far-reaching implications for Europe.
Influence on European Politics: A far-right victory in France could embolden similar movements across Europe. The trend seen in Italy, Sweden, Germany, Spain, and other countries suggests a broader European shift towards the far-right.
Long-Term Implications: The rise of the ultra-right could lead to significant changes in EU policies, particularly regarding immigration, national sovereignty, and international relations. Historical patterns suggest that while such political waves eventually stabilize, the impacts of this shift could be long-lasting and transformative for Europe.
Conclusion: Need to Implement policies to reduce socio-economic disparities, focusing on marginalized communities, and creating opportunities for employment, education, and social mobility. Invest in social welfare programs to alleviate poverty and economic insecurity, which are often exploited by far-right movements to garner support.
Mains PYQ:
Q ‘In the context of the neo-liberal paradigm of development planning, multi-level planning is expected to make operations cost-effective and remove many implementation blockages.” Discuss. (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Prelims level: British Parliamentary system
Mains level: Impact on India-UK relations
Why in the news?
Keir Starmer is poised to become the next Prime Minister of the UK, following Labour’s landmark victory securing a substantial majority.
Labour Party Comes to Power after 14 Years of Conservative Rule:
Electoral Outcome: Labour secures a decisive victory in the UK elections, winning 412 seats in the House of Commons, ending 14 years of Conservative governance.
Majority: Labour has achieved the largest majority in British politics since the early 20th century, with over 290 seats ahead of the Tories.
Voter Sentiment: The election reflects a strong anti-conservative sentiment rather than a resounding endorsement of Labour, with significant losses in Conservative strongholds.
Strategic Shifts: Labour’s success is attributed to strategic moves to appeal to rural and traditionally Conservative areas, contrasting with losses in urban and progressive strongholds.
Left and Right Streams in the UK:
Left Stream (Labour Party):
Traditionally advocates for social justice, welfare state policies, and government intervention in the economy to reduce inequality.Strong support from urban areas, progressive voters, trade unions, and historically marginalised groups such as minorities and low-income earners.
Under Keir Starmer, Labour has moved towards the centre, focusing on appealing to more rural and traditionally Conservative constituencies.
Right Stream (Conservative Party):
Favors free-market policies, limited government intervention, and emphasises individual responsibility and economic freedom. Strong support from affluent voters, business interests, rural communities, and traditionally conservative values such as patriotism and national sovereignty.
The Conservative Party has faced challenges with internal divisions over Brexit and criticism for austerity measures implemented during previous administrations.
Impact on India:
India-UK FTA: The Labour Party has maintained its commitment to completing the FTA, though the timelines will remain uncertain for some time. Key sticking points include India’s demand for greater access for its skilled professionals in the UK market and the UK’s push for lower import duties on goods like Scotch whisky and electric vehicles.
Defence and Security Cooperation: The India-UK defence and security partnership is likely to continue strengthening, building on recent momentum from the 2+2 mechanism and Defence Minister Rajnath Singh’s visit in early 2024. The UK is expected to maintain its support for a rules-based order and continue working with India to promote a “free and open Indo-Pacific”.
Visa Rules: India has been in talks with the UK for the past few years to relax visa rules for its citizens. With the Labour Party coming into power, there might be some uncertainty around the progress of these discussions.
Carbon Tax: While the FTA might reduce or eliminate tariffs, Indian exports could still face hefty carbon taxes, unlike UK exports to India. The Labour Party has always been in favour of imposing a carbon tax, which could impact Indian industries
Conclusion: India should leverage diplomatic channels to strengthen economic cooperation with the UK under Keir Starmer’s leadership. This could include negotiating bilateral trade agreements, promoting investment opportunities, and collaborating on emerging sectors like technology and renewable energy.
Mains question for practice:
Q Discuss the potential implications of Keir Starmer’s ascension to UK Prime Minister on India-UK relations. 10M
Prelims Only | Economics | Mains Paper 3: Inclusive Growth & Issues,Indian Economy,Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.,issues relating to planning, mobilization of resources
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Data related to Financial Inclusion
Mains level: Barriers to Financial Inclusion
Why in the News?
The RBI has highlighted that low labour force participation among women is a significant barrier to financial inclusion and broader economic growth.
It pointed out that only 7% of the outstanding loans to micro, small, and medium enterprises (MSMEs) are to women-led businesses.
Barriers to Financial Inclusion
Economic Participation: RBI emphasized that greater participation of women in economic activities is essential for financial inclusion and economic growth.
Participation Disparity: Official data shows female labor force participation at 32.8% in FY22, compared to over 77% for men.
Credit Disparity: Women-led businesses constitute nearly a fifth of MSMEs, yet they receive only 7% of the outstanding credit to this sector, highlighting a significant disparity.
Efforts and Challenges in Financial Inclusion
Successes: RBI expressed satisfaction with access to financial services, citing the success of the Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme and social security transfers.
Addressing Demand-side Issues: While supply-side challenges have been addressed, demand-side issues still need attention.
Structural Barriers: Structural issues such as low levels of capital, labour participation, societal norms restricting women from inheriting property, and limited access to education and training impede women’s financial inclusion.
Stereotyping and Behavioral Issues
Higher Risk Perception: Nigam noted that women borrowers often face stereotyping by financiers, being considered higher risks, leading to higher interest rates, greater insistence on collateral, or outright loan rejections.
Behavioural Challenges: He also mentioned behavioural issues among women borrowers, such as being more risk-averse, less confident in negotiating loan terms, and less likely to apply for new loans due to fear of rejection.
Policy Moves:Priority Sector Lending and Financial Literacy Initiatives
Priority Sector Lending (PSL): The PSL mandate has become a viable business model for banks and micro-lenders, but demand-side constraints persist.
RBI Initiatives: To address these challenges, the RBI has initiated financial inclusion efforts, including opening 2,400 financial literacy centres at the block level in partnership with nonprofits and requiring lead banks to have a literacy centre in each district.
Government Schemes:
Stand Up India Scheme
Mudra Yojana Scheme
Annapurna Scheme
Launched
April 2016
April 2015 (under PMMY)
–
Objective
To promote entrepreneurship among women and SC/ST
To provide financial support to non-corporate, non-farm small/micro enterprises
To support women entrepreneurs in the food catering business
Eligibility
Women entrepreneurs and SC/ST entrepreneurs above 18 years of age
All non-farm enterprises, including women-owned businesses
Women entrepreneurs planning to start or expand their food catering business
Loan Amount
INR 10 lakh to INR 1 crore
Up to INR 10 lakh, categorized into three types:
Shishu: Up to INR 50,000
Kishor: INR 50,001 to INR 5 lakh
Tarun: INR 5,00,001 to INR 10 lakh
Up to INR 50,000
Purpose
For setting up a greenfield enterprise in manufacturing, services, or trading sectors
For business activities in manufacturing, processing, trading, or service sectors
For starting or expanding the food catering business
Repayment Period
Up to 7 years with a maximum moratorium period of 18 months
–
36 months, including a grace period of 1 month
About SEHER Program (In News)
The Women Entrepreneurship Platform (WEP) and TransUnion CIBIL have launched SEHER, a pioneering credit education program aimed at empowering women entrepreneurs in India.
SEHER aims to facilitate their access to financial tools crucial for business growth and employment creation.
From UPSC perspective, the following things are important :
Prelims level: About SEHER Program
Mains level: NA
Why in the News?
The Women Entrepreneurship Platform (WEP) and TransUnion CIBIL have launched SEHER, a pioneering credit education program aimed at empowering women entrepreneurs in India.
About Women Entrepreneurship Platform (WEP)
WEP, incubated at NITI Aayogin 2018; aims to create an enabling ecosystem for women entrepreneurs in India through a public-private partnership.
WEP’s Financing Women Collaborative (FWC) initiative accelerates access to finance for women entrepreneurs, addressing key barriers such as information asymmetry.
About SEHER Program
SEHER aims to provide comprehensive financial literacy content and essential business skills to women entrepreneurs.
It will facilitate their access to financial tools crucial for business growth and employment creation.
The program includes personalized resources on financial literacy, emphasizing the importance of building a strong credit history and CIBIL score.
Need for such a program
India has 63 million MSMEs, with 20.5% being women-owned, employing 27 million people.
Accelerating women’s entrepreneurship could create over 30 million new women-owned enterprises and 150 to 170 million jobs.
PYQ:
[2019] “Empowering women is the key to control population growth”. Discuss.
From UPSC perspective, the following things are important :
Prelims level: About Leang Karampuang Cave
Mains level: Key features of the Cave Paintings
Why in the News?
A cave painting discovered in the limestone cave of Leang Karampuangon Sulawesi Island, Indonesia, dates back at least 51,200 years.
The painting features a scene with three part-human, part-animal figures interacting with a wild pig, depicted in red pigment.
Study Details:
Published in the journal Nature, the study titled ‘Narrative cave art in Indonesia by 51,200 years ago’ used a new dating technique to determine the age of the artwork.
The study involved 23 researchers from Griffith University, Southern Cross University, and the Indonesian National Research and Innovation Agency.
Use of Uranium-based Dating:
A new dating technique utilizes uranium series (U-series) analysis on calcite deposits above cave art.
The laser-based analysis measures uranium-thorium ratios to accurately date paintings, highlighting significant age revisions for cave art in Sulawesi.
About Leang Karampuang Cave
Leang Karampuang Cave is situated in the Maros-Pangkep karst region of South Sulawesi, Indonesia.
The cave is renowned for its ancient rock art and archaeological findings, providing insights into early human civilization in the region.
It features some of the oldest known hand stencils and paintings of animals, believed to be created by early humans.
Key features of the Cave Paintings:
A painted scene depicting humans interacting with a pig on the cave wall.
The artwork features a pig standing upright alongside three smaller human-like figures, all painted in a single shade of dark red pigment.
This painting predates the cave art found in El Castillo, Spain, dating back around 40,800 years ago, marking it as older than European cave paintings.
Significance of the Painting
According to researchers, the figures in the painting depict dynamic action, suggesting a narrative or story being told.
The discovery pushes back the origin of figurative art among Homo sapiens, indicating a rich history of storytelling through visual art in early human societies.
While Neanderthals began cave markings earlier, around 75,000 years ago, these were primarily non-figurative.
The Sulawesi cave art suggests an advanced cultural and artistic development among early humans, predating similar European art by millennia.
Contemporary Period in the Indian Subcontinent:
Homo sapiens had already migrated to various parts of the Indian subcontinent by this time.
Evidence suggests human habitation in India dates back to at least 70,000 years ago, with notable archaeological sites like Bhimbetka in Madhya Pradesh showing signs of early human activity and rock art.
PYQ:
[2017] The painting of Bodhisattva Padmapani is one of the most famous and oft-illustrated paintings at
From UPSC perspective, the following things are important :
Prelims level: What is Aphelion?
Mains level: Does aphelion affect temperatures on Earth?
Why in the News?
Early on July 5, the Earth reached aphelion, its farthest distance from the sun in our year-long journey around our nearest star.
What is Aphelion?
Aphelion is a term used in astronomy to denote the point in the orbit of a planet or celestial body where it is farthest from the Sun.
The Earth’s orbit around the Sun is not a perfect circle but rather an ellipse, with the Sun situated at one of the two foci of the ellipse.
Aphelion marks the moment when Earth is at its maximum distance from the Sun along this elliptical path.
The concept of aphelion was crucial in Johannes Kepler‘s formulation of his laws of planetary motion during the 17th century.
How far is the Earth from the Sun at aphelion?
At aphelion, which occurs around July 4th– 5th each year, the Earth is approximately 152.1 million kilometers (about 94.5 million miles) away from the Sun.
This distance is about 3.3% greater than its average distance from the Sun, known as its semi-major axis, which is about 147.1 million kilometers.
Does aphelion affect temperatures on Earth?
Aphelion has a slight effect on temperatures on Earth, but its impact is minimal compared to other factors such as axial tilt and atmospheric circulation patterns.
Despite being farther from the Sun during aphelion, the Earth’s tilt towards the Sun during the northern hemisphere’s summer results in warmer temperatures for that region.
This phenomenon is primarily responsible for the seasons on Earth.
What would happen if there were no aphelion?
If Earth’s orbit were perfectly circular, without aphelion or perihelion (the closest point to the Sun), the distance between Earth and the Sun would remain constant throughout the year.
This scenario would result in less variation in seasonal temperatures between the northern and southern hemispheres.
The distinct seasons that we experience today, which are essential for ecological diversity and agricultural cycles, would be significantly altered.
PYQ:
[2013] Variations in the length of daytime and night time from season to season are due to-
(a) The earth’s rotation on its axis
(b) The earth’s revolution round the sun in an elliptical manner
