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Daily PIB Summaries

PIB Summaries 26 July 2024

CONTENTS Humayun’s Tomb World Heritage Site Museum to Open for Visitors Bal Gangadhar Tilak  Humayun’s Tomb World Heritage Site Museum to Open for Visitors Context: The Humayun’s Tomb World Heritage Site Museum is set to open for visitors. Nestled between Sunder Nursery and Humayun’s Tomb in Nizamuddin, Delhi, this museum promises to offer visitors a unique insight into the life and times of the second Mughal Emperor, Humayun. This initiative is expected to enhance the cultural and historical tourism experience in the region, providing a deeper understanding of Mughal history and architecture. Relevance: GS I: History Key Highlights of Humayun’s Tomb Site Museum  Design and Facilities: Architectural Design: The museum is inspired by the traditional baoli (stepwell) architecture, blending seamlessly with the historic ambiance of the site. Amenities: It includes a 100-seat auditorium, temporary galleries, cafés, meeting rooms, and a library, offering diverse spaces for learning and engagement. Artefacts and Exhibits: Notable Artefacts: Pear-Shaped Water Vessel: Belonging to Jauhar Aftabchi, a biographer of Humayun. Helmet: Used by Humayun as a cooking vessel during his travels to Persia. Coins and Historical Items: Mughal Coins: Includes coins from the reigns of 18 Mughal-era kings. Throne of Bahadur Shah Zafar: The last Mughal emperor’s throne is featured. Akbar Era Coins: Coins with inscriptions of ‘Allah’ on one side and ‘Ram’ on the other. Jahangir Era Coins: Noted for their expense and rarity. Bahadur Shah Zafar Coins: Rare coins minted by the last Mughal emperor. Focus and Themes: Emperor Humayun: The museum highlights the architecture of Humayun’s Mausoleum and aspects of the emperor’s personality, including his travels, administration, interest in reading, astrology, the arts, and architectural patronage. Cultural Figures: Sufi Saint Hazrat Nizamuddin Auliya Poet Amir Khusrau Dehalvi Rahim: Commander-in-chief of Akbar’s army and poet. Dara Shukoh: Known for translating the Upanishads into Persian. Management and Conservation: Managed by ASI: The museum is overseen by the Archaeological Survey of India. Conservation Effort: It is part of a larger conservation initiative covering the 300-acre Humayun’s Tomb-Sunder Nursery-Nizamuddin Basti area, ensuring the preservation and promotion of the historical and cultural significance of the region. Bal Gangadhar Tilak Context: The Prime Minister has paid tribute to the great Lokmanya Tilak on his Jayanti. Relevance: GS I- Modern History About Bal Gangadhar Tilak: Bal Gangadhar Tilak, commonly known as Lokamanya Tilak was a leader of the Indian independence movement and belonged to the extremist faction. He was also called the ‘Father of Indian Unrest’. Born as Keshav Gangadhar Tilak in 1856 in Ratnagiri, modern-day Maharashtra. Ideology: He was a devout Hindu and used Hindu scriptures to rouse people to fight oppression. Stressed on the need for self-rule and believed that without self-rule or swarajya, no progress was possible. Slogan: “Swaraj is my birth right and I shall have it!” Emphasised the importance of a cultural and religious revival to go with the political movements. Popularised the Ganesh Chaturthi festival in the Maharashtra region. Propounded the celebration of Shiv Jayanti on the birth anniversary of the monarch Chhatrapati Shivaji. Bal Gangadhar Tilak’s Political Life Tilak joined the Congress in 1890. He was opposed to moderate ways and views and had a more radical and aggressive stance against British rule. He was part of the extremist faction of the INC and was a proponent of boycott and Swadeshi movements. He was sentenced to 18 months imprisonment on charges of “incitement to murder”. He had written that killers of oppressors could not be blamed, quoting the Bhagavad Gita. After this, two British officials were killed by two Indians in retaliation to the ‘tyrannical’ measures taken by the government during the bubonic plague episode in Bombay. Along with Bipin Chandra Pal and Lala Lajpat Rai, he was called the ‘Lal-Bal-Pal’ trio of extremist leaders. He was tried for sedition several times. He spent 6 years in Mandalay prison from 1908 to 1914 for writing articles defending Prafulla Chaki and Khudiram Bose. They were revolutionaries who had killed two English women, throwing bomb into the carriage carrying the women. Chaki and Bose had mistakenly assumed that Magistrate Douglas Kingsford was in it. Tilak re-joined the INC in 1916, after having split earlier. He was one of the founders of the All India Home Rule League, along with Annie Besant and G S Khaparde. He called for people to be proud of their heritage. He was against the blatant westernisation of society. He transformed the simple Ganesh Puja performed at home into a social and public Ganesh festival. He used the Ganesh Chaturthi and Shiv Jayanti (birth anniversary of Shivaji) festivals to create unity and a national spirit among the people. Unfortunately, this move alienated non-Hindus from him. Newspapers: Weeklies Kesari (Marathi) and Mahratta (English) Books: Gita Rhasya and Arctic Home of the Vedas. Death: He died on 1st August 1920.

Daily Editorials Analysis

Editorials/Opinions Analysis For UPSC 26 July 2024

CONTENTS India’s Illegal Coal Mining Problem Budget 2024: A Blueprint for Long-Term Growth India’s Illegal Coal Mining Problem Context: On July 13, three workers lost their lives due to asphyxiation in an unauthorized coal mine located in Gujarat’s Surendranagar district. According to officials, these workers were operating in a mine near Bhet village in Thangadh taluka without helmets, masks, or any other safety gear. The first information report (FIR) mentioned that the responsible parties neglected to provide essential protective equipment, leading to the workers’ deaths from inhaling toxic gases in the mine. The police have filed charges of culpable homicide not amounting to murder against four individuals. Relevance: GS1- Mineral and Energy Resources Mains Question: How prevalent is illegal coal mining in India and what are the legal frameworks dealing with it? What factors contribute to the persistence of illegal coal mining despite these frameworks and what can be done to minimise it? (15 Marks, 250 Words). Similar Incidents: The incident in Surendranagar is not unique. In June 2023, three people, including a ten-year-old child, reportedly died when an illegal mine collapsed in the Dhanbad district of Jharkhand. Similarly, in October 2023, at least three people were killed when a coal mine collapsed during illegal mining activities in West Bengal’s Paschim Bardhaman district. These cases highlight the dangers of illegal coal mining in India. Evolution of Coal Mining in India: Coal mining in India was nationalized in two stages: first, with coking coal (used for making coke in the steel industry) in 1971-72, and then with non-coking coal mines in 1973. The Coal Mines (Nationalisation) Act, 1973, is the key legislation regulating coal mining eligibility in India. Illegal mining presents a law and order issue, which is under the jurisdiction of the State governments rather than the Union government. Why is illegal coal mining widespread in India? According to the Ministry of Coal, illegal mining in India primarily occurs in abandoned mines or shallow coal seams located in remote or isolated areas. Several factors contribute to the prevalence of illegal coal mining in the country. Coal is the most abundant fossil fuel in India, providing 55% of the nation’s energy needs. The high demand for electricity often exceeds the legal coal supply, leading to illegal mining operations. Many coal-rich regions are also near communities facing poverty and unemployment, which drives illegal mining activities. In remote regions, weak enforcement of mining regulations is common due to inadequate monitoring and lack of resources, allowing “coal mafias” to thrive. For instance, in 2018, activist Marshall Biam from the North East Indigenous People’s Federation filed a complaint accusing a “police-backed” coal gang of threatening him. Coal-rich Meghalaya has experienced several mining tragedies. Illegal coal mining is often reportedly supported by political leaders in areas where it is common, making it difficult to control. In 2023, the an Assam-based political party submitted petitions to various authorities, including the President and the Prime Minister, alleging that some leaders of a national party are involved in illegal coal mining in the state. They claimed that illegal rat-hole mining persists in Assam, Meghalaya, and other northeastern states with the alleged backing of BJP leaders and officials, despite a blanket ban by the National Green Tribunal (NGT) in 2014. Illegal mining often uses simple techniques like surface mining and rat-hole mining instead of the scientific methods required for legal, large-scale operations. In areas where coal seams are near the surface, illegal miners access them with minimal safety equipment. The low operational costs can lead to significant profits, making illegal mining attractive. Why Do Many Workers Die in Illegal Coal Mines? The main reason for fatalities in illegal coal mining is the absence of safety equipment and protocols. Miners are at higher risk of respiratory issues due to inhaling coal dust, and the lack of safety gear significantly exacerbates this risk. In the Surendranagar incident, the miners died from carbon monoxide poisoning. District Collector K.C. Sampat noted that although 2,100 wells had been filled recently, some may have been illegally reopened, leading to the incident. Illegal mines often lack proper structural support, making them dangerous and prone to cave-ins, landslides, and explosions. Workers may also be exposed to high levels of toxic substances like lead and mercury, which can cause acute poisoning or long-term chronic health issues. Many people working in illegal coal mines are untrained and unaware of the job’s risks. There is a lack of proper training, quick response facilities, and emergency knowledge. Operator negligence and worker exploitation are also common in illegal coal mining. Why do Governments Struggle to Reduce Illegal Coal Mining in India? Illegal coal mining has been a topic of discussion in Parliament, but since it’s considered a law and order issue, the Union government often shifts responsibility to State authorities. A combination of economic, social, political, and regulatory factors makes it difficult for governments to eliminate illegal coal mining in India. Illegal coal mining is not a new phenomenon; it has existed since before coal was nationalized and continues in coal-rich areas or near abandoned mines. Conclusion: The high demand for coal as a fuel makes illegal mining widespread and hard to control. In many areas, local economies depend on mining, and once official operations cease, illegal mining takes over to support the community. The legal framework for mining is complex, potentially leading to bureaucratic hurdles and inefficiency in governance, allowing illegal mining to persist. Budget 2024: A Blueprint for Long-Term Growth Context: In a crucial move to bolster India’s economic strength, the Union Budget for the fiscal year 2024-25 has taken major steps to ensure the continuity of progressive reforms. There is excitement in the MSME, E-commerce, and start-up sectors, which have received additional support as the nation advances toward the goal of a Viksit Bharat. Relevance: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment Inclusive Growth and issues arising from it Government Budgeting Mains Question: The Union Budget 2024-25 reaffirms the Govt’s dedication to long-term growth. Discuss in the context of initiatives proposed in various sectors. (15 Marks, 250 Words). A Boost for MSMEs: The budget appropriately supports the lower end of the industrial spectrum by providing essential credit access for the MSME sector. India is home to 633.9 lakh MSMEs, with over 99% classified as micro-enterprises, totaling 630.5 lakh. One significant barrier preventing micro-enterprises (with investments up to INR 10 million) from growing into small or medium enterprises is the lack of access to formal credit. By doubling the MUDRA loan amounts and establishing new SIDBI branches, credit will become more readily available to these businesses. Other measures, such as the mandatory Trade Receivables Discounting System, have improved liquidity, while industrial parks will offer digital support that MSMEs typically cannot afford. Additionally, the new credit guarantee scheme for MSMEs provides term loans without collateral or third-party guarantees, significantly reducing the financial strain on small business owners and encouraging entrepreneurship. This positive support for this vital sector is likely to boost its confidence, allowing it to move beyond its risk-averse nature and pursue ambitious growth toward 2047. Skilling and Job Creation: The government has addressed the need for job opportunities and skill development for the youth with this budget. The continued focus on skilling will enable training institutions and large corporations to help create a pool of professionally trained workers who can be easily absorbed by them and the broader MSME ecosystem, which often lacks funds for training. However, careful implementation will be crucial to moving in the right direction of job creation. By ensuring effective execution, the government can pave the way for generating employment opportunities and equipping the youth with the necessary skills to thrive in a competitive job market. Rural Economy: The rural economy continues to benefit from government support, as bolstering this sector is vital for the country’s long-term economic growth. The 2024 budget introduced significant initiatives aimed at increasing productivity and ensuring food security in grains and oilseeds. These efforts are expected to foster new economic clusters, promoting sustainable growth. A notable aspect of the budget is the plan to train 1 crore farmers in natural farming, marketing, certification, and branding, providing a substantial boost to organic farming. This focus on mitigating the impact of climate change on agriculture demonstrates the government’s commitment to building resilience in the ecosystem and ensuring the sustainability of the rural economy. Start-ups and E-Commerce: The start-up ecosystem across India has welcomed the abolition of the angel tax, as proposed in the budget. The angel tax, introduced in 2012, was levied on the capital raised by unlisted companies through issuing shares to Indian investors if the share price exceeded the company’s fair market value (FMV). This change is expected to encourage more investment in start-ups. Additionally, traders and artisans using e-commerce platforms received a boost with the reduction of TDS and the decriminalization of TDS delays. E-commerce exports, currently at $2 billion, are projected to reach $350 billion by 2030. With revised custom duties, the government aims to support artisans and traders who sell their products online, aligning with its Make in India strategy and promoting the growth of the digital economy. Energy Security: India’s rapidly growing economy requires increasing energy resources. The budget aims to achieve energy security by encouraging private investment in small nuclear energy reactors and promoting R&D into newer nuclear energy forms. These measures are designed to meet India’s rising energy demands while advancing its energy independence goals. Regular energy audits in clusters, larger commercial thermal plants, and a pumped storage policy are part of the budget’s strategy to help India manage its growing energy needs effectively. However, while the country’s green economy targets are ambitious, more efforts are necessary to ensure a successful transition to sustainable fuels. Digitization of Land Records: One of the most significant initiatives in the budget is the digitization of land records, which could have a profound impact on India’s economic growth. Many land areas, particularly in rural regions, are entangled in disputes due to a lack of proper documentation. This issue poses a significant barrier to land acquisition for major projects. By digitizing these records nationwide, the government aims to eliminate middlemen and reduce the number of land-related legal cases, thereby streamlining land transactions and supporting economic development. Overall, the Union Budget 2024-25 reaffirms the government’s dedication to sustained long-term growth. Through strategic investments and forward-thinking policies, India is well-positioned to navigate global challenges while leveraging its vast potential for socio-economic progress. Conclusion: The Budget contains measures to empower the poor, women, youth, and farmers. The initiatives introduced in this budget are timely and poised to elevate the Indian economy to new heights during the Amrit Kaal, increasing its resilience in an ever-changing global environment. The journey toward a Viksit Bharat may present challenges, especially given global dynamics, but with a consistent vision and progressive policy support, the dream of a developed India is within reach.

Daily Current Affairs

Current Affairs 26 July 2024

CONTENTS Financial Support for Amravati, Andhra Pradesh Economic Survey Highlights Flaws in Global Climate Action Regime Supreme Court of India on Taxation of Mineral Rights Panchamasali Lingayats Demand Inclusion in OBC Category 2A Magnetotactic Bacteria Lal Dora-Free Scheme in Haryana Olympic Order  Financial Support for Amravati, Andhra Pradesh Context: Recently, the Finance Minister announced Rs 15,000 crore in financial support for Andhra Pradesh to build its capital city, Amravati, and boost other development activities in the state. This has brought back focus on Amravati, a site of immense historical and spiritual significance in Andhra Pradesh that remains relatively unrecognized. The financial boost is expected to catalyze infrastructure development and enhance the city’s recognition and prominence. Relevance: GS II: Polity and Governance Dimensions of the Article: Key Facts About Amravati and Andhra Buddhism Key Features of the Amravati School of Art Key Facts About Amravati and Andhra Buddhism Amravati: Discovery: In the late 1700s, Raja Vessareddy Nayudu discovered ancient limestone ruins in Dhanyakatakam village (later renamed Amravati). These ruins were used for construction, leading to significant damage. Rediscovery: In 1816, Colonel Colin Mackenzie’s survey rediscovered the Amravati Stupa, though further damage occurred during the survey. Modern Development: In 2015, the Andhra Pradesh Chief Minister announced the new capital, Amaravati, inspired by the historic Buddhist site, with plans to develop it into a modern city akin to Singapore. Andhra Buddhism: Introduction: Buddhism, founded by Siddhartha Gautama (the Buddha) in the 5th century BCE, spread to Andhra Pradesh via trade routes. Early Evidence: The earliest significant evidence of Buddhism in Andhra dates back to the 3rd century BCE, with Emperor Ashoka’s inscriptions promoting the religion. Historical Presence: Monks from Andhra participated in the first Buddhist council in 483 BCE. Buddhism thrived in Andhra for six centuries, with sites such as Amravati and Nagarjunakonda continuing until the 14th century CE. Spread and Integration: Andhra’s Buddhism spread through trade and integrated with local practices like megalithic burials and Goddess worship. Decline: The rise of Shaivism, economic degradation, and later Islamic rule contributed to the decline of Buddhism in Andhra. Key Features of the Amravati School of Art Historical Context and Influences: Significance: The Amravati School of Art, prominent during the post-Mauryan period, was one of the three main ancient Indian art styles, alongside Mathura and Gandhara. Stupa: The Amravati Stupa was central to this art style and became a major artistic hub. However, government indifference and improper conservation led to the site’s degradation, with sculptures being moved to various locations in the 19th century. Characteristics: Major Centres: Amaravati and Nagarjunakonda. Patronage: Supported by Satavahana rulers. Artistic Style: Known for the tribhanga posture (three bends in the body), intricate detailing, and use of palnad marble. Sculptures: Feature narrative panels depicting the Buddha’s life, Jataka tales, and Buddhist rituals. The depiction of the Buddha with a robe on the left shoulder and in abhaya (fearlessness) gesture became iconic. Unique Style: Developed independently with minimal external influence, contrasting with the Graeco-Roman influences in Mathura and Gandhara. Global Dispersion: Museums: Amravati sculptures are housed in major museums globally, including the British Museum, Art Institute of Chicago, Musee Guimet, and the Metropolitan Museum of Art. Return of Art: Australia is notable for returning a stolen Amravati-style sculpture. -Source: Indian Express Economic Survey Highlights Flaws in Global Climate Action Regime Context: The Economic Survey has pointed to flaws and inequities in the global climate action regime and suggested alternative pathways that incorporate lifestyle and behavioural changes. It also argued that adaptation should get at least as much importance as mitigation. Relevance: GS III: Environment and Ecology Dimensions of the Article: Difference Between Climate Change Mitigation and Adaptatio Economic Survey 2023-24 on Climate Change Alternative Approaches Focusing on Climate Change Adaptation Difference Between Climate Change Mitigation and Adaptation Climate Change Mitigation: Definition: Involves actions aimed at reducing or preventing the emission of greenhouse gases (GHGs) to slow down global warming. Objective: To limit the extent of climate change and avoid the severe impacts of higher temperatures. Examples of Actions: Transitioning to renewable energy sources (solar, wind, etc.). Improving energy efficiency in buildings and transportation. Reforestation and afforestation to absorb CO₂. Implementing policies and technologies to reduce industrial emissions. Climate Change Adaptation: Definition: Involves modifying human behavior, systems, and infrastructure to better cope with the impacts of climate change that are already occurring or anticipated. Objective: To minimize the damage from climate change and improve resilience to its effects. Examples of Actions: Developing flood defenses and improved drainage systems. Altering agricultural practices to withstand changing weather patterns. Constructing buildings and infrastructure to withstand extreme weather events. Enhancing water conservation and management practices. Interrelationship: Effective climate adaptation depends on the extent of climate change mitigation. Lower emissions mean less severe impacts and easier adaptation. Mitigation actions will take time to show effects, so immediate adaptation is necessary to address current and near-term impacts. Economic Survey 2023-24 on Climate Change Key Points: International Targets: Historical failure to meet international climate targets (e.g., 1.5°C and 2°C goals) has shifted focus and resources away from immediate development needs. Developing Nations: Excessive pressure on developing nations to meet stringent targets has diverted attention from improving living conditions and has not necessarily led to effective climate action. Adaptation vs. Mitigation: Adaptation Focus: Given the near certainty of exceeding the 1.5°C target, emphasis should be on adaptation and improving resilience. Mitigation by Developed Nations: The argument suggests that developed countries, historically responsible for higher emissions, should lead in mitigation, while developing nations focus on adaptation. Criticism of International Frameworks: Developed countries have not met their emission reduction targets or financial commitments. International agreements like the Paris Agreement are seen as inadequate compared to the more equitable Kyoto Protocol. There is criticism that climate action is often more about preserving the existing global order rather than effectively addressing climate change. Alternative Approaches Focusing on Climate Change Adaptation Building Climate Resilient Infrastructure: Example: The Central Vista project in India aims to improve infrastructure resilience against climate impacts. Climate Proofing: Definition: Reducing GHG emissions associated with investments while increasing their resilience to climate impacts. Example: Elements of climate proofing are incorporated into India’s Smart City mission, focusing on sustainable urban development. Lifestyle and Behavioral Changes: Example: India’s Mission Life promotes conscious consumption to benefit both the environment and individual well-being. -Source: Indian Express Supreme Court of India on Taxation of Mineral Rights Context: The Supreme Court of India has recently addressed a crucial issue regarding the taxation of mineral rights, overturning its 1989 verdict and reaffirming the power of states in this context. This decision, delivered by a nine-judge Bench, clarifies the extent of authority both Parliament and states hold over mineral royalties. This landmark ruling will have significant implications for the distribution of mineral wealth and the financial autonomy of states. Relevance: GS II: Polity and Governance Dimensions of the Article: Supreme Court Decisions on Mining Regulation and Taxation Difference Between Royalty and Tax Mines and Minerals (Development and Regulation) Act, 1957 Supreme Court Decisions on Mining Regulation and Taxation 1989 Supreme Court Ruling: Authority on Mining Regulation: The seven-judge Bench ruled that the Central Government holds primary authority over mining regulation under the Mines and Minerals (Development and Regulation) Act, 1957, and Entry 54 of the Union List. State Powers: States were restricted to collecting royalties but were not permitted to impose additional taxes. Royalties were classified as taxes, thus any cess beyond the authority of the state was deemed invalid. 2004 Review and Current Verdict: Typographical Error: A five-judge Bench suggested a typographical error in the 1989 ruling, hinting that royalties might not be classified as taxes. Nine-Judge Bench Ruling: The Supreme Court’s nine-judge Bench overruled the 1989 decision, clarifying that royalties on minerals are not taxes under the MMDRA, 1957. Taxation Authority: The Court emphasized that the power to levy taxes on mineral rights resides with the states. Parliament can impose restrictions to prevent interference with mineral development but cannot directly tax mineral rights. Parliamentary Constraints: While Parliament can set constraints to ensure mineral development is not obstructed, it cannot impose taxes on mineral rights directly. Federal System and Uniformity: Allowing states to impose taxes on mineral rights could disrupt the federal system and lead to inconsistencies in mineral pricing and development. This could adversely affect metal development in India. Difference Between Royalty and Tax Royalty: Nature: Originates from an agreement between parties, compensating for rights and privileges. Relationship: Linked to the benefit or privilege granted by the grantor, often tied to the exploitation of resources. Legal Precedents: The Supreme Court in cases like Hingir-Rampur Coal Co. Ltd. vs. State of Orissa (1961) and State of West Bengal vs. Kesoram Industries Ltd. (2004) established royalties as contractual obligations with direct benefits. Tax: Nature: Imposed under statutory power without a direct benefit to the payer. Enforced by law, it does not require consent. Purpose: Collected for public purposes and is part of the common burden borne by all citizens, not linked to any specific privilege or benefit. Legal Precedents: Cases such as State of Himachal Pradesh vs. Gujarat Ambuja Cement Ltd. (2005) and Jindal Stainless Ltd. vs. State of Haryana (2017) highlight taxes as mandatory payments not tied to any specific benefit. Implications For States: States can levy taxes on mineral rights, leading to potential legal uncertainty and economic impacts. For Parliament: Needs to ensure uniform mineral pricing and development interests while preventing states from overstepping their taxation authority. Mines and Minerals (Development and Regulation) Act, 1957 Overview: Purpose: The Mines and Minerals (Development and Regulation) Act, 1957, is a crucial piece of legislation governing the mining sector in India. It aims to ensure the development of the mining industry, conservation of minerals, and enhanced transparency and efficiency in mineral exploitation. Scope: The Act has undergone multiple amendments to address evolving needs and challenges in the sector, aligning with national economic and security interests. Key Amendments: 2015 Amendment: Auction Method: Introduced mandatory auctioning of mineral concessions to increase transparency in the allocation process. District Mineral Foundation (DMF): Established DMFs to channel benefits to areas and communities affected by mining activities. National Mineral Exploration Trust (NMET): Created NMET to support and boost mineral exploration activities. Penalties for Illegal Mining: Imposed stringent penalties to combat illegal mining practices. 2016 and 2020 Amendments: Purpose: Addressed specific sectoral issues to ensure the efficient functioning of the mining industry. 2021 Amendment: Captive and Merchant Mines: Captive Mines: Operated by companies for their own use, with the flexibility to sell up to 50% of the annual production in the open market after meeting the needs of their end-use plants. Merchant Mines: Operated to sell extracted minerals in the open market to various buyers, including industries without their own mining operations. Auction-Only Concessions: Ensured that all private-sector mineral concessions are granted exclusively through auctions. 2023 Amendment: Critical Minerals: Removal of Restrictions: Removed six minerals from the list of twelve atomic minerals restricted to exploration by State agencies. Exclusive Auctioning: Empowered the government to auction mineral concessions specifically for critical minerals. Exploration Licences: Introduced licenses to attract foreign direct investment and engage junior mining companies in exploring deep-seated and critical minerals. Focus Areas: Encouraging Private Sector: Aimed at reducing import dependency and expediting exploration and mining of critical minerals. Future Technologies: Recognized the significance of minerals like lithium, graphite, cobalt, titanium, and rare earth elements for advancing technologies and India’s energy transition goals, including the commitment to achieve net-zero emissions by 2070. -Source: Indian Express Panchamasali Lingayats Demand Inclusion in OBC Category 2A Context: Recently, the Panchamasali Lingayats, a sub-caste within Karnataka’s dominant Lingayat community, have been demanding inclusion in Category 2A of the Other Backward Classes (OBC). This move aims to secure a 15% quota in government jobs and educational admissions. The current quota for the community is 5% under Category 3B of Karnataka’s OBC quota matrix. Relevance: Polity and Governance Dimensions of the Article: Panchamasali Lingayats’ Quota Demand Panchamasali Lingayats’ Quota Demand Background: Lingayats: A Hindu sub-caste known as ‘Veerashaiva Lingayats,’ followers of the 12th-century philosopher-saint Basavanna. Basavanna’s teachings emphasized a personal relationship with Lord Shiva and rejected orthodox Hindu practices. Panchamasalis: A prominent sub-caste within the Lingayat community, they are the largest group, constituting nearly 70% of the Lingayat population and about 14% of Karnataka’s total population. Current Quota System in Karnataka: Karnataka’s 32% OBC reservation in government jobs and educational institutions is divided among five categories. Category 2A: Includes 102 castes and is the category the Panchamasalis want to join. The quota system is designed to prevent dominant OBC groups from monopolizing benefits and ensures equitable distribution based on marginalization. Previous Government Actions: Quota Reallocation: The previous state government reallocated the 4% Muslim quota under Category 2B to the Vokkaligas and Lingayats, creating new Categories 2C and 2D. Increased the Lingayat quota from 5% to 7%. Increased the Vokkaliga quota from 4% to 6%. Despite these changes, Panchamasalis continued to push for inclusion in Category 2A. Legal Challenges: The reallocation faced legal issues and is under review. Current Situation: Legal and Survey Awaited: The state government is awaiting a legal resolution from the Supreme Court. The Karnataka Social, Economic, and Caste Survey, which may influence future quota plans, is also pending. Potential Inclusion in Central OBC List: The government is considering including all Lingayats in the central OBC list to balance the demands and manage quota allocations effectively. Central Government Quota: Presently, only 16 Lingayat sub-castes classified as “very backward” receive reservations under the central OBC quota. Significance: The Panchamasali Lingayats’ demand reflects the broader struggle within the OBC quota system to address relative marginalization and ensure equitable access to benefits for various sub-castes. -Source: The Hindu, PIB Magnetotactic Bacteria Context: Researchers have uncovered fossil remains of magnetic particles, known as magnetofossils produced by magnetotactic bacteria, in rock varnish layers in Ladakh, India. Relevance: Facts for Prelims Magnetotactic Bacteria Overview: Nature: These are primarily prokaryotic microorganisms. Habitat: They are found in both freshwater and marine environments. Behavior: Magnetotactic bacteria align themselves with the Earth’s magnetic field. Mechanism: They contain iron-rich particles in specialized structures, acting as a biological compass. Function: The iron crystals, made of magnetite or greigite, assist the bacteria in navigating oxygen gradients within their habitats. Significance: Historical Interest: These bacteria are considered to represent some of Earth’s earliest life forms due to their ancient magnetic navigation system. Research Highlights and Implications Rock Varnish Research: Observation: Similarities were noted between rock varnish found in Ladakh and the rock varnish observed on Mars by the Perseverance rover. Findings: Elevated levels of oxidized manganese (Mn4+) and carboxylic acid groups were detected, suggesting organic signatures on the varnish surface. Implication: The magnetic minerals in these rock varnishes are likely of biotic origin. Significance for Space Exploration: Biosignature Detection: Identifying biotic signatures in rock varnish helps refine methods for detecting life on other planets. Future Missions: This research is valuable for upcoming space missions, including those by ISRO and other space agencies, focusing on Mars and its potential habitability. -Source: The Hindu, PIB Lal Dora-Free Scheme in Haryana Context: All villages of Haryana have been made Lal Dora-free. The state government launched a scheme to make villages “Lal Dora-free” on Good Governance Day on 25th December 2019. Relevance: Facts for Prelims Lal Dora-Free Scheme in Haryana Overview: Launch Date: December 25, 2019, on Good Governance Day. Objective: To establish clear ownership of property in rural areas by mapping land parcels and issuing legal ownership cards. Key Features: Mapping and Documentation: Utilizes drone technology for accurate mapping of land parcels in villages. Record of Rights: Provides a legal document called the ‘Record of Rights’ to village household owners, formalizing ownership. Field Verification: Extensive field verification was conducted to inspect properties falling under ‘Lal Dora’ (a term used for land in villages that traditionally lacked formal documentation). Historical Context: Lal Dora Land: Historically, areas designated as ‘Lal Dora’ in Punjab and Haryana, and ‘abadi’ in other regions, were excluded from formal surveys and lacked documented land rights. Land Ownership Issues: Many Indian village communities relied on actual possession rather than formal documentation, making it difficult for property owners to use their land as collateral for loans. Significance: Enhanced Property Rights: The scheme addresses the long-standing issue of undocumented land ownership, providing rural property owners with legal recognition of their rights. Financial Accessibility: With formal ownership documents, rural property owners can now use their properties as financial assets, improving access to banking services and loans. Impact: Legal Clarity: The scheme aims to enhance the clarity and security of property ownership in rural Haryana, promoting better governance and economic opportunities for rural residents. -Source: The Hindu Olympic Order Context: Recently, Abhinav Bindra was bestowed with the Olympic Award by the International Olympic Committee. Relevance: Facts for Prelims Olympic Order Overview: Established: 1975 Purpose: The highest award given by the International Olympic Committee (IOC) for outstanding contributions to the Olympic Movement. Grades: Gold: Reserved for heads of state and exceptional circumstances. Silver: Awarded to individuals for significant contributions. Bronze: Given for notable service to the Olympic Movement. Design: Insignia: Features a collar or chain with the five Olympic rings and the kotinos emblem, which is an olive wreath. Lapel Badge: Recipients receive a badge in the corresponding grade (gold, silver, or bronze). Significance: Recognition: The Olympic Order honors individuals who have made exceptional contributions to sport and the Olympic Movement. Promotion of Values: It symbolizes the ideals of unity, friendship, and fair play that the Olympics represent. Commitment: Reflects the IOC’s dedication to recognizing those who have advanced the cause of sport and the Olympic Movement on a global scale. -Source: India Today

Daily PIB Summaries

PIB Summaries 25 July 2024

CONTENTS Economic Survey 2023-24 Economic Survey 2023-24 Context: Recently, Economic Survey 2023-24 was tabled in Parliament by Union Minister for Finance and Corporate Affairs. Relevance: GS III: Indian Economy Dimensions of the Article: Economic Survey Highlights Economic Survey Highlights Chapter 1: State of the Economy – Steady as She Goes GDP Growth Projection: Real GDP Growth: Conservatively projected at 6.5–7% for FY24, with actual growth at 8.2%. Quarterly Performance: Exceeded 8% in three out of four quarters of FY24. Economic Performance: Gross Value Added (GVA): Grew by 7.2% (at 2011-12 prices). Net Taxes: Increased by 19.1% at constant prices. Inflation and External Sector: Retail Inflation: Reduced from 6.7% in FY23 to 5.4% in FY24. Current Account Deficit (CAD): Improved to 0.7% of GDP from 2.0% in FY23. Economic Recovery: Comparison to FY20: Real GDP in FY24 was 20% higher than FY20. Tax Collection: 55% from direct taxes, 45% from indirect taxes. Government Expenditure: Ensured free food grains for 81.4 crore people; increased capital spending. Chapter 2: Monetary Management and Financial Intermediation – Stability is the Watchword Banking and Financial Sector: Policy Rate: RBI maintained a steady policy repo rate at 6.5%. Credit Disbursal: ₹164.3 lakh crore, growing by 20.2% by March 2024. Growth in Broad Money (M3): 11.2% YoY as of 22 March 2024, up from 9% previous year. Banking Sector Health: Credit Growth: Robust, with significant growth in lending to services, personal loans, and agriculture. Industrial Credit Growth: 8.5%, up from 5.2% a year ago. IBC Effectiveness: 31,394 corporate debtors disposed of, involving ₹13.9 lakh crore. Capital Markets: Primary Capital Markets: Facilitated capital formation of ₹10.9 lakh crore. Market Capitalisation: Significant surge, with the market capitalisation to GDP ratio being the fifth largest globally. Financial Inclusion: Focus: Enabler for sustainable growth, reduction of inequality, and poverty elimination. Challenges: Digital Financial Inclusion (DFI) and transformation of the financial sector. Insurance and Microfinance: Insurance Market: Poised to be one of the fastest-growing. Microfinance: Second largest in the world after China. Chapter 3: Prices and Inflation – Under Control Inflation Management: Retail Inflation: Maintained at 5.4%, the lowest since the pandemic. Price Cuts: LPG, petrol, and diesel prices reduced, contributing to lower fuel inflation. Food Inflation: Increased to 7.5% in FY24 from 6.6% in FY23 due to supply chain disruptions and weather impacts. Government Actions: Price Stability Measures: Price reductions, stock management, open market operations, and trade policy measures. Regional Inflation Variations: States and UTs: 29 recorded inflation below 6% in FY24. Rural vs. Urban Inflation: Higher rural inflation in states with higher overall inflation. Future Projections: RBI Projections: Inflation expected to fall to 4.5% in FY25 and 4.1% in FY26. IMF Forecasts: 4.6% inflation in 2024 and 4.2% in 2025 for India. Chapter 4: External Sector – Stability Amid Plenty External Sector Performance: Rank Improvement: India’s rank in the World Bank’s Logistics Performance Index improved from 44th in 2018 to 38th in 2023. Current Account Deficit (CAD): Narrowed to 0.7% of GDP in FY24 due to moderated merchandise imports and rising services exports. Trade and Export Performance: Goods Exports Share: Increased to 1.8% in FY24 from an average of 1.7% during FY16-FY20. Services Exports: Grew by 4.9% to USD 341.1 billion, primarily driven by IT/software services and ‘other’ business services. Remittances and External Debt: Remittances: India is the top recipient globally, with USD 120 billion in 2023. External Debt: Maintained at a sustainable level, with a debt to GDP ratio of 18.7% as of March 2024. Chapter 5: Medium-Term Outlook – A Growth Strategy for New India Policy Focus Areas: Job and Skill Creation: Essential for future growth. Agriculture Potential: Maximizing output and efficiency. MSME Bottlenecks: Addressing challenges faced by micro, small, and medium enterprises. Green Transition: Managing environmental changes while ensuring growth. China Relationship: Strategically navigating economic interactions. Corporate Bond Market: Expanding and deepening the market. Inequality and Health: Tackling socio-economic disparities and improving health outcomes. Amrit Kaal’s Growth Strategy: Key Areas: Boosting private investment, expanding MSMEs, leveraging agriculture, financing green initiatives, bridging education-employment gaps, and strengthening state capacities. Growth Target: Achieving 7%+ growth requires a tripartite collaboration among the Union Government, State Governments, and the private sector. Chapter 6: Climate Change and Energy Transition – Dealing with Trade-Offs Climate Action Progress: Climate Goals: India is on track to meet its 2-degree centigrade warming target, according to the International Finance Corporation. Renewable Energy Capacity: Reached 45.4% of installed electricity generation capacity as of 31 May 2024. Emission Intensity: Reduced by 33% from 2005 levels by 2019, with a GDP growth CAGR of about 7% and emissions growth CAGR of about 4%. Energy Initiatives: Clean Coal and Energy Savings: Initiatives include the Coal Gasification Mission. Total annual energy savings of 51 million tonnes of oil equivalent, translating to ₹1,94,320 crore in cost savings and 306 million tonnes of emissions reduction. Renewable Energy Demand: Increased demand for land and water due to expansion in renewable energy and clean fuels. Green Bonds: Issued ₹16,000 crore in January-February 2023 and ₹20,000 crore in October-December 2023. Chapter 7: Social Sector – Benefits that Empower Welfare and Digitisation: Welfare Expenditure Growth: Grew at a CAGR of 12.8% from FY18 to FY24, surpassing the nominal GDP growth of 9.5%. Digitisation Impact: Enhanced efficiency and impact of welfare programs through digital means. Social Indicators: Inequality Reduction: Gini coefficient decreased from 0.283 to 0.266 in rural areas and from 0.363 to 0.314 in urban areas. Ayushman Bharat Scheme: More than 34.7 crore cards generated, covering 7.37 crore hospital admissions. Mental health support includes 22 disorders under the Ayushman Bharat – PMJAY health insurance. Educational and Housing Achievements: Early Childhood Education: ‘Poshan Bhi Padhai Bhi’ program aims to create a universal preschool network at Anganwadi Centres. Higher Education Enrollment: Increased by 31.6% since FY15, with notable growth in underprivileged sections and female enrollment. R&D Progress: Nearly 1 lakh patents granted in FY24, up from less than 25,000 in FY20. Infrastructure Development: Housing: 2.63 crore houses constructed under PM-AWAS-Gramin in nine years. Road Construction: 15.14 lakh km completed under the Gram Sadak Yojana since 2014-15. Chapter 4: External Sector – Stability Amid Plenty Global Performance: India’s external sector remains robust despite geopolitical challenges. It improved its rank in the World Bank’s Logistics Performance Index from 44th to 38th (2018-2023). Trade Balance: Merchandise import moderation and rising services exports have narrowed the current account deficit by 0.7% in FY24. Export Market Share: India’s global export share in goods increased to 1.8% in FY24 from an average of 1.7% (FY16-FY20). Services exports grew by 4.9% to USD 341.1 billion. Remittances: India is the top global remittance recipient, reaching USD 120 billion in 2023. External Debt: The external debt-to-GDP ratio stands at a sustainable 18.7% as of March 2024. Chapter 5: Medium-Term Outlook – A Growth Strategy for New India Policy Focus: Key areas include job creation, agriculture, MSME support, green transition, addressing inequality, and improving health. Growth Strategy: Six focal areas: private investment, MSME expansion, agriculture, green finance, education-employment gap, and state capacity building. Economic Growth: To achieve 7%+ growth, a collaborative effort between Union, State governments, and private sector is essential. Chapter 6: Climate Change and Energy Transition: Dealing with Trade-Offs Climate Actions: India is on track to meet 2°C warming goals. Non-fossil fuel share in electricity capacity reached 45.4%. Emissions and GDP: Emission intensity of GDP reduced by 33% (2005-2019). Energy savings and emission reductions have been significant. Green Bonds: Issued ₹16,000 Crore in early 2023 and ₹20,000 Crore later in the year. Chapter 7: Social Sector – Benefits that Empower Welfare Impact: Digitisation has enhanced welfare impact. Nominal GDP growth (9.5%) outpaced welfare expenditure growth (12.8%). Health and Education: Major achievements include Ayushman Bharat coverage, early childhood education through Anganwadi Centres, and increased higher education enrolment. Infrastructure and Innovation: Significant progress in R&D and infrastructure, including housing and road construction. Chapter 8: Employment and Skill Development: Towards Quality Labour Market: Unemployment rates are low; youth unemployment has declined significantly. Female labour force participation is increasing. Sectoral Employment: Employment is rising in larger factories and sectors like manufacturing, with a growing gig workforce. Job Creation: India needs to create about 78.5 lakh jobs annually until 2030. Direct public investment can significantly contribute to job creation. Chapter 9: Agriculture and Food Management – Plenty of Upside Left If We Get It Right Sector Growth: The agriculture sector has grown steadily with allied sectors emerging as growth centers. Credit and Kisan Credit Card issuance have increased. Research Payoff: Agricultural research investments yield significant returns. Chapter 10: Industry – Small and Medium Matters Industrial Growth: The sector achieved 9.5% growth in FY24, with notable contributions from chemicals, pharmaceuticals, and electronics. Manufacturing: Increased focus on R&D and innovation is crucial. PLI schemes have attracted substantial investments and job creation. Chapter 11: Services – Fuelling Growth Opportunities Sector Contribution: Services now contribute 55% to GVA. India’s services exports and digital services share have grown. Transport and Tourism: Significant growth in aviation, railways, and tourism. The real estate sector also saw substantial growth. Chapter 12: Infrastructure – Lifting Potential Growth Public Investment: Increased investment in infrastructure, including road construction, railways, and airports. Rank Improvements: Improved rankings in international logistics and clean energy investments. Chapter 13: Climate Change and India: Why We Must Look at the Problem Through Our Lens Climate Strategies: Critique of global climate strategies; emphasis on India’s unique approach focusing on harmonious human-nature relationships and sustainable practices.

Daily Editorials Analysis

Editorials/Opinions Analysis For UPSC 25 July 2024

CONTENTS An Outlining of Urban Transformation Strategies Is immunity for the President and Governors Absolute? An Outlining of Urban Transformation Strategies Context: Around 50 crore people, making up about 36% of India’s population, live in cities. The urban population has been steadily increasing by 2% to 2.5% annually. This rapid urbanization in India necessitates ongoing investments with clear vision and commitment. The new government’s first budget recognizes cities as growth hubs and provides various options and opportunities for their planned development and growth. Relevance: GS1- Urbanization Population and Associated Issues Poverty and Developmental Issues Mains Question: State governments, their municipalities and also citizens will have to take forward the provisions outlined in the recent Budget to ensure planned urban development and growth. Discuss. (15 Marks, 250 Words). Housing Issues: Since 2015, the Pradhan Mantri Awas Yojana (Urban) has been implemented to provide housing for the Economically Weaker Sections (EWS) and Middle Income Groups (MIG), delivering 85 lakh housing units with an investment of about ₹8 lakh crore. The central government contributed a quarter of this amount, with the remainder coming from beneficiaries and state governments. The budget proposes further support for constructing an additional one crore units in urban areas, involving a ₹10 lakh crore investment, including ₹2.2 lakh crore in central assistance over the next five years. For the current year, ₹30,171 crore has been allocated, some of which will be used to offer interest subsidies for affordable loans. Migrant workers in industries often live in slums and seek decent housing near their jobs. The budget introduces new rental housing with dormitory-style accommodations for industrial workers, to be developed through public-private partnerships (PPP) with upfront financial support under the Viability Gap Funding (VGF) scheme. The central government will provide 20% of this funding, with potential additional support from state governments. Cities need core infrastructure like water supply, sanitation, roads, and sewerage systems. The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) allocates ₹8,000 crore for this purpose. While this may not seem substantial, the Finance Minister announced a VGF window for projects undertaken as commercial ventures in PPP Mode. Many cities are familiar with the PPP model, which should help accelerate the development of essential infrastructure where it is lacking and upgrade it where it is insufficient. The Budget Speech highlights a significant investment of ₹11.11 lakh crore for capital expenditure in infrastructure, including highways and various sectors, with opportunities for cities to secure a portion. Additionally, ₹1.50 lakh crore is available to states as an interest-free loan for infrastructure development, which states can also utilize for city projects. The Smart Cities Mission, launched in 2015, received a budget of ₹8,000 crore for 2023-24, reduced to ₹2,400 crore for 2024-25 to cover remaining commitments. However, a new initiative, the National Urban Digital Mission (NUDM), has been introduced with a provision of ₹1,150 crore, focusing on digitizing property and tax records and implementing GIS mapping. This will help urban local bodies manage finances better and assist property owners. City Planning: The Budget emphasizes the planned development of cities. Municipalities will receive a ‘Finance Commission Grant’ of ₹25,653 crore, along with ₹500 crore for incubating new cities. With mass rapid transit systems, cities can pursue transit-oriented development, creating dense areas around transit hubs without increasing road traffic. A well-designed mobility plan can link cities with peri-urban areas and ‘new cities.’ Consequently, the Budget prioritizes economic and transit planning for orderly development using town planning schemes. It also proposes promoting electric bus systems in cities, allocating ₹1,300 crore for this purpose. E-buses provide a cost-effective and eco-friendly transportation solution, despite their higher initial cost, which the budgetary support aims to mitigate. Solid Waste Management: Solid waste management (SWM) is one of the most significant challenges facing cities today. The Budget has emphasized introducing viable projects for SWM in partnership with state governments and financial institutions. States and municipalities can also utilize the Viability Gap Funding (VGF) for this purpose. Cities like Indore, Madhya Pradesh, have demonstrated how SWM can be financially sustainable. The Street Vendors Act, 2014, was enacted to regulate street vendors in public areas and protect their rights. It also aims to develop street-vending plans and zones to ensure street vending is a safe and healthy option for consumers and vendors. The Budget proposes developing 100 weekly ‘haats’ or street food hubs in selected cities. States are encouraged not to limit themselves to this number and to facilitate all cities in creating street-vending plans and establishing ‘haats’ throughout the city as needed. Conclusion: While the Budget provides various financial and procedural measures to promote planned urbanization, cities, represented by municipalities and guided by state governments, must demonstrate the vision and determination to utilize resources from the Union Budget and their own. Above all, citizen participation will be essential for the success of any city’s development strategy. Is Immunity for the President and Governors Absolute? Context: A three-judge Bench led by Chief Justice of India D.Y. Chandrachud has involved the Union government and requested the assistance of the Attorney General of India to determine whether the “blanket” immunity granted under Article 361 to the President and Governors, while in office, undermines fairness, constitutional morality, and violates the fundamental rights to equal protection of the law and a fair trial. Relevance: GS2- Constitutional Bodies Role of Governor Mains Question: Does Article 361 grant absolution to the Governor even against criminal charges? Analyse if there is a need to review the immunity granted to the President and Governors in the Indian political system. (15 Marks, 250 Words). What is the case? This question arose from a petition filed by a contractual woman employee of the Raj Bhavan, who accused the West Bengal Governor of sexual harassment and molestation. The woman, referred to as ‘XXX’ in Supreme Court records to protect her identity, argued that the “absolute immunity” given to the Governor is based on the outdated belief that “the King can do no wrong.” She claimed that the police handled her complaint against the constitutional authority in a “cavalier manner,” citing the immunity clause. The woman said her only option is to wait for the Governor to leave office before her complaint of gender violence can be investigated. She fears that delaying the criminal investigation against such a powerful individual may ultimately deny her justice during the trial. She has urged the court to require the State of West Bengal, through its police force, to conduct an investigation. The employee has also asked the court to establish guidelines and clarify the extent of the immunity. Do Governors have immunity? Article 361(1) states that the President and Governors are not answerable to any court for acts performed in the exercise of their powers and duties. However, the first proviso to Article 361(1) allows the conduct of the President to be reviewed by any court, tribunal, or body designated by either House of Parliament for investigating a charge under Article 61 (impeachment for violation of the Constitution). The second provison to Article 361(1) specifies that this immunity does not prevent a person from suing the Centre or the relevant State. The clause in question before the Supreme Court in the current case is clause (2) of Article 361, which states that “no criminal proceedings whatsoever shall be instituted or continued against the President, or the Governor of a State, in any court during his term of office.” The Supreme Court has decided to interpret clause (2) of Article 361 to determine when exactly criminal proceedings can be instituted against a President or Governor. In essence, the court aims to examine whether this protective immunity is “unfettered or unbridled.” Interestingly, the Constituent Assembly debates on Article 361 (Draft Article 302) in September 1949 show that a Member had noted the vague language of clause (2). The discussion concerned the phrase “during the term of his office” in Article 361(2). The Member questioned whether this meant the President or a Governor could maintain immunity by remaining in office despite committing a criminal act. The question was left unresolved. What are the Arguments Raised? The petitioner contends that the bar on criminal proceedings under Article 361(2) does not apply to illegal acts or those that “strike at the roots” of a citizen’s fundamental rights. She claims that Governor Bose’s alleged actions violated her right to life under Article 21 of the Constitution. The immunity under Article 361 should not hinder the police’s power to investigate the offense or to name the perpetrator in the complaint or FIR. The employee asserts that no part of the Governor’s powers allows him to sexually abuse employees. In the case of Rameshwar Prasad vs. Union of India, the Supreme Court interpreted that ‘civil immunity’ under Article 361(4) did not remove the power of citizens to challenge the actions of the President or Governors on the grounds of ‘mala fides.’ An analogy could be drawn to interpret criminal immunity in the same way. The petition also cited a ruling by the Madhya Pradesh High Court in Ram Naresh vs. State of Madhya Pradesh, which held that the immunity would not prevent the police from investigating an offense, including recording the Governor’s statement. Conclusion: The SC’s Decision to Examine Immunity Granted under Article 361 could have major consequences for – How constitutional protections for high-ranking officials are interpreted, and The systems of accountability for addressing misconduct.

Daily Current Affairs

Current Affairs 25 July 2024

CONTENTS MEA’s Development Assistance Plans in Union Budget 2024-25 2024 UNAIDS Global AIDS Update Supreme Court Split Verdict on GM Mustard NPS Vatsalya Scheme Vishnupad Temple Climate Finance Taxonomy MEA’s Development Assistance Plans in Union Budget 2024-25 Context: In the recently announced Union Budget 2024-25, the Ministry of External Affairs (MEA) has outlined its development assistance plans, focusing on strategic partners and neighbouring countries. This initiative aims to promote regional connectivity, cooperation, and stability in line with India’s Neighbourhood First Policy. Relevance: GS III: Indian Economy Dimensions of the Article: Distribution of Development Aid Among Countries: Benefits of Development Aid Granted to Neighbouring Countries India’s Neighbourhood First Policy Challenges in India’s Relationship with Neighbouring Countries Way Forward Distribution of Development Aid Among Countries: Bhutan: ₹2,068.56 crore (highest allocation, though slightly reduced from ₹2,400 crore last year) Nepal: ₹700 crore (increase from ₹550 crore last year) Maldives: ₹400 crore (consistent allocation despite previous year’s higher revised amount of ₹770.90 crore) Sri Lanka: ₹245 crore (increase from ₹150 crore last year) Afghanistan: ₹200 crore (for aiding stability and development amidst challenges) Iran: ₹100 crore (for the Chabahar Port Project, consistent allocation for the past three years) Africa: ₹200 crore (for collective aid to African countries, reflecting India’s expanding engagement) Seychelles: ₹40 crore (increase from ₹10 crore) Benefits of Development Aid Granted to Neighbouring Countries: Enhanced Diplomatic Ties: Development aid strengthens political and economic relationships, fostering closer ties with recipient countries. For example, Bhutan’s support on the Doklam issue highlights this diplomatic benefit. Regional Stability: Financial support helps stabilize neighboring countries, contributing to regional security. Stability in countries like Afghanistan can benefit India’s strategic interests by reducing regional volatility. Economic Growth: Aid contributes to infrastructure projects and development programs, boosting economic growth in recipient countries. For instance, the Chabahar Port Project in Iran supports regional connectivity and trade. Increased Trade and Investment Opportunities: Improved infrastructure and economic conditions in neighboring countries can lead to increased trade and investment opportunities for India. The Agartala-Akhaura railway project between India and Bangladesh exemplifies such benefits. Influence and Alliances: Aid allows India to build alliances and exert influence, ensuring neighboring countries align more closely with Indian interests. Bhutan’s favorable stance on the Doklam issue demonstrates the impact of strategic aid. Humanitarian Assistance: Aid addresses urgent humanitarian needs such as healthcare, education, and disaster relief, improving the quality of life in recipient countries. India’s “Operation Karuna” for Myanmar during Cyclone Mocha is a prime example. Soft Power and Regional Leadership: Investing in the development of neighboring countries enhances India’s soft power and reputation as a responsible regional leader. It helps alleviate perceptions of India as a “Big Brother” among its smaller neighbors. India’s Neighbourhood First Policy Overview: Inception: The Neighbourhood First Policy was established in 2008. Scope: It focuses on managing relationships with India’s immediate neighbours: Afghanistan, Bangladesh, Bhutan, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. Objectives: Enhance physical, digital, and people-to-people connectivity; boost trade and commerce; and develop an institutional approach to manage relations with neighbouring countries. Importance of the Neighbourhood First Policy: Security Concerns: Addresses threats from terrorism and illegal migration, including smuggling of weapons and drugs. Enhances border security and monitors demographic changes due to illegal migration. Regional Relations: Engages with regional and multilateral organisations to counter terrorism, particularly focusing on Pakistan’s role. Builds infrastructure and stabilises border regions through improved connectivity and development projects. Economic and Strategic Benefits: Expands India’s influence and builds economic linkages with neighbouring countries. Facilitates defense cooperation and maritime domain awareness. Supports the development of the North-Eastern region and regional connectivity projects, such as the India-Myanmar-Thailand Trilateral Highway. Cultural and Tourism Initiatives: Promotes tourism, which fosters cultural exchange and increases interest in Indian culture and businesses. Regional Mechanisms: Engages in regional organisations like SAARC and BIMSTEC to assert leadership and counterbalance other major powers’ influence. Challenges in India’s Relationship with Neighbouring Countries: Border Disputes: Disagreements over borders, especially with China and Pakistan, lead to tensions. China’s growing influence and ties with Pakistan pose strategic challenges. Militant Groups: Pakistan’s support to militant groups like Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM) that target India. Illegal Migration: Influx of illegal migrants from Bangladesh raises demographic and security concerns. Economic and Trade Barriers: Economic issues and trade barriers with countries like Pakistan, Bangladesh, and Nepal affect relations. Trade restrictions and tariffs exacerbate diplomatic tensions. Water Disputes: Conflicts over river waters, such as the Indus and Teesta rivers, strain relations with Pakistan and Bangladesh. Political Instability: Political instability in countries like Nepal and Bangladesh impacts bilateral relations. Humanitarian and Environmental Issues: Disputes over minority treatment and environmental impacts, such as flooding in Bangladesh and concerns over Bhutan’s ecology. Regional Organisation Disagreements: Internal disagreements within SAARC and BIMSTEC can hinder effective cooperation. Way Forward: Diplomatic Engagement: Maintain regular diplomatic dialogues and high-level meetings to resolve issues. Dispute Resolution: Develop mechanisms for resolving disputes, such as joint committees and arbitration panels. Trade Agreements: Negotiate fair trade agreements to address imbalances and promote mutual benefits. Infrastructure Development: Collaborate on improving connectivity through roads, railways, and energy corridors. Regional Security: Coordinate on security initiatives to address common threats, including terrorism and illegal migration. Educational and Tourism Initiatives: Increase initiatives to build mutual understanding and goodwill. Disaster and Environmental Management: Collaborate on managing natural disasters and environmental problems through joint efforts and regional plans. Active Participation: Participate actively in regional organisations to address issues and improve decision-making. Balanced Policies: Ensure domestic policies align with international implications and adhere to the principles of the Gujral Doctrine. -Source: Indian Express 2024 UNAIDS Global AIDS Update Context: Recently, the 2024 UNAIDS Global AIDS Update, titled “The Urgency of Now: AIDS at a Crossroads,” presented a critical overview of the current state of the HIV/AIDS epidemic and the global response to it. This update underscores the pressing need for renewed efforts and strategies to combat the epidemic effectively. Relevance: GS II: International Relations Dimensions of the Article: HIV/AIDS Key Highlights of the Reports on HIV/AIDS Key Suggestions from the Report Role of UNAIDS HIV/AIDS: Acquired Immunodeficiency Syndrome (AIDS) is a chronic, potentially life-threatening condition caused by the Human Immunodeficiency Virus (HIV). HIV’s Impact: HIV attacks the body’s immune system, increasing vulnerability to other infections and diseases. Progression to AIDS: If HIV is not treated, it can progress to AIDS. Transmission: Sexually transmitted infection (STI). Spread by contact with infected blood, illicit injection drug use, or needle sharing. Can be transmitted from mother to child during pregnancy, childbirth, or breastfeeding. Treatment: No effective cure currently exists; HIV is a lifelong condition. Proper medical care, specifically Antiretroviral Therapy (ART), can control HIV. Individuals with effective HIV treatment can lead long, healthy lives and protect their partners. Key Highlights of the Reports on HIV/AIDS Global Progress: Reduction in New Infections: There has been a 39% reduction in new HIV infections globally since 2010, with sub-Saharan Africa achieving a 56% decline. Current Statistics: Fewer people acquired HIV in 2023 compared to any point since the late 1980s. Almost 31 million people were receiving antiretroviral therapy (ART). Decrease in AIDS-Related Deaths: AIDS-related deaths have dropped to their lowest level since 2004 due to increased access to ART. Regional Disparities: Sub-Saharan Africa: Significant progress has been made in reducing HIV infections. Other Regions: Eastern Europe, Central Asia, Latin America, and the Middle East and North Africa have seen rising new HIV infections. New Infections: For the first time, more new HIV infections occurred outside sub-Saharan Africa than within it. Key Populations: High Risk Groups: Sex workers, men who have sex with men, people who inject drugs, transgender people, and people in prisons continue to face high risks of HIV infection due to inadequate prevention programs and persistent stigma. Challenges: Community-Led Interventions: These are critical but often underfunded and unrecognized. Prevention Efforts: There are notable deficiencies in access to services like pre-exposure prophylaxis (PrEP) and harm reduction for people who inject drugs. ART Access: About 9.3 million people living with HIV are not receiving ART, with children and adolescents particularly affected. Key Suggestions from the Report Expansion of HIV Prevention Services: Key Populations: Increase access to prevention services for key populations, including sex workers, men who have sex with men, people who inject drugs, transgender people, and people in prisons. Condom Programs: Reinstate and fund condom programs to promote safe sex, especially in regions where use has declined. Medication and Treatment Goals: Pre-Exposure Prophylaxis (PrEP): Scale up the availability and use of PrEP, aiming to reach 21.2 million users by 2025. ART Coverage: Ensure that 95% of people living with HIV are on ART by 2025, up from the current 77%. Childhood HIV Treatment: Improve diagnosis and treatment for children with HIV, aiming for a higher percentage of children receiving ART compared to the current 48%. Integration and Legal Framework: Integrated Services: Integrate HIV services with broader health services to address comorbidities like tuberculosis, hepatitis, and non-communicable diseases. Harmful Laws: Remove laws that criminalise HIV transmission, exposure, and non-disclosure, as well as those targeting key populations. Stigma Reduction: Implement programs to reduce stigma and discrimination in health care and community settings, and ensure legal protection for people living with HIV and key populations. Community and Funding: Community-Led Organizations: Strengthen the role of community-led organizations, aiming for them to deliver 30% of testing and treatment services and 80% of prevention services for high-risk populations. Funding Needs: Address the shortfall in funding for HIV programs, with an estimated additional USD 9.5 billion needed by 2025. Explore new funding sources and mechanisms to sustain the HIV response, particularly in low- and middle-income countries. Role of UNAIDS Model for Reform: UNAIDS is a model for United Nations reform and is the only cosponsored Joint Programme in the UN system. Expertise and Representation: It leverages the expertise of 11 UN system Cosponsors and includes civil society representation on its governing body. Global Effort: UNAIDS leads the global effort to end AIDS as a public health threat by 2030, aligning with the Sustainable Development Goals. -Source: Indian Express Supreme Court Split Verdict on GM Mustard Context: Recently, the Supreme Court pronounced a split verdict on the validity of the Centre’s 2022 decision granting conditional approval for the environmental release of genetically modified (GM) mustard crops. This decision reflects the ongoing debate and legal challenges surrounding the introduction and regulation of GM crops in India. Relevance: Dimensions of the Article: Supreme Court Verdict on Genetically Modified Mustard Hybrid DMH-11 About Genetically Modified (GM) Crops Regulations on Genetically Modified (GM) Crops in India GM Mustard: Dhara Mustard Hybrid (DMH-11) Supreme Court Verdict on Genetically Modified Mustard Hybrid DMH-11 Case Overview: The Supreme Court delivered a split verdict on the Centre’s 2022 decisions regarding the environmental release of the genetically modified (GM) mustard hybrid DMH-11 for seed production and testing. The case was reviewed by Justices B V Nagarathna and Sanjay Karol, who had differing opinions on the matter. Justice Nagarathna’s Ruling: Invalidation: Justice Nagarathna deemed the decisions of the Genetic Engineering Appraisal Committee (GEAC) on October 18 and 25, 2022, invalid. She cited procedural flaws, such as the absence of a health department member and the absence of eight members from the GEAC meeting. Justice Karol’s Ruling: Proceed with Safeguards: Justice Karol found no manifest arbitrariness in the GEAC’s decisions. He supported the continuation of field trials but stressed that they should proceed with strict safeguards. Common Agreement: Need for Policy: Both justices concurred on the necessity for a national policy on GM crops. Action Directed: They directed the Centre to consult with all stakeholders and experts within four months to formulate this policy. Referral: The matter has been referred to Chief Justice of India D Y Chandrachud for further adjudication by the appropriate bench. About Genetically Modified (GM) Crops Definition: Genetic Modification: GM crops are plants whose DNA has been altered using genetic engineering techniques to introduce desirable traits, which may include enhanced resistance to pests, diseases, or environmental conditions, improved nutritional content, or increased yield. Benefits: Higher Yields: Contributes to food security by producing more food. Pest and Disease Resistance: Reduces the need for chemical pesticides. Herbicide Tolerance: Allows for more effective weed control. Nutritional Enhancement: Can be engineered to contain higher levels of essential nutrients, which can help address malnutrition. Environmental Impact: Reduced need for chemical inputs can lower the environmental impact of agriculture. Concerns and Controversies: Impact on Biodiversity: There is concern about GM crops affecting non-target species and reducing biodiversity. Health Concerns: While research indicates GM foods are safe, public concern remains regarding potential long-term health effects. Corporate Control: Patented GM seeds raise concerns about corporate dominance over the food supply and the economic impact on small-scale farmers. Ethical Issues: Ethical debates exist over the manipulation of genetic material, with advocates calling for clear labeling of GM products to inform consumer choice. Regulations on Genetically Modified (GM) Crops in India Regulatory Framework: Ministry of Environment, Forest, and Climate Change (MoEFCC): Oversees all activities related to genetically modified organisms (GMOs) in India. Environment (Protection) Act, 1986: The primary legislation under which GMOs are regulated. Genetic Engineering Appraisal Committee (GEAC): A statutory body under MoEFCC responsible for reviewing, monitoring, and approving all GMO-related activities, including import, export, transportation, manufacture, use, and sale. Key Responsibilities of GEAC: Approval Process: GEAC must approve the environmental release and commercial cultivation of GM crops. Regulations: The GEAC follows guidelines established under the Environment Act for the assessment and regulation of GMOs. Food Safety and Standards Authority of India (FSSAI): Compliance: GM foods must adhere to the regulations set by FSSAI, which governs food safety and quality standards. Current Status of GM Crops: Commercial Cultivation: As of now, only cotton is approved for commercial cultivation in India. GM Mustard: Dhara Mustard Hybrid (DMH-11) Background: Approval: In 2023, GEAC approved the environmental release of DMH-11 for seed production and testing, pending compliance with ICAR guidelines and other relevant regulations before its commercial release. Characteristics of DMH-11: Development: Created by scientists at Delhi University. Genetic Engineering: Uses genes from soil bacteria to enhance the hybridization capability of mustard, a typically self-pollinating plant, making it more suitable for hybrid production. Regulatory and Public Concerns: Court Case: The Supreme Court’s recent split verdict highlighted issues with the procedural validity of the GEAC’s approval process and emphasized the need for a national policy on GM crops. Consultation: The court has directed the Centre to consult stakeholders and experts to formulate this policy, reflecting ongoing concerns and the need for a comprehensive regulatory framework. -Source: The Hindu NPS Vatsalya Scheme Context The finance minister recently made the announcement of a new pension scheme under the National Pension Scheme (NPS), called NPS Vatsalya. Relevance: GS II: Government policies and Interventions Dimensions of the Article: NPS Vatsalya Scheme National Pension Scheme (NPS) NPS Vatsalya Scheme Overview: Purpose: Designed to help parents and guardians plan financially for their children’s future. Mechanism: Account Opening: Parents or guardians can open an NPS account for their minor children. Contributions: Contributions can be made towards the child’s retirement savings. Accumulation Period: Funds accumulate until the child turns 18. Transfer to Adult Account: Upon reaching adulthood, the accumulated amount is transferred to a standard NPS account. The plan can also be converted into a non-NPS plan if desired. Key Features: Similarity to NPS: Operates in a similar manner to the existing National Pension Scheme (NPS), adhering to the same principles of investment and fund management. National Pension Scheme (NPS) Overview: Objective: A voluntary retirement benefit scheme introduced by the Government of India to ensure a regular income post-retirement. Eligibility: Available to Indian citizens, including residents, non-residents, and Overseas Citizens of India. Function: Facilitates the accumulation of retirement savings through regular contributions during one’s career. Investment and Returns: Investment Options: Contributions are invested in market-linked instruments such as stocks and bonds, which offer the potential for higher returns compared to traditional fixed-income options. Flexibility: Subscribers can exit the plan before retirement or choose superannuation. Account and Tax Benefits: Permanent Retirement Account Number (PRAN): Unique to each subscriber and remains the same despite changes in employment, city, or state. Regulation: Governed by the Pension Fund Regulatory and Development Authority (PFRDA). Tax Deductions: Section 80C: Contributions to NPS are eligible for tax deductions. Section 80CCD(1B): Additional tax deduction of up to ₹50,000 is available. -Source: Indian Express Vishnupad Temple Context: Recently, the Finance Minister announced during her Union Budget speech that corridor projects will be built for the Vishnupad Temple at Gaya and the Mahabodhi Temple at Bodh Gaya in Bihar. Relevance: GS I: History Dimensions of the Article: Vishnupad Temple Mahabodhi Temple Vishnupad Temple Location and History: State: Bihar, India. Dedicated To: Lord Vishnu. Built: 1787. Order By: Queen Ahilyabai Holkar of Ahmadnagar. Location: Situated on the banks of the Falgu River. Architecture: Height: Approximately 100 feet. Structure: Features 44 pillars. Significance: Pitra Paksh: A significant period in the Hindu calendar when devotees visit the temple to perform rituals to honor their ancestors. Mahabodhi Temple Location and Historical Context: Location: Bodh Gaya, central Bihar, on the banks of the Niranjana River. Proximity: East of the Mahabodhi Tree, under which Gautam Buddha is believed to have attained enlightenment (nirvana). Historical Significance: The temple complex was first built by Emperor Ashoka in the 3rd century B.C., with the current structure dating from the 5th–6th centuries. Architecture: Height: 170 feet. Design: One of the earliest Buddhist temples built entirely in brick, from the late Gupta period. It has significantly influenced the development of brick architecture. Recognition: UNESCO World Heritage Site: Recognized in 2002. Key Points: The Vishnupad Temple is renowned for its architectural and cultural importance in Bihar, while the Mahabodhi Temple holds a pivotal role in Buddhist history and architecture, recognized globally for its heritage value. -Source: Indian Express Climate Finance Taxonomy Context: Presenting the Union Budget for 2024-25, Finance Minister announced that the government would develop ‘climate finance taxonomy’. Relevance: GS III: Environment and Ecology Climate Finance Taxonomy Definition and Purpose: System: A classification framework used to identify and categorize which parts of the economy can be marketed as sustainable investments. Objective: To guide investors and financial institutions in directing capital towards impactful investments aimed at addressing climate change. Applications: Climate-related Financial Instruments: Used to classify and standardize instruments like green bonds. Climate Risk Management: Helps in assessing and managing risks associated with climate change. Net-Zero Transition Planning: Assists in planning and implementing strategies for achieving net-zero greenhouse gas emissions. Climate Disclosure: Supports transparent reporting and disclosure related to climate impacts and sustainability. Global Examples: Countries with Developed Taxonomies: South Africa, Colombia, South Korea, Thailand, Singapore, Canada, Mexico. European Union: Has also developed its own taxonomy for sustainable investments. Significance: Climate Change Mitigation: Helps countries transition to a net-zero economy by aligning economic activities with science-based transition pathways. Capital Deployment: Promotes the allocation of capital towards climate adaptation and mitigation projects. Reducing Greenwashing: Helps in mitigating the risks of greenwashing by setting clear standards for what constitutes a sustainable investment. Enhancing Investment: Increases the availability of capital for climate-related projects, aiding countries like India in meeting their climate commitments and facilitating a green transition. Implications for India: Achieving Climate Commitments: Supports India’s goals for reducing greenhouse gas emissions and advancing its green transition. Investment Facilitation: Ensures that investments are directed towards projects with genuine environmental benefits, enhancing the effectiveness of climate finance. -Source: Indian Express  

Daily PIB Summaries

PIB Summaries 24 July 2024

CONTENTS Union Budget 2024-25  Union Budget 2024-25 Context: Recently, Union Budget 2024-25 was presented in the Parliament. It was the first general budget of the 18th Lok Sabha.  Relevance: GS III: Indian Economy Dimensions of the Article: Budget Theme Budget Priorities Budget Estimates 2024-25 Budget 2024-25: Tax Reforms and Simplification Budget Theme Focus Areas: Employment Skilling MSMEs Middle Class Prime Minister’s Package: Schemes: 5 initiatives to support employment and skilling Target: 4.1 crore youth over 5 years Central Outlay: ₹2 lakh crore Allocation for 2024-25: ₹1.48 lakh crore for education, employment, and skilling Budget Priorities Priority 1: Agriculture Productivity and Resilience Review: Comprehensive evaluation of agricultural research to boost productivity New Varieties: Release of 109 high-yielding, climate-resilient crop varieties (32 field and horticulture crops) Natural Farming: Introduce 1 crore farmers to natural farming over 2 years Certification and branding support Bio-Input Resource Centers: Establish 10,000 centers Self-Sufficiency in Pulses and Oilseeds: Enhance production, storage, and marketing of mustard, groundnut, sesame, soybean, and sunflower Digital Public Infrastructure (DPI): Implement DPI in agriculture with state partnerships over 3 years Funding for 2024-25: ₹1.52 lakh crore for agriculture and allied sectors Priority 2: Employment & Skilling Employment Schemes: 3 schemes under the Prime Minister’s package focusing on EPFO enrollment, first-time employees, and support for employers and employees Women Workforce: Establish working women hostels and creches in collaboration with industry Skilling Initiatives: New scheme for skilling 20 lakh youth over 5 years Upgrade 1,000 Industrial Training Institutes Revise Model Skill Loan Scheme: Loans up to ₹7.5 lakh Higher Education Support: Loans up to ₹10 lakh for higher education in domestic institutions E-vouchers for 1 lakh students annually with 3% interest subsidy Priority 3: Inclusive Human Resource Development and Social Justice Economic Support: Enhance schemes for craftsmen, artisans, self-help groups, SCs, STs, women entrepreneurs, and street vendors (e.g., PM Vishwakarma, PM SVANidhi, National Livelihood Missions, Stand-Up India) Purvodaya Plan: Development of eastern region (Bihar, Jharkhand, West Bengal, Odisha, Andhra Pradesh) Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Improve socio-economic conditions for tribal communities in 63,000 villages, benefiting 5 crore people Banking Expansion: Set up 100 India Post Payment Bank branches in the North East Funding for 2024-25: ₹2.66 lakh crore for rural development and infrastructure Priority 4: Manufacturing & Services Support for MSMEs: Guarantee fund up to ₹100 crore for MSMEs Enhanced credit assessment and support during financial stress Mudra Loans: Increase limit to ₹20 lakh for successful borrowers Food Irradiation and Quality Testing: Support for 50 multi-product food irradiation units and 100 quality testing labs E-Commerce Export Hubs: Establish in PPP mode to assist MSMEs and artisans Internships: Provide internships in 500 top companies to 1 crore youth over 5 years Priority 5: Urban Development Urban Housing: PM Awas Yojana Urban 2.0: Address housing needs of 1 crore families with ₹10 lakh crore investment Central assistance of ₹2.2 lakh crore over 5 years Water Supply and Sanitation: Promote projects in 100 large cities with state and multilateral support PM SVANidhi Scheme: Develop 100 weekly ‘haats’ or street food hubs annually Priority 6: Energy Security PM Surya Ghar Muft Bijli Yojana: Install rooftop solar plants to provide free electricity up to 300 units per month for 1 crore households Over 1.28 crore registrations and 14 lakh applications received Nuclear Energy: Significant role in future energy mix Priority 7: Infrastructure Capital Expenditure: ₹11,11,111 crore allocated (3.4% of GDP) Pradhan Mantri Gram Sadak Yojana (PMGSY): Phase IV to provide all-weather connectivity to 25,000 rural habitations Irrigation and Flood Management: Financial support for Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim for flood management and irrigation projects Includes Kosi-Mechi intra-state link and other schemes Priority 8: Innovation, Research & Development Anusandhan National Research Fund: Support for basic research and prototype development with ₹1 lakh crore financing pool Space Economy: Expand space economy by 5 times in the next 10 years Set up ₹1,000 crore venture capital fund Priority 9: Next Generation Reforms Economic Policy Framework: Formulate framework for economic development and next-generation reforms Labour Reforms: Integrate e-shram portal with other services Revamp Shram Suvidha and Samadhan portals Climate Finance: Develop taxonomy for climate finance to enhance capital availability Foreign Investments: Simplify rules for FDI and overseas investments NPS Vatsalya: Plan for minor’s contributions, convertible to normal NPS account New Pension Scheme (NPS): Review and evolve solution maintaining fiscal prudence Budget Estimates 2024-25 Receipts and Expenditure: Total receipts (excluding borrowings): ₹32.07 lakh crore Total expenditure: ₹48.21 lakh crore Net Tax Receipts: Estimated at ₹25.83 lakh crore Fiscal Deficit: Estimated at 4.9% of GDP Market Borrowings: Gross borrowings: ₹14.01 lakh crore Net borrowings: ₹11.63 lakh crore Fiscal Consolidation: Aim to reduce deficit below 4.5% next year Budget 2024-25: Tax Reforms and Simplification Review and Simplification of Taxes Direct and Indirect Taxes: The Union Budget 2024-25 aims to review and simplify both direct and indirect taxes within the next six months. Focus includes reducing tax incidence and compliance burdens and broadening the tax base. Comprehensive rationalization of GST and review of Customs Duty rates to improve the tax base and support domestic manufacturing. Income Tax Act Review: The Income Tax Act will be reviewed to minimize disputes, reduce litigation, and make the Act clearer and more concise. Simplification efforts have been well-received, with over 58% of corporate tax revenue coming from the simplified regime in 2022-23. More than two-thirds of taxpayers have shifted to the new personal income tax regime. Standard Deductions and Tax Regime Changes Standard Deduction: Increased from ₹50,000 to ₹75,000 for salaried employees opting for the new tax regime. Deduction for family pensioners raised from ₹15,000 to ₹25,000. Assessment Reopening: Assessments can be reopened up to 5 years from the end of the assessment year if escaped income exceeds ₹50 lakh. Revised Tax Rates: New tax regime structure offers potential benefits up to ₹17,500 for salaried employees. Tax rates are as follows: Income Slabs Tax Rate 0 – 3 Lakh NIL 3 – 7 Lakh 5% 7 – 10 Lakh 10% 10 – 12 Lakh 15% 12 – 15 Lakh 20% Above 15 Lakh 30% Support for Investment and Employment Angel Tax: Abolished for all investors to boost the start-up ecosystem. Foreign Shipping Companies: Proposed a simpler tax regime for domestic cruise operations. Foreign Mining Companies: Safe harbor rates introduced for selling raw diamonds in India. Corporate Tax Rate: Reduced from 40% to 35% for foreign companies to attract foreign capital. Simplification of Tax Regime Charities: Two tax exemption regimes for charities to be merged into one. TDS rates streamlined: 5% TDS to be merged into 2%, and 20% TDS on mutual fund repurchases withdrawn. TDS and Capital Gains: TDS on e-commerce reduced from 1% to 0.1%. Credit of TCS allowed on TDS from salary. Decriminalization of TDS payment delays up to the due date of filing. Short-term capital gains tax at 20% and long-term gains at 12.5%. Capital gains exemption limit increased to ₹1.25 lakh per year. GST and Customs Duties GST: Acknowledged as a significant success for reducing tax incidence and compliance burden. Plans to simplify and expand GST coverage to more sectors. Custom Duties: Three cancer medicines exempted from custom duties. Reductions in Basic Customs Duty (BCD) for various items including mobile phones, rare earth minerals, and seafood. Duty increases for certain items like ammonium nitrate and PVC flex banners to support domestic industries and environmental concerns. Dispute Resolution and Litigation Reduction Vivad se Vishwas Scheme 2024: Proposed for resolving income tax disputes. Increased monetary limits for appeals in High Courts, Supreme Courts, and tribunals. Expansion of safe harbor rules and streamlining of transfer pricing assessment procedures to reduce litigation and provide clarity in international taxation.

Daily Editorials Analysis

Editorials/Opinions Analysis For UPSC 24 July 2024

CONTENTS A Message of Fiscal Stability, Growth Continuity Income Tax Amendment Promises Relief for MSMEs A Message of Fiscal Stability, Growth Continuity Context: The FY25 Union Budget, unveiled by the new administration, emphasizes a steadfast commitment to fiscal stability and sustained growth while introducing a sharper focus on inclusive growth in India. Despite an impressive 8.2% GDP growth in FY24, this growth was characterized by a K-shaped pattern, where high demand for luxury items contrasted with stagnant wages and sluggish sales of basic consumer goods, along with persistent food inflation affecting lower-income groups. Relevance: GS3- Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment Inclusive Growth and issues arising from it Government Budgeting Mains Question: The strong message from the Union Budget is about giving growth in India a more inclusive character. Comment. (10 Marks, 150 Words). The FY25 Budget: The fiscal deficit at 5.6% of GDP in FY24, although elevated compared to pre-COVID-19 levels, provided essential growth momentum through capital expenditure as private investments remained subdued. In response, the FY25 Budget implements various measures to strengthen weaker economic segments by enhancing job quality, boosting agriculture, and integrating micro, small, and medium enterprises (MSMEs) into India’s manufacturing revival. These efforts aim to lay the groundwork for a developed India by 2047. Agriculture Sector: Agriculture remains a top priority, with initiatives promoting self-sufficiency in pulses and oilseeds, emphasizing agricultural research in the context of climate change, establishing large-scale vegetable production clusters, and developing Digital Public Infrastructure (DPI) for comprehensive coverage of farmers and their lands. A robust agricultural sector will enable the government to fulfill its foodgrain distribution commitments under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), now extended for five more years. On Employment Generation: The Budget places a strong emphasis on creating jobs, particularly for the youth, within the formal workforce. A new scheme offering incentives to both employers and first-time employees has been announced with an allocation of ₹10,000 crore through the Ministry of Labour. Additional schemes promoting internships, with a budget of ₹2,000 crore, and initiatives for youth skill development in collaboration with state governments and industry, are also planned. This aligns with the tripartite agreement (between the Centre, States, and private sector) suggested by the Economic Survey before the FY25 Union Budget to meet the growing aspirations of Indian youth. On Housing: The budget for housing saw a significant increase. The government allocated 37% more funds for the urban Pradhan Mantri Awas Yojana (PMAY) in FY25 compared to FY24. However, this is overshadowed by a 70% increase in funding for the rural version of the scheme. Providing housing for all remains a key goal for the government, which is now launching version 2.0 of its initiative. The PLI Scheme: The PLI Scheme received a substantial 75% increase in the FY25 Budget, primarily due to a higher allocation for the auto sector. This was accompanied by adjustments to sectoral customs duties to support domestic manufacturing and enhance local value addition. To address financing challenges typically faced by MSMEs, the government promised to facilitate term loans for machinery and equipment purchases without collateral. To ensure consistent lending, banks will now be allowed to develop in-house credit assessments, and a government-backed facilitation will continue to extend credit to MSMEs even during difficult times. Most of these measures align well with the broader goal of promoting job-led growth in the medium term. Notably, the government has managed to maintain fiscal discipline while implementing a wide range of measures to stimulate the economy. Looking Ahead: In comparison to the interim Budget’s fiscal deficit estimate of 5.1% of GDP, the government has reduced the FY25 headline deficit target to 4.9%. It maintained the planned 70 basis points consolidation over FY24 as outlined in the interim Budget, facilitating a smoother transition to a 4.6% fiscal deficit to GDP in FY26. The commitment to continue consolidating its fiscal position beyond FY26 preserves the trust that the government has built with economic observers over recent years, despite facing pressures from regional partners for new demands. While the capital expenditure target remained unchanged at ₹11.1 trillion, the benefits from the Reserve Bank of India’s record high dividend transfer of ₹2.1 trillion earlier this year were allocated between increased welfare spending and reducing the fiscal deficit. Conclusion: These measures will benefit India at a time when domestic bonds are beginning to be included in global bond indices. With greater scrutiny of India’s fiscal metrics by international agencies, maintaining fiscal discipline lays the groundwork for a potential sovereign rating upgrade in the future. Income Tax Amendment Promises Relief for MSMEs Context: An amendment to the Income Tax Act, introduced through the Finance Act 2023 and effective from April 1, 2024, prevents businesses from claiming tax deductions for payments made to Micro, Small, and Medium Enterprises (MSMEs) beyond 45 days for goods and services. This change has caused considerable concern. Relevance: GS2- Government Policies and Interventions GS3- Mobilization of Resources Mains Question: The delayed payment of the dues of small enterprises by large enterprises continues to be a major problem as it results in a shortage of working capital severely impacting their production. Discuss. (15 Marks, 250 Words). About MSMEs: MSMEs are support units involved in the production, manufacturing, and processing of goods, primarily intermediate goods, supplied to larger enterprises. These units operate on a smaller scale and are classified as micro, small, or medium enterprises based on investment and turnover thresholds defined in the Micro, Small and Medium Enterprises Development Act, 2006. A micro-enterprise is defined as one where investment in plant and machinery or equipment does not exceed ₹10 million, and turnover does not exceed ₹50 million. A small enterprise has an investment of less than ₹100 million in plant and machinery, with turnover not exceeding ₹500 million. For medium enterprises, the thresholds are ₹200 million for investment and ₹1,000 million for turnover. According to the Ministry of Statistics & Programme Implementation, MSMEs contribute about 30% to India’s Gross Domestic Product (GDP) in terms of Gross Value Added (GVA). Their share of manufacturing output in all-India manufacturing is even higher, at around 36%. Significance of MSMEs: The export share of MSME-specific products in India’s total exports has fluctuated between 44% and 50% over the past few years, according to the Directorate General of Commercial Intelligence and Statistics (DGCIS). In terms of employment, a report by the McKinsey Global Institute (MGI) indicates that MSMEs in India contribute 62% to total employment. When considering the broader informal sector—which includes proprietary household and partnership establishments—the contribution to employment is over 75%, while its share in GDP is nearly 50%. Thus, MSMEs play a crucial role in shaping the economic landscape, particularly in fostering inclusive development by enhancing employment and income and reducing income inequalities. Measures Taken: The government has implemented several mitigation measures, including a ₹500,000 crore Emergency Credit Line Guarantee Scheme (ECLGS) for businesses/MSMEs, a ₹50,000 crore equity infusion through the MSME Self-Reliant India Fund, and the exclusion of global tenders for procurements up to ₹200 crores to increase their chances of securing government contracts. Other measures include relaxing the threshold for MSME classification, extending non-tax benefits for three years if an MSME’s status changes upward, including retail and wholesale trades as MSMEs, launching the Udyam Assist Platform (UAP) to bring Informal Micro Enterprises (IMEs) under the formal framework to benefit from Priority Sector Lending (PSL), and launching an online portal, “Champions,” for various aspects of e-governance, including grievance redress and support for MSMEs. Associated Concerns: MSMEs have borne the brunt of significant economic decisions made by the government during its first two terms, such as demonetization in 2016, the introduction of the Goods and Services Tax (GST) in 2017, and the devastating impact of the COVID-19 pandemic in 2020. While the above initiatives aim to address issues of credit availability, technology infusion, and market support, small enterprises continue to face problems with delayed payments from large enterprises. When payments for supplied goods are delayed, it leads to a shortage of working capital, severely affecting their ability to continue production. To address this issue, Section 15 of the MSME Development Act 2006 mandated payments to micro and small enterprises within 45 days if there was a written agreement (or 15 days without one). In 2019, the Ministry of Corporate Affairs issued the Specified Companies (Furnishing of Information about Payment to Micro and Small Enterprise Suppliers) Order, requiring large firms to file returns every six months, even if there are no outstanding payments to MSMEs beyond 45 days. However, industries and businesses have requested the Finance Minister to postpone the implementation of the clause in the IT Act by a year to April 2025. Conclusion: Meanwhile, there are reports of large enterprises pressuring small firms by choosing not to buy from MSMEs, opting instead to deal with MSMEs not registered on the Udyam portal (an online system for registering MSMEs launched by the Union MSME ministry) or with non-MSMEs. This practice must be prevented. Section 43B(h) of the IT Act should be given a fair opportunity to succeed.

Daily Current Affairs

Current Affairs 24 July 2024

CONTENTS Rising Demand for Separate Bhil Pradesh State India’s Climate Change Position and Critique of EU’s CBAT Ban Lifted on Public Servants’ Participation in RSS Activities Chandra Shekhar Azad Skill Loan Scheme Angel Tax Rising Demand for Separate Bhil Pradesh State Context: Recently, there has been a growing demand for the formation of a separate Bhil state, “Bhil Pradesh,” in Rajasthan and neighbouring states. Relevance: GS II: Polity and Governance Dimensions of the Article: Bhills: An Overview Demand for Bhil Pradesh Regions Demanding Separate States Issues Arising from the Creation of New States Way Forward Bhills: An Overview Background: Identity: The Bhills are one of the oldest tribes in India, belonging to the Dravidian racial group and part of the Austroloid tribal category. Language: They speak Bhili, a language of Dravidian origin. Historical Significance: Historically, they ruled parts of Rajasthan, Gujarat, Malwa, Madhya Pradesh, and Bihar. Population: As per the 2011 Census, there are approximately 1.7 crore Bhils across India, with significant populations in: Madhya Pradesh: About 60 lakh Gujarat: About 42 lakh Rajasthan: About 41 lakh Maharashtra: About 26 lakh Cultural and Religious Practices: Religion: Primarily Hindus, the Bhills worship forest deities, evil spirits, Lord Shiva, and Durga. Demand for Bhil Pradesh Historical Context: Origins of the Demand: The demand for a separate Bhil state, known as Bhil Pradesh, began in 1913 with Govind Giri Banjara, a tribal activist. His call for a separate state was accompanied by a tragic massacre of around 1,500 tribals by British forces. Continued Advocacy: Over the years, various tribal leaders and political figures have periodically revived this demand. Proposed Area: Coverage: The proposed Bhil Pradesh would span 49 districts across four states: Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra. This includes 12 districts from Rajasthan. Reasons for Demand: Cultural and Linguistic Unity: The Bhil community shares a common language (Bhili) and cultural practices across the four states. Proponents argue that a separate state would better preserve and promote their cultural heritage. Historical and Cultural Ties: The proposed state region has significant historical and cultural ties that transcend current state boundaries. Political and Administrative Failures: Tribal leaders argue that existing political structures have failed to address their needs effectively. A separate state is seen as a way to ensure more focused governance and development. Development Needs: A separate state could lead to more tailored development policies and better resource utilization for tribal welfare. Historical neglect and slow implementation of laws like the Panchayats (Extension to Scheduled Areas) Act, 1996, underscore the need for more localized governance. Criticisms: Potential Fragmentation: Critics argue that creating states based on caste or community could lead to further fragmentation and instability within India. Unity of India: The Fazl Ali Commission emphasized the importance of national unity over redrawing political boundaries based on ethnic or linguistic identities. Political Resistance: Established political parties, with vested interests in maintaining the status quo, may resist the formation of a new state. Social Divisions: Opponents believe that forming states based on tribal identity could exacerbate social divisions rather than address the underlying issues. Regions Demanding Separate States 1. Vidarbha: Location: Comprises the Amravati and Nagpur divisions of eastern Maharashtra. Historical Context: The State Reorganisation Act of 1956 recommended the creation of a Vidarbha state with Nagpur as the capital. To address fears of neglect, Nagpur was designated as the second capital of Maharashtra. Current Demand: The demand for a separate Vidarbha state is driven by perceptions of backwardness and neglect by successive Maharashtra state governments. 2. Bodoland: Location: Northern Assam. Ethnic Group: The Bodos, the largest ethnic and linguistic community in the region. Historical Context: Agitation for a separate Bodoland state led to a 2003 agreement between the Government of India, Assam state government, and Bodo Liberation Tigers Force. This agreement led to the creation of Bodoland Territorial Region (BTR), granting autonomy but not full statehood. 3. Other Regions: Gorkhaland: A demand from the Gorkha community in Darjeeling, West Bengal. Kukiland: A demand from the Kukis in Manipur. Mithila: A demand from the Maithili-speaking community in Bihar. Issues Arising from the Creation of New States  Dominance and Rivalries: New states may lead to dominance by a particular community, caste, or tribe, potentially marginalizing others. This can result in intra-regional rivalries and conflicts among sub-regions.  Political Consequences: Smaller states may experience political instability, where a small group of legislators can significantly influence or disrupt governance. Resource and Boundary Disputes: New states may lead to increased disputes over resources like water and power. For example, disputes between Delhi and Haryana over water sharing.  Financial and Administrative Costs: Significant funds are required to build new capitals and maintain administrative structures, as seen in the division of Andhra Pradesh and Telangana. Ineffectiveness of New State Structures: Creating new states may only shift power from the old state capital to the new one without improving local governance structures like Gram Panchayats or District Collectors. Way Forward Strengthening National Integration: The National Integration Council should be bolstered to address regionalism challenges.  High-Powered Commission: Form a commission to assess existing laws and policies and propose necessary amendments to address regional concerns. Empowering Local Governance: Strengthen Panchayati Raj Institutions and Urban Local Bodies through capacity building, financial empowerment, and constitutional safeguards. Finance and Resource Utilization: Use Finance Commission recommendations for equitable distribution and implement performance-based budgeting. Special Packages: Design special packages tailored to specific regional needs, similar to the one provided to Telangana. Economic Development Programs: Use economic parameters like per capita income, infrastructure index, and human development indicators to identify deserving regions. Implement programs similar to the NITI Aayog’s Aspirational Districts Programme for regions demanding statehood.  Regional Dialogue Mechanisms: Create platforms for center-state and regional dialogues similar to the Inter-State Council. Cultural Preservation: Expand initiatives like the National Cultural Fund and Sahitya Akademi to support regional language promotion and cultural festivals. -Source: The Hindu India’s Climate Change Position and Critique of EU’s CBAT Context: In the Economic Survey (ES) 2023-24 presented in Parliament, the Indian government expressed a distinct stance on climate change, acknowledging the likely failure to meet the 1.5℃ target. Additionally, the ES criticized the European Union’s proposed Carbon Border Adjustment Tax (CBAT), deeming it contrary to the Paris Agreement’s spirit and highlighting concerns about protectionism. Relevance: GS III: Environment and Ecology Dimensions of the Article: Global Temperature Target India’s Criticisms of the Global Climate Change Discourse Suggestions from the Economic Survey for Addressing Climate Change Carbon Border Adjustment Mechanism (CBAM) India’s Criticisms of CBAM Global Temperature Target Paris Agreement Targets (2015): Primary Goal: Limit the increase in global average annual temperature to within 2°C above pre-industrial levels (1850-1900 average). Aspirational Goal: Strive to limit the temperature rise to 1.5°C above pre-industrial levels. Implementation: Action Plans: Countries are required to prepare and implement national action plans to contribute towards these temperature targets. India’s Criticisms of the Global Climate Change Discourse 1. Inequity of the Climate Change Architecture: India has consistently criticized the global climate change framework for its inequity, particularly highlighting the lack of substantial climate action from developed nations despite their historical responsibility. 2. Inadequate Temperature Targets: The single global temperature targets (1.5°C or 2°C) are viewed as insufficient for addressing the complex relationships between climate change, ecological integrity, and human well-being. 3. Problems with Alternate Energy Solutions: The extraction of critical minerals for renewable energy technologies, such as batteries, often occurs in underdeveloped regions, leading to adverse effects on regional ecological health. Suggestions from the Economic Survey for Addressing Climate Change 1. Lifestyle Changes: Emphasis on adopting more sustainable lifestyle choices, reducing waste, and minimizing overconsumption as a means to address climate change effectively. 2. Shorter-Term Policies: Implement policies aimed at improving quality of life in the short term as a more balanced approach to climate action, rather than focusing solely on switching to alternate energy sources. Carbon Border Adjustment Mechanism (CBAM) Overview: Purpose: Implement tariffs on energy-intensive goods imported into the EU to prevent local producers from facing a competitive disadvantage compared to producers in countries with more lenient emission standards. Target Goods: Includes iron, steel, and aluminium. Implementation Date: Expected to come into force on January 1, 2026. India’s Criticisms of CBAM 1. Contravention of the Paris Agreement: CBAM is seen as contrary to the Paris Agreement’s principle of Common but Differentiated Responsibilities (CBDR), which recognizes the different capacities and responsibilities of countries. 2. Adverse Impact on India: Export Dependency: In 2022, India exported iron, steel, and aluminium products worth $8.2 billion to the EU, representing 27% of its total exports in these sectors. Financial Strain: Achieving net zero by 2070 requires an annual investment of $28 billion, and India’s climate action is largely funded through domestic resources due to limited international finance. Resource Impact: CBAM could strain India’s financial resources needed for climate change adaptation and mitigation efforts. -Source: The Hindu Ban Lifted on Public Servants’ Participation in RSS Activities Context: Recently, the Indian government lifted a longstanding ban preventing public servants from participating in Rashtriya Swayamsevak Sangh (RSS) activities. This decision, issued by the Department of Personnel and Training (DoPT), removed references to the RSS from official memorandums dating back to 1966, 1970, and 1980. Relevance: GS II: Polity and Governance Dimensions of the Article: Rules Regarding Government Employees Joining RSS Rashtriya Swayamsevak Sangh (RSS) Rules Regarding Government Employees Joining RSS Recent Developments: DoPT Directive (July 9, 2024): The Department of Personnel and Training (DoPT) has recently removed references to the Rashtriya Swayamsevak Sangh (RSS) from official memorandums issued in 1966, 1970, and 1980. As a result, the RSS is no longer classified as a “political” organization, allowing central government employees to participate in its activities without facing penalties under Rule 5(1) of the Conduct Rules. Jamaat-e-Islami: The Jamaat-e-Islami remains classified as a political organization. Government employees are prohibited from engaging in its activities. Conduct Rules: Rule 5 of the Central Civil Services (Conduct) Rules, 1964: This rule prohibits government servants from being associated with political parties or engaging in political activities. Prior to the recent directive, involvement with organizations like the RSS and Jamaat-e-Islami was considered a violation of this rule, leading to potential disciplinary actions. All India Services (Conduct) Rules, 1968: Similar rules apply to IAS, IPS, and Indian Forest Service officers, prohibiting political affiliations and activities. Official Memorandums: OM of 1966 (November 30, 1966): Issued by the Ministry of Home Affairs (MHA), this circular clarified that involvement with the RSS and Jamaat-e-Islami was contrary to government policy and could result in disciplinary action. This circular referenced Rule 5 of the Central Civil Services (Conduct) Rules, 1964. OM of 1970 (July 25, 1970): Emphasized that government employees should face disciplinary action for violating the 1966 instructions. During the Emergency (1975-1977), directives were issued against members of various groups, including the RSS, Jamaat-e-Islami, Ananda Marg, and CPI-ML. OM of 1980 (October 28, 1980): Stressed the importance of maintaining secularism among government employees and eliminating communal sentiments and biases. Historical Context: Position Before 1966: Government employees were governed by the Government Servants’ Conduct Rules of 1949, which explicitly prohibited participation in political activities. This prohibition was aligned with Rule 23 of the 1949 rules, continuing into Rule 5 of the 1964 rules and the 1968 All India Services rules. Penalties for Violations: Consequences: Violations of Rule 5 of the Central Civil Services (Conduct) Rules, 1964, and the All India Services (Conduct) Rules, 1968, can lead to serious consequences, including dismissal from service. The government retains final authority in determining compliance and interpreting the rules concerning political activities and affiliations. Rashtriya Swayamsevak Sangh (RSS)  Overview: Founding: Established in 1925 in Nagpur by Dr. K.B. Hedgewar. Created in response to perceived threats to Hindu culture and society during British colonial rule. Objective: Promote Hindutva, emphasizing Hindu cultural and national identity. Historical Context: Pre-Independence Era: Focused on social and cultural mobilisation among Hindus. Engaged in community service, education, and the promotion of Hindu values. Post-Independence: Scrutiny increased after Mahatma Gandhi’s assassination in 1948 by Nathuram Godse, leading to a temporary ban. The ban was lifted after RSS pledged loyalty to the Indian Constitution.  Ideology: Core Belief: India is fundamentally a Hindu nation, as articulated by Vinayak Damodar Savarkar. Emphasizes Indian culture and heritage, aiming to unite people under a common national identity. Activities: Engages in social service activities including education, healthcare, and disaster relief. Promotes the concept of “Seva” (service) among its members. Contribution to Freedom Struggle: Role: Did not participate directly in the Indian independence movement. Contributed to the socio-political awakening of Hindus. History of Bans: 1948: Banned following Gandhi’s assassination; reinstated in 1949 after a pledge to uphold the Constitution. 1966: Government employees banned from joining the RSS, reiterated in 1970 and 1980. 1975-1977: Banned during Indira Gandhi’s Emergency; ban lifted in 1977. 1992: Banned post-Babri Masjid demolition; lifted in 1993 after a commission found the ban unjustified. Structure and Functioning: Organization: Operates through a network of shakhas (branches) across India and abroad. Focuses on physical, intellectual, and cultural training. Influence: Inspired organizations such as Vishva Hindu Parishad (VHP), Bajrang Dal, and Akhil Bharatiya Vidyarthi Parishad (ABVP). Political Influence: BJP Linkage: Considered the ideological parent of the Bharatiya Janata Party (BJP), a major political force in India since the 1990s. -Source: Indian Express Chandra Shekhar Azad Context: On 23rd July, India paid tribute to the freedom fighter Chandra Shekhar Azad on his birth anniversary. Relevance: GS I: History About Chandra Shekhar Azad: Birth:  23rd July 1906  Place: Alirajpur district of Madhya Pradesh. Early Life: Chandra Shekhar, then a 15-year-old student, joined a Non-Cooperation Movement in December 1921. As a result, he was arrested. Death: He died at Azad Park in Allahabad on 27th February 1931. On being presented before a magistrate, he gave his name as “Azad” (The Free), his father’s name as “Swatantrata” (Independence) and his residence as “Jail” .Therefore, he came to be known as Chandra Shekhar Azad. Contribution to Freedom Movement: Hindustan Republican Association (HRA) After the suspension of the non-cooperation movement in 1922 by Gandhi, Azad joined Hindustan Republican Association (HRA). HRA was a revolutionary organization of India established in 1924 in East Bengal by Sachindra Nath Sanyal, Narendra Mohan Sen and Pratul Ganguly as an offshoot of Anushilan Samiti. Members: Bhagat Singh, Chandra Shekhar Azad, Sukhdev, Ram Prasad Bismil, Roshan Singh, Ashfaqulla Khan, Rajendra Lahiri. Kakori Conspiracy Most of the fund collection for revolutionary activities was done through robberies of government property.  In line with the same, Kakori Train Robbery near Kakori, Lucknow was done in 1925 by HRA. The plan was executed by Chandra Shekhar Azad, Ram Prasad Bismil, Ashfaqulla Khan, Rajendra Lahiri, and Manmathnath Gupta. Hindustan Socialist Republican Association HRA was later reorganised as the Hindustan Socialist Republican Army (HSRA). It was established in 1928 at Feroz Shah Kotla in New Delhi by Chandra Shekhar Azad, Ashfaqulla Khan, Bhagat Singh, Sukhdev Thapar and Jogesh Chandra Chatterjee. HSRA planned the shooting of J. P. Saunders, a British Policeman at Lahore in 1928 to avenge the killing of Lala Lajpat Rai. -Source: The Hindu Skill Loan Scheme Context: The finance minister recently announced a revision to the model skill loan scheme, which will now facilitate loans up to Rs 7.5 lakh backed by a guarantee from a government-promoted fund. Relevance: GS III: Indian Economy Dimensions of the Article: Skill Loan Scheme Credit Guarantee Fund Skill Loan Scheme Introduction: Launch Date: July 2015 Purpose: To provide institutional credit to individuals pursuing skill development courses aligned with National Occupation Standards and Qualification Packs (NOS and QPs). Target: Courses conducted by training institutes following the National Skill Qualification Framework (NSQF), leading to certifications, diplomas, or degrees. Eligibility: Who Can Apply: Any Indian national with admission in a recognized course at: Industrial Training Institutes (ITIs) Polytechnics Schools recognized by Central or State Education Boards Colleges affiliated with recognized universities Training partners affiliated with the National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Missions, or State Skill Corporations. Age Restriction: None Features: Courses: Must be aligned with NSQF. Course Duration: No minimum duration. Quantum of Finance: Initially Rs. 5,000 to Rs. 1,50,000, now increased to Rs. 7.5 lakh. Moratorium Period: Duration of the course. Repayment Period: Loans up to Rs. 50,000: Up to 3 years. Loans between Rs. 50,000 to Rs. 1 lakh: Up to 5 years. Loans above Rs. 1 lakh: Up to 7 years. Coverage: Includes course fees, assessment, examination, study materials, etc. Interest Rate: Should not exceed 1.5% per annum over the repo-linked lending rate (RLLR) or other external benchmark rates as per RBI guidelines. Collateral: No collateral required from the beneficiary. Credit Guarantee Fund: Credit Guarantee Fund for Skill Development (CGFSSD): Implemented by the Ministry of Skill Development and Entrepreneurship (MSDE) through a notification in November 2015. Administered by the National Credit Guarantee Trust Company (NCGTC). Guarantee Coverage: Banks can apply for a credit guarantee against defaults. NCGTC provides this guarantee at a nominal fee (up to 0.5% of the outstanding amount). Guarantee cover is up to 75% of the outstanding loan amount (including interest). Key Points: Purpose: To facilitate access to credit for skill development and enhance employability. Support: Backed by a credit guarantee scheme to reduce risk for lenders and increase access to loans for borrowers. -Source: Business Standards Angel Tax Context: Recently, the Union Minister for Finance proposed to abolish ‘angel tax’ for all classes of investors, while presenting the Union Budget 2024-25 in Parliament. Relevance: GS III: Indian Economy Angel Tax Definition: Angel Tax refers to the tax levied on the capital raised by unlisted companies from Indian investors when the share price issued is above the fair market value of the company. The excess funds raised at prices above fair value are treated as income, subject to tax. Legal Basis: Genesis: Section 56(2)(viib) of the Income Tax Act, 1961. Introduction: Introduced in 2012 to curb black money laundering through inflated share sales. Tax Rate: Rate: 30.9% on net investments exceeding the fair market value. Exemption for Startups (2019): Conditions for Exemption: Recognition: The startup must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) as an eligible startup. Capital Limit: The aggregate amount of paid-up share capital and share premium cannot exceed ₹25 crores. This excludes money raised from Non-Resident Indians (NRIs), Venture Capital Firms, and specified companies. Investor Conditions: Tax Exemption: Angel investors can claim a 100% tax exemption on the amount invested that exceeds the fair market value. Eligibility: The investor must have: Net Worth: ₹2 crores or more. Income: More than ₹25 lakhs in the past 3 fiscal years. Purpose: Objective: To prevent the misuse of share valuations to launder black money by imposing taxes on the excess amounts raised above fair market values. -Source: The Hindu

Daily PIB Summaries

PIB Summaries 23 July 2024

CONTENTS Ministry of Defence Announces Fifth Positive Indigenisation List Padma Awards Ministry of Defence Announces Fifth Positive Indigenisation List Context: The Ministry of Defence (MoD) has recently issued a fifth Positive Indigenisation List (PIL) that includes various defence items. This initiative is part of the effort to boost self-reliance, minimize imports, and promote the domestic defence sector in India. Relevance: GS III: Defence Dimensions of the Article: Positive Indigenisation List (PIL) Key Highlights of the Fifth Positive Indigenisation List Need for Indigenisation of Defence in India Status of Indigenisation in the Defence Sector Positive Indigenisation List (PIL) Overview Purpose: The PIL is a list of items that Indian armed forces can only purchase from domestic manufacturers, including private sector companies and Defence Public Sector Undertakings (DPSUs). Introduced By: Defence Acquisition Procedure (DAP) 2020. Objective: Focus on import substitution for major systems, platforms, weapon systems, sensors, and munitions, aiming to enhance self-reliance in the defense sector. Progress and Current Status Initial Launch: The first PIL was introduced in August 2020. Current Status: There are now 4,666 items on the PIL. Indigenisation Achievements: Items Indigenised: 2,972 items with an import substitution value of Rs 3,400 crore. Total Defence Items Offered: Over 36,000 items. Items Indigenised in Last Three Years: More than 12,300 items. Orders Placed on Domestic Vendors: Rs 7,572 crore. Key Highlights of the Fifth Positive Indigenisation List Number of Items: 346 items. Aim: Advance self-reliance (Aatmanirbharta) in defense and reduce import dependence. Eligibility: Items must be procured from the Indian industry, including Micro, Small, and Medium Enterprises (MSMEs) and startups. Types of Items: Includes Line Replacement Units (LRUs), systems, sub-systems, assemblies, sub-assemblies, spares, components, and raw materials. Availability: The list is accessible on the MoD’s Srijan portal, which helps DPSUs and service headquarters (SHQs) offer items for indigenisation to private industries. Indigenisation Value: Expected import substitution value of Rs 1,048 crore. Future Plans: The MoD plans to expand the list annually up to 2025, aiming to increase the number of indigenised items. Need for Indigenisation of Defence in India Current Status: India is the world’s largest arms importer, accounting for 9.8% of global arms imports between 2019 and 2023. Strategic Autonomy: Heavy reliance on foreign arms compromises India’s strategic autonomy. Indigenisation helps reduce dependency and ensures self-reliance in critical defense technologies. Geopolitical Risks: Indigenous production reduces risks during geopolitical tensions by ensuring uninterrupted supply of defense equipment. Political Leverage: A self-reliant defense industry enhances India’s position in global negotiations and defense collaborations. Economic Benefits: Job Creation: Supports domestic industry and fosters innovation. Foreign Exchange: Reduces outflow of foreign exchange, contributing to economic stability. Cost-Effectiveness: Indigenous production can lower procurement costs, maintenance, and logistical challenges. Sustainable Development: Ensures that defense industry growth aligns with national interests and environmental considerations. Status of Indigenisation in the Defence Sector Defence Exports Record Exports: In FY 2023-24, defence exports reached a record Rs 21,083 crore (approx. USD 2.63 billion), marking a 32.5% increase from the previous fiscal year. Long-term Growth: Defence exports have increased 31-fold over the past 10 years compared to FY 2013-14. Contribution: The private sector has contributed about 60% to this growth, while Defence Public Sector Undertakings (DPSUs) have contributed approximately 40%. Key Achievements and Developments Advanced Systems: Significant advancements include the 155 mm Artillery Gun ‘Dhanush’, Light Combat Aircraft ‘Tejas’, INS Vikrant (Aircraft Carrier), and the Advanced Towed Artillery Gun (ATAG) howitzer. Policy Reforms: Growth in the sector is attributed to policy reforms, ‘Ease of Doing Business’ initiatives, and digital solutions provided by the Government to promote defence exports. Indigenisation Impact Reduction in Foreign Procurement: Expenditure on foreign defence procurement has decreased from 46% to 36% over the past four years, indicating the positive impact of indigenisation efforts. Domestic Procurement Share: The share of domestic procurement in total defence procurement has increased from 54% in 2018-19 to 68% in the current year. Private Industry Allocation: 25% of the defence budget is now allocated for procurement from private industry. Production Growth Value of Production: The value of production by public and private sector defence companies has risen from Rs 79,071 crore to Rs 84,643 crore in the past two years, reflecting a significant growth in the sector’s capacity and output. Padma Awards Context: Nominations/recommendations for the Padma Awards 2025 to be announced on the occasion of Republic Day, 2025 have begun from 01st May 2024. The last date for nominations for Padma Awards is 15th September, 2024. Relevance: Facts for Prelims Dimensions of the Article: The Padma Awards About Bharat Ratna The Padma Awards The Padma Awards are announced annually on the eve of Republic Day (26th January). There are 3 Padma Awards: Padma Vibhushan (for exceptional and distinguished service), Padma Bhushan (distinguished service of higher-order) and Padma Shri (distinguished service). The Awards are given in various disciplines/ fields of activities, viz.- art, social work, public affairs, science and engineering, trade and industry, medicine, literature and education, sports, civil service, etc. The Awards are conferred on the recommendations made by the Padma Awards Committee, which is constituted by the Prime Minister every year. The total number of awards to be given in a year (excluding posthumous awards and to NRI/foreigners/OCIs) should not be more than 120. Is it a title? The award does not amount to a title and cannot be used as a suffix or prefix to the awardees’ name. Article 18 clause 1- Abolishes titles and makes four provisions in that regard: It prohibits the state from conferring any title (except a military or academic distinction) on anybody, whether a citizen or a foreigner. About Bharat Ratna Bharat Ratna is the highest civilian award of the country. Bharat Ratna is awarded in recognition of exceptional service/performance of the highest order in any field of human endeavour. Recommendations for Bharat Ratna are made by the Prime Minister to the President of India. Only 3 Bharat Ratna Awards can be given in a year. Therefore: Bharat Ratna- 1st degree of honour Padma Vibhushan- 2nd degree of honour Padma Bhushan- 3rd degree of honour Padma Shri- 4th degree of honour

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