Note4Students
From UPSC perspective, the following things are important :
Prelims level: GST
Mains level: Paper 3- GST compensation issue and reforms needed
The GST compensation issue raises the need for reform in the system. The article discusses this issue and suggests reform.
Background
- Three years ago, the Centre and the States of the Union of India struck a grand bargain resulting in GST.
- The States gave up their right to collect sales tax and sundry taxes, and the Centre gave up excise and services tax.
Issue of compensation
- Consent of the states was secured by a promise of reimbursing any shortfall in tax revenues for a period of five years.
- This reimbursement was to be funded by a special cess called the GST compensation cess.
- The promised reimbursement was to fill the gap for an assured 14% year on year tax growth for five years.
Why is the Centre denying GST compensation
- As the economy battles a pandemic and recession, the tax collection has dropped significantly.
- At the same time, expenditure needs are sharply higher at the State level.
- Using an equivalent of the Force Majeure clause in commercial contracts, the Centre is abdicating its responsibility of making up for the shortfall in 14% growth in GST revenues to the states.
Why Central government is wrong in denying the compensation
- 1) The States do not have recourse to multiple options that the Centre has.[like sovereign bond or a loan against public sector unit shares from the Reserve Bank of India]
- 2) The Centre can get loans at lower rates of borrowing from the markets as compared to the States.
- 3) In terms of aggregate public sector borrowing, it does not matter for the debt markets, nor the rating agencies, whether it is the States or the Centre that is increasing their indebtedness.
- 4) Fighting this recession through increased fiscal stimulus is basically the job of macroeconomic stabilisation, which is the Centre’s domain.
- 5) Using the alibi of the COVID-19 pandemic causes a serious dent in the trust built up between the Centre and States.
- It will weaken the foundation of cooperative federalism.
Reforms needed
- GST is a destination-based consumption tax, which must include all goods and services with very few exceptions.
- That widening of the tax base itself will allow us to go back to the original recommendation of a standard rate of 12%, to be fixed for at least a five-year period.
- Some extra elbow room for the States’ revenue autonomy could be allowed by States non VATable surcharges on a small list of “sin” goods.
- In the long term there are many changes in consumption patterns, production configurations and locations, which cannot be anticipated and hence a static concept of Revenue Neutral Rate cannot be reference.
- The commitment to a low and stable rate is a must.
- We must recognise the increasing importance of the third tier of government.
- After 28 years of the 73rd and 74th Amendments, the local governments do not have the promised transfer of funds, functions and functionaries.
- Of the 12% GST, 10% should be equally shared between the States and the Centre, and 2% must be earmarked exclusively for the urban and rural local bodies.
- Fresh approach also calls for an overhaul of the interstate GST and the administration of the e-way bill.
Consider the question “Discuss the issue related to GST compensation to the States by the Central government. Suggest the measures changes in the GST regime to deal with flaws.”
Conclusion
GST is a crucial and long-term structural reform which can address the fiscal needs of the future, strike the right and desired balance to achieve co-operative federalism and also lead to enhanced economic growth. The current design and implementation has failed to deliver on that promise. A new grand bargain is needed.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SCRI
Mains level: Global trade tensions with China and its repercussions
With COVID-19 and trade tensions between China and the US threatening supply chains or actually causing bottlenecks, Japan has mooted the Supply Chain Resilience Initiative (SCRI) as a trilateral approach to trade, with India and Australia as the other two partners.
Q.Discuss the efficacy of the idea of Supply Chain Resilience Initiative (SCRI) initiaited by Japan.
What is Supply Chain Resilience (SCR)?
- In the context of international trade, SCR is an approach that helps a country to ensure that it has diversified its supply risk across a clutch of supplying nations instead of being dependent on just one or a few.
- Unanticipated events whether natural or man-made that disrupt supplies from a particular country or even intentional halts to trade, could adversely impact economic activity in the destination country.
What is Japan proposing?
- The pandemic has brought into sharp focus the assembly lines which are heavily dependent on supplies from one country.
- While Japan exported $135 billion worth of goods to China in 2019, it also imported $169 billion worth from the world’s second-largest economy, accounting for 24% of its total imports.
- So, any halt to supplies could potentially impair economic activity in Japan.
- In addition, the U.S.-China trade tensions have caused alarm in Japanese trade circles for a while now.
- If the world’s two largest economies do not resolve their differences, it could threaten globalisation as a whole and have a major impact on Japan.
- It is heavily reliant on international trade both for markets for its exports and for supplies of a range of primary goods from oil to iron ore.
Japan eyeing India as a partner for the SCRI
- Japan is the fourth-largest investor in India with cumulative FDIs touching $33.5 billion in the 2000-2020 periods.
- It accounts for 7.2% of inflows in that period, according to quasi-government agency India Invest.
- Imports from Japan into India more than doubled over 12 years to $12.8 billion in FY19. Exports from India to the world’s third-largest economy stood at $4.9 billion that year, data from the agency showed.
- It is a clear reflection that the two countries are unlikely to allow individual cases to cloud an otherwise long-standing and deepening trade relationship.
Where does Australia stand?
- Australia, Japan and India are already part of another informal grouping, the Quadrilateral Security Dialogue, or the Quad, which includes the U.S.
- Media reports indicate that China has been Australia’s largest trading partner and that it counts for 32.6% of Australia’s exports, with iron ore, coal and gas dominating the products shipped to Asia’s largest economy.
- But relations including trade ties between the two have been deteriorating for a while now.
- China banned beef imports from four Australian firms in May and levied import tariffs on Australian barley.
India’s stand to gain or lose
- Following the border tensions, partners such as Japan have sensed that India may be ready for dialogue on alternative supply chains.
- Earlier, India would have done little to overtly antagonize China. But an internal push to suddenly cut links with China would be impractical.
- China’s share of imports into India in 2018 stood at 14.5%. It supplies dominate segments of the Indian economy.
- Sectors that have been impacted by supply chain issues arising out of the pandemic include pharmaceuticals, automotive parts, electronics, shipping, chemicals and textiles.
- Over time, if India enhances self-reliance or works with exporting nations other than China, it could build resilience into the economy’s supply networks.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: C-14, Carbon Dating
Mains level: Scientific management of nuclear waste and its disposal
A California-based company has made a self-charging battery, which can run for 28,000 years on a single charge, by trapping carbon-14 (C14) nuclear waste in artificial diamond-case.
Try this PYQ:
Q.The known forces of nature can be divided into four classes, viz. gravity, electromagnetism, weak nuclear force and strong nuclear force. With reference to them, which one of the following statements is not correct?
(a) Gravity is the strongest of the four
(b) Electromagnetism act only on particles with an electric charge
(c) Weak nuclear force causes radioactivity
(d) Strong nuclear force holds protons and neutrons inside the nuclear of an atom.
What is C14?
- Carbon-14 (14C), or radiocarbon, is a radioactive isotope of carbon with an atomic nucleus containing 6 protons and 8 neutrons.
- There are three naturally occurring isotopes of carbon on Earth: carbon-12, which makes up 99% of all carbon on Earth; carbon-13, which makes up 1%; and carbon-14, which occurs in trace amounts.
- Its presence in organic materials is the basis of the radiocarbon dating method pioneered by Willard Libby and colleagues (1949) to date archaeological, geological and hydrogeological samples.
C14 battery
- The battery works by generating electricity on its own from a shower of electrons as a result of radioactive decay scattered and deposited in the artificial diamond-case.
- The battery can be used in electric vehicles, mobile phones, laptops, tablets, drones, watches, cameras, health monitors and even sensors.
- It is also said to be extremely safe and tamper-proof as it is coated with a non-radioactive diamond which prevents radiation leaks.
Best example of nuke waste recycling
- It is estimated that 33 million cubic metres of global nuclear waste will cost over $100 billion to manage and dispose of.
- And a lot of this waste is graphite that is one of the higher risks of radioactive waste and one of the most expensive and problematic waste to store.
Its applications
- The company says its battery can be used to powerhouses, and that any excess electricity generated can be sold to the grid.
- As the new battery need not be replaced, it can be installed in hard to reach places like pacemakers and implants, where a regular change of battery is not possible.
- Another area of use is space electronics. The battery is said to power space equipment in rockets.
- It can power the electrical needs of space crafts, like providing power to cockpits and assisting launch into the upper atmosphere.
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From UPSC perspective, the following things are important :
Prelims level: Renati Cholas, Chola Administration
Mains level: Not Much
A rare inscription dating back to the Renati Chola era has been unearthed in a remote village of Kadapa district of Andhra Pradesh.
Try this PYQ:
Q.In the context of the history of India, consider the following pairs:
Term: Description
- Eripatti: Land revenue from which was set apart for the maintenance of the village tank
- Taniyurs: Villages donated to a single Brahmin or a group of Brahmins
- Ghatikas: Colleges generally attached to the temples
Which of the pairs given above is/are correctly matched?
(a) 1 and 2
(b) 3 only
(c) 2 and 3
(d) 1 and 3
Who are the Renati Cholas?
- The Telugu Cholas of Renadu (also called as Renati Cholas) ruled over Renadu region, the present-day Kadapa district.
- They were originally independent, later forced to the suzerainty of the Eastern Chalukyas.
- They had the unique honour of using the Telugu language in their inscriptions belonging to the 6th and 8th centuries.
- The earliest of this family was Nandivarman (500 AD) who claimed descent from the family of Karikala and the Kasyapa gotra.
- He had three sons Simhavishnu, Sundarananda and Dhananjaya, all of whom were ruling different territories simultaneously.
- The family seems to have had its origin in Erigal in the Tunmkur district, situated in the border between Pallava and Kadamba regions.
About the inscription
- The inscription so found was engraved on a dolomite slab and shale.
- The inscription was written in archaic Telugu which is readable in 25 lines — the first side with eleven lines and the remaining on the other side.
- It was assigned to the 8th Century A.D. when the region was under the rule of Chola Maharaja of Renadu.
- The inscription seems to throw light on the record of a gift of six Marttus (a measuring unit) of land gifted to a person Sidyamayu, one of the Brahmins serving the temple at Pidukula village.
- It says the people who safeguard this inscription for future generations will acquire the status of conducting Aswamedha Yajna and those destroying it will incur sin equivalent to causing death in Varanasi.
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From UPSC perspective, the following things are important :
Prelims level: Exercise Kavkaz 2020
Mains level: Not Much
India has turned down Russia’s invitation to participate in the multilateral defence exercise Kavkaz 2020.
Go through the list for once. UPSC may ask a match the pair type question asking exercise name and countries involved.
https://www.civilsdaily.com/prelims-spotlight-defence-exercises/
Exercise Kavkaz 2020
- The Kavkaz 2020 is also referred to as Caucasus-2020.
- The exercise is aimed at assessing the ability of the armed forces to ensure military security in Russia’s southwest, where serious terrorist threats persist and preparing for the strategic command-staff drills.
- The main training grounds that will be involved are located in the Southern Military District.
- The invitation for participation has been extended to at least 18 countries including China, Iran, Pakistan and Turkey apart from other Central Asian Republics part of the SCO.
Why didn’t India participate?
- While it is learned that China has confirmed its participation, Pakistan is also likely to send its troops for the exercise.
- In the response communicated to Russia, New Delhi cited Covid-19 as the official reason to skip ‘Exercise Kavkaz 2020’.
- The move comes in the backdrop of a border standoff with China in eastern Ladakh.
Earlier instances
- Exercise Tsentr last year had the participation of India, Pakistan and all Shanghai Cooperation Organisation (SCO) member-nations.
- India had participated in SCO peace mission exercise in 2018, and in 2019, for the first time, was involved in a strategic command and staff exercise as part of Exercise Tsentr.
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From UPSC perspective, the following things are important :
Prelims level: Hampi
Mains level: Vijayanagara Architecture
The Ministry of Tourism organised their latest webinar titled Hampi- Inspired by the past; Going into the future under Dekho Apna Desh Webinar series.
Try this PYQ:
Q.Building ‘Kalyaana Mandapas’ was a notable feature in the temple construction in the kingdom of-
(a) Chalukya
(b) Chandela
(c) Rashtrakuta
(d) Vijayanagara
Facts about Hampi
- Its name is derived from Pampa which is the old name of the Tungabhadra River on whose banks the city is built.
- In 1336 CE, the Vijayanagara Empire arose from the ruins of the Kampili kingdom.
- It grew into one of the famed Hindu empires of South India that ruled for over 200 years.
- The Vijayanagara rulers fostered developments in intellectual pursuits and the arts, maintained a strong military and fought many wars with sultanates to its north and east.
- They invested in roads, waterworks, agriculture, religious buildings and public infrastructure.
- The site used to be multi-religious and multi-ethnic; it included Hindu and Jain monuments next to each other.
- The buildings predominantly followed South Indian Hindu arts and architecture dating to the Aihole-Pattadakal styles.
- The Hampi builders also used elements of Indo-Islamic architecture in the Lotus Mahal, the public bath and the elephant stables.
Major attractions
- One of the major attractions of Hampi is the 15th Century Virupaksha temple which is one of the oldest monuments of the town.
- The main shrine is dedicated to Virupaksha, a form of Lord Shiva.
- Hemkunta Hill, south of the Virupaksha temple contains early ruins, Jain temples and a monolithic sculpture of Lord Narasimha, a form of Lord Vishnu.
- At the eastern end, there is the large Nandi in stone; on the southern side is the larger than life Ganesha.
- Large single stone carvings seem to have been the fashion of the day in Hampi, for there is a large image of Narasimha (6.7m high), the half-lion half-man incarnation of God, as well as a huge linga.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Providing alternative investment destination to China and policy changes in India
The article examines whether India has been proving a favourable alternative to China or not.
Is India becoming alternate supply source and investment destination?
- Despite media reports and strong messaging from Washington, fewer U.S. companies than predicted might quit China.
- Companies focused on the Chinese domestic market rather than as a base for exports will likely remain, at least for now.
- Those that do leave may not choose India as a relocation destination.
- Many U.S. companies with experience working with China are not convinced that India has China’s established industrial base and expertise.
- They also see other Asian countries as more competitive.
India’s strengths
- Democracy: India’s identity as a democratic “un-China” is one of its strongest selling points.
- Strong IPR: There is no threat of stealing of intellectual property rights.
- No coercive tactics: Foreign companies in India are not subject to coercive tactics as in China.
- Institutions: India’s open and vibrant press, an independent judiciary, and other advantages of democratic governance also provide a contrast to China.
- Domestic market:India’s well-off domestic market also attracts foreign investors.
Why China is a favoured destination
- China offers many advantages, such as a manufacturing infrastructure and skill level that allows innovations to move quickly from prototype to product.
- China’s specialised industrial zones are massive, collocating companies, factories, logistics, and even research and universities.
Way forward
1) Focus on the States
- India can start by focusing development in those Indian States that have already demonstrated the ability to produce and export in key sectors.
- Foreign capital could also greatly increase infrastructure funds beyond government spending alone.
- India might also usefully build up new industrial centres with an eye to geography. [for instance-linking the southeast of the country to supply chains in Southeast Asia]
2) Focus on the policy framework
- India should take two great steps-
- 1) Reduce the number of investments needing approval by the Centre.
- 2)To increase intra-Ministry coordination on foreign direct investment policies.
- The same coordination could be extended to the appointment of a high-level official or body in the Prime Minister’s Office.
- This will ensure that all proposed economic policy changes are consistent with the goal of attracting foreign investment.
Conclusion
A policy framework that is transparent, predictable, and provides increased consultations with existing and potential foreign company stakeholders before introducing new Indian economic policies, will play a crucial role in determining India’s foreign investment outlook.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Various indicators in Ease of Doing Business index
Mains level: Paper 3- Ease of doing business Index and issues with it
India’s ranking in the World Bank’s ‘Ease of Doing Business’ index has improved spectacularly. However, the World Bank recently halted its publication and announced decision to review and assess data changes for last five years.
Background
- Citing irregularities of data for a few countries, the World Bank halted its annual publication ‘Doing Business’ report.
- It will conduct a systematic review and assessment of data changes that occurred subsequent to the institutional data review process for the last five Doing Business reports.
Why India should be concerned
- Through improved ranking India sought to attract investments to achieve the targets set for ‘Make in India’.
- India’s success in boosting its ease of doing business ranking is spectacular, to 63rd rank in 2019, up from the 142nd position in 2014.
- Policymakers celebrated it to signal India’s commitment to “minimum government and maximum governance”.
- The World Bank decision to audit the ‘Doing Business’ report for the last five years may soon cause discomfort by shining a spotlight on the sharp rise in India’s ranking.
- Study at the Center for Global Development found that the improvement in India’s ranking was almost entirely due to methodological changes.
- During the same period, however, Chile’s global rank went down sharply, from 34th position in 2014 to 67th in 2017.
- The contrasting experience of Chile and India casts doubts on not just the country-level data but also the changes in underlying methodologies.
Does ease of doing business have predictive power?
- While India’s rank drastically improved, it has meant nothing on the ground.
- The share of the manufacturing sector has stagnated at around 16-17% of GDP, and 3.5 million jobs were lost between 2011-12 and 2017-18.
- Annual GDP growth rate in manufacturing fell from 13.1% in 2015-16 to zero in 2019-20, as per the National Accounts Statistics.
- India’s import dependence on China has shot up.
- In case of Russia, ease of doing business rank jumped from 120 in 2012 to 20, but without becoming a magnet for investment inflows.
- China, on the contrary, attracted one of the highest capital inflows but its ease of doing business ranking was low and hovered between 78 and 96 for the years between 2006 and 2017.
Other flaws in the Index
- The Indicators used for the index are de jure (as per the statute), not de facto (in reality).
- The data for computing the index are obtained from larger enterprises in two cities, Mumbai and Delhi, by lawyers, accountants and brokers — not from entrepreneurs.
- The World Bank’s own internal watchdog, the Independent Evaluation Group, in its 2013 report, has widely questioned the reliability and objectivity of the index.
- The World Bank conducts a global enterprise survey collecting information from companies.
- There is no correlation between the rankings obtained from ease of doing business and the enterprise surveys.
Lack of theoretical basis: Major flaw
- There is little in any major strand of economic thought which suggests that minimally regulated markets for labour and capital produce superior outcomes in terms of output and employment.
- Economic history shows rich variations in performance across countries and policy regimes, defying simplistic generalisations.
- Such simplistic basis is used under a seemingly scientific garb of the quantitative index to the disadvantage of workers.
- To meet the ease of doing business targets, safety standards of factories are compromised.
- For instance, in 2016, the Maharashtra government abolished the annual mandatory inspection of steam boilers under the Boilers Act of 1923 and the Indian Boilers Regulation 1950.
- However, no factory has complied with self-certification or submitted the third party certification.
Consider the question “Examine the issues with the World Bank’s ‘Ease of Doing Business Index’? What are its implications for India?”
Conclusion
It is time the World Bank rethinks its institutional investment in producing the ‘Doing Business’ report. India should do some soul searching as to why the much trumpeted rise in global ranking has failed miserably on the ground.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Rights of PWDs
The United Nations has released it’s first-ever guidelines on access to social justice for people with disabilities to make it easier for them to access justice systems around the world.
Note: These guidelines can be used in mains answer while substantiating their rights.
Defining a person with a disability
- The UN Convention on the Rights of Persons with Disabilities was adopted in 2007 as the first major instrument of human rights in the 21st century.
- It defines persons with disabilities as those “who have long-term physical, mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective participation in society on an equal basis with others”.
Highlights of the Guidelines
The guidelines outline a set of 10 principles and detail the steps for implementation. The 10 principles are:
- Principle 1: All persons with disabilities have the legal capacity and, therefore, no one shall be denied access to justice on the basis of disability.
- Principle 2: Facilities and services must be universally accessible to ensure equal access to justice without discrimination of persons with disabilities.
- Principle 3: PWDS including children with disabilities, have the right to appropriate procedural accommodations.
- Principle 4: PWDS have the right to access legal notices and information in a timely and accessible manner on an equal basis with others.
- Principle 5: PWDS are entitled to all substantive and procedural safeguards recognized in international law on an equal basis with others, and States must provide the necessary accommodations to guarantee due process.
- Principle 6: PWDS have the right to free or affordable legal assistance.
- Principle 7: PWDS have the right to participate in the administration of justice on an equal basis with others.
- Principle 8: PWDS have the rights to report complaints and initiate legal proceedings concerning human rights violations and crimes, have their complaints investigated and be afforded effective remedies.
- Principle 9: Effective and robust monitoring mechanisms play a critical role in supporting access to justice for persons with disabilities.
- Principle 10: All those working in the justice system must be provided with awareness-raising and training programmes addressing the rights of persons with disabilities, in particular in the context of access to justice.
Significance for India
- As per statistics maintained by the UN, in India 2.4 per cent of males are disabled and two per cent of females from all age groups are disabled.
- Disabilities include psychological impairment, intellectual impairment, speaking, multiple impairments, hearing, seeing among others.
- In comparison, the disability prevalence in the US is 12.9 per cent among females and 12.7 per cent among males.
- Disability prevalence in the UK is at 22.7 per cent among females and 18.7 per cent among males.
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From UPSC perspective, the following things are important :
Prelims level: Common Electoral Roll
Mains level: One Nation One Election Idea
The Prime Minister’s Office earlier this month held a meeting with representatives of the Election Commission and the Law Ministry to discuss the possibility of having a common electoral roll for elections to the panchayat, municipality, state assembly and the Lok Sabha.
Try this question:
Q.Discuss how a common electoral roll and simultaneous elections are ways to save the enormous amount of effort and expenditure on Elections in India.
Electoral Rolls in India
- In many states, the voters’ list for the panchayat and municipality elections is different from the one used for Parliament and Assembly elections.
- The distinction stems from the fact that the supervision and conduct of elections in our country are entrusted with two constitutional authorities — the Election Commission (EC) of India and the State ECs.
- Set up in 1950, the EC is charged with the responsibility of conducting polls to the offices of the President and Vice-President of India, and to Parliament, the state assemblies and the legislative councils.
- The SECs, on the other hand, supervise municipal and panchayat elections. They are free to prepare their own electoral rolls for local body elections, and this exercise does not have to be coordinated with the EC.
So do all states have a separate voters list for their local body elections?
- Each SEC is governed by a separate state Act. Some state laws allow the SEC to borrow and use the EC’s voter’s rolls in toto for the local body elections.
- In others, the state commission uses the EC’s voters list as the basis for the preparation and revision of rolls for municipality and panchayat elections.
- Currently, all states, except UP, Uttarakhand, Odisha, Assam, MP, Kerala, Odisha, Assam, Arunachal Pradesh, Nagaland and the UT of Jammu and Kashmir, adopt EC’s rolls for local body polls.
Why need a common electoral roll?
- First, the common electoral roll is among the promises made by the govt. in its manifesto for the Lok Sabha elections last year.
- It ties in with the party’s commitment to hold elections simultaneously to the Lok Sabha, state assemblies and local bodies, which is also mentioned in the manifesto.
- The incumbent government has pitched a common electoral roll and simultaneous elections as a way to save an enormous amount of effort and expenditure.
- It has argued that the preparation of a separate voters list causes duplication of essentially the same task between two different agencies, thereby duplicating the effort and the expenditure.
- The pitch for a single voters list is not new. The Law Commission recommended it in its 255th report in 2015. The EC too adopted a similar stance in 1999 and 2004.
How it can be implemented?
- In the meeting called by the PMO, two options were discussed.
- First, a constitutional amendment to Articles 243K and 243ZA that gives the power of superintendence, direction and control of preparation of electoral rolls and the conduct of local body elections to the SECs.
- The amendment would make it mandatory to have a single electoral roll for all elections in the country.
- Second, to persuade the state governments to tweak their respective laws and adopt the Election Commission’s (EC) voters list for municipal and panchayat polls.
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From UPSC perspective, the following things are important :
Prelims level: Art. 370
Mains level: Administrative changes in J and K
The Ministry of Home Affairs (MHA) has notified new rules for administration in the UT of Jammu and Kashmir that specify the functions of the Lieutenant Governor (LG) and the Council of Ministers.
New Rules for J&K
- The new rules have been defined under Section 55 of the Jammu and Kashmir Reorganization Act, 2019.
What are they?
(1)Executive functions of the L-G
- According to the rules the “police, public order, All India Services and anti-corruption” will fall under the executive functions of the L-G.
- Chief Minister or the Council of Ministers will have no say in their functioning.
(2)Minority Community interests
- The proposals or matters which affect or are likely to affect peace and tranquillity or the interest of any minority community, the SCs, the STs and the Backward Classes shall essentially be submitted to the LG through the Chief Secretary, under intimation to the CM, before issuing any orders.
(3)Service Matters
- The Council of Ministers, led by the CM, will decide service matters of non-All India Services officers, proposal to impose a new tax, land revenue, sale grant or lease of government property, reconstituting departments or offices and draft legislation.
(4)Difference of Opinion
- In case of difference of opinion between the L-G and a Minister when no agreement could be reached even after a month, the “decision of the Lieutenant Governor shall be deemed to have been accepted by the Council of Ministers”.
(5)Relation with the Centre
- According to the rules, “any matter which is likely to bring the Government of the UT into controversy with the Central Government or with any State Government” shall be brought to the notice of the L-G and the CM by the Secretary concerned through the Chief Secretary.
- All communications received from the Centre, including those from the PM and other Ministers, shall be submitted by the Secretary to the Chief Secretary, the Minister in charge, the CM and the L-G for information after their receipt.
(6)Various departments
- Under the rules, there will be 39 departments in the UT, such as school education, agriculture, higher education, horticulture, election, general administration, home, mining, power, Public Works Department, tribal affairs and transport.
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From UPSC perspective, the following things are important :
Prelims level: Noor Inayat Khan
Mains level: Not Much
World War II spy Noor Inayat Khan is now the first woman of Indian origin to be commemorated by the distinct blue London plaque.
Try this PYQ:
Q.A recent movie titled “The Man Who Knew Infinity” is based on the biography of-
(a) S. Ramanujan
(b) S. Chandrasekhar
(c) S. N. Bose
(d) C. V. Raman
Noor Inayat Khan
- A descendant of Tipu Sultan, Noor Inayat Khan became a secret agent during the Second World War.
- She was the first woman radio operator to be infiltrated into occupied France in 1943 and worked under the code name ‘Madeleine’.
- Renowned for her service in the Special Operations Executive, an independent British secret service set up by Winston Churchill in 1940.
- Noor was Britain’s first Indian Muslim war heroine in Europe and the first female radio operator sent into Nazi-occupied France.
- She was killed at the Dachau concentration camp in 1944 and was posthumously awarded the George Cross in 1949.
What are Blue Plaques?
- The idea of placing commemorative plaques on historically significant buildings was first mooted in 1863.
- The idea was to honour important people and organisations that have lived or worked in London buildings.
- Currently, the blue plaque scheme is being run by the charity organisation, English Heritage that takes care of historic sites and buildings in England.
- While Khan is the first woman of Indian origin to be honoured with a blue plaque, it has been erected on houses and venues associated with several Indian men including Mahatma Gandhi, Raja Ram Mohun Roy, B R Ambedkar, Sardar Patel and Swami Vivekananda among others.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GI Indications in news
Mains level: NA
The COVID-19 pandemic has dealt a crippling blow to the Channapatna Toys industry.
Must read:
GI Tags in news for 2020 Prelims
All time GI tags in news
Channapatna Toys
- Channapatna toys are a particular form of wooden toys (and dolls) that are manufactured in the town of Channapatna in the Ramanagara district of Karnataka.
- This traditional craft is protected as a geographical indication (GI) under the World Trade Organization, administered by the state govt.
- As a result of the popularity of these toys, Channapatna is known as Gombegala Ooru (toy-town) of Karnataka.
- Traditionally, the work involved lacquering the wood of the Wrightia tinctoria tree, colloquially called Aale mara (ivory-wood).
- Their manufacture goes back at least 200 years according to most accounts and it has been traced to the era of Hyder Ali and Tipu Sultan in the 18th century.
- The toys are laced with vegetable dyes and colours devoid of chemicals and hence they are safe for children.
Back2Basics: Geographical Indications in India
- A Geographical Indication is used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
- Such a name conveys an assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.
- This tag is valid for a period of 10 years following which it can be renewed.
- Recently the Union Minister of Commerce and Industry has launched the logo and tagline for the Geographical Indications (GI) of India.
- The first product to get a GI tag in India was the Darjeeling tea in 2004.
- The Geographical Indications of Goods (Registration and Protection) Act, 1999 (GI Act) is a sui generis Act for the protection of GI in India.
- India, as a member of the WTO enacted the Act to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights
- GI protection is granted through the TRIPS Agreement.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- India-Pakistan relations
The article pitches for the resumption of India-Pakistan relations. But there are obstacles on both the side which come in the way of such resumption.
Pakistan and relations over Kashmir issue
- In July, the Turkish president had assured Pakistan’s parliament of his country’s support for Islamabad’s Kashmir stand.
- More recently, Malaysia’s former Prime Minister, Mahathir Mohamad, has reiterated his backing for that stand.
- Iran’s current negotiations with China do not necessarily mean alignment with the latter’s Kashmir policy.
- Saudi Arabia and the Gulf countries invited official criticism in Pakistan first time for their refusal to back Pakistan in its disputes with New Delhi.
- Pakistan’s foreign minister had made a remark against Saudi Arabia over its reluctance to convene the meeting of IOC.
- Given the long history of Saudi-Pakistani relations, such remarks suggest a high degree of frustration.
India’s vulnerabilities and relations with Pakistan
- An excess of confidence and an unwillingness to think things through may be India’s vulnerabilities.
- Army’s chief of staff made the statement this year, “If Parliament wants that area [PoK] should be ours at some stage, and if we get such orders, we will definitely act on those directions.”
- Prime Minister made the statement regarding time of a week to 10 days to defeat the neighbouring country in case of war.
Picturing resumption of relations with Pakistan
- In case of war, aware of the total devastation to follow, neither side in an India-Pakistan conflict will press the nuclear button.
- On the other hand, it is also possible, before any war, to imagine negotiations that lead, not necessarily in that order, to a resumption of trade, travel and normal relations, the renunciation of terrorism, and the restoration of the democratic rights of the people of Kashmir.
- While no realistic person today expects such talks, it is not a crime to picture them.
Conclusion
Amicable relations with Pakistan may seem remote but they are worth striving for.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: NDHM
Mains level: Paper 2- National Digital Health Mission
The National Digital Health Mission promises to transform the Indian healthcare system with the aid of technology. The article highlights the key aspects of the mission.
Building integrated digital health infrastructure through NDHM
- NDHM is based on the principles of health for all, inclusivity, accessibility, affordability, education, empowerment, wellness, portability, privacy and security by design.
- NDHM will build the backbone necessary to create an integrated digital health infrastructure.
- With its key building blocks HealthID, DigiDoctor, Health Facility Registry, Personal Health Records, Telemedicine, and e-Pharmacy, the mission will bring together disparate stakeholders and radically strengthen and, thus change India’s healthcare delivery landscape.
- NDHM is also a purposeful step towards the achievement of the United Nations’ Sustainable Development Goal of Universal Health Coverage.
Importance of digital intervention in health service
- Digital interventions significantly enhance the outcomes of every health service delivery programme.
- Importance of digital intervention is demonstrated in the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana scheme.
- Under PM-JAY, 1.2 crore cashless secondary and tertiary care treatments have been provided using an indigenously developed state-of-the-art IT platform.
- The Arogya Setu mobile app deploys ICT innovations for contract tracing.
Principal highlight of NDHM
1) Voluntary in nature
- HealthID is entirely voluntary for citizens.
- Its absence will not mean denial of healthcare to a citizen.
- They can choose to generate their Health Account or ID using their Aadhaar card or digitally authenticable mobile number and by using their basic address-related details and email ID.
- The use of Aadhaar, therefore, is not mandatory.
2) Data sharing based on consent
- Providing access to and sharing of personal health records is a prerogative of the HealthID holder.
- The consent of the health data owner is required to access this information or a part of it.The consent can be withdrawn anytime.
- The personal health record will enable citizens to store and access their health data, provide them with more comprehensive information and empower them with control over their private health records.
3) Compliance with laws and fundamental rights
- NDHM has been built within a universe of fundamental rights and legislation such as the Aadhaar Act and the IT Act 2008 as well as the Personal Data Protection Bill 2019.
- This project is also informed by the entire gamut of Supreme Court judgments and core democratic principles of cooperative federalism.
- The Mission gets its strategic and technical foundation from the National Digital Health Blueprint, the architectural framework of which keeps the overall vision of NHP 2017 at its core and ensures security and privacy by design.
4) Reaching out to the unconnected population
- NHDM is a digital mission led by technology powered by the internet.
- So, to reach out to and empower the large number of “unconnected” masses specialised systems are being built and off-line modules that will be designed to reach out to the “unconnected”.
5) Partnership with all key stakeholders
- The design of NDHM has been built on the principle of partnership with all key stakeholders — doctors, health service providers, technology solution providers and above all citizens.
- Without their belief, trust, adoption, and stewardship, this mission will not achieve its desired result.
Consider the question “Examine the key aspects of the National Digital Heath Mission and how it could help transform the Indian healthcare landscape?”
Conclusion
NDHM is a mission whose time has come because health is the first step towards self-reliance and only a healthy nation can become Atma Nirbhar.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Provision of compensation to states under GST
Mains level: Paper 3- Issues of GST compensation to states.
The article analyses the issue of GST compensation to states under GST regime for five years and how this has turned to be contentious issues after the economic disruption caused by Covid-19.
The basis for compensation
- Under Goods and Services Tax (GST) regime the Centre would make good the loss in the first five years if States faced revenue deficits after the GST’s introduction.
- States sacrificed their constitutionally granted powers of taxation in the national interest.
GST compensation cess
- To pay the compensation to states, GST compensation cess was introduced.
- When the GST compensation cess exceeded the amount that had to be paid to States, the Central government absorbed the surplus.
- Now, the economy has slowed down dramatically and the resources raised are insufficient.
- The Centre is raising questions about whether it is legally accountable to pay compensation.
- The constitutional framework that ushered in the GST does not provide an escape clause for ‘Acts of God’.
Way forward
- As stated by the Secretary of the GST Council in the tenth meeting, the central government could raise resources by other means for compensation and this could then be recouped by continuing the cess beyond five years.
- Monetary measures are the monopoly of the central government.
- Even borrowing is more efficient and less expensive if it is undertaken by the Central government.
- As equal representatives of the citizens State governments expected the Centre to demonstrate empathy and provide them relief through the Consolidated Fund of India.
Conclusion
Central government should consider the legal provision in the GST regime and act in the spirit of cooperative federalism.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GST Compensation
Mains level: Changes in taxation after GST regime
With Centre-State friction over pending compensation payments under the Goods and Services Tax (GST) taking a new turn in the 41st GST Council to meet, the strain on the finances of states is likely to continue in the near term.
Try this question from CSP 2018:
Q.Consider the following items:
- Cereal grains hulled
- Chicken eggs cooked
- Fish processed and canned
- Newspapers containing advertising material
Which of the above items is/are exempt under GST (Goods and Services Tax)?
(a) 1 only
(b) 2 and 3 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4
What is GST?
- GST, being a consumption-based tax, would result in loss of revenue for manufacturing-heavy states.
- 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).
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.
Alternatives to prevent losses
- The input tax credit can help a producer by partially reducing GST liability by only paying the difference between the tax already paid on the raw materials of a particular good and that on the final product.
- In other words, the taxes paid on purchase (input tax) can be subtracted from the taxes paid on the final product (output tax) to reduce the final GST liability.
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.
Back2Basics:
Goods and Services Tax
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Land Bank System
Mains level: Digital land records
A prototype of the National GIS-enabled Land Bank System was e-launched by Commerce and Industry Ministry for six States based on which land can be identified for setting up industries.
Try to answer this question in short:
Q.Discuss the benefits of digitizing land records in India.
Land Bank System
- The system has been developed by the Integration of Industrial Information System (IIS) with state GIS (Geographic Information System).
- IIS portal is a GIS-enabled database of industrial clusters/areas across the states.
- On the system, more than 3,300 industrial parks across 31 states/UTs covering about 4,75,000 hectares of land have also been mapped out on the system.
- The information available on the system will include drainage, forest; raw material heat maps (horticulture, agricultural, mineral layers); multilayer of connectivity.
- IIS has adopted a committed approach towards industrial upgrading, resource optimization, and sustainability.
Various stakeholders
- The initiative has been supported by the National e-Governance Division (NeGD), National Centre of Geo-Informatics (NCoG), Invest India, Bhaskaracharya Institute for Space Applications and Geo-Informatics (BISAG), and Ministry of Electronics and Informational Technology.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Dr Kotnis and his legacy
Mains level: NA
A bronze statue of Indian doctor Dwarkanath Kotnis is set to be unveiled in China.
Try this PYQ:
Q.A recent movie titled The Man Who Knew Infinity is based on the biography of
(a) S. Ramanujan
(b) S. Chandrasekhar
(c) S. N. Bose
(d) C. V. Raman
Dr. Dwarkanath Kotnis
- He is revered in China for his contributions during the Chinese revolution headed by its founder Mao Zedong and World War II.
- He hailed from Sholapur in Maharashtra came to China in 1938 as part of a five-member team of doctors sent by the Indian National Congress to help the Chinese during World War II.
- He joined the Communist Party of China (CPC) in 1942 and died the same year at the age of 32.
- Kotnis’ medical assistance during the difficult days of the Chinese revolution was praised by Chinese leader Mao Zedong.
- His statues and memorials were also set in some of the Chinese cities in recognition of his services.
A revered personality in China
- Late Chinese leader Mao Zedong was deeply affected by his death.
- Mao wrote in his eulogy that “the army has lost a helping hand; the nation has lost a friend. Let us always bear in mind his internationalist spirit”.
- Kotnis is remembered not only as a symbol inspiring medical students to work hard, but also an eternal bond between the people of China and India.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Barn Owl
Mains level: Not Much
With a thriving rat population playing havoc with its coconut yield, the UT of Lakshadweep hires barn owls for help.
Try this PYQ:
Q.The Red Data Books published by the International Union for Conservation of Nature and Natural Resources (IUCN) contains lists of:
- Endemic plant and animal species present in the biodiversity hotspots.
- Threatened plant and animal species.
- Protected sites for conservation of nature and natural resources in various countries.
Select the correct answer using the codes given below:
(a) 1 and 3
(b) 2 only
(c) 2 and 3
(d) 3 only
Barn Owl
IUCN status: Least Concerned
- The barn owl is the most widely distributed species of owl in the world and one of the most widespread of all species of birds.
- It is found almost everywhere in the world except for the polar and desert regions, Asia north of the Himalayas, most of Indonesia, and some Pacific islands.
What is Barn?
- A barn is an agricultural building usually on farms and used for various purposes.
- It refers to structures that house livestock, including cattle and horses, as well as equipment and fodder, and often grain.
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