Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

Why was the no-detention policy rolled back?

Note4Students

From UPSC perspective, the following things are important :

Mains level: Issues in the education system;

Why in the News?

Recently, the Union government revised the Rules of the Right to Education Act, 2009, permitting schools to retain students in Classes 5 and 8 if they fail to meet the promotion criteria based on a year-end examination.

What led to the amendment of the Right to Education Act, 2009 Rules?

  • Significant Learning Gaps: Surveys, including the Annual Status of Education Report (ASER), revealed alarming deficiencies in foundational skills among students. For example, a substantial percentage of Class 5 students were unable to read at their grade level, indicating a pressing need for intervention.
  • Declining Academic Performance: National Achievement Surveys showed a downward trend in student performance as they progressed through grades, with average scores dropping significantly from Class 3 to Class 8. This decline raised concerns about the effectiveness of the no-detention policy.
  • Impact of COVID-19: The disruptions caused by the pandemic exacerbated existing learning gaps, prompting educational authorities to reconsider policies that may have contributed to inadequate learning outcomes.
  • Ineffective Implementation of Continuous and Comprehensive Evaluation (CCE): The original intent of the RTE Act included CCE to assess students continuously. However, its poor implementation led to many schools neglecting assessments altogether, resulting in automatic promotions without evaluating students’ actual learning.

What are the new rules? 

  • Rollback of No-Detention Policy: The amendment effectively rolls back the no-detention policy that was a fundamental aspect of the RTE Act, which previously mandated that no child could be held back until completing elementary education (Classes 1 to 8). This policy aimed to reduce dropout rates by promoting students regardless of their academic performance.
  • Promotion Criteria: Under the new rules, students in Classes 5 and 8 can be detained if they do not pass their year-end exams. However, they will be given a second chance through a re-examination after receiving two months of additional teaching.
  • Implementation of Continuous Evaluation: The amendment is intended to support better evaluation practices by allowing for regular assessments rather than relying solely on final examinations. This aims to ensure that students are adequately prepared before advancing to higher grades.

What have schools been allowed to do? 

  • Detaining Students: Schools can now hold back students in Classes 5 and 8 if they fail to meet the promotion criteria after a year-end examination. This marks a departure from the previous no-detention policy that prohibited such actions until the completion of elementary education.
  • Re-Examination Opportunities: If a student does not pass the initial examination, they are given an opportunity for a re-examination within two months after receiving additional instruction. If they still do not meet the criteria after this second chance, they can be detained in their current class.
  • Monitoring and Support: The rules require class teachers to identify learning gaps and provide specialized support to students who are at risk of being held back. The head of the school is also mandated to monitor the progress of these students.
  • Competency-Based Assessments: The examinations and re-examinations are intended to be competency-based, focusing on holistic development rather than rote memorization.
  • Implementation Across Central Schools: This amendment applies to around 3,000 central schools, including Kendriya Vidyalayas and Jawahar Navodaya Vidyalayas, extending the option for detention beyond state-run schools.

Is there something wrong with the appraisal system? 

  • Poor Implementation of Continuous Evaluation: The original aim of continuous and comprehensive evaluation (CCE) was undermined by inadequate resources and training for teachers. Many schools failed to conduct meaningful assessments, leading to automatic promotions without evaluating students’ actual learning outcomes.
  • Lack of Accountability: The previous no-detention policy created an environment where accountability for student performance diminished. Teachers often did not engage in effective monitoring or support for students struggling academically, resulting in significant learning gaps.
  • Focus on Final Examinations: The shift towards allowing detention may lead to a renewed emphasis on final examinations rather than continuous assessment throughout the academic year, potentially reversing some of the progressive educational practices intended by the RTE Act.

Who should be made accountable?

  • Teachers: Teachers should be held accountable for their students’ learning outcomes. They are crucial in identifying learning gaps, providing necessary support, and ensuring that all students receive adequate attention and instruction.
  • School Administrators: School heads and administrators must monitor student progress and implement effective teaching strategies. They are responsible for creating an environment that encourages accountability among teachers and supports student learning.
  • Education Authorities: Government bodies and education authorities at both state and national levels should be accountable for implementing educational policies effectively.
  • Parents and Communities: Engaging parents and local communities in the educational process can enhance accountability.
  • Policymakers: Lawmakers and policymakers must be accountable for creating a robust framework that supports quality education. This includes adequate funding, resource allocation, and the establishment of clear standards and expectations for schools.

What are some of the best ways to test a child’s learning? (Way forward)

  • Continuous and Comprehensive Evaluation (CCE): Implement regular assessments through a mix of formative (ongoing, classroom-based) and summative (end-of-term) evaluations to track progress across cognitive, emotional, and social domains.
  • Skill-Based Assessments: Focus on grade-appropriate competencies in reading, writing, and arithmetic through practical tasks, quizzes, and interactive activities, rather than relying solely on rote-based exams.
  • Individualized Feedback Mechanisms: Use assessments that provide personalized insights into a child’s strengths and weaknesses, allowing for tailored remedial interventions to address specific learning gaps.

Mains PYQ:

Q The Right of Children to Free and Compulsory Education Act, 2009 remains indadequate in promoting incentive-based system for children’s education without generating awareness about the importance of schooling. Analyse. (UPSC IAS/2022)

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Roads, Highways, Cargo, Air-Cargo and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.

LEADS 2024’ Report Released

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Logistics Ease Across Different States (LEADS) 2024 report;

Mains level: Significance of LEADS;

Why in the News?

The Logistics Ease Across Different States (LEADS) 2024 report, released by the Union Minister, outlines key objectives and performance metrics aimed at enhancing India’s logistics sector.

What are the Aims and Objectives of  Logistics Ease Across Different States (LEADS)?

  • The primary aim is to improve logistics efficiency across states and union territories (UTs), thereby facilitating trade and reducing transaction costs essential for economic growth.
  •  States are encouraged to collaborate with the private sector to develop action plans that attract investments in logistics.
  • Emphasis is placed on promoting green logistics and adopting sustainable practices in logistics operations.
  • The report advocates for the integration of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Data Analytics to enhance operational efficiency.
  • There is a focus on workforce inclusivity and skill development to boost the logistics sector’s capabilities.
LEADS 2024 evaluates logistics performance based on four key pillars:

  • Logistics Infrastructure: Assessment of physical infrastructure supporting logistics activities.
  • Logistics Services: Evaluation of the quality and efficiency of logistics services available.
  • Operating and Regulatory Environment: Analysis of the regulatory framework affecting logistics operations.
  • Sustainable Logistics: Newly introduced pillar focusing on environmental sustainability within the logistics sector.

Key Performance Highlights of 2024

  • Achievers by Group:
    • Coastal Group Achievers: Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu.
    • Landlocked Group Achievers: Haryana, Telangana, Uttar Pradesh, Uttarakhand.
    • North-Eastern Group Achievers: Assam, Arunachal Pradesh.
    • Union Territories Achievers: Chandigarh, Delhi.
  • Fast Movers and Aspirers:
    • Fast Movers include states like Andhra Pradesh, Goa (Coastal); Bihar, Himachal Pradesh (Landlocked); Meghalaya, Mizoram (North-Eastern).
    • Aspirers include Kerala, West Bengal (Coastal); Chhattisgarh, Jharkhand (Landlocked); Manipur (North-Eastern).

What is the role of Public-Private Partnerships (PPPs) and skill development in transforming India’s logistics sector as per the recommendations in the LEADS 2024 report?

Role of Public-Private Partnerships (PPPs)

  • Enhancing Infrastructure and Efficiency: The report advocates for leveraging PPPs to improve logistics infrastructure and services. By collaborating with private entities, states can enhance operational efficiency, reduce costs, and attract investments essential for developing robust logistics frameworks.
  • Facilitating Multi-Modal Hubs: PPPs are encouraged to establish multi-modal logistics hubs, which can streamline operations and improve last-mile connectivity. This approach aims to create an integrated logistics network that enhances trade facilitation across regions.
  • Promoting Transparency and Accountability: The involvement of private partners in logistics projects is expected to promote transparency through competitive bidding processes, thereby ensuring better governance and accountability in project execution.

Role of Skill Development

  • Workforce Inclusivity: The report highlights the importance of skill development initiatives aimed at fostering inclusivity within the workforce. By enhancing the skills of workers, particularly women, the logistics sector can benefit from a more diverse talent pool.
  • Adoption of New Technologies: Skill development programs are crucial for equipping the workforce with knowledge about advanced technologies such as Artificial Intelligence (AI) and Data Analytics. This technological proficiency is essential for improving operational efficiencies and adapting to evolving industry demands.
  • Boosting Sector Competitiveness: By focusing on skill enhancement, the logistics sector can increase its competitiveness on a global scale. A well-trained workforce can lead to improved service delivery, innovation, and overall productivity within the sector.

Way forward: 

  • Strengthen Public-Private Partnerships (PPPs): Foster collaboration between states and the private sector to develop multimodal logistics hubs, enhance last-mile connectivity, and improve infrastructure transparency through competitive bidding processes.
  • Promote Sustainability and Skill Development: Integrate green logistics practices, adopt advanced technologies (AI, ML), and implement comprehensive skill development programs to create an inclusive and efficient logistics ecosystem.

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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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Why is rupee weakening against dollar?

Note4Students

From UPSC perspective, the following things are important :

Mains level: Rupee depreciation;

Why in the News?

In the last week of December 2024, the rupee dropped below 85 against the U.S. dollar, hitting a new low of 85.81. The rupee fell by about 3% in 2024, continuing its long-term decline against the dollar.

What has caused the currency to depreciate? 

  • Exit of Foreign Investors: A significant driver of the rupee’s depreciation has been the exit of foreign portfolio investors (FPIs) from Indian markets. In 2024, FPIs pulled out substantial amounts from equities, leading to increased selling pressure on the rupee.
  • Widening Trade Deficit: India’s trade deficit has widened due to high imports, particularly of crude oil and gold, compared to its exports. This increased demand for foreign currencies (like the U.S. dollar) to pay for these imports has contributed to the rupee’s weakening.
  • Monetary Policy Differences: The Reserve Bank of India’s relatively looser monetary policy compared to the U.S. Federal Reserve has resulted in higher inflation rates in India. This inflation differential makes Indian assets less attractive to foreign investors, further reducing demand for the rupee.
  • Global Economic Factors: Geopolitical tensions, such as the Russia-Ukraine war and rising global crude oil prices, have created volatility in the markets, leading to capital outflows from emerging markets like India.
    • The other reason is that the strengthening U.S. dollar amid higher U.S. bond yields has made investments in the U.S. more attractive compared to India.

What could be the impact of Rupee depreciation?

  • Increased Import Costs: A weaker rupee raises the cost of imports, particularly for essential goods such as crude oil, fertilizers, and edible oils. This increase in import bills can lead to a higher overall trade deficit, which reached an all-time high of $37.8 billion in November 2024, exacerbating economic vulnerabilities.
  • Inflationary Pressures: The rising costs of imported goods contribute to inflation, making everyday goods more expensive for consumers. This can lead to higher living costs and reduced purchasing power, as seen with the increased prices of food and fuel due to higher import expenses.
  • Impact on Economic Growth: The combination of rising inflation and increased costs can dampen economic growth. Higher import bills can create upward pressure on interest rates, making borrowing more expensive and potentially slowing down investment and consumption.

Why made the central bank to intervene?

  • Stabilizing Currency Value: The Reserve Bank of India (RBI) intervened in the forex market to stabilize the rupee and prevent excessive volatility that could disrupt economic stability. By selling dollars from its reserves, the RBI aimed to support the rupee’s value against the dollar.
  • Preventing Inflationary Pressures: A depreciating rupee increases the cost of imports, particularly essential commodities like crude oil, which can exacerbate inflation domestically. The RBI’s intervention seeks to mitigate these inflationary pressures by maintaining a more stable exchange rate.
  • Maintaining Investor Confidence: By actively managing the currency’s value, the RBI aims to instill confidence among investors regarding India’s economic stability and attractiveness as an investment destination. This is crucial for sustaining foreign investment inflows and supporting economic growth.

Way forward: 

  • Diversify Export Markets and Reduce Dependence on Imports: India should focus on enhancing its exports to non-traditional markets while exploring alternatives to reduce dependence on high-cost imports, especially crude oil and gold.
  • Monetary Policy Coordination and Strengthening Fundamentals: The RBI should work towards aligning its monetary policy with global trends while ensuring domestic inflation remains under control.

Mains PYQ:

Q How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?  (UPSC IAS/2018)

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

India needs to prioritise preventive care

Note4Students

From UPSC perspective, the following things are important :

Mains level: Issues related to health care;

Why in the News?

Non-communicable diseases (NCDs) like heart disease, stroke, diabetes, and cancer are rising sharply in India which causing a heavy financial burden. In 2022, NCDs accounted for 65% of all deaths.

Why should India shift its focus from curative to preventive healthcare?

  • Improved Health Outcomes: Preventive healthcare allows for early detection and management of health issues, which can lead to better overall health, a higher quality of life, and potentially increased lifespan.
  • Early diagnosis helps mitigate serious complications associated with chronic diseases like diabetes, heart disease, and cancer.
  • Cost Savings: Investing in preventive care can significantly reduce healthcare costs. By preventing illnesses or catching them early, individuals can avoid expensive treatments and hospitalizations.
  • Reduced Burden on Healthcare Systems: With a proactive approach to health, the pressure on India’s already strained healthcare infrastructure can be alleviated. Preventive care can help manage the rising incidence of non-communicable diseases (NCDs), which accounted for about 65% of deaths in 2022.
  • Economic Productivity: A healthier population contributes to increased productivity. Chronic illnesses often lead to absenteeism and reduced work capacity, which can negatively impact economic growth.
  • Addressing Rising Disease Burden: The growing prevalence of NCDs in India necessitates a shift toward preventive measures. With many individuals facing disease burdens earlier in life, focusing on prevention can help manage these conditions more effectively and sustainably.

How can India effectively shift its focus from curative to preventive healthcare?

  • Strengthening Early Intervention: Enhancing the capabilities of Ayushman Health and Wellness Centres to facilitate targeted screenings and early interventions is crucial. This can involve using data analytics to identify high-risk populations and provide tailored preventive care services.
  • Encouraging Regular Screenings: Promoting regular health screenings, especially for individuals aged 40-60, can help identify conditions early. Collaborating with private health providers and insurers to offer subsidized screening programs can make preventive care more accessible.
  • Policy Incentives: Revising tax deductions for preventive health checks can incentivize individuals to prioritize their health. Increasing the limit from ₹5,000 to ₹15,000 under Section 80D of the Income Tax Act can encourage more people to undergo comprehensive health assessments.

What role do technology and innovation play in enhancing preventive healthcare accessibility?

  • AI and Digital Health Solutions: The integration of AI-enabled imaging modalities and telemedicine can enhance the accessibility of preventive healthcare services. These technologies can facilitate lower-cost screenings and improve diagnostic accuracy, especially in underserved areas.
  • Health Data Management: The National Digital Health Mission (NDHM) can play a pivotal role in managing health data effectively, enabling better tracking of health trends and facilitating targeted interventions based on population health analytics.
  • Wearable Health Devices: The use of wearable devices for monitoring vital signs and health metrics can empower individuals to take proactive steps in managing their health, leading to earlier detection of potential health issues.

What are the expected economic and health outcomes of prioritizing preventive care?

  • Reduced Healthcare Costs: By prioritizing preventive care, India could significantly lower the overall financial burden on individuals and the healthcare system.
    • Early diagnosis and intervention can prevent the escalation of diseases that require expensive treatments.
  • Improved Health Outcomes: A focus on preventive healthcare is likely to lead to better health outcomes, including reduced morbidity and mortality rates associated with non-communicable diseases (NCDs). This shift can enhance the quality of life for many individuals.
  • Economic Resilience: Investing in preventive healthcare can contribute to economic stability by reducing productivity losses associated with chronic diseases. A healthier population is more productive, which can drive economic growth and reduce the financial strain on households.

Way forward: 

  • Expand Preventive Care Infrastructure: Strengthen health centers with early screening capabilities, utilize data analytics to identify high-risk groups, and collaborate with private providers to offer affordable preventive services.
  • Incentivize Preventive Health Practices: Revise tax benefits for health check-ups and promote the use of technology, such as wearable devices and telemedicine, to increase accessibility and awareness of preventive healthcare.

Mains PYQ:

Q The increase in life expectancy in the country has led to newer health challenges in the community. What are those challenges and what steps need to be taken to meet them?  (UPSC IAS/2022)

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Air Pollution

India’s emissions inventory & efforts at mitigation

Note4Students

From UPSC perspective, the following things are important :

Mains level: Initiatives related to climate change;

Why in the News?

India recently shared a report about its efforts to fight climate change. The report includes details about how much greenhouse gases (GHG) the country produces and the steps it has taken to reduce these emissions as part of its global climate promises.

What is the Biennial Update Report (BUR)?

  • The Biennial Update Report (BUR) is a detailed report that developing countries, including India, submit to the United Nations Framework Convention on Climate Change (UNFCCC). This report outlines their efforts toward climate action, as mandated under the Paris Agreement.
  • BURs include an overview of national circumstances related to climate, socio-economic factors, and forestry, along with a comprehensive inventory of national greenhouse gas (GHG) emissions and their sources. They also detail national action plans for emission mitigation and the support received for climate-related initiatives.

What are the BUR-4’s highlights and submissions on emissions inventory?

  • Total GHG Emissions: In 2020, India’s total GHG emissions were reported at 2,959 million tonnes of CO2 equivalent. After accounting for land use, land-use change, and forestry (LULUCF), net emissions were 2,437 million tonnes, reflecting a 7.93% decrease from 2019 levels.
  • Reduction in Emissions Intensity: The report indicates that from 2005 to 2020, India’s emissions intensity of GDP decreased by 36%. This metric measures GHG emissions per unit of economic output, highlighting improved energy efficiency and a shift towards renewable energy sources.
  • Sectoral Contributions: The energy sector was the largest contributor to emissions, accounting for 75.66%, with electricity production alone responsible for 39% of total emissions. Agriculture contributed 13.72%, while industrial processes and waste management accounted for 8.06% and 2.56%, respectively.

What does BUR-4 say about the status of India’s climate commitments?

  • The BUR-4 outlines India’s commitment to its Nationally Determined Contributions (NDCs) under the Paris Agreement, aiming for a 45% reduction in GDP emission intensity by 2030 compared to 2005 levels.
  • The report notes that between 2005 and 2021, India created an additional carbon sink of approximately 2.29 billion tonnes of CO2 equivalent through enhanced forest and tree cover, contributing significantly to its climate goals.

What has the report said about India’s tech needs for climate-conscious growth? (Way forward)

  • Advanced Technologies for Low-Carbon Growth: The report emphasizes the necessity for adopting cutting-edge technologies across various sectors, including solar energy, wind energy, bioenergy, electric vehicles, and carbon capture and storage.
  • Capacity Building: Strengthening institutional frameworks and workforce capabilities is essential for effective implementation of climate policies and programs. This involves training personnel and developing skills necessary to manage and operate advanced technologies.
  • Financial and Technological Support: The BUR-4 identifies a significant gap in technology transfer from developed countries, which hampers India’s ability to implement necessary climate solutions. India calls for increased international cooperation to facilitate technology transfer, eliminate intellectual property barriers, and provide financial assistance to support its climate initiatives.
  • Integration of Technology in Key Sectors: The report highlights the importance of integrating advanced technologies into critical sectors that contribute to emissions, such as agriculture and energy.

Mains PYQ:

Q ‘Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (UPSC IAS/2022)

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

India Secures 14.3% of Global Remittances in 2024: World Bank

Note4Students

From UPSC perspective, the following things are important :

Mains level: Significance of Remittances;

Why in the News?

In 2024, India received a record $129.1 billion in remittances which marked the highest share for any country since 2000 as per the World Bank.

What are the Trends in Remittances flow?

  • Record Inflows: In 2024, India received an estimated $129.1 billion in remittances, marking the highest amount ever recorded for any country in a single year.
  • Global Share: India accounted for 14.3% of global remittances, the highest share since the turn of the millennium.
  • Growth Rate: The growth rate of remittances in 2024 was approximately 5.8%, a significant increase from 1.2% in 2023.
  • Top Recipients: Following India, Mexico and China received the largest remittances, with Mexico at $68 billion and China at $48 billion.

What are the Factors Responsible for High Remittances in India?

  • Large Diaspora: India has one of the largest diaspora populations globally, with over 18 million Indians living abroad, contributing significantly to remittance inflows.
  • Shift to High-Income Countries: There has been a trend of Indian migrants moving to high-income economies such as the United States, United Kingdom, and Australia, where job opportunities are more abundant.
  • Diverse Skill Levels: Indian migrants include highly skilled professionals (in sectors like IT and healthcare) as well as semi-skilled and unskilled labourers, broadening the scope for remittance generation.
  • Recovery of Job Markets: The recovery of job markets in high-income countries post-pandemic has driven an increase in remittance flows as employment opportunities have improved.

What is the significance of high Remittances?

  • Economic Support for Households: Remittances serve as a crucial source of income for many families in India, supporting their daily needs and contributing to overall household welfare.
  • Impact on National Economy: In 2024, remittances constituted approximately 3.3% of India’s GDP, highlighting their role in bolstering the economy.
  • Comparison with Other Financial Flows: Remittances have outpaced other forms of external financial flows, such as Foreign Direct Investment (FDI) and Official Development Assistance (ODA), indicating their importance for funding current account deficits and fiscal shortfalls in low- and middle-income countries.
  • Long-Term Growth Trends: Over the past decade, remittances to low-and-middle-income countries have increased by 57%, underscoring their growing significance as a stable source of income compared to declining FDI.

What are the negative impacts of brain drain?

Even though remittances are good for the country, they have negative signals for any country like brain drain. 

  • Loss of Skilled Labor: Brain drain leads to a significant depletion of skilled professionals in the home country, resulting in shortages in critical sectors such as healthcare, education, and technology.
    • This loss hampers the country’s ability to innovate and develop, as there are fewer qualified individuals to drive progress and maintain essential services.
  • Economic Consequences: The exodus of skilled workers results in decreased tax revenues for the home country, which can limit public spending on infrastructure and social programs. This financial shortfall can stunt economic growth and development, exacerbating existing challenges within the economy.
  • Impeded National Development: Countries experiencing brain drain may face slower overall development due to the loss of human capital. This can create a cycle of underdevelopment, where the lack of skilled labour leads to reduced investment opportunities and further emigration, perpetuating the cycle of talent loss and economic stagnation.

Way forward: 

  • Enhance Domestic Opportunities: Strengthen education, healthcare, and innovation ecosystems to retain skilled professionals by providing competitive salaries, career growth, and improved living standards.
  • Engage Diaspora Strategically: Leverage the Indian diaspora for knowledge transfer, investments, and partnerships, creating pathways for their contribution to national development while maintaining ties with homegrown talent.

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Insolvency and Bankruptcy Code

India, cross-border insolvency and legal reform

Note4Students

From UPSC perspective, the following things are important :

Mains level: Issues related to insolvency;

Why in the News?

The current state of cross-border insolvency laws is poor, with rules that cannot be enforced and slow progress in making necessary changes. This situation needs to be fixed.

How did the evolution of the cross-border insolvency framework in India?

  • Post-Independence Legal Framework: After Independence, India’s insolvency laws focused on domestic cases and did not address cross-border insolvency, leaving a significant gap in the legal framework.
  • Committee Recommendations and IBC Drafting: In the 2000s, committees like the Eradi, Mitra, and Irani Committees recommended adopting the UNCITRAL Model Law, leading to the drafting of the Insolvency and Bankruptcy Code (IBC) in 2015, which initially focused on domestic insolvencies.
  • Incorporation of Cross-Border Provisions: Sections 234 and 235 were introduced in 2016 to facilitate cross-border insolvency, allowing reciprocal agreements and assistance from foreign courts, though their effectiveness was limited by the lack of implementation and reciprocal arrangements.

What are the key challenges in adopting a cross-border insolvency framework in India?

  • Outdated Framework: Current legal provisions, such as Sections 234 and 235 of the Insolvency and Bankruptcy Code (IBC), remain non-notified and unenforceable, rendering them ineffective. Reliance on ad hoc protocols like in the Jet Airways case increases judicial burden, delays resolutions, and reduces asset value.
  • Jurisdictional Issues: Section 60(5) of the IBC limits the jurisdiction of civil courts over insolvency matters, leaving the National Company Law Tribunal (NCLT) as the sole authority. However, the NCLT lacks the power to recognize or enforce foreign judgments.
  • Lack of Reciprocal Arrangements: The absence of reciprocal agreements between India and other nations for cross-border insolvency resolution creates barriers to effective cooperation.
  • Inefficient Court Communication: Outdated communication methods between Indian and foreign courts hinder transparency and efficiency in handling cross-border insolvency matters.
  • Legislative Gaps: The delay in adopting structured frameworks, such as the UNCITRAL Model Law, highlights a critical regulatory gap in managing cross-border insolvencies.

How does India’s proposed legislation align with international standards, such as the UNCITRAL Model Law?

  • India’s proposed amendments to the IBC aim to incorporate elements of the UNCITRAL Model Law on Cross-Border Insolvency, which provides a structured framework for international cooperation and coordination in insolvency matters.
    • By adopting this model, India seeks to enhance its legal framework to better manage cross-border insolvencies and align with global best practices.
  • The recommendations from various expert committees, including the Insolvency Law Committee and the Parliamentary Standing Committee, emphasize the need for a comprehensive approach that includes provisions for recognizing foreign insolvency proceedings and facilitating smoother communication between jurisdictions.

What implications do these reforms have for foreign investment and economic growth in India?

  • Attracting Foreign Investment: A robust cross-border insolvency framework will enhance investor confidence by ensuring that their rights are protected in case of insolvency. This predictability is crucial for attracting foreign direct investment (FDI) into India, as investors seek assurance that their interests will be managed effectively across borders.
  • Facilitating Corporate Restructuring: Improved legal mechanisms for cross-border insolvency will enable Indian companies operating internationally to restructure more efficiently when faced with financial difficulties. This can lead to better asset recovery and preservation of business value, ultimately contributing to economic stability and growth.
  • Strengthening Economic Ties: By aligning its insolvency laws with international standards, India can foster stronger economic relationships with other nations, facilitating smoother trade and investment flows. This alignment is essential as India’s economic integration with global markets continues to grow.

Way forward: 

  • Adopt UNCITRAL Model Law: Expedite the implementation of the UNCITRAL Model Law on Cross-Border Insolvency to establish a predictable, structured framework for managing international insolvency cases, fostering investor confidence and global integration.
  • Enhance NCLT Capacity: Strengthen the National Company Law Tribunal (NCLT) with expanded jurisdiction and training to effectively handle cross-border insolvency cases, alongside modernizing judicial coordination mechanisms through international guidelines like JIN.

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Russian Invasion of Ukraine: Global Implications

Ukraine ends supply of Russian gas to Europe

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Urengoy-Pomary-Uzhgorod pipeline;

Mains level: Geopolitical tension in Europe;

Why in the News?

For over 40 years, Russian gas has been transported to Europe through Ukraine, but these supplies are set to cease on January 1, following Ukraine’s Naftogaz decision not to renew its most recent five-year transit agreement with Russia’s Gazprom.

Note: Student you can use this content in Prelims for facts related to map and mains exam for substantiate the argument related to geopolitical tension in Europe.

Do you know about the Urengoy-Pomary-Uzhgorod pipeline?

  • The Urengoy-Pomary-Uzhgorod pipeline, also known as the Brotherhood pipeline, is a significant natural gas export route from Russia to Europe, primarily traversing Ukraine. The pipeline starts at the Urengoy gas field in northwest Siberia and extends southwest to Uzhhorod, Ukraine, near the Slovakian border.
  • It spans approximately 4,500 kilometers (2,800 miles), with about 1,160 kilometers (720 miles) located in Ukraine.
  • The pipeline was commissioned in 1984 and has been a crucial part of Russia’s gas export strategy to Europe.

What is the volume of gas supplied through Ukraine?

  • Historical Context: At its peak, the pipeline system, including the Urengoy-Pomary-Uzhgorod pipeline, delivered approximately 201 billion cubic meters (bcm) of gas to Europe in 2018. However, this volume has drastically decreased over the years due to geopolitical tensions and the ongoing conflict in Ukraine.
  • Recent Figures: In 2023, only about 15 bcm of gas was shipped through Ukraine, a significant drop from 65 bcm when the last five-year contract began in 2020.

What are the Possible Impacts?

  • Economic Consequences for Ukraine: Ukraine is expected to lose up to $1 billion annually in transit fees due to the cessation of gas flows. To mitigate this loss, it plans to quadruple gas transmission tariffs for domestic consumers, which could burden its industry with additional costs exceeding $38.2 million per year.
  • Impact on Gazprom: Russia’s Gazprom is projected to lose around $5 billion in gas sales as a result of this halted transit.
  • European Energy Security: The European Union has prepared for this transition and does not anticipate immediate impacts on consumer prices.
    • Countries like Slovakia and Austria have secured alternative gas supplies from sources such as Norway and LNG imports from the U.S. and Qatar.
  • Hungary will continue receiving Russian gas through the TurkStream pipeline under the Black Sea.

TurkStream pipeline

  • Energy Crisis in Moldova: The cessation has led to an energy emergency in Transdniestria, a breakaway region of Moldova that relies on these transit flows, resulting in cutoffs of heating and hot water supplies for residents

Way forward: 

  • Enhanced Energy Diversification: Europe and Ukraine should continue to strengthen alternative energy supply routes, including LNG imports and renewable energy projects, to reduce reliance on Russian gas and ensure long-term energy security.
  • Support for Affected Regions: Provide immediate humanitarian and financial assistance to regions like Transdniestria and Moldova for energy infrastructure upgrades, while encouraging energy-efficient solutions to mitigate the crisis.

Mains PYQ:

Q What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC IAS/2020)

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Crop Insurance – PMFBY, etc.

Union Cabinet approved the continuation of PMFBY and RWBCIS until 2025-26

Note4Students

From UPSC perspective, the following things are important :

Mains level: Initiatives related to agriculture;

Why in the News?

The government extended two crop insurance schemes, Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS), for another year until 2025-26. It also set aside ₹824.77 crore to improve these schemes using advanced technology.

What are the provisions and key features of PMFBY?

  • Comprehensive Risk Coverage: PMFBY provides coverage against all non-preventable natural risks from pre-sowing to post-harvest stages, including droughts, floods, and pests.
  • Subsidised Premium Rates: Farmers pay a fixed premium of 1.5% for rabi crops, 2% for kharif crops, and 5% for cash crops. The remaining premium is shared between the central and state governments.
  • Financial Support: It offers financial assistance to farmers suffering from crop loss due to unforeseen events, aiming to stabilise their income and encourage modern agricultural practices.
  • Technology Integration: The scheme incorporates technological initiatives like YES-TECH for yield estimation and WINDS for weather data collection, enhancing efficiency in claim settlement.

Why was RWBCIS introduced?

  • Financial Protection Against Weather Risks: RWBCIS was introduced to safeguard farmers from financial losses caused by adverse weather conditions such as rainfall, temperature fluctuations, wind, and humidity, which can severely impact crop yields and farmer income.
  • Comprehensive Coverage for Various Crops: The scheme aims to provide insurance protection for a wide range of crops, including food crops, oilseeds, and commercial or horticultural crops, thereby mitigating the impact of natural calamities like droughts and floods on farmers’ livelihoods.

What is the difference between PMFBY and RWBCIS?

PMFBY (Pradhan Mantri Fasal Bima Yojana) RWBCIS (Restructured Weather-Based Crop Insurance Scheme)
Launch Launched in 2016 (replacing NAIS and MNAIS). Introduced in 2016 to safeguard farmers against adverse weather conditions.
Primary Focus Protects against crop failure due to natural calamities, pests, diseases. Provides insurance based on weather parameters (e.g., rainfall, temperature, wind) to mitigate financial losses from weather extremes.
Risk Assessment Method Area-based approach with crop-cutting experiments, remote sensing, etc.
– Yield vs. threshold yield determines compensation.
Weather-based triggers using data from weather stations.
– Predefined thresholds (e.g., rainfall levels) activate payouts automatically.
Premium Structure Uniform, capped rates for farmers: 2% for Kharif, 1.5% for Rabi, 5% for horticulture/commercial crops.
– No upper limit on government subsidy.
– Varies based on weather risks and policy design.
– Similar subsidy approach, but rates are dependent on specific weather-based insurance products.
Coverage All notified crops in a defined area.
– Includes food crops, oilseeds, and commercial/horticultural crops.
– Covers food crops, oilseeds, and commercial/horticultural crops for weather-induced losses (e.g., drought, flood, cyclone, hailstorm).
Enrollment – Initially compulsory for farmers with crop loans (KCC).
– Made voluntary for all farmers from Kharif 2020.
All farmers, including sharecroppers and tenant farmers, are eligible if they grow notified crops in notified areas.
Key Objectives – Provide financial support and stabilize income in the event of crop failure.
– Encourage innovative and modern farming practices.
– Protect farmers from weather aberrations, ensuring swift compensation when weather thresholds are met or breached.
Unique Features – “One Nation, One Scheme” concept.
Loss-based compensation linked to actual yield shortfall.
Trigger-based system; payouts depend on deviation from normal weather parameters (no extensive damage assessment).

What is the role of FIAT in crop insurance schemes?

The Fund for Innovation and Technology (FIAT) has been established with a corpus of ₹824.77 crore to enhance the implementation of PMFBY and RWBCIS. There are various key roles:

  • Technological Advancement: Funding technological initiatives aimed at improving the assessment of crop damage and expediting claim settlements.
  • Research Support: Facilitating research and development studies that enhance the effectiveness of crop insurance schemes through innovative practices.
  • Improving Accessibility: Aiding in the use of digital technologies for easier enrollment processes and expanding coverage among farmers.

Way forward: 

  • Strengthening Awareness and Accessibility: Increase farmer outreach through targeted awareness campaigns and simplify enrollment processes using digital platforms to ensure maximum participation in crop insurance schemes.
  • Enhanced Technology Integration: Expand the deployment of advanced tools like remote sensing and automated weather monitoring to improve accuracy in loss assessment, and claim settlements, and minimize disputes.

Mains PYQ:

Q How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers? (UPSC IAS/2017)

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Indian Ocean Power Competition

Quad members vow to work vigorously towards a free, open, and stable Indo-Pacific

Note4Students

From UPSC perspective, the following things are important :

Mains level: Importance of QUAD;

Why in the News?

Recently, the Foreign Ministers of the Quad countries issued a joint statement to mark 20 years of their partnership.

What are the Highlights of the Joint Statement?

  • Commitment to a Free and Open Indo-Pacific: The Quad nations reaffirmed their vision of a peaceful, stable, and prosperous Indo-Pacific, emphasizing the importance of effective regional institutions.
  • Support for ASEAN: The ministers expressed unwavering support for the Association of Southeast Asian Nations (ASEAN) and its central role in the region, endorsing the implementation of the ASEAN Outlook on the Indo-Pacific.
  • Humanitarian Assistance and Disaster Relief: They reiterated their commitment to humanitarian assistance and disaster relief, noting ongoing efforts to enhance disaster preparedness and response across the Indo-Pacific.
  • Collective Response to Challenges: The joint statement emphasized collaboration in addressing complex challenges such as climate change, pandemics, maritime security, and emerging technologies.

What are the Strategic Significance of Quad?

  • Regional Stability: The Quad serves as a counterbalance to China’s growing influence in the Indo-Pacific, promoting a rules-based international order that respects sovereignty.
  • Multilateral Cooperation: It fosters cooperation among member nations in various sectors including security, infrastructure development, and technological advancement.
  • Disaster Response Framework: Originating from a joint response to the 2004 Indian Ocean tsunami, the Quad has evolved into a robust partnership capable of coordinating humanitarian efforts during crises.

What are the achievements of QUAD? 

  • Expanded Areas of Cooperation: The Quad has evolved from a security dialogue into a multifaceted partnership, establishing six working groups focused on diverse areas such as climate change, cybersecurity, health security, infrastructure development, critical technologies, and space cooperation.
  • Vaccine Distribution and Health Initiatives: During the COVID-19 pandemic, the Quad successfully coordinated efforts to distribute vaccines, particularly through the Quad Vaccine Partnership.
    • The Quad committed to delivering over 1.2 billion doses of COVID-19 vaccines to countries in the region by 2022.
  • Maritime Security and Regional Stability: The Quad has actively engaged in enhancing maritime security in the Indo-Pacific, conducting joint exercises like  Malabar naval exercises, which include all four member nations (India, Japan, Australia, and the US) and launching initiatives like the Indo-Pacific Partnership for Maritime Domain Awareness (IPMDA).

What are the Challenges Faced by the Quad?

  • Geopolitical Tensions: China’s increasing assertiveness poses significant challenges to the Quad’s objectives in maintaining regional stability.
  • Diverse Interests Among Members: Each member nation has its own national interests and priorities, which can complicate unified action on various issues.
  • Implementation of Initiatives: While there is strong rhetoric around cooperation, effectively implementing initiatives across diverse political landscapes remains a challenge.

What Should Quad Members Do? (Way forward)

  • Strengthen Institutional Frameworks: Establish a formal mechanism or secretariat to streamline decision-making, enhance coordination, and ensure the effective implementation of initiatives.
  • Expand Inclusive Regional Engagement: Deepen partnerships with ASEAN, Pacific Island nations, and other regional stakeholders to build trust, enhance collective capabilities, and counter perceptions of exclusivity.

Mains PYQ:

Q Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (UPSC IAS/2020)

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Judicial Reforms

The nature of dissent in the Indian judiciary

Note4Students

From UPSC perspective, the following things are important :

Mains level: Accountability of Judiciary;

Why in the News?

In the U.S. Supreme Court, dissenting opinions often reflect the political views of judges, as they are appointed by the President and approved by the Senate. In contrast, dissenting opinions in the Indian judiciary cover a wider range, including political, social, and purely intellectual disagreements

What is the significance of dissenting opinions?

  • Preservation of Judicial Independence: Dissenting opinions serve as a safeguard for judicial independence, allowing judges to express their disagreements with majority decisions without fear of repercussions. This fosters a culture of open debate within the judiciary, which is essential for a healthy democracy.
  • Shaping Legal Precedents: Dissent can influence future legal interpretations and decisions. Over time, dissenting views may gain traction and become part of the evolving legal landscape, as seen in cases like ADM Jabalpur and P.V. Narasimha Rao, where dissents later informed subsequent rulings.
  • Encouraging Public Discourse: Dissenting opinions can stimulate public discussion and debate about important legal and constitutional issues. They often highlight alternative perspectives that may resonate with societal values or concerns, thereby enriching democratic dialogue.

How does dissent in the Indian judiciary compare to that in the U.S.?

  • Political Influences: In the U.S., dissent often reflects the political affiliations of justices, who are appointed by the President and confirmed by the Senate. For example, Justice Samuel Alito’s dissents align with conservative viewpoints on issues like abortion and same-sex marriage.
    • In contrast, Indian judges are selected through a collegium system, which aims to reduce political influence on judicial decisions, resulting in dissents that may not necessarily align with current political sentiments.
  • Nature of Dissents: U.S. Supreme Court dissents frequently stem from ideological divides among justices, whereas Indian judicial dissents encompass a broader spectrum, including political, social, and intellectual disagreements.
    • For instance, Justices Khehar and Nazeer in Shayara Bano focused on the social implications of personal law rather than political affiliations.
  • Impact on Law: While both systems recognise the importance of dissent in shaping jurisprudence, Indian dissents have historically led to significant legal changes post-ruling, as seen in cases like Sita Soren where earlier dissents influenced the court’s later position on parliamentary immunity.

What challenges and criticisms surround judicial dissent in India?

  • Risk of Retaliation: Judges who dissent against majority opinions may face professional backlash or career repercussions. Notable cases include Justice H.R. Khanna, who was superseded as Chief Justice after his dissent in ADM Jabalpur, highlighting potential risks for dissenters within the judiciary.
  • Infrequent Dissent: Despite its importance, dissent is relatively rare in the Indian Supreme Court compared to its potential significance. The Chief Justice often avoids dissenting opinions in constitutional bench cases, which raises concerns about conformity over independent judicial reasoning.
  • Public Perception: Judicial dissent can sometimes be viewed negatively by the public or political entities as undermining judicial authority or coherence. This perception can discourage judges from expressing their dissent openly.

What are the accountable-related issues? 

  • High Bar for Impeachment: The process requires “proved misbehaviour or incapacity” and a two-thirds majority in Parliament, making it almost impossible to remove errant judges.
  • Resignation to Evade Accountability: Judges like Justice Soumitra Sen and P.D. Dinakaran resigned before the completion of impeachment proceedings, avoiding scrutiny while retaining post-retirement benefits.
  • Immunity Misuse: Judges continue to enjoy post-retirement benefits even after accusations of misconduct, as seen in Justice Ramaswami’s case, undermining accountability.
  • Limited Scope for Independent Oversight: The judiciary lacks an independent review mechanism outside the Parliament-driven impeachment process, leaving little room for holding judges accountable in real time.

 

What is the review mechanism of committee set up under the Judges (Inquiry) Act, 1968?

  • Initiation: A removal motion, signed by 100 Lok Sabha MPs or 50 Rajya Sabha MPs, is submitted and approved by the Speaker or Chairman to initiate the process.
  • Investigation: A three-member committee (Supreme Court judge, Chief Justice of a High Court, and an eminent jurist) is constituted under the Judges (Inquiry) Act, 1968 to investigate allegations of “proved misbehaviour or incapacity.”
  • Parliamentary Decision: If the committee confirms the charges, the motion is debated in Parliament and requires a two-thirds majority in both Houses for the judge’s removal by the President.

Way forward: 

  • Institutional Support for Dissent: Establish mechanisms to safeguard dissenting judges from career repercussions, such as transparent evaluation criteria and protections for judicial independence, ensuring open debate within the judiciary.
  • Promote Judicial Dialogue: Encourage a culture of constructive dissent by incorporating dissenting opinions into judicial training and fostering recognition of their long-term contributions to legal evolution.

Mains PYQ:

Q Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to appointment of judges of higher judiciary in India. (UPSC IAS/2017)

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Electoral Reforms In India

Tackling delimitation by reversing population control

Note4Students

From UPSC perspective, the following things are important :

Mains level: Challenges related to Delimitation;

Why in the News?

Recently, the Chief Ministers of Andhra Pradesh and Tamil Nadu, N. Chandrababu Naidu and M.K. Stalin, expressed their frustration over the proposed delimitation exercise, which might lead to their states losing parliamentary seats.

How Does Population Control Influence Delimitation?

  • Population as the Basis for Representation: Delimitation exercises are based on the population count, which determines the number of seats allocated to states in Parliament.
  • Southern States’ Success in Population Control: Southern states like Tamil Nadu and Andhra Pradesh, which have achieved lower fertility rates, face the risk of reduced parliamentary representation.
  • Demographic Divide: States with higher population growth (mainly in northern India) may gain more seats, leading to an imbalance in political representation.

What are the implications of current demographic trends on political representation?

  • Seat Redistribution: The impending delimitation exercise, scheduled for 2026, may lead to a significant redistribution of Lok Sabha seats.
    • Estimates suggest that states like Uttar Pradesh could gain up to 14 additional seats, while Tamil Nadu might lose several, decreasing its representation from 39 to potentially 30 seats.
  • Federal Structure Concerns: The southern states argue that using population counts for political representation undermines the federal structure of India. They contend that it is unjust to penalize regions that have successfully managed population growth while rewarding those with higher growth rates.

What are the arguments for and against reversing population control measures during delimitation?

Reversing population refers to attempts to increase fertility rates through incentives, aiming to counteract declining population growth trends.

  • Argument in favour of Reversal:
    • Political Strategy: South political leaders advocate for incentivizing larger families as a means to maintain or increase political representation in light of the delimitation concerns.
    • Cultural Context: There is a push to celebrate larger families as a cultural norm, with comments from leaders suggesting an exaggerated approach to family size as a humorous response to the delimitation threat.
  • Argument against Reversal:
    • Long-term Consequences: Experts argue that reversing fertility rates through incentives may not be effective or sustainable. Historical examples, such as China’s one-child policy, illustrate the challenges and unintended consequences of aggressive population control measures.
    • Social Support Necessity: Encouraging higher birth rates without adequate social support for families could place additional burdens on women and society at large. Effective policies should focus on providing necessary support rather than merely increasing birth rates.

What reforms are necessary for a fair delimitation process? (Way forward)

  • Equitable Representation Criteria: Reforms should consider not only population counts but also socio-economic characteristics, ensuring that regions with successful population management are not unfairly penalized in political representation.
  • Stakeholder Consultations: Increased dialogue among stakeholders is essential to address concerns regarding the delimitation process. This could involve re-evaluating how political representation is determined based on demographic trends and regional development successes.
  • Migration Policies: To address regional population imbalances, promoting migration could serve as a viable solution alongside revising how political representation is allocated based on demographic characteristics rather than sheer numbers alone.

Mains PYQ:

Q Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail. (UPSC IAS/2021)

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Terrorism and Challenges Related To It

On India’s obligations towards the Rohingya

Note4Students

From UPSC perspective, the following things are important :

Mains level: Refugee crises;

Why in the News?

A recent study by The Azadi Project and Refugees International has found that Rohingya refugees detained in India face serious violations of their basic rights. It also criticizes India for not meeting its responsibilities under international human rights agreements.

What has a recent report said about India’s refugee policy for the Rohingya people?

  • Human Rights Violations: The report indicates that Rohingya refugees are subjected to “gross violations of constitutional and human rights,” including arbitrary detention without charges and inhumane living conditions in detention centres.
  • Call for Legal Revisions: It urges India to clarify the legal status of Rohingya refugees and revise outdated laws like the Foreigners Act of 1946 to align with international refugee standards.
  • Recommendations for Action: The report advocates for the immediate release of vulnerable detainees and calls on international actors, including the U.S. and UNHCR, to engage with India on these issues.

What does the 1951 Refugee Convention state?

The 1951 Refugee Convention and its 1967 Protocol establish fundamental principles for the protection of refugees, including:

  • Non-refoulement: This principle prohibits states from returning individuals to countries where they may face persecution or serious harm. It is a cornerstone of international refugee law and is considered customary international law, binding even on states not party to the Convention.
  • Rights of Refugees: The Convention outlines various rights that refugees are entitled to, such as access to legal assistance, work, education, and social services, ensuring their dignity and protection from discrimination.

Note: India is not a signatory to the 1951 United Nations Refugee Convention.

What is India’s stand?

  • Non-signatory Status: India is not a signatory to the 1951 Refugee Convention or its Protocol, which it argues absolves it from legal obligations to provide asylum or adhere to non-refoulement principles.
  • Detention Practices: The Indian government continues to detain Rohingya refugees under domestic laws that classify them as illegal migrants. Recent court rulings have reinforced this stance, stating that while they have a right to life under Article 21 of the Constitution, they lack right to reside or settle in India.
  • Judicial Interpretation: Despite India’s non-signatory status, some High Courts have interpreted international norms as applicable under Article 21, suggesting a potential pathway for legal protections for refugees.

What are India’s international obligations?

  • International Treaties: India is a party to several international human rights treaties that imply obligations related to the treatment of individuals at risk of torture or inhumane treatment. For instance:
    • The International Covenant on Civil and Political Rights (ICCPR) includes provisions against refoulement (forcible return of refugees) under Article 7.
    • Other treaties like the Convention Against Torture also emphasise non-refoulement principles, even if India’s ratification status complicates direct enforcement.
  • Constitutional Mandates: Article 51(c) of the Indian Constitution encourages respect for international law and treaty obligations. Landmark Supreme Court rulings have indicated that international conventions should guide domestic law when local legislation is lacking

Way forward: 

  • Establish a Comprehensive Refugee Policy: India should enact a uniform refugee law aligning with international principles, ensuring legal clarity and protection for all refugees, including the Rohingya, while upholding the constitutional mandate under Article 21.
  • Strengthen Collaboration with UNHCR and Civil Society: Engage with international agencies and local organizations to improve refugee support systems, focusing on humane detention practices, legal aid, and sustainable resettlement initiatives.

Mains PYQ:

Q “Refugees should not be turned back to the country where they would face persecution or human right violation”. Examine the statement with reference to ethical dimension being violated by the nation claiming to be democratic with open society. (UPSC IAS/2021)

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ISRO Missions and Discoveries

Why ISRO’s ‘docking’ mission today is critical for India’s space ambitions?

Note4Students

From UPSC perspective, the following things are important :

Mains level: Space sector;

Why in the News?

Recently, the Indian Space Research Organisation (ISRO) launched its Space Docking Experiment (SpaDeX) in space with a PSLV rocket.

What is SpaDeX mission? 

  • The SpaDeX mission, or Space Docking Experiment, is a significant initiative by the Indian Space Research Organisation (ISRO) aimed at demonstrating advanced in-space docking technology.
  • Docking technology involves manoeuvring two spacecraft into the same orbit, aligning them precisely, and physically joining them to enable modular assembly, resupply, crew transfer, or sample return missions in space.

What is Space Docking?

  • Space docking refers to the process where two spacecraft in orbit rendezvous and physically connect to form a single entity. It is a highly complex and precise maneuver essential for advanced space missions.
  • Key Steps of Space Docking:
  1. Rendezvous: Involves bringing two spacecraft into the same orbit with minimal distance and velocity difference.
  2. Docking: Establishing a mechanical connection between the spacecraft using specialized docking systems.
  3. Power and Resource Sharing: Once docked, the spacecraft can transfer power, fuel, or crew to support joint operations.

What is the significance of India’s achievement in space docking technology?

  • Joining an Elite Club: With the successful completion of the SpaDeX mission, India becomes only the fourth country in the world, after the United States, Russia, and China, capable of conducting space docking operations. This positions India as a key player in global space exploration and technology.
  • Foundation for Future Missions: The docking capability is crucial for various upcoming missions, including India’s plans for a lunar sample return mission (Chandrayaan-4) and establishing its own space station by 2035. The ability to dock spacecraft allows for complex missions that require multiple launches and assembly in orbit.

How does the SpaDeX mission contribute to India’s future space exploration goals?

  • Support for Lunar Missions: SpaDeX is designed to demonstrate technologies necessary for future lunar missions, particularly for Chandrayaan-4, which will involve multiple components that need to be docked in space before proceeding to the Moon.
  • Bharatiya Antariksh Station: The mission is a critical step towards building the Bharatiya Antariksh Station (BAS), which will consist of several modules that must be docked together in orbit. The first module is expected to launch by 2028.
  • Satellite Servicing and Interplanetary Missions: The docking technology developed through SpaDeX will facilitate satellite servicing missions and interplanetary missions, enhancing India’s capabilities in space exploration.

What technological advancements were demonstrated through the SpaDeX mission?

  • Innovative Docking Technology: The mission showcases advanced docking techniques using two small satellites (SDX01 and SDX02), which require high precision due to their smaller size compared to typical spacecraft. This necessitates more intricate maneuvering during the docking process.
  • New Sensors and Systems: SpaDeX employs various new sensors such as Laser Range Finders and Rendezvous Sensors to ensure accurate measurements during docking.
    • Additionally, it utilizes a new processor for determining relative positions and velocities, paving the way for future autonomous docking systems.
  • Biological Experiments: For the first time, ISRO is conducting biological experiments in space with the CROPS (Compact Research Module for Orbital Plant Studies), which will study plant growth under microgravity conditions. This adds a new dimension to India’s space research capabilities.

Way forward: 

  • Enhancing Autonomous Docking Systems: Focus on developing fully autonomous docking capabilities for complex missions, enabling seamless execution of lunar, interplanetary, and modular space station operations.
  • Strengthening Collaborative Ventures: Leverage international partnerships to exchange expertise and expand applications of docking technology in satellite servicing, resupply missions, and deep-space exploration.

Mains PYQ:

Q What is India’s plan to have its own space station and how will it benefit our space programme?(UPSC IAS/2019)

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Digital India Initiatives

UPI duopoly’s rise and market vulnerabilities

Note4Students

From UPSC perspective, the following things are important :

Mains level: Digital transactions;

Why in the News?

In just eight years, UPI now handles nearly 80% of India’s digital transactions which valued at ₹20.60 lakh crore in August, despite challenges like PhonePe and Google Pay’s market dominance.

What are the implications of market concentration in the UPI ecosystem?

  • Systemic Vulnerability: The dominance of two Third Party App Providers (TPAPs) for online transactions like UPI PhonePe and Google Pay, which together control over 85% of the market share, creates a risk of systemic failure.
    • Any disruption in their services could significantly impact the entire UPI ecosystem, given that nearly 80% of transactions occur through these platforms.
  • Reduced Competition and Innovation: The high market concentration discourages competition, leading to fewer incentives for innovation among existing players. Smaller or new entrants face significant barriers to entry due to the scale and resources of the dominant TPAPs, stifling diversity in service offerings.
  • Foreign Dominance Risks: Both leading TPAPs are foreign-owned, raising concerns about data security and sovereignty. This foreign dominance can lead to potential vulnerabilities in terms of data protection and access to sensitive information about Indian users.

How effective are regulatory measures in addressing duopoly issues?

  • Regulatory Challenges: The National Payments Corporation of India (NPCI) has attempted to address market concentration by capping TPAP market shares at 30%. However, this measure has not been effectively enforced, with extensions granted that allow dominant players to maintain their substantial market positions.
  • Limited Impact of Existing Regulations: Despite regulatory intentions, the continued growth of PhonePe and Google Pay indicates that existing measures have not sufficiently mitigated the risks associated with a duopoly. The potential increase in market share cap from 30% to 40% may further entrench the dominance of these platforms rather than promote a competitive landscape.

What strategies can smaller players adopt to compete in this landscape?

  • Innovation and Niche Services: Smaller players can focus on niche markets or specialized services that cater to specific user needs, differentiating themselves from larger competitors. This could include unique features or localised services that appeal to underserved populations.
  • Collaboration and Partnerships: Forming alliances with banks, fintech companies, or other service providers can help smaller players leverage resources and technology to enhance their offerings and reach a broader audience.
  • User Education and Trust Building: Investing in user education about digital payments and building trust through transparent practices can attract users who may be hesitant to switch from established platforms. Emphasizing security features and customer support can also enhance user confidence.

What should the Indian Government do to reduce the dependency? (Way forward)

  • Enforce and Strengthen Regulatory Caps: Mandate strict enforcement of market share caps for TPAPs and ensure timely compliance to prevent excessive concentration. Introduce penalties for non-compliance and avoid extensions to foster a competitive ecosystem.
  • Promote Indigenous Development: Provide financial incentives, subsidies, and grants to Indian TPAPs to enhance their competitiveness. Encourage innovation through dedicated programs and regulatory frameworks that support startups in the payments space.

Mains PYQ:

Q Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India. (UPSC IAS/2021)

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Judicial Reforms

The challenge of holding judges accountable

Note4Students

From UPSC perspective, the following things are important :

Mains level: Issues related to the Judiciary;

Why in the News?

Recently, Justice Shekhar Kumar Yadav’s speech at a Vishwa Hindu Parishad event, showing bias against Muslims, has raised concerns about the challenges in holding higher court judges accountable in India.

Why do the judges need to be accountable?

  • Upholding Judicial Integrity: Judges are the guardians of the Constitution and are expected to exhibit the highest ethical standards to maintain public trust in the judiciary.
  • Safeguarding Democracy: Accountability ensures that the judiciary acts as a fair and impartial arbiter, without overstepping or undermining democratic institutions.
  • Preventing Abuse of Power: Judicial independence is vital, but unchecked power can lead to misconduct or corruption, as seen in cases like Justice V. Ramaswami and Justice Soumitra Sen.
  • Maintaining Public Confidence: Accountability is critical to reinforcing public confidence in the judiciary, especially in a democracy where the judiciary acts as a check on other branches of government.

What are the accountable-related issues? 

  • High Bar for Impeachment: The process requires “proved misbehaviour or incapacity” and a two-thirds majority in Parliament, making it almost impossible to remove errant judges.
  • Resignation to Evade Accountability: Judges like Justice Soumitra Sen and P.D. Dinakaran resigned before the completion of impeachment proceedings, avoiding scrutiny while retaining post-retirement benefits.
  • Immunity Misuse: Judges continue to enjoy post-retirement benefits even after accusations of misconduct, as seen in Justice Ramaswami’s case, undermining accountability.
  • Limited Scope for Independent Oversight: The judiciary lacks an independent review mechanism outside the Parliament-driven impeachment process, leaving little room for holding judges accountable in real time.

What is the review mechanism of committee set up under the Judges (Inquiry) Act, 1968?

  • Initiation: A removal motion, signed by 100 Lok Sabha MPs or 50 Rajya Sabha MPs, is submitted and approved by the Speaker or Chairman to initiate the process.
  • Investigation: A three-member committee (Supreme Court judge, Chief Justice of a High Court, and an eminent jurist) is constituted under the Judges (Inquiry) Act, 1968 to investigate allegations of “proved misbehaviour or incapacity.”
  • Parliamentary Decision: If the committee confirms the charges, the motion is debated in Parliament and requires a two-thirds majority in both Houses for the judge’s removal by the President.

Is there any accountability limitation by the Constitution for the judges? 

  • Article 124(4) and (5): These articles provide for the removal of judges only through impeachment, which is a political and cumbersome process requiring a majority in Parliament.
  • Lack of Disqualification: The Constitution does not explicitly disqualify judges found guilty of misconduct from holding future public office.
  • Insufficient Deterrence: Provisions under the Judges (Inquiry) Act, 1968, do not offer significant penalties apart from removal, leaving gaps in ensuring judicial accountability.
  • Ambiguity in “Proved Misbehavior”: The term is not clearly defined, leading to challenges in establishing guilt and enforcing accountability.

Way forward: 

  • Streamlining the Impeachment Process: Simplifying procedures and reducing the threshold for initiating impeachment could make it easier to hold judges accountable.
  • Clear Disqualification Guidelines: Introducing clear guidelines regarding disqualification from future judicial roles following findings of misconduct would reinforce accountability.
  • Public Awareness and Advocacy: Increasing public awareness about judicial accountability issues can foster demand for reform and greater scrutiny of judicial conduct.
  • Legislative Reforms: Revisiting the Judges (Inquiry) Act, 1968, to address its limitations and ensure it meets contemporary standards for accountability is crucial for restoring public confidence in the judiciary.

Mains PYQ:

Q Critically examine the Supreme Court’s judgement on ‘National Judicial Appointments Commission Act, 2014’ with reference to the appointment of judges of higher judiciary in India.(UPSC IAS/2017)

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Foreign Policy Watch: India-United States

U.S.-India ties will be strengthened, but expect tariff trouble, FTA push: Former Ambassador Juster

Note4Students

From UPSC perspective, the following things are important :

Mains level: India-USA relation;

Why in the News?

After the USA’s election result, U.S.-India (in 2nd term of Donald Trump) ties could be stronger, but issues over tariffs might cause trouble.

Why US India ties will be strengthed?

  • Shared Strategic Interests: The U.S. and India both view China as a significant strategic challenge, which aligns their interests in the Indo-Pacific region. This common perspective fosters collaboration on defence and security matters.
  • Political Will and Leadership: The anticipated second term of Donald Trump is expected to reinforce the U.S.-India relationship, as evidenced by the strong ties developed during his first term. Trump’s cabinet nominees are also pro-India, indicating a continuity of support for enhancing bilateral relations.
  • Economic Cooperation Potential: There is a renewed focus on trade agreements and economic partnerships, including the possibility of finalizing a Free Trade Agreement (FTA), which could enhance market access and reduce tariffs, benefiting both economies.
  • Defence and Technology Collaboration: Continued emphasis on defence cooperation and technology partnerships, particularly in areas like semiconductors and emerging technologies, will strengthen ties and enhance mutual security interests.

In which area would ties be strengthened?

  • Defence and Security: The U.S. and India have significantly enhanced their defence cooperation, including joint military exercises and technology transfers, such as the recent offer to restart the transfer of jet engine technology to India.
    • The India-U.S. Initiative on Critical and Emerging Technology (iCET) aims to foster collaboration in areas like artificial intelligence, quantum technologies, and cybersecurity.
  • Economic Relations: Bilateral trade has surged, increasing by 72% from 2017-18 to 2022-23, highlighting a robust economic partnership.
    • Both nations are keen on resolving trade disputes to further enhance mutual benefits.
  • Technological Collaboration: Initiatives like INDUS-X focus on integrating defense start-ups from both countries, promoting innovation in military technology and enhancing capabilities in critical sectors like semiconductors.
  • Multilateral Cooperation: Engagement through platforms like the Quad (with Japan and Australia) strengthens regional security cooperation against common threats, particularly from China.

What were the successful agreements between India and the USA during the first term of the Donald Trump period? 

  • Communications Compatibility and Security Agreement (COMCASA): Signed in September 2018, this agreement aimed to facilitate secure communication between the armed forces of both nations, thereby enhancing interoperability during joint operations.
  • Basic Exchange and Cooperation Agreement (BECA): Finalized in October 2020, BECA provided a framework for sharing geospatial intelligence, which is crucial for military planning and operations.
  • Industrial Security Annex (ISA): This agreement, signed in December 2019, allowing for greater collaboration in defence manufacturing and technology transfer between the two countries.
  • Strategic Trade Authorization (STA-1) Status: The U.S. elevated India to STA-1 status, allowing for easier access to advanced technologies that were previously restricted to NATO allies.
  • 2+2 Dialogue Format: This mechanism was initiated to bring together the defense and foreign ministers of both countries to discuss strategic issues, enhancing diplomatic engagement.

What could be the challenges between India and the USA?

  • High Tariffs and Market Access: Disagreements over tariffs and market access for U.S. products in India, particularly in agriculture and technology sectors, remain significant irritants.
  • Geopolitical Tensions: Differences in policy regarding Iran and Russia may create friction in the bilateral relationship, particularly with India’s historical ties to Russia.
  • Legal Investigations: Ongoing investigations by the U.S. Department of Justice into cases involving Indian entities could complicate diplomatic relations and create perceptions of bias against the Indian government.

What should India do to address the challenges? (Way forward)

  • Engage in Constructive Dialogue: India should actively engage with the U.S. to address tariff issues and seek mutually beneficial solutions that enhance market access for American products while protecting domestic interests.
  • Strengthen Economic Cooperation Frameworks: Pursuing comprehensive economic agreements that encompass trade, investment, and technology sharing can help mitigate tensions and foster a more robust partnership.
  • Clarify Stances on Geopolitical Issues: India needs to communicate its positions on sensitive geopolitical matters clearly to avoid misunderstandings with the U.S., particularly regarding its relationships with Iran and Russia.

Mains PYQ:

Quadrilateral Security Dialogue (Quad) is transforming itself into a trade bloc from a military alliance, in present times Discuss. (UPSC IAS/2020)

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Tax Reforms

Should the wealth tax be reinstated in India?

Note4Students

From UPSC perspective, the following things are important :

Mains level: Wealth tax;

Why in the News?

At a New Delhi panel, economist Thomas Piketty proposed taxing India’s super-rich to fund health and education, while Chief Economic Advisor Anantha Nageswaran cautioned against potential fund outflows from higher taxes.

What are the potential benefits of reinstating a wealth tax?

  • Funding Public Services: A wealth tax could provide significant revenue that could be allocated to critical sectors such as health and education, addressing inequalities in access to these services. This funding could help create a more educated and healthier workforce, ultimately benefiting the economy.
  • Addressing Wealth Inequality: With wealth concentration at historically high levels, a wealth tax could serve as a tool to mitigate inequality, which is increasingly viewed as a fundamental development issue that affects opportunities for many individuals.
  • Encouraging Productive Investments: By taxing unproductive assets like real estate and gold while promoting investments in productive assets such as equities and bonds, a wealth tax could potentially shift capital towards more economically beneficial uses.

What challenges and criticisms exist regarding the implementation of a wealth tax?

  • Measurement Difficulties: Accurately measuring wealth poses significant challenges. The complexities of defining what constitutes wealth and ownership can lead to loopholes and evasion, as individuals may shift their assets to avoid taxation.
  • Capital Flight Concerns: There is apprehension that high taxation on the wealthy could lead to capital outflows, as individuals may relocate their assets or themselves to countries with lower tax burdens. This concern is particularly pronounced in India, where the public infrastructure may not be sufficient to retain high-net-worth individuals.
  • Historical Ineffectiveness: Previous implementations of wealth tax in India resulted in low collection rates (less than 1% of gross tax collections). The high cost of collection and the challenges of enforcement contributed to its abolishment in 2016-17.
  • Misallocation of Resources: Critics argue that simply imposing a wealth tax does not guarantee effective use of the revenue generated. There are concerns about whether additional funds would improve sectors like education, which already face management inefficiencies.

How would a wealth tax impact India’s economy and social structure?

  • Economic Growth vs. Redistribution: Proponents argue that addressing inequality through a wealth tax can enhance overall economic growth by expanding opportunities for disadvantaged groups.
    • However, opponents maintain that focusing on growth alone is more beneficial, suggesting that redistribution efforts may not lead to improved outcomes for the economy.
  • Social Cohesion: A wealth tax could potentially foster greater social cohesion by addressing stark disparities in wealth and opportunity.
    • However, if perceived as punitive or ineffective, it might exacerbate tensions between different socioeconomic groups.
  • Investment Climate: A wealth tax could change how people invest in India. Some investors might hesitate because of higher costs, but if the money is used well for public services. It could improve living standards and infrastructure, making India a better place for investment over time.

Case study: 

  • Norway is often cited as a successful case study for wealth tax implementation. Norway imposes a wealth tax on individuals with a net worth exceeding a certain threshold, which includes various asset classes such as real estate, stocks, and bonds.
  • For 2022, a new step for the state rate is introduced. For net wealth in excess of NOK 20 million (NOK 40 million for married couples), the rate is 0.4%. Thus, the maximum wealth tax rate is 1.1%.

Way forward: 

  • Efficient Tax Design and Implementation: Develop a clear and transparent framework for wealth taxation to minimize evasion, ensure equitable enforcement, and balance revenue generation with economic growth.
  • Focus on Public Infrastructure: Prioritize effective allocation of tax revenue to critical sectors like health and education, addressing inefficiencies to build trust and maximize social and economic benefits.

Mains question for practice:

Q “Reinstating a wealth tax in India could be a tool for reducing inequalities and funding critical public services. However, its implementation poses several economic and administrative challenges.” Critically analyse this statement in the context of India’s socio-economic landscape. (250 words) 15M

Mains PYQ:

Q Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. (UPSC IAS/2019)

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Wildlife Conservation Efforts

Rules that still manacle the captive elephant

Note4Students

From UPSC perspective, the following things are important :

Mains level: Wildlife protection;

Why in the News?

The Captive Elephant (Transfer or Transport) Rules contain ambiguities that could enable the illegal trade of elephants.

What are the current welfare standards for captive elephants?

  • Legal Framework: Elephants are protected under the Wildlife (Protection) Act of 1972, but enforcement is weak.
    • The Kerala High Court has issued directions to ensure compliance with the Kerala Captive Elephants (Management and Maintenance) Rules, 2012, yet many elephants lack proper ownership documentation, indicating illegal possession.
  • Exploitation for Commercial Gain: Captive elephants are often used in religious festivals and tourism, which the Kerala High Court described as “commercial exploitation” devoid of concern for their well-being.
    • This exploitation is exacerbated by the competitive nature of temple festivals where the number of elephants paraded is prioritized over their welfare.
  • Physical and Psychological Impact: Captive elephants endure harsh conditions, including inadequate diets, lack of proper medical care, and exposure to stressful environments during festivals.
    • Mortality rates among captive elephants due to these factors is approximately 33% of recorded captive elephants in Kerala died between 2018 and 2024.

What are the Kerala Captive Elephants (Management and Maintenance) Rules, 2012? 

  • The rules for captive elephants mandate age-based definitions, housing space standards, nutritional requirements (e.g., 250 kg fodder for adults), regular health monitoring, and restrictions on using elephants in the musth.
  • A management committee oversees implementation, ensuring welfare through multi-department collaboration, including forestry, veterinary, and animal welfare representatives.

What are the ambiguities in the Captive Elephant (Transfer or Transport) Rules?

The Captive Elephant (Transfer or Transport) Rules, 2024, introduced by the Ministry of Environment, Forests and Climate Change (MoEFCC), aim to regulate the movement of captive elephants within and between states in India. However, these rules contain several ambiguities that raise concerns among animal rights activists and experts regarding their potential misuse

  • Ambiguity in Transfer Rules: Vague criteria for elephant transfers, such as inadequate care or potential for better maintenance, risk enabling unauthorized sales disguised as legitimate transactions.
  • Ownership Transfer Oversight: Shifting application responsibility to the deputy conservator of forests, instead of the CWW, weakens protections and facilitates improper transfers, potentially treating elephants as movable assets.
  • Transport Justification Gap: The absence of a requirement to justify temporary interstate transport allows leasing or renting of elephants, further commodifying and jeopardizing their welfare.
  • Weak Genetic Profiling: Despite mandates for recording genetic profiles, lax monitoring can enable illegal captures to be misrepresented as legitimate ownership.
  • Database Deficiency: The lack of a national database tracking ownership and genetic details of captive elephants hampers regulation and increases the risk of illegal transfers.
  • Inadequate Exploitation Safeguards: The rules fail to sufficiently prevent the commercial use of elephants in religious events or entertainment, incentivizing wild captures under false pretences.

How do captivity conditions affect the physical and psychological well-being of elephants?

  • Physical Health: Elephants in captivity often suffer from malnutrition due to a poor diet that lacks the variety available in the wild. For instance, some are only fed glucose-rich fodder instead of a balanced diet.
  • Psychological Well-being: The social nature of elephants means that isolation and abusive training methods can lead to severe psychological distress. The use of capture belts and other coercive training devices has been criticized for causing both physical and emotional harm.
  • High Incidence of Distress: Anecdotal evidence suggests that captive elephants frequently exhibit signs of distress, including aggressive behavior or attempts to escape, which can endanger both themselves and surrounding humans.

What reforms are necessary to improve the management and care of captive elephants? (Way forward)

  • Strengthening Regulation: There is a need for clearer regulations to prevent the commercial exploitation of elephants. The current rules allow for ownership transfers without prohibiting commercial transactions, which could facilitate illegal wildlife trade.
  • Implementation of Humane Practices: Mandating humane birth control measures and prohibiting the use of live elephants in entertainment could help reduce the number entering captivity.
    • Alternatives like electronic simulations could replace live elephants in religious ceremonies.
  • Monitoring and Accountability: The rules should require post-mortem examinations for deceased elephants during transfers to ensure accountability.
  • Stakeholder Engagement: Collaborative efforts involving civil society, government bodies, and NGOs are essential to develop comprehensive guidelines that prioritize elephant welfare over commercial interests.

Mains question for practice:

Q Discuss the ambiguities in the Captive Elephant (Transfer or Transport) Rules, 2024 and suggest reforms needed to address these issues. (250 words) 15M

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Architect of Indian Economic Reforms passes way

Note4Students

From UPSC perspective, the following things are important :

Mains level: Economic reforms;

Why in the News?

People around the world paid tribute to Dr. Manmohan Singh, known for opening up India’s economy and making it a global player, who passed away at the age of 92.

How did Manmohan Singh’s reforms transform India’s economic landscape?

  • 1991 Economic Liberalization (LPG):  He abolished the “License Raj,” which required businesses to seek government approvals for setting up industries.
    • Example: The IT sector flourished, with companies like Infosys and Wipro gaining international prominence.
  • Tax Reforms and Currency Devaluation: Singh’s government implemented substantial tax cuts and devalued the Indian rupee to enhance competitiveness.
    • Example: Corporate tax was reduced from 50% (pre-1991) to around 35% by the mid-1990s, boosting business sentiment.
  • Welfare Schemes: Alongside economic liberalisation, Singh’s administration introduced welfare initiatives aimed at sharing the benefits of growth with the rural poor, thereby addressing socio-economic disparities.
    • Introduced schemes like MGNREGA (2005) and expanded rural credit, improving employment and poverty alleviation.
    • Poverty rates dropped from 37.2% (2004-05) to 21.9% (2011-12), and India’s middle class expanded significantly due to higher income levels.
  • Economy growth: As Finance Minister, in 1991 economic reforms addressed the balance-of-payments crisis by reducing the fiscal deficit from 8.4% of GDP (1991) to 5.7% (1993) and reviving GDP growth from 1.1% (1991-92) to 5.3% (1992-93) through measures such as dismantling industrial licensing, devaluing the rupee, and encouraging foreign investment.

How did he left a lasting imprint on external relations?

  • US-India Civil Nuclear Deal (2008): He played a pivotal role in finalising the Civil Nuclear Agreement, which ended India’s nuclear isolation and strengthened strategic ties with the United States.
    • It also marked a shift in global recognition of India as a responsible nuclear power.
  • Strengthening India’s Strategic Partnerships: Deepened ties with major global powers, including the US, EU, Japan, and Russia, enhancing India’s diplomatic and economic engagement globally.
  • Championing India’s Role in Global Governance: Advocated for reforms in international institutions like the UN, IMF, and World Bank to reflect the rising stature of emerging economies, particularly India.
    • His leadership elevated India’s voice in global forums like G20 and BRICS.
  • Focus on Regional and Economic Integration: Fostered closer economic and diplomatic ties with ASEAN, SAARC nations, and other Asian neighbours, reinforcing India’s position in regional trade and security frameworks.
    • His outreach contributed to India’s Act East Policy and improved relations with key partners in the Indo-Pacific region.

Conclusion: The Indian government should embrace Dr. Manmohan Singh’s legacy by prioritizing bold economic reforms, fostering global partnerships, and championing inclusive growth. Emphasizing strategic investments in infrastructure, skilling, and technology while deepening ties with regional and global partners can sustain long-term growth, reduce disparities, and solidify India’s leadership in global governance.

Mains PYQ:

Q Has the Indian governmental system responded adequately to the demands of Liberalization, Privatization and Globalization started in 1991? What can the government do to be responsive to this important change? (UPSC IAS/2016)

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