From UPSC perspective, the following things are important :
Prelims level: Bordering states of India with Bangladesh
Mains level: Initiatives related to 'Strengthening Ties and Empowering Governance'
Why in the News?
At least 130 people have died in clashes during student protests over government job quotas in Bangladesh.
Why have students in Bangladesh taken to the streets?
Opposition to Quota System: Students are protesting against the quota system for government jobs, specifically the 30% reserved for freedom fighters and their descendants, which they believe limits merit-based opportunities.
Reversal of Quota Reforms: The protests intensified after the Supreme Court restored the quota system, reversing the previous decision to abolish it. Students demand a more balanced and inclusive quota system.
Why Is the 30% quota for Freedom fighters and their descendants an emotive matter for the Awami League?
Legacy of Sheikh Mujib: The quota system was introduced by Sheikh Mujibur Rahman, and continuing it is seen as fulfilling his legacy and honouring the sacrifices of freedom fighters.
Political Significance: The Awami League views the quota as a means to reinforce support within the bureaucracy and maintain political loyalty, linking it closely to the party’s historical and ideological narrative.
How did the protests turn violent?
The violence escalated when Prime Minister Sheikh Hasina labeled protesters as “razakars” or traitors, which enraged students and led to violent clashes with the police and Rapid Action Battalion (RAB).
The situation deteriorated to the point where the military had to be deployed to control the unrest, further intensifying the violence and confrontation between protesters and authorities.
Have the Quotas Been Misused?
Allegations of Abuse: There have been claims that the quota system has been misused, with reservations extended to party operatives and not just deserving freedom fighters’ descendants.
Dilution and Extension: The quota system, initially meant for freedom fighters and war survivors, has been criticized for being extended to broader categories over time, leading to concerns about fairness and effective utilization.
India’s recent Initiatives – ‘Strengthening Ties and Empowering Governance’
Economic Cooperation: India and Bangladesh agreed to strengthen trade and investment linkages, including the early commencement of negotiations for a Comprehensive Economic Partnership Agreement (CEPA).
Capacity Building for Civil Servants: India has been providing training and capacity-building programs for Bangladeshi civil servants through the National Centre for Good Governance (NCGG).
Development Assistance: India is the largest development partner for Bangladesh, having extended approximately $8 billion in Lines of Credit (LOC) over the past eight years for infrastructure development in sectors such as roads, railways, and shipping.
Way forward:
Balanced Approach: The Bangladesh government should consider a transparent and balanced quota reform that addresses both merit-based and reservation needs.
Monitoring and Accountability: Establishing mechanisms to monitor the implementation of quotas and prevent misuse is crucial.
From UPSC perspective, the following things are important :
Prelims level: About UNSC, BRICS and QUAD
Mains level: Importance of BRICS
Why in the News?
Recently, the Quad Foreign Ministers’ meeting in Japan highlighted the UNSC’s paralysis, ongoing violations of international law, and the growing influence of China and an axis of Russia, China, North Korea, and Iran.
Present State of the UNSC:
Paralysis and Ineffectiveness: The United Nations Security Council (UNSC) is currently paralyzed, unable to effectively address or resolve significant global conflicts. Efforts to reform the UNSC have stalled, leaving it incapable of adapting to contemporary geopolitical realities.
Impunity in Violations of International Law: International law is being violated with impunity in conflicts such as the Ukraine war and the assault on Gaza by Israel.
The UNSC’s inability to act decisively has contributed to a growing disregard for its authority and mandates.
Role of India in QUAD:
Strategic Partnership: India’s involvement in QUAD enhances its strategic partnerships with the other member nations, allowing for collaborative efforts in maritime security, humanitarian assistance, and disaster relief operations.
Building Indo-In Pacific Policy: One of the primary objectives of QUAD is to mitigate China’s assertive actions in Indo Pacific region.
India is positioned to take on a leadership role in regional security.
Economic Collaboration: The QUAD nations are working towards strengthening economic ties, including infrastructure development at ‘Strait of Malacca’ and alternative financing options for Indo-Pacific countries.
Humanitarian Assistance and Disaster Relief: India has actively engaged in humanitarian efforts, exemplified by its Operation Sanjeevani, which provided medical assistance to several Indo-Pacific nations during the COVID-19 pandemic.
Silverlining on BRICS
Promoting South-South Cooperation: BRICS represents a significant non-Western global initiative in the post-Cold War era. It can bring together major emerging economies from different parts of the world.
Amplifying Voices in Global Governance: The BRICS Population is around 40% of the world so the BRICS nations can amplify their voices in global governance and expand their choices of international partners through this grouping.
Fostering Economic Resilience: Despite the ongoing COVID-19 pandemic, BRICS has emerged as a more effective and efficient institution in fostering economic resilience among its member nations.
Exploring Alternative Financial Mechanisms: BRICS has taken steps to establish alternative financial mechanisms, such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA).
Role BRICS group in G20: The BRICS group has consistently pushed for the inclusion of development issues in the G20 agenda. They argue that the G20 should prioritize the needs of developing countries, particularly in terms of infrastructure investment and social sector support
Promoting Sustainable Development: The BRICS nations have emphasized the importance of responsible financing for green and sustainable development.
Initiatives like the NDB’s focus on sustainable infrastructure projects which would help in achieving of SDG Goal 9.
Conclusion: Need to support and advocate for comprehensive reforms of the UNSC to address its paralysis and enhance its effectiveness. This includes expanding permanent membership to better represent contemporary global dynamics and improving decision-making processes to tackle conflicts with greater agility.
Mains PYQ:
Q Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (2020)
From UPSC perspective, the following things are important :
Prelims level: World Economic Forum (WEF) report;
Mains level: Gender-based issues in India;
Why in the news?
The 2024 World Economic Forum (WEF) report on global gender gaps has ranked India at 129 out of 146 economies, marking a decline of two positions from the previous year.
Key Highlights by WEF Report:
Gender Parity Regression: India’s gender parity levels in educational attainment dipped in the 18th edition of the report, with a score of 0.964, down from a perfect 1.000 in the 17th edition.
This decline is attributed to a 17.2 percentage point gap between men’s and women’s literacy rates, causing India to rank 124th on this indicator.
Data Update and Period Variation: WEF’s Insight and Data Lead, Ricky Li, explained that the regression is due to updated data from UNESCO for the 2022 and 2023 periods, contrasting with the data from 2018, 2021, and 2022 used in the previous edition.
This emphasizes the impact of periodic updates and corresponding periods on the gender parity score.
What do figures from the Unified District Information System for Education and the All India Survey on Higher Education indicate?
Overall Enrolment and Gender Ratio: UDISE+ (2021-22) shows that girls constitute 48% of the school population, with enrolment increasing from 46.8% in preschool/kindergarten to 48.3% in higher secondary education.
Gross Enrolment Ratio (GER) in Higher Education: AISHE (2021-22) reports that the GER for women in higher education is 28.5%, slightly higher than the male GER of 28.3%, indicating a positive trend in female participation in higher education.
Trends in Female Enrolment: Female enrolment has seen a 32% increase since 2014-15, demonstrating significant progress in higher education, despite challenges such as lower enrolment in STEM fields and regional disparities in secondary education access.
Are girls more likely to complete secondary education when they have access to it?
Yes, girls are more likely to complete secondary education when they have access to it. The data from UDISE+ (2021-22) shows that while there is a slight drop in the percentage of girls enrolled in secondary education (47.9%), those who do have access to secondary education are more likely to continue to higher secondary education, where the gender gap narrows again to 48.3%.
This trend indicates that providing access to secondary education facilities helps girls stay in school and complete their education.
What needs to be done to ensure girls and boys, don’t drop out? (Way forward)
Addressing Socio-Cultural Barriers: Raising awareness about social issues such as early marriage, which disproportionately affects girls, is essential. Collaborating with local authorities and community leaders to advocate for girls’ education can help mitigate these challenges
Community Involvement: Engaging parents and the community in the educational process can foster a supportive environment for students. This can include parent workshops, support groups, and regular communication about student progress.
Flexible Learning Options: Offering flexible learning arrangements, such as part-time schooling or distance education, can accommodate students facing economic or personal challenges. This flexibility can help students balance their responsibilities while continuing their education.
Vocational Training and Skill Development: Incorporating vocational training programs into the school curriculum can equip students with practical skills that increase their employability. This can motivate students to stay in school as they see a direct link between education and future job opportunities
Mains PYQ:
Q Can the vicious cycle of gender inequality, poverty and malnutrition be broken through microfinancing of women SHGs? Explain with examples. (2021)
From UPSC perspective, the following things are important :
Prelims level: Adoption of National Flag by Constituent Assembly
Why in the News?
On 22nd July in 1947, the Constituent Assembly of India adopted the National Flag.
PC: The Better India
About the National Flag Day
The Constituent Assembly met in New Delhi at 10 o’clock, chaired by Dr. Rajendra Prasad.
The Assembly had been meeting since December 9, 1946, discussing various subjects.
The Chair announced the first agenda item: “aMotion by Pandit Jawaharlal Nehru about the Flag.”
Jawaharlal Nehru’s Resolution on National Flag
India’s first Prime Minister, Jawaharlal Nehru, moved the Resolution:
The National Flag of India shall be a horizontal tricolour of deep Saffron (Kesari), white, and dark green in equal proportion.
In the centre of the white band, there shall be a navy blue Wheel representing the Charkha.
The design of the Wheel is based on the Chakra from the Sarnath LionCapital of Ashoka.
The diameter of the Wheel approximates the width of the white band.
The ratio of the width to the length of the Flag shall be 2:3.
The motion was adopted unanimously by the Assembly.
Adoption by Popular Acclaim:
Nehru mentioned that the Flag was adopted by popular acclaim and sacrifice over the past decades.
Nehru clarified that the Flag was not meant to be seen in communal terms.
The design was intended to represent the spirit and tradition of India, grown over thousands of years.
Reactions and Support
There were no significant objections to Nehru’s Resolution.
Several members, including Seth Govind Das, V I Muniswami Pillai, Chaudhri Khaliquzzaman, S Radhakrishnan, Saiyid Mohammad Saadulla, Frank R Anthony, and Sarojini Naidu, paid tributes to the Flag and supported the Resolution.
H V Kamath suggested adding a Swastika inside the Chakra to symbolize peace but withdrew the amendment after seeing the Flag’s design.
Dr. P S Deshmukh preferred retaining the original tricolour with the Charkha but did not push his amendment, respecting the House’s preference.
Back2Basics: History of Our National Flag
First Public Display in Kolkata (1906):
The first national flag of India was hoisted on August 7, 1906, in Kolkata at Parsee Bagan Square (Green Park).
The flag had three horizontal stripes of red, yellow, and green, with “Vande Mataram” inscribed in the center.
Symbolism: The red stripe included symbols of the sun and a crescent moon, while the green stripe featured eight half-open lotuses.
The flag is believed to have been designed by freedom activists Sachindra Prasad Bose and Hemchandra Kanungo.
Indian Flag in Germany:
In 1907, Madame Cama and her group of exiled revolutionaries hoisted an Indian flag in Germany.
This event marked the first time the Indian flag was hoisted in a foreign country.
Home Rule Movement Flag:
Dr. Annie Besant and Lokmanya Tilak introduced a new flag in 1917 as part of the Home Rule Movement.
The flag featured alternate red and green horizontal stripes, with seven stars in the Saptarishi configuration.
It included a white crescent and star in one top corner, and the Union Jack in the other.
Version by Pingali Venkayya:
Pingali Venkayya, an Indian freedom fighter, is credited with the design of the modern Indian tricolour.
Venkayya first met Mahatma Gandhi in South Africa during the second Anglo-Boer War (1899-1902).
He conducted extensive research and published a book in 1916 that included possible designs for the Indian flag.
At the All India Congress Committee in Bezwada in 1921, Venkayya proposed a basic flag design to Gandhi, featuring two bands of red and green to represent Hindus and Muslims.
PYQ:
[2014] The national motto of India, ‘Satyameva Jayate’ inscribed below the Emblem of India is taken from
From UPSC perspective, the following things are important :
Prelims level: Dyson Sphere
Why in the News?
Recently, astronomers have made progress in finding possible candidates as Dyson Sphere, sparking new excitement and debate about extraterrestrial life.
What is a Dyson Sphere?
Imagine you are an astronomer looking for extraterrestrial life and you find a star covered by solar panels. This structure, collecting massive amounts of solar energy, is known as a Dyson sphere.
The concept is named after Freeman Dyson, a theoretical physicist who lived from 1923 to 2020.
Dyson proposed that advanced civilizations would need to harness a star’s energy, constructing a spherical array of solar collectors around it.
He suggested that the heat emitted as infrared radiation could indicate the presence of these massive structures and thus intelligent life.
Who was Freeman Dyson (1923-2020)?
Dyson was a renowned British-American theoretical physicist and mathematician known for his work in quantum electrodynamics, solid-state physics, and astronomy.
Born on December 15, 1923, in England, he made significant contributions to science and technology, including the Dyson Sphere concept—a hypothetical structure that could encompass a star to capture its power output.
He was also a prominent futurist and author, exploring ideas on space travel, extraterrestrial life, and the future of humanity.
Dyson spent much of his career at the Institute for Advanced Study in Princeton and was known for his interdisciplinary approach to science.
PYQ:
[2015] The term ‘Goldilocks Zone’ is often seen in the news in the context of
(a) The limits of habitable zone above the surface of the Earth
(b) Regions inside the Earth-like planets in outer space
(c) Search for the Earth-like planets in outer space
(d) Search for meteorites containing precious metals
Prelims Only | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
The markets regulator, SEBI, has proposed a new asset class designed to offer investment products positioned between mutual funds (MFs) and portfolio management services (PMS).
This new category aims to fill an opportunity gap for investors and offer greater flexibility in portfolio construction.
Note:
PMS provides customized investment solutions to high net-worth individuals (HNIs) with a minimum investment limit of Rs 50 lakh.
MFs, on the other hand, have a much lower minimum investment limit of just Rs 100, managed by a professional fund manager.
About the New Asset Class
The new asset class aims to provide an intermediate option with more flexibility in portfolio construction, helping investors avoid unregistered and unauthorized schemes.
It will have a risk-return profile between MFs and PMS, targeting investors with higher risk tolerance and larger investment amounts than those typical of MFs but lower than PMS.
The current range of investment products includes:
MF schemes: Focused on retail investors,
PMS: For HNIs, and
Alternative investment funds (AIF): For sophisticated investors.
How will investments in the new asset class work?
The new asset class will be introduced under the MF structure with necessary relaxations in prudential norms.
The minimum investment amount is proposed to be Rs 10 lakh per investor within the asset management company (AMC)/MF.
This high threshold is intended to deter retail investors while attracting those with investible funds between Rs 10 lakh and Rs 50 lakh.
Significance of the New Asset Class:
SEBI noted that the gap between investment opportunities in MFs and PMS has led some investors towards unauthorized investment avenues.
The new asset class will help curb the proliferation of unregistered investment products and provide a structured and regulated option for investors.
SEBI emphasized that the new asset class would offer a regulated and structured investment suited to investors looking for opportunities between MFs and PMS.
Investment Strategies:
Like MF schemes, the new asset class will provide options for Systematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP), and Systematic Transfer Plan (STP).
AMCs can offer ‘investment strategies’ under a pooled fund structure with tailored redemption frequencies (daily, weekly, monthly, etc.).
PYQ:
[2021] Indian Government Bond Yields are influenced by which of the following?
Actions of the United States Federal Reserve
Actions of the Reserve Bank of India
Inflation and short-term interest rates
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
From UPSC perspective, the following things are important :
Prelims level: CPCB, EPR Program
Why in the News?
The Central Pollution Control Board (CPCB) has started a national audit of about 800 plastic-waste recyclers across India.
This action follows the discovery that four firms in Karnataka, Maharashtra, and Gujarat issued nearly 600,000 fake certificates under the Extended Producer Responsibility (EPR) programme.
About Central Pollution Control Board (CPCB): Overview
The Central Pollution Control Board (CPCB) is a statutory organization established in September1974.
It was constituted under the Water (Prevention and Control of Pollution) Act, 1974.
CPCB is also entrusted with powers and functions under the Air (Prevention and Control of Pollution) Act, 1981.
It serves as a technical arm of the Ministry of Environment, Forests, and Climate Change, implementing the provisions of the Environment (Protection) Act, 1986.
Principal Functions:
Water Pollution Control:
Promote the cleanliness of streams and wells in different states by preventing, controlling, and abating water pollution.
Oversee the National Water Quality Monitoring Program to collect, collate, and disseminate technical and statistical data relating to water pollution.
Air Pollution Control:
Improve the quality of air and prevent, control, or abate air pollution in the country.
Conduct air quality monitoring as part of air quality management.
Implement the National Air Monitoring Programme (NAMP) to determine current air quality status and trends, regulate pollution from industries, and provide background air quality data for industrial siting and town planning.
Key Initiatives and Programs:
National Air Monitoring Programme (NAMP): Established to monitor air quality status and trends, and to control and regulate industrial pollution to meet air quality standards.
National Air Quality Index (NAQI): Provides real-time air quality data and trends.
Graded Response Action Plan (GRAP): A set of measures to be taken based on the severity of air pollution levels.
Clean Air Campaign: Initiatives aimed at reducing air pollution through public awareness and actionable measures.
Role in Data Management:
CPCB collects, collates, and disseminates technical and statistical data related to water and air pollution.
Provides necessary data for regulatory and planning purposes, including industrial siting and urban planning.
What is Extended Producer Responsibility (EPR) Programme?
Extended Producer Responsibility (EPR) means the responsibility of a producer for the environmentally sound management of the product until the end of its life.
India had first introduced EPR in 2011 under the:
Plastic Waste (Management and Handling) Rules, 2011
E-Waste Management and Handling Rules, 2011.
The EPR scheme requires businesses using plastic packaging to recycle a certain percentage of the plastic used in the previous two years.
Implementation of EPR:
Registration: Producers must register with the Central Pollution Control Board (CPCB) and submit an EPR plan.
Collection Mechanisms: Producers set up collection centers, return schemes, or partner with authorized recyclers to manage waste.
Documentation: Producers are required to maintain detailed records of waste collected and processed and submit regular reports to the CPCB.
Compliance Audits: The CPCB conducts audits to ensure that producers comply with EPR requirements.
Every tonne of plastic recycled generates a certificate.
According to a CPCB report in May, nearly 3.7 million tonnes of recycled plastic generated certificates.
In 2022-23, about 18,000 companies using plastic packaging were registered with the CPCB, aiming to recycle about 3.3 million tonnes.
Compliance and Targets:
Companies must recycle 70% of the packaging used in the previous two financial years for 2022-23 and 100% for 2023-24. Non-compliance with these targets can result in fines.
EPR certificates are uploaded on a dedicated portal maintained by the CPCB, allowing recyclers and buyers to trade online.
PYQ:
[2019] In India, ‘extended producer responsibility’ was introduced as an important feature in which of the following?
(a) The Bio-medical Waste (Management and Handling) Rules, 1998
(b) The Recycled Plastic (Manufacturing and Usage) Rules, 1999
(c) The e-Waste (Management and Handling) Rules, 2011
(d) The Food Safety and Standard Regulations, 2011
From UPSC perspective, the following things are important :
Prelims level: How will iCAL work?
Mains level: How are local bodies audited in India?
Why in the news?
On July 18, CAG Girish Chandra Murmu inaugurated the International Centre for Audit of Local Governance (iCAL) in Rajkot, marking India’s first institute to set global standards for auditing local governance.
How will iCAL work?
iCAL will serve as a platform for policymakers, administrators, and auditors connected with local governments to enhance collaboration and share best practices.
Objective: It aims to improve the independence and effectiveness of local government auditors through training, leadership development, and capacity-building initiatives.
Significance: iCAL will act as a think tank for addressing governance issues at the grassroots level through interactive workshops, knowledge-sharing sessions, and peer exchanges.
How are local bodies audited in India?
India has a three-tier system consisting of the Union government, state governments, and local bodies (both urban and rural).
Local bodies like Panchayats and Urban Local Bodies (ULBs) are audited by various entities:
State-level offices like the Examiner of Local Fund Accounts (ELFA)/Director of Local Fund Accounts (DLFA) audit the utilisation of state funds by local bodies.
CAG conducts audits of all funds at the central and state levels, including those of local bodies. The CAG also advises and supports ELFA/DLFA.
Why was a need felt for it?
Increased Funding and Need for Proper Auditing: With significant funds flowing to local bodies, there is a pressing need for improved auditing practices to ensure proper utilisation and financial management.
Global Practices and Collaboration: There is a need to promote global good practices and institutionalised collaboration among supreme audit institutions (SAIs) to enhance local government audit practices and share best practices.
Addressing Inefficiencies: Concerns have been raised about inefficiencies in local body financial management and reporting, as highlighted by the Reserve Bank of India’s 2022 report. iCAL aims to address these inefficiencies through better auditing practices and capacity building.
Way forward:
Expand Capacity Building and Training Programs: Enhance iCAL’s focus on training and capacity-building for auditors and local government officials.
Foster International Collaboration and Knowledge Sharing: Strengthen partnerships with global audit institutions and engage in knowledge exchange initiatives.
Mains PYQ:
Q In the absence of well – educated and organised local-level government systems, Panchayats and Samitis have remained mainly political institutions and not effective instruments of governance. Critically Discuss. (UPSC IAS/2015)
From UPSC perspective, the following things are important :
Prelims level: Indemnity-based Insurance Products and Parametric insurance
Mains level: Limitation of Parametric insurance
Why in the news?
In 2023, natural disaster losses hit $280 billion, with only $100 billion insured, highlighting a need for innovative insurance solutions amid rising extreme weather events.
Present Method of Disaster Risk Reduction
Indemnity-based Insurance Products: Indemnity-based insurance products require a physical assessment of damage after a disaster to determine the payout amount. For example Health Insurance, Motor Insurance and Travel Insurance.
Challenges:
Verification Issues: When large-scale calamities strike, especially in economically disadvantaged areas, it is difficult to verify losses due to the lack of records and widespread destruction.
Delays in Payouts: The need for physical assessment can cause delays in providing financial assistance to the affected individuals and communities.
Insurance Gap: There is a significant gap in insurance coverage between developed and developing economies, leaving many vulnerable populations without adequate protection.
Changing course and the associated limitations:
Parametric insurance: Payments are made based on predefined parameters of weather events (e.g., rainfall exceeding 100 mm per day for two consecutive days, specific flood levels, wind speed).The payouts are made without the need for physical assessment of losses, enabling quicker disbursements.
Examples:
Disaster-prone Island Countries: Many have adopted parametric insurance for climate adaptation, moving away from risk retention models. For example, Fiji launched its first parametric insurance product in 2021
Morocco received $275 million in parametric insurance after a 6.8 magnitude earthquake, arranged with the help of the World Bank.
India has initiated crop insurance (e.g., Pradhan Mantri Fasal Bima Yojana and the Restructured Weather Based Crop Insurance Scheme).
Associated Limitations
Current Focus: Primarily used for low-frequency, high-impact disasters like earthquakes, cyclones, and hurricanes.
Data and Infrastructure Requirements: There is challenges related to developing and maintaining the necessary infrastructure for data collection and monitoring can be challenging, especially in developing regions.
Affordability and Accessibility issues: It demands high premiums can still be a barrier for economically disadvantaged communities.
Case Study of Nagaland:
Nagaland was the first state in India to buy parametric cover for extreme precipitation in 2021.
Based on lessons learned, it improved the product by fixing an absolute annual premium, duration, and rate online, allowing bidders to compete over lower threshold limits and maximized payouts.
What can be done to ensure effectiveness? (Way Forward)
Precise Thresholds and Robust Monitoring: Establish clear, accurate parameters for insurance triggers and implement reliable monitoring systems to track these parameters effectively.
Transparent Bidding and Experience Sharing: Follow a transparent bidding process for price discovery and facilitate the exchange of best practices and lessons learned between governments.
Widespread Payout Systems and Household Premium Support: Develop comprehensive systems for distributing payouts and promote long-term premium payment by households, leveraging tools like Aadhaar-based payment dissemination.
Mains PYQ:
Q Describe various measures taken in India for Disaster Risk Reduction (DRR) before and after signing ‘Sendai Framework for DRR (2015-2030)’. How is this framework different from ‘Hyogo Framework for Action, 2005’? (UPSC IAS/2018)
From UPSC perspective, the following things are important :
Prelims level: Green Revolution
Mains level: Present India’s Maize Production
Why in the news?
Over the past two decades, India’s maize production has more than tripled, emerging as a private sector-driven green revolution success story. Maize has transitioned from being primarily a feed crop to also serving as a fuel crop.
What was the Green Revolution?
Began in 1968 with the introduction of high-yielding variety (HYV) seeds, especially for wheat and rice, developed by agronomist Norman Borlaug
Institutions like CIMMYT (International Maize and Wheat Improvement Center) and IARI (Indian Agricultural Research Institute), led by scientists like Norman Borlaug and M S Swaminathan, played a crucial role.
The Green Revolution is credited to M.S. Swaminathan, known as the “Father of the Indian Green Revolution”, who introduced Borlaug’s wheat varieties and other technologies.
The initiative focused on increasing agricultural productivity through advanced breeding techniques, fertilizers, and irrigation methods.
Wheat production increased from 12 million tons in 1964-65 to 20 million tons in 1970-71.India became self-sufficient in food grain production and a major exporter
Present India’s Maize Production called as a Green Revolution in Maize
Significant Production Increase: Over the last two decades, India’s maize production has surged from 11.5 million tonnes in 1999-2000 to over 35 million tonnes in 2023-24, showcasing a remarkable increase in both yield and output.
Private Sector Leadership: This growth has been largely driven by the private sector, with more than 80% of the maize area planted with high-yielding hybrids developed by private seed companies, indicating a successful private sector-led green revolution.
Diverse Utilization: Maize in India has evolved from being primarily a feed crop for poultry and livestock to also being a vital industrial crop used for starch and ethanol production, reflecting its expanded role in the economy.
On Starch and Ethanol Production
Maize contains 68-72% starch, with significant industrial applications in textiles, paper, pharmaceuticals, food, and beverages.
Maize is emerging as a key feedstock for ethanol production, especially for blending with petrol.
IARI has developed a waxy maize hybrid with high amylopectin content, enhancing its suitability for ethanol production.
The new Pusa Waxy Maize Hybrid-1 has 71-72% starch with 68-70% recoverable, increasing ethanol yield per tonne.
Can India adopt new strategies? (Way forward)
India can adopt new strategies through innovative breeding techniques like the doubled haploid (DH) technology used by CIMMYT.
The DH facility in Karnataka speeds up the development of genetically pure inbred lines, enhancing the efficiency of maize breeding.
IARI’s waxy maize hybrid is ready for field trials and commercial release, potentially boosting ethanol production.
Collaboration between public sector institutions and private seed companies can drive the adoption of high-yielding, disease-resistant maize varieties.
Private sector-bred hybrids account for over 80% of India’s maize area, indicating strong potential for further growth and innovation in maize production.
Mains PYQ:
Q Explain various types of revolutions, that took place in Agriculture after Independence in India. How these revolutions have helped in poverty alleviation and food security in India? (UPSC IAS/2017)
From UPSC perspective, the following things are important :
Prelims level: Paris Agreement
Mains level: Bilateral Ties between India and Japan related to climate change
Why in the news?
India is set to establish a Joint Crediting Mechanism (JCM) with Japan for carbon trading and emission-reduction credits.
Memorandum of Cooperation for Setting Up a Joint Crediting Mechanism (JCM)
Objective and Framework: India and Japan plan to sign a Memorandum of Cooperation to establish a Joint Crediting Mechanism (JCM) for sharing emission-reduction credits. The JCM will involve a structured allocation of carbon credits and maintain a registry to track these credits, with projects needing clearance from a Joint Committee.
Implementation and Oversight: The mechanism will be governed under Article 6.2 of the Paris Agreement, adhering to relevant domestic laws and regulations of both countries. A Joint Committee will develop rules, manage project cycles, and oversee monitoring and issuance of credits.
Emission Cuts
Credit Allocation: Credits issued under the JCM will contribute to both Japan’s and India’s Nationally Determined Contributions (NDCs) under the Paris Agreement. The JCM will avoid double counting of credits and may authorize some credits for international mitigation purposes.
Technology Transfer and Capacity Building: Japan will support technology transfer, finance, and capacity building to enhance the effectiveness of the JCM and facilitate the adoption of new technologies.
Significance of JCM:
Increased Access to Clean Technologies: The JCM will facilitate the transfer of advanced decarbonizing technologies from Japan to India, such as renewable energy systems, energy-efficient appliances, and waste management solutions.
Job Creation and Skill Development: The implementation of JCM projects will create new employment opportunities in sectors like renewable energy, energy efficiency, and waste management
Bilateral ties between India and Japan
Strategic Partnership: The JCM will strengthen bilateral ties between India and Japan by fostering collaboration on low-carbon technologies and climate action, aimed at boosting job creation and investments in clean technologies.
Clean Energy Partnership: It was launched in March 2022, the India-Japan Clean Energy Partnership (CEP) aims to enhance cooperation in sustainable energy transitions to achieve net-zero emissions by 2070.
Investment Commitments: During the 14th India-Japan Annual Summit in March 2022, both nations agreed on a target of $42 billion (JPY 5 trillion) in public and private investment from Japan to India over the next five years
Low Carbon Emission Strategies: A $600 million fund was established to focus on environmental sustainability and low carbon emission strategies. This initiative is part of a broader effort to enhance Japanese investments in India while addressing climate change.
Way forward:
Prioritize the adoption of cutting-edge decarbonizing technologies: Japan should prioritize the transfer of its most advanced low-carbon technologies to India, such as renewable energy systems, energy-efficient appliances, and carbon capture and storage solutions.
Expand the scope of the JCM to include other areas of climate cooperation: While the initial focus of the JCM should be on emission reduction projects, India and Japan could explore expanding its scope to include other areas of climate cooperation, such as adaptation measures, climate finance, and capacity building.
Mains PYQ:
Q Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (UPSC IAS/2022)
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: Features of the RTE Act
Why in the News?
The Bombay High Court has cancelled the Maharashtra government’s new rule that allowed private schools within 1 kilometer of government or government-aided schools to avoid reserving 25% of their seats for students from weaker sections and disadvantaged groups.
Right to Education (RTE) Act: Overview
The Right to Education (RTE) Act, 2009 ensures free and compulsory education as fundamental right under Article 21A of the Indian Constitution.
It mandates that every child has the right to full-time elementary education of satisfactory and equitable quality in a formal school that meets certain essential norms and standards.
Key Provisions:
The RTE Act provides for free and compulsory education for all children between 6 and 14 years.
Schools must be available within a prescribed distance from the child’s residence to ensure accessibility.
The Act ensures the provision of adequate teachers and the establishment of standards for their training and quality.
Teacher Qualification: The teacher must pass the Teacher Eligibility Test (TET), which is administered by the respective government authority. The National Council for Teacher Education (NCTE) has established the minimum qualifications required for a person to be eligible for appointment as a teacher for classes I to VIII.
The RTE Act does NOT apply to Minority institutions.
Section 12(1) (C) of the RTE Act:
Section 12(1) (C) requires private unaided and specified category schools to reserve at least 25% seats for children from economically weaker sections and disadvantaged groups.
This provision aims to promote social inclusion and ensure that children from all backgrounds have access to quality education.
The government reimburses schools for the expenses incurred for admitting these children, based on per-child expenditure incurred by the state.
Children from economically weaker sections and disadvantaged groups benefit from this Section as it provides them access to private schooling.
This section aims to contest education apartheid and bring parity and equality of opportunity for all children.
Details of the Exemption Rule in Maharashtra
The notification stated that private unaided schools within one kilometer of a government or government-aided school would not need to reserve 25% of seats for socio-economically backward students.
Students in these areas would first be considered for admission to nearby government or government-aided schools.
The exemption also applied to future private schools established within a one-kilometer radius of government or government-aided schools.
If no such schools existed in the vicinity, private schools would be identified for RTE admissions.
Similar Exemptions in Other States
Maharashtra joined Karnataka and Kerala in implementing this regime to exempt private schools from RTE admissions.
Karnataka introduced the rule in December 2018, referencing Kerala’s rules introduced in 2011.
In Kerala, the fee concession is available to RTE quota students only if there are no government or aided schools within one kilometer for Class 1 students.
Reasons for Introducing Exemptions
Karnataka’s Law Minister stated in 2018 that the primary intention of RTE is to provide education to all classes of students.
Allowing parents to admit children to private schools despite nearby government schools resulted in a drop in enrollment ratios in government schools.
Private schools and teachers’ organizations highlighted that state governments often failed to reimburse fees for students admitted through the RTE quota.
Section 12(2) of the RTE Act binds state governments to reimburse expenses incurred by schools per child or the fee amount, whichever is less.
In Maharashtra, the Maharashtra English School Trustees Association (MESTA) threatened to boycott RTE admissions last December due to pending reimbursements of Rs 1,800 crore.
PYQ:
[2022] The Right of Children to Free and Compulsory Education Act, 2009 remains inadequate in promoting incentive-based systems for children’s education without generating awareness about the importance of schooling. Analyse.
[2018] Consider the following statements:
As per the right to education (RTE) Act, to be eligible for appointment as a teacher in a state, a person would be required to possess the minimum qualification laid down by the concerned State council of Teacher education.
As per the RTE Act, for teaching primary classes, a candidate is required to pass a Teacher Eligibility Test conducted in accordance with the National Council of Teacher Education guidelines.
In India, more than 90 % of teacher education institutions are directly under the State Governments.
Which of the statements given above is/are correct?
From UPSC perspective, the following things are important :
Prelims level: Bhil Tribe
Why in the News?
A large number of people from the Bhil tribe recently gathered at a rally in Rajasthan’s Mangarh Dham to raise the demand for an independent ‘Bhil state’.
Background of the Bhil Pradesh Demand
The idea of a tribal state, comprising parts of Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra, has been discussed previously.
The demand for a separate tribal state in western India was put forward by the Bharatiya Tribal Party (BTP) formed in2017.
The Bhil community has been demanding that 49 districts be carved out of the four states to establish Bhil Pradesh.
The demand for Bhil Pradesh has been raised repeatedly since Independence.
Historical Context
Bhil social reformer and spiritual leader Govind Gurufirst raised the demand for a separate state for tribals in 1913.
The demand followed the Mangarh massacre, where hundreds of Bhil tribals were killed by British forces.
The massacre took place six years before the Jallianwala Baghmassacre and is sometimes referred to as the “Adivasi Jallianwala”.
Reasons for the Demand
Earlier, the tribal-majorityregions were a single entity but were divided post-Independence.
According to the 2011 census, tribals comprise almost 14% of Rajasthan’s population.
Several Union governments have brought various laws and schemes for tribals but have been slow in implementation.
Example of Implementation Issues
The Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996, aimed to decentralize governance and empower gram sabhas in tribal areas.
The Rajasthan government adopted the law in 1999, but its rules were only formulated in 2011.
Many people, including local leaders, are still unaware of the law.
From UPSC perspective, the following things are important :
Prelims level: MISA, Implications of Emergency
Why in the News?
Prithipal Singh Randhawa, leader of the Punjab Students Union (PSU), was murdered in Ludhiana on July 18, 1979.
At the time of his death, he was 27 years old and among the most prominent leaders of the student union movement in Punjab during the 1970s.
Who was Prithipal Singh Randhawa?
Randhawa hailed from Hoshiarpur in Punjab and joined Punjab Agricultural University (PAU), Ludhiana, in 1972.
On October 5, 1972, students protested outside Regal Cinema in Moga district against black marketing of tickets.
The police opened fire, killing four people, including student leaders Swarn Singh and Harjeet Singh.
In response, Randhawa launched a mass movement, leading to the arrest of the responsible police officers.
On October 26, 1974, he organized the massive Moga Sangram rally, addressing issues like student fee hikes and the United States’ imperial war in Vietnam.
He was assassinated on July 18, 1979, after abduction.
His rising popularity and anti-establishment stance led to his arrest and 19-month imprisonment under the Maintenance of Internal Security Act (MISA) during the Emergency.
His death led to massive protests in Punjab, Haryana, and Delhi.
Back2Basics:Maintenance of Internal Security Act (MISA): Overview
The MISA was a controversial law enacted by the Indian government in 1971.
It was primarily aimed at ensuring internal security and public order during times of political unrest and emergencies.
MISA was heavily used during the Emergency period (1975-1977) declared by Prime Minister Indira Gandhi.
Key Provisions:
Preventive Detention: MISA allows for the preventive detention of individuals without trial for a maximum period of two years. This was intended to pre-emptively address threats to national security.
Detention without Charges: Individuals could be detained without being charged with a specific offense, based on the suspicion of being a threat to national security or public order.
No Right to Legal Representation: Detainees under MISA did not have the right to legal representation or a fair trial.
Limited Judicial Review: The act severely restricted the scope of judicial review, making it difficult for courts to intervene in cases of detention under MISA.
Controversy and Criticism:
Human Rights Violations: MISA was widely criticized for its draconian measures and violation of fundamental human rights, including the right to liberty, freedom of speech, and due process.
Political Repression: The act was seen as a tool for political repression, used by the government to silence opposition and dissent.
Abuse of Power: There were numerous instances of abuse of power under MISA, with individuals being detained on vague or politically motivated grounds.
Repeal:
After the end of the Emergency in 1977, the newly elected Janata Party government repealed MISA in 1978 as part of its efforts to restore democratic norms and civil liberties.
The legacy of MISA remains a stark reminder of the potential for misuse of power and the importance of safeguarding democratic principles and human rights.
PYQ:
[2022] Which of the following is/are the exclusive power(s) of Lok Sabha?
To ratify the declaration of Emergency
To pass a motion of no-confidence against the Council of Ministers
To impeach the President of India
Select the correct answer using the code given below:
From UPSC perspective, the following things are important :
Prelims level: Mashko Piro Tribe
Why in the News?
An NGO has released rare photographs of the Mashco Piro tribespeople, one of the world’s 100-odd uncontacted tribes.
Who are the Mashko Piro people?
The Mashco Piro tribe, possibly numbering over 750, are nomadic hunter-gatherers.
They live in the Amazon jungles of the Madre de Dios Region, near Peru’s border with Brazil and Bolivia.
Almost all uncontacted tribes, including the Mashco Piro, live in the jungles of the Amazon and Southeast Asia.
The Mashco-Piro speak a dialect of the Piro language.
The tribe is highly reclusive and only occasionally contacts the Yine people, another native group.
Threats from the logging activities
Logging companies has been allotted 53,000 hectares in the Madre de Dios forests to extract cedar and mahogany.
The Mashco Piro have expressed their disapproval of the logging companies through the Yine people, reporting feelings of pressure and upset due to company assaults.
Historical Context:
The Mashco Piro’s territory was invaded during Peru’s rubber boom in the 1880s, resulting in displacement, enslavement, and mass killings.
Survivors moved further upstream on the Manu River and have lived in isolation since then.
Protective measures from the Government
In 2002, the Peruvian government established the Madre de Dios Territorial Reserve to protect the Mashco Piro’s territory.
However, large parts of their traditional lands lie outside the reserve and have been sold as logging concessions.
The Peruvian government has forbidden all contact with the Mashco Piro to prevent the spread of diseases to which the tribe has no immunity.
As logging companies encroach on their territories, the Mashco Piro have nowhere left to go.
PYQ:
[2016] Consider the following pairs:
Community sometimes in the affairs of mentioned in the news
Kurd : Bangladesh
Madhesi : Nepal
Rohingya : Myanmar
Which of the pairs given above is/are correctly matched?
From UPSC perspective, the following things are important :
Prelims level: Tobacoo industry in India
Mains level: CRISPR can reduce the impact of Tobacoo
Why in the news?
On July 8th, 1497, Vasco da Gama’s historic voyage began, reshaping global maritime routes and leaving a lasting impact on trade and culture. This era of exploration introduced and disseminated tobacco, profoundly affecting societies in numerous ways.
Cultivation and Production of Tobacco
Historical Introduction: Tobacco was originally cultivated by Native Americans and brought to Europe in the 16th century. It was introduced to South Asia by European traders and colonizers, notably the Portuguese, Dutch, and British.
Economic Significance: Tobacco is a drought-tolerant crop providing livelihoods to many. It accounts for about 2% of India’s agricultural exports and employs over 45 million people.
Revenue Generation: The tobacco industry is a major source of revenue through taxation and exports, generating over ₹22,000 crores annually.
Implications on Human Health
Health Issues: Tobacco use contributes to various cancers (lung, mouth, throat, oesophagus, pancreas, and bladder), respiratory diseases (COPD, emphysema, chronic bronchitis), cardiovascular problems (heart disease, stroke, hypertension), and other conditions like diabetes, infertility, weakened immune system, and complications in pregnancy.
Addiction: Nicotine, a highly addictive substance in tobacco, alters brain function leading to severe addiction.
Health Crisis: In India, tobacco use causes over 1.2 million deaths annually. It is responsible for 27% of all cancers and adds significant costs to healthcare and productivity losses, totaling approximately ₹1.82 trillion annually.
Ethical and Revenue Considerations
Economic Benefits vs. Health Costs: While tobacco provides economic benefits and employment, it comes with tremendous human and financial costs due to tobacco-related illnesses.
Constitutional Provisions: Under Article 21 of the Indian Constitution guarantees the right to life and health. The Directive Principles of State Policy mandate the state to improve public health and living standards.So,Govt. has responsibility to prevent tobacoo consumption.
Indian needs to Stack Up Its Priorities
Institutional Conflict: The Indian Council of Medical Research (ICMR) focuses on eliminating tobacco to mitigate health impacts, while the Indian Council of Agricultural Research (ICAR) aims to increase tobacco crop yields.
Policy and Ethical Dilemma: The conflicting priorities between ICMR and ICAR create significant policy challenges. The constitutional mandate to prioritize public health should guide policy decisions.
Will CRISPR make a difference?
Gene Editing Potential: CRISPR technology offers potential solutions by developing genetically modified tobacco plants with reduced nicotine content.
Research Developments: Studies have shown promise in using CRISPR to significantly lower nicotine levels in tobacco plants. However, further characterization is needed to ensure these modifications do not negatively impact other important traits.
Collaborative Efforts: Collaboration between ICMR and ICAR is crucial to align scientific advancements with public health goals and agricultural sustainability.
The Tobacco Lobby and Surrogate Advertising
Circumventing Regulations: The tobacco industry employs surrogate advertising to promote its products despite stringent advertising bans. These tactics perpetuate tobacco consumption, especially among youth, undermining public health efforts.
Aggressive Lobbying: The tobacco industry has a large network of 1,027 registered lobbyists at the state level in 2024, many of whom are former government employees. They engage in extensive lobbying to weaken, delay or block life-saving tobacco control measures.
Way forward:
Implement Stricter Regulations: Enforce stringent regulations on tobacco advertising, including surrogate advertising, and ensure compliance through regular monitoring and penalties.
Ban on Public Smoking: Implement and strictly enforce smoking bans in public places to reduce exposure to second-hand smoke.
Mains PYQ:
Q What are the research and developmental achievements in applied biotechnology? How will these achievements help to uplift the poorer sections of the society? (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Prelims level: About Foreigners Tribunals
Mains level: Decision-Making Process of Foreigners Tribunals
Why in the news?
On July 5, the Assam government instructed the Border wing of the State police not to refer cases of non-Muslims who entered India illegally before 2014 to the Foreigners Tribunals (FTs).
About Foreigners Tribunals:
Foreigners Tribunals are quasi-judicial bodies established to determine if a person staying illegally in India is a “foreigner” or not.
They were set up under the Foreigners (Tribunals) Order, 1964, enacted by the central government under the Foreigners Act, 1946.
Initially, only the central government could set up these tribunals. But a 2019 amendment empowered district magistrates in all states and UTs to establish Foreigners Tribunals.
The tribunals have the powers of a civil court to summon witnesses, require document production, and examine evidence.
Decision-Making Process of Foreigners Tribunals:
Referral: Individuals suspected of being foreigners are referred to FTs by local authorities or border police. This referral can be based on various factors, including lack of documentation or doubtful voter status.
Notice Issuance: Upon receiving a reference, the FT issues a notice to the person alleged to be a foreigner. This notice is served in English or the state’s official language.The person has 10 days to respond to the notice and an additional 10 days to submit evidence supporting their claim of citizenship.
Submission of Evidence: The individual must present evidence to prove their Indian citizenship. This may include documents like birth certificates, school certificates, land records, or other official records.
Verification: The tribunal examines the documents and evidence provided, and may call witnesses or seek additional information if necessary.
Hearing: The FT has the authority to summon and examine the individual on oath, and to require the production of additional documents. The tribunal operates with certain powers of a civil court.
Judgment: If the evidence provided is deemed insufficient to prove citizenship, the individual may be declared a foreigner. If evidence is adequate, the person is recognized as an Indian citizen.
Detention and Deportation: If declared a foreigner and unable to appeal successfully, the person may be sent to a detention center (transit camp) for deportation.
Role of Border Police:
Detection and Referral: The Assam Police Border Organisation is responsible for detecting illegal foreigners and referring suspicious cases to FTs.
Patrolling and Defence: They patrol the India-Bangladesh border, work with the Border Security Force, and maintain a second line of defense.
Monitoring: They monitor people settled in riverine and char (sandbar) areas.
Cases of ‘D’ Voters: They refer cases of ‘D’ (doubtful) voters to FTs as directed by the Election Commission of India.
NRC Appeals: People excluded from the NRC can appeal to the FTs through this wing to prove their citizenship.
Challenges and Criticisms:
Supreme Court Rulings: The Supreme Court has overturned FT orders citing grave miscarriages of justice, such as the wrongful declaration of a deceased farmer, Rahim Ali, as a foreigner.
Corruption and Malpractice: Observations have been made about corruption within the system, with allegations of notices being improperly served.
Conclusion: Need to Implement stricter oversight and auditing of Foreigners Tribunals to ensure fairness and adherence to legal procedures. Regular reviews and monitoring can help prevent corruption and malpractice, ensuring that notices are properly served and tribunal processes are transparent.
Mains PYQ:
Q How far are India’s internal security challenges linked with border management particularly in view of the long porous borders with most countries of South Asia and Myanmar? (UPSC IAS/2013)
From UPSC perspective, the following things are important :
Prelims level: Initiative related to Tree plantation
Mains level: India's accountability and challenges toward environmental Goals
Why in the news?
India’s tree planting schemes have garnered attention as part of the country’s efforts to combat climate change and restore degraded ecosystems. However, these initiatives face several challenges and criticisms.
Recent Trends of Special Conservation Drives:
Increased Initiatives: There has been a surge in global and national tree planting drives, such as the “One Trillion Project” by the World Economic Forum, Pakistan’s “10 Billion Tree Tsunami,” China’s “Great Green Wall,” and the “Bonn Challenge” to restore degraded landscapes.
High Media Attention: These drives often feature catchy slogans and glamorous campaigns that attract substantial media attention and public involvement.
Annual Events: India celebrates Van Mahotsava annually in July, aiming to promote tree planting and environmental conservation.
Issues Associated with These Drives:
Limited Community Participation: Many programs lack significant involvement from local communities, affecting their effectiveness and sustainability.
Post-Planting Measures: Insufficient focus on post-planting care and monitoring hinders the success of tree planting efforts.
Monoculture Risks: Some drives promote monoculture, which can be detrimental to biodiversity and carbon sequestration.
Ecological Impact: Inappropriate tree planting in non-deforested areas like grasslands or animal habitats can damage ecosystems, increase wildfire risk, and exacerbate global warming.
India’s Accountability and Challenges Toward Environmental Goals:
Achievements: India claims to have fulfilled its Paris Agreement commitments and achieved an additional carbon sink of 1.97 billion tonnes of CO2 equivalent.
Encroachment and Loss: Approximately 10 million hectares of Indian forests are under encroachment, and about 5.7 million hectares have been lost for non-forestry purposes.
Dependence on Forests: Nearly 27.5 crore people rely on forests for subsistence, highlighting the importance of sustainable management.
Restoration Goals: India aims to restore 26 million hectares of degraded forests by 2030, but faces challenges such as encroachment and the need for effective tree planting strategies.
Way forward:
Community Involvement: Need to foster local participation in tree planting drives by involving communities in planning, execution, and ongoing maintenance.
Monitoring and Maintenance: Try to implement robust post-planting monitoring and care systems to ensure the survival and growth of planted trees.
Policy and Strategy Improvements: To address criticism of mass planting drives, India needs to prioritize adequate financing, active community participation, and technical considerations in forestry and restoration strategies.
From UPSC perspective, the following things are important :
Prelims level: Equity Linked Savings Schemes (ELSS); Section 80C of the Income Tax Act.
Why in the News?
Equity Linked Savings Schemes (ELSS) are mutual fund schemes that offer tax benefits under Section 80C of the Income Tax Act.
Recently, ELSS has seen a decline in popularity, with more money being withdrawn from these schemes than invested.
What is Section 80C of the Income Tax Act?
Section 80C permits certain investments and expenses to be tax-exempted.
By well-planning the 80C investments that are spread diversely across various options like National Savings Certificate (NSC), Unit Linked Insurance Plan (ULIP), Public Provident Fund (PPF), etc., an individual can claim deductions up to Rs 1,50,000.
By taking tax benefits under 80C, one can avail of a reduction in tax burden.
About Equity Linked Savings Schemes (ELSS)
An ELSS fund or an equity-linked savings scheme is the only kind of mutual funds eligible for tax deductions under the provisions of Section 80C of the Income Tax Act, 1961.
Investors can claim a tax rebate of up to Rs 1,50,000 and save up to Rs 46,800 a year in taxes by investing in ELSS mutual funds.
ELSS mutual funds’ asset allocation is mostly (65% of the portfolio) made towards equity and equity-linked securities such as listed shares.
They may have some exposure to fixed-income securities as well.
These funds come with a lock-in period of 3 years only, the shortest among all Section 80C investments.
Being market-linked, they are subject to market risk, but may offer potentially higher returns compared to traditional tax-saving instruments like National Savings Certificate (NSC) or Public Provident Fund (PPF).
Recent Trends in ELSS
In the past few months, more money has been taken out of ELSS than put in.
For example, last month ₹445 crore was withdrawn, while in April it was ₹144 crore.
In the last fiscal year, only ₹1,041 crore was invested in ELSS, compared to ₹7,744 crore the previous year.
Impact of the New Tax Regime
A new tax regime was introduced in 2020-21, which is now the default option.
The old tax regime offered various tax exemptions and deductions, helping to reduce income tax.
These benefits are not available under the new tax regime, making ELSS less attractive to investors.
PYQ:
[2021] Indian Government Bond Yields are influenced by which of the following?
Actions of the United States Federal Reserve
Actions of the Reserve Bank of India
Inflation and short-term interest rates
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
