From UPSC perspective, the following things are important :
Prelims level: Finance Commission
Mains level: Vertical Fiscal Imbalance (VFI) in India;
Why in the News?
The financial relationship between the Union and State governments in India is imbalanced, similar to other nations with a federal constitutional structure.
What is Vertical Fiscal Imbalance (VFI)?
Vertical fiscal imbalance (VFI) refers to the mismatch between the revenue-raising powers and expenditure responsibilities of different levels of government (between the Center and state) within a country.
Why should Vertical Fiscal Imbalance (VFI) be reduced?
Decentralization of Expenditure: States are responsible for 61% of the revenue expenditure, focusing on crucial sectors like health, education, and infrastructure, but they generate only 38% of the revenue.
This imbalance creates a dependency on central transfers, limiting the States’ fiscal autonomy.
Need Efficiency in Spending: Reducing VFI would provide states with more resources, allowing them to respond better to local needs and improve governance efficiency.
Need to strengthen Fiscal Federalism: A reduction in VFI promotes a healthier system of cooperative federalism, ensuring that states have adequate resources to carry out their constitutional responsibilities and meet the demands of their populations.
Need Preparedness for crises: VFI becomes more pronounced during crises (e.g., COVID-19), leading to fiscal stress for States. A more balanced fiscal arrangement ensures better crisis management at the sub-national level.
Present Scenario of VFI and Tax Devolution in India
VFI Extent: The 15th Finance Commission noted that despite States‘ heavy spending responsibilities, their revenue-raising powers are limited.
Tax Devolution Rates: The 14th and 15th FC recommended devolving 42% and 41%, however, estimates suggest that an average share of 48.94% was necessary between 2015-2023 to eliminate the VFI.
Exclusion of Cesses and Surcharges: The exclusion of cesses and surcharges from the divisible pool of taxes shortens the net proceeds. States argue this limits the resources available to them to meet their expenditure responsibilities.
Fiscal Responsibility: Despite the constraints, states have largely adhered to borrowing limits under fiscal responsibility legislation. However, states still struggle to meet their expenditure responsibilities, highlighting the need for greater financial support from the Centre.
Note: The Sixteenth Finance Commission was constituted on December 31 2023 with Dr. Arvind Panagariya as the Chairman. The 16th FC has been requested to make its report available by the 31st day of October 2025 covering 5 years commencing on the 1st day of April, 2026.
What should be the role objective of the 16th FC?
Increase Tax Devolution: Many States demand that tax devolution from the Union’s net proceeds should be raised to 50%. The 16th Finance Commission must consider raising the devolution rate to around 49% to address the VFI and ensure sufficient untied funds for States.
Address Cesses and Surcharges: The 16th Finance Commission should evaluate the exclusion of cesses and surcharges from the divisible pool.
Empower States with Fiscal Autonomy: The Commission’s objective should be to empower States with greater fiscal autonomy by ensuring adequate resources for them to perform their constitutional duties without undue dependence on the Centre.
Support Local Priorities: The Commission should aim to provide States with untied resources, enabling them to cater to jurisdictional needs and set priorities that align with their specific developmental challenges, ensuring a more responsive governance system.
From UPSC perspective, the following things are important :
Prelims level: India-Africa Relations;
Mains level: Significance of Africa for India; India-China;
Why in the News?
India has invested approximately $75 billion in Africa, focused on energy assets and mining.
This includes reaching out to resource-rich countries in Africa and Latin America to negotiate access to critical mineral resources.
Recent Initiatives by the Indian Government:
Critical Mineral Mission (Union Budget 2024-25): This mission aimed at securing the supply of critical minerals crucial for India’s economic growth and green transition.
It focuses on expanding domestic production, recycling critical minerals, and incentivizing overseas acquisition.
Mines and Minerals (Development and Regulation) Amendment Bill, 2023: Removes six minerals from the atomic list, allowing private sector participation in their exploration.
This also supports India’s drive for self-reliance in critical minerals, such as lithium, cobalt, and rare earth elements.
Khanij Bidesh India Limited (KABIL): It was established in 2019 to secure overseas critical mineral assets. It Signed its first lithium exploration deal in Argentina in 2024, marking a significant step towards India’s goal of securing critical mineral supplies.
Africa’s significance in advancing Global and Indian Priorities
Critical Mineral Reserves: Africa holds 30% of the world’s critical mineral reserves, making it a crucial partner for India’s supply chain needs.
Existing Partnerships: India has strong political, economic, and historical ties with Africa, including a three-million-strong diaspora and $98 billion in bilateral trade (2022-23), with a focus on mining and mineral sectors.
India has already invested $75 billion in Africa, largely for energy asset acquisition.
African Green Mineral Strategy: African countries are moving towards minerals-based industrialization. Policies in Tanzania, Zimbabwe, and Namibia focus on value addition, offering India an opportunity to align its critical mineral strategy with Africa’s development goals
Major issues in Africa
Sudan and Syria Issue:
Humanitarian Crisis: Sudan’s crisis is particularly acute due to its strategic location and resource wealth, leading to a massive displacement crisis, with over 10 million people displaced since April 2023
Parallel Conflicts: Both Sudan and Syria have experienced severe internal conflicts driven by authoritarian regimes, regional power plays, and foreign interventions, leading to widespread human suffering and instability.
India’s Strategic Considerations:
Economic Interests: India’s trade with Sudan reached $2,034 million in 2022-23, with a significant trade surplus. India has also invested heavily in Sudan’s oil sector, with cumulative investments worth $2.3 billion.
Historical Ties: India has maintained strong people-to-people ties with Sudan, including educational exchanges and medical tourism. President A.P.J. Abdul Kalam’s visit in 2003 reinforced these relations.
Humanitarian and Diplomatic Engagement: India evacuated its nationals early in the conflict, but the ongoing crisis may require continued diplomatic and humanitarian engagement to protect its broader interests in the region.
Challenges of China-Africa Debt:
Chinese loans to African countries amounted to approximately $170 billion from 2000 to 2022. However, Chinese lenders represent only about 12% of Africa’s total public and private debt, indicating that China is not the primary creditor.
A significant portion of Chinese loans is not disclosed in sovereign debt records, complicating the understanding of Africa’s overall debt levels. This lack of transparency raises concerns about the sustainability of these debts.
Despite concerns over “debt trap diplomacy,” China is unlikely to forgive or cancel debts but may consider writing off smaller, interest-free loans.
China Domination:
China dominates the global critical mineral supply chain, particularly in cobalt mining in Africa (e.g., the Democratic Republic of Congo). China’s control poses significant risks for India, especially in terms of access and geopolitical influence.
Recently, China signed a $7 billion minerals-for-infrastructure deal, demonstrating its strategic approach to securing mineral resources in Africa.
What are the opportunities for the Indian Government? (Way forward)
Collaborating on Infrastructure and Technology: India can support Africa’s critical mineral sector by building mining-adjacent infrastructure (e.g., railways, power grids) and providing technological solutions through its tech start-ups to enhance mining exploration, extraction, and processing.
Strengthening Diplomatic and Economic Ties: Leveraging existing partnerships and India’s deep historical ties with Africa, the government can work with African nations on strategic projects and value addition initiatives, supporting both regions’ developmental goals.
Reducing Dependence on China: By engaging with African countries for critical minerals, India can diversify its supply chains, reducing the economic and geopolitical risks posed by China’s dominance in the global critical mineral market.
From UPSC perspective, the following things are important :
Prelims level: Aparajita Bill, Disha Bill and Shakti Bill;
Mains level: Issues related to women;
Why in the News?
Due to the ongoing protest in Kolkata, the WB Assembly has unanimously passed a Bill mandating the death penalty for rape cases where victims die or are left in vegetative states.
Features of West Bengal’s Aparajita Bill:
Death Penalty: The Bill mandates the death penalty for individuals convicted of rape if the victim dies or is left in a permanent vegetative state. It also introduces the death penalty as the maximum punishment for all rape cases.
Amendments to Existing Laws: The Bill amends the Bharatiya Nyaya Sanhita, 2023, Bharatiya Nagarik Suraksha Sanhita, 2023, and the Protection of Children from Sexual Offences Act, 2012, to strengthen penalties for sexual offenses.
Special Task Force and Courts: It establishes a district-level Aparajita Task Force for investigating rape cases and mandates the creation of Special Courts to expedite trials, aiming to complete investigations within 21 days.
Increased Penalties for Repeat Offenders: The Bill enhances punishments for repeat offenders, replacing simple life imprisonment with rigorous life imprisonment.
Privacy Protections: It introduces penalties for unauthorized disclosure of a victim’s identity and for publishing information related to court proceedings in rape cases.
Focus on Speedy Justice: The Bill aims to reduce the time frame for investigations and trials, emphasizing a victim-centered approach to minimize trauma.
How Bengal’s Aparajita Bill differ from the Andhra Pradesh and Maharashtra laws?
Dimensions
West Bengal (Aparajita Bill)
Andhra Pradesh (Disha Bill)
Maharashtra (Shakti Bill)
Scope of Death Penalty
Death is mandatory in cases of rape leading to the victim’s death or vegetative state
Death penalty for the rape of minors below 16, gang rape, and repeat offenders
Similar to Andhra Pradesh, it introduced the death penalty for heinous cases, such as acid attacks and severe rape cases, but it also does not mandate death in all instances.
Special Institutions
Aparajita Task Forces and Special Courts in every district specifically for rape cases, ensuring expedited legal proceedings with strict timelines.
Propose Special Police Teams and Exclusive Special Courts for dealing with crimes against women, along with a registry for offenders.
Formation of special courts but also emphasizes digital cooperation
Timeframes for Legal Processes:
Investigation time is 21 days (extendable to 15 more), and trials must be completed within 30 days post-chargesheet.
Investigation time is seven days and mandates trials be completed within 21 days.
Completed within 15 working days after an FIR is filed, with an extension of up to 7 days if the investigating officer provides written reasons for the delay and the trial must be completed within 30 working days from the date of filing the charge sheet.
Amendments to POCSO
Introduces the death penalty for penetrative sexual assault under the POCSO Act.
Amended the POCSO Act to include death penalties, particularly for heinous offenses, but do not make it mandatory in all cases.
Same as Disha bill
Use of Digital Platforms
No available
No available
Unique features penalizing social media platforms and intermediaries that fail to provide requested data for investigations.
Why President’s Assent is essential?
Criminal law falls under the Concurrent List of the Indian Constitution, meaning both state and central legislatures can legislate on the subject. However, state laws require the President’s approval to take precedence over existing central laws.
Without presidential assent, the provisions of the Aparajita Bill, as well as those from Andhra Pradesh and Maharashtra, cannot be enforced, rendering them ineffective despite being passed by the respective state assemblies.
Conclusion:
The state should launch public awareness campaigns and involve stakeholders to build broad-based support, emphasizing the Bill’s objectives of enhancing victim protection and delivering speedy justice to encourage timely presidential approval.
The PM’s upcoming visit to Singapore offers a chance to reflect on the current state of the relationship. India-Singapore ties are dynamic, continually presenting new opportunities.
India-Singapore Bilateral Relations
Historical Ties: Diplomatic relations were established shortly after Singapore’s independence in 1965, with India being one of the first countries to recognize Singapore.
The relationship has evolved through high-level visits and collaborations, particularly since the 1990s.
Look East Policy: Singapore has been pivotal in India’s “Look East” policy initiated in the early 1990s, which aimed to strengthen economic and strategic ties with Southeast Asia.
Comprehensive Economic Cooperation Agreement (CECA): Signed in 2005, CECA has significantly enhanced trade and investment ties, making Singapore India’s largest ASEAN trading partner and a key foreign direct investment (FDI) source.
Defense and Security Cooperation: The bilateral relationship includes extensive defence cooperation, with joint military exercises and training, particularly in maritime security, reflecting shared strategic interests.
What is Singapore’s contribution to India’s Growth Story?
Economic Hub: Singapore is India’s largest trade partner in ASEAN. Singapore serves as a crucial gateway for Indian companies seeking to expand in Southeast Asia, providing a robust platform for trade and investment.
Largest Source of FDI: It is the leading source of FDI, among the largest sources of External Commercial Borrowings and Foreign Portfolio Investment, accounting for about 17% of total FDI inflows since 2000, with investments exceeding USD 136 billion over the last 22 years.
Knowledge exchange: Singapore’s status as a hub for Indian talent, especially from IITs and IIMs, facilitates knowledge exchange and enhances India’s capabilities in various sectors
Cultural Exchange: The strong cultural ties, supported by the Indian community in Singapore, have enriched bilateral relations. Ethnic Indians constitute approximately 9.1% of Singapore’s resident population.
How this relationship can achieve more considering the ASEAN region and Chinese dominance? (Way forward)
Strategic Partnership: The relationship can be further strengthened by enhancing strategic dialogues and collaborations in areas like security, technology, and sustainability, particularly in the context of the Indo-Pacific region.
Regional Connectivity: Initiatives like the Trilateral Highway, which aims to connect India with Myanmar and Thailand, can enhance regional connectivity and trade, positioning India and Singapore as central players in ASEAN.
Countering Chinese Influence: As China asserts its influence in the region, India and Singapore can collaborate more closely to address shared concerns, leveraging their partnership to promote stability and security in Southeast Asia.
Emerging Technologies: Focusing on emerging sectors such as semiconductors, green technologies, and electric mobility can open new avenues for cooperation, aligning with both nations’ goals for sustainable development.
From UPSC perspective, the following things are important :
Prelims level: Centrally Sponsored initiatives related to the Health sector;
Mains level: Health Infrastructure and Funding in India;
Why in the News?
Realizing the full potential of Union Budget 2024-25 health allocations depends on State-level factors, as states share costs and handle the implementation of Centrally Sponsored Schemes (CSS).
About the two major Centrally Sponsored initiatives
Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM): Focuses on improving health infrastructure through health and wellness centres (AB-HWCs), block-level public health units (BPHUs), district public health laboratories (IDPHLs), and critical care hospital blocks (CCHBs).
Human Resources for Health and Medical Education (HRHME): Aims to boost medical personnel by building new medical, nursing, and paramedical colleges, increasing seats, and upgrading district hospitals to medical colleges.
Issue of Low Fund Utilization and Faculty Shortage:
Poor Fund Absorption in PM-ABHIM: Fund absorption has been poor, with only 29% used in 2022-23. The reasons are – complex execution structures, reliance on health grants from the 15th FC (only 45% utilized), and delays in construction due to rigid procedures.
Low Fund Utilization in HRHME: Utilization of funds in educational infrastructure was only around 25% of the budget estimates in both 2022-23 and 2023-24.
Shortage of teaching faculty: There is a significant shortage of teaching faculty in newly established medical institutions, with over 40% vacancies reported in 11 of the 18 All India Institutes of Medical Sciences.
For example, in Uttar Pradesh, 30% of teaching faculty positions were vacant in 2022 for government medical colleges established between 2019-21.
Lack of specialist positions: The shortage of specialists affects the establishment and upgrading of medical colleges and district hospitals, with more than a third of sanctioned specialist positions in urban CHCs and two-thirds in rural CHCs remaining vacant as of March 2022.
How can states work on Fiscal space? (Way forward)
Enhanced Budget Planning and Allocation: States should prioritize and allocate funds efficiently for health infrastructure and recurring costs.
Strengthening Revenue Generation: States can explore increasing their own revenue sources through improved tax collection, introducing new revenue streams, or enhancing public-private partnerships.
Optimizing Expenditure Management: Implementing better financial management practices, such as cost control measures, transparent procurement processes, and efficient use of existing resources, can help in managing and maximizing the impact of budget allocations for health infrastructure and services.
From UPSC perspective, the following things are important :
Prelims level: Bandipur Tiger Reserve (BTR)
Why in the News?
An elephant was rescued from a rail barricade in the Maddur range of Bandipur Tiger Reserve.
About the Bandipur Tiger Reserve (BTR):
Details
Location
Mysore and Chamarajanagar districts, Karnataka; at the tri-junction of Karnataka, Tamil Nadu, and Kerala.
Part of
Nilgiri Biosphere Reserve, a UNESCO World Heritage Site.
Geography
“Ecological confluence” of the Western and Eastern Ghats (along with Mudumalai and Wayanad)
History
Established as Venugopala Wildlife Park in 1931; expanded as Bandipur Tiger Reserve under Project Tiger in 1973.
Surrounding Reserves
Bordered by Nagarahole Tiger Reserve (NW), Mudumalai Tiger Reserve (S), and Wayanad Wildlife Sanctuary (SW).
Rivers
Surrounded by River Kabini (North) and River Moyar (South).
Climate
Tropical climate with distinct wet and dry seasons.
Flora
Dry deciduous to tropical mixed deciduous forests; includes rosewood, sandalwood, Indian laurel, and bamboo species.
Fauna
Home to the largest population of wild Asian elephants in South Asia; also includes Bengal tiger, gaur, sloth bear, dhole, and others.
PYQ:
[2017] From the ecological point of view, which one of the following assumes importance in being a good link between the Eastern Ghats and the Western Ghats?
From UPSC perspective, the following things are important :
Prelims level: Read the attached story
Why in the News?
The Indian Army has announced two significant events, HIM-DRONE-A-THON 2 and HIMTECH-2024, aimed at advancing military technologies for operations in high-altitude areas.
About HIM-DRONE-A-THON 2
HIM-DRONE-A-THON 2 is scheduled to take place at Wari La, near Leh on 17-18 September 2024.
This event serves as a platform for the Indian Drone Industry to demonstrate drone solutions tailored for high-altitude areas, where the Indian Army frequently operates.
The event will be conducted under actual terrain and environmental conditions at altitudes ranging from 4,000 to 5,000 meters to test the drones’ performance in realistic scenarios.
Indigenous drone manufacturers are invited to participate, demonstrating various drone types, including:
Surveillance drones
Loitering munitions
Logistics drones
Swarm drones
Drones with specialized roles and payloads, such as Electronic Warfare, Synthetic Aperture Radar, Communication Intelligence, and Electronic Intelligence.
It is conceptualized to discuss, demonstrate, and explore new opportunities for the development and integration of technologies for high-altitude military operations.
It has been organized in collaboration with FICCI (Federation of Indian Chambers of Commerce & Industry).
It will highlight the latest technologies and systems developed to meet the operational requirements along India’s Northern Borders.
From UPSC perspective, the following things are important :
Prelims level: Project ‘Strawberry’; LLMs.
Why in the News?
OpenAI has planned to release its most powerful AI model likely as part of ChatGPT-5. Initially called Project Q* (Q-star), it is now codenamed Project Strawberry.
What is Project Strawberry?
Nearly six months ago, OpenAI’s secretive Project Q* (Q-Star) gained attention for its innovative approach to AI training.
OpenAI is now working on a new reasoning technology under the code name “Strawberry” believed to be the new name for Project Q*.
Strawberry aims to enable AI models to plan ahead, autonomously search the internet, and conduct deep research.
What are Large Language Models (LLMs)?
LLMs are advanced artificial intelligence (AI) systems designed to understand, generate, and process human language.
They are built using deep learning techniques, particularly neural networks, and are trained on vast amounts of text data.
Difference from Existing AI Models
Existing Large Language Models (LLMs) can summarize texts and compose prose but struggle with common sense problems and multi-step logic tasks.
Current LLMs cannot plan ahead effectively without external frameworks.
Strawberry models are expected to enhance AI reasoning, allowing for planning and complex problem-solving.
These models could enable AI to perform tasks that require a series of actions over an extended time, potentially revolutionizing AI’s capabilities.
Potential Applications of Strawberry Models
Advanced AI models could conduct experiments, analyze data, and suggest new hypotheses, leading to breakthroughs in sciences.
In medical research, AI could assist in drug discovery, genetics research, and personalized medicine analysis.
AI could solve complex mathematical problems, assist in engineering calculations, and participate in theoretical research.
AI could contribute to writing, creating art and music, generating videos, and designing video games.
PYQ:
[2020] With the present state of development, Artificial Intelligence can effectively do which of the following?
Bring down electricity consumption in industrial units.
Create meaningful short stories and songs.
Disease diagnosis.
Text-to-Speech Conversion.
Wireless transmission of electrical energy.
Select the correct answer using the code given below:
(a) 1, 2, 3 and 5 only
(b) 1, 3 and 4 only
(c) 2, 4 and 5 only
(d) 1, 2, 3, 4 and 5
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: Review Petition
Why in the News?
Some medical students have filed a review petition against the Supreme Court’s dismissal of their plea to cancel NEET UG 2024 over alleged malpractices.
What is a Review Petition?
Details
Constitutional Provision
Article 137 of the Constitution allows the Supreme Court to review any of its judgments or orders.
Scope of Review
Corrects “patent errors” and not minor mistakes.
It is not an appeal; it does not involve re-evaluating the entire case but correcting grave errors resulting in a miscarriage of justice.
Filing Review Petition
Can be filed by any person aggrieved by a ruling, not necessarily a party to the case.
Must be filed within 30 days of the judgment or order.
Delay can be condoned if justified with strong reasons.
Grounds for Review
Discovery of new and important evidence not available earlier despite due diligence.
Mistake or errors apparent on the face of the record.
Procedure in the Court
Review petitions are usually heard through circulation without oral arguments.
In exceptional cases, oral hearings may be allowed, especially in death penalty cases.
Heard by the same bench of judges who delivered the original judgment or order.
Option After Review Fails
If a review petition is dismissed, a curative petition can be filed as per the Roopa Hurra v. Ashok Hurra (2002) ruling, on very narrow grounds similar to a review petition.
PYQ:
[2017] In India, Judicial Review implies:
(a) the power of the Judiciary to pronounce upon the constitutionality of laws and executive orders.
(b) the power of the Judiciary to question the wisdom of the laws enacted by the Legislatures.
(c) the power of the Judiciary to review all the legislative enactments before they are assented to by the President.
(d) the power of the Judiciary to review its own judgements given earlier in similar or different cases.
From UPSC perspective, the following things are important :
Prelims level: World's orogenic gold systems;
Mains level: Reason and significance of the world's orogenic gold systems;
Why in the News?
Researchers have been curious about why the majority of gold nuggets discovered throughout history have been found in orogenic quartz veins.
Location and distribution of Gold:
Orogenic gold systems are commonly found in mountainous regions where large-scale geological processes, such as the collision of tectonic plates, have occurred.
For example, the Himalayas, the Canadian Shield, and the Western Australian goldfields.
Large gold nuggets are often found in orogenic quartz veins formed during the tectonic processes that create mountains.
These nuggets form because, during earthquakes, the stress on quartz crystals causes a reaction that deposits gold on their surfaces. This process happens repeatedly, leading to the accumulation of gold nuggets.
Note:
Gold nuggets are naturally occurring pieces of gold that have formed into lumps or chunks. They are typically found in riverbeds, streams, or within rock formations, often in quartz veins.
Orogenic quartz veins are quartz veins that form in mountainous regions.
Findings by Researchers:
Piezocatalytic Effect and Gold Accumulation: Researchers discovered that the piezocatalytic effect of quartz under seismic stress causes the accumulation of gold in quartz veins.
The piezoelectric quartz crystal generates an electric field when subjected to stress.
This field can drive electrochemical reactions at the interface between the quartz and a surrounding aqueous solution containing dissolved gold. These reactions cause gold to be deposited on the quartz surface.
Seismic Activity and Localized Gold Deposits: The study suggests that gold nuggets in orogenic systems are formed through repeated piezocatalytic reactions over time, driven by natural seismic activity. This process explains the highly localized and interconnected nature of gold deposits within quartz veins.
Conclusion: Researchers have found that gold nuggets in orogenic quartz veins form through piezocatalytic reactions caused by seismic stress on quartz. This process drives gold deposition on quartz surfaces, explaining the concentration and localization of gold in mountainous regions.
Mains PYQ:
Q Craze for gold in Indian has led to surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization scheme. (UPSC IAS/2015)
From UPSC perspective, the following things are important :
Mains level: Impact of tax cut on the economy;
Why in the News?
Before the pandemic, the U.S. and India reduced corporate taxes to boost growth but we now we can evaluate their effects.
Case Study on the Effects of Tax Cuts in the U.S.
The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, significantly reduced the corporate tax rate from 35% to 21%. A recent analysis by economists Gabriel Chodorow-Reich, Owen Zidar, and Eric Zwick highlights several key findings:
Investment Increase: The TCJA led to an estimated increase in investment of approximately 8% to 14%.
GDP Growth: The long-term increase in GDP is projected to be modest, around 0.9%, which is substantially lower than initial expectations.
Wage Impact: The increase in annual wages due to the tax cuts was less than $1,000 per worker, contrasting sharply with earlier claims of increases between $4,000 and $9,000.
Tax Revenue Decline: The TCJA is expected to result in a long-term reduction in tax revenue of nearly 41%, raising concerns about the fiscal health of the U.S. economy.
Tax Cuts in India
In September 2019, India also implemented corporate tax cuts, reducing the rate for existing companies from 30% to 22% and for new companies from 25% to 15%. The primary reason for this move was to stimulate economic growth and attract investment, particularly in the manufacturing sector.
Impact of the Tax cuts:
Revenue Loss: The tax cuts resulted in a revenue loss of approximately ₹1 lakh crore in 2020-21.
Gig workers (insecure forms of work): Although unemployment has decreased since the pandemic, much of the new employment is in insecure forms of work.
Decline in Regular Employment: According to the Periodic Labour Force Survey (PLFS) in India, the share of regular wage employment fell from 22.8% in 2017-18 to 20.9% in 2022-23.
Tax Burden Shift: There has been a notable shift in the tax burden from corporate taxes to individual income taxes. The share of corporate taxes in gross tax revenues fell from about 32% in 2017-18 to 26.5% in 2024-25.
What must be the next step? ( Way forward)
Focus on Future Investment: Policymakers should consider implementing high taxes on existing profits while providing incentives for future investments to stimulate economic activity.
Addressing Income Inequality: Tax policies should be designed to ensure that the benefits of tax cuts do not disproportionately favour wealthier individuals or corporations at the expense of wage earners.
Evaluating Economic Conditions: Need to evaluate the tax cuts to ensure they are not merely providing short-term benefits without addressing long-term growth and fiscal stability.
Mains PYQ:
Q Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. (UPSC IAS/2019)
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: About Harm Principle,
Mains level: Significance of Freedom of Speech and Expression and its limitation;
Why in the News?
A minor girl’s gang rape in Assam led to Chief Minister Sarma’s anti-Muslim remarks, criticized as hate speech, violating India’s secular Constitution and potentially harming societal harmony, breaching Mill’s Harm Principle.
What does the Harm Principle Say?
The harm principle, articulated by philosopher John Stuart Mill in his essay on ‘Liberty’, asserts that the actions of individuals should only be limited to prevent harm to others.
Legitimate Use of Power: The only justification for exercising power over any member of a civilized community, against their will, is to prevent harm to others. This means that individual liberties should be respected unless they infringe upon the rights or well-being of others.
Self-Regarding vs. Other-Regarding Actions: Mill distinguishes between self-regarding actions (which affect only the individual) and other-regarding actions (which affect others).
Society or the state has no right to interfere in self-regarding actions, but it can regulate other-regarding actions that cause harm.
Definition of Harm: Harm is defined as wrongful setbacks to interests to which individuals have rights. Mill emphasizes that mere offence or disapproval does not constitute harm.
For example, someone may be offended by another’s opinion, but this does not justify restricting that opinion unless it incites violence or causes direct harm.
Limitations of Freedom: Mill acknowledges that while individuals should have the freedom to act as they choose, this freedom can be curtailed when their actions pose a significant threat to others. For instance, inciting violence is harmful and justifies state intervention.
What does Mill say about ‘Freedom of Speech and Expression’?
Importance of Free Speech: Mill talks about the idea that all opinions, whether true or false,should be allowed to flourish because they contribute to the pursuit of truth.
Silencing any opinion robs humanity of the opportunity to challenge and refine its beliefs.
Truth and Error: Mill argues that the collision of differing opinions helps people correct their errors and strengthen their understanding of the truth. Even false beliefs are valuable as they force us to defend and reinforce our beliefs.
Limitations: While Mill strongly advocates for free speech, he acknowledges that it can be limited in cases where speech directly incites harm, such as inciting violence against a specific group. He provides the example of expressing harmful opinions to an agitated crowd, which could lead to immediate danger.
Balancing Freedom and Harm: Mill recognizes that while free speech is vital, it must be balanced against the potential harm it might cause, especially when it leads to violence or significant psychological harm to targeted groups.
Way forward:
Strengthen Legal Frameworks: Enhance laws against hate speech to ensure accountability, balancing the right to free expression with the need to protect societal harmony and prevent violence.
Promote Inter-Community Dialogue: Encourage programs fostering tolerance and understanding between communities, reinforcing the secular principles of the Constitution and mitigating divisive rhetoric.
Mains PYQ:
Q What do understand by the concept “freedom of speech and expression”? Does it cover hate speech also? Why do the films in India stand on a slightly different plane from other forms of expression? Discuss. (UPSC IAS/2014)
From UPSC perspective, the following things are important :
Prelims level: Jaipur, World Heritage Sites in India
Why in the News?
The Walled City of Jaipur, a UNESCO World Heritage Site since 2019, is set for heritage conservation and development with a budget of ₹100 crore.
Aboutthe World Heritage City of Jaipur:
Founded in 1727 by Maharaja Sawai Jai Singh II, Jaipur was designed as a commercial capital with a grid layout that reflects Vedic architectural principles.
Unlike many other Indian cities built in hilly terrains, Jaipur was established on a plain, allowing for a systematic urban design characterized by wide streets and public squares known as chaupars.
Architectural Significance
Jaipur’s urban planning is notable for its geometric structure, which integrates traditional Hindu concepts with modern Western influences.
The city is divided into nine blocks, with two reserved for state buildings and the remaining for public use. Known for its distinctive pink-colored buildings, which give it the nickname “Pink City.”
The architecture features uniform facades along the main streets. Key monuments include:
Hawa Mahal: A palace known for its intricate façade and numerous windows.
City Palace: A royal residence that blends Mughal and Rajput architecture.
Jantar Mantar: An astronomical observatory built by Jai Singh II.
Govind Dev Temple: A significant religious site reflecting the city’s cultural heritage.
Jaipur’s (Pink City) Criteria for UNESCO Recognition
Criterion (ii): Exhibiting an important interchange of human values in architecture and urban planning.
Criterion (iv): Representing a significant example of a planned city that reflects the cultural traditions of its time.
Criterion (vi): Being directly associated with events or living traditions of universal significance, particularly in the context of its festivals and cultural practices.
Other Important Places Contributing to World Heritage Status
Amber Fort (Amer Fort)
A majestic fort known for its artistic Hindu and Mughal architectural style, located on a hill overlooking Maota Lake.
Famous for its intricate carvings, mirror work, and expansive courtyards.
City Palace
A complex of palaces, courtyards, and museums in the heart of Jaipur, reflecting the rich cultural heritage of the region.
Combines Rajput and Mughal architectural styles, showcasing royal artifacts, costumes, and weapons.
Hawa Mahal (Palace of Winds)
A five-story palace with 953 small windows (jharokhas), designed to allow royal women to observe street activities while remaining unseen.
An iconic example of Rajput architecture with intricate latticework and unique design.
Jantar Mantar
An astronomical observatory with 19 large instruments, including the world’s largest stone sundial.
A separate UNESCO World Heritage Site, reflecting the scientific achievements of the 18th century.
Nahargarh Fort
Built in 1734, located on the Aravalli Hills, offering panoramic views of Jaipur city.
Served as a retreat and defensive structure for the royal family, showcasing the military architecture of the period.
From UPSC perspective, the following things are important :
Prelims level: Lothal and other IVC Sites
Why in the News?
A recent study by the Indian Institute of Technology-Gandhinagar (IITGn) has presented new evidence supporting the presence of a dockyard (222 x 37 metres) at Lothal, which was earlier debated.
Evidence of Lothal’s Dockyard
The discovery of Lothal, located in the Bhal region of Gujarat during the 1950s, initiated debates among archaeologists about the existence of a dockyard.
The IITGn study reveals that the Sabarmati River once flowed close to Lothal during the Harappan period, contrasting its current course, which is 20 km away.
The study suggests a trade route linking Ahmedabad, through Lothal, Nal Sarovar, and the Little Rann, to Dholavira, another prominent Harappan site.
Satellite imagery and multi-sensor data analysis have uncovered the ancient channels of the Sabarmati River, confirming Lothal’s strategic location on a significant riverine route.
The study also suggests that traders might have arrived in Gujarat via the Gulf of Khambhat, collected materials from Ratanpura, and transported them to Mesopotamia (modern-day Iraq).
About Lothal:
Details
Location
Bhal region, Gujarat, India
Historical Significance
Built around 2200 BC; major trade centre for beads, gems, and ornaments
Name Meaning
“Lothal” means “the mound of the dead” in Gujarati (Similar to Mohenjodaro)
Discovery
Discovered by S.R. Rao; excavated from 1955 to 1960
Port City Evidence
Earliest known dock; connected to the ancient Sabarmati River
Key Features
Tidal dockyard, marine microfossils, and a basin for sailing boats
Heritage Status
Nominated for UNESCO World Heritage Site in 2014; only port-town of the Indus Valley Civilization
PYQ:
[2021] Which one of the following ancient towns is well-known for its elaborate system of water harvesting and management by building a series of dams and channelling water into connected reservoirs?
From UPSC perspective, the following things are important :
Prelims level: Anti-Naxal Operations in India
Why in the News?
In a significant anti-Naxal operation, nine Maoists were killed by security forces in the forests along the border of Chhattisgarh’s Dantewada.
This operation was part of ongoing efforts to eliminate Naxalite influence in the region.
Anti-Naxal Operation in Dantewada
Dantewada, a district in the Bastar region of Chhattisgarh, India, is known as a hotbed of Naxal (Maoist) insurgency.
The region has seen numerous anti-Naxal operations over the years due to its dense forests, rugged terrain, and the presence of significant Naxalite (Maoist) cadres.
Important security operations against Naxalism:
Details
Operation Greyhounds
1989 – Ongoing: A specialized anti-Naxal force created to combat Naxal insurgency in Andhra Pradesh and Telangana.
Operation Green Hunt
2009 – Ongoing: To flush out Naxalite insurgents in the “Red Corridor ” from their strongholds.
Operation Thunderstorm
2010: To target Naxal cadres in the dense forest regions of Lalgarh, West Bengal.
Operation Octopus
2014: To clear Maoist influence from the Sukma district of Chhattisgarh.
Operation All Out
2015 – Ongoing: To launch coordinated offensive operations against Naxalites in Jharkhand and Bihar.
Operation Samadhan
2017 – Ongoing: A comprehensive strategy to combat LWE by addressing both security and developmental issues.
Operation Prahar
2017 – Ongoing: To eliminate top Maoist leaders and dismantle support networks in the Bastar region of Chhattisgarh.
Operation Monsoon
2018: To target Maoist groups during the monsoon season when their activities are restricted.
PYQ:
[2022] Naxalism is a social, economic and developmental issue manifesting as a violent internal security threat. In this context, discuss the emerging issues and suggest a multi-layered strategy to tackle the menace of Naxalism.
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 :
Prelims level: SCOMET List
Why in the News?
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has released the updated SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) list for the year 2024.
What is the SCOMET List?
Details
Purpose
To regulate the export of dual-use items that can be used for both civilian and military applications, particularly those that could contribute to the development of weapons of mass destruction (WMDs) and their delivery systems.
Regulatory Authority
Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India.
Notification
Notified by DGFT under Appendix 3 to Schedule 2 of the ITC (HS) Classification of Export and Import Items.
Legal Framework
Governed by Chapter IVA of the Foreign Trade (Development & Regulation) Act, 1992, as amended in 2010.
This chapter provides the legal basis for export control of dual-use items and outlines penalties for non-compliance.
Policy and Procedures
Outlined in Chapter 10 of the Foreign Trade Policy (FTP) and the Handbook of Procedures (HBP) 2023.
These documents provide the detailed procedure for licensing, application, and compliance for exporting SCOMET items.
Categories
The SCOMET List includes multiple categories:
1. Category 0: Nuclear materials and nuclear-related dual-use items.
2. Category 1: Toxic chemical agents and precursors.
3. Category 2: Materials and materials processing equipment.
4. Category 3: Electronics.
5. Category 4: Computers.
6. Category 5: Telecommunications and information security.
7. Category 6: Sensors and lasers.
8. Category 7: Navigation and avionics.
9. Category 8: Marine.
10. Category 9: Aerospace and propulsion.
New Licensing Authority for Category 6
Department of Defence Production (DDP), Ministry of Defence is the new licensing authority for the export of items under Category 6 (Sensors and Lasers).
Export Licensing
Exporters must obtain a specific license from DGFT (or DDP for Category 6) to export SCOMET items.
The licensing process includes a comprehensive review to ensure that exports do not contribute to the proliferation of WMDs or unauthorized military use.
From UPSC perspective, the following things are important :
Prelims level: China-Africa Cooperation (FOCAC);
Mains level: India-Africa relation;
Why in the News?
The 9th edition of the Forum on China-Africa Cooperation (FOCAC) is scheduled to be held in Beijing from 4th to 6th September, 2024.
About the China-Africa Cooperation (FOCAC)
The Forum on China-Africa Cooperation (FOCAC) was established in 2000 to enhance the strategic partnership between China and African nations. It serves as a platform for collective dialogue and cooperation in various sectors, including trade, investment, and development.
Challenges of China-Africa Debt:
Chinese loans to African countries amounted to approximately $170 billion from 2000 to 2022. However, Chinese lenders represent only about 12% of Africa’s total public and private debt, indicating that China is not the primary creditor.
A significant portion of Chinese loans is not disclosed in sovereign debt records, complicating the understanding of Africa’s overall debt levels. This lack of transparency raises concerns about the sustainability of these debts.
Despite concerns over “debt trap diplomacy,” China is unlikely to forgive or cancel debts but may consider writing off smaller, interest-free loans.
African Priorities at FOCAC 2024
Economic Goals: African nations are focusing on enhancing trade relations with China, with a modest goal of $300 billion in imports from Africa between 2022-2024. As of mid-2024, trade has reached $167 billion, primarily dominated by raw materials.
Agricultural Development: There is a pressing need to develop a sustainable agricultural industry in Africa. This includes improving the processing of agricultural commodities and leveraging the expertise of countries like China and India to enhance crop resilience and productivity.
Green Energy and Industrialization: African countries are advocating for the establishment of refining and processing hubs to increase the value added from their raw materials.
What are the learnings that India can have?
Continuity in Engagement: India should emphasize consistent engagement with Africa, particularly by organizing the India-Africa Forum Summit (IAFS-IV) to capitalize on recent momentum, especially after the African Union’s inclusion in the G-20.
Support for Industrialization: Indian companies are encouraged to invest in higher value-added sectors in Africa, such as agriculture and pharmaceuticals, to foster local employment and market development.
Private Sector Participation: Greater involvement of the Indian private sector is essential, along with innovative financing solutions like public-private partnerships to support projects in Africa.
Digital and Financial Connectivity: Utilizing India’s digital stack and establishing rupee-based financial transactions can enhance connectivity and reduce forex risks for African nations.
Conclusion: India should deepen its strategic partnerships with African nations by expanding bilateral and multilateral engagements, focusing on key sectors like healthcare, digital infrastructure, and renewable energy. Leveraging India’s experience in these areas can help address African development needs while enhancing India’s influence on the continent.
Mains PYQ:
Q Increasing interest of India in Africa has its pros and cons. Critically Examine. (UPSC IAS/2015)
From UPSC perspective, the following things are important :
Prelims level: Proportional Representation;
Mains level: Pros and cons of Proportional Representation;
Why in the News?
On July 30, Germany’s constitutional court approved downsizing the Bundestag, citing concerns over financial strain and efficiency due to its unprecedented 736 deputies.
(Note: The Bundestag is the Lower house of Germany)
Why has the German Constitutional Court upheld the move to downsize the lower house of parliament?
Constitutional Rationale: The court approved the plan to reduce the size of the Bundestag to improve its efficiency and reduce costs, as it had become the world’s largest elected assembly.
The court backed the government’s decision to limit the Bundestag to 630 members by removing “overhang” and “balance” seats, which had caused the number of legislators to grow significantly.
Legal Compliance: The court’s decision aligns with previous rulings that emphasized the need for electoral equality and the fair representation of political parties in the Bundestag, ensuring that the election system remains constitutionally valid.
How does a mixed-member Proportional Representation system work?
Dual Voting System: In Germany, each voter casts two votes in federal elections:
First Vote: Directly elects a candidate from a local constituency via the first-past-the-post method (299 seats).
Second Vote:Chooses a political party, which determines the distribution of another 299 seats proportionally across Germany’s 16 regions.
Seat Allocation: The second vote is crucial as it determines the overall proportion of seats each party holds in the Bundestag. The final seat count for each party is based on a combination of directly elected candidates and the proportion of the second vote.
Overhang Seats: If a party wins more direct seats than the proportion of the second vote would allow, these extra seats are known as “overhang seats.” These were traditionally retained, leading to an increase in the total number of seats.
How does a mixed-member Proportional Representation system work in India?
No MMP System in India: India does not use a mixed-member proportional representation system at the national level. The Indian electoral system primarily follows the first-past-the-post method, where the candidate with the most votes in each constituency wins a seat in the parliament.
Proportional Representation: In India, proportional representation (Single transferable) is used only in certain cases, such as elections to the Rajya Sabha (the upper house) and the President.
Types of Proportional Representation:
Single Transferable Vote (STV): This system allows voters to rank candidates in order of preference. It is used to elect members of the Rajya Sabha (Council of States) and the President of India.
Party-List PR: In this system, voters cast their votes for a party rather than individual candidates. Seats are allocated to each party based on the proportion of votes they receive. A minimum threshold (usually between 3-5%) is often required for a party to gain representation, preventing excessive fragmentation in the legislature.
Mixed-Member Proportional Representation (MMP): This combines elements of FPTP and PR, allowing voters to cast two votes—one for a candidate and another for a party. This system aims to balance the benefits of direct representation with proportionality.
What are balance or overhang seats and why were they deemed Unconstitutional?
Overhang Seats: These are additional seats that a party wins when it secures more direct constituency seats than it would be entitled to based on its second vote share. This situation arises due to the mixed-member proportional system.
Balance Seats: Introduced to maintain proportionality and fairness, balance seats are given to other parties to offset the overhang seats, ensuring that the overall seat distribution reflects the second vote shares accurately.
Unconstitutionality: In 2008, the German Constitutional Court ruled that the increasing number of overhang seats violated the principle of electoral equality. The recent judgment further upheld the move to eliminate these seats to simplify the electoral system and maintain fairness.
Conclusion: Germany should swiftly implement the downsizing plan, ensuring that the transition to a 630-member Bundestag is smooth and transparent, with clear communication to the public and political parties.
Mains PYQ:
Q Critically examine the procedures through which the Presidents of India and France are elected. (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: Article 348(1)(a), Article 348 (2)
Why in the News?
A growing movement in India is advocating for use of regional languages in High Court proceedings to make justice more accessible to the common citizen.
Current Scenario: Regional Languages in High Courts
Out of India’s 25 High Courts, only 4 — Rajasthan, Madhya Pradesh, Uttar Pradesh, and Bihar — are authorized to use Hindi in their proceedings and legal documents.
BiharHC was the last High Court to receive authorization to use Hindi in 1972.
A litigant possesses the fundamental right to comprehend and engage in courtroom proceedings, under Article 19 and Article 21.
She/ He is entitled to present their case in a language they understand before the magistrate.
Additionally, the “Right to Justice” is explicitly recognized under Article 21 of the Constitution.
Despite these provisions, the use of regional languages in High Courts remains limited.
Constitutional Provisions for Regional Languages in Judiciary:
Provision
Details
Article 348(1) (a)
Language of Proceedings
English is the official language for proceedings in the Supreme Court, High Courts, and specified tribunals.
All records and ordersmust be in English.
Purpose
Ensures uniformity and consistency in legal proceedings and documentation at the highest judicial levels.
Scope
Applies to the Supreme Court, High Courts, and all authorities mentioned in Article 323A or Article 323B.
Article 348(2)
Use of Other Languages
The President may authorize the use of Hindi or any other regional language in addition to English.
Authorization is subject to conditions specified by the President.
Purpose
Allows for regional languages to be used in judicial proceedings, making the system more accessible to non-English speakers.
Scope
Can be applied in the Supreme Court, High Courts, and other authorities as mentioned in Article 323A or Article 323B.
PYQ:
[2021] Which one of the following in Indian polity is an essential feature that indicates that it is federal in character?
(a) The Independence of the judiciary is safeguarded.
(b) The Union Legislature has elected representatives from constituent units.
(c) The Union Cabinet can have elected representatives from regional parties.
(d) The Fundamental Rights are enforceable by Courts of Law.
