These Newscards correspond to the explained section of various newspapers. They become immensely important for both prelims and mains and special attention needs to be paid to them
From UPSC perspective, the following things are important :
Prelims level: South China Sea; Places in News;
Mains level: Geopolitical Conflicts; South China Sea;
Why in the News?
In recent years, maritime East Asia has witnessed escalating power struggles, with China claiming Japan-controlled Senkaku/Diaoyu Islands in the East China Sea, sparking repeated tensions.
What are the current geopolitical tensions in the East and South China Seas?
East China Sea: The main issue revolves around the Senkaku/Diaoyu Islands, claimed by both China and Japan.
Tensions have escalated through incidents like the arrest of a Chinese fishing boat captain and Japan’s nationalization of the islands in 2012. The area also witnesses Chinese Coast Guard incursions.
South China Sea: China’s claims over most of the region, backed by aggressive actions such as the creation of artificial islands and naval exercises, have escalated tensions with Vietnam, the Philippines, Malaysia, Brunei, and Taiwan.
China’s “Nine-Dash Line” claims have been rejected by international tribunals, but Beijing continues to push these claims.
USA Context: The U.S. maintains security alliances with Japan, South Korea, and the Philippines, providing military backing. Joint exercises and increased cooperation between these allies.
The formation of the “Squad” (US, Japan, Australia, and the Philippines) highlights the coordination to counterbalance China’s influence.
How do climate change and environmental factors impact storm patterns in these regions?
Storm Patterns and Rising Seas: The region is highly vulnerable to extreme weather events, including typhoons, which are becoming more intense and frequent due to climate change.
Rising sea levels and changing storm patterns threaten coastal communities, military installations, and infrastructure.
Erosion of Islands: The creation of artificial islands by China is accelerating coastal erosion and destroying coral reefs, which are critical to local marine ecosystems.
What are the implications of military activities by regional powers in the East and South China Seas?
Growing Militarization: China has rapidly expanded its military presence, including the construction of airstrips, ports, and other defense infrastructure.
The Chinese Coast Guard and maritime militias have been active in harassing the vessels of other claimant states, particularly in the South China Sea.
Challenge the US Navy: China’s military activities are seen as part of its broader strategy to challenge U.S. naval supremacy in the Indo-Pacific. This strategy also includes controlling vital sea lanes, undersea cables, and energy reserves.
How are local communities and economies affected?
Economic Disruption: China’s actions in the South China Sea, particularly around disputed fishing areas, have impacted local economies dependent on fishing.
Maritime Trade: The region is home to critical sea lanes through which a significant portion of global trade, including energy supplies, passes. Any conflict or blockade in these waters would have severe global economic ramifications.
Impact on Tourism: The increasing militarization and tension also negatively impact tourism in coastal areas.
Way forward:
Strengthening Maritime Partnerships: India should enhance its strategic maritime partnerships in the Indo-Pacific through forums like the Quad (India, U.S., Japan, and Australia) and ASEAN to ensure a free and open Indo-Pacific.
Economic and Infrastructure Diplomacy: India can leverage initiatives like SAGAR (Security and Growth for All in the Region) and enhance its economic presence by investing in infrastructure, connectivity, and capacity-building projects in Southeast Asian countries.
Mains PYQ:
Q South China Sea has assumed great geopolitical significance in the present context. Comment. (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Mains level: Impact of Climate change;
Why in the News?
The record warming of 2023-2024 is offering a clearer view of the impacts of global warming. The range of extreme events experienced globally has spanned from deadly heatwaves to devastating cyclones and floods, as well as droughts and wildfires.
Impact of Warming on Predictability:
Increased Variability: The record warming of 2023-2024 highlights the unpredictability of climate systems under global warming, complicating forecasts for natural phenomena like El Niño, monsoons, and hurricanes.
Natural Variability: Warming may extend the timescale of natural decadal variability, making it harder to distinguish between short-term fluctuations and long-term trends in climate behaviour.
Model Limitations: Despite advances, climate models are imperfect in capturing changes in dominant climate modes due to warming, leading to inconsistencies in predicting events like monsoon trends.
Types of Climate Models to forecast the weather:
General Circulation Models (GCMs): These models simulate the physics of the climate system by representing the interactions between the atmosphere, oceans, land, and ice. They divide the Earth into a three-dimensional grid and calculate climate variables like temperature and humidity in each grid cell.
Earth System Models (ESMs): An advanced subset of GCMs that includes biogeochemical cycles, allowing them to simulate interactions between climate and ecological processes, such as carbon and nitrogen cycles.
Regional Climate Models (RCMs): These focus on smaller geographic areas to provide more detailed climate projections by using outputs from GCMs as inputs for localized simulations.
Integrated Assessment Models (IAMs): These combine climate science with socioeconomic factors to analyze how human activities influence climate change and to project future emissions scenarios.
Challenges in Forecasting Extreme Weather:
Inconsistent Predictions: Predictions for extreme weather events in 2023, such as the monsoon and hurricane seasons, were less accurate, revealing the limitations of current models and observational networks.
Unforeseen Factors: Unanticipated contributions, like the impact of the Hunga Tonga volcano or wildfire-induced CO2 emissions, exacerbated warming in ways models failed to predict, illustrating the unpredictability of new factors.
Censorship Concerns: The rapid response required from social media platforms to act on content flagged as misleading within 36 hours created concerns about censorship and freedom of expression.
Future of Weather Prediction Models:
Need for Model Improvements: There is ongoing work to refine models and incorporate the latest technologies, including AI and machine learning, to improve weather prediction accuracy at hyperlocal scales.
Natural Modes and Uncertainty: The predictability of natural modes (El Niño, La Niña, IOD) may decrease with relentless warming, making future climate forecasts increasingly uncertain.
Short-Term Focus: A shift toward short-term predictions (up to a decade or two) may offer more reliable projections due to the inherent difficulty in predicting long-term scenarios under continuous global warming.
Way forward:
Enhanced Climate Models: Invest in improving climate models with cutting-edge technologies like AI, machine learning, and advanced sensors to increase the accuracy of short-term forecasts and better capture the impact of natural variability under warming.
Localized Early Warning Systems: Develop robust, hyperlocal early warning systems to better prepare for extreme weather events, focusing on disaster management and reducing vulnerabilities in high-risk communities.
From UPSC perspective, the following things are important :
Mains level: Issues related to Nuclear bombs;
Why in the News?
September 26 is recognized on the United Nations calendar as the International Day for the Total Elimination of Nuclear Weapons.
What is the current state of global nuclear disarmament efforts?
Treaty on the Prohibition of Nuclear Weapons (TPNW): The TPNW, in force since 2021, is the first legally binding international agreement that comprehensively bans nuclear weapons. As of July 2024, it has 70 states parties and 27 signatories yet to ratify, covering nearly 50% of the world’s states.
Non-Proliferation Treaty (NPT): The NPT, in effect since 1970, remains the foundational treaty aimed at preventing the spread of nuclear weapons and promoting eventual disarmament. However, it has been criticized for its limited focus on actual disarmament.
Persistent Objectors: Nuclear-armed states (such as the U.S., Russia, China, India, and Pakistan) and their allies have consistently opposed the TPNW, refusing to be bound by its provisions.
What are the key obstacles hindering further nuclear disarmament?
Nuclear Deterrence Doctrine: The belief in nuclear deterrence — the idea that possessing nuclear weapons prevents attacks — is a central justification for continued nuclear armament.
Nuclear-Weapon States’ Resistance: The nuclear-armed states, including the U.S., Russia, China, India, and others, continue to view nuclear weapons as essential to their security strategies, despite claims of disarmament commitments under the NPT.
Geopolitical Conflicts: Ongoing geopolitical tensions, such as Russia’s invasion of Ukraine, China’s rising military power, North Korea’s nuclear tests, and Iran’s uranium enrichment, have exacerbated the global nuclear threat, further impeding disarmament efforts.
Lack of Enforcement Mechanisms: The TPNW, while normatively important, lacks robust enforcement mechanisms. It depends on the voluntary commitment of states, and nuclear possessors do not face direct penalties for non-compliance.
What steps can be taken to reinvigorate the nuclear disarmament agenda? (Way forward)
Strengthening International Advocacy: Civil society, former political leaders (including NATO officials), and international organizations should continue advocating for disarmament and urging nuclear-armed states and their allies to reconsider their stance. Public pressure could create the political will for further disarmament steps.
Engagement of Non-Nuclear States: States that are non-nuclear but support the TPNW should work to expand the treaty’s footprint, encouraging more countries to ratify and actively participate in its framework. This could help isolate nuclear possessors diplomatically and morally.
Building Confidence through Arms Control Treaties: Reviving arms control agreements, such as the Comprehensive Test Ban Treaty (CTBT) and the New START treaty, would be important milestones in reducing nuclear risks.
About CTBT:
Complete Ban on Nuclear Testing: The CTBT prohibits all forms of nuclear explosions—whether for military or civilian purposes—across all environments, including underground, atmospheric, and underwater.
Robust Verification Mechanism: The treaty includes an International Monitoring System (IMS) of over 300 monitoring stations worldwide, capable of detecting nuclear tests, as well as provisions for on-site inspections to ensure compliance with the treaty’s terms.
India is not a signatory to the Comprehensive Nuclear-Test-Ban Treaty (CTBT).
Diplomatic Pressure and Dialogue: Encouraging diplomatic dialogue, especially among the major nuclear powers, could help mitigate tensions and create pathways to gradual disarmament. Leaders must explore confidence-building measures, transparency, and mutual reductions in nuclear arsenals.
From UPSC perspective, the following things are important :
Mains level: Fundamental Rights and its implication;
Why in the News?
On September 20, the Bombay High Court declared the amended IT Rules, 2021, unconstitutional for empowering the Centre’s Fact Check Unit to flag “fake or misleading” content about the government, citing vagueness.
Justice Atul Sharachchandra Chandurkar delivered the decisive ruling as the tie-breaker judge, following a split verdict by a division bench of Justices G.S. Patel and Neela Gokhale in January 2024.
Why did the Bombay High Court strike down IT Rules, 2021?
Violation of Constitutional Rights: Justice Atul Chandurkar ruled that the amended rules violated Articles 14 (right to equality) and 19 (freedom of speech and expression) of the Constitution. He characterized the terms “fake, false, or misleading” as vague and overbroad, which could lead to arbitrary enforcement by the government.
Censorship Concerns: The court emphasized that the rules amounted to censorship and lacked necessary procedural safeguards. Justice Patel’s earlier opinion highlighted that they effectively made the government a “judge in its own cause,” undermining free speech.
Chilling Effect on Intermediaries: The requirement for social media intermediaries to act on flagged content within 36 hours to retain their legal protections was seen as creating a chilling effect, discouraging platforms from hosting diverse opinions and criticisms of the government.
About Fact Check Unit:
The Fact Check Unit (FCU) under the Press Information Bureau (PIB) of the Government of India was established to combat misinformation and fake news related to government policies and initiatives.
The PIB’s FCU was established in November 2019 and was formally notified as the central government’s fact-checking body under the amended Information Technology (IT) Rules, 2021.
What did the amended rules ask of social media intermediaries?
The amended Rule 3(1)(b)(v) mandated that social media intermediaries must:
Make “reasonable efforts” to prevent users from uploading content flagged by the FCU as misinformation.
Remove such flagged content within 36 hours if they wish to maintain their “safe harbour” protection against liability for third-party content.
Supreme Court’s Intervention
Appointing Justice Chandurkar as a tie-breaker judge to provide a final ruling on the matter after petitions were filed challenging the amended rules.
Initially dismissing applications for an interim stay on the FCU’s establishment but later staying its operation until a final decision was reached regarding the constitutional validity of the rules.
Way forward:
Strengthen Procedural Safeguards: Any fact-checking mechanism should include clear, objective guidelines, and an independent review process to avoid arbitrariness and protect free speech rights under the Constitution.
Promote Transparency and Oversight: Establish a transparent, multi-stakeholder oversight body that includes civil society, legal experts, and technology professionals to ensure fair implementation and avoid misuse of content regulation powers.
From UPSC perspective, the following things are important :
Mains level: Issues related to retraction;
Why in the News?
The ‘Retraction Watch’ database reports an Indian scientist in Lucknow with 45 retractions, while a Kolkata researcher, who published 300 papers in a year, had six papers retracted.
What is retraction?
A retraction is when a scientific journal officially takes back a research paper because it contains serious mistakes or was found to be dishonest (like using fake data).
It’s like saying, “This paper shouldn’t be trusted,” to make sure other scientists don’t rely on wrong information.
What is retraction index?
The retraction index is a way to measure how often papers are retracted in a particular journal.
It helps to see the rate of retractions compared to the total number of papers published by the journal.
How It’s Calculated:
It is calculated by multiplying the number of retractions by 1,000 and dividing it by the total number of papers published in that journal during a specific time period.
What are the primary reasons for retraction?
Plagiarism: Copying or presenting someone else’s work without proper attribution.
Fabrication/Falsification: Deliberate manipulation of data, experiments, or results to present false findings.
Image Manipulation: Altering figures or graphical representations, especially in fields like biology and medicine.
Paper Mills: Fake or low-quality papers produced by organizations and sold to researchers to inflate publication counts.
Ethical Violations: Including authorship disputes, undisclosed conflicts of interest, and failure to obtain proper consent for studies.
Errors in Data: Honest mistakes in data collection, interpretation, or analysis that render the findings invalid.
How do retractions affect the credibility of scientific research?
Erosion of Trust: Scientific integrity relies on trust; retracted papers can cause scientists to lose confidence in published research.
Hindrance to Scientific Progress: Retractions delay progress, as future research may be based on faulty or retracted studies.
Impact on the Reputation of Researchers and Institutions: Scientists and institutions involved in retractions often face damage to their credibility and career prospects.
High-Impact Journals at Greater Risk: More retractions occur in high-impact journals, suggesting a vulnerability due to the pressure to publish groundbreaking work quickly.
Harm to Public Perception: High-profile retractions, especially in fields like medicine, can damage public trust in science and scientific institutions.
What is the process of retracting a paper?
Detection: Retractions are often initiated when errors or misconduct are identified through peer reviews, investigations, or by other researchers who question the validity of the work.
Investigation: The journal and, in some cases, the author’s institution will conduct an inquiry to determine whether the issues warrant retraction.
Notification: Once a decision is made, the journal issues a notice of retraction. This document typically explains why the paper is being retracted (e.g., misconduct or error).
Publication of Retraction Notice: The retraction notice is published in the journal, often linked to the original paper. The original article is marked as retracted but remains in the journal archives for transparency.
Database Update: Retractions are indexed in databases like PubMed, Retraction Watch, and others, so researchers are informed of flawed studies.
Way forward:
Strengthen Peer Review and Use AI Tools: Implement advanced AI tools to detect plagiarism, data manipulation, and image alteration during the peer review process to prevent flawed papers from being published.
Shift Focus from Quantity to Quality: Encourage institutions to prioritize the quality of research over the sheer number of publications to reduce the pressure on researchers and discourage reliance on paper mills.
From UPSC perspective, the following things are important :
Mains level: Cross-border insolvency cases;
Why in the News?
It is essential to incorporate the significance of insolvency laws into global trade discussions through both multilateral and bilateral channels.
What are the key challenges in managing cross-border insolvency cases?
Jurisdictional Conflicts: Difficulty in determining which country’s courts have jurisdiction over insolvency proceedings, especially when a company has assets and creditors in multiple countries.
Recognition of Foreign Proceedings: Some countries may not recognize foreign insolvency proceedings, leading to inconsistent outcomes.
Coordination Issues: Lack of cooperation between courts and administrators in different countries can complicate the resolution of cross-border insolvency cases.
Legal and Cultural Differences: Variations in legal systems, insolvency laws, and business practices across countries make harmonization challenging.
Enforcement of Judgments: Difficulty in enforcing insolvency-related judgments or agreements across different jurisdictions.
How does the Insolvency and Bankruptcy Code (IBC) address cross-border insolvency in India?
Limited Provisions: The IBC, 2016, has provisions for handling cross-border insolvency on a case-by-case basis through bilateral agreements, but it lacks a comprehensive framework.
Bilateral Arrangements: India’s approach currently relies on ad hoc bilateral agreements to manage cross-border insolvency cases, making the process fragmented and less efficient.
No Adoption of the UNCITRAL Model Law: Despite several recommendations by committees, India has yet to adopt the UNCITRAL Model Law on Cross-Border Insolvency, which would provide a more standardized and efficient resolution mechanism.
What international frameworks exist to facilitate cross-border insolvency resolutions?
UNCITRAL Model Law on Cross-Border Insolvency (1997): A widely recognized framework designed to facilitate cooperation between courts and administrators in different countries.
It operates on four pillars: access, recognition, cooperation, and coordination. It has been adopted by over 60 countries.
EU Insolvency Regulation: Provides a framework for handling insolvency within EU member states, facilitating the recognition of insolvency proceedings across borders within the EU.
NAFTA/US-Mexico-Canada Agreement (USMCA): Includes provisions for resolving insolvencies with cross-border implications between member countries.
Bilateral and Multilateral Trade Agreements: Some international agreements include limited provisions on cross-border insolvency, though most focus on general trade and dispute resolution, leaving a gap in addressing insolvency directly.
Way forward:
Adopt the UNCITRAL Model Law: India should expedite the adoption of the UNCITRAL Model Law on Cross-Border Insolvency to establish a standardized framework, improving cooperation, recognition, and legal certainty in international insolvency cases.
Integrate Cross-Border Insolvency in Trade Agreements: India should incorporate cross-border insolvency provisions in Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs) to ensure seamless insolvency resolution in international trade.
From UPSC perspective, the following things are important :
Mains level: Land issues in Urban;
Why in the News?
On Monday, September 24, the Karnataka High Court permitted an investigation into Chief Minister Siddaramaiah in connection with the alleged Mysore Urban Development Authority (MUDA) scam.
What was the MUDA scam case?
The Allegations: In July 2023, anti-corruption activists approached Karnataka Governor Thawarchand Gehlot, alleging that Chief Minister Siddaramaiah’s wife, Parvathi, received 14 housing sites from the Mysore Urban Development Authority (MUDA).
This was allegedly in exchange for a 3.16-acre plot of land that MUDA illegally acquired in 2021, during the tenure of the BJP-led government. The scam allegedly caused a loss of ₹55.80 crore to the state.
Governor’s Action: In response, the Governor issued a show-cause notice to Siddaramaiah and later sanctioned an investigation under the Prevention of Corruption Act, 1988 (PCA) and the Bharatiya Nyaya Sanhita, 2023.
What were the grounds for Siddaramaiah’s challenge?
Council of Ministers’ Advice: The Chief Minister argued that the Governor was bound by the Council of Ministers’ August 1, 2023 resolution, advising withdrawal of the show-cause notice.
Governor’s Discretion: Siddaramaiah contended that the Governor’s sanction was unjustified, biased, and exceeded his discretionary powers, which could only be invoked if the Council’s decision was irrational.
What did the court decide?
The Karnataka High Court upheld the Governor’s sanction for the investigation, stating that the circumstances justified the Governor’s actions under “exceptional circumstances.”
The court observed that the Governor’s decision was not made in haste but after careful consideration of the allegations and relevant facts.
The court clarified that private individuals (complainants) can seek approval to investigate public officials under the Prevention of Corruption Act, and the Governor’s approval can be granted even in such cases.
The court lifted the interim embargo on the investigation against Siddaramaiah, allowing the inquiry to continue into the alleged MUDA scam.
Conclusion: The Karnataka High Court upheld Governor Gehlot’s sanction for an investigation into the alleged MUDA scam, rejecting Siddaramaiah’s challenge. The court ruled that exceptional circumstances justified the Governor’s actions, allowing the inquiry to proceed.
From UPSC perspective, the following things are important :
Mains level: Significance of NBFC sector;
Why in the News?
During the transition to the Scale-Based Regulation (SBR) framework, the NBFC sector experienced double-digit credit growth, maintained adequate capital levels, and saw a reduction in delinquency ratios.
What is Scale-Based Regulation (SBR)?
The SBR framework was first outlined in October 2021 and became effective on October 1, 2022.
It aims to categorize NBFCs based on their size, activities, and perceived riskiness rather than merely distinguishing between systemically important and non-systemically important entities.
What are the key points presented by RBI on the resilience of the NBFC sector?
Improvement in Asset Quality: Since the introduction of the Scale-Based Regulation (SBR) framework in October 2022, the asset quality of NBFCs has improved, with lower gross non-performing asset (GNPA) ratios.
By December 2023, GNPA ratios had decreased to 2.4% for government-owned NBFCs and 6.3% for non-government NBFCs, reflecting enhanced risk management.
Double-Digit Credit Growth: The NBFC sector maintained strong credit growth throughout 2023, driven by a diversified funding base, including retail credit (gold loans, vehicle loans, and housing loans) and expanding into industrial and service sectors.
Improved Profitability: The sector witnessed a rise in profitability, as evidenced by better returns on assets (RoA) and equity (RoE).
Net NPA (NNPA) Performance: Upper layer NBFCs had lower GNPA ratios than middle layer NBFCs, but the latter maintained sufficient provisions for riskier portfolios, ensuring that their NNPA ratios were also controlled.
Compliance with SBR: Major NBFCs in the “Upper Layer” identified by the RBI under the SBR framework, such as LIC Housing Finance, Bajaj Finance, and L&T Finance, have complied or initiated steps to comply with listing requirements.
Regulatory measures taken up by the NBFC sector
Scale-Based Regulation (SBR) Framework: Introduced in October 2022, the SBR framework categorizes NBFCs into different layers based on their size, systemic importance, and risk profile. For instance, strengthen asset quality, capital requirements, and risk management.
Prompt Corrective Action (PCA) Norms: Effective from October 2024, PCA norms will apply to government-owned NBFCs. These measures aim to enhance financial discipline, focusing on capital adequacy and asset quality.
Diversification of Funding Sources: Due to rising risk weights on bank lending, NBFCs have diversified their funding base by reducing dependence on bank borrowings and expanding into secured retail credit.
Listing Compliance: Many NBFCs in the upper layer have complied or are in the process of complying with listing requirements as part of regulatory mandates.
What are the emerging risks that NBFCs need to cater? (Way forward)
Cybersecurity Risks: With the increasing use of digital platforms, NBFCs need to enhance cybersecurity measures to safeguard against evolving cyber threats.
Climate Risk: The financial impact of climate change poses a new risk. NBFCs must integrate climate-related risks into their risk management frameworks to mitigate potential disruptions.
Financial Assurance Functions: The RBI emphasizes that assurance functions like risk management, compliance, and internal audit are critical in maintaining resilience in the face of rapid changes in the financial landscape.
Evolving Regulatory Environment: As the financial sector continues to evolve, NBFCs must stay ahead of regulatory changes and ensure that their risk management practices are aligned with emerging threats and new regulations.
From UPSC perspective, the following things are important :
Prelims level: Poona Pact;
Mains level: Gandhi vs Ambedkar on Caste;
Why in the News?
On September 20, 1932, Mahatma Gandhi began a fast unto death in Yerawada Jail, Pune, to protest against the provision of separate electorates for Scheduled Castes.
Gandhi vs Ambedkar on Caste
Gandhi’s Views on Caste: Initially orthodox, Gandhi supported social prohibitions like restrictions on inter-dining and inter-marriage but later rejected untouchability, referring to untouchables as “Harijans.” However, he did not reject the institution of caste itself, as it was tied to Hindu religious practices.
Ambedkar’s Radical Approach: Ambedkar believed that to truly abolish caste, one needed to attack the divine authority of the Hindu scriptures (shastras) that justified it. He argued that reforms short of rejecting the religious basis of caste were insufficient.
Ambedkar’s strategy was to focus on lower castes achieving political power to challenge their subjugation within the Hindu social order.
Ambedkar’s Argument for Separate Electorates
Distinct Identity of Depressed Classes: Ambedkar argued that the Depressed Classes (Scheduled Castes) formed a distinct group, separate from the Hindus. Despite being part of Hindu society, they did not enjoy equal treatment and were subject to systemic oppression.
Political Machinery for Representation: Ambedkar advocated for separate electorates with a double vote system, where Scheduled Castes would vote for their own candidates as well as in the general electorate.
Protection from Majority Rule: Ambedkar warned that joint electorates would allow the Hindu majority to control the election of Dalit representatives, making it impossible for lower castes to effectively protect their interests against the tyranny of the majority.
Why Gandhi Opposed Separate Electorates
Integration of Lower Castes: Gandhi opposed separate electorates because he believed they would marginalize lower castes further.
Instead of being restricted to a limited share of seats, Gandhi thought lower castes should aim for broader participation in political leadership.
Fear of Dividing Hindu Society: Gandhi feared that separate electorates would divide Hindu society, further weakening it.
He believed this division would help the British continue their “divide and rule” policy, undermining India’s struggle for independence.
Strategic Concerns: The introduction of separate electorates for Scheduled Castes, in addition to those for Muslims, would fragment the Hindu political base, reducing the power and influence of upper-caste Hindu leadership.
Culmination of the Debate: The Poona Pact
Gandhi’s Fast: In 1932, Gandhi went on a fast unto death to oppose separate electorates, pressuring Ambedkar to concede. Ambedkar, despite his misgivings, agreed to the Poona Pact, which provided for reserved seats for Scheduled Castes but within a joint electorate.
Ambedkar’s Dissatisfaction: Ambedkar was never fully satisfied with the outcome, believing the joint electorate allowed upper-caste Hindus to nominate Dalit representatives, effectively controlling their political voice.
Conclusion: The Gandhi-Ambedkar debate on caste culminated in the Poona Pact, with Gandhi opposing separate electorates to maintain Hindu unity, while Ambedkar sought political power for lower castes. Though Ambedkar agreed, he remained dissatisfied with the compromise.
Mains PYQ:
Q Mahatma Gandhi and Dr. B R Ambedkar, despite having divergent approaches and strategies, had a common goal of amelioration of the downtrodden. Elucidate. (UPSC IAS/2015)
From UPSC perspective, the following things are important :
Mains level: Effectiveness of POCSO Act;
Why in the News?
In a recent ruling, the Supreme Court has tightened child pornography laws, declaring that viewing, possessing, or failing to report such content is punishable under the Protection of Children from Sexual Offences (POCSO) Act, regardless of whether the material is shared or transmitted.
What is the law in question?
The Supreme Court expanded the interpretation of Section 15 of the POCSO Act, which deals with “Punishment for storage of pornographic material involving child”.
In 2019, the POCSO Act was amended to introduce three connected offences under Sections 15(1), (2) and (3) with increasing grades of punishment:
Any person, who stores or possesses pornographic material involving a child, but fails to delete, destroy or report the same to the designated authority with an intention to share or transmit child pornography.
Any person, who stores or possesses such material for transmitting, propagating, displaying or distributing in any manner at any time except for reporting or use as evidence in court.
Any person, who stores or possesses such material for commercial purpose.
The court refers to these as “inchoate” offences – offences in anticipation or preparation for committing a further criminal act.
About the Case and SC’s Verdict
Case Background: The Supreme Court was dealing with a case where the Madras High Court had quashed criminal proceedings against a man who had downloaded child pornography but did not share it.
The High Court had limited its ruling to Section 14 of POCSO (using children for pornography) and excluded Section 15 (punishing possession) since no evidence of sharing existed.
Supreme Court’s Verdict:
The SC overturned the Madras High Court’s ruling, expanding the definition of “possession” of child pornography to include “constructive possession”, even without physical storage of the material.
Viewing, controlling, or exercising knowledge over such material (e.g., watching without downloading) was deemed sufficient for possession.
The SC stressed that even failing to delete or report such content implies intent to share and is punishable under Section 15(1).
Even if the accused does not have the material at the time of filing the FIR, they can still be held accountable if they had possessed it “at any point”.
How will such cases be registered?
Determination of Intention: The court held that the intention (mens rea) of the accused will be determined based on the circumstances, such as how the material was stored or possessed and why it was not reported or destroyed.
Actions like storing, not deleting, or failing to report child pornography can be used as evidence of intent to share or distribute.
Role of Police: The police must not limit their investigation to only one sub-section of Section 15. Even if a specific offence isn’t made out, the police should explore the possibility of other violations under different sub-sections.
Reporting Obligation: The court emphasized the mandatory reporting of child pornography, with penalties for failing to report starting from a fine of Rs. 5,000 and increasing for repeat offences.Failure to report, even after merely viewing child pornographic material, can result in legal consequences.
Conclusion: The Supreme Court’s ruling on the POCSO Act broadened the definition of possession, emphasizing that failure to delete or report child pornography constitutes intent to share, with strict penalties for non-compliance, underscoring the obligation to report such content.
From UPSC perspective, the following things are important :
Mains level: Justice system in India;
Why in the News?
The perception of justice is as vital as justice itself, with unelected constitutional institutions expected to uphold transparency and exercise restraint in engaging with elected authorities.
Relationship between Public Perception and the Actual Functioning of the Justice System:
Role of Perception in Justice: Perception of justice is critical because it shapes public trust in institutions. Even if the justice system functions properly, if it is perceived as biased or ineffective, it erodes confidence. The system must not only deliver justice but also be seen as just.
Moral Authority: When unelected constitutional bodies, like the judiciary, demonstrate transparency and accountability, they build moral authority.
Perception vs Reality: Public perception can sometimes be more influential than the actual functioning of the system. Institutions like the judiciary must work to balance delivering justice and managing public perception to maintain credibility.
How Do Systemic Biases Affect Perceptions of Justice Among Marginalized Communities:
Historical and Structural Biases: These perceptions arise when the system disproportionately impacts certain communities, whether through discriminatory practices or unequal access to legal representation.
Erosion of Trust: When systemic biases are evident, marginalized groups may become cynical or disengaged from legal processes, believing that the system is not designed to serve their interests. This creates a widening gap between these communities and the justice system.
Impact on Public Discourse: Systemic biases fuel narratives that the justice system is rigged or unfair. In the long term, this can lead to public apathy, where marginalized groups may stop engaging with the system, assuming that it will not provide them justice.
Broader Reflections on Democracy and Institutions:
Information and Discourse: The explosion of media and social media has blurred the lines between personality-driven and issue-based politics. This shift has led to heightened cynicism, where the focus on individuals overshadows serious discourse on public issues.
Restoring Institutional Integrity: For democracies to thrive, institutions must maintain boundaries defined by constitutional mandates. When constitutional organs exhibit higher standards of probity and transparency, they inspire trust, which is vital for democracy.
Responsibility of Constitutional Institutions: Independent constitutional bodies, like the judiciary, are expected to rise above partisan politics and protect democratic values.
The example of T.N. Seshan, former Chief Election Commissioner of India, exemplifies how individuals can enhance institutional integrity by adhering to constitutional principles and maintaining public confidence.
Conclusion:
The functioning of the justice system, while critical, is deeply influenced by public perception, especially among marginalized communities. Systemic biases create barriers to justice for these communities, reinforcing negative perceptions. Constitutional organs must hold themselves to higher standards, as public trust in these institutions is vital for the health of democracy.
From UPSC perspective, the following things are important :
Mains level: Women's challenges
Why in the News?
The tragic death of 26-year-old Chartered Accountant Anna Sebastian Perayil in Pune has sparked debate about professional workload in India, with her mother citing “work stress” as the cause.
What does the ILO data observe about Professional Indian women?
Longest Working Hours Globally: Indian women in professions like information technology (IT), media, and professional, scientific, and technical fields work the highest number of hours globally. Women in IT and media jobs worked 56.5 hours weekly, while women in professional, scientific, and technical fields worked 53.2 hours per week in 2023.
Young Professional Women Work More: Younger women, especially those aged 15-24, work even longer hours. For instance, young women in IT and media work 57 hours per week, and those in professional, scientific, and technical fields work 55 hours per week.
Gender Imbalance in Workforce: Indian women are underrepresented in these sectors. Only 8.5% of the Indian workforce in professional, scientific, and technical jobs and 20% in information and communication jobs are women. This low percentage is among the lowest globally.
Global Comparison: In countries like Germany, women in similar IT and media jobs work far fewer hours (32 hours weekly). Russia reports 40 hours for the same sector, highlighting how disproportionately longer Indian women work.
Major Challenges in Indian Society:
Workload Stress: The tragic death of Anna Sebastian highlights the intense workload stress that young professionals, especially women, face. High demands and long working hours can severely affect mental and physical health.
Male-Dominated Workspaces: Women in professional fields face challenges working in male-dominated environments, which can result in increased pressure, lack of support, and issues of gender equity.
Systemic Gender Inequality: Despite rising participation in the workforce, the gender imbalance in professional sectors reflects deeper societal and structural inequalities. Women continue to face barriers to career advancement, equal representation, and fair treatment.
Lack of Support: The absence of adequate organizational support during personal tragedies (as indicated by Anna’s case) points to a lack of empathy and a toxic work culture in certain professional settings.
Government Initiatives:
Women in STEM (Science, Technology, Engineering, and Mathematics): The Indian government has launched several initiatives to encourage women’s participation in technical and scientific fields, including scholarships, mentorship programs, and awareness campaigns (e.g., GATI initiative).
Maternity Benefits: The Maternity Benefit (Amendment) Act, 2017, increased paid maternity leave for women from 12 weeks to 26 weeks, aimed at helping women balance work and family life.
Gender Equality Programs: Initiatives like Beti Bachao Beti Padhao promote girls’ education and empowerment, aiming to address the long-term gender imbalance in professional spaces.
Skill Development Initiatives: Government programs like Skill India and Digital India aim to provide technical and vocational training to women, helping bridge the gender gap in high-skill industries such as IT and professional services.
Way forward:
Work-Life Balance Reforms: Enforce stricter labour regulations on working hours and promote flexible work arrangements to reduce burnout, particularly for young professionals in high-demand sectors.
Inclusive Workplaces: Strengthen gender diversity and equity initiatives within male-dominated industries by fostering supportive work environments, mentorship programs, and leadership opportunities for women.
Mains PYQ:
Q What are the continued challenges for Women in India against time and space? (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Mains level: Challenges to SCs;
Why in the News?
According to a recent government report, 97.7% of atrocities against Scheduled Castes in 2022 were concentrated in 13 states, with Uttar Pradesh, Rajasthan, and Madhya Pradesh reporting the highest numbers.
What are the finding as per report?
Concentration of Cases: Approximately 97.7% of atrocities against Scheduled Castes (SCs) were reported from 13 states, with Uttar Pradesh, Rajasthan, and Madhya Pradesh having the highest incidents. For Scheduled Tribes (STs), 98.91% of cases were also concentrated in these states.
Statistics on Atrocities:
For SCs, there were 51,656 reported cases, with Uttar Pradesh alone accounting for 23.78% (12,287 cases).
Other significant contributors included Rajasthan (8,651 cases, 16.75%) and Madhya Pradesh (7,732 cases, 14.97%).
For STs, a total of 9,735 cases were registered, with Madhya Pradesh reporting the highest at 30.61% (2,979 cases).
Investigation and Charge-Sheeting:
Among SC-related cases, 60.38% resulted in charge sheets, while 14.78% concluded with final reports due to reasons like false claims or lack of evidence.
For ST-related cases, the charge-sheeting rate was slightly higher at 63.32%, with similar conclusions for final reports.
Conviction Rates: The conviction rate for atrocities under the Act has declined to 32.4% in 2022 from 39.2% in 2020, indicating a concerning trend in legal outcomes for victims.
Special Courts and Infrastructure: Out of 498 districts, only 194 had established special courts to expedite trials related to these cases, highlighting a significant gap in judicial infrastructure.
What are the protection for SCs in Indian law?
The Indian legal framework provides several protections for SCs under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989:
Prohibition of Atrocities: The Act defines various forms of atrocities against SC members, including social exclusion, bonded labor, forced manual scavenging, and physical violence.
Legal Recourse: Victims can report crimes to the police or the National Commission for Scheduled Castes (NCSC), which has the authority to investigate complaints and ensure legal protections are enforced.
Punishments for Offenders: Offenders can face imprisonment ranging from six months to five years along with fines for committing atrocities against SC members.
What are the intiative taken by government to empower SCs in economical and social term?
Reservation Policies: The Constitution mandates reservations for SCs in government jobs and educational institutions to enhance their representation and opportunities.
Financial Assistance Programs: Various schemes provide financial support for self-employment and skill development among SC communities to improve their economic status. Example is the National Scheduled Castes Finance and Development Corporation (NSFDC).
Establishment of Protection Cells: SC/ST Protection Cells have been set up across states to address grievances and ensure the enforcement of protective laws.For instance, in Karnataka, these cells have been actively involved in monitoring atrocities against SCs/STs and conducting surveys in atrocity-prone areas
Awareness Campaigns and Training Programs: The government conducts awareness campaigns to educate SC communities about their rights and available legal protections. For example,“Bharat ke Sathi” campaign.
Way forward:
Strengthening Legal and Judicial Mechanisms: Establish more special courts and fast-track mechanisms in all districts to ensure timely justice for victims of atrocities, alongside improving conviction rates through effective investigation and prosecution.
Empowering SC Communities Through Socio-Economic Initiatives: Expand skill development, financial assistance programs, and awareness campaigns to improve economic independence and social integration of SC communities, ensuring better enforcement of their rights and protections.
Mains PYQ:
Q Whether the National Commission for Scheduled Castes (NCSC) can enforce the implementation of constitutional reservation for the Scheduled Castes in the religious minority institutions? Examine. (UPSC IAS/2018)
From UPSC perspective, the following things are important :
Mains level: Significance of QUAD;
Why in the News?
The recent summit of the Quad leaders resulted in several significant initiatives aimed at enhancing cooperation among the member countries—India, the United States, Australia, and Japan.
What are the initiatives taken by QUAD?
Quad Cancer Moonshot: This initiative focuses on combating cervical cancer, with India committing $10 million for screening efforts. The Serum Institute of India and Gavi aim to provide up to 40 million vaccines for the region, pending regulatory approvals.
Quad-at-Sea Ship Observer Mission: Scheduled for 2025, this mission aims to enhance interoperability and maritime safety among Quad nations.
Logistics Network Pilot Project: This project will facilitate the sharing of airlift capacity among Quad countries to support disaster response efforts across the region.
Maritime Initiative for Training in the Indo-Pacific (MAITRI): This initiative focuses on training Quad partners to monitor and secure their waters, enforce laws, and deter unlawful behavior. India is set to host the first MAITRI workshop in 2025.
Maritime Legal Dialogue: A new dialogue has been launched to uphold a rules-based order in maritime operations, condemning aggressive actions, particularly those related to China.
What is MAITRI?
MAITRI, or Maritime Initiative for Training in the Indo-Pacific, is a program designed to enhance the maritime capabilities of Quad partners.
Its implications include:
Capacity Building: By training personnel from partner nations, MAITRI aims to improve their ability to monitor and secure their maritime territories effectively.
Enhanced Cooperation: The initiative fosters closer collaboration among Quad countries in maritime security, which is crucial given rising tensions in regions like the South China Sea.
Regional Stability: By equipping nations with better tools and knowledge to enforce maritime laws and deter unlawful activities, MAITRI contributes to greater stability in the Indo-Pacific region.
What is the effectiveness of QUAD in recent times?
Condemnation of Aggression: The Quad has taken a strong stance against aggression in the East and South China Seas, signaling unity among member states regarding regional security concerns.
Support for Ukraine: The leaders expressed deep concern over the war in Ukraine and reiterated their commitment to international law, showcasing a collective approach to global issues beyond regional security.
Expanded Fellowship Programs: The Quad fellowship program has been expanded to include additional scholarships for STEM education, reflecting a commitment to educational collaboration and capacity building in science and technology.
Focus on Health Initiatives: The launch of the Quad Cancer Moonshot demonstrates a proactive approach towards public health challenges, particularly in addressing cervical cancer through international cooperation.
Way forward:
Strengthen Maritime Security Collaboration: Quad nations should deepen cooperation through initiatives like MAITRI and the Quad-at-Sea mission to enhance maritime security, law enforcement, and interoperability in the Indo-Pacific, ensuring stability amidst regional tensions.
Expand Multilateral Health and Development Programs: Building on the success of initiatives like the Quad Cancer Moonshot, the Quad should further invest in collaborative healthcare, disaster response, and capacity-building projects to address pressing global challenges and strengthen resilience across member states.
Mains PYQ:
Q Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (UPSC IAS/2020)
From UPSC perspective, the following things are important :
Mains level: Food Processing Industry;
Why in the News?
Prime Minister Narendra Modi stated on Thursday that over the past decade, India has implemented “comprehensive” reforms to revolutionize the food-processing sector.
What are the steps taken by Govt in food processing industry in India?
Priority Sector Lending: In April 2015, food and agro-based processing units were included as agricultural activities under the Priority Sector Lending norms, facilitating easier access to credit for these businesses.
FDI Policies: The government allows 100% Foreign Direct Investment (FDI) under the automatic route for the food processing sector, encouraging foreign investment and technological transfer.
Special Food Processing Fund: A fund of ₹2,000 crore was established with NABARD to support food processing projects and infrastructure development.
Regulatory Reforms: The Food Safety and Standards Authority of India (FSSAI) shifted from product-by-product approvals to an ingredient-based approval process in 2016, simplifying compliance for businesses.
Infrastructure Development: Initiatives such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) aim to create a robust infrastructure for food processing through cold storage facilities, processing units, and logistics support.
Status of food processing industries in India
Economic Contribution: The sector accounts for approximately 13% of India’s total exports and 6% of industrial investment. It is expected to generate around 9 million jobs by 2024.
Growth Rate: The industry has been growing at an average annual rate of about 11.18% over recent years, indicating significant potential for expansion.
Market Share: Despite being one of the largest producers of agricultural commodities, India’s food processing sector represents only about 10% of total food production.
What are the still challenges present in food processing industry in India?
Inadequate Infrastructure: A lack of cold storage and transportation facilities leads to over 30% post-harvest losses.
Fragmented Supply Chains: The supply chain is highly fragmented, causing inefficiencies and increased costs due to poor connectivity and coordination among stakeholders.
Regulatory Complexities: The industry is burdened by a complex web of regulations that can hinder business operations and compliance efforts.
Lack of Skilled Labor: There is a significant shortage of skilled professionals in areas such as food technology and quality control, which hampers innovation and adherence to safety standards.
Limited Technology Adoption: Many processors still rely on outdated technologies, which affects productivity and product quality. High costs and lack of technical expertise further inhibit technological advancements.
What should be done by Govt to resolve these challenges? (Way forward)
Infrastructure Investment: Increase investments in cold chain logistics and transportation infrastructure to minimize post-harvest losses and improve supply chain efficiency.
Financial Support Mechanisms: Facilitate easier access to finance through specialized loans for small and medium enterprises (SMEs) in the food processing sector.
Skill Development Programs: Enhance vocational training initiatives focused on food technology and safety management.
Regulatory Simplification: Streamline existing regulations to reduce bureaucratic hurdles. A unified regulatory framework could help clarify compliance requirements and foster a more conducive environment for business operations.
Promote R&D Investment: Encourage investment in research and development to foster innovation within the sector.
Mains PYQ:
Q Elaborate the policy taken by the Government of India to meet the challenges of the food processing sector. (UPSC IAS/2019)
From UPSC perspective, the following things are important :
Prelims level: PM-AASHA scheme;
Mains level: Significance of PM-AASHA;
Why in the News?
The government has approved the extension of the PM-AASHA scheme, allocating ₹35,000 crore, to ensure farmers receive better prices for their produce and to regulate price fluctuations of essential commodities for consumers.
What is PM-AASHA?
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) is an umbrella scheme launched by the Government of India in September 2018, aimed at ensuring remunerative prices for farmers’ produce. It integrates various existing schemes to provide a comprehensive approach to price support, including:
Price Support Scheme (PSS): Physical procurement of specific crops by central agencies.
Price Deficiency Payment Scheme (PDPS): Direct payments to farmers for the difference between the Minimum Support Price (MSP) and market prices.
Pilot of Private Procurement & Stockist Scheme (PPPS): Involvement of private players in crop procurement.
The scheme has been extended until 2025-26 with a financial outlay of ₹35,000 crore to enhance its effectiveness and reach.
What are the implications of PM-AASHA?
Income Security: By ensuring MSP, PM-AASHA aims to stabilize farmers’ incomes and protect them from price fluctuations in the market.
Increased Production: The assurance of remunerative prices is expected to encourage farmers to increase production, particularly in pulses and oilseeds, which have historically been underproduced.
Market Stability: The scheme helps regulate prices of essential commodities, making them affordable for consumers while ensuring fair compensation for producers.
Strengthened Procurement Mechanism: The integration of various schemes under PM-AASHA enhances the overall procurement process, making it more efficient and transparent.
What are the issues related to MSP?
Limited Coverage: MSP is primarily applicable to a few crops like wheat and rice, leaving many farmers without guaranteed prices for their produce.
Inefficient Procurement Infrastructure: The existing infrastructure for procurement is inadequate, leading to delays and inefficiencies that affect farmers’ ability to sell their produce at MSP.
Lack of Awareness: Many farmers are unaware of their rights regarding MSP or how to access these benefits effectively.
Regional Disparities: There are significant regional disparities in the implementation of MSP. States like Punjab and Haryana benefit more from MSP due to better procurement systems, while farmers in other states may struggle to access these benefits.
Market Distortions: The MSP system leads to market distortions, encouraging overproduction of certain crops while neglecting others.
What should be done to resolve the issues related to MSP?
Expand MSP Coverage: The government should consider extending MSP to a wider range of crops, particularly those that are crucial for food security and farmer livelihoods.
Enhance Procurement Infrastructure: Investments should be made in developing better procurement facilities, including storage and transportation systems, especially in rural areas.
Increase Awareness Campaigns: Implementing educational programs for farmers about their rights regarding MSP and how they can benefit from it would empower them significantly.
Mains PYQ:
Q What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low income trap? (UPSC IAS/2016)
Explained | Polity | Mains Paper 2: Indian Constitution - historical underpinnings, evolution, features, amendments, significant provisions and basic structure
Note4Students
From UPSC perspective, the following things are important :
Mains level: IT Rules 2023;
Why in the News?
The Bombay High Court on Friday struck down the amended IT Rules, 2023, which allowed the Centre to establish a fact-check unit for monitoring government-related misinformation.
Background of the Case
In April 2023, the Ministry of Electronics and IT (MEiTY) amended the Information Technology (IT) Rules, 2021, to establish a Fact Check Unit (FCU) aimed at identifying “fake, false, and misleading” information about the Central government on social media platforms.
Reason Behind the Strike Down
Violation of Fundamental Right: Justice Chandurkar struck down the amended IT Rules 2023 on grounds that they violated Articles 14 (right to equality), 19 (freedom of speech and expression), and 19(1)(g) (freedom to practice any profession) of the Constitution.
Lack of clear defination: The terms “fake, false and misleading” were deemed vague due to the absence of clear definitions, leading to potential misuse and a chilling effect on intermediaries’ operations.
The ruling emphasized that the lack of clarity in the rules could lead to arbitrary censorship by the government, undermining democratic principles.
What are the IT Rules 2023?
The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 empower the government to mandate social media platforms like Facebook, Twitter, Instagram, and YouTube to remove content deemed “fake, false or misleading” regarding government affairs.
The Fact Check Unit (FCU) was designated as the authority to identify such content. If intermediaries failed to comply with its directives, they risked losing their safe harbour status under Section 79 of the IT Act, 2000.
The implications of FCU:
Potential censorship of political discourse and criticism.
Increased pressure on social media platforms to comply with government directives.
A risk of undermining independent journalism and fact-checking efforts by civil society organizations.
Way forward:
Clear Definitions and Safeguards: Introduce precise definitions for terms like “fake, false, and misleading” and establish an independent oversight mechanism to prevent arbitrary censorship, ensuring the protection of free speech and democratic values.
Strengthen Accountability: Encourage collaboration between the government, civil society, and tech platforms to create transparent and accountable fact-checking processes while protecting intermediaries’ safe harbour status and upholding freedom of expression.
From UPSC perspective, the following things are important :
Prelims level: FATF, Mutual Evaluation; Grey and Black Lists
Mains level: Money laundering challenges in India;
Why in the News?
The FATF placed India in the “regular follow-up” category for having an “effective” anti-money laundering and counter-terror financing system but highlighted the need for significant improvements in prosecuting such cases.
Key Highlights of the FATF Mutual Evaluation Report on India:
“Regular Follow-up” Category: India has been placed in the “regular follow-up” category, signifying that its system for combating money laundering and terror financing is effective.
Financial institutions need better risk profiling of customers, and the Ministry of Corporate Affairs (MCA) registry needs improved monitoring for accurate ownership information.
Money Laundering Risks: The primary sources of money laundering in India come from fraud, cyber-enabled fraud, corruption, and drug trafficking.
Terror threats are mainly linked to Islamic State or al-Qaeda groups in Jammu and Kashmir.
Non-Profit Organisations (NPOs): India should strengthen measures to prevent abuse of the NPO sector for terror financing, and enhance outreach to NPOs at risk.
Improvements in Sanctions Framework: India needs to improve its targeted financial sanctions framework to ensure the timely freezing of funds and assets related to terror financing.
Domestic Politically Exposed Persons (PEPs): The report urged India to define domestic PEPs under its anti-money laundering laws and improve identification and risk-based measures related to them.
Delay in prosecution: The report noted delays in prosecution due to review petitions are still pending, which delays the resolution of cases under the PMLA.
Challenges faced by the Indian Government:
Prosecution and Conviction Delays: Despite an increase in investigations, the number of prosecutions and convictions remains low, with significant delays in concluding trials, especially under the PMLA.
Constitutionality Issues: Legal challenges to the constitutionality of the PMLA between 2014-2022 disrupted the momentum in terror financing and money laundering prosecutions.
Risk Profiling of Financial Customers: There is a need for better risk profiling of customers in financial institutions to address money laundering more effectively.
Inaccurate Ownership Information: Ensuring accurate owner information in the Ministry of Corporate Affairs (MCA) registry remains a challenge, especially concerning investments from tax havens.
Non-Profit Organisations: Ensuring that non-profits are not abused for terror financing requires better coordination and focused outreach by authorities.
Lack of Definition for Domestic PEPs: While India has defined foreign PEPs, the absence of a clear definition for domestic PEPs under PMLA creates a gap in the anti-money laundering framework.
Fast-Tracking Trials: The need to fast-track trials in money laundering and terror financing cases is recognized, but progress in addressing this challenge remains slow.
Way Forward:
Strengthen Legal and Institutional Framework: India should establish clear definitions for domestic Politically Exposed Persons (PEPs) under anti-money laundering laws and enhance targeted financial sanctions to ensure timely asset freezing.
Enhance Risk Management and Monitoring: Financial institutions should improve risk profiling and implement stricter Know Your Customer (KYC) processes, while the Ministry of Corporate Affairs should ensure accurate ownership data, especially for investments from tax havens.
Mains PYQ:
Q Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Mains level: Implications of Global Markets on India; Implication of interest rate;
Why in the News?
The United States Federal Reserve, responsible for the country’s monetary policy, announced on Wednesday that it will lower its key interest rate, called the Federal Funds Rate, by 0.5%, or 50 basis points.
Why did the Fed cut interest rates?
The Federal Reserve cut the benchmark interest rate by 50 basis points to address rising unemployment concerns while inflation was stabilizing.
After a series of aggressive rate hikes to counter inflation that surged due to post-COVID recovery and the Russia-Ukraine war, inflation began to moderate, nearing the Fed’s target of 2%.
Rising unemployment data signaled that the restrictive monetary policy might harm the labor market, prompting the Fed to act.
Will the US economy achieve a soft landing?
Optimistic Projections: Despite earlier predictions that high inflation would lead to a recession, the Fed’s strategy may succeed in achieving a soft landing, reducing inflation without crashing the economy.
GDP Growth: The Summary of Economic Projections (SEP) estimates GDP growth to remain around 2% for the next few years, indicating a stable economy.
Unemployment: While the unemployment rate has risen slightly to 4.4%, it remains manageable, with expectations of improvement.
Risks: Potential policy shifts, especially related to the upcoming presidential election, could disrupt the economic outlook, particularly if trade tariffs are imposed.
How will India be affected?
Increased Foreign Investments: Lower US interest rates could encourage foreign investors to borrow in the US and invest in India through stocks, bonds, or foreign direct investment (FDI), benefiting capital inflow.
Rupee Strengthening: With falling US interest rates, the US dollar may weaken against the Indian rupee, potentially strengthening the rupee. This would negatively affect Indian exporters but benefit importers.
RBI’s Interest Rate Decisions: While the Fed’s rate cuts influence global markets, India’s central bank, the RBI, may not directly follow suit due to differing inflation targets and mandates. The RBI prioritizes inflation control and GDP growth over unemployment figures.
Way forward:
Encourage Capital Inflows: India should take advantage of lower US interest rates by attracting foreign investments through improved ease of doing business, fostering growth in key sectors like infrastructure, technology, and manufacturing.
Maintain Monetary Stability: The RBI should carefully assess global trends but prioritize domestic conditions when adjusting interest rates, focusing on inflation control, financial stability, and sustained GDP growth.
Mains PYQ:
Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Prelims level: About INCOIS;
Mains level: Blue economy;
Why in the News?
INCOIS unveiled an ‘Integrated Ocean Energy Atlas’ for India’s EEZ, highlighting vast marine energy potential from solar, wind, waves, tides, currents, and thermal resources.
About INCOIS:
The Indian National Centre for Ocean Information Services (INCOIS) is an autonomous body established in 1999 under the Ministry of Earth Sciences (MoES) in India.
Its primary mission is to provide ocean data, information, and advisory services to various stakeholders, including society, industry, government, and the scientific community through sustained ocean observations.
Key Features of the Integrated Ocean Energy Atlas
The Atlas encompasses marine meteorological energy sources like solar and wind, and hydrological energy forms such as waves, tides, currents, ocean thermal, and salinity gradients within India’s EEZ.
It identifies areas with high potential for energy generation and will serve as a reference for policymakers, industry and researchers for harnessing these rich energy resources.
INCOIS prepared the annual, monthly, and daily energy estimates of ocean energy components that can be visualised through a WebGIS interface at 5 km grid resolution.
Significant potential of the Indian Exclusive Economic Zone (EEZ)
INCOIS has estimated integrated ocean energy of approximately 9.2 lakh TWh per annum within the EEZ of India.
The vast coastline of over 7,000 km and the EEZ covering up to 220 km from the coast offers ample scope for generating energy from blue renewable sources like tidal waves, currents, solar and wind.
What India can learn from this Report? (Way forward)
The Atlas provides a blueprint for India to tap into its vast untapped ocean energy resources to meet its growing energy demands in a sustainable manner.
It offers estimated values of renewable energy that can be generated from individual or integrated blue renewable sources at potential sites along the coast
The detailed mapping of energy potential at a granular 5 km grid level can help industries plan and make informed decisions for developing offshore renewable energy projects.
Collaborating with industrial partners and public sector companies to harness energy at high-potential zones identified in the Atlas can accelerate the adoption of marine energy technologies.
The Atlas can serve as a model for other countries in the Indian Ocean region to assess their blue energy reserves and promote regional cooperation in harnessing ocean energy resources.
Mains PYQ:
Q Describe the benefits of deriving electric energy from sunlight in contrast to the conventional energy generation. What are the initiatives offered by our government for this purpose? (UPSC IAS/2020)
