From UPSC perspective, the following things are important :
Prelims level: Government initiatives related to Employment
Mains level: Significance of recent initiatives in the Budget (2024-2025)
Why in the news?
The 2024-25 Budget is a progressive proposal featuring several commendable initiatives aimed at boosting India’s economic growth and advancing social progress.
Prioritized areas in the recent Budget 2024-25
Job Creation and Skilling: The budget allocates ₹1.48 lakh crore towards job creation, employment, and skilling, emphasizing the importance of developing a skilled workforce to support India’s service sector. This shift from a focus on manufacturing to skilling reflects a strategic move towards building a service-oriented economy.
Energy Transformation: There is significant investments are directed towards energy transformation initiatives, including solar panel manufacturing and nuclear energy development. The budget allocates ₹89,287 crore to crucial sectors, indicating a commitment to sustainable energy solutions.
Healthcare Initiatives: The budget includes measures to enhance healthcare access, such as customs duty exemptions on life-saving cancer medications and components for advanced medical equipment.
Technology and Innovation: A framework with nine priorities is introduced to leverage advanced technology and foster collaboration between the government and private sector, promoting growth and innovation across various sectors.
For example: The budget allocates ₹1 lakh crore specifically for research and innovation, accompanied by a 50-year interest-free loan.
What does the budget say on Accessibility and Affordability?
Customs Duty Exemptions on drugs: The budget exempts customs duties on three essential cancer medications, making them more affordable and accessible to patients. This move addresses the high costs associated with cancer treatments, which often pose significant barriers to access.
Support for Medical Equipment: Customs duties are also waived for components of X-ray tubes and digital detectors, which are crucial for advanced medical technologies.
Alignment with Domestic Capacity: The budget emphasizes aligning customs duties with domestic capacity under the phased manufacturing program, fostering a conducive environment for startups and encouraging local manufacturing.
On Prioritizing Inclusivity and Fiscal Prudence
Women’s Workforce Participation: The budget focuses on boosting women’s participation in the economy through targeted initiatives such as hostels, creches, and skilling programs.
According to a report by McKinsey, India can increase its 2025 GDP, estimated at $4.83 trillion, by 16%-60% simply by enabling women to participate in the economy on par with men
Research and Development: With India spending only 0.7% of its GDP on research, the budget encourages private sector collaboration with the government to increase investments in R&D. This collaboration is vital for fostering innovation and ensuring sustainable economic growth.
Public-Private Partnerships: The budget promotes public-private partnerships to enhance healthcare delivery and infrastructure, reflecting a commitment to inclusivity and collaboration in achieving economic and social goals.
Conclusion: The government should expand the scope of skilling programs to cover a wider range of sectors and skill levels while ensuring the workforce is equipped to meet the evolving demands of the service-oriented economy.
Explained | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Comparision between President and Governor
Mains level: Immunity Under Article 361
Why in the news?
The Supreme Court has agreed to examine if the immunity granted to the President and Governors under Article 361 violates fundamental rights and constitutional principles.
What is the case?
The Supreme Court is examining a petition filed by a contractual woman employee of the West Bengal Raj Bhavan, who has accused Governor C.V. Ananda Bose of sexual harassment and molestation.
The petitioner argues that the “absolute immunity” granted to the Governor under Article 361 of the Constitution undermines her fundamental rights and the fairness of the legal process.
Immunity Under Article 361:
Article 361 provides immunity to the President and Governors from being answerable to any court for acts performed in their official capacity.
Specifically, clause (2) of Article 361 states that no criminal proceedings can be initiated or continued against the President or a Governor during their term of office. The petitioner contends that this immunity should not apply to illegal acts that violate fundamental rights.
The petitioner argues that the Governor’s immunity caused negligent handling of her complaint by police, delaying justice and hindering investigations.
The Supreme Court will determine if Article 361(2) immunity is absolute or can be challenged in serious cases like sexual harassment.
Does Article 361 Grant Absolution to the Governor against Criminal Charges?
Scope of Article 361: Article 361 does grant significant immunity to Governors, shielding them from criminal proceedings during their term. However, the immunity is not absolute.
The first provision allows for the conduct of the President to be reviewed by designated bodies for impeachment, while the second provision allows for civil suits against the government.
Judicial Precedents: Previous court rulings have indicated that while Governors enjoy immunity under Article 361, this does not prevent judicial scrutiny of their actions, especially if those actions infringe upon fundamental rights.
For example, in the case of Rameshwar Prasad vs. Union of India, the Supreme Court stated that civil immunity does not preclude challenges based on malafide actions.
Potential for Legal Challenge: The current case may set a precedent for how Article 361 is interpreted regarding criminal acts committed by Governors.
If the court finds that immunity does not apply to acts that violate fundamental rights, it could pave the way for accountability and legal recourse for victims of misconduct by constitutional authorities.
Conclusion: The Supreme Court’s interpretation of Article 361 could redefine the immunity of Governors, potentially allowing criminal proceedings for actions violating fundamental rights, thereby ensuring accountability and justice for victims.
Mains PYQ:
Q Discuss the essential conditions for the exercise of the legislative powers by the Governor. Discuss the legality of the re-promulgation of ordinances by the Governor without placing them before the Legislature. (UPSC IAS/2022)
From UPSC perspective, the following things are important :
Prelims level: About PMJAY
Mains level: Challenges to the Inclusivity of PMJAY
Why in the news?
With the worst of the COVID-19 pandemic behind us (though the World Health Organization warns the virus still lingers), the Union Budget shifted focus to economic growth levers like infrastructure and employment.
It was also hoped that recognizing population health as crucial for economic growth would lead to continued investment in strengthening health systems.
A budget estimate refers to the initial allocation of funds designated for various programs, departments, or projects within a fiscal year. It represents the government’s expectations regarding how much money will be required to meet planned expenditures.
In contrast, revised estimates come into play later in the fiscal year. After assessing the actual expenditures and needs after the first six months, the government may adjust the initial budget estimates based on how much of the allocated funds have been utilised and what additional resources may be necessary.
Comparisons with Previous Years
Budgetary Estimates: The comparison of the Budget Estimates (BE) for health between 2023-24 and 2025-25, reveals minimal increases:
Overall Health Ministry Budget: 1.98% increase
National Health Mission (NHM): 1.16% increase
PMJAY: 1.4% increase
Overall Health Ministry budget: The present allocation made in the current Budget is deemed to be inadequate for expanding health coverage services and enhancing the impact of flagship health programs, particularly in light of rising non-communicable diseases and the goal of universal health coverage by 2030.
Misleading Comparisons: When we compare the Budget estimates with the previous Revised estimates (RE) the budgetary increase of nearly 12% is misleading, as the RE reflects actual spending rather than the program’s needs.
Missed Opportunities
Health Workforce Development: While the budget mentioned an increase in new medical colleges, it failed to address the critical need for a multi-layered, multi-skilled health workforce.
Drug Pricing Mechanisms: Although customs duties were waived on three anti-cancer drugs. However, the budget missed the chance to implement price controls and pooled procurement strategies that could have lowered drug costs across both public and private healthcare sectors. Establishing such mechanisms could enhance the affordability and accessibility of essential medications.
Climate-Resilient Agriculture: While the budget committed to climate-resilient agriculture, which is crucial for food security, it did not sufficiently link these efforts to health outcomes, such as nutrition and public health, which are critical in the context of rising health challenges.
Limited Coverage of Middle Class: PMJAY primarily targets the bottom 40% of the population based on economic status, leaving the middle class without coverage.
Focus on Secondary and Tertiary Care: The program emphasizes secondary and tertiary healthcare, often neglecting primary care services. This approach limits comprehensive health coverage and fails to address preventive healthcare needs, which are crucial for achieving UHC.
Awareness and Accessibility Issues: There is a significant disparity in awareness and accessibility of PMJAY across states.
For example, awareness is notably higher in Tamil Nadu (80%) compared to Bihar (20%).
Way forward:
Targeted Funding for Flagship Programs: Need to allocate a more substantial increase in the budget for the National Health Mission (NHM) and Pradhan Mantri Jan Arogya Yojana (PMJAY) to the eradication of non-communicable diseases, tuberculosis elimination by 2025.
Strengthen Primary Healthcare: Govt. should ensure adequate funding for primary healthcare services, which form the foundation for preventive and community health initiatives.
Mains PYQ:
Q The public health system has limitations in providing universal health coverage. Do you think that the private sector can help in bridging the gap? What other viable alternatives do you suggest? (2015)
The Indian Council of Medical Research (ICMR) Regional Medical Research Centre for North East has developed the “world’s cheapest CRISPR Cas-based TB testing system”.
Back2Basics: CRISPR-Cas9 Technology
CRISPR-Cas9 stands for Clustered Regularly Interspaced Short Palindromic Repeats and CRISPR-associated protein 9.
It is a technology that allows geneticists and researchers to edit parts of the genome by altering sections of the DNA sequence.
Emmanuelle Charpentier and Jennifer Doudna’s work on CRISPR-Cas9 as a ‘molecular scissor’ earned them the 2020 Nobel Prize in chemistry.
The system consists of two key components:
Cas9: This is the enzyme that acts like a pair of molecular scissors. It is responsible for cutting the DNA strand at a specific location, allowing for the removal, addition, or alteration of DNA at that site.
Guide RNA (gRNA): This is a piece of RNA that is designed to find and bind to a specific sequence of DNA that matches its code. The gRNA guides the Cas9 enzyme to the exact spot in the genome where an edit is desired.
Mechanism:
The process begins with the design of a gRNA that matches the DNA sequence where an edit is needed.
Once inside the cell, the Cas9 enzyme and the gRNA form a complex that can identify and bind to the target DNA sequence.
The Cas9 then cuts the DNA at this location.
After the DNA is cut, the cell’s natural repair mechanisms can be harnessed to add or remove genetic material, or to make specific changes to the DNA.
Applications: Used for gene editing to correct genetic disorders, develop targeted cancer therapies, enhance diagnostics for infectious diseases, and create personalized medicine approaches.
About theNew TB Detection System
The system can detect TB bacteria using DNA from a patient’s saliva at a very low cost.
Specific DNA sequences unique to Mycobacterium tuberculosis (the bacteria causing TB) are identified.
It can identify the bacteria in preliminary stages and test over 1,500 samples simultaneously within approximately two hours.
The technology is simple enough to be used in primary health centres in villages.
TB Situation in India:
TB kills an estimated 480,000 Indiansannually, or over 1,400 patients every day.
India has more than amillion ‘missing’ TB cases each year, which remain undiagnosed or inadequately diagnosed and treated in the private sector.
National Goals for Elimination of TB:
Pradhan Mantri TB Mukt Bharat Abhiyan (2022): It is stipulated to meet the goal of ending the TB epidemic by 2025 from the country, five years ahead of the Sustainable Development Goals (SDG) for 2030.
Nikshay Poshan Yojana (2018): Launched in 2018, this scheme provides nutritional support to TB patients. Under this scheme, TB patients receive a direct benefit transfer (DBT) of Rs. 500 per month to purchase food.
PYQ:
[2019] What is Cas9 Protein that is often mentioned in news?
(a) A molecular scissors used in targeted gene editing
(b) A biosensor used in the accurate detection of pathogens in patients
(c) A gene that makes plants pest-resistant
(d) A herbicidal substance synthesized in genetically modified crops
[2014] Can overuse and free availability of antibiotics without Doctor’s prescription, be contributors to the emergence of drug-resistant diseases in India? What are the available mechanisms for monitoring and control? Critically discuss the various issues involved.
The Gandhi Sagar sanctuary in Madhya Pradesh is the preferred location for the next batch of cheetah’s relocation plan.
However, Banni in the Rann of Kutch, Gujarat is also being prepared to house some of them.
Cheetah Reintroduction in India:
In India, cheetahs disappeared in the early 1950s due to hunting and the loss of their habitat.
The ‘Action Plan for Reintroduction of Cheetah in India /Project Cheetah (2022)’ aims to bring cheetahs from African countries to various national parks.
It is spearheaded by the National Tiger Conservation Authority (NTCA).
Recently, cheetahs from Namibia were reintroduced in Kuno National Park, Madhya Pradesh.
Cheetah are listed as VULNERABLE by the IUCN; Schedule II of the Wild Life (Protection) Act, 1972.
Kuno NP and Gandhi Sagar has an ideal habitat parallel to Maasai Mara (a National Park) in Kenya, suitable for cheetahs.
About Gandhi Sagar Wildlife Sanctuary
It is located in western Madhya Pradesh and covers an area of 368.62 sq km.
It is a flat rocky plateau characterized by shallow topsoil and exposed sheetrock.
It is divided by the Chambal River, with the Gandhi Sagar dam and reservoir within its boundaries.
Flora and Fauna:
Flora: The sanctuary features a savannah ecosystem with open grasslands interspersed with dry deciduous trees. Riverine valleys within the sanctuary support evergreen vegetation.
Fauna: The sanctuary is home to a diverse range of wildlife, including species like leopards, sloth bears, striped hyenas, grey wolves, golden jackals, jungle cats, Indian foxes, and marsh crocodiles.
About Banni Grasslands:
The Banni Grassland is located in the Kutch district of Gujarat, covering around 3,847 square km.
The climate is arid and semi-arid, with extremely hot summers (temperatures above 45°C) and mild winters (12°C to 25°C), receiving 300-400 mm of annual rainfall mainly during the monsoon.
Flora: Grasses such as Dichanthium, Sporobolus, and Cenchrus species, with salt-tolerant plants, shrubs, and trees like Acacia and the invasive Prosopis juliflora.
Fauna: Indian wolf, hyena, chinkara, Great Indian Bustard, flamingos, and various raptors, reptiles, and invertebrates.
It is inhabited by pastoral communities like the Maldharis, who rely on livestock grazing (cattle, buffalo, and sheep) for their livelihood.
Agriculture is limited due to arid conditions, with some areas used for salt production.
PYQ:
[2024] Consider the following statements:
1. Lions do not have a particular breeding season.
2. Unlike most other big cats, cheetahs do not roar.
3. Unlike male lions, male leopards do not proclaim their territory by scent marking.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
[2012] Consider the following: (2012)
Black-necked crane
Cheetah
Flying squirrel
Snow leopard
Which of the above are naturally found in India?
(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2 and 4 only
(d) 1, 2, 3 and 4
From UPSC perspective, the following things are important :
Prelims level: Typhoon Gaemi
Why in the News?
After making landfall in the Philippines, Typhoon Gaemi is heading towards Taiwan.
What is a Typhoon?
A typhoon is a mature tropical cyclone that forms in the Northwest Pacific Ocean, primarily between 100°E and 180°E.
It is characterised by strong winds, and heavy rain, and can cause significant damage due to high wind speeds, storm surges, and flooding.
Factors causing its formation:
It needs sustained ocean temperatures of 26.5°C or higher.
High moisture content in the mid-troposphere.
Presence of the Coriolis force to initiate rotation.
Minimal vertical wind shear to allow for storm growth.
Atmospheric instability to promote rising motion and thunderstorm activity.
An initial low-pressure area or tropical wave to trigger development.
Formation Regions: Northwest Pacific Ocean in areas east of the Philippines, southeast of Japan, and near Taiwan; South China Sea and in Western North Pacific near the Mariana Islands and Guam.
Note: Typhoons do not form in the South Atlantic Ocean and the southeastern Pacific Ocean because of cooler sea surface temperatures and higher wind shear in those regions.
PYQ:
[2015] In the South Atlantic and South-Eastern Pacific regions in tropical latitudes, cyclone does not originate. What is the reason?
(a) Sea surface temperatures are low
(b) Inter-Tropical Convergence Zone seldom occurs
(c) Coriolis force is too weak
(d) Absence of land in those regions
Prelims Only | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 21, Article 19(1)(e), Right to Shelter
Why in the News?
The Supreme Court emphasised the need to balance railway infrastructure development in Haldwani, Uttarakhand, with the fundamental right to shelter nearly 50,000 people accused of illegally encroaching on railway land.
What was the Case?
The hearing was based on an application filed by the Railways seeking to modify a January 2023 Supreme Court order.
The order had stayed a Uttarakhand HC direction to evict the families within a week, even using paramilitary forces.
The application pointed out that the Ghaula River flood has disrupted railway operations in the region and that more land was urgently needed to lay new tracks.
What is the Right to Shelter?
The right to shelter is derived from the Right to Life under Article 21 of the Constitution of India, which guarantees the protection of life and personal liberty.
Article 19(1)(e) provides the Right to reside and settlein any part of the territory of India.
Judicial pronouncements related to it:
Olga Tellis v. Bombay Municipal Corporation(1985): The Supreme Court recognized the right to livelihood as a part of the right to life under Article 21.
Chameli Singh v. State of Uttar Pradesh(1996): The Supreme Court declared that the right to shelter is a fundamental right under Article 21. It includes adequate living space, safe and decent structures, clean surroundings, light, air, water, electricity, and sanitation.
Ahmedabad Municipal Corporation v. Nawab Khan Gulab Khan(1997): The Supreme Court directed the state to construct affordable houses for the poor, reiterating the state’s duty to provide shelter and make the right to life meaningful.
Various Legislations supporting the Right to Shelter:
The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013
The Slum Areas (Improvement and Clearance) Act, 1956
PYQ:
[2021] Consider the following statements :
‘Right to the City’ is an agreed human right and the UN-Habitat monitors the commitments made by each country in this regard.
‘Right to the City’ gives every occupant of the city the right to reclaim public spaces and public participation in the city.
‘Right to the City’ means that the State cannot deny any public service or facility to the unauthorized colonies in the city.
Which of the statements given above is/are correct?
From UPSC perspective, the following things are important :
Prelims level: Schemes related to the social sector;
Mains level: Employment challenges;
Why in the News?
Budget 2024 maintains the same approach as previous years regarding social sector allocations.
Decreasing allocations in the Budget for social sector schemes
Education Sector: The allocations for school education increased by ₹5,000 crore and for higher education by ₹3,000 crore. The increased recoveries from fees and self-financing schemes suggest a shift towards cost recovery in educational institutions.
Health Sector: The allocation for the Department of Health and Family Welfare rose by only ₹1,500 crore.
Food Subsidy: There is a limited increase in food subsidies despite rising economic costs and the need to update coverage based on the latest population figures.
Shift in Approach: The government giving greater emphasis on cost-effectiveness and privatization in education and health, shifting focus towards contributory schemes like the Atal Pension Yojana.
Social Sector Schemes in Budget 2024-25
Social Protection Schemes:
POSHAN Scheme: There is a slight increase from ₹11,600 crore to ₹12,467 crore, but still less than the actual expenditure in 2022-23.
Saksham Anganwadi Scheme: The allocation increased to ₹21,200 crore from ₹20,554 crore, but no increase in salaries for Anganwadi workers or honorarium for mid-day meal cooks.
Maternity and Social Assistance:
Samarthya Scheme: The budget reduced to ₹2,517 crore from ₹2,582 crore. The PMMVY scheme’s maternity benefits have remained unchanged since 2017.
NSAP: Allocation for social security pensions remains unchanged at ₹9,652 crore, reducing real coverage and value.
Schemes for the Unemployed
The ‘Prime Minister’s Package for Employment and Skilling’ includes government-sponsored internships, formalization of jobs through incentives for EPFO enrolments, and skill-development programmes
An allocation of ₹2 lakh crore over five years for the employment package, linked to industry response
Schemes for Street Vendors
The PM SVANidhi Scheme (PM Street Vendor’s AtmaNirbhar Nidhi) aims to benefit over 50 Lakh street vendors across India
All lending institutions, including NBFCs, are participating in the scheme to provide affordable loans to street vendors
Employment Challenges
Stagnant Wages and Dampened Demand: The Indian economy faces significant challenges with stagnant wages, which affect consumer demand. This stagnation can hinder overall economic growth and employment generation.
Reliance on the Private Sector for Job Creation: The government is increasingly looking to the private sector to address employment challenges.
Initiatives like the ‘Prime Minister’s Package for Employment and Skilling’ aim to incentivize private sector job creation through government-sponsored internships and skill development programs.
Limited Budgetary Allocations: The budgetary allocations for employment-related schemes are limited, with the entire employment package amounting to ₹2 lakh crore over five years.
Focus on Supply-Side Solutions: The current approach emphasizes supply-side measures to incentivize the private sector rather than addressing the underlying demand-side issues, such as low consumer spending and economic uncertainty.
Way forward:
Enhance Social Sector Investments: The government should significantly increase budget allocations for critical social sector schemes, particularly in education, health, and social protection.
Comprehensive Employment Strategy: Need to develop a holistic approach to employment that addresses both supply and demand-side issues.
From UPSC perspective, the following things are important :
Prelims level: Data trends in economic survey;
Mains level: Major five issues with the Indian Economy;
Why in the News?
The 2023-24 Economic Survey highlights realistic challenges for India’s growth, projecting GDP growth at 6.5%-7% for FY 2024-25 despite 8% growth in FY 2023-24.
What are the major five issues with the Indian Economy?
Weak Demand: In India, an unfavourable environment for FDI growth is due to high interest rates in developed countries, which increases the cost and opportunity cost of investment in India.
Dependence on China: Due to over-reliance on China for imports, particularly in key sectors like renewable energy, limits India’s manufacturing capabilities and increases vulnerability to geopolitical tensions.
Tepid Private Investment: Despite tax cuts aimed at stimulating capital formation, the corporate sector has not significantly increased investment, leading to a lack of job creation and economic dynamism.
Employment Challenges: The need to generate approximately 78.5 lakh jobs annually in the non-farm sector until 2030 to accommodate the growing workforce, coupled with insufficient data on job creation, complicates labour market analysis.
Infrastructure Deficiencies: Inadequate infrastructure, such as roads, railways, and sanitation, continues to hinder economic development and efficiency, requiring substantial investment and reform to improve productivity.
What are the suggestions given in the Economic Survey?
Private Sector’s Role in Job Creation: The corporate sector should take responsibility for creating jobs, as it is in their enlightened self-interest.
Embracing Healthy Lifestyle: Indian businesses should learn from India’s traditional lifestyle, food, and recipes to live healthily and in harmony with nature.
Focusing on Agriculture: The farm sector can generate higher value addition, boost farmers’ income, create opportunities for food processing and exports, and make the sector attractive to urban youth.
Removing Regulatory Bottlenecks: Licensing, inspection, and compliance requirements imposed by various levels of government are an onerous burden on businesses, especially MSMEs.
Improving Data Quality: The lack of availability of timely data on the absolute number of jobs created in various sectors precludes an objective analysis of the labour market situation.
Way forward:
Enhance Infrastructure Development: Need to prioritize investments in essential infrastructure such as roads, railways, and sanitation to boost economic efficiency and productivity.
Strengthen Data Collection and Analysis: The government should develop robust mechanisms for timely and accurate data collection on employment and other key economic indicators.
Mains PYQ:
Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (2019)
From UPSC perspective, the following things are important :
Prelims level: Bordering countries of India;
Mains level: Neighbourhood First Policy;
Why in the News?
The Union Budget presented by Finance Minister Nirmala Sitharaman prioritized India-funded projects in neighbouring countries, receiving the majority of the Ministry of External Affairs’ allocation.
What are the India-funded projects in the neighbourhood?
India has provided significant aid to Nepal, including funding for hydroelectric power plants like Pardi, Trishuli and Devighat.
In Afghanistan, India has provided over $3 billion in assistance and was involved in over 400 projects across 34 provinces, including major infrastructure projects like the Salma Dam and the Zaranj-Dalaram Highway.
In Myanmar, Kaladan Multi-Modal Transit Transport Projects is $484 million project aims to connect the northeastern Indian state of Mizoram to the Sittwe port in Myanmar’s Rakhine state.
In the 2024-25 budget, India allocated ₹700 crore to Nepal (up from ₹550 crore), ₹245 crore to Sri Lanka (up from ₹150 crore), and ₹30 crore to Seychelles (up from ₹10 crore).
Reasons for reduced focus on Bhutan
Bhutan, the largest recipient of MEA’s annual allocation, saw a dip in funding by ₹332.02 crore to ₹2,068.56 crore.
However, this slight reduction does not indicate a decrease in funding for projects in Bhutan, as India and Bhutan recently cleared 61 projects amounting to ₹4,958 crore.
Importance of Bhutan for India:
Strategic Importance:
Bhutan shares borders with India and China, acting as a buffer state between the two. Its strategic location is crucial for India’s security interests.
India has provided assistance to Bhutan in areas like defence, infrastructure, and communication to maintain its sovereignty and territorial integrity.
During the 2017 Doklam standoff between India and China, Bhutan allowed Indian troops to enter its territory to resist Chinese incursions.
Economic Importance:
India is Bhutan’s largest trading partner, accounting for 98% of its exports and 90% of its imports.
Bhutan’s hydropower potential is a significant source of revenue, and India has been instrumental in assisting Bhutan in developing these projects.
India provides substantial economic support to Bhutan. In 2015-16, India’s budgetary support to Bhutan stood at ₹61.60 billion, making it the largest recipient of India’s foreign aid.
Cultural Ties: Bhutan and India share strong cultural ties, as both countries are predominantly Buddhist
Future scope for India’s Neighbourhood Policy (Way forward)
Strengthening Bilateral Ties: Need to negotiate free trade agreements, promote investments, and collaborate on infrastructure projects to boost economic ties.
For example, India and Bangladesh have made significant progress in recent years, with the inauguration of the Maitri Setu bridge connecting Tripura to Bangladesh. The two countries are also working on the Akhaura-Agartala rail link to enhance connectivity.
Promoting Regional Cooperation: Need to collaborate on regional initiatives such as the BBIN (Bangladesh, Bhutan, India, Nepal) Motor Vehicles Agreement for seamless movement of goods and people.
For instance, India has been actively involved in the BIMSTEC Coastal Shipping Agreement and the BIMSTEC Grid Interconnection project to enhance regional connectivity and energy cooperation.
Mains PYQ:
Q Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Prelims level: Trend in Defence budgeting;
Mains level: Significance of indigenisation in defence sector ;
Why in the News?
Union Finance Minister Nirmala Sitharaman has allocated ₹6.22 lakh crore for the Defence Ministry for 2024-25, matching the amount presented in the interim Budget in February.
Budgetary allocation for different sectors
Border Roads Organisation (BRO): The BRO received a significant increase in funding, with an allocation of ₹6,500 crore, aimed at improving border infrastructure and promoting socio-economic development in border areas.
Indian Coast Guard: The allocation for the Indian Coast Guard is ₹7,651.8 crore, which is 6% lower than the revised estimates for FY24. Of this, ₹3,500 crore is designated for capital expenditure to enhance maritime capabilities.
Innovation in Defence: An additional ₹400 crore has been allocated for innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme, aimed at engaging startups and MSMEs in developing indigenous defence technologies.
Overall Allocation Breakdown: The allocation for the Defence Ministry includes 27.66% for capital expenditure, 14.82% for revenue expenditure, 30.66% for pay and allowances, 22.7% for defence pensions, and 4.17% for civil organizations under the Defence Ministry.
Marginal Capex Push
Slight increase in capital expenditure: The budget reflects a marginal increase in capital expenditure, focusing on strengthening the capabilities of the armed forces and enhancing domestic procurement.
Strategic infrastructure development: The increased allocation to the BRO and the Coast Guard indicates a strategic push towards improving infrastructure in border areas and maritime security, though the overall capital push remains modest.
Focus on Indigenous solutions: The emphasis on domestic capital procurement and innovation through the iDEX scheme aims to bolster self-reliance in defence technology, fostering a more robust Indigenous defence industry.
Long-term strategic goals: The allocations are aligned with long-term strategic goals, including enhancing operational preparedness and infrastructure development in sensitive regions, although the overall growth in capital expenditure may be viewed as conservative.
Balancing defence needs with budget constraints: While the budget seeks to address critical defence needs, the slight reduction in the overall percentage of the budget allocated to defence suggests a balancing act between defence priorities and other pressing social and economic needs.
Way forward:
Enhance Focus on Indigenous Production: The government should further promote indigenous production capabilities by increasing investments in research and development, and by providing incentives for domestic manufacturers to produce advanced defence technologies.
Strengthen Infrastructure Development: The need for continued emphasis on infrastructure projects, particularly in border areas, should be prioritized to enhance national security and socio-economic development, ensuring that allocations are effectively utilized for maximum impact.
From UPSC perspective, the following things are important :
Prelims level: Climate Finance Taxonomy
Why in the News?
The 2024 Union Budget, presented by Finance Minister, includes developing a taxonomy for climate finance.
The aim is to enhance the availability of capital for climate adaptation and mitigation.
What is a Climate Finance Taxonomy?
A climate finance taxonomy is a classification system that identifies which economic activities can be marketed as sustainable investments.
It serves as a guide for investors and financial institutions to direct capital towards projects that contribute to climate adaptation and mitigation, aligning with broader environmental goals.
Significance of a Climate Finance Taxonomy
Net-Zero Economy: With global temperatures rising and the adverse effects of climate change worsening, countries need to transition to a net-zero economy.
Alignment with Transition Pathways: Taxonomies help ascertain if economic activities are aligned with credible, science-based transition pathways.
Deployment of Climate Capital: They provide an impetus for the deployment of climate capital by directing investments towards sustainable projects.
Reduction of Greenwashing Risks: Taxonomies help reduce the risks of greenwashing by providing clear criteria for what constitutes a sustainable investment.
Why does India need a Green Taxonomy?
According to the IFC, India needs an estimated $10.1 trillionto achieve net-zero by 2070.
Public investments alone can’t match this goal, calling for standardization in investments.
Benefits for India
For India, a taxonomy could attract more climate funds from international sources.
Currently, green finance flows in India are falling short of the country’s needs, accounting for only around 3% of total FDI inflows, according to the Landscape of Green Finance in India 2022 report by the Climate Policy Initiative.
A lack of clarity on what constitutes sustainable activity is a significant reason for the low green finance flows. A taxonomy would address this issue.
India’s Climate Commitments:
India aims to achieve a net-zeroeconomyby 2070.
The country has pledged to reduce the emissions intensity of its GDP by 45% by 2030, compared to the 2005 level.
India has also committed to achieving about 50% of its cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
Steps taken by India:
In January 2021, India established a task force on sustainable finance under the Department of Economic Affairs, Ministry of Finance.
The task force’s objectives include creating a framework for sustainable finance, establishing pillars for a sustainable finance roadmap, suggesting a draft taxonomy of sustainable activities, and creating a framework of risk assessment by the financial sector.
In April 2021, the RBI joined the Central Banks and Supervisors Network for Greening the Financial System (NGFS) as a member.
RBI is also a member of a task force on climate-related financial risks set up by the Basel Committee on Banking Supervision and the International Platform on Sustainable Finance.
Potential for Green Investments in India
According to a report by the International Finance Corporation (IFC), India has a climate-smart investment potential of $3.1 trillion from 2018 to 2030.
The largest investment opportunity lies in the electric vehicle segment, with a potential of $667 billion as India aims to electrify all new vehicles by 2030.
The renewable energy sector also presents a substantial investment opportunity, estimated at $403.7 billion.
International Adoption of Taxonomies
Many countries have either started developing or have finalized their taxonomies.
Countries with developed taxonomies include South Africa, Colombia, South Korea, Thailand, Singapore, Canada, and Mexico.
The European Union has also developed its own taxonomy.
PYQ:
[2016] With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct?
The Agreement was signed by all the member countries of the UN, and it will go into effect in 2017.
The Agreement aims to limit the greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2ºC or even 1.5ºC above pre-industrial levels.
Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
From UPSC perspective, the following things are important :
Prelims level: Angel Tax
Why in the News?
Finance Minister announced the abolition of the angel tax, aiming to strengthen the startup ecosystem and support innovation in India.
What is 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,f lexible terms and shorter investment horizon.
What is Angel Tax?
Referred to as Angel Tax, this rule is described in Section 56(2)(vii)(b) 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 by the Finance Actin 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 fundraisingwith 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.
Key Issues with Angel Tax
Share Valuation: The tax impacted the valuation of shares, causing complications for startups in raising funds.
Discounted Cash Flow (DCF) Method: Issues arose with the treatment of estimated figures in the DCF method, leading to disputes.
Scrutiny of Funding Sources: The scrutiny of funding sources and investor credibility added another layer of complexity for startups.
Retrospective Application: The retrospective application of the tax and its effect on the conversion of convertible instruments into equity were also significant points of dispute.
Significance for the Startup Community
Startups has long advocated for a more supportive and less restrictive environment for fundraising.
With this change, the government aims to create a more favourable atmosphere for innovation and investment in India.
PYQ:
[2014] What does venture capital mean?
(a) A short-term capital provided to industries.
(b) A long-term start-up capital provided to new entrepreneurs.
(c) Funds provided to industries at times of incurring losses.
(d) Funds provided for replacement and renovation of industries.
From UPSC perspective, the following things are important :
Prelims level: Vishnupad and Mahabodhi Temples; Kashi Vishwanath Temple
Why in the News?
Finance Minister announced during her Union Budget speech that corridor projects will be built for the Vishnupad Temple at Gaya and the Mahabodhi Temple at Bodh Gaya in Bihar.
These will be modelled on the Kashi Vishwanath Temple Corridor, to transform them into world-class pilgrim and tourist destinations.
About the Vishnupad Temple at Gaya
Details
Dedicated to
Lord Vishnu
Significance
Contains a 40 cm long footprint of Lord Vishnu; considered sacred in Hinduism; attracts pilgrims for “Pind Daan” rituals.
Historical Importance
Believed to be over 1000 years old; associated with various legends and historical references in Hindu texts.
Architecture
Built in Shikhara style;
Features intricate carvings and silver-plated flagposts;
Constructed of grey granite blocks.
Built by
Queen Ahilyabai Holkar of Indore in 1787.
Festivals and Rituals
Major site for “Pind Daan” rituals during Pitru Paksha;
Attracts thousands of pilgrims during this period.
Mythology
The footprint is believed to be where Lord Vishnu placed his foot to subdue the demon Gayasur.
Associated River
Located on the banks of the Phalgu River, considered sacred for ritual offerings.
Access and Visitation
Accessible year-round; major pilgrimage site with facilities for devotees.
Recent Developments
Ongoing efforts for preservation and restoration; improved infrastructure for pilgrims.
About the Mahabodhi Temple Complex:
Details
Location
Bodh Gaya, Bihar;
Significance
Marks the location where Buddha attained enlightenment
UNESCO Status
World Heritage Site since 2002
Historical Importance
One of the four holy sites related to Buddha’s life (Enlightenment).
Other holy sites: Lumbini (Birth) in Nepal, Sarnath (First Sermon) in Uttar Pradesh, Kushinagar (Death) in Uttar Pradesh
Original Construction
Built by Mauryan Emperor Ashoka around 260 BCE
Reconstruction
Reconstructed in brick during the late Gupta period (5th or 6th centuries)
Archaeological Finds
Indicates site of veneration since the Mauryan period.
Vajrasana (Diamond Throne): Located within the temple, dated to the third century BCE
Main Temple Structure
Dates from the 6th century CE, incorporates parts from 2nd or 3rd century CE
Architectural Features
Two large shikhara towers, the largest over 55 meters high
Influenced Jain, Hindu, and Buddhist architecture globally
Materials
Made mostly of brick covered with stucco
Bodhi Tree
Direct descendant of the original tree under which Buddha attained enlightenment
Traditional Accounts
Describes 7 weeks Buddha spent meditating after enlightenment at various spots within the complex
Decline and Revival
Declined after Huna invasions and early Islamic invasions.
Revived under the Pala Empire (8th-12th century).
Declined again after 12th century CE invasions by Turk armies.
From UPSC perspective, the following things are important :
Prelims level: U-WIN
Why in the News?
The government plans to roll out U-WIN, an online vaccine management portal for childhood vaccination, across the country.
Similar to CoWIN used during the Covid-19 pandemic, U-WIN aims to digitize and individualize immunization records from birth.
What is U-WIN?
Children up to 6 yearsold and pregnant mothers are registered on U-WIN using government IDs like Aadhaar and their mobile phone numbers.
Records of all 25 shotsgiven to a child and the two given to pregnant mothers are added to the platform.
It’s Working:
The platform generates a color-coded vaccination certificate.
The digital vaccine certificate can be downloaded by parents using their registered mobile numbers, eliminating the need for a physical vaccination booklet.
After each shot is administered and recorded, the date is added to the card, which also shows the due date for the next set of vaccines.
U-WIN sends SMS reminders to parents before their children are due for the next dose.
U-WIN helps locate thenearest vaccination center and book available slots.
Significance:
1) For providing Immunization:
U-WIN’s reminders to parents are likely to improve compliance with vaccination schedules.
The platform ensures portability, allowing children to receive their doses anywhere in the country, particularly benefiting children of migrant workers.
Registration at birth may help reduce the number of “zero dose” children, those who have not received any vaccinations.
2) For Health Workers:
The platform can automatically generate a due list of children in specific areas for health workers.
These data points can be utilized by other government programs and eventually connected through the ABHA (Ayushman Bharat Health Account) ID.
Integration with Existing Systems
U-WIN will link to the government’s existing eVIN platform for inventory management.
eVIN tracks all vaccine vials, from central stores to each vaccination site, monitoring doses used, wasted, and returned, and tracks real-time temperature and humidity using sensors.
U-WIN runs on the same principles and digital infrastructure as CoWIN, making adoption straightforward.
Most vaccinators are familiar with similar platforms, ensuring a smooth transition.
Zero Dose Children
In India, the coverage of the first dose of diphtheria, pertussis, and tetanus (DPT)-containing vaccine is taken as the proxy for zero dose children.
Data from WHO and UNICEF showed that while 93% of children received their first vaccine dose, there were still 1.6 million zero dose children in India in 2023.
The data also showed that 1.6 million children missed their first measles-containing vaccine in 2023, up from 1.1 million the previous year.
This is concerning as in 2022, five states — Bihar, Gujarat, Haryana, Jharkhand, and Maharashtra — reported a rise in the incidence of measles.
PYQ:
[2016] ‘Mission Indradhanush’ launched by the Government of India pertains to:
(a) Immunization of children and pregnant women
(b) Construction of smart cities across the country
(c) India’s own search for the Earth-like planets in outer space
From UPSC perspective, the following things are important :
Prelims level: Rogue Waves
Why in the News?
Rogue waves, unusually large waves compared to those before and after them, pose significant threats to ships, coastal and offshore infrastructure, and human lives.
Until now, there has been no method to forecast rogue waves.
What Are Rogue Waves?
Rogue waves are unusually large and unpredictable waves that are much larger than the surrounding waves.
They are often defined as waves that are at least twice the height of the surrounding waves.
Formation:
Rogue waves can form when swells from distant weather systems converge to create a single, amplified wave.
They may also form when ocean currents compress swells, creating strong, high waves.
Features:
Traditionally, rogue waves have been difficult to predict due to their sudden appearance and rare occurrence.
The lack of real-time forecasting methods has made it challenging to mitigate their impact effectively.
What is Sea State?
In oceanography, sea state refers to the condition of the surface of a large body of water at a specific location and time.
The World Meteorological Organization (WMO) sea state code characterizes sea state based on wave height on a scale of 0 (no waves) to 9 (waves over 14 meters).
Characteristics:
Unlike typical waves, rogue waves can appear suddenly and without warning.
They defy the average sea state, making them exceptionally dangerous.
Threats Posed by Rogue Waves:
(1) Shipping
For Ships and Vessels: Rogue waves pose a significant threat to ships and other vessels at sea. Their unexpected and massive size can lead to capsizing or severe damage.
For Offshore Infrastructure: Oil rigs, wind turbines, and other offshore structures can be heavily damaged or destroyed by rogue waves.
(2) Coastal Threats
Coastal Erosion: The sheer force of rogue waves can lead to accelerated coastal erosion, affecting beaches and shorelines.
Flooding: Rogue waves can cause sudden and severe coastal flooding, posing risks to coastal communities and ecosystems.
(3) Human Safety
Loss of Life: Rogue waves have been responsible for numerous fatalities. Between 2011 and 2018, rogue waves killed at least 386 people.
Property Damage: The impact of rogue waves on ships, coastal areas, and offshore structures can result in significant financial losses.
Advancements in Forecasting
University of Maryland mathematicians Thomas Breunung and Balakumar Balachandran have developed an artificial intelligence program capable of forecasting rogue waves.
The AI program was trained using billions of data points collected by a network of 172 ocean buoys.
The researchers analyzed 20-minute long samples recorded by ocean buoys.
PYQ:
[2017] At one of the places in India, if you stand on the seashore and watch the sea, you will find that the sea water recedes from the shore line a few kilometres and comes back to the shore, twice a day, and you can actually walk on the sea floor when the water recedes. This unique phenomenon is seen at:
Prelims Only | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 361 and its various sub-sections
Why in the News?
The Supreme Court has agreed to hear a plea seeking to redefine the constitutional immunity of state Governors.
Article 361 of the Constitution shields the President and Governors from criminal prosecution and judicial scrutiny.
The Supreme Court will interpret whether the immunity includes the registration of an FIR, initiation of a preliminary inquiry, or a magistrate taking cognisance of an offence.
Origins of Governor’s Immunity
The concept of immunity is based on the Latin maxim “rex non potest peccare” (the king can do no wrong), rooted in English legal traditions.
During the Constituent Assembly debates in 1949, member H. V. Kamath questioned whether immunity meant no proceedings could be instituted against the President or Governor during their term or only while they were in office.
The article was adopted without further debate on criminal immunity.
What are immunities under Article 361?
According to Article 361(1), the President or a Governor is not answerable to any court for the exercise of their powers and duties.
Article 361(2) ensures that NO criminal proceedings can be initiated or continued against the President or Governor during their term.
Article 361(3)prohibits the arrest or imprisonment of the President or Governor while they are in office.
Article 361(4) states that civil lawsuits for personal acts against the President or Governor cannot be initiated during their term and can only proceed two months after a written notice is given post-term.
Judicial Interpretations of Article 361:
Dr SC Barat and Anr vs. Hari Vinayak Pataskar Case (1961): Distinguished between the Governor’s official and personal actions. While official actions have complete immunity, civil proceedings for personal acts can proceed with prior notice.
Rameshwar Prasad vs. Union of India Case (2006): The Supreme Court recognized “complete immunity” for constitutional actions under Article 361(1), but allowed judicial review for actions taken with malicious intent.
Vyapam Scam Case (2015): The Madhya Pradesh High Court ruled that Governor Ram Naresh Yadav had absolute protection under Article 361(2), preventing his name from being included in the investigation to avoid undue legal harassment.
State of UP vs. Kalyan Singh Case (2017): The Supreme Court upheld that Kalyan Singh, while serving as Governor of Rajasthan, was immune under Article 361. Legal proceedings related to the Babri Masjid demolition were to resume after his term.
Telangana High Court Judgment (2024): Observed that the Constitution does not explicitly or implicitly bar judicial review of actions taken by a Governor, and stated that Article 361 immunity is personal and does not exclude judicial review.
Case for Revisiting Immunity
The debate on executive immunity is ongoing in other countries as well.
The US Supreme Court recently decided that former President Donald Trump is entitled to “absolute immunity” from criminal prosecution for official acts but not for unofficial or personal acts.
In India, the discussion is viewed within the larger context of the tension between Governors and opposition-ruled state governments.
The Supreme Court has noted instances where Governors acted with political motives.
PYQ:
[2018] Consider the following statements:
No criminal proceedings shall be instituted against the Governor of a State in any court during his term of office.
The emoluments and allowances of the Governor of a State shall not be diminished during his term of office.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
[2019] Which one of the following suggested that the Governor should be an eminent person from outside the State and should be a detached figure without intense political links or should not have taken part in politics in the recent past?
(a) First Administrative Reforms Commission (1966)
(b) Rajamannar Committee (1969)
(c) Sarkaria Commission (1983)
(d) National Commission to Review the Working of the Constitution (2000)
From UPSC perspective, the following things are important :
Prelims level: Trends in India's GDP growth rate
Why in the News?
India’s economy is projected to grow at 6.5% to 7% in the fiscal year ending March 2025.
The Economic Survey for 2023-24 highlights the need to address inequality and unemployment as policy priorities.
Policy Recommendations by Chief Economic Adviser (CEA)
Regulatory Burdens: CEA V. Anantha Nageswaran advocates for Central and State governments to reduce regulatory burdens on businesses.
Corporate Responsibility: He urges the corporate sector to create productive jobs, emphasizing their responsibility in generating employment.
Various Challenges discussed
(1) Challenges in the IT Sector:
Slowdown in Hiring: The CEA notes a significant slowdown in IT sector hiring over the last two years.
AI and Labor: He encourages the industry to use AI to augment labor rather than replace workers.
(2) Skilling Initiatives
Addressing Inequality: The Economic Survey suggests steps to tackle inequality, improve health, and bridge the education-employment gap.
Skilling Reboot: A reboot of India’s skilling initiatives is proposed to provide the industry with people having the right attitude and skills.
(3) Corporate Sector and Economic Growth
Demand and Employment: The Survey emphasizes the benefits for corporates from higher demand generated by employment and income growth.
Warning against Short-Termism: It warns against “short-termism” which can weaken economic linkages.
(4) State Capacity and Consensus Building:
Enhancing State Capacity: Enhancing state capacity is critical for the strategy to work.
Need for Consensus: The CEA stresses the need for consensus between governments, businesses, and the social sectors for effective transformation.
(5) Land Acquisition and Investment Concerns:
Land Use Norms: While the Survey does not mention land acquisition reform, it highlights the need to deregulate land use norms and consolidate farmland holdings.
Investment Cautions: The Survey cautions about private capital formation being cautious due to fears of cheaper imports, indirectly referencing China.
(6) Foreign Direct Investment (FDI) Challenges:
Attracting FDI: Attracting FDI will be challenging due to higher interest rates and developed countries encouraging domestic investments through subsidies.
Addressing Uncertainties: Despite progress, uncertainties related to transfer pricing, taxes, and import duties need to be addressed.
Structural Reforms
Existing Reforms: Structural reforms such as GST and the Insolvency and Bankruptcy Code are delivering expected results.
Next-Gen Reforms: The Survey calls for “next-gen reforms” that are bottom-up in nature to achieve sustainable, balanced, and inclusive growth.
Strategic Directions for Growth
Six-Pronged Strategy: The Survey outlines a six-pronged strategy for growth, emphasizing private sector investments and a fair share of income for workers.
Focus Areas: Other focus areas include financing the green transition, removing barriers for MSMEs, and implementing intelligent farmer-friendly policies.
Conclusion
Sustained Growth Potential: The economy can grow at over 7% on a sustained basis in the medium term by building on past reforms.
Tripartite Compact: Achieving this growth requires a tripartite compact between the Centre, States, and the private sector.
PYQ:
[2013] Economic growth in country X will necessarily have to occur if:
(a) There is technical progress in the world economy.
(b) There is population growth in X.
(c) There is capital formation in X.
(d) The volume of trade grows in the world economy.
From UPSC perspective, the following things are important :
Prelims level: Constitutional background of Reservation
Why in the News?
The Karnataka State Employment Bill, 2024, proposing private sector reservations for Kannadigas, is on hold after backlash from business and industry leaders.
What Does the Constitution Say?
Equality of Opportunity (Article 16):
Article 16(1): Guarantees equality of opportunity in public employment and prohibits discrimination based on race, religion, caste, sex, descent, place of birth, or residence.
Article 16(3): Allows Parliament to prescribe residence requirements for public office in a specific state or Union Territory, but this power does not extend to state legislatures.
Freedom of Movement and Residence (Article 19):
Article 19(1)(d): Ensures the freedom of movement throughout India.
Article 19(1)(e): Grants the right to reside and settle in any part of India.
Article 19(1)(g): Protects the right to practice any profession or carry on any occupation, trade, or business.
Legislative Powers (Article 35):
Article 35(a): Designates Parliament as the sole authority to make laws concerning residence requirements for employment or appointments to public offices, thereby restricting state legislatures from enacting such laws.
Why Is the constitutionality of the Karnataka State Employment of local candidates in the Industries, factories and Other Establishments Bill, 2024, being doubted?
Absence of Provision for Private Sector Reservation: The Constitution does not provide for reservation in the private sector, leading to concerns about the legality of such mandates at the state level.
Legislative limits on residential criteria: State Assemblies lack the power to prescribe residential criteria for private sector employment, as such powers are reserved for Parliament under Article 35(a).
Impact on Fundamental Rights:
The Bill may infringe on citizens’ rights under Article 19(1)(d) and (e), restricting their freedom of movement and right to reside or settle in different states.
The quota system might violate Article 19(1)(g), impinging on individuals’ freedom to pursue occupations of their choice.
What Is the Status of Similar Laws in Other States Such as Haryana?
Haryana State Employment of Local Candidates Act, 2020: Mandated 75% reservation in the private sector for jobs with salaries up to ₹30,000. This Act was struck down by the Punjab and Haryana High Court, and the matter is pending before the Supreme Court.
Andhra Pradesh Employment of Local Candidates in Industries/Factories Act, 2019: Proposed 75% reservation for local candidates and allowed a three-year period for training and engagement. This Act has faced legal challenges and has not been zealously implemented by the government.
Jharkhand Definition of Local Persons Bill: Initially faced resistance from the Governor over its constitutionality, especially regarding 100% reservation for locals in certain job categories. The bill was re-enacted in December 2023 despite concerns about its constitutionality.
Way forward:
Inclusive Dialogue: The Karnataka government should engage in comprehensive consultations with all stakeholders, including industry representatives, legal experts, and civil society, to understand their concerns and suggestions.
Impact Analysis: Need to conduct a detailed socio-economic impact assessment of the proposed reservation policy can provide insights into its potential benefits and drawbacks.
Mains PYQ:
Q The reservation of seats for women in the institutions of local self-government has had a limited impact on the patriarchal character of the Indian Political Process.” Comment. (2019)
