PYQ Relevance:
Q) “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss. (UPSC CSE 2018)
Q) Consider the following statements: (2023)
Statement I: Israel has established diplomatic relations with some Arab States.
Statement-II: The ‘Arab Peace Initiative’ mediated by Saudi Arabia was signed by Israel and Arab League.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement II is the correct explanation for Statement I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement I is correct but Statement II is incorrect
(d) Statement I is incorrect but Statement II is correct |
Mentor’s Comment: UPSC mains have always focused on India’s relations with Israel (2018), and the Arab Peace Initiative for Israel and Palestine ( 2023).
On February 4, 2025, Donald Trump proposed relocating Gaza’s 2.3 million residents to Egypt and Jordan, turning the area into a global resort under U.S. control. He hinted at a West Bank plan soon. Alongside Netanyahu, he praised Saudi Crown Prince Mb Salman, who reaffirmed that Saudi-Israel ties depend on a Palestinian state’s creation.
Today’s editorial talks about issues in the Middle East which is always in the news because of the Israel and Palestine conflict. This topic is also the favourite of UPSC in GS Paper2 mains and prelims related to International relations above mentioned in the box (PYQ Relevance). This content would help in substantiation of answers in Mains GS Paper 2.
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Let’s learn!
Why in the News?
Donald Trump recently proposed an audacious plan to relocate 2.3 million residents of the Gaza Strip to Egypt and Jordan, turning Gaza into a global resort, which has stirred geopolitical tension.
- This suggestion, along with his praise for Saudi Crown Prince Mohammed bin Salman (MbS), hints at possible changes in the West Asia region, especially concerning the Israel-Palestine issue and Saudi Arabia’s potential involvement in the Abraham Accords.
What is meant by Trump’s ‘expanding the canvas’ strategy?
- Trump’s “expanding the canvas” strategy refers to his approach of broadening the scope of a negotiation or conflict resolution by introducing bold, often extreme proposals to provoke reaction and stimulate further discussions.
- By presenting an audacious or exaggerated idea, he aims to shift the focus and push opposing parties to consider more realistic and agreeable counter-offers. The idea is that this “shock tactic” can help break a stalemate and create space for new solutions.
- In the context of the Gaza proposal, Trump’s suggestion to depopulate Gaza and turn it into a global resort serves as an example of this strategy—pushing the boundaries of negotiation to force other stakeholders to come up with a more balanced, practical solution.
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What are the implications of the proposed strategy for the Gaza conflict, and how might it reshape the geopolitical landscape in West Asia?
- Geopolitical Tensions and Pushback: This proposal would likely anger Palestinians and Arab nations, as it bypasses the core issue of Palestinian statehood and self-determination. It could worsen tensions between Israel, Palestinians, and neighboring Arab countries.
- The suggestion might also be viewed as a land grab or colonial move, particularly because it disregards the established claim of Palestinians to their land, creating significant backlash in the region and beyond.
- Impact on Palestinian Statehood: Trump’s plan shifts focus away from the two-state solution (Israel and Palestine coexisting as separate states), which many international actors, including the U.S. and the UN, support.
- The proposal undermines the push for Palestinian independence and could derail efforts to achieve a lasting peace settlement.
- Saudi Arabia and Other Arab Nations’ Involvement: Trump’s proposal could alter the balance in Arab-Israeli relations. Saudi Arabia, which is being courted for inclusion in the Abraham Accords, might find it difficult to reconcile such a plan with its own stance on Palestinian rights, especially since Saudi Crown Prince Mohammed bin Salman has linked normalization with Israel to the creation of a Palestinian state.
- It could either push Saudi Arabia and other Arab states further toward Israel or create more division, depending on how the proposal is received by the region’s leaders.
- Shifting Regional Alliances: If Saudi Arabia were to move toward accepting the proposal, it could signal a significant shift in Middle Eastern alliances, possibly leading to greater cooperation between Arab states and Israel, while sidelining Palestinian aspirations for statehood.
- On the other hand, if the plan fails, it could deepen regional divisions, particularly between Israel and the Arab world, and intensify the existing geopolitical instability in the region.
How are the ongoing conflicts and economic challenges in West Asia affecting the region’s future?
Political Impact of Conflicts: The wars and conflicts in places like Gaza, Syria, Yemen, and Lebanon have created deep divisions and instability. The region has been repolarized, leading to less cooperation and more distrust between nations.
- Issues such as the Israeli-Palestinian conflict, Iran’s nuclear ambitions, and Kurdish national aspirations remain unresolved, keeping tensions high and preventing lasting peace.
Economic Challenges: The conflicts have caused massive destruction, with the rebuilding costs in places like Gaza, Lebanon, and Syria. However, economic recovery is impossible without resolving the political issues first.
- The region’s economy is also heavily dependent on oil, which is a vulnerable resource. The global push to move away from fossil fuels and the volatility of oil prices make the region’s future uncertain.
- Countries like Saudi Arabia are aware of this and are trying to diversify their economies, but this process is slow.
What are the Abraham Accords?
The Abraham Accords refer to a series of normalization agreements between Israel and several Arab countries, aimed at establishing diplomatic, economic, and cultural relations. These agreements were brokered by the USA, and they marked a significant shift in Middle Eastern geopolitics.
Here are the four major features of the Abraham Accords:
- Normalization of Relations: Israel established diplomatic ties with Arab countries like UAE, Bahrain, Sudan, and Morocco.
- Economic Collaboration: The signatories are working together to enhance trade relations, investment opportunities, and economic partnerships. Israel’s advanced technology sector, including cybersecurity and innovation, is seen as a valuable area for collaboration with the Arab countries.
- Security Cooperation: Enhances defense and intelligence sharing, especially to address regional threats like Iran. As part of the normalization, the Accords encourage cultural exchange programs, tourism, and people-to-people connections.
- Exclusion of the Palestinian Issue: One of the most notable features—and points of controversy—of the Abraham Accords is that the agreements were made without resolving the Israeli-Palestinian conflict.
- While Palestinian leaders and many in the Arab world have opposed the Accords, claiming they betray the Palestinian cause, the agreements were framed as separate tracks that do not require the resolution of Palestinian statehood for Arab-Israeli relations to normalize.
Saudi Arabia’s Role in Shaping Stability:
- Economic Influence: Saudi Arabia, as the largest economy in the region, plays a major role in the economic stability of West Asia. It has massive reserves of wealth, particularly from its oil exports, and is using this to invest in rebuilding and diversifying the region’s economy. The Saudi Public Investment Fund, for example, is helping to fuel new development projects.
- Diplomatic Influence: Saudi Arabia’s political influence is also crucial. Under Crown Prince Mohammed bin Salman (MbS), the country has made efforts to mediate regional conflicts, like the war in Yemen and tensions with Iran. It has also sought to balance relationships with global powers, including the U.S., China, and Russia, while maintaining its leadership role in the Arab and Islamic world.
- Potential to Guide Regional Stability: Despite the conflicts around it, Saudi Arabia has largely avoided direct involvement in the region’s major wars. It can use its wealth and diplomatic leverage to fund reconstruction efforts and push for more peaceful, negotiated solutions to ongoing conflicts. It also holds significant sway over organizations like OPEC, which can affect the global oil market and, by extension, the region’s economy.
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What are the challenges the US faces in advancing the Abraham Accords, and how does it complicate vision for broader Arab-Israeli normalization?
- Palestinian Statehood and the Core Issue of the Conflict: The Palestinian issue is a major barrier to Arab-Israeli normalization, with many Arab nations, including Saudi Arabia, insisting on a Palestinian state as a prerequisite.
- Trump’s focus on individual peace deals with Arab states bypasses this issue, making it difficult for countries like Saudi Arabia to fully normalize relations with Israel.
- Opposition from Palestinian Leaders and Supporters: The Palestinian leadership has consistently rejected the Abraham Accords, seeing them as a betrayal of their cause. They argue that normalizing relations with Israel without addressing Palestinian rights and the establishment of a Palestinian state undermines their struggle for sovereignty and independence.
- This complicates the situation. As long as Palestinians feel excluded from peace processes or see no meaningful progress toward a state of their own, it will be difficult to secure broad Arab-Israeli normalization.
- Resistance from Ultra-Religious Israeli Groups: Within Israel, the growing influence of ultra-religious Jewish groups also complicates Trump’s plans. These groups often oppose any peace deal and their influence makes it harder for the Israeli government to adopt policies that could lead to broader peace agreements, even with Arab states.
- Competing Interests Among Arab States: While some Arab states like the UAE and Bahrain have embraced the Abraham Accords, others, particularly in the Gulf, have been more cautious.
- Saudi Arabia, for example, has signaled interest in normalizing relations with Israel, but only on the condition that Palestinian statehood is part of the deal.
- This puts Trump in a difficult position, as he must balance the desire to expand the Accords with the realities of Arab and Palestinian demands.
Way Forward:
- Need for Revised Diplomacy: A lasting solution must address Palestinian statehood, with a two-state solution being central to gaining support from Arab nations and Palestinian leaders. Direct negotiations, backed by international mediators, are crucial.
- Arab states, Israel, and global powers must work together through multilateral platforms, with Saudi Arabia playing a key role in fostering peace and stability in the region.
- Humanitarian Focus: Immediate efforts are needed to address the humanitarian crisis in Gaza and surrounding areas, with international aid supporting reconstruction and stability.
- Economic Diversification: The region must move beyond oil dependency by investing in other industries, with collaboration between the U.S. and Gulf states to promote long-term economic stability.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues related to Global South; Role of India;
Why in the News?
At the 18th Pravasi Bharatiya Divas (2025) and the 3rd Voice of Global South Summit (2024), PM of India emphasised India’s leadership in advocating inclusive global governance and amplifying the Global South’s voice.
How can India effectively bridge the divide between the Global North and South?
- Alternate Paradigm of Development Cooperation: India needs to reinforce its call for an alternative development cooperation model that is not solely top-down and dictated by the Global North. It should focus on equal partnerships, but avoid an “India-first” approach, being open to learning from other Global South countries to address domestic challenges.
- Human-Centric Approach: India has partnered with countries like UAE, Japan, and Saudi Arabia under agreements like the India-UAE Skill Harmonization Initiative, ensuring Indian workers are trained to meet global skill standards. This model can be expanded to Global South nations, helping them create skilled labour forces for industrial growth.
- Advocating for Inclusive Global Governance: India can push for reforms in international institutions like the UN, WTO, IMF, and World Bank to better represent Global South interests. Example: India championed the inclusion of the African Union in the G20 during its presidency in 2023, making the grouping more representative.
- Learning and Listening: India needs to listen to the Global South to be a good leader, using trilateral partnerships and increased engagement with new partners as a learning process to scale up India-led global initiatives.
What are the key priorities and concerns of the Global South that India can champion?
- Debt Relief and Fair Financial Structures: Many developing nations are burdened by unsustainable debt, often due to high-interest loans from global financial institutions and major lenders like China. Example: India has advocated for debt restructuring in international forums like the G20 and supports initiatives like the Common Framework for Debt Treatment to assist Global South nations.
- Climate Justice and Sustainable Development: The Global South demands climate finance, technology transfer, and a fair transition to clean energy without compromising growth. Example: India spearheaded the International Solar Alliance (ISA) to help developing nations access affordable solar energy and pushed for climate finance commitments at COP summits.
- Equitable Global Trade and Market Access: Many Global South nations struggle with restricted market access, unfair subsidies in developed countries, and dependence on primary commodity exports. Example: India has advocated for WTO reforms, sought duty-free access for developing countries’ exports, and promoted initiatives like ‘Make in Africa’ to reduce dependency on Western economies.
- Food and Energy Security: Rising food and fuel prices disproportionately impact Global South nations, making self-sufficiency in agriculture and energy a key concern. Example: India’s export of wheat and rice during global food crises and partnerships in biofuel development, such as the Global Biofuels Alliance (GBA), help address these concerns.
- Technology and Digital Inclusion: The digital divide limits economic opportunities in many developing nations, making access to digital infrastructure and AI-driven solutions crucial. Example: India’s Aadhaar-based digital public infrastructure and UPI payment system have been shared with countries like Sri Lanka and Mauritius, promoting financial inclusion and governance reforms.
How can India balance its relationships with both to foster unified solutions? (Way forward)
- Strategic Multi-Alignment: India follows a multi-aligned foreign policy, maintaining strong ties with the U.S. and Europe while deepening its engagement with Global South nations. Example: India’s participation in the Quad (with the U.S., Japan, and Australia) while simultaneously leading the Voice of Global South Summits showcases its balancing act.
- Leveraging Common Agendas: India identifies shared global challenges like climate change, digital transformation, and healthcare to foster collaboration between developed and developing nations. Example: India played a key role in securing climate finance commitments for developing countries during its G20 presidency in 2023, aligning Global South needs with Global North priorities.
- Soft Power and Cultural Diplomacy: India uses its democratic values, historical non-alignment stance, and rich cultural heritage to maintain trust across geopolitical divides. Example: India’s expansion of diplomatic missions in Africa, the International Solar Alliance (ISA), and Yoga Diplomacy have helped strengthen relationships across both blocs.
- Promoting Fair Investment Practices: Unlike China’s debt-driven infrastructure projects, India focuses on sustainable and transparent investment models that ensure local benefits. Example: India’s development assistance to Africa through concessional credit lines and capacity-building programs, such as the Indian Technical and Economic Cooperation (ITEC), contrasts with China’s Belt and Road Initiative (BRI).
- Institutionalizing Global Development Initiatives: India is working towards creating its own robust mechanisms for international development cooperation while collaborating with established institutions. Example: India’s push for the African Union’s inclusion in G20 and engagement in trilateral cooperation with France and the UAE for African development reflects its long-term vision of bridging the Global North-South divide.
Mains PYQ:
Q The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (UPSC IAS/2018)
Q The long-sustained image of India as a leader of the oppressed and marginalised nations has disappeared on account of its new found role in the emerging global order.’ Elaborate. (2019)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Budget related R&D;
Why in the News?
The Union Budget highlights science, technology, and innovation (STI) as important drivers of the country’s progress, supporting CSIR’s goal of making India more self-reliant and globally competitive.
How will the 2025 budget impact scientific research funding?
- Increased Funding for R&D: The Ministry of Science and Technology’s allocation sees a major boost due to a Rs 20,000 crore allocation for the R&D fund, increasing the total allocation from Rs 8,029 crore to Rs 28,508 crore.
- Support for Deeptech Startups: An additional Rs 10,000 crore will be allocated to the Small Industries Development Bank of India Fund for Startups, aimed at enhancing the “deep tech ecosystem,” particularly for startups focusing on AI, biotech, and space technology.
- Focus on Mission-Mode Projects: Funding is heavily directed towards specific mission-mode programs such as nuclear energy, AI, and the Jal Jeevan Mission, potentially at the expense of curiosity-driven research.
- CSIR’s Role in National Missions: The budget aligns CSIR’s various missions (Aroma, Floriculture, Millets, Cotton, Green Hydrogen, etc.) with national initiatives, emphasizing value-added farming, self-reliance, and sustainable development.
- Concerns Regarding Basic Science and Education: Concerns exist regarding reduced funding for institutions like IISc and IISERs, a lower percentage increase in funding for Central Universities compared to IITs, and the overall low allocation for education as a percentage of GDP.
What specific allocations are being made for science and technology in the 2025 budget?
- Ministry of Electronics and Information Technology (MeitY) Funding Increase: The budget for MeitY has been increased by 48%, totalling over ₹26,000 crores. This substantial boost is directed towards initiatives such as the IndiaAI Mission and expanded Production-Linked Incentive (PLI) schemes for semiconductors, large-scale electronics, and IT hardware.
- IndiaAI Mission: The IndiaAI Mission has received an allocation of ₹2,000 crore for FY25, marking an almost 11-fold increase from the previous year’s revised estimate of ₹173 crore. This funding aims to enhance artificial intelligence research and development across various sectors.
- Semiconductor and Electronics Manufacturing Support: Allocations for the modified scheme to establish compound semiconductors, silicon photonics, sensor fabs, and semiconductor assembly and testing facilities have risen from ₹2,500 crore to ₹3,900 crore. Additionally, the scheme for setting up semiconductor fabs has seen an increase from ₹1,200 crore to ₹2,499.96 crore.
- Research and Development Fund: A dedicated fund of ₹20,000 crore has been established to promote research, development, and innovation, particularly supporting private-sector-led initiatives. This fund underscores the government’s commitment to advancing technological progress and fostering innovation.
- Research Fellowships and Deep Tech Support: The government plans to offer 10,000 research fellowships over the next five years under the Prime Minister’s Research Fellowship scheme, focusing on advancing research in technology at premier institutions like IITs and IISc.
Are there any new initiatives for scientific research in the 2025 budget?
- Increased Focus on Health Research: There’s a greater emphasis on health research and biomedical devices, driven by concerns identified in the Economic Survey regarding the harms of ultra-processed foods. This suggests new initiatives and funding to address these health challenges through scientific research.
- Deeptech Startup Boost: The expansion of the SIDBI Fund for Startups with an additional Rs 10,000 crore specifically targets deeptech startups in AI, biotech, and space technology. This indicates a new initiative to foster innovation and entrepreneurship in these advanced technology areas.
- AI Education Push: The allocation of funds towards a Centre of Excellence in AI education signifies a new initiative to develop expertise and talent in artificial intelligence. The hope is that this center will also set benchmarks for the beneficial adoption of AI in Indian society.
- Green Hydrogen Mission: Spearheaded by CSIR, this mission supports research and development towards clean energy transition.
- Alignment of CSIR Missions: While not entirely new initiatives, the strategic alignment and emphasis on CSIR’s existing missions (like Aroma, Floriculture, Millets, Cotton, etc.) with national goals represents a renewed focus and coordinated effort that will likely drive scientific research in those specific areas.
Way forward:
- Balanced Research Funding: Ensure a more balanced allocation between mission-driven projects and fundamental research to sustain long-term scientific innovation and discovery.
- Strengthening Scientific Workforce: Expand research fellowships, enhance funding for premier institutions, and create stronger industry-academia collaborations to develop a skilled workforce in emerging technologies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: TROPEX-25
Why in the News?
The 2025 edition of TROPEX is currently underway in the Indian Ocean Region, involving all operational Indian Naval units along with significant participation from the Indian Army, Indian Air Force (IAF), and the Indian Coast Guard (ICG).
About Theatre Level Operational Exercise (TROPEX)
- TROPEX is the Indian Navy’s flagship biennial operational-level exercise, designed to test and enhance India’s maritime defense capabilities.
- It is conducted in the Indian Ocean Region with participation from the Indian Navy, Indian Army, Indian Air Force (IAF), and Indian Coast Guard (ICG).
- It was first held in April 2005.
- TROPEX-25 is being conducted over a three-month period from January to March 2025 in multiple phases:
- Harbour Phase: Focuses on strategic planning, joint training, and coordination before moving to sea operations.
- Sea Phase: Simulates real-time combat scenarios to assess the Navy’s operational readiness.
- Cyber and Electronic Warfare Operations: Integrates modern cybersecurity and electronic warfare tactics to counter digital threats.
- Live Weapon Firings: Includes real-world missile and torpedo firings to test combat effectiveness.
- Amphibious Exercise (AMPHEX): Conducts joint land-sea operations, involving amphibious landings and coastal defence drills.
Mandate and Significance of TROPEX-25
TROPEX-25 plays a pivotal role in:
- Strengthening India’s maritime dominance in the Indian Ocean Region.
- Enhancing interoperability and joint warfighting capabilities among the Navy, Army, Air Force, and Coast Guard.
- Testing real-world combat readiness in dynamic operational environments.
- Securing national maritime interests through proactive military preparedness.
- Projecting India’s naval power to safeguard maritime trade routes and counter emerging threats.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fort William
Why in the News?
In a move to eliminate colonial practices and symbols from the Indian Armed Forces, Fort William in Kolkata, the headquarters of the Eastern Army Command, has been renamed Vijay Durg.
About the Vijay Durg (Fort William)
- It was originally built by the British in 1773, Fort William was named after King William III of England.
- It is located on the eastern bank of the Hooghly River in Kolkata, West Bengal.
- It served as a key British military stronghold during colonial rule.
- The first version of Fort William was built by the English East India Company in 1696.
- It had an inner bastion used as a prison, leading to the term “Black Hole of Calcutta”.
- The Black Hole of Calcutta Incident (1756) refers to the alleged imprisonment of British prisoners by Nawab Siraj-ud-Daulah, where many reportedly suffocated to death due to overcrowding and lack of ventilation.
- After the Battle of Plassey in 1757, Robert Clive ordered its demolition, and a new fort was built, completed in 1773.
- Fort William College was established by Lord Wellesley in 1800 to train Company civil servants in Indian languages and customs, but it was closed in 1802.
- The present-day fort is octagonal in shape, made of brick and mortar, covering 70.9 acres.
- It is now owned by the Indian Army and serves as the headquarters of the Eastern Command.
Do you know?
Fort St. George (Chennai, Tamil Nadu)
- It was the first fort built by the British in 1644, marking the beginning of British rule.
- It served as the headquarters of the Madras Presidency.
- It included St. Mary’s Church, the oldest Anglican Church in India.
- Current Use: Tamil Nadu Legislative Assembly & Secretariat.
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Significance of Renaming
- The new name is inspired by Vijay Durg Fort in Maharashtra, one of the oldest and most significant naval forts under Chhatrapati Shivaji.
- Vijay Durg served as a naval base for the Marathas, highlighting India’s indigenous military history.
- The renaming aligns with India’s broader initiative to remove colonial influences and promote native military traditions.
- In September 2022, the Indian Navy replaced its British-era ensign with a new octagonal design inspired by Chhatrapati Shivaji’s royal seal.
PYQ:
[2018] With reference to educational institutions during colonial rule in India, consider the following pairs:
Institution: Founder
- Sanskrit College at Benaras: William Jones
- Calcutta Madarsa: Warren Hastings
- Fort William College: Arthur Wellesley
Which of the pairs given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 3 only |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Article 22 of the Indian Constitution
Why in the News?
The Supreme Court ruled that informing an arrested person of the grounds of arrest is a mandatory constitutional obligation, not a mere formality. Failure to comply makes the arrest illegal, violating Articles 22(1) and 21, which protect fundamental rights and personal liberty.
About Article 22 of the Indian Constitution:
- Article 22 of the Indian Constitution ensures protection to individuals against arbitrary arrest and preventive detention.
- It has two parts:
1. Article 22(1) & 22(2) – Protection in Ordinary Arrests:
- The arrested person must be informed of the grounds of arrest as soon as possible.
- The person has the right to consult and be defended by a lawyer of their choice.
- They must be produced before a magistrate within 24 hours.
2. Article 22(3) to 22(7) – Preventive Detention Provisions:
- Preventive detention without trial cannot exceed 3 months, unless approved by an Advisory Board.
- The government may deny disclosure of reasons if it affects public interest.
- Parliament can extend detention beyond 3 months in special cases.
Key Highlights of Supreme Court’s Recent Judgment:
- The Supreme Court ruled that informing an arrested person of the grounds of arrest is a fundamental right.
- Non-compliance violates both Articles 22(1) and 21 (Right to Liberty), rendering the arrest invalid.
- Grounds of arrest must be clearly conveyed in an effective manner.
- Providing the grounds in writing is the best practice (as suggested in Pankaj Bansal vs Union of India).
- As per Section 50A of CrPC, the accused’s family or nominated person must also be informed to allow legal representation.
- Magistrates must ensure compliance. If Article 22(1) is not followed, the arrest is illegal, and the accused must be released.
- Violation of Article 22(1) is a ground for Bail. Even if statutory restrictions on bail exist, courts can grant bail if fundamental rights are violated.
- If the accused claims non-compliance, the Investigating Officer must prove that Article 22(1) was followed.
Relevant Supreme Court Judgments:
- Pankaj Bansal vs Union of India (2023): SC advised that grounds of arrest should ideally be provided in writing.
- Maneka Gandhi vs Union of India (1978): “Procedure established by law” must be fair, just, and reasonable.
- DK Basu vs State of West Bengal (1997): Established guidelines to prevent custodial abuse and ensure due process.
- Ram Manohar Lohia vs State of Bihar (1965): Distinguished between law and order (individual impact) and public order (societal impact).
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PYQ:
[2021] With reference to India, consider the following statements:
- Judicial custody means an accused is in the custody of the concerned magistrate and such an accused is locked up in a police station, not in jail.
- During judicial custody, the police officer in charge of the case is not allowed to interrogate the suspect without the approval of the court.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Economic Capital Framework (ECF) of the RBI
Why in the News?
The Reserve Bank of India (RBI) has initiated an internal review of its Economic Capital Framework (ECF) to assess the contingency risk buffer (CRB) and overall capital reserves.
What is Economic Capital Framework (ECF)?
- The ECF is the risk management policy used by the RBI to determine:
- How much capital and reserves the central bank should maintain for financial stability.
- How much surplus the RBI can transfer to the government under Section 47 of the RBI Act, 1934.
- Contingency Risk Buffer (CRB): A financial safeguard for monetary, fiscal, credit, and operational risks.
- Total Economic Capital: Includes capital, reserves, risk provisions, and revaluation balances.
- Surplus Transfers:
- FY24: ₹2.11 lakh crore (highest-ever surplus).
- FY23: ₹87,416 crore | FY22: ₹30,307 crore | FY21: ₹99,122 crore.
Review of ECF and Its Significance
- The Bimal Jalan Committee’s recommendations (valid till June 2024) required a periodic reassessment.
- As of March 31, 2024, the CRB stands at 6.5%, and the RBI is evaluating whether changes are needed.
- Potential Impact
- Higher CRB → More financial stability, but lower surplus transfers to the government.
- Lower CRB → More funds available for government spending, but with potential financial risks.
- Impact on Budget: RBI’s surplus plays a major role in fiscal planning for infrastructure & welfare programs.
- The RBI must ensure financial resilience while also supporting economic development.
About Bimal Jalan Committee (2018)
- Objective: To review RBI’s reserve management and surplus transfer policy.
- Key Recommendations:
- CRB should be between 5.5% – 6.5% of the balance sheet.
- Periodic ECF review every 5 years.
- Only realized surplus (net income) should be transferred to the government.
- Revaluation reserves should not be used for operational losses.
- Impact:
- Led to higher surplus transfers and a structured capital policy.
- Strengthened transparency & financial governance in RBI’s operations.
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PYQ:
[2017] Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?
- It decides the RBI’s benchmark interest rates.
- It is a 12-member body including the Governor of RBI and is reconstituted every year.
- It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SASCI Scheme
Why in the News?
The Government of India has sanctioned 40 projects across 23 states, allocating ₹3295.76 crore under the ‘Special Assistance to States for Capital Investment (SASCI) Scheme for the Financial Year 2024-25.
What is the SASCI Scheme?
- The SASCI Scheme was launched in FY 2020-21 to support state capital expenditure and drive economic growth.
- Initially introduced as a post-COVID recovery measure, it has been expanded in FY 2023-24 with an allocation of ₹1.3 lakh crore.
- The scheme funds infrastructure projects, urban reforms, tourism development, and sustainability initiatives.
- Structural Mandate: The scheme has eight parts based on states’ share of central taxes:
- General Capital Assistance (₹1 lakh crore): Allocated based on states’ share of central taxes.
- Vehicle Scrappage & Testing Facilities: Incentives for phasing out old vehicles & setting up automated testing centers.
- Urban Planning Reforms: Encourages modern land-use planning & governance improvements.
- Urban Finance Reforms: Strengthens municipal revenue models & financial sustainability.
- Housing for Police Personnel: Funds residential units for police & their families.
- Cultural & Economic Development (Unity Malls): Promotes One District One Product (ODOP), Make in India & local entrepreneurship.
- Digital Libraries at Panchayat/Ward Levels: ₹5,000 crore for library infrastructure & digital learning access.
- Development of Iconic Tourist Centres: Global-scale branding & infrastructure for major tourism hubs.
Features & Significance:
- Boosts capital investment to stimulate demand and job creation.
- Encourages reforms in urban governance, infrastructure, and sustainability.
- Promotes responsible tourism and global branding of iconic destinations.
- Strengthens local industries through One District One Product (ODOP).
- Improves public services like policing, water supply, and rural roads.
PYQ:
[2016] Which of the following is/are included in the capital budget of the Government of India?
- Expenditure on acquisition of assets like roads, buildings, machinery, etc.
- Loans received from foreign governments
- Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3 |
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