December 2024
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J&K – The issues around the state

Panel notifies new J&K Assembly Constituencies

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Delimitation of constituencies

Mains level: Abrogation of Art. 370 and Ladakh

The Jammu and Kashmir Delimitation Commission has notified the new boundaries, names and number of Assembly constituencies in Jammu and Kashmir, paving the way for the first-ever Assembly election in the Union Territory.

What is Delimitation and why is it needed?

  • Delimitation is the act of redrawing boundaries of an Assembly or Lok Sabha seat to represent changes in population over time.
  • The Delimitation Commission is appointed by the President of India and works in collaboration with the Election Commission of India.
  • This exercise is carried out by a Delimitation Commission, whose orders have the force of law and cannot be questioned before any court.
  • The objective is to redraw boundaries (based on the data of the last Census) in a way so that the population of all seats, as far as practicable, be the same throughout the State.
  • Aside from changing the limits of a constituency, the process may result in a change in the number of seats in a state.

How is it carried out?

  • Under Article 82, the Parliament enacts a Delimitation Act after every Census.
  • Article 170 provides that States also get divided into territorial constituencies as per Delimitation Act after every Census.
  • Once the Act is in force, the Union government sets up a Delimitation Commission.
  • The first delimitation exercise was carried out by the President (with the help of the Election Commission) in 1950-51.
  • The Delimitation Commission Act was enacted in 1952.
  • Delimitation Commissions have been set up four times — 1952, 1963, 1973 and 2002 under the Acts of 1952, 1962, 1972 and 2002.
  • There was no delimitation after the 1981 and 1991 Censuses.

Delimitation in J&K

  • Assembly seats in J&K were delimited in 1963, 1973 and 1995.
  • Prior to August 5, 2019, carving out of J&K’s Assembly seats was carried out under the J&K Constitution and Jammu and Kashmir Representation of the People Act, 1957.
  • Until then, the delimitation of Lok Sabha seats in J&K was governed by the Constitution of India.
  • However, the delimitation of the state’s Assembly was governed by the J&K Constitution and J&K Representation of the People Act, 1957.
  • There was no census in the state in 1991 and hence no Delimitation Commission was set up by the state until 2001 census.

Why is it in the news again?

  • After the abrogation of J&K’s special status in 2019, the delimitation of Lok Sabha and Assembly seats in the newly-created UT would be as per the provisions of the Indian Constitution.
  • On March 6, 2020, the government set up the Delimitation Commission, headed by retired Supreme Court judge Ranjana Prakash Desai, which was tasked with winding up delimitation in J&K in a year.
  • As per the J&K Reorganization Bill, the number of Assembly seats in J&K would increase from 107 to 114, which is expected to benefit the Jammu region.

Next step: Assembly polls

  • With the final order now notified, all eyes will be on the EC and the Union government regarding the timing of Assembly elections.
  • Though mainstream parties in the Valley have criticised the report, it is likely that this will make space for political engagement in the UT.

What changes have been made?

  • ASSEMBLY: The Commission has increased seven Assembly seats — six in Jammu (now 43 seats) and one in Kashmir (now 47). It has also made massive changes in the structure of the existing Assembly seats.
  • LOK SABHA: The Commission has redrawn the boundaries of Anantnag and Jammu seats. Jammu’s Pir Panjal region, comprising Poonch and Rajouri districts and formerly part of Jammu parliamentary seat, has now been added to Anantnag seat in Kashmir. Also, a Shia-dominated region of Srinagar parliamentary constituency has been transferred to Baramulla constituency, also in the Valley.
  • KASHMIRI PANDITS: The Commission has recommended provision of at least two members from the community of Kashmiri Migrants (Kashmiri Hindus) in the Legislative Assembly.
  • Seats for POK migrants: It has also recommended that Centre should consider giving representation in the J&K Legislative Assembly to the displaced persons from Pakistan-occupied Kashmir, who migrated to Jammu after Partition.

Why has the exercise been controversial?

  • Jammu vs. Kashmir: Concerns had been expressed over how the delimitation process may end up favoring the Jammu region over Kashmir in terms of the seats.
  • Under-representation of Ladakh: Arguments have been made on how Ladakh has been underrepresented, with demands for statehood/sixth schedule.
  • Non-proportionate reservations: It is argued that seats for STs should’ve been divided in both Jammu province & Kashmir province, as the ST population is almost equal.
  • Frozen till 2026: Constituency boundaries are being redrawn only in J&K when delimitation for the rest of the country has been frozen until 2026. The last delimitation exercise in J&K was carried out in 1995.
  • Issue over reorganization: Again, political parties in Jammu and Kashmir have been pointing out that the Delimitation Commission is mandated by the Reorganisation Act, which is sub judice.

 

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Cyber Security – CERTs, Policy, etc

How India’s new VPN rules change the Status Quo?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: VPN, Cert-In

Mains level: Read the attached story

Recently, the Indian Computer Emergency Response Team (Cert-In) issued new directives that require Virtual Private Network (VPN) providers to store user data for five years.

What is VPN?

  • VPN describes the opportunity to establish a protected network connection when using public networks.
  • It encrypts internet traffic and disguise a user’s online identity.
  • This makes it more difficult for third parties to track your activities online and steal data.
  • The encryption takes place in real time.

How does a VPN work?

  • A VPN hides your IP address by letting the network redirect it through a specially configured remote server run by a VPN host.
  • This means that if you surf online with a VPN, the VPN server becomes the source of your data.
  • This means your Internet Service Provider (ISP) and other third parties cannot see which websites you visit or what data you send and receive online.
  • A VPN works like a filter that turns all your data into “gibberish”. Even if someone were to get their hands on your data, it would be useless.

Why do people use VPN?

  • Secure encryption: A VPN connection disguises your data traffic online and protects it from external access. Unencrypted data can be viewed by anyone who has network access and wants to see it. With a VPN, hackers and cyber criminals can’t decipher this data.
  • Disguising whereabouts: VPN servers essentially act as your proxies on the internet. Because the demographic location data comes from a server in another country, your actual location cannot be determined.
  • Data privacy is held: Most VPN services do not store logs of your activities. Some providers, on the other hand, record your behaviour, but do not pass this information on to third parties. This means that any potential record of your user behaviour remains permanently hidden.
  • Access to regional content: Regional web content is not always accessible from everywhere. Services and websites often contain content that can only be accessed from certain parts of the world.
  • Secure data transfer: If you work remotely, you may need to access important files on your company’s network. For security reasons, this kind of information requires a secure connection. To gain access to the network, a VPN connection is often required.

What does the new CERT-IN directive say?

  • VPN providers will need to store validated customer names, their physical addresses, email ids, phone numbers, and the reason they are using the service, along with the dates they use it and their “ownership pattern”.
  • In addition, Cert is also asking VPN providers to keep a record of the IP and email addresses that the customer uses to register the service, along with the timestamp of registration.
  • Most importantly, however, VPN providers will have to store all IP addresses issued to a customer and a list of IP addresses that its customers generally use.

What does this mean for VPN providers?

  • VPN services are in violation of Cert’s rules by simply operating in India.
  • That said, it is worth noting that ‘no logs’ does not mean zero logs.
  • VPN services still need to maintain some logs to run their service efficiently.

Does this mean VPNs will become useless?

  • The Indian government has not banned VPNs yet, so they can still be used to access content that is blocked in an area, which is the most common usage of these services.
  • However, journalists, activists, and others who use such services to hide their internet footprint will have to think twice about them.

Why such move?

  • Crime control: For law enforcement agencies, a move like this will make it easier to track criminals who use VPNs to hide their internet footprint.
  • Curbing dark-net activities: Users these days are shifting towards the dark and deep web, which are much tougher to police than VPN services.

Back2Basics: Indian Computer Emergency Response Team (CERT-IN)

  • CERT-IN is an office within the Ministry of Electronics and Information Technology.
  • It is the nodal agency to deal with cyber security threats like hacking and phishing. It strengthens the security-related defense of the Indian Internet domain.
  • It was formed in 2004 by the Government of India under the Information Technology Act, 2000 Section (70B) under the Ministry of Communications and Information Technology.

 

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Monetary Policy Committee Notifications

Inflation control needs another model

Note4Students

From UPSC perspective, the following things are important :

Prelims level: CPI and WPI

Mains level: Paper 3- Need for the review of inflation targeting model

Context

At the conclusion of the April meeting, the Monetary Policy Committee had already warned that the focus will henceforth be on inflation. Yesterday it raised the repo rate somewhat sooner than was expected by the market.

 Discourse on inflation engaged in by the western central banks

  • Inflation reflects an excess of output over its ‘natural’ level.
  • Inflation targeting refers to the policy of controlling inflation by raising the interest rate over which the central bank has control, i.e. the rate at which it lends to commercial banks, the ‘repo rate’.
  • This, it is argued, will induce firms to stay their investment plans and reduce inventories, lowering production.
  • As economy-wide output declines, becoming equal to the natural level of output, inflation will cease.
  • This story does not just legitimise a policy of output contraction for inflation but sees it as optimal.
  • The natural level of output itself is the productive counterpart of the natural level of employment, the level that obtains in a freely functioning labour market.
  • So, at the natural level of output, the economy is deemed to be at full employment.
  • Salient in the context is the fact that the natural level of output is unobservable.
  • Hence inflation as a reflection of an “overheating” economy is something that must be taken on trust.

Inflation control in India

  • Not surprisingly for a theory based on an unobservable variable, the proposition that inflation is due to an overheating economy fares poorly when put to a statistical test for India. 
  • There is not a single demonstration of the empirical validity of the model of inflation presented in the RBI report of 2014, which recommended a move to inflation targeting.
  • On the other hand inflation in India can be explained in terms of the movement of the prices of agricultural goods and, to a lesser extent, imported oil.
  • How effective is monetary policy in controlling inflation: The implication of this finding is damaging for the claim that monetary policy can control inflation, for neither the price of agricultural goods nor that of imported oil is under the central bank’s control.
  • The only route by which monetary policy can, in principle, control inflation is by curbing the growth of non-agricultural output, which would in turn lower the growth of demand for agricultural goods.
  • As the demand for agricultural goods slows, so will inflation, but this comes at the cost of output and employment.
  • At least, this is the theory.
  • Whether this takes place in practice depends upon the extent to which changes in the repo rate are transmitted to commercial bank lending rates.

Way forward

  • Focus on supply of agricultural goods: The implication for the policymaker that inflation is driven by agricultural goods prices, as is the case in India presently, is that the focus should be on increasing the supply of these goods.
  • Growing per capita income in India has shifted the average consumption basket towards foods rich in minerals, such as fruits and vegetables, and protein, such as milk and meat.
  • But the expansion of the supply of these foods has been lower than the growth in demand for them.
  • So a concerted drive to increase the supply of food other than rice and wheat holds the key.
  • Costly food threatens the health of the population, as people economise on their food intake, and holds back the economy, as only a small part of a household’s budget can be spent on non-agricultural goods.

Conclusion

Monetary policy manoeuvres, typified by the RBI’s raising of the repo rate is not an efficient solution for agricultural price-driven inflation. Any lasting inflation control would require placing agricultural production on a steady footing, with continuously rising productivity.

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RBI Notifications

With repo rate hike, RBI has done what’s necessary

Note4Students

From UPSC perspective, the following things are important :

Prelims level: CRR

Mains level: Paper 3- Inflation targeting by the RBI

Context

The RBI has decided to take the bull by the horns. It has raised the repo rate by 40 basis points and the cash reserve ratio (CRR) by 50 basis points to fight inflation.

Why major central banks across the world are hiking rates?

  • Across the world, major central banks have of late gone on a rate hike spree, waking up to the realisation of inflationary pressures not being transitory in nature.
  • Record high inflation in the US: The US Fed has been on the offensive battling a 40-year high surge in prices.
  • It has tapered its bond purchase programme drastically while suggesting in no uncertain terms the pace of rate hikes needed to combat inflation.
  • The European Union has been slow to respond but voices are growing to correct the path at the earliest.
  • Banks like the Central Bank of Brazil or the Russian Central Bank have increased the interest rate to double digits.
  • Emerging economies have been doubly hit — the days of easy liquidity are well behind them even as their economic resources remain constrained to support an uneven proportion of population hit by pandemic.
  • Including the RBI’s decision today to push the benchmark rate to align with the current market realities, 21 countries have increased interest rates so far.

Analysing the RBI’s decision to hike interest rates

  • To this extent, the decision by the RBI to frontload the rate hikes ahead of the Fed decision is again an attempt to stem capital outflows.
  • Accommodative policy stance; The most interesting aspect of the rate hike today is the continuation of the accommodative policy stance.
  • The CRR hike may be just an attempt to build up a war chest on the liquidity front.
  • Liquidity inflows to the financial system could be either policy induced by the central bank for example changes in reserves, open market operations etc or non-policy induced such as foreign exchange reserves, government cash balances, and currency in circulation.
  • Given that non-policy induced liquidity inflows have been recently impacted (outflows of portfolio capital) and given the huge size of the government borrowing programme, the RBI also needs to support the market through some means.
  • Impounding bank reserves through the CRR (Rs 87,000 crore) could give some space to the central bank to conduct open market purchases of bonds from banks and thus inject concomitant liquidity some time in the future if the need so arises.
  •  The CRR rate hike is thus an important tool to possibly manage G-sec yields.

Inflation dynamics in India

  • The inflationary pressures can be attributed mainly to adverse cost-push factors, coming from supply-side shocks in food and fuel prices.
  • The RBI statement thus cites food inflation as a major source of discomfort.
  • Additionally, nominal rural wages for both agricultural and non-agricultural labourers picked up during the second half 2021-22.
  • However, such wage growth has remained soft.
  • Measures to ameliorate supply-side cost pressures would be thus critical at this juncture, especially in terms of a calibrated reduction of taxes on petrol and diesel.
  • On the policy side, however, it would mean that even after rate hikes, inflation may continue to remain high for some time.
  • The MCLR (Marginal Cost of Funds based Lending Rate) linked loans have a share of around 53 per cent in the overall loan kitty.
  • With the rise in CRR and expected future hikes in the benchmark rates, there would be an increase in MCLR due to a negative carry.

Conclusion

The RBI has acted prudently in responding to market forces that could impact India’s growth prospects if inflationary concerns were not addressed now. At the same time, by pledging to remain accommodative to spur, and reinvigorate growth, it has reaffirmed its commitment to being a trusted partner in the growth of the country.

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Death Penalty Abolition Debate

President has no role to play in Perarivalan’s plea: SC

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Pardoning Powers

Mains level: Pardoning Powers in India

The Supreme Court has disagreed with the Central government’s suggestion that the court should wait till the President took a call on former PM’s assassination case convict A.G. Perarivalan’s mercy plea referred to him by the Tamil Nadu Governor for a decision.

Why in news now?

  • The Bench of the Supreme Court said that the Centre had missed the obvious question posed by the court by a mile.
  • The pertinent question was whether the Governor had, in the first place, the authority to refer the mercy plea to the President.
  • Under Article 161 of the Constitution, the Governor was bound by the aid and advice given by the TN Council of Ministers in September 2018.
  • The Governor prima facie had no authority to transfer the mercy plea to the President.

What does Pardon mean?

  • A pardon is a government/executive decision to allow a person to be absolved of guilt for an alleged crime or other legal offense as if the act never occurred.

Why need a Pardon?

  • Pardons can be granted when individuals are deemed to have demonstrated that they have “paid their debt to society”, or are otherwise considered to be deserving of them.
  • Pardons are sometimes offered to persons who were either wrongfully convicted or who claim that they were wrongfully convicted.
  • Pardons are sometimes seen as a mechanism for combating corruption, allowing a particular authority to circumvent a flawed judicial process to free someone that is seen as wrongly convicted.

What does Article 161 say?

  • Article 161 of the Constitution provides the Governor with the power to remit or commute the sentence of any prisoner.
  • The Governor’s decision will be subject to judicial review by the constitutional courts.

Supreme court’s observations

  • The Constitution Bench in 2015, in a majority decision, had held that the States cannot unilaterally remit the sentences of life convicts in cases investigated by a Central agency under a Central law.
  • The assassination case was probed by the CBI.
  • In compliance with the 2015 verdict, the Tamil Nadu government wrote to the Centre in 2016, proposing the grant of remission to the convicts. The State wanted the Centre to concur.
  • After a wait of over two years, the Centre rejected the State’s proposal, saying this was an unparalleled act in the annals of crimes committed in this country.

Arguments in Perarivalan’s petition seeking pardon

  • Perarivalan had been pleading for release citing that he was 19 when he was arrested.
  • He was the only male child of his parents, there were no records of criminal antecedents, and that he had excellent conduct in his entire prison life.
  • His petition also cited UG and PG degrees, and that he was the university topper, Gold medalist in diploma in DTP, and that he completed more than eight diploma and certificate courses during his prison term.
  • His probation officer gave a report about lapses in recording his confession statement that handed out maximum punishment in his case.

Basis of his innocence

  • Perarivalan cannot be called innocent before the law as he continues to be a convicted prisoner serving imprisonment.
  • He was accused of having bought two battery cells for the LTTE man who masterminded the conspiracy.
  • He was sentenced to death based on this crucial confession statement.

Significance of the convicts’ release

  • The release of seven convicts is a demand raised by not only the ruling party of TN but the main opposition too.
  • All TN politicians voiced that the judiciary should be able to reform and let them live as good citizens to uphold the high values of reformatory justice and restitution.

Back2Basics: Pardoning Powers in India

  • Under the Constitution of India (Article 72), the President of India can grant a pardon or reduce the sentence of a convicted person, particularly in cases involving capital punishment.
  • A similar and parallel power vests in the governors of each state under Article 161.

(1) President

  • Article 72 says that the president shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence.
  • The pardoning powers of the Indian President are elucidated in Art 72 of the Indian Constitution. There are five different types of pardoning which are mandated by law.
  1. Pardon: means completely absolving the person of the crime and letting him go free. The pardoned criminal will be like a normal citizen.
  2. Commutation: means changing the type of punishment given to the guilty into a less harsh one, for example, a death penalty commuted to a life sentence.
  3. Reprieve: means a delay allowed in the execution of a sentence, usually a death sentence, for a guilty person to allow him some time to apply for a Presidential Pardon or some other legal remedy to prove his innocence or successful rehabilitation.
  4. Respite: means reducing the quantum or degree of the punishment to a criminal in view of some special circumstances, like pregnancy, mental condition etc.
  5. Remission: means changing the quantum of the punishment without changing its nature, for example reducing twenty-year rigorous imprisonment to ten years.

(2) Governor

  • As per Article 161, the Governor of a State has the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence against any law.
  • It must be relating to a matter to which the executive power of the state extends.
  • Please note that President can grant pardon to a person awarded death sentence. But a governor of a state does not enjoy this power.

 

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Medical Education Governance in India

Tamil Nadu NEET Exemption Bill sent to Home Ministry

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NEET Quota row

Mains level: Read the attached story

The CM informed the Tamil Nadu Legislative Assembly that Governor has forwarded the NEET exemption Bill to the Union Home Ministry to be sent to the President of India for his assent.

What is the TN Bill about?

  • The Bill exempts medical aspirants in Tamil Nadu from taking NEET examination for admission to UG degree courses in Indian medicine, dentistry and homeopathy.
  • Instead, it seeks to provide admission to such courses on the basis of marks obtained in the qualifying examination, through “Normalization methods”.
  • The aim of the Bill is to ensure “social justice, uphold equality and equal opportunity, protect all vulnerable student communities from being discriminated”.
  • It seeks to bring vulnerable student communities to the “mainstream of medical and dental education and in turn ensure a robust public health care across the state, particularly the rural areas”.

Why TN is against NEET?

  • Non-representative: TN opposes because NEET undermined the diverse societal representation in MBBS and higher medical studies.
  • Disfavors the poor: It has favored mainly the affordable and affluent sections of the society and thwarting the dreams of underprivileged social groups.
  • Exams for the elite: It considers NEET not a fair or equitable method of admission since it favored the rich and elite sections of society.
  • Healthcare concerns: If continued, the rural and urban poor may not be able to pursue medical courses.

Can any state legislate against NEET?

  • Admissions to medical courses are traceable to entry 25 of Concurrent List, Schedule VII of the Constitution.
  • Therefore, the State can also enact a law regarding admission and amend any Central law on admission procedures.

Why is it going for President’s assent?

  • The question is not whether the State government can amend a law falling under the Concurrent List.
  • The question is whether the State government can exempt Section 10D of the IMC Act, which is a parliamentary law that falls under the Central List (Entry 66).
  • Moreover, the Supreme Court has also upheld NEET as a requirement.
  • Mere statistics highlighting that a majority of the stakeholders do not want NEET in Tamil Nadu is not an answer for exempting the examination.

Again, it is State and Centre are at crossroads

  • Normally, a Bill requires assent from the Governor to become a law. Stalin’s contention is that this Bill deals with education, which is a Concurrent List subject.
  • Admissions to medical courses fall under Entry 25 of List III, Schedule VII of the Constitution, and therefore the state is competent to regulate the same.
  • Yet, as far as matters relating to the determination of standards for higher education are concerned, the central government has the power to amend a clause or repeal an Act.
  • So, just the passing of the Bill doesn’t enable the students to get exempted from writing NEET.
  • Already, Union Higher Education Secretary has held that if any State wants to opt out of the exam, it has to seek permission from the Supreme Court.

Options for Tamil Nadu

  • Data is necessary only when there is power to legislate on the subject concerned.
  • Since the Bill, which will become an Act only after the President’s nod, will come into effect only from the next academic year, the battle for and against the NEET requirement will continue in courts.
  • Hopefully, the courts will determine the legality and have a definite solution to the question of medical admissions within the next year.
  • Till such time, students who wrote NEET will fill the seats under the State quota.

 

Also read:

Bill assent, a delay and the Governor’s options

 

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Goods and Services Tax (GST)

GST Compensation dues

Note4Students

From UPSC perspective, the following things are important :

Prelims level: GST Compensation

Mains level: Read the attached story

The West Bengal CM has said that slashing State levies on petrol and diesel will be possible only if the Centre clears its outstanding dues of over ₹97,000 crore, which includes compensation for implementing the Goods and Services Tax (GST).

What is GST?

  • GST launched in India on 1 July 2017 is a comprehensive indirect tax for the entire country.
  • It is charged at the time of supply and depends on the destination of consumption.
  • For instance, if a good is manufactured in state A but consumed in state B, then the revenue generated through GST collection is credited to the state of consumption (state B) and not to the state of production (state A).
  • GST, being a consumption-based tax, resulted in loss of revenue for manufacturing-heavy states.

Compensation under GST regime

  • Due to the consumption-based nature of GST, manufacturing states like Gujarat, Haryana, Karnataka, Maharashtra and Tamil Nadu feared a revenue loss.
  • Thus, GST Compensation Cess or GST Cess was introduced by the government to compensate for the possible revenue losses suffered by such manufacturing states.
  • However, under existing rules, this compensation cess will be levied only for the first 5 years of the GST regime – from July 1st, 2017 to July 1st, 2022.
  • Compensation cess is levied on five products considered to be ‘sin’ or luxury as mentioned in the GST (Compensation to States) Act, 2017 and includes items such as- Pan Masala, Tobacco, and Automobiles etc.

Distributing GST compensation

  • The compensation cess payable to states is calculated based on the methodology specified in the GST (Compensation to States) Act, 2017.
  • The compensation fund so collected is released to the states every 2 months.
  • Any unused money from the compensation fund at the end of the transition period shall be distributed between the states and the centre as per any applicable formula.

Significance of GST compensation

  • States no longer possess taxation rights after most taxes, barring those on petroleum, alcohol, and stamp duty were subsumed under GST.
  • GST accounts for almost 42% of states’ own tax revenues, and tax revenues account for around 60% of states’ total revenues.
  • Finances of over a dozen states are under severe strain, resulting in delays in salary payments and sharp cuts in capital expenditure outlay amid the pandemic-induced lockdowns and the need to spend on healthcare.

What is the status of the outstanding GST compensation due to the States?

  • The Finance Ministry said that outstanding GST compensation dues to States for 2021-22 stood at ₹78,704 crore.
  • This means that dues have been remitted to States for the eight-month period of April 2021 till November 2021.
  • Normally, compensation for 10 months from April-January of any financial year is released during that year and the compensation for February-March is released only in the next financial year.
  • The pending amount will also be released as and when the amount from cess accrues in the compensation fund.

Also read:

[Burning Issue] GST Compensation

 

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Monetary Policy Committee Notifications

RBI surprises with 40 bps rate increase in Repo Rate

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Repo Rate

Mains level: Inflation targetting by MPC

The Reserve Bank of India (RBI), in a sudden move, raised the repo rate by 40 basis points (bps) to 4.4% citing inflation that was globally rising alarmingly and spreading fast.

Why in news?

  • The repo rate increase was the first since August 2018.
  • The MPC retained its ‘accommodative’ policy stance even as it focuses on withdrawal of accommodation to keep inflation within the target range while supporting growth.
  • Due to Ukraine War, persistent and spreading inflationary pressures are becoming more acute with every passing day.

Hues over the REPO spike

  • The move — to have such a meeting and to raise the interest rates — is, at two different levels, both surprising and obvious.
  • It is surprising because the RBI’s MPC meets once every two months — and the meeting this week was not scheduled.

What is Repo Rate?

  • Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.
  • It is used by monetary authorities to control inflation.
  • In the event of inflation, central banks increase repo rate as this acts as a disincentive for banks to borrow from the central bank.
  • This ultimately reduces the money supply in the economy and thus helps in arresting inflation.

How does the repo dynamics work?

  • When there is a shortage of funds, commercial banks borrow money from the central bank which is repaid according to the repo rate applicable.
  • The central bank provides these short terms loans against securities such as treasury bills or government bonds.
  • This monetary policy is used by the central bank to control inflation or increase the liquidity of banks.
  • The government increases the repo rate when they need to control prices and restrict borrowings.
  • An increase in repo rate means commercial banks have to pay more interest for the money lent to them and therefore, a change in repo rate eventually affects public borrowings such as home loan, EMIs, etc.
  • From interest charged by commercial banks on loans to the returns from deposits, various financial and investment instruments are indirectly dependent on the repo rate.

What is accommodative stance of policy?

  • Accommodative monetary policy is when central banks expand the money supply to boost the economy. Monetary policies that are considered accommodative include lowering the Federal funds rate.
  • These measures are meant to make money less expensive to borrow and encourage more spending.

What triggered the RBI to take sudden decision?

  • Inflation has been rising for over two years: By law, the RBI is supposed to target retail inflation at 4%. Inflation constantly above 4% since last year.
  • Inflation has not been “transitory”: The reasons for high inflation have tended to change over the months due to wide range of reasons like war, crude oil prices rise, taxes on fuels etc.
  • Spike in crude oil prices is not new: The RBI has pointed to high crude oil prices in the wake of the Ukraine war, as one of the key reasons for high inflation in India.
  • High core inflation: The core inflation which is essentially the inflation rate stripped of the effect of fuel and food prices has been rising up. This is more worrisome for RBI since it cannot be altered overnight.
  • Monetary policy has lags. RBI waited too long: If the RBI wanted to contain inflation in May, it should have acted in February or at least in April. Raising rates right now may not bring down the inflation rate immediately.

Try this PYQ from CSP 2020:

Q.If the RBI decides to adopt an expansionist monetary policy, which of the following it would NOT do?

  1. Cut and optimize the statutory liquidity ratio
  2. Increase the Marginal Standing Facility Rate
  3. Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

 

Post your answers here:

 


 

 

Back2Basics: Monetary Policy Committee (MPC)

  • The Monetary Policy Committee (MPC) is a committee of the RBI, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level.
  • The RBI Act, 1934 was amended by Finance Act (India), 2016 to constitute MPC to bring more transparency and accountability in fixing India’s Monetary Policy.
  • The policy is published after every meeting with each member explaining his opinions.
  • The committee is answerable to the Government of India if the inflation exceeds the range prescribed for three consecutive months.
  • Suggestions for setting up a MPC is not new and goes back to 2002 when YV Reddy committee proposed to establish an MPC, then Tarapore committee in 2006, Percy Mistry committee in 2007, Raghuram Rajan committee in 2009 and then Urjit Patel Committee in 2013.

Composition and Working

  • The committee comprises six members – three officials of the RBI and three external members nominated by the Government of India.
  • The meetings of the Monetary Policy Committee are held at least 4 times a year and it publishes its decisions after each such meeting.
  • The Governor of RBI is the chairperson ex officio of the committee.
  • Decisions are taken by a majority with the Governor having the casting vote in case of a tie.
  • They need to observe a “silent period” seven days before and after the rate decision for “utmost confidentiality”.

 

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Coronavirus – Health and Governance Issues

Civil Registration System Report, 2020

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Civil Registration System (CRS)

Mains level: Total covid related fatality in India

The Civil Registration System (CRS) report 2020 was released at least a month before its schedule.

What is Civil Registration System (CRS)?

  • The CRS collates data on all births and deaths registered with local authorities across India.
  • The CRS report is released by the Registrar-General of India.
  • It releases its report around 18 months after a year ends.

Significance of the 2020 Report

  • The 2020 report was released at least a month before schedule.
  • Such data can be of significance during a pandemic as possible covid-19 deaths may not have been categorized as such in official records.
  • The CRS can help us reach an estimate by using the “excess deaths” approach.
  • It is the difference between the total number of deaths registered in a pandemic year and the number of deaths that normally take place in a year.

Why was the data released ahead of schedule?

  • India and the WHO are locked in a tussle over the latter’s excess death estimates that would give a sense of pandemic-linked fatalities globally in 2020-21.
  • India has reportedly stalled WHO’s efforts to release the data, claiming flawed methodology.
  • WHO is set to release its estimates today, a possible reason that India released CRS data early.

Why is India contesting the WHO approach?

  • One key objection by India is that WHO has classified it as a Tier 2 country and hence used a different modelling process to estimate excess deaths from that used for Tier 1 countries.
  • WHO says all countries that made available their full all-cause mortality data for the pandemic period were classified as Tier 1.
  • India is in Tier 2 because it didn’t share official data with WHO.
  • Hence, alternative data and modelling methods had to be adopted, adjusting for factors such as income levels, covid-19 reporting rates, and test positivity rates.

What does the 2020 data show?

(a) Covid deaths

  • The CRS report for 2020 has recorded deaths of 8.12 million Indians, 6.2% more than 2019.
  • Normally, an unusual increase in deaths would be linked to the pandemic. However, in India, not all deaths are registered.
  • Thus, a rise could simply be because of more families getting deaths registered.
  • The CRS for 2021, which saw more Covid deaths, may not be out until next year.

(b) Improvements in sex ratio

  • Highest Sex Ratio at Birth (SRB) based on registered events has been reported by Ladakh (1,104) followed by Arunachal Pradesh (1,011), A&N Islands (984), Tripura (974), and Kerala (969).
  • The lowest sex ratio was reported by Manipur (880), followed by Dadra and Nagar Haveli and Daman and Diu (898), Gujarat (909), Haryana (916) and Madhya Pradesh (921).

 

 

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Foreign Policy Watch: India – Germany

India-Germany relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Green Hydrogen Task Force

Mains level: Paper 2- India-Germany relations

Context

Prime Minister Narendra Modi’s visit to Berlin for the sixth Indo-German Inter-Governmental Consultations (IGC) is significant for its timing and substantial results.

Strategic and economic importance of India-German ties

  • The timing of the IGC, which Germany chose not to delay, showed outreach to India and the Indo-Pacific.
  • Impact of pandemic on economy: The pandemic hit German economy and sanctions on Russia will further dent its prospects.
  • The country requires new markets for trade and investment.
  • India is an important partner in this regard due to its sustained economic growth and market size.
  • Ukraine crisis: The Ukraine crisis created an urgency to engage with India as part of Germany’s fledgling Indo-Pacific policy.

Opportunities for India

  • As Germany does the reassessment of China’s role in world affairs it creates an opportunity for India.
  • The Bundestag will discuss the situation of Uyghurs in China’s Xinjiang on May 7.
  • Any departures from China will bring business engagement to India.
  • Germany and India do not have a traditional strategic partnership.
  • It is a green partnership based on trade, investment, technology, functional collaboration, skill development, and sustainability.
  • There are several initiatives like the Indo-German energy forum, environmental forum, partnership on urban mobility, skill development and science and technology.
  • The biggest gain from the IGC has been the Joint Declaration of Intent (JDI) establishing the Green and Sustainable Development Partnership.
  • This will raise the quality and quantum of the existing partnership between the two countries.
  • Germany is reaching out with new and additional financing of €10 billion to fund green projects in India under public, private and PPP models.
  • To support this, a ministerial segment is being introduced under the IGC.
  • The IGC is the only such format that India has with any country.
  • Another significant development is the JDI on Triangular Development Cooperation for projects in third countries.
  • This will provide avenues to work together in the Indo-Pacific, Africa and beyond.
  • The Indo-German Education Partnership, which the German Bundestag passed in 2016 as a New Passage to India, has borne fruit — from about 4,000 students in 2015, there are nearly 29,000 Indian students in Germany.
  • The Indo-German Science and Technology Centre has made valuable contributions.
  • Now, under the energy partnership, the Green Hydrogen Task Force will develop a Green Hydrogen Roadmap.
  • This will attempt to take R&D to the level of commercialisation.
  • The JDI on migration and mobility is an important step taken during this IGC.

Conclusion

A new period is reflecting new priorities in view of crises like the pandemic, the economic downturn and now, Ukraine. The German response to India as evidenced through the IGC has been promising. Both sides may justifiably call it a defining moment in the Indo-German partnership.

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Bill assent, a delay and the Governor’s options

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Article 200

Mains level: Paper 2- Powers of the Governor

Context

The State of Tamil Nadu has been witnessing a confrontation between the elected government and the State Governor on the question of giving assent to the National Eligibility cum Entrance Test (NEET) Bill passed by the State Assembly.

Position of Governor in Constitutional setup in India:

  • Appointee of the President: The Governor is an appointee of the President, which means the Union government.
  • Although Article 154(1) of the Constitution vests in the Governor the executive power of the State, he is required to exercise that power in accordance with the Constitution.
  • In other words, the Governor can act only on the aid and advice of the Council of Ministers.
  • It is a settled constitutional position that the Governor is only a constitutional head and the executive power of the State is exercised by the Council of Ministers.
  • In Shamsher Singh vs State of Punjab (1974), the Supreme Court had clearly affirmed this position.
  • Dr. Ambedkar explained the position of the Governor in the Constituent Assembly as follows: “The Governor under the Constitution has no functions which he can discharge by himself: no functions at all.”
  • The Sarkaria Commission restates this position in its report, “it is a well-recognized principle that so long as the council of ministers enjoys [the] confidence of the Assembly its advice in these matters, unless patently unconstitutional, must be deemed as binding on the governor”.
  • In 2016, a five-judge constitution Bench of the Supreme Court (the Nabam Rebia case) reaffirmed the above position on the governors’ powers in our constitutional setup.

What exactly are the options before the Governor in the matter of giving assent to a Bill passed by the Assembly?

  • Assent of the Governor or the President is necessary for a Bill to become law.
  • Four options: Article 200 of the Constitution provides for four alternative courses of action for a Governor when a Bill after being passed by the legislature is presented to him for his assent.
  • 1] The Governor can give his assent straightaway.
  • 2] The Governor can withhold his assent.
  • 3] He may also reserve it for the consideration of the President, in which case the assent is given or withheld by the President.
  • 4] The fourth option is to return the Bill to the legislature with the request that it may reconsider the Bill or any particular provision of the Bill.
  • When such a message is received from the Governor, the legislature is required to reconsider his recommendations quickly.
  • However, if the legislature again passes the Bill without accepting any of the amendments suggested by the Governor he is constitutionally bound to give assent to the Bill.

Issue of the NEET Bill

  • The Governor of Tamil Nadu returned the NEET Bill to the Assembly for reconsideration of the Bill.
  • Accordingly, the Assembly held a special session in the first week of February and passed it again and presented it to the Governor for his assent.
  • He has not assented to the Bill so far.
  • While it is true that Article 200 does not lay down any time frame for the Governor to take action under this Article, it is imperative on the part of the Governor to exercise one of the options contained therein.
  • The option mentioned in Article 200 is meant to be exercised by the Governor without delay.
  • Non-action is not an option: Although Article 200 does not say by what time the Governor should take the next step, it clearly and unambiguously states the options for him to exercise.
  • It is obvious that if the Governor does not exercise any of those options he will not be acting in conformity with the Constitution because non-action is not an option contained in Article 200.
  • In fact, the words used in Article 200 “… it shall be presented to the governor and the governor shall declare….” indicates that the Constitution requires the Governor to act without delay upon the presentation of the Bill.
  • In view of the mandatory provision in the proviso to Article 200, it is clear that the Constitution does not permit the Governor to sit on a Bill after the Assembly re-submits it to him after reconsideration.

Takeaways

  • Giving assent to a Bill passed by the legislature is a part of the legislative process and not of the executive power.
  •  Withholding of assent, though an option, is not normally exercised by Governors because it will be an extremely unpopular step.
  • Besides, withholding assent to a Bill by the Governor, an appointee of the President, neutralises the entire legislative exercise by an elected legislature enjoying the support of the people.
  • This option is undemocratic and essentially against federalism. 
  • Practices in UK and Australia: In the United Kingdom it is unconstitutional for the monarch to refuse to assent to a Bill passed by Parliament.
  • Similarly, in Australia, refusal of assent to a Bill by the crown is considered repugnant to the federal system.

Conclusion

In our constitutional system, the Governor or the President is not personally responsible for their acts. But when a Governor does not take any decision on a Bill which is put up for his assent, he is not acting in exercise and performance of the duties cast upon him.

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Foreign Policy Watch: India – EU

How a trade deal with EU could shape up?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: India-EU Trade Relations

After signing comprehensive economic and trade agreements with the United Arab Emirates (UAE) and Australia, India has stepped up efforts to negotiate a free trade agreement (FTA) with the European Union (EU).

What is a Free Trade Agreement (FTA)?

  • A FTA is a pact between two or more nations to reduce barriers to imports and exports among them.
  • Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
  • The concept of free trade is the opposite of trade protectionism or economic isolationism.
  • Countries often agree to FTAs if their economic structures are complementary, not competitive.

India-EU Trade Ties

  • The EU is India’s third largest trading partner, accounting for 11.8% of India’s total trade in 2020-21, after the US (12.61%) and China (12.59%).
  • It is India’s second-largest export destination after the US.
  • India is the EU’s tenth largest trading partner, accounting for 1.8% of the EU’s total trade in goods in 2020.
  • The EU is also a major source of FDI in India. Between April 2000 and March 2021, FDI flows from the EU to India totalled $88.32 billion.

How would the FTA help India?

  • It will help Indian exporters gain competitive advantage in the EU markets while helping domestic manufacturers get cheaper access to imports from the EU.
  • India’s major exports to the EU include mineral fuels, mechanical appliances, electrical and electronic machineries, organic chemicals, automobiles and auto components, pharmaceuticals, precious stones, and iron and steel products.
  • The untapped export potential for India in the seven major markets of the EU—Germany, France, Italy, the Netherlands, Spain, Belgium, and Switzerland—is around $26.8 billion.

Why is the FTA important for the EU?

  • After Brexit, the EU is trying to clinch trade deals to diversify supply chains and find profitable exporting destinations for European companies.
  • The EU is looking for a large market as intra-EU trade remains stagnant and trade with the UK shrinks because of new institutional trade barriers.
  • The FTA with India will also help the EU reduce trade ties with Russia.

What are the key stumbling blocks?

  • A major point of contention has been the EU’s demand for  reduction in India’s tariff rate.
  • Earlier talks did not resolve issues involving trade in agriculture and services, digital trade, intellectual property rights, and commitments on sustainable development issues such as environmental, social, and labour rights.
  • Visa requirements and work permits for Indian workers to the EU have been a major bone of contention.
  • Restrictions on transfer of personal data from the EU to other countries is a barrier for trade in digital services.

What is the likelihood of an agreement?

  • The two sides have set the ball rolling on the FTA.
  • The president of the European Commission recently agreed to establish a trade and technology council to deliberate on data protection regulations and strengthening digital trade between India and the EU.
  • PM Modi’s recent visit to three key EU member countries is expected to further reinvigorate the FTA talks.

Also read

[Burning Issue] India-EU Relations

 

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Freedom of Speech – Defamation, Sedition, etc.

India slips to 150 in Press Freedom Index

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Freedom of Speech and Expression, Its many aspects

Mains level: Freedom of press in India

India has reached 150th position in the World Press Freedom Index, dropping further from its last year’s 142nd rank out of 180 countries.

What is Press Freedom Index?

  • The PFI is an annual ranking of countries compiled and published by Reporters Without Borders since 2002.
  • It is based upon the organisation’s own assessment of the countries’ press freedom records in the previous year.
  • It intends to reflect the degree of freedom that journalists, news organisations, and netizens have in each country, and the efforts made by authorities to respect this freedom.
  • It does not measure the quality of journalism in the countries it assesses, nor does it look at human rights violations in general.

Highlights of the 2022 report

(a) Best performing countries

  • Norway– 1st
  • Denmark– 2nd
  • Sweden– 3rd
  • Estonia– 4th
  • Finland– 5th

(b) Worst performers

  • North Korea remained at the bottom of the list, while Russia was placed at 155th position, slipping from 150th last year.
  • As per the global media watchdog, China climbed up by two positions ranking at 175th position, as compared to 177th position last year.

 (c) Performance in our neighbourhood

  • Besides India, its neighbours except Nepal have also slid down.
  • While Pakistan is at 157th position, Sri Lanka ranks at 146th, Bangladesh at 162nd and Maynmar at 176th position.

Back2Basics: Freedom of Press and Constitutional Provisions

  • The Supreme Court in Romesh Thappar v. the State of Madras, 1950 observed that freedom of the press lay at the foundation of all democratic organisations.
  • It is guaranteed under the freedom of speech and expression under Article 19, which deals with ‘Protection of certain rights regarding freedom of speech, etc.
  • Freedom of the press is not expressly protected by the Indian legal system but it is impliedly protected under article 19(1) (a) of the constitution.
  • The freedom of the press is also not absolute.

Reasonable restrictions

  • A law could impose only those restrictions on the exercise of this right, it faces certain restrictions under article 19(2), which is as follows:
  1. Sovereignty and integrity of India
  2. Security of the State,
  3. Friendly relations with foreign States
  4. Public order, decency or morality
  5. Contempt of court
  6. Defamation
  7. Incitement to an offence

 

 

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Indian Navy Updates

France pulls out of P-75I Project

Note4Students

From UPSC perspective, the following things are important :

Prelims level: P-75 I

Mains level: Indian navy modernization

Ahead of PM Modi’s scheduled visit, France has denounced its participation in the P-75 India (P-75I) project under which six conventional submarines are to be built in India for the Indian Navy.

Why did France pull out?

  • The reason was that the Request for Proposal (RFP) requires that the fuel cell AIP be sea proven, which not the case is for us yet since the French Navy does not use such a propulsion system.
  • AIP refers to Air-Independent Propulsion, a technology for conventional — that is, non-nuclear — submarines.

Backgrounder: Project 75

  • Project 75 India is a part of India’s thirty-year-old submarine building plan by which all the six submarines which are under the project should already be sailing and it should have been followed by the submarines now for which the RFP has been issued.
  • It is a long-awaited and long-overdue project.
  • This should have happened way back but it got delayed because it was difficult to find a strategic partnership model.

What is P-75I?

  • The Project 75I-class submarine is a follow-on of the Project 75 Kalvari-class submarine for the Indian Navy.
  • In the late 1990s, around the time of Kargil war, a three-decade plan took shape for indigenous construction of submarines.
  • It was known to have two separate series of submarine building lines – codenamed Project 75 and Project 75I — in collaboration with foreign entities.
  • Under this project, the Indian Navy intends to acquire six diesel-electric submarines, which will also feature advanced air-independent propulsion systems.
  • This is for enabling them to stay submerged for longer duration and substantially increase their operational range.

What is the status of the project?

  • The navy is slightly behind the curve on P-75I.
  • The project faces choppy waters; the Naval Group has already announced it is pulling out, and sources said the Russian and Spanish companies might also not proceed with their bids.
  • Among the concerns, is the requirement to demonstrate a sea-proven fuel cell AIP.
  • While some manufacturers may have the technology, it may not have been proven at sea yet.
  • Another problem for the OEMs is the transfer of technology, which is built into the process.

Why does the Navy want AIP subs?

  • Simply put, AIP technology allows a conventional submarine to remain submerged for much longer than ordinary diesel-electric submarines.
  • All conventional submarines have to surface to run their generators that recharge the batteries that allow the boat to function under water.
  • However, the more frequently a submarine surfaces, the higher the chances of it being detected.
  • AIP allows a submarine to remain submerged for more than a fortnight, compared to two to three days for diesel-electric boats.
  • IP has a force multiplier effect on lethality of a diesel electric submarine as it enhances the submerged endurance of the boat several folds.

What submarines does India have now?

  • India has 16 conventional diesel-electric submarines, which are classified as SSKs.
  • After the last two Kalvari Class subs are commissioned under P-75, this number will go up to 18.
  • India also has two nuclear ballistic submarines, classified SSBN.

Strategic importance of submarines development

  • Ageing arsenal: Currently, India has less number of submarines than what is required with some more of those from both types being at various stages of construction.
  • Combat roles in near future: The nuclear powered and diesel-electric submarines have their designated roles in the Carrier Battle Groups, which are formations of ships and submarines with Aircraft Carriers at the lead role.
  • Strategic deterrence: As per the basic principles of submarine deployment and the minimum requirement for India to create a strategic deterrence, there is a specific number of submarines of both types that India needs to have in active service.

Significance of P-75 I

  • ‘Make in India’ Projects: It will serve to facilitate faster and more significant absorption of technology and create a tiered industrial ecosystem for submarine construction in India.
  • Self-Reliance: From a strategic perspective, this will help reduce current dependence on imports and gradually ensure greater self-reliance and dependability of supplies from indigenous sources.
  • Securing Indo-Pacific: China is increasing its presence in the Indian Ocean Region (IOR) and this is creating pressure on the Indian Navy in sprucing up the submarine arm.

 

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Russian Invasion of Ukraine: Global Implications

Russia officially quits the International Space Station (ISS)

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ISS

Mains level: Not Much

Russia is responding to the Western sanctions. It has decided to walk out of the International Space Station.

International Space Station

  • The ISS was launched in 1998 as part of joint efforts by the U.S., Russia, Japan, Canada and Europe.
  • The idea of a space station originated in the 1984 State of the Union address by former U.S. President Ronald Reagan.
  • The space station was assembled over many years, and it operates in low-earth orbit.
  • Since its inception, it has served as a laboratory suspended in space and has aided multiple scientific and technological developments.
  • The ISS was originally built to operate for 15 years.

Why was ISS launched?

  • A space station permits quantum leaps in research in science, communications, and in metals and lifesaving medicines which could be manufactured only in space.
  • ISS has consistently maintained human presence for the past 21 years, providing astronauts with sophisticated technologies for scientific research.

What is Russia’s role in maintaining the ISS?

  • The ISS is built with the co-operation of scientists from five international space agencies — NASA of the U.S., Roscosmos of Russia, JAXA of Japan, Canadian Space Agency and the European Space Agency.
  • Each agency has a role to play and a share in the upkeep of the ISS.
  • Both in terms of expense and effort, it is not a feat that a single country can support.
  • Russia’s part in the collaboration is the module responsible for making course corrections to the orbit of the ISS.
  • They also ferry astronauts to the ISS from the Earth and back.
  • Until SpaceX’s dragon spacecraft came into the picture the Russian spacecrafts were the only way of reaching the ISS and returning.

 

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Indian Army Updates

Advanced Towed Artillery Gun System (ATAGS) passes validation trials

Note4Students

From UPSC perspective, the following things are important :

Prelims level: ATAGS

Mains level: India's artillery arsenal

The indigenous Advanced Towed Artillery Gun System (ATAGS) developed by the Defence Research and Development Organisation (DRDO) successfully completed the validation trials.

Why in news?

  • The ATAGS has demonstrated a range of over 45 km, making it the “most consistent and accurate gun in the world”.

ATAG System

  • The ATAGS is a 155-mm, 52-calibre artillery gun jointly developed by the DRDO in partnership with Bharat Forge of the Kalyani Group and the Tata Power SED.
  • ATAGS has greater than 95% of indigenous content. It set a world record for the longest unassisted projectile range of 48 kilometres.

Its features

  • The gun consists of a barrel, breech mechanism, muzzle brake and recoil mechanism to fire 155 mm calibre ammunition with a firing range of 48 km.
  • It has an all-electric drive to ensure reliability and minimum maintenance over a long period of time.
  • It has advanced features like high mobility, quick deployability, auxiliary power mode, advanced communication system, automatic command and control system with night capability in direct fire mode.

 

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Foreign Policy Watch: India – EU

India-Denmark relations

Note4Students

From UPSC perspective, the following things are important :

Prelims level: India-Europe Trade and Technology Council

Mains level: Paper 2- India-Europe engagement

Context

As Russia, isolated by unprecedented Western sanctions, deepens its alliance with China, Europe has begun to loom larger than ever before in India’s strategic calculus. Prime Minister Narendra Modi’s visit to Berlin, Copenhagen, and Paris this week could give us a glimpse of India’s post-Russian strategic future in Europe.

Engagement with collective Europe

  • In her visit to Delhi, the president of the European Commission, Ursula von Der Leyn, unveiled the new contours of the EU’s strategic partnership with India by launching the India-Europe Trade and Technology Council. 
  • This week, the focus is on India’s key bilateral partnerships with European majors — Germany and France — as well as a critical northern corner of Europe, the so-called Norden.
  • Having built up a significant engagement with Moscow over the decades, India and Germany are under pressure to disentangle from the Russian connection.
  • Modi and Scholz could also exchange notes on how their long-standing illusions about China came crashing down.
  • Macron’s return to power in France offers a good moment for Modi to imagine the next phase in bilateral relations.
  • For some time now it has been said that France is India’s “new Russia” — Delhi’s most important strategic partner.
  • In recent years, France has emerged as a strong defender of India’s interests in the United Nations Security Council and a regional ally in the vast Indo-Pacific theatre.
  • France has also been a major supplier of advanced arms to India.
  • But Delhi and Paris have been some distance away from demonstrating full possibilities of their defence partnership.
  • There is no doubt that Western Europe has moved from the margins to the centre of India’s foreign and security policies.
  • The crisis in Ukraine, which has shattered the regional order that emerged in 1991, intensifies the imperatives for deeper strategic cooperation between India and its European partners.

India’s engagement with smaller European countries

  • In Copenhagen, the bilateral talks with Danish leadership are about Delhi finally finding time for the smaller European countries.
  • The Nordic summit hosted by Denmark underlines India’s discovery of the various sub-regions of Europe — from the Baltics to the Balkans and from Iberia to Mittleuropa.
  • The Nordic Five — Denmark, Finland, Iceland, Norway, and Sweden — have a population of barely 25 million but their GDP at $1.8 trillion is greater than that of Russia.
  • Two members of the Nordic five — Sweden and Finland — are now rushing to end their long-standing neutral status and join NATO.
  • The other three — Denmark, Iceland, and Norway — have been founding members of NATO, set up in 1949.
  • Listening to the Nordic leaders might help Delhi appreciate the deeply-held fears about Russia among Moscow’s smaller neighbours.
  • In Copenhagen, Modi would want to build on the unique bilateral green strategic partnership with Denmark.

Germany and India’s engagement with Russia

  • Berlin is tied far more deeply to Russia than India.
  • Germany’s annual trade with Russia is about $60 billion while India’s is at $10 bn.
  • Germany relies heavily on Russian natural gas, while Russian arms dominate India’s weaponry.
  • Irrespective of their Russian preferences, Germany and India have no option but to live with circumstances over which they have no control.
  • Opportunity for India: Making India an attractive new destination for German capital, now under pressure to reduce its exposure to Russian and Chinese markets, should be the highest priority for PM Modi.
  • Germany is one of India’s oldest economic partners, but the full potential of the commercial relationship has never been realised.
  • If there ever was a moment to think big about the future of German trade and investment in India, it is now.

Conclusion

A new paradigm is beckoning India — strong commercial and security partnerships with Europe that stand on their own merit and bring the many synergies between them into active play.

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Policy Wise: India’s Power Sector

The supply bottlenecks causing power shortages

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Power generation in India

Mains level: Paper 3- Coal shortage crisis

Context

The power sector in India is going through a crisis. Peak shortages in some states have reached double digits.

Chronology of the crisis

  • First, with summer approaching before time, power demand has shot up to record levels.
  • The second reason for the rise in power demand is that the economy is recovering, and demand from the industrial sector is going up.
  • All things put together, power demand crossed 207 GW on April 29, which is about 14 per cent higher than what it was a year ago.
  • Experts feel that the peak demand may even touch 215 GW in the coming months.

Coal shortage crisis

  • On average, coal stocks available are only good enough for about eight days’ generation against a norm of 24 days.
  • In some plants, the stocks available are just about enough to run the plant for a day or two more.
  • Part of the problem of poor coal stock is also rumoured to be on account of the non-payment of dues of coal companies.
  • But this is not the major cause of the shortage.

Reasons for coal shortage and fall in generation

  • The fall in coal stock in power stations is because of two main reasons.
  • 1] Rise in international price of coal: The first is that due to a rise in the international price of coal on account of the Ukraine crisis, all plants that were importing coal have either stopped generating completely or are generating at much lower levels.
  • We have a sizeable generating capacity based on imported coal, estimated at about 16 GW to 17 GW.
  • All these plants after stopping imports are now looking for domestic coal, creating pressure on domestic coal.
  • 2] Non-availability of rakes with Indian railways for transporting coal: Though about 22 MT of coal may be available in power stations, if one includes the stocks available with mining companies, the figure is well over 70 MT.
  • So, it is all a question of transporting the coal to the power stations.
  • 3] Fall in generation from gas-based plants: To make matters worse, generation from gas-based plants has also fallen due to high gas prices in the world market.
  • 4] Impact on hydro generation: Reservoirs, too, are drying up due to intense heat which will adversely affect hydro generation.

Transportation problem faced by Indian railways

  • The railways have about 2,500 rakes which can be used for coal transportation.
  • With a turn-around time of about four-and-a-half days which goes up to nine days for coastal regions, the railways can provide only about 525 rakes on any single day. 
  • Of this, about 100 rakes are used for transporting imported coal and therefore, only about 425 rakes are available on a daily basis for transporting domestic coal.
  • But only 380 rakes were being provided in the first half of April this year, though efforts are on to increase this to about 415 rakes.
  • The railways prefer to transport coal over short distances in order to save on the turn-around time.
  • There is also the issue of availability of tracks since they are being used on a back-to-back basis.
  • Thus production has to be enhanced so that the replenishment rate is higher than consumption.
  • Unless we do that, the total stock of coal in the country will deplete further and it will no longer be a mere transportation problem as it is now, but a general lack of supply of coal.

Conclusion

This is the right time to enhance coal production and build adequate stocks because once the monsoon sets in, production will fall.

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Languages and Eighth Schedule

The Debate on National Language

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Official language , Eight schedule

Mains level: Hindi imposition debate

Remarks by a Hindi actor to the effect that Hindi is the national language of India has sparked controversy recently over the status of the language under the Constitution.

What is the status of Hindi?

  • Under Article 343 of the Constitution, the official language of the Union shall be Hindi in Devanagari script.
  • The international form of Indian numerals will be used for official purposes.

The debate

  • Inherent opposition to Hindi: The Constituent Assembly was bitterly divided on the question, with members from States that did not speak Hindi initially opposing the declaration of Hindi as a national language.
  • Colonial footprints of English: Proponents of Hindi were insistent that English was the language of enslavement and that it should be eliminated as early as possible.
  • Fear of Hindi imposition: Opponents were against English being done away with, fearing that it may lead to Hindi domination in regions that did not speak the language.
  • Inefficacy of Sanskrit: There were demands to make Sanskrit the official language, while some argued in favour of ‘Hindustani’.
  • Issue over Script: There were differences of opinion over the script too. When opinion veered towards accepting Hindi, proponents of the language wanted the ‘Devanagari’ script to be adopted both for words and numerals.

Major outcome: No national language

  • It was decided that the Constitution will only speak of an ‘official language’.
  • And that English would continue to be used for a period of 15 years.
  • The Constitution said that after 15 years, Parliament may by law decide on the use of English and the use of the Devanagari form of numbers for specified purposes.

What is the Eighth Schedule?

  • The Eighth Schedule contains a list of languages in the country. Initially, there were 14 languages in the schedule, but now there are 22 languages.
  • There is no description of the sort of languages that are included or will be included in the Eighth Schedule.

Constitutional position of Eighth Schedule

There are only two references to these languages in the text of the Constitution.

(i) Article 344(1):

  • It provides for the formation of a Commission by the President, which should have a Chairman and members representing these scheduled languages.
  • The purpose of the Commission is to make recommendations for the progressive use of Hindi for official purposes of the Union and for restricting the use of English.

(ii) Article 351:

  • It says it is the Union government’s duty to promote the spread of Hindi so that it becomes “a medium of expression for all elements of the composite culture of India”.
  • It also aims to assimilate elements of forms and expressions from Hindustani and languages listed in the Eighth Schedule.

What were the 1965 protests about?

  • The Official Languages Act, 1963 was passed in anticipation of the expiry of the 15-year period during which the Constitution originally allowed the use of English for official purposes.
  • Its operative section provided for the continuing use of English, notwithstanding the expiry of the 15-year period.
  • Jawaharlal Nehru had given an assurance in 1959 that English would remain in official use and as the language of communication between the Centre and the States.
  • The Official Languages Act, 1963, did not explicitly incorporate this assurance, causing apprehensions in some States as the January 1965 deadline neared.
  • At that time, PM Lal Bahadur Shastri reiterated the government’s commitment to move towards making Hindi the official language for all purposes.

TN loops in the agitation

  • In Tamil Nadu, then known as Madras, the prospect of the use of Hindi as the medium of examination came due to recruitment examination of union.
  • It created an apprehension that Hindi would be imposed in such a way that the future employment prospects of those who do not speak Hindi will be bleak.

Creating an exception for Tamil Nadu

  • With the Congress government in the State taking the view that the people had nothing to fear about, protests broke out in January 1965.
  • It took a violent turn after more and more student activists joined the protest, and continued even after key Dravida Munnetra Kazhagam (DMK) leaders were arrested.
  • More than 60 people died in police firing and other incidents as the protests went on for days.
  • The agitation died down later, but by then the Congress at the Centre realised the sensitivity of the language issue among Tamil-speaking people.
  • When the Official Language Rules were framed in 1976, it was made clear that the Rules apply to the whole of India, except Tamil Nadu.

What is the three-language formula?

  • Since the 1960s, the Centre’s education policy documents speak of teaching three languages — Hindi, English and one regional language in Hindi-speaking States, and Hindi, English and the official regional language in other States.
  • In practice, however, only some States teach both their predominant language and Hindi, besides English.
  • In States where Hindi is the official language, a third language is rarely taught as a compulsory subject.
  • Tamil Nadu has been steadfastly opposing the three-language formula and sticks to teaching Tamil and English.
  • It argues that those who need to know Hindi can learn on their own.

 

 

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Parliament – Sessions, Procedures, Motions, Committees etc

Quasi-Federalism in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Federal and Unitary features

Mains level: India's quasi-federalism

This newscard is an excerpt from the original article published in the TH.

Why in news?

  • The contemporary discourse on federalism in India is moving on a discursive across multiple dimensions, be it economic, political and cultural,
  • It is argued that India is at an inflection point vis-a-vis Centre-State relations owing to increasing asymmetry.

What is Federalism?

  • Federalism is a system of government in which the power is divided between a central authority and various constituent units of the country.
  • This vertical division of power among different levels of governments is referred to as federalism.
  • Federalism is one of the major forms of power-sharing in modem democracies.

Indian case: Federal, quasi-federal or hybrid?

  • India consciously adopted a version of federalism that made the Union government and State governments interdependent on each other (latter more vis-a-vis the former).

The federal features of the Constitution of India are:

  • Written Constitution: Features of the Indian Constitution is not only a written document but also the longest constitution in the world. Originally, it included a Preamble, 395 articles (22 parts), and 8 schedules.
  • Dual Polity: The constitution establishes a dual polity that includes the union at the periphery. Each is endowed with sovereign powers to be exercised in the field assigned to them respectively by the Constitution.
  • Bicameralism: The constitution provides for a bicameral legislature in which an upper house (Rajya Sabha) and a lower house (Lok Sabha). Rajya Sabha represents the states of the Indian Union, whereas The Lok Sabha represents the people of India as a whole.
  • Division of Powers: The Constitution divided the powers between the Center and the states in terms of the Union List, State List, and Concurrent List in the Seventh Schedule.
  • Supremacy of the Constitution: The Constitution is the supreme law of the country. The laws made by the Center and the states should be in conformity with Provision. Otherwise, they may be declared invalid by the Supreme or High Court through its power of judicial review.
  • Rigid Constitution: The division of powers established by the Constitution as well as supremacy of the constitution can be maintained only if the method of its amendment is rigid. It is necessary for both houses to agree to amend the constitution.
  • Independent judiciary: The constitution establishes an independent judiciary headed by the Supreme Court for two purposes: one, to protect the supremacy of the constitution, and two, to settle the disputes between the Centre and states or between the states.

Besides the above federal features, the Indian constitution also possesses the following unitary features:

  • Strong Centre: The division of powers is in favour of the centre and unequal from a federal point of view. Firstly, the Union list contains more subjects than the state list, secondly, the more important subjects have been included in the union list and the Centre has overriding authority over the concurrent list.
  • Single constitution: The constitution of India embodies not only the constitution of the Centre but also those of the states. Both the Centre and the States must operate within this single frame.
  • Destructible nature of states: Unlike in other federations, the states in India have no right to territorial integrity. The parliament can change the area, boundaries, or name of any state.
  • Emergency provisions: The emergency provisions are contained in Part XVIII of the Constitution of India, from Articles 352 to 360. In the emergency provisions, the central government becomes all-powerful and the states go into total control of the Centre.
  • Single citizenship: Single citizenship means one person is the citizenship of the whole country. The constitution deals with citizenship from Articles 5 and 11 under Part 2.
  • All India services: In India, there are all India services (IAS, IPS and IFS) which are common to both the Centre and the states. These services violate the principle of federalism under the constitution.
  • Appointment of governor: The governor is appointed by the president. He also acts as an agent of the Centre. Through him, the Centre exercises control over the states.
  • Integrated election machinery: The election commission conducts elections for central and state legislatures. But the Election commission is constituted by the president and the states have no say in this matter.
  • Equality (= Equity) of representation: The states are given representation in the upper house on the basis of population. Hence, the membership varies from 1 to 31.
  • Integrated Judiciary: The term Integrated Judiciary refers to the fact that rulings made by higher courts bind lower courts. The Supreme Court of India incorporates all lower courts, from the Gram Panchayat to the High Courts. The Supreme Court is at the very top.
  • Union veto over State Bills:  The governor has the authority to hold certain sorts of laws passed by the state legislature for presidential consideration. The President has the authority to refuse to sign such bills not only in the first instance but also in the second.

Reasons for a centralised federal structure

There are at following reasons that informed India’s choice of a centralised federal structure.

  1. Partition of India and the concomitant concerns: The 1946 Objectives Resolution introduced by Nehru in the Assembly were inclined towards a decentralised federal structure wherein States would wield residuary powers.
  2. Reconstitution of social relations in a highly hierarchical and discriminatory society: The centralised structure would unsettle prevalent trends of social dominance, help fight poverty better and therefore yield liberating outcomes.
  3. Building of a welfare state: In a decentralised federal setup, redistributive policies could be structurally thwarted by organised (small and dominant) groups. Instead, a centralised federal set-up can prevent such issues and further a universal rights-based system.
  4. Alleviation of inter-regional economic inequality: Provincial interventions seemed to exacerbate inequalities. India’s membership in the International Labour Organization, the Nehru Report (1928), and the Bombay Plan (1944) pushed for a centralised system to foster socio-economic rights and safeguards for the working and entrepreneurial classes.
  5. Linguistic reorganization: It would not have been possible if India followed a rigid or conventional federal system. In other words, the current form of federalism in the Indian context is largely a function of the intent of the government of the day and the objectives it seeks to achieve.
  • From the above, it is clear that India has deviated from the traditional federal systems like the USA   and incorporated a large number of unitary features, tilting the balance of power in favor of the Centre.
  • Hence K C Wheare described the constitution of India as “quasi-federal”.

Conclusion

  • The majoritarian tendencies sometimes are subverting the unique and indigenised set-up into an asymmetrical one.
  • Inter alia, delayed disbursal of resources and tax proceeds, bias towards electorally unfavourable States, evasion of accountability, imposition of language, weakening institutions, proliferation of political ideologies all signal towards the diminishing of India’s plurality or regionalisation of the nation.
  • While it would be safe to argue that our federal set-up is a conscious choice, its furthering or undoing, will depend on the collective will of the citizenry and the representatives they vote to power.

 

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