FDI in Indian economy

How to read India’s Balance of Payments?  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Balance of Payment; Current Account deficit; Capital Account Deficit;

Mains level: Impact of BOP on Indian economy;

 Why in the news? 

India’s current account showed a surplus in Q4 of 2023-24. However, current account surpluses are not always beneficial, and deficits are not inherently detrimental.

Latest Data from the Reserve Bank of India (RBI)

  • Current Account Surplus: India registered a current account surplus during the fourth quarter (Jan-Mar) of the 2023-24 financial year, marking the first surplus in 11 quarters.
  • Quarterly vs. Annual Data: Despite the Q4 surplus, the current account balance for the entire FY2023-24 remained in deficit, indicating underlying economic trends and demands.

What is Balance of Payments (BoP)?

  • The BoP is a ledger of a country’s transactions with the rest of the world, recording all monetary transactions between residents of a country and the rest of the world.
  • It shows the amount of money flowing into and out of the country, indicating the relative demand for the rupee compared to foreign currencies (usually in dollar terms).

Constituents of the BoP

The BoP has two main accounts: the Current Account and the Capital Account.

  • Current Account: It covers the trade in goods (exports and imports), trade in services (transportation, tourism, licensing, etc.), Income (wages, interest, dividends, etc.), and current transfers (remittances, foreign aid, etc.).
    • Trade of Goods (Merchandise Account): Records export and import of physical goods. A trade deficit occurs when imports exceed exports.
    • Invisibles of Trade: Includes services (banking, insurance, IT, tourism), transfers (remittances), and income (earnings from investments). These are transactions not visible like physical goods.
    • Net Balance: The sum of the merchandise trade and invisible trade determines the current account balance. Q4 showed a surplus in the current account due to a surplus in invisible despite a trade deficit.
  • Capital Account: It covers debt forgiveness, migrants’ transfers of financial assets, taxes on gifts and inheritances, and ownership transfers of fixed assets.
    • Investments: Captures transactions related to investments such as Foreign Direct Investment (FDI) and Foreign Institutional Investments (FII).
    • Net Balance: Q4 showed a net surplus of $25 billion in the capital account.

Impact on the Indian Economy: 

  • Exchange Rate Stability: The current account surplus in Q4 helped stabilize the exchange rate of the rupee. By absorbing excess dollars, the Reserve Bank of India (RBI) prevented excessive appreciation of the rupee, which helps maintain the competitiveness of Indian exports.
  • Improved Sovereign Ratings: A current account surplus can positively impact India’s sovereign credit ratings, as it indicates stronger external financial health and reduces reliance on foreign borrowing.
  • Foreign Exchange Reserves: The surplus contributed to an increase in India’s foreign exchange reserves, enhancing the country’s ability to manage external shocks and providing a buffer against global economic uncertainties.
  • Investment Climate: A surplus in the capital account, driven by Foreign Direct Investment (FDI) and Foreign Institutional Investments (FII), indicates investor confidence in the Indian economy, potentially leading to more robust economic growth and development.
  • Economic Health Indicators: Despite the Q4 surplus, the annual current account deficit suggests robust domestic demand and investment needs. This aligns with a growing economy that requires imports of capital goods to enhance production capacity and future export potential.

Way forward: 

  • Enhance Export Competitiveness: India should focus on boosting its export sector by diversifying export products and markets, improving product quality, and providing incentives for export-oriented industries.
  • Promote Sustainable Foreign Investment: Encouraging sustainable and long-term foreign investments, particularly in sectors like manufacturing, technology, and renewable energy, can strengthen the capital account. 

Mains PYQ: 

Q Craze for gold in Indian has led to surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization scheme. (UPSC IAS/2015)

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Indigenous HPV vaccine, the rhetoric and the reality

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About human papilloma virus (HPV)

Mains level: Present trends of cervical cancer prevalence in India and the Globe

Why in the news?

Recent discourse suggests HPV vaccination prevents cervical cancer, but evidence linking HPV to cancer is inconclusive and most infected individuals don’t develop cancer, raising doubts about vaccine necessity.

What is Cervical Cancer?

Cervical cancer is a type of cancer that starts in the cells lining the cervix, which is the lower part of the uterus that connects to the vagina. It is usually a slow-growing cancer that may not have symptoms in its early stages.

Present  trends of cervical cancer prevalence in India and the Globe                

  • Global Trends: Cervical cancer is the fourth most common cancer among women globally, with an estimated 604,000 new cases and 342,000 deaths reported in 2020. 
    • Mortality rates vary widely by region, with the highest rates observed in low- and middle-income countries due to limited access to screening and treatment.
  • Trends in India: In India, cervical cancer is the second most common cancer among women aged 15-44 years. It accounts for approximately 17% of all female cancer deaths in the country, with over 97,000 new cases reported annually.

 

Recent debate – How does vaccination against HPV prevent cervical cancer and consequent death?                                                       

  • Efficacy Against HPV Infection and Cervical Cancer: HPV vaccines target high-risk HPV types, notably types 16 and 18, which are responsible for a significant proportion of cervical cancer cases worldwide. 
    • Clinical trials and real-world data consistently demonstrate the effectiveness of HPV vaccines in reducing HPV infection rates and preventing cervical cancer.
  • Public Health Impact and Benefits: Countries with high HPV vaccination coverage have observed significant declines in HPV infection rates and cervical cancer incidence among vaccinated populations. 
    • Vaccination programs aim to achieve herd immunity, thereby reducing overall transmission of HPV and protecting unvaccinated individuals.
  • Debate and Challenges: Debate surrounds the universal versus selective vaccination strategies, with considerations on cost-effectiveness, accessibility, and cultural acceptance.
    • Challenges include vaccine hesitancy, particularly in some regions, as well as affordability and logistical barriers to widespread vaccination coverage.

Challenges Prevalent in Vaccine Manufacturing    

  • Complex Manufacturing Processes: Vaccine manufacturing involves complex biological processes and stringent quality control measures. 
    • Developing and scaling up production requires specialized facilities and skilled personnel, which can be costly and time-consuming to establish.
  • High Regulatory Standards: Vaccines are subject to rigorous regulatory scrutiny to ensure safety, efficacy, and consistency. 
    • Meeting regulatory requirements in multiple jurisdictions adds complexity and may delay the approval and market entry of new vaccines.
  • Supply Chain and Distribution: Maintaining a reliable supply chain for vaccine components and ensuring cold chain storage and distribution are critical challenges. 
    • This becomes even more pronounced in resource-constrained settings or during global health emergencies where demand surges.

Its Impact on India                     

  • Delayed Access to Affordable Vaccines: India’s capability to produce vaccines at scale is hindered by stringent patent laws and complex regulatory requirements. 
    • This delays the availability of affordable vaccines domestically, impacting public health initiatives and access for vulnerable populations.
  • Economic and Health Implications: High costs associated with vaccine development and production limit affordability and accessibility, exacerbating healthcare inequalities. 
    • This affects India’s ability to address preventable diseases effectively, impacting public health outcomes and economic productivity.

Unavailability of Competing Vaccines and Future Scope

  • Lack of Market Competition: Despite the expiration of earlier patents, there is a notable absence of competing HPV vaccines from domestic manufacturers in India. 
    • This limits options for consumers and healthcare providers, potentially leading to higher prices and reduced accessibility, particularly in the private market.
  • Potential for Future Development: Several Indian biotech companies had announced plans to develop HPV vaccines, indicating a future scope for competition and potentially lower prices. 
    • However, these initiatives have not materialized into market-ready products, highlighting challenges in vaccine development and commercialization in India’s regulatory and economic environment.

Way forward: 

  • Promote Research and Development Incentives: Encourage and support Indian biotech companies through research grants, tax incentives, and streamlined regulatory pathways for HPV vaccine development.  
  • Enhance Public-Private Partnerships: Foster collaborations between government entities, academic institutions, and private-sector vaccine manufacturers to improve vaccine accessibility and affordability. 

Mains PYQ: 

Q What are the research and developmental achievements in applied biotechnology? How will these achievements help to uplift the poorer sections of the society? (UPSC IAS/2021)

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Women Safety Issues – Marital Rape, Domestic Violence, Swadhar, Nirbhaya Fund, etc.

The share of women in the unincorporated sector is highest in the south   

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Schemes related to women's empowerment

Mains level: Gender disparity can be seen among working-owners

Why in the News? 

Recently the Annual Survey of Unincorporated Sector 2022-23 revealed higher shares of women owners and workers in southern and some eastern states, and lower in western, northern, and central states.

Gender disparity in India concerning working-owners and unpaid family workers:

  • Prevalence of Women in Unpaid Family Worker Roles: Data from the Annual Survey of Unincorporated Sector 2022-23 reveals that women are predominantly represented as unpaid family workers.
    • For instance, in Telangana, while 43% of working owners are women, a substantial 59% are unpaid family workers, illustrating a significant gender disparity.
  • Lower Representation of Women as Working Owners: Across India, the proportion of women in working-owner roles is considerably lower compared to men. 
    • For example, in Telangana, women constitute 43% of working owners, reflecting a gender gap where men are more likely to own and operate businesses.
  • Regional Trends Highlighting Gender Disparities: The southern states, such as Telangana, Karnataka, and Tamil Nadu, display a relatively higher share of women in both working-owner and unpaid family worker roles. 
    • Despite this, the overall pattern shows more men in ownership positions and more women in unpaid roles, reinforcing the gender imbalance.
  • Sector-Specific Disparities: In the manufacturing sector, women’s representation as working-owners and hired workers is lower than in unpaid family roles. 
    • For example, in Telangana, women constitute 52% of formal hired workers but only 26% of informal hired workers, indicating a disparity in employment types and compensation.
  • National Overview of Gender Roles: On a national level, the survey indicates that the share of women in unincorporated enterprises varies by state and job type. 
    • While women play a significant role in unpaid family work, their representation as working owners remains limited. 
    • This trend is consistent across different regions, with southern states showing relatively better but still imbalanced gender representation in the workforce.

The reason behind these issues: 

  • Cultural and Societal Norms: Traditional gender roles in India often assign women the responsibility of unpaid domestic and family work, limiting their opportunities for paid employment and entrepreneurship.
  • Access to Resources and Opportunities: Women often have less access to financial resources, credit, and capital needed to start and run businesses compared to men. This financial barrier restricts their ability to become working-owners.
  • Work-Life Balance and Family Responsibilities: Women typically bear a disproportionate share of caregiving and household responsibilities, limiting their availability for formal employment and entrepreneurial activities.
  • Network and Mentorship Gaps: Women often have fewer professional networks and mentorship opportunities, which are crucial for business growth and career advancement.

Steps taken by the Indian Government: 

Scheme/Initiative Year Objective Key Features
Beti Bachao Beti Padhao (BBBP) 2015 Address declining child sex ratio and empower girls through education ·         Awareness and advocacy campaigns

·         Enforcement of PC&PNDT Act

·         Improving enrolment of girls in schools

One Stop Centres (OSC) 2015 Provide integrated support and assistance to women affected by violence ·         Medical aid

·         Police assistance

·         Legal aid

·         Psycho-social counseling

·         Temporary shelter

Ujjwala Yojana 2016 Provide LPG connections to women from BPL households to safeguard their health ·         Clean cooking fuel

·         Reduce health hazards associated with unclean fuels

Mahila Shakti Kendra (MSK) 2017 Empower rural women through community participation ·         Interface for rural women to approach government

·         Skill development training at grassroots level

Nari Shakti Puraskar 2015 Recognize exceptional work in empowering women and promoting gender equality ·         Highest civilian honors for women

·         Conferred by the President of India on International Women’s Day

 

Way forward: 

  • Enhance Access to Financial Resources and Training: Implement targeted financial programs to provide women with easier access to credit, grants, and capital needed to start and grow businesses. This can include microfinance initiatives, low-interest loans, and financial literacy training.
  • Strengthen Legal and Social Support Systems: Enforce and improve existing gender equality laws and policies to ensure women’s rights in the workforce and in business ownership. This includes better implementation of anti-discrimination laws and providing legal support to women entrepreneurs.

Mains question for practice: 

Q Despite various government initiatives and policies aimed at promoting gender equality, significant gender disparities persist in the ownership and workforce participation in unincorporated enterprises across different regions of India. Discuss the reasons behind these disparities and suggest measures to address them.15M

Mains PYQ: 

Q “Though women in post-Independent India have excelled in various fields, the social attitude towards women and feminist movement has been patriarchal.” Apart from women education and women empowerment schemes, what interventions can help change this milieu? (UPSC IAS/2021)

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What are the new provisions for Police Officers?  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: New criminal laws

Mains level: Impact of new criminal laws on Law and order

Why in the News? 

The Bureau of Police Research and Development (BPRD) has issued Standard Operating Procedures (SOPs) to assist police officers in implementing these new provisions in the criminal laws.      

With the new criminal laws coming into effect, how have the basic duties of police officers changed?

  • Registration of FIRs: The officer in charge cannot refuse to register an FIR due to jurisdiction issues. They must register a zero FIR and transfer it to the respective station. Non-registration can attract penal action.
  • Electronic Filing of FIRs: Information for FIRs can be given electronically, which must be signed within three days.
  • Mandatory Videography: Videography is now required during searches, crime scene documentation, and property possession processes. This is to ensure transparency and integrity in investigations.
  • Display of Arrest Information: Information about arrested individuals must be displayed prominently in police stations, ensuring transparency and accountability.

What are some of the changed provisions concerning arrests of elderly and infirm people?

    • Permission from an officer not below the rank of DySP is required to arrest individuals above 60 years or those who are infirm for offenses punishable by less than three years.
    • Handcuffing is restricted and can only be used if there is a possibility of the person escaping custody or causing harm. This aligns with the Supreme Court guidelines.
  • What about preserving electronic evidence?
    • The new laws emphasize maintaining the sequence of custody for electronic devices to ensure the integrity of evidence.
    • The investigating officer must inform the informant or victim about the progress of the investigation within 90 days.

How can electronic evidence be stored?

  • Use of eSakshya App: A cloud-based mobile app, eSakshya, allows police to capture photos and videos, ensuring they are geo-tagged and time-stamped.
  • Integration with ICJS: The data captured via eSakshya is part of the Inter-operable Criminal Justice System (ICJS), making it accessible to the judiciary, prosecution, and forensic experts.
  • Training and Equipment: Investigating officers must be provided with electronic devices and proper training to handle and preserve electronic evidence effectively.

Challenges and Implementation Issues: 

  • Implementation and Training: The transition to new protocols, such as mandatory videography and electronic filing of FIRs, requires extensive training for police officers. 
    • Ensuring that all officers are proficient with the new technology and understand the updated procedures can be a significant logistical and financial challenge.  
  • Infrastructure and Connectivity: Effective implementation of electronic evidence preservation and zero FIR registration demands robust digital infrastructure and reliable internet connectivity, especially in remote or rural areas. 
    • Many police stations may lack the necessary resources or face frequent connectivity issues, potentially hindering the timely and accurate processing of electronic evidence and FIRs.  

Way forward:

  • Need Enhanced Training Programs: Implement comprehensive training programs for police officers nationwide to familiarize them with the new criminal laws and technological advancements.
  • Need Improved Digital Infrastructure: Invest in upgrading digital infrastructure and ensuring reliable internet connectivity across all police stations, especially in rural and remote areas.

Mains PYQ: 

Q The jurisdiction of the Central Bureau of Investigation (CBI) regarding lodging an FIR and conducting probe within a particular State is being questioned by various States. However, the power of the States to withhold consent to the CBI is not absolute. Explain with special reference to the federal character of India. (UPSC IAS/2021)

 

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Hepatitis A vaccination will be cost-effective in Kerala: study

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About Hepatitis A, B, C ;

Mains level: Diseases and their successful case studies in Federal states;

Why in the News? 

  • Hepatitis A infection in Kerala is shifting from early childhood to adolescents and young adults due to better sanitation and hygiene practices.
    • The inclusion of hepatitis A vaccination into the mainstream immunization program for both one-year-old children and 15-year-old individuals in Kerala shows cost-effectiveness and success.

Present State in Kerala and Overall India:

  • At the Regional level (Kerala): Kerala has been experiencing regular hepatitis A outbreaks, with the 2024 outbreak being particularly severe.
    • As of May 30, over 2,400 cases and 18 deaths have been reported, mainly in districts like Kozhikode, Malappuram, Thrissur, and Ernakulam.
  • At the National Level: Severity in Different Age Groups: Almost 50% of children aged 1-5 years in India were found to be susceptible to the hepatitis A virus.
    • However, the hepatitis A vaccine is currently only available for those who can afford it, and is not part of the national immunization program.

About Hepatitis A infection:

  • The infection is usually mild or asymptomatic in children under six years but can be symptomatic and severe in older children, adolescents, and adults, occasionally leading to liver injury and fatalities.
  • India has recently launched its first indigenously developed hepatitis A vaccine, called Havisure:
    • Havisure was launched in January 2024 by Indian Immunologicals Limited (IIL), a subsidiary of the National Dairy Development Board.
    • IIL plans to manufacture up to 1 million doses of Havisure per year initially, focusing on the domestic market first.
Types of Hepatitis Cause Vaccine
Hepatitis A (HAV) Spread through ingestion of contaminated food or water. Hepatitis A vaccine (e.g., Havrix, Vaqta)
Hepatitis B (HBV) Spread through contact with infectious body fluids (blood, semen, etc.) Hepatitis B vaccine (e.g., Engerix-B, Recombivax HB)
Hepatitis C (HCV)  Spread primarily through blood-to-blood contact, often via injection drug use or unsafe medical procedures. No vaccine is available currently. Treatment focuses on antiviral medications
Hepatitis D (HDV) Requires HBV as a co-infection to cause illness. No specific vaccine for HDV. Prevention relies on hepatitis B vaccination.
Hepatitis E (HEV) Spread through ingestion of contaminated water, similar to HAV A vaccine is available in some regions (e.g., Hecolin in China), but not widely used. Prevention mainly involves improving sanitation and safe drinking water

Benefits of Hepatitis A Vaccination in Kerala:

  • Lifelong Immunity: Vaccination provides lifelong immunity against the hepatitis A virus, protecting individuals from severe infections and health complications later in life.
  • Less Out-of-Pocket Expenditure: Studies have shown that vaccinating children aged one year and adolescents aged 15 years in Kerala using either live attenuated or inactivated vaccines is cost-effective.
    • Vaccination prevents future healthcare expenditures associated with treating hepatitis A infections.
  • Increase in Household savings: Implementing vaccination for adolescents could save Kerala ₹5,872 million to ₹10,553 million over five years, depending on the type of vaccine used.
  • Equal and Universal Accessibility: Due to the inclusion in the universal immunization program, these vaccines are accessible throughout all sections of society, whether rich or poor.

Government Initiatives:

  • National Viral Hepatitis Control Program (NVHCP): The Ministry of Health and Family Welfare launched the NVHCP in July 2018 to prevent and control viral hepatitis in India.
    • The program aims to combat hepatitis and achieve country-wide elimination of hepatitis C by 2030, reduce morbidity and mortality associated with hepatitis B and C, and reduce the risk, morbidity, and mortality due to hepatitis A and E.
  • State-Level Initiatives: Some states like Punjab, Assam, Manipur, Tripura, and Haryana have started free or subsidized hepatitis C treatment programs.
    • Haryana launched its own Hepatitis Control Program in 2013 at PGIMS Rohtak, which was later expanded to all district civil hospitals in the state in 2017.

What is the Prime challenge?

  • Achieving high vaccination coverage among adolescents, who are not covered under the universal immunization program, remains a challenge. Strategies such as school-based vaccination campaigns are proposed to enhance this kind of coverage.

Conclusion:  Implement targeted vaccination campaigns in schools and communities to ensure high coverage among adolescents aged 15 years, who are not currently included in Kerala’s universal immunization program. This can be achieved through collaboration with schools, healthcare providers, and community organizations to raise awareness and facilitate easy access to vaccinations.

Mains PYQ: 

Q What is the basic principle behind vaccine development? How do vaccines work? What approaches were adopted by the Indian vaccine manufacturers to produce COVID-19 vaccines? (UPSC IAS/2022)

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Parliament – Sessions, Procedures, Motions, Committees etc

On expunction powers in Parliament   

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Motion of Thanks; Parliamentary privileges; Article 87; Rajya Sabha and Loksabha Rules;

Mains level: Can a member of the Lok Sabha direct a remark against a Minister?

Why in the News? 

The 18th Lok Sabha’s special session featured intense debates on the ‘Motion of Thanks’ to the President’s address, culminating in disputes over expunged remarks by Opposition leaders.

What are expunged remarks?

Expunged remarks in Parliament refer to the words deemed defamatory, indecent, or unparliamentary by the presiding officer and are deleted from the official record.

What is a ‘Motion of Thanks’?

  • A Motion of Thanks is moved in the Lok Sabha and the Rajya Sabha after the President’s address (Article 87) by an MP of the ruling party, following which it is debated in both the Houses.
  • It is a customary practice, adopted from the British Parliament. The Indian Constitution does not provide for any such motion, except direction that each House shall discuss the matters contained in the address.
  • In most cases, three days are set aside for a discussion of the Motion of Thanks and the members are at liberty to speak on any matter of national or international importance and other issues.

Why did the Opposition engage in a war of words with the government over expunging certain remarks?

  • The expunging of critical remarks escalated tensions between the Opposition and the government, leading to a verbal clash during the parliamentary session.
  • There were concerns about transparency in the expunction process, with accusations of biased decisions by the presiding officers.
    • The opposition alleged that there were different standards for expunging remarks made by their leaders compared to those made by ruling party members.
    • Opposition members argued that their remarks critical of the Prime Minister and the ruling party were unfairly expunged, infringing on their Parliamentary Privilege of Free speech.

What is the process for ‘expunging remarks’ in Parliament?

  • Presiding Officer’s Discretion: Under Rule 261 in Rajya Sabha and Rules 380 and 381 in Lok Sabha, the Chairman or Speaker can order expunction if words are deemed defamatory, indecent, unparliamentary, or undignified.
    • If objectionable words are used, the Chair may request their withdrawal; if not complied with, the words are expunged immediately.
  • Recording Changes: Expunged portions are marked with asterisks and a footnote explaining that they were expunged as ordered by the Chair.
  • Publication Restrictions: Media are provided with a list of expunged words/phrases and are prohibited from publishing them to avoid a breach of parliamentary privilege.

Can a member of the Lok Sabha direct a remark against a Minister?

  • Parliamentary Privilege: Members of Parliament (MPs) have the privilege of ‘Freedom of Speech and Expression’ within the House.
    • This includes the right to question the conduct, policies, or actions of Ministers during parliamentary debates without fear of legal repercussions.
  • Procedural Requirements: According to parliamentary rules (Rule 353 in Lok Sabha), if an MP wishes to make an allegation against a Minister, they are required to provide advance notice.
    • This notice allows the Minister in question to prepare a response or provide facts to address the allegation during the debate.
  • Government Accountability: MPs play a crucial role in holding the government accountable to Parliament and the public. Allegations made against Ministers are part of this oversight function, ensuring transparency and accountability in governance.
    • However, these allegations must be made in adherence to parliamentary decorum and procedural rules to maintain fairness and order in debates.

What do the various rules state?

  • Rajya Sabha (Rule 261): Allows the Chairman to expunge defamatory, indecent, unparliamentary, or undignified words from proceedings.
  • Lok Sabha (Rules 380 and 381): Similar provisions for the Speaker to expunge objectionable remarks from parliamentary records.
  • Scope of Expunction: Rules also cover situations where remarks are detrimental to the national interest, offensive to dignitaries, or likely to affect religious or communal sensitivities.
  • Digital Age Challenges: Despite expunction, digital recordings and social media can perpetuate expunged remarks, challenging the effectiveness of traditional expunction practices.

Way forward: 

  • Enhanced Monitoring and Control: Implement advanced monitoring tools that can detect and automatically blur or mute expunged remarks in live broadcasts and recordings of parliamentary proceedings. This can help prevent the inadvertent spread of expunged content on digital platforms.
  • Public Awareness and Education: Encourage responsible reporting and sharing practices to uphold the integrity of expunctions in parliamentary records.

Mains PYQ: 

Q ‘Once a Speaker, Always a Speaker’! Do you think this practice should be adopted to impart objectivity to the office of the Speaker of Lok Sabha? What could be its implications for the robust functioning of parliamentary business in India? (UPSC IAS/2020)

 

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Promoting Science and Technology – Missions,Policies & Schemes

The ANRF plan has got off on the wrong foot  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: About the 2019 National Research Foundation (NRF) Project Report

Mains level: Steps taken by Government for RD

Why in the News? 

In 2023, the Anusandhan National Research Foundation (ANRF) Bill was passed by both Houses of Parliament, heralding a significant new initiative aimed at promoting and advancing research in India, particularly within the country’s universities and colleges.

About 2019 National Research Foundation (NRF) Project Report

  • Objective: The 2019 NRF project report emphasized the goal of seeding, growing, and facilitating research in India, particularly within universities and colleges.
  • Aim: The project aimed to create an environment where research could thrive free from bureaucratic constraints, providing a funding boost and fostering collaboration with industry partners.
  • Scope and Structure: NRF will have five major divisions: Sciences, Technology, Social Sciences, Humanities, and Arts
  • Priority: A top priority mentioned in the report was “growing outstanding research cells already existing at State Universities.”

 

Lack of Industry Representation in India:

  • Governing Bodies Composition: The ANRF Governing Board and Executive Council lack representation from key organizations, such as Central and State universities or colleges.
  • Current Members: Members primarily include Secretaries from various government science departments, directors of top research institutions, and international figures, but not from Indian industry or local academia.
  • Industry and Academia Input: There is a critical need for representatives who understand the practical challenges and bottlenecks of the current university system and have ground-level experience.
  • Diversity Issues: There is minimal representation from the industry and a lack of diversity, with the sole industry representative being an Indian-American based in Silicon Valley and the only woman representative being the Secretary of the DSIR.

R&D underfunding:

  • Current Funding Levels: India significantly underfunds research and development, allocating less than 1% of GDP to R&D. There is a pressing need to increase this to at least 4% to make Indian innovation globally competitive.
  • Systemic Overhaul: The current funding system requires a significant overhaul to boost research. This includes implementing a robust grant management system, ensuring timely disbursal of funds, and minimizing bureaucratic hurdles at both the funding body and grantee institutions.
  • Grant and Fellowship Disbursal: Timely disbursal of research grants and student fellowships is crucial. The aim should be a quick turnaround time of less than six months between application and fund disbursal to maintain the momentum of research activities.
  • Flexibility in Spending: Researchers need flexibility in spending research funds. The current system’s stringent general financial rules (GFR) and the requirement to use the Government e-marketplace (GeM) portal can hinder efficient resource utilization.
  • Diverse and Competent Leadership: The ANRF should be staffed with diverse representatives from practising natural and social scientists, young entrepreneurs, and women.

Other steps taken by the Government: 

  • Atal Innovation Mission (AIM): It is a flagship initiative to promote innovation and entrepreneurship in the country. It aims to create an ecosystem for innovation and provide support to startups through incubators, accelerators, and mentorship programs.
  • Impacting Research Innovation and Technology (IMPRINT) Program: IMPRINT is a joint initiative of the Ministry of Education and the Ministry of Science and Technology to promote translational research.
  • Uchhatar Avishkar Yojana (UAY): UAY is a scheme to promote industry-specific need-based research in premier institutions.

 

Conclusion: The ANRF should actively involve representatives from both Indian industry and academia in its Governing Board and Executive Council. This inclusion will ensure that decision-making processes are informed by practical insights and ground-level experiences.

Mains PYQ: 

Scientific research in Indian universities is declining, because a career in science is not as attractive as are business professions, engineering or administration, and the universities are becoming consumer-oriented. Critically comment. (UPSC IAS/2014)

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e-Commerce: The New Boom

What does the Karnataka Bill promise gig workers?    

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Who are Gig workers?

Mains level: Why are safeguards necessary for Gig workers?

Why in the News?

The Karnataka government released the draft of the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, becoming the second Indian state to take such an initiative, following Rajasthan.

Who are the Gig workers?

Gig workers are independent contractors, freelancers, or temporary workers who are hired for specific projects or tasks, often through online platforms, rather than being employed in traditional long-term employer-employee relationships.

Key highlight of the Bill proposed for the welfare of gig workers:

  • Social Security and Welfare Fund: Establishment of a welfare boards, social security and welfare fund for gig workers, funded by a welfare fee on transactions or company turnover, and contributions from the Union and State governments.
  • Grievance Redressal Mechanism: Introduction of a two-level grievance redressal mechanism to address workers’ complaints and ensure transparency in the automated monitoring and decision-making systems used by platforms.
  • Fair Termination Procedures: Requirement for contracts to list exhaustive grounds for termination, with a 14-day prior notice and valid reasons in writing needed before terminating a worker.
  • Payment and Deductions: Mandate weekly payments to workers, with clear communication regarding any payment deductions, and the right for workers to refuse a specified number of gigs per week without adverse consequences.
  • Safe Working Conditions and Contract Transparency: Obligation for aggregators to provide reasonable and safe working conditions, registration of all gig workers, and contracts to be written in simple language with a 14-day notice for any changes, allowing workers to terminate the contract without losing existing entitlements.

What are the impacts of the labour market in a larger domain, and why are safeguards necessary? 

  • Lack of Basic Rights and Social Security: Gig workers are often classified as “partners” rather than employees, leaving them security outside the purview of labour protection laws and without access to basic rights and social benefits.
  • Arbitrary Terminations and Lack of Grievance Redressal: Instances of arbitrary terminations, blacklisting, and dismissals without hearing the worker’s side are common in the absence of regulatory laws. Automated monitoring and decision-making systems often make these decisions, leaving no room for grievance redressal.
  • Reduced Payments and Exploitation: Over the years, gig workers have faced reduced payments, arbitrary deductions, and exploitation due to the lack of regulatory laws governing the gig economy.
    • The wide gap between the purchasing power of these workers and the affluent consumers they serve raises questions about the long-term sustainability of this model.
  • Need for Transparency and Fair Contracts: The absence of transparency in automated monitoring systems and decision-making by platforms, as well as the lack of fair contracts, has led to the exploitation of gig workers.
    • There is a need for the state to review contract templates and ensure fair contracts with gig workers.
  • Lack of Access to Credit and Skill Development: Gig workers often lack access to credit and skill development opportunities, hindering their growth and formalization.
    • There is a need for enabling platforms to provide these benefits to gig workers.

State-level and National level Initiatives taken previously: 

  • Code on Social Security, 2020: At the national level, the Code on Social Security, 2020 recognized those who freelance or work under short-term contracts. It mandated employers to provide benefits similar to those of regular employees to gig workers.
  • Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act: Rajasthan became the first state to introduce a bill for the welfare of gig workers in 2023.
    • The bill, which became an Act in September 2023, sought to establish a welfare board and fund for gig workers.
    • However, the Act has gone into cold storage after the changed government in November 2023.
  • Haryana Gig Workers Welfare Board Bill: The bill aims to establish a state-level board dedicated to the social and economic security of gig workers involved in delivering goods, services, and food at doorsteps.

Case study: 

  • In California (USA), the Proposition 22 ballot measure allows app-based transportation and delivery companies to classify drivers as independent contractors while providing them with some benefits like a health insurance subsidy and minimum earnings guarantee.
  • New York City (USA)  has passed legislation requiring food delivery apps to provide workers with benefits like paid sick leave and minimum pay.

Way forward: 

  • Unified Legislation: Introduce a comprehensive national-level legal framework specifically addressing the rights and welfare of gig workers. This legislation should encompass social security, fair wages, occupational safety, and grievance redressal mechanisms.
  • Strict Enforcement: Ensure robust enforcement of these laws through dedicated government bodies and regular audits of gig economy platforms. Penalties for non-compliance should be substantial enough to deter exploitative practices.

Mains PYQ: 

Q Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC IAS/2021)

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Judicial Reforms

Amidst politicians’ new reverence for the Constitution, one thing to remember 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Constitutional Provisions

Mains level: Basic Structure and foundational principles should never be allowed to be eclipsed

Why in the news? 

Voters have cleverly embraced the idea of constitutional principles to protect their freedoms. It’s now everyone’s responsibility, including elected officials, citizens, and the judiciary, to ensure that there’s no overreach.

Constitutional Provisions:

  • Article 99: Mandates that every member of Parliament must take an oath or affirmation to uphold the Constitution.
  • Third Schedule: Specifies the form of oath or affirmation that members of Parliament, judges of the Supreme Court, and High Courts must take.
  • Part III (Fundamental Rights): Guarantees civil liberties, such as the rights to equality, freedom of speech, and right to life.
  • Part IV (Directive Principles of State Policy): Provides guidelines for governance, directing the state in certain policy matters for the welfare of citizens.

Basic Structure and Foundational Principles:

  • Kesavananda Bharati Case (1973): Established the doctrine that certain features of the Constitution are beyond the amending power of Parliament if they violate its “Basic Structure”, ensuring that fundamental principles like democracy, secularism, judicial review, and federalism cannot be altered.
  • Foundational Principles: Include the rule of law, separation of powers, judicial independence, and protection of fundamental rights.

Basic Structure and foundational principles should never be allowed to be eclipsed                                     

  • Protection of Fundamental Rights: The Basic Structure doctrine protects fundamental rights and core principles like democracy, secularism, judicial independence, and federalism in India.
  • Preservation of Constitutional Balance: Eclipsing the Basic Structure and foundational principles could upset the delicate balance of powers among the legislature, executive, and judiciary. These principles ensure that no single branch of government becomes disproportionately powerful, thereby maintaining the checks and balances essential for democratic governance.
  • Upholding the Rule of Law: The Basic Structure doctrine reinforces the supremacy of the Constitution as the supreme law of the land. By preventing its core principles from being undermined or diluted through constitutional amendments or legislative actions, it ensures that all state actions, including laws passed by Parliament, are consistent with constitutional norms and the rule of law.

Significance of “Judicial Overreach”:

  • Protection of Rights: Judicial overreach often arises when courts intervene to protect fundamental rights guaranteed by the Constitution, especially when legislative or executive actions are perceived to violate these rights.
  • Checks and Balances: It serves as a crucial check on the powers of the legislature and executive, ensuring that their actions conform to constitutional principles and do not exceed their authority.
  • Defending the Constitution: Courts may intervene to uphold the supremacy of the Constitution, ensuring that laws and actions comply with its provisions, including the Basic Structure doctrine established in the Kesavananda Bharati case.

Criticisms of judicial overreach:

  • Interference with the Separation of Powers: Critics argue that judicial overreach interferes with the constitutional principle of separation of powers.
  • Lack of Accountability: Another criticism of judicial overreach is that the judiciary is not accountable to the people in the same way that elected representatives are. Because Judges are appointed, not elected 
  • Dilution of Democracy: Some critics argue that judicial overreach can undermine the democratic process by taking important decisions out of the hands of elected officials and placing them in the hands of judges.  

Mains PYQ: 

Q What was held in the Coelho case? In this context, can you say that judicial review is of key importance amongst the basic features of the Constitution? (UPSC IAS/2016)

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Financial Inclusion in India and Its Challenges

India’s Fintech funding plummets amid global slowdown, shows report    

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Fintech Sector

Mains level: Challenges and significance of the fintech sector,

Why in the news? 

Despite achieving a significant milestone in H1 2024, the fintech sector has encountered notable funding difficulties.

What is the Fintech Sector?

  • The fintech sector encompasses technologies and innovations that aim to compete with traditional financial methods in the delivery of financial services. This includes a wide range of applications like mobile banking, online payments, digital lending, and blockchain technology.

Present Report Insights

  • Funding Decline: The Indian fintech sector recorded $795 million in funding in H1 2024, a decrease of 11% from H2 2023 and 59% from H1 2023.
  • Global Ranking: Despite the decline, the Indian fintech ecosystem ranked among the top three globally funded sectors alongside the US and UK in H1 2024.
  • Major Transactions: Only two funding rounds exceeded $100 million in 2024, with Perfios becoming the only unicorn. Bengaluru led the funding, followed by Mumbai and Pune.
  • Segment Performance: Alternative Lending, RegTech, and BankingTech were the top-performing segments, with Alternative Lending securing $646 million, making up 81% of the total funding.
  • Acquisitions and IPOs: There were six acquisitions and five IPOs in H1 2024, marking significant activity despite the overall funding challenges.

Significance of Fintech Sector

  • Financial Inclusion: Fintech innovations enhance financial inclusion by providing access to financial services to unbanked and underbanked populations.
  • Economic Growth: The sector contributes significantly to economic growth by fostering innovation, creating jobs, and boosting consumer spending.
  • Efficiency and Transparency: Fintech solutions improve efficiency and transparency in financial transactions, reducing costs and fraud.
  • Support for Startups: The sector offers numerous opportunities for startups, driving entrepreneurship and competition.

Challenges 

  • Data Security: Fintech companies must implement strong security measures to protect sensitive customer data from cyber-attacks and data breaches. For example, Acko, a leading Indian fintech startup, has faced issues with data breaches in the past, highlighting the importance of robust data security protocols in the industry.
  • Regulatory Compliance: The fintech industry is highly regulated, requiring companies to stay updated on the latest government policies and ensure compliance to avoid penalties. For example, the Reserve Bank of India (RBI) has issued guidelines to protect consumers from predatory lending practices by digital lenders, underscoring the need for fintech firms to navigate the evolving regulatory landscape.
  • Customer Acquisition and Retention: Attracting and retaining customers is critical for fintech firms. For example, BharatPe, a prominent Indian fintech company, has faced challenges in customer retention due to its focus on merchant acquisition.
  • Funding and Investment: Securing adequate funding and investments remains a challenge for many fintech startups.  For example, Paytm, one of India’s largest fintech companies, has faced scrutiny from investors due to its inability to achieve profitability

How India Can Improve Its Fintech Sector

  • Supportive Regulatory Environment: Create a regulatory framework that encourages innovation while ensuring consumer protection and systemic stability, facilitating a balanced growth of the fintech ecosystem.
  • Infrastructure Development: Invest in digital infrastructure, such as high-speed internet and mobile connectivity, to support the widespread adoption and efficient functioning of fintech applications across the country.
  • Focus on Cybersecurity: Ensure robust cybersecurity measures to protect against fraud and cyber-attacks, building trust among users and maintaining the integrity of fintech services.
Steps taken by the government: 

  • Regulatory Sandbox: The Securities and Exchange Board of India (SEBI) introduced a framework for regulatory sandbox in 2020 to allow fintech companies to experiment with new products and services in a controlled environment.
  • Digital Personal Data Protection Bill: Introduced in 2022, this bill aims to create a framework for the protection of personal data collected by fintech companies.
  • Guidelines on Digital Lending: In 2022, the Reserve Bank of India (RBI) issued guidelines to protect consumers from predatory lending practices by digital lenders.
  • Promoting Financial Inclusion: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has helped in enrolling over 523.9 million beneficiaries for new bank accounts, enabling fintech startups to reach a large consumer base.
  • Aadhar and UPI: The unique biometric identification system Aadhar and the Unified Payments Interface (UPI) have improved transparency and delivery of financial service

Conclusion: Fintech companies in India face challenges including data security, regulatory compliance, customer acquisition, and securing investments. Addressing these ensures sustainable growth and trust in a competitive market environment.


Mains PYQ: 

Q Has digital illiteracy, particularly in rural areas, coupled with a lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification. (UPSC IAS/2021)

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Foreign Policy Watch: India – EU

The spectre of neo-fascism that is haunting Europe 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: What is Neofascism?

Mains level: Impact of Neofascism on Europe

Why in the news?

Before France’s UEFA Euro 2024 opener, Kylian Mbappé warned against extremist power, saying he doesn’t want to represent a country that opposes his values. Marcus Thuram urged against supporting Marine Le Pen’s party.

Who is Kylian Mbappé?

Kylian Mbappé is a French professional footballer who plays as a forward for Paris Saint-Germain (PSG) and the French national team. 

Differences between Neo-Fascism and Ultra-Right

  • Neo-Fascism revives fascist principles, emphasising extreme nationalism, authoritarianism, and racial supremacy. 
  • Ultra-Right encompasses broader right-wing ideologies, focusing on nationalism, conservatism, and anti-immigration without necessarily adhering to fascist roots. 
  • Neo-fascists often seek to mainstream their image, while ultra-right movements vary widely in intensity and focus on cultural and economic issues.

Key characteristics of Neofascism:

  • Ultra-nationalism: Extreme patriotism and loyalty to one’s country
  • Racial supremacy: Belief in the superiority of certain races over others
  • Populism: Appealing to the interests and concerns of ordinary people, especially against a perceived elite establishment
  • Authoritarianism: Favoring or enforcing strict obedience to authority at the expense of personal freedom
  • Nativism: Promoting the interests of native inhabitants against those of immigrants
  • Xenophobia: Intense or irrational dislike or fear of people from other countries
  • Opposition to liberal democracy: Rejecting the principles of liberal democracy such as individual rights, political pluralism and the rule of law

The spectre of the Ultra-Right and Neo-Fascism   

  • Rise of the Ultra-Right in Europe: The ultra-right and neo-fascism are gaining significant traction across Europe. The recent European Union (EU) elections saw substantial gains for ultra-right parties, indicating a shift in political dynamics.
  • Impact on French Politics: Kylian Mbappé and Marcus Thuram’s comments highlight the concerns about the rise of extremist parties in France. Marine Le Pen’s National Rally (RN) party has seen increasing support, posing a challenge to traditional political structures. Emmanuel Macron called for a snap parliamentary election in response to RN’s success, hoping to rally moderate and progressive voters.
  • European Context: The spectre of nationalism and fascism is reminiscent of pre-World War II Europe. Timothy Garton Ash noted the irony of Europe celebrating liberation from fascism while facing a resurgence of similar ideologies.

Effect of the Growth of the Far Right Over the African and Asian Region

  • Anti-Immigration Sentiment: The far-right’s rise is partly driven by opposition to immigration from Africa and Asia. This sentiment is a legacy of colonialism and has been exacerbated by recent socio-economic challenges.
  • Integration Challenges: Prominent French footballers of African and Arab descent, like Kylian Mbappé and Karim Benzema, symbolize the integration issues within French society. Benzema’s quote, “If I score, I’m French… if I don’t, I’m an Arab,” underscores the conditional acceptance faced by immigrants and their descendants.
  • Policy Implications: Far-right governments may implement stricter immigration policies, affecting migrants and refugees from Africa and Asia. These policies could lead to increased xenophobia and social divisions.

How French Elections Could Turn Out to Be a Change Point in Both French and European History

  • Potential Shift in Political Power: The success of the RN in the French elections could signify a major shift in political power. If the RN wins the upcoming elections, it could lead to a reconfiguration of French politics, with far-reaching implications for Europe.
  • Influence on European Politics: A far-right victory in France could embolden similar movements across Europe. The trend seen in Italy, Sweden, Germany, Spain, and other countries suggests a broader European shift towards the far-right.
  • Long-Term Implications: The rise of the ultra-right could lead to significant changes in EU policies, particularly regarding immigration, national sovereignty, and international relations. Historical patterns suggest that while such political waves eventually stabilize, the impacts of this shift could be long-lasting and transformative for Europe.

Conclusion: Need to Implement policies to reduce socio-economic disparities, focusing on marginalized communities, and creating opportunities for employment, education, and social mobility. Invest in social welfare programs to alleviate poverty and economic insecurity, which are often exploited by far-right movements to garner support.


Mains PYQ:

Q  ‘In the context of the neo-liberal paradigm of development planning, multi-level planning is expected to make operations cost-effective and remove many implementation blockages.” Discuss. (UPSC IAS/2019)

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BREXIT

UK elections: Historic result for Labour, but no vote share gains

Note4Students

From UPSC perspective, the following things are important :

Prelims level: British Parliamentary system

Mains level: Impact on India-UK relations

Why in the news? 

Keir Starmer is poised to become the next Prime Minister of the UK, following Labour’s landmark victory securing a substantial majority.

Labour Party Comes to Power after 14 Years of Conservative Rule: 

  • Electoral Outcome: Labour secures a decisive victory in the UK elections, winning 412 seats in the House of Commons, ending 14 years of Conservative governance.
  • Majority: Labour has achieved the largest majority in British politics since the early 20th century, with over 290 seats ahead of the Tories.
  • Voter Sentiment: The election reflects a strong anti-conservative sentiment rather than a resounding endorsement of Labour, with significant losses in Conservative strongholds.
  • Strategic Shifts: Labour’s success is attributed to strategic moves to appeal to rural and traditionally Conservative areas, contrasting with losses in urban and progressive strongholds.

Left and Right Streams in the UK:  

Left Stream (Labour Party):

  • Traditionally advocates for social justice, welfare state policies, and government intervention in the economy to reduce inequality.Strong support from urban areas, progressive voters, trade unions, and historically marginalised groups such as minorities and low-income earners.
  • Under Keir Starmer, Labour has moved towards the centre, focusing on appealing to more rural and traditionally Conservative constituencies.

Right Stream (Conservative Party):

  • Favors free-market policies, limited government intervention, and emphasises individual responsibility and economic freedom. Strong support from affluent voters, business interests, rural communities, and traditionally conservative values such as patriotism and national sovereignty.
  • The Conservative Party has faced challenges with internal divisions over Brexit and criticism for austerity measures implemented during previous administrations.

Impact on India: 

  • India-UK FTA: The Labour Party has maintained its commitment to completing the FTA, though the timelines will remain uncertain for some time. Key sticking points include India’s demand for greater access for its skilled professionals in the UK market and the UK’s push for lower import duties on goods like Scotch whisky and electric vehicles.
  • Defence and Security Cooperation: The India-UK defence and security partnership is likely to continue strengthening, building on recent momentum from the 2+2 mechanism and Defence Minister Rajnath Singh’s visit in early 2024. The UK is expected to maintain its support for a rules-based order and continue working with India to promote a “free and open Indo-Pacific”.
  • Visa Rules: India has been in talks with the UK for the past few years to relax visa rules for its citizens. With the Labour Party coming into power, there might be some uncertainty around the progress of these discussions.
  • Carbon Tax: While the FTA might reduce or eliminate tariffs, Indian exports could still face hefty carbon taxes, unlike UK exports to India. The Labour Party has always been in favour of imposing a carbon tax, which could impact Indian industries

Conclusion: India should leverage diplomatic channels to strengthen economic cooperation with the UK under Keir Starmer’s leadership. This could include negotiating bilateral trade agreements, promoting investment opportunities, and collaborating on emerging sectors like technology and renewable energy.


Mains question for practice: 

Q Discuss the potential implications of Keir Starmer’s ascension to UK Prime Minister on India-UK relations. 10M

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Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

What a Labour election win could mean for India-UK Free Trade Agreement (FTA)?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Geographical features of UK

Mains level: India UK Relation

Why in the news?

New Delhi and London have been engaged in negotiations for over two years to discuss a proposed free trade agreement (FTA) aimed at enhancing bilateral trade between the two nations.

What does the agreement could result?           

  • Mutual Tariff Reductions: Both countries may agree to lower tariffs on a wide range of goods, including automobiles, textiles, alcoholic beverages, and medical instruments, facilitating increased trade flows.
  • Market Access: Improved market access could benefit industries in both countries, particularly India’s IT and services sectors, which are seeking expanded opportunities in the UK market.
  • Economic Growth: The FTA aims to stimulate economic growth by promoting trade and investment, potentially boosting employment and productivity in relevant sectors.
  • Political Relations: Strengthening economic ties could lead to closer political cooperation between India and the UK, influencing bilateral relations on international platforms.

Impact on Global Geopolitics and Indian Scenario

  • Global Trade Alliances: Strengthening economic ties between India and the UK could enhance their geopolitical influence, potentially shaping global trade alliances and partnerships in the Asia-Pacific region and beyond.
  • Diversification of Trade Partnerships: For India, the FTA represents a strategic move to diversify its trade partnerships beyond traditional allies, thereby reducing dependency and enhancing economic resilience.
  • Improve Bilateral Relations: Improved economic cooperation could foster closer political relations between India and the UK, influencing diplomatic engagements and collaboration on global issues such as climate change and security.
  • Regional Economic Impact: The agreement may spur economic growth in India, particularly benefiting sectors like IT and services, while also contributing to the UK’s post-Brexit economic strategy and trade diversification efforts.
  • Influence the Environmental and Regulatory Standards: Negotiations over environmental standards, including India’s concerns over carbon taxes and the UK’s climate goals, highlight the FTA’s potential to influence global environmental policies and regulatory frameworks.

India-UK Relation: 

  • Strong historical ties: India and the UK share deep historical and cultural connections dating back to the colonial era. The UK has a large Indian diaspora of over 1.5 million people.
  • Strategic partnership: In 2004, India and the UK upgraded their relationship to a Strategic Partnership. This was further strengthened by the ‘2030 Roadmap for India-UK Future Relations’ agreed in 2021, which outlined cooperation across 5 pillars- people-to-people ties, trade, defence and security, climate change, and health.
  • Growing trade and investment: The UK is one of India’s major trading partners. Bilateral trade reached £38.1bn in the year to Q3 2023, making India the UK’s 12th largest trading partner. India is the 3rd largest foreign investor in the UK. Both countries are negotiating an India-UK Free Trade Agreement to further boost economic ties.
  • Cooperation in new frontiers: India and the UK are collaborating in emerging areas like fintech, green finance, cyber security, and critical technologies. They plan to hold the first Strategic Tech Dialogue to deepen cooperation in areas like semiconductors, 5G, and AI.
  • Shared global outlook: India and the UK have convergent views on many global issues and support a rules-based international order. The UK supports India’s permanent membership of the UN Security Council. They also cooperate closely on maritime security in the Indo-Pacific

Way forward: 

  • Addressing Key Negotiation Points: Focus on resolving critical issues such as tariff reductions, market access for IT and services sectors, and alignment on environmental standards to expedite FTA conclusion.
  • Enhancing Strategic Partnerships: Strengthen bilateral economic and political cooperation through sustained dialogue and proactive engagement, aiming to maximize mutual benefits and ensure the long-term sustainability of the FTA.

Mains PYQ:

Q The judicial systems in India and the UK seem to be converging as well as diverging in recent times. Highlight the key points of convergence and divergence between the two nations in terms of their judicial practices. (UPSC IAS/2020)

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The story of the American Declaration of Independence   

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Bordering countries of the USA and compare length of border

Mains level: American Revolution

Why in the news? 

July 4 commemorates the 248th Independence Day of the United States, celebrating the signing of the Declaration of Independence, the foundational document that established the US as a union of states freed from British rule.

Why did the colonists want Independence from Britain?

  • Lack of Representation: Colonists were discontented with British policies that imposed taxes and laws without colonial representation in the British Parliament, which they viewed as unjust and oppressive.
  • Policy Shifts: After the French and Indian War, Britain ended its policy of salutary neglect and imposed stricter controls on the colonies, including prohibitions on westward expansion and new taxes through acts like the Stamp Act and Tea Act.
  • Ideas of Freedom: Influenced by Enlightenment ideals of liberty and equality, colonists began to articulate grievances against monarchical rule and asserted their natural rights to self-governance.
  • Resistance Movements: Events like the Boston Tea Party symbolized widespread resistance to British taxation and policies, galvanizing colonial unity and determination for independence.
  • Armed Conflict: The escalation from protests and boycotts to armed conflict (beginning in 1775) underscored the colonies’ resolve to break away from British control and establish their own governance.

What happened in the lead up to American independence?

  • Formation of Continental Congress: Colonists formed the Continental Congress to coordinate resistance efforts and explore avenues for negotiation with Britain, which ultimately failed due to British refusal to grant representation.
  • Boycotts and Protests: Colonists attempted economic boycotts of British goods and engaged in protests against oppressive British policies, marking a period of growing dissent and opposition.
  • Outbreak of War: By 1775, clashes between colonial militias and British troops erupted into open warfare, solidifying the shift from grievances to armed struggle for independence.
  • Declaration of Independence: The Continental Congress formally declared the colonies’ independence on July 2, 1776, followed by the adoption and signing of the Declaration of Independence on July 4, 1776.
  • Continental Army and Allies: The colonies secured military support and alliances, crucially from France, which helped sustain their war effort against British forces.

How was the Declaration of Independence formulated?

  • Committee of Five: A committee including Thomas Jefferson, John Adams, Benjamin Franklin, Roger Sherman, and Robert R. Livingston was appointed to draft the Declaration of Independence.
  • Thomas Jefferson’s Role: Jefferson, primarily responsible for drafting, drew on Enlightenment philosophy and his earlier writings to articulate the principles of natural rights and grievances against British tyranny.
  • Drafting Process: The committee reviewed Jefferson’s draft, incorporating edits and revisions suggested by Adams, Franklin, and others before presenting the final version to the Continental Congress.
  • Adoption and Signing: On July 4, 1776, the Continental Congress formally adopted the Declaration of Independence, which was signed by 56 delegates representing the thirteen colonies, solidifying their break from British rule.
  • Legacy of equality and rights as a foundation: The Declaration’s proclamation of equality and rights laid the foundation for American ideals of democracy and independence, shaping the course of American history and inspiring similar movements worldwide.

Conclusion: The Declaration of Independence, adopted on July 4, 1776, marked a pivotal moment as the American colonies asserted their sovereignty, based on Enlightenment ideals, igniting a global pursuit of liberty and democratic principles.

Mains PYQ:

Q American Revolution was an economic revolt against mercantilism. Substantiate. (UPSC IAS/2013)

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Capital Markets: Challenges and Developments

Indian Government Bonds in JP Morgan index: how much funds could flow into India?   

Note4Students

From UPSC perspective, the following things are important :

Prelims level: JP Morgan index

Mains level: Benefits of Higher Inflows from the Inclusion of Indian Government Bonds in JP Morgan’s Emerging Markets Bond Indices

Why in the news?

JP Morgan is including Indian Government Bonds in its emerging markets bond indices starting June 28. This move is expected to attract significant foreign investment, boosting India’s bond market and economic stability.

What would be India’s weight in the index?

  • India is poised to achieve a maximum weighting of 10% in the GBI-EM Global Diversified Index. This increased allocation is anticipated to attract greater investment from global investors into Indian debt, with analysts projecting monthly inflows of $2-3 billion.

Benefits of Higher Inflows from the Inclusion of Indian Government Bonds in JP Morgan’s Emerging Markets Bond Indices

  • Increase in Foreign Exchange Reserves: The inflows from foreign investments will directly boost India’s foreign exchange reserves, providing a stronger buffer against external economic shocks.
  • Strengthening the Rupee: The surge in foreign investment will enhance demand for the rupee, leading to its appreciation and contributing to a more stable and robust currency.
  • Enhanced External Financial Management: With increased foreign exchange reserves, India will have greater flexibility and resilience in managing its external financial obligations and mitigating balance of payment issues.
  • Reduction in Borrowing Costs: Higher reserves and a stronger rupee can lead to improved credit ratings and reduced risk premiums, lowering borrowing costs for the government and corporates.
  • Promotion of Economic Confidence: The inflows signify international investor confidence in India’s economic prospects, boosting overall economic sentiment and encouraging further investments.

What about the impact on inflation as RBI mops up the dollars and releases an equivalent amount in rupees?

  • Liquidity Injection: When the RBI mops up dollars from the market, it releases an equivalent amount of rupees into the financial system. This injection of liquidity can potentially increase the supply of money circulating in the economy.
  • Demand-Pull Inflation: Increased liquidity can stimulate demand for goods and services, potentially leading to demand-pull inflation if the production capacity of the economy does not keep pace with the increased demand.
  • Asset Price Inflation: The influx of liquidity can also inflate asset prices such as real estate and stocks, impacting affordability and potentially creating asset price inflation.
  • Exchange Rate Stability: On the flip side, mopping up dollars can help stabilize the exchange rate by reducing downward pressure on the rupee due to excessive inflows.
  • RBI’s Policy Response: The RBI has various monetary policy tools, such as open market operations, repo rates, and reserve requirements, to manage liquidity and inflationary pressures arising from such inflows. It may use these tools to absorb excess liquidity and stabilize inflation.

Way forward: 

  • Prudent Monetary Policy Management: The RBI should continue to employ effective monetary policy measures, such as open market operations and repo rate adjustments, to carefully manage liquidity and inflationary pressures stemming from increased foreign inflows.
  • Enhanced Economic Diversification: India should use the influx of foreign investment to diversify its economy further, focusing on infrastructure development, technological advancements, and sustainable growth initiatives to bolster long-term economic resilience and stability.

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Poverty Eradication – Definition, Debates, etc.

Education ‘remains the most effective contraceptive

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Observation by National Family Health Surveys (NFHS)

Mains level: Challenges faced by deprived section of the society

Why in the news? 

India’s current population of 1.4 billion is projected to peak at 1.7 billion by 2064, then stabilize at 1.53 billion by 2100, as fertility rates decline below replacement level.

What does the United Nations speak on Indian demographics?

  • India overtook China as the world’s most populous country. UN estimates project India’s population to peak at 1.7 billion around 2064, then settle at 1.53 billion by 2100.
  • Population growth is slowing, with the total fertility rate dipping below the replacement level of 2.1.

What do the National Family Health Surveys (NFHS) observed recently?

  • Association with Education: There is a significant correlation between levels of education and unmet needs for family planning among married women in India, highlighting the importance of education in addressing reproductive health issues.
  • High Demand for Family Planning: There remains a notable demand for family planning services, particularly among young women aged 15-24, indicating ongoing challenges in meeting reproductive health needs effectively across different age groups.

Challenges faced by a deprived section of society                           

  • Limited Access to Family Planning Services: Women from disadvantaged backgrounds often face barriers in accessing contraceptives and family planning services due to social norms, lack of education, and cultural taboos surrounding contraception.
  • Teenage Pregnancies and Early Marriages: High rates of teenage pregnancies and early marriages contribute to health risks for young women, exacerbated by limited awareness about sexual and reproductive health rights and options.
  • Social Stigma and Cultural Norms: Deep-rooted societal attitudes and stigmas surrounding sexual activity, contraception, and abortion hinder open discussions and access to comprehensive sexual education and healthcare services, particularly for unmarried individuals.

What can India do to improve social conditions?

  • Enhancing Education and Awareness: Increase access to comprehensive sex education in schools and communities to empower young people with knowledge about contraception, family planning, and reproductive health rights.
  • Addressing Cultural Norms and Stigma: Challenge societal taboos and misconceptions surrounding contraception and sexual activity through culturally sensitive communication and advocacy efforts.
  • Expanding Healthcare Access: Ensure equitable access to affordable and quality healthcare services, including reproductive health services, particularly in rural and underserved areas.
  • Reforming Legal Frameworks: Reform laws and policies related to reproductive rights and access to safe abortion services to ensure women have autonomy over their reproductive decisions and can access safe and legal abortion services without unnecessary restrictions.

Steps taken by the government related to health: 

  • Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY): This scheme aims to provide health coverage to over 500 million people, offering a cover of Rs. 5 lakh per family per year for secondary and tertiary care hospitalization. Over 4.68 crore cards have been issued under the scheme.
  • Comprehensive Primary Health Care (CPHC) through Ayushman Bharat-Health and Wellness Centres (HWCs): Launched in February 2018, this initiative aims to provide an expanded range of services closer to the community, including care for non-communicable diseases, palliative and rehabilitative care, oral, eye and ENT care, and mental health services.
  • Pradhan Mantri Swasthya Suraksha Yojana (PMSSY): This scheme, launched in 2003, aims to correct regional imbalances in the availability of affordable/reliable tertiary healthcare services and also to augment facilities for quality medical education in the country. Under this, new AIIMS are being set up and existing medical colleges are being upgraded

Way forward: 

  • Integrated Approach to Education and Healthcare: Implement integrated programs that combine comprehensive sex education in schools with improved access to healthcare services, ensuring young people are empowered with knowledge and resources for reproductive health.
  • Community Engagement and Advocacy: Foster community dialogues and advocacy campaigns to challenge cultural norms and stigma around reproductive health, promoting open discussions and awareness-building initiatives across all demographics.

Mains PYQ:

Q Demographic Dividend in India will remain only theoretical unless our manpower becomes more educated, aware, skilled and creative.” What measures have been taken by the government to enhance the capacity of our population to be more productive and employable? (UPSC IAS/2016)

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

The shape of a five-year climate agenda for India

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Initiative related to climate change

Mains level: Role of Federal Entities in Enhancing Climate Action

Why in the news? 

The new government’s climate actions will impact all sectors, shaping India’s sustainable economic path, global leadership, and fight for climate finance and justice.

Initiatives Taken by the Indian Government in the Last Decade and Their Significant Results

  • International Solar Alliance (ISA): Promotes the widespread adoption of solar energy, enhancing global cooperation in renewable energy.
  • Coalition for Disaster Resilient Infrastructure (CDRI): Focuses on building resilient infrastructure to withstand climate-induced disasters.
  •  Net-Zero by 2070: India’s commitment to achieve net-zero emissions by 2070 marks a significant shift towards absolute emission reductions.
  • Enhanced Nationally Determined Contributions (NDCs): Setting ambitious targets for reducing emissions intensity and increasing renewable energy capacity.
  • Indian Emissions Carbon Trading Scheme: Establishing a carbon trading system to incentivize emission reductions and support sustainable economic growth.
  • Significant Growth in Renewable Energy Capacity: Rapid expansion in solar and wind energy installations, contributing to India’s international non-fossil fuel energy targets.
  • Green Development Pact under G-20 Presidency: Integrating green development principles into global economic practices, showcasing India’s leadership in sustainable development.

How India can enhance it’s Global negotiations wrt Climate change? 

  • Hosting International Climate Summits: India should aim to host a major international climate summit like the United Nations Conference of Parties (COP) in 2028. This would provide a platform to showcase its climate leadership and set ambitious global climate agendas. Successful hosting, akin to its G-20 Presidency, would strengthen India’s influence in global climate policy.
  • Advocacy and Consensus Building: India should start early to build consensus on critical climate issues, such as ending new investments in oil and gas post-2030 and securing significant commitments for adaptation finance. Proactively engaging in dialogues, forming alliances, and addressing concerns of other nations will help India lead negotiations and drive meaningful outcomes.
  • Promoting Equity and Climate Finance: India should continue to emphasize equity in climate action and finance in international forums. Advocating for fair treatment of developing countries and pushing for enhanced climate finance mechanisms will strengthen India’s position as a leader of the Global South.

Role of Federal Entities in Enhancing Climate Action

  • Collaboration on Long-Term Climate Strategies: Federal entities can work with state governments to develop and implement long-term climate and energy models. Examples include supporting states like Tamil Nadu and Bihar in crafting their net-zero plans.
  • Enhanced Coordination and Policy Alignment: Forming a Centre-State coordination group can ensure better synchronization of climate actions across states. This group can facilitate regular communication and policy alignment while respecting the autonomy of each state.
  • Financial Incentives through the Sixteenth Finance Commission: Federal entities can use financial mechanisms like the Finance Commission to incentivize states for their climate initiatives. This can include grants or additional funding for states that demonstrate significant progress in climate action.
  • Integration of Scientific Capabilities in Policymaking: Encouraging states to incorporate scientific modelling and data analysis into their climate policies. Federal support can enhance the technical capabilities of states, ensuring data-driven and effective climate strategies.
  • Consistent and Accurate Climate Data Management: Developing a unified MRV architecture at the state level to standardize data collection and reporting. This system can help track progress, ensure accountability, and facilitate better policy adjustments based on reliable data.

The Indian government has taken several initiatives to address climate change, but their effectiveness is still being evaluated:

  • National Action Plan on Climate Change (NAPCC): Launched in 2008, the NAPCC identified eight national missions to promote understanding of climate change, adaptation and mitigation, energy efficiency, and natural resource conservation. While these missions have led to some progress, such as the ambitious targets set under the National Solar Mission, their overall impact is still being assessed.
  • State Action Plans on Climate Change (SAPCCs): Under the NAPCC, states are required to develop their own action plans. As of 2022, 33 states and union territories have prepared their SAPCCs. However, the implementation and monitoring of these plans remain a challenge.
  • Climate change research and knowledge networks: The government has supported various research initiatives and knowledge networks to enhance understanding of climate change impacts and responses. These include the National Network Programmes on Climate Change Modelling, Aerosols, and Coastal Vulnerability. While these networks have generated valuable knowledge, their ability to inform policy and action is still being evaluated

Conclusion: India should expand its climate targets beyond the power sector to include other key areas such as transportation, industry, and agriculture. Clear and ambitious targets for zero-carbon two- and four-wheelers, as well as other sectors, will drive comprehensive decarbonization efforts.

 

Mains PYQ: 

Q Explain the purpose of the Green Grid Initiative launched at World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November 2021. When was this idea first floated in the International Solar Alliance (ISA)? (UPSC IAS/2021)

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Disasters and Disaster Management – Sendai Framework, Floods, Cyclones, etc.

Why stampedes take place?   

Note4Students

From UPSC perspective, the following things are important :

Prelims level: What is a Stampede and cases related to Stampede

Mains level: Preventive Measures to avoid stampedes

Why in the news?

On Tuesday, July 2, a stampede during a religious gathering in Uttar Pradesh’s Hathras district resulted in the tragic deaths of at least 121 individuals, predominantly women.

What is a Stampede?

A stampede is an impulsive mass movement of a crowd that often results in injuries and deaths.It disrupts the orderly movement of crowds, leading to injuries and fatalities, often triggered by panic, perceived danger, or the pursuit of something gratifying.

Why do Stampedes Kill?

  • Primary Cause: Most stampede casualties result from traumatic asphyxia, where external compression of the chest or abdomen restricts breathing.
  • Other Causes: Include myocardial infarction (heart attacks), direct crushing injuries, head injuries, and neck compression.

How Does Human Psychology Lead to Stampedes?

  • Panic and lacking in Cooperation: In panic-inducing situations, cooperative behavior is initially beneficial, but if disrupted, can lead to chaotic actions like pushing and shoving.
  • Positive Wish-Fulfillment Beliefs: A collective belief, rational or irrational, can mobilize large groups into actions that may compromise individual safety.

How Does the Physical Organization of Spaces Contribute to Stampedes?

  • Factors Contributing to Stampede Risks: Lack of light, poor crowd flow management, structural collapses, blocked exits, and inadequate design of hardware (like doors and barriers) increase stampede risks.
  • Crowd Density: High density can lead to prolonged evacuation times and increased panic.

How to Better Prevent or Mitigate Stampedes?

  • Planning and Design: Ensure adequate exit points relative to crowd size, improve crowd flow management, and use technologies for real-time crowd monitoring.
  • Communication and Coordination: Effective communication between organizers and attendees is crucial for issuing warnings and managing crowd movements.

Notable Deadly Stampedes and Their Causes:

  • Moscow, Russia (1896): Rumors of souvenir shortages led to a deadly surge.
  • Allahabad, India (1954): Lack of crowd control and barriers led to a surge at the Kumbh Mela.
  • Lima, Peru (1963): Tear gas used during a football match triggered panic in enclosed spaces.
  • Wai, India (2005): Slippery steps during a pilgrimage resulted in a tragic stampede.

Way forward: 

  • Crowd Monitoring Systems: Implement technologies such as CCTV cameras, crowd density sensors, and real-time monitoring software to detect and respond to overcrowding or sudden surges in crowd movement.
  • Communication Systems: Establish robust communication networks between event organizers, security personnel, and attendees. Use public address systems and mobile alerts to convey emergency instructions and warnings promptly.
  • Emergency Response Plans: Develop and rehearse comprehensive emergency response plans that include rapid evacuation procedures, medical assistance points, and coordination with local emergency services.

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Disasters and Disaster Management – Sendai Framework, Floods, Cyclones, etc.

Factory accidents, a pointer to rusty inspection reform  

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Government steps taken to deal with fatal industrial accidents

Mains level: Causes of the fatal industrial accidents

Why in the news?

In May 2024, an explosion at a reactor in a chemical factory within the Dombivli Maharashtra Industrial Development Corporation (MIDC) area caused fatalities and injuries among workers and local residents.

Present Scenario in India       

  • India continues to witness frequent fatal industrial accidents, often due to non-compliance with safety regulations, inadequate inspections, and compromised safety practices.
  • Recent incidents, such as the Dombivli MIDC chemical factory explosion, highlight the recurring nature of these accidents and their devastating impact on lives and infrastructure.
  • There is a significant disparity between the number of registered factories and the inspection rates across states like Maharashtra, Gujarat, and Tamil Nadu.

Causes of fatal industrial accidents   

  • Non-compliance with Safety Regulations: Many industrial accidents occur due to the failure of companies to adhere to mandated safety regulations and standards. Examples include improper maintenance of machinery, lack of safety equipment, and inadequate training of personnel in handling hazardous materials.
  • Inadequate Maintenance and Inspection Practices: Poor maintenance of industrial equipment and facilities can lead to malfunctions and accidents. Insufficient or irregular inspection practices contribute to undetected hazards and safety violations that increase the risk of accidents.
  • Human Error and Unsafe Practices: Accidents often result from human errors such as negligence, fatigue, or lack of training. Unsafe work practices, including shortcuts taken to save time or reduce costs, can compromise safety standards and escalate the likelihood of accidents.

Need for the right reforms 

  • Strengthening Regulatory Framework: Reforms should focus on updating and strengthening safety regulations to align with international standards and best practices. There is a need to close loopholes and ambiguities in existing laws to enhance clarity and enforceability.
  • Improving Inspection and Enforcement: Enhancing the capacity and effectiveness of regulatory bodies responsible for inspecting industrial facilities. Increasing the number of qualified inspectors, improving their training, and implementing advanced inspection techniques like digital monitoring and real-time compliance checks.
  • Promoting Transparency and Accountability: Establishing transparent mechanisms for reporting and investigating industrial accidents to identify root causes and prevent recurrence.

What can be the solution? (Way forward)

  • Enhanced Regulatory Oversight: Strengthening and strictly enforcing safety regulations and standards across all industries. Regular updates to ensure regulations are comprehensive, up-to-date with technological advancements, and aligned with international best practices.
  • Improving Inspection and Compliance: Increasing the number of qualified inspectors and improving their training and capabilities.Implementing regular and surprise inspections using modern technologies such as digital monitoring and remote sensing to ensure compliance with safety standards.
  • Promoting Safety Culture: Encouraging a proactive safety culture within industries through training, awareness programs, and incentives for compliance.

Mains PYQ: 

Q What is the significance of Industrial Corridors in India? Identifying industrial corridors, explain their main characteristics. (UPSC IAS/2018)

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Foreign Policy Watch: India-France

An overview of the French elections

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Election of French President

Mains level: Impact of French on India

Why in the news? 

On June 30, during the first phase of the French elections called after President Emmanuel Macron unexpectedly dissolved parliament, the far-right National Rally (RN) and its allies emerged as frontrunners with a 33% vote share.

Why did French President Emmanuel Macron decide to dissolve parliament and call for snap elections?

  • Strategic Decision: Macron dissolved parliament three years early to seek a clear majority for governance. His centrist bloc suffered a major defeat in the European Parliament elections against the RN. The decision aimed to consolidate votes against the rising far-right influence.
  • Low Approval Ratings: Macron’s approval ratings plummeted to 36%. The snap election was seen as a gamble to prevent the RN from gaining more power.

How did the far-right National Rally become so popular?

  • Rebranding and Policy Changes: Under Marine Le Pen, the RN rebranded from the National Front (FN). The party softened its stance on extreme policies, like leaving the EU.
  • Response to Societal Issues: Capitalized on fears of cultural clashes, cost-of-living crises, and dissatisfaction with Macron’s policies. Opposed immigration and advocated for ‘national priority’ policies favoring French citizens in social services.
  • Political Strategy: Increased its presence in provincial towns and among blue-collar workers. Rose from 7 seats to 89 in the French parliament in 2022, aiming for 240-300 seats now.

How are the two rounds of elections conducted in France?

  • First Phase: Equivalent to a qualifying round where candidates need at least 12.5% of locally registered votes.Candidates who get more than half the votes win outright.
  • Second Phase: Candidates meeting the qualifying criteria move to the second round. Common practice of ‘horse-trading’ where parties form alliances to avoid splitting votes.
  • Overall Structure:577 seats in the French parliament. A party needs 289 seats for an absolute majority.

Why have left-wing parties also formed a bloc?

  • Republican Front Strategy: Centrist and left-wing parties team up to prevent right-wing parties from gaining power.Formation of the New Popular Front is a reference to the 1936 alliance against far-right rioters.
  • Electoral Tactics: Over 200 candidates from centre and left alliances have dropped out to consolidate votes against the RN. Aimed at countering the RN’s rise and preventing fragmentation of the anti-RN vote.
  • Challenges and Unity: Presence of controversial leftist figures like Jean-Luc Mélenchon has made the unity fragile.Despite internal differences, the bloc aims to present a united front against the far-right surge.

Conclusion: The rise of the far-right National Rally in France may lead to stricter immigration policies, affecting Indian students, workers, and diaspora. Economic relations could face uncertainties, impacting trade and bilateral cooperation. So,India’s diplomatic strategies may need adjustments to navigate the changing political landscape in France.

Mains PYQ: 

Q Critically examine the procedures through which the Presidents of India and France are elected. (UPSC IAS/2022)

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