India’s stance on a ‘crimes against humanity’ treaty reflects its longstanding reservations about the Rome Statute and the International Criminal Court.
What is India’s stance on the proposed Crimes Against Humanity treaty?
Non-Party to the Rome Statute: India is not a signatory to the Rome Statute and has consistently expressed objections to the ICC’s jurisdiction, particularly regarding the powers of the ICC prosecutor and the role of the UN Security Council in prosecuting international crimes. India argues that it should be able to address such issues through its national legal system rather than through international mechanisms.
Call for In-Depth Study: For 5 years, India has advocated for a comprehensive examination of the need for a dedicated CAH treaty. This reflects its belief that existing frameworks may not adequately address the complexities of CAH.
Concerns Over Duplication: India is wary that a new CAH treaty could overlap with existing laws under the Rome Statute, potentially complicating accountability measures rather than clarifying them.
How does India’s legal framework address crimes against humanity?
Lack of Domestic Legislation: Currently, India does not have specific domestic laws prohibiting crimes against humanity. The absence of such legislation was highlighted by Justice S. Muralidhar of the Delhi High Court, who noted that neither CAH nor genocide is included in India’s criminal law. This gap indicates a need for legislative action to align with international standards.
Emphasis on National Jurisdiction: India maintains that national courts are more suitable for addressing CAH and other international crimes, emphasising its preference for national over international jurisdiction in these matters.
Why should India have proper legislation related to Crime against humanity?
Inadequate Domestic Legislation: Despite ratifying the Genocide Convention, India lacks domestic laws to enforce its provisions, creating a gap in prosecuting crimes like genocide and CAH.
International Accountability: Enacting CAH laws would align India’s legal framework with international standards, fulfilling commitments and enhancing global cooperation on prosecuting international crimes.
Justice for Mass Atrocities: India’s history of communal violence underscores the need for CAH laws to ensure justice, accountability, and deterrence against future atrocities while safeguarding human rights.
Leadership in Human Rights: By adopting CAH laws, India could address global issues like terrorism, advocate for accountability, and position itself as a leader in promoting justice and human dignity.
Empowering National Courts: CAH laws would strengthen Indian courts’ ability to handle serious human rights violations, reinforcing the country’s preference for national jurisdiction over international mechanisms.
What are India’s specific concerns regarding the definitions and scope of crimes against humanity?
Definition of Crimes: India has raised objections to certain definitions within the proposed treaty. It argues against including “enforced disappearance” as a CAH while advocating for “terrorism” to be recognised as such. This reflects India’s broader security concerns and its focus on acts it deems more relevant to its national context.
Scope of Application: India contends that crimes committed onlyduring armed conflicts should be classified as CAH, opposing any broader interpretation that includes peacetime offences. This position underscores India’s strategic interests and its approach to defining accountability in terms of state actions during conflicts rather than in peacetime contexts.
Way forward:
Enact Comprehensive Domestic Legislation: India should introduce laws addressing crimes against humanity and other international crimes, aligning with global standards while addressing domestic concerns like terrorism and communal violence.
Advocate for Inclusive Global Frameworks: India can engage constructively in international negotiations on the CAH treaty, pushing for definitions and provisions that address its concerns, such as including terrorism, while leveraging its stance to lead global efforts in promoting accountability and human rights.
Mains PYQ:
Q What do each of the following quotations mean to you? “Condemn none: if you can stretch out a helping hand, do so. If not, fold your hands, bless your brothers, and let them go their own way.” – Swami Vivekanand (UPSC IAS/2020)
President Yoon Suk Yeol’s decision to declare martial law on December 3 caused a crisis, but the National Assembly rejected it. On December 14, he was impeached, leading to a long legal fight in South Korea’s Constitutional Court.
What Led to President Yoon Suk Yeol’s Declaration of Martial Law?
Political Frustration: Facing increasing opposition and a loss of support from the National Assembly after the April 2024 elections, Yoon declared martial law on December 3, 2024, in a desperate attempt to maintain control amid growing dissent against his administration’s policies and allegations of corruption involving his wife.
Opposition Assertiveness: The opposition parties gained significant power in the National Assembly, securing 192 out of 300 seats. Their assertive stance against Yoon’s government exacerbated tensions, prompting him to take extreme measures to suppress dissent.
Failed Military Response: Despite sending military and police forces to various locations, including the National Assembly, their reluctance to act against peaceful protests highlighted the lack of support for Yoon’s decision. The National Assembly members voted overwhelmingly against martial law, leading to its withdrawal shortly after its declaration.
How Has the Political Landscape Changed Following the Impeachment Proceedings?
Increased Polarization: The impeachment motion against Yoon, which passed with 204 votes in favour on December 14, 2024, reflects deepening political polarization in South Korea.
The ruling People Power Party (PPP) faced internal conflict over how to respond to the impeachment, indicating fractures within conservative ranks.
Opposition Power Dynamics: The opposition has gained momentum and confidence following the successful impeachment motion. This shift has allowed them to challenge Yoon’s policies more aggressively and seek accountability for alleged corruption within his administration.
Public Sentiment: Yoon’s popularity has plummeted due to his handling of both domestic and foreign policies, as well as controversies surrounding his wife. This decline has strengthened the opposition’s position and increased public demand for accountability.
What are the potential implications of this crisis for South Korea’s democratic institutions?
Erosion of Democratic Norms: The use of martial law and aggressive tactics against political opponents raises concerns about the erosion of democratic norms in South Korea. Such actions could set a precedent for future administrations to bypass democratic processes in times of political strife.
Judicial Independence at Stake: The ongoing impeachment proceedings will be reviewed by the Constitutional Court, which may face pressure from public opinion and political factions. The outcome could influence perceptions of judicial independence and integrity within South Korea’s legal system.
Long-Term Stability Concerns: If political leaders continue to engage in vendetta politics and prioritize partisan interests over national unity, it could undermine public trust in democratic institutions. This instability may hinder effective governance and exacerbate societal divisions.
What are the challenges in India that could prevent a South Korea-like scenario?
Diverse Federal Structure: India’s federal system and strong regional governments provide multiple centers of power, reducing the likelihood of concentrated national-level crises.
Robust Democratic Institutions: A vibrant judiciary, free press, and active civil society act as checks against potential abuses of power.
Electoral Accountability: Regular elections at various levels ensure political leaders remain answerable to the public, mitigating prolonged governance failures.
Cultural and Political Pluralism: India’s diversity in culture, language, and political ideologies discourages the kind of national consensus required for large-scale systemic crises like in South Korea.
What should India do to prevent this type of situation? (Way forward)
Strengthen Democratic Institutions: India should prioritize the independence and resilience of democratic institutions, including the judiciary, Election Commission, and a free press, to ensure checks and balances against potential overreach by any government.
Promote Political Accountability and Transparency: Encourage bipartisan dialogue and accountability mechanisms to address corruption and governance issues, preventing political polarization and maintaining public trust in democratic processes.
Mains question for practice:
Q Analyze the factors that led to the declaration of martial law by President Yoon Suk Yeol in South Korea and discuss its implications for democratic institutions. What lessons can India draw from this crisis to strengthen its own democratic framework? (250 words) 15M
Q) Are tolerance, assimilation and pluralism the key elements in the making of an Indian form of secularism? Justify your answer. (UPSC CSE 2022)
Mentor’s Comment: UPSC Mains have previously focused on the ‘Indian concept of secularism’ (2018) as well as the ‘tolerance, assimilation and pluralism’ of India (in 2022).
Archaeologists typically dig historic sites to uncover ancient civilizations or cities, using scientific methods. However, excavating under one religion’s place of worship to find another’s is unusual and non-secular. Former CJI D.Y. Chandrachud found no issue with such a survey in the Gyanvapi mosque case, observing it might not violate the Places of Worship Act.
Today’s editorial explores the issues and implications of survey or excavation in an active place of worship.
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Let’s learn!
Why in the News?
Conducting a survey or excavation in an active place of worship to determine its religious identity violates the rights granted under Article 26.
What is the role of interpreting historical events like the Places of Worship Act?
Secular Intent: The Places of Worship (Special Provisions) Act, enacted in 1991, aims to maintain the religious character of places of worship as they existed on August 15, 1947. Its purpose is to prevent communal tensions and preserve secularism in India by prohibiting the conversion of places of worship from one religion to another.
Historical Context: The Act was introduced in response to rising communal tensions, particularly during the Ram Janmabhoomi movement. It seeks to provide a legal framework that acknowledges historical grievances while promoting coexistence among different religious communities.
Legal Clarity: The Act explicitly states that any legal proceedings regarding the conversion of religious places existing as of 1947 shall abate, thereby providing a clear legal stance on maintaining the status quo and preventing future disputes over religious sites.
How do ideological biases affect the understanding and what are the legal challenges?
Challenging Constitutionality: The constitutionality of the Places of Worship Act is currently under challenge in the Supreme Court. Critics argue that the choice of August 15, 1947, as a cut-off date is arbitrary and infringes on judicial review rights, suggesting that it limits access to courts for addressing historical injustices.
Specious Arguments: The argument that the date was chosen arbitrarily is countered by the rationale that it marks India’s independence and the establishment of a new sovereign state. Thus, it serves as a logical reference point for determining the religious character of places of worship.
Judicial Review Concerns: The claim that the Act undermines judicial review is contested; while it does prevent certain types of suits from proceeding, it does not eliminate judicial oversight entirely. The Act’s provisions aim to balance legislative authority with judicial processes.
What are the Judicial Observations and Consequences?
CJI’s Remarks: Former Chief Justice D.Y. Chandrachud’s observation regarding surveys in places of worship sparked controversy. His statement suggested that such surveys might not violate the Places of Worship Act, leading lower courts to order surveys in mosques without fully considering their implications or legal standing.
Impact on Communal Harmony: The lower courts’ decisions to conduct surveys have led to increased tensions and even violence in some instances, highlighting how judicial observations can have significant real-world consequences on communal relations.
Legal Relevance of Surveys: The necessity for surveys to determine religious character is questioned since the Act already establishes what that character was as of 1947. This raises concerns about unnecessary provocations and potential violations of established law.
What do fundamental rights say?
• Article 26 Protections: Article 26 of the Indian Constitution grants religious denominations the right to manage their own affairs in matters of religion. Interference through surveys or excavations in places of worship can be viewed as a violation of this fundamental right. • Worship as a Fundamental Right: The act of worshipping in a mosque or church is protected under this Article. Any external interference aimed at redefining or questioning this right undermines the autonomy and dignity afforded to religious communities. • Historical Preservation vs. Political Agendas: While archaeology can reveal historical truths, using it as a tool for political or communal agendas risks distorting history and inciting further division among communities. It emphasizes the need for careful handling of sensitive historical narratives within legal frameworks.
Way forward:
Strengthen Legal Safeguards: Ensure strict adherence to the Places of Worship Act, 1991, to prevent misuse of surveys or excavations that could disrupt communal harmony, while upholding secular principles and maintaining the religious status quo as of 1947.
Promote Judicial Prudence: Advocate for cautious and balanced judicial observations to avoid unintended consequences on communal relations, ensuring sensitive cases are handled with due consideration of legal and social implications.
Indian oceanographers have captured the first-ever image of an active hydrothermal vent located 4,500 metres below the surface of the Indian Ocean.
This discovery is part of India’s Deep Ocean Mission under the Ministry of Earth Sciences, with a total outlay of ₹4,000 crore.
What are Hydrothermal Vents?
Hydrothermal vents are typically found near tectonic plates, where cold water (about 2°C) near the ocean floor mixes with magma, leading to superheated water (up to 370°C) that emerges through chimneys.
These vents release mineral-rich plumes, including metals like copper, zinc, gold, silver, platinum, iron, cobalt, and nickel, making them significant for mineral exploration.
Mineral Potential of Hydrothermal Vents:
Hydrothermal vent deposits are rich in valuable minerals such as copper, zinc, gold, silver, and nickel, which are highly sought after for various industries.
These vents can remain active for periods ranging from a few hundred years to 30,000 years, making them long-lasting and crucial for mineral exploration.
Scientists at NCPOR, confirmed that the image showed an active vent chimney with black smokers, and signs of chemosynthetic organisms thriving in this extreme environment.
This discovery enhances India’s Deep Ocean Mission, particularly the Samudrayaan mission, which focuses on mineral exploration from inactive hydrothermal vents.
About the Hydrothermal Exploration Programme by NCPOR:
Details
A scientific initiative by the National Centre for Polar and Ocean Research (NCPOR) to explore hydrothermal vents in the Indian Ocean, focusing on the Central and Southwest Indian Ridges.
Aimed at mineral exploration and studying ecosystems around hydrothermal vents.
Aims and Objectives
Locate and Study Hydrothermal Vents: Identify active vents with minerals like copper, zinc, gold, and nickel.
Mineral Exploration: Part of India’s Deep Ocean Mission, aiming at valuable mineral exploration such as cobalt and platinum.
Biodiversity Studies: Understand chemosynthetic organisms that thrive in extreme conditions of the vents.
Key Features of the Programme
Geophysical Surveys: Conducted since 2012 to detect temperature anomalies and turbidity in the water columns for locating vent fields.
Use of Advanced Technology: Utilizes Automatic Underwater Vehicles (AUVs) and high-resolution imaging.
Collaborations: Partners with the National Institute of Ocean Technology (NIOT) for exploration in the Southern Indian Ocean.
About the Deep Ocean Mission (DOM):
DOM is an ambitious initiative by the Ministry of Earth Sciences (MoES) approved in 2021 to develop technologies for deep-sea exploration.
Part of the 9 missions under the Prime Minister’s Science, Technology, and Innovation Advisory Council (PMSTIAC).
Important updates in DOM:
Samudrayaan and Matsya6000:
Launched in 2021 under DOM, Samudrayaan is India’s flagship crewed expedition to reach a depth of 6,000 m in the Central Indian Ocean.
The mission will utilize Matsya6000, a deep-ocean submersible designed for a three-member crew.
Construction: Made from titanium alloy to endure pressures up to 6,000 bar.
India’s Ocean Exploration Milestones:
1981: Ocean studies began with a program on polymetallic nodules (PMN) initiated at CSIR-NIO, marked by the collection of the first nodule sample from the Arabian Sea aboard the research vessel Gaveshani.
1987: India became the first country to receive Pioneer Investor status from the International Seabed Authority (ISA).
Allocated 1.5 lakh km² in the Central Indian Ocean Basin (CIOB) for nodule exploration, based on extensive surveys by CSIR-NIO.
2002: India signed a contract with the ISA; after resource analysis, surrendered 50% of the allotted area, retaining 75,000 km².
Further studies narrowed the mining area to 18,000 km², identified as the First Generation Mine-site.
PYQ:
[2021] Consider the following statements:
The Global Ocean Commission grants licences for seabed exploration and mining in international waters.
India has received licences for seabed mineral exploration in international waters
‘Rare earth minerals’ are present on the seafloor in international waters.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
The Manipur government has announced that the Central government has re-imposed the Protected Area Regime (PAR) in Manipur, Mizoram, and Nagaland, all of which share borders with Myanmar.
The reimposition of the PAR comes after 13 years of relaxation and is aimed at addressing security concerns, primarily the alleged illegal immigration from Myanmar.
What is the Protected Area Regime (PAR)?
Details
Introduced under the Foreigners (Protected Areas) Order, 1958, which is part of the Foreigners Act, 1946.
The regime was created to regulate the movement of foreigners in sensitive areas near international borders.
It applies to regions between the Inner Line and the International Border, primarily areas close to Myanmar in these states.
Objectives: To ensure national security by restricting foreign nationals’ access to sensitive regions.
Implications:
For Foreign Visitors: Special permits and approvals required, potentially discouraging tourism.
Impact on Tourism and Development: Could slow international tourism and investments, reversing earlier benefits.
Enhanced Security: Allows tighter control over foreign movements, addressing illegal migration.
Pre-2010: Applied to all of Arunachal Pradesh, Sikkim, Manipur, Mizoram, Nagaland, and parts of Jammu & Kashmir, Rajasthan, Himachal Pradesh, and Uttarakhand.
2010 Relaxation: The regime was relaxed for Manipur, Mizoram, and Nagaland, allowing foreigners to visit these areas without special permits.
2024 Reimposition: The regime has been reimposed in these states, particularly due to security concerns related to illegal immigration and border management.
Structural Mandate
Mandate: Foreign nationals must apply for a Protected Area Permit (PAP) through the Ministry of Home Affairs (MHA) or state authorities to enter these areas.
Implementation: The PAPs specify the duration of stay and movement routes. Unauthorized extension or deviation from routes is prohibited. The system is managed under the Foreigners (Protected Areas) Order, 1958.
Exemptions: Some countries may have exemptions, and Indian citizens generally do not need PAPs to travel in these areas.
According to the RBI report on state finances, India’s fiscal deficit has increased from 2.8% of GDP in FY22 to a projected 3.2% in FY24, signaling that fiscal consolidation is being side-lined in favor of increasing expenditure.
Capital expenditure (capex) has risen from 2.2% of GDP in FY23 to a budgeted 3.2% in FY24, indicating increased investment in assets for future growth.
Fiscal position of the States as per the Report
Fiscal Deficit:
The Gross Fiscal Deficit (GFD) of states is projected to rise from 2.7% of GDP in FY2022-23 to 2.9% of GDP in FY2023-24.
This rise indicates that fiscal consolidation has been put on hold, with states continuing to spend more than their revenues.
Many states have budgeted for fiscal deficits above the 3% of GSDP mark, including Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, and West Bengal, among others.
Revenue Expenditure:
Revenue Expenditure is expected to increase to 14.6% of GDP in FY2025, up from 13.5% in FY2024, indicating a rise in the current expenditure of states.
Capital Expenditure (Capex):
States have ramped up their capital expenditure (spending on creating assets), which has increased from 2.2% of GDP in FY2023 to 3.2% of GDP in FY2024.
This increase is in line with the government’s focus on infrastructure and long-term growth.
State Revenue:
State revenues are projected to increase from 13.3% of GDP in FY2024 to 14.3% in FY2025, driven by improved tax collections.
There has been a marked improvement in own tax revenue buoyancy compared to the pre-Covid period.
Debt-to-GDP Ratio:
The debt-to-GDP ratio for states has increased slightly to 28.8% in FY2024, from 28.5% in FY2023.
States with high fiscal deficits tend to have debt-to-GDP ratios above the national average, which suggests they have been sustaining deficits for a longer time.
Borrowing Trends:
States have shifted significantly towards market borrowings.
The share of market borrowings in financing the fiscal deficit has increased from 17% in 2005-06 to 79% in FY2024-25.
Recommendations:
The report suggests prudent management of subsidies, rationalization of centrally sponsored schemes, debt consolidation, and the adoption of climate and outcome budgeting to improve state fiscal health.
PYQ:
[2018] Consider the following statements:
The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.
The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.
As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
NITI Aayog has proposed a set of policy interventions to enable the creation of mega workers’ accommodations near factories under its initiative called S.A.F.E (Site Adjacent Factory Employee) Accommodation-Worker Housing for Manufacturing Growth.
About the S.A.F.E. (Site Adjacent Factory Employee)Initiative
Overview
S.A.F.E. initiative by NITI Aayog aims to provide affordable dormitory-style housing for workers near industrial areas, especially migrant laborers, including women.
The housing will include essential amenities like water, electricity, and sanitation, improving workers’ living conditions and enhancing productivity.
Key Features
Location: Housing will be near industrial hubs to minimize commute time.
Basic Amenities: Includes water, electricity, and sanitation.
Ownership: Non-transferable accommodations, strictly for worker use, ensuring worker welfare.
Significance
Worker Welfare: Improves living standards and promotes gender inclusivity.
Productivity: Reduces commute time, enhancing productivity and reducing attrition.
Economic Growth: Attracts global investors and supports India’s manufacturing growth target of 25% GDP by 2047.
Key Recommendations
Tax & GST Benefits: Reclassification for tax exemptions to make the initiative financially viable.
Zoning Laws: Amendments for mixed-use developments to integrate worker housing.
Viability Gap Funding (VGF): 30%-40% of project cost for financial support.
Environmental Clearances: Streamlining for faster approvals.
Financial Support: Public-private partnerships for development and management.
Q) ‘India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent crisis in Sri Lanka in the light of the preceding statement. (UPSC CSE 2022)
Mentor’s Comment: UPSC Mains have focused on ‘India is an age-old friend of Sri Lanka’ (in 2022), and ‘how domestic factors influence foreign policy between India and Srilanka’ (in 2013).
Sri Lankan President Anura Kumara Dissanayake’s recent visit to India drew significant attention, marking his first foreign trip since taking office. The visit highlighted the shift in Sri Lanka’s political landscape, with the National People’s Power’s surprising electoral success. India’s priorities have also evolved, focusing on countering China’s influence in the region.
Today’s editorial highlights the importance of Sri Lanka for India. This content can be used to substantiate the challenges and significance due to Srilanka for India in UPSC IAS mains paper GS2.
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Let’s learn!
Why in the News?
The joint statement released by New Delhi and Colombo during the Sri Lankan President’s visit to India shows what is currently important to both countries.
What is the joint statement released by New Delhi and Colombo during the Sri Lankan President’s visit?
Bilateral Cooperation: The statement emphasizes the deep-rooted cultural ties and geographical proximity that underpin the India-Sri Lanka partnership.
Both leaders reaffirmed their commitment to enhancing cooperation in areas such as parliamentary exchanges, development cooperation, debt restructuring, energy cooperation, trade and investment, and strategic defense engagement.
Economic Support and Stability: President Anura Kumara Dissanayake expressed gratitude for India’s support during Sri Lanka’s economic crisis, highlighting India’s provision of nearly USD 4 billion in aid.
The leaders agreed on an investment-based approach to assist Sri Lanka’s economic recovery and growth, while also addressing shared security interests in the Indian Ocean Region
What is 13th Amandment?
The 13th Amendment to the Constitution of Sri Lanka, passed in 1987, was introduced as part of the Indo-Sri Lanka Accord signed between Indian Prime Minister Rajiv Gandhi and Sri Lankan President J.R. Jayewardene.
Its primary aim was to provide a framework for the devolution of power to provincial councils, thereby addressing the demands for greater autonomy from the Tamil minority, particularly in the Northern and Eastern provinces.
What is the current status of the 13th Amendment’s implementation in Srilanka?
Stagnation in Implementation: The 13th Amendment, which was designed to provide power devolution to provincial councils in Sri Lanka, has seen little progress in its implementation.
The recent joint statement from India and Sri Lanka did not address the amendment or the political solutions for Tamil aspirations, highlighting a lack of commitment from the current government led by President Anura Kumara Dissanayake.
Political Hesitance: The Dissanayake administration has avoided explicitly referencing the 13th Amendment due to its association with “Indian imposition,” which is viewed negatively by the Sinhala-Buddhist majority. Instead, the government’s focus has shifted towards broader promises of provincial council elections and constitutional reforms without a clear plan for implementing the amendment.
How do historical grievances impact contemporary Tamil-Sinhala relations?
Historical Conflict: Historical grievances from the civil war and ongoing issues related to Tamil rights significantly affect Tamil-Sinhala relations. The Tamil community continues to seek justice for wartime atrocities and greater political agency, while many in the Sinhala majority often view discussions about devolution and federalism with scepticism.
Political Dynamics: The recent electoral success of the National People’s Power (NPP) signifies a shift in Tamil political engagement, as Tamils have shown support for a party that traditionally opposed Indian intervention.
However, this shift raises concerns about how effectively the NPP will address Tamil issues without alienating its base among Sinhala nationalists.
What are the prospects for genuine reconciliation and autonomy for Tamils in Sri Lanka?
Need for Clarity: There is an urgent need for the NPP to clarify its position on Tamil rights and reconciliation. While the party’s manifesto promises provincial council elections and constitutional reforms, it lacks a concrete strategy for addressing historical grievances or ensuring autonomy for Tamils.
Challenges Ahead: Genuine reconciliation remains uncertain as long as past grievances are not adequately addressed. The Tamil polity must engage more directly with its constituents rather than relying on international actors.
The NPP’s ability to foster inter-ethnic peace will depend on its willingness to confront historical failures and implement meaningful policies that reflect the aspirations of all communities in Sri Lanka.
Way forward:
Clear Political Vision: The NPP should outline a concrete plan for addressing Tamil rights, implementing the 13th Amendment, and ensuring provincial autonomy, while balancing the demands of both Tamil and Sinhala communities.
Inclusive Dialogue: Engage in direct, inclusive dialogue with all ethnic groups, focusing on national reconciliation and addressing past grievances, to foster a durable peace and meaningful political solution for all communities in Sri Lanka.
The 129th Constitution Amendment Bill, 2024, mandates fixed five-year Lok Sabha terms, aligning State Assembly elections, with mid-term polls serving only the remainder of the five-year tenure if dissolved.
Do fixed legislative tenures promote better governance?
Potential for Improved Stability: Fixed tenures can provide a stable political environment, reducing frequent electoral disruptions that may hinder long-term governance plans.
Governance Challenges: However, Achary argues that while fixed terms might seem beneficial, they could lead to governance issues if political instability arises, as seen in states where mid-term elections are necessary due to governmental collapse.
Note:
Fixed Legislative Tenure refers to predetermined, non-variable terms for legislatures, ensuring elections occur at set intervals, and enhancing stability.
Mid-term polls are elections held before the scheduled end of a legislative term, usually triggered by government collapse or dissolution.
How would fixed tenures impact the accountability of elected officials?
Increased Accountability: Frequent elections are believed to enhance political accountability since representatives must consistently engage with their electorate. Achary emphasises that regular electoral cycles compel politicians to remain responsive to public needs.
Mid-Term Elections as a Safety Valve: Allowing mid-term elections maintains accountability within the legislative framework, ensuring that elected officials remain answerable to their constituents even if they face political challenges during their term.
What are some learnings from the Western world?
Lessons from the UK: The UK’s Fixed-term Parliaments Act of 2011 was meant to set fixed terms for its Parliament but caused problems like policy delays and constitutional issues.
It was eventually repealed. India’s plan is different because it allows mid-term elections, where new governments serve only the remaining term, not a full fixed term.
Lessons from Germany: The Constructive Vote of No Confidence in Germany mandates the selection of a new leader before the current one is removed, ensuring stability. However, this approach is not well-suited to India’s political system and has not gained significant support.
What challenges might arise from implementing fixed tenures in the Indian political context?
Erosion of Federalism: Aligning State Assembly tenures with those of the Lok Sabha could weaken federalism by reducing the autonomy of state legislatures. This may result in premature dissolutions and disruptions in local governance.
Political Instability Risks: The bill’s provision for shorter tenures following mid-term elections could result in significant instability. If a government collapses mid-term, the resultant Lok Sabha might only serve for about a year, which is seen as undesirable by Madhavan.
Potential for Increased Political Maneuvering: There is doubt about whether fixed tenures can effectively deter practices like horse trading or efforts to destabilize governments. While the bill aims to address such issues, its success is uncertain.
Way forward:
Strengthen Federalism: Ensure state legislatures retain autonomy by allowing flexibility in election cycles and minimizing central influence on state governance.
Mitigate Political Instability: Introduce safeguards like stricter anti-defection laws and robust mechanisms to address mid-term government collapses while maintaining accountability.
Mains PYQ:
Q ‘Simultaneous election to the Lok Sabha and the State Assemblies will limit the amount of time and money spent in electioneering but it will reduce the government’s accountability to the people’ Discuss. (UPSC IAS/2017)
space startups from Japan and India announced a joint agreement to explore the use of laser-equipped satellites for removing debris from orbit, addressing the growing issue of orbital congestion.
What is Space Debris?
Space debris, often referred to as space junk, consists of non-functional spacecraft, spent rocket stages, and fragments from collisions or disintegration of satellites.
These objects orbit the Earth at high speeds, posing significant risks to operational satellites and manned missions.
What are laser-equipped satellites for removing debris from orbit?
Laser-equipped satellites utilize focused laser beams to target and vaporize small parts of space debris, effectively stopping its rotation and making it easier for servicing spacecraft to rendezvous with and de-orbit defunct satellites. T
Companies like Japan’s Orbital Lasers and India’s InspeCity are collaborating to explore business opportunities for these laser systems.
They plan to demonstrate this technology in space, with potential deployment on satellites after meeting regulatory requirements in their respective countries, indicating a growing interest in international partnerships to tackle the issue of space debris.
What are the concerns related to space debris?
Collision Risks: The increasing amount of space debris raises the likelihood of collisions with active satellites and spacecraft, which can lead to further debris generation in a cascading effect known as the Kessler Syndrome.
Operational Challenges: Space debris complicates satellite operations and can disrupt services such as telecommunications, weather forecasting, and global positioning systems.
Environmental Impact: The accumulation of debris in low Earth orbit (LEO) threatens the sustainability of space activities and could hinder future space exploration efforts.
What are the initiatives to tackle space debris globally?
International Collaboration: Organizations like the United Nations have called for urgent action to track and manage space debris, emphasizing the need for global cooperation.
Technological Innovations: Companies like Orbital Lasers are exploring innovative solutions such as using laser-equipped satellites to de-orbit defunct satellites and mitigate debris by vaporizing parts of their surfaces.
Regulatory Frameworks: Various countries are developing regulations to ensure responsible satellite launches and operations, including guidelines for end-of-life satellite disposal to minimize future debris creation.
What are the measures should be taken by Satellite? (Way forward)
Tracking and Monitoring: Satellites use onboard systems and ground-based tracking data to monitor the position of space debris and predict potential collision risks.
Avoidance Maneuvers: Satellites perform preemptive orbital adjustments or “collision avoidance manoeuvres” to shift their trajectory away from debris.
Shielding and Resilience: Some satellites are equipped with protective shielding to withstand minor debris impacts, minimizing potential damage in low-risk scenarios.
Mains PYQ:
Q What is India’s plan to have its own space station and how will it benefit our space programme? (UPSC IAS/2019)
The European Union has signed a contract for IRIS², a network of 290 satellites aimed at improving resilience, connectivity, and security.
About IRIS²:
Details
IRIS² stands for Infrastructure for Resilience, Interconnectivity, and Security by Satellite.
It consists of a 290-satellite constellation, including 264 satellites in Low Earth Orbit (LEO) and 18 in Medium Earth Orbit (MEO).
Collaboration between European Union and SpaceRISE.
First satellite launch planned for 2029.
Key Features of IRIS²:
Deployment of 264 satellites in LEO and 18 in MEO.
Provide secure, high-speed broadband connectivity, particularly in underserved regions.
Focus on Europe for secure satellite internet services.
Project Funding and Implementation
12-year concession for IRIS² is funded by the EU, ESA, and private firms like SES, Eutelsat, and Airbus.
Total cost: €10.6 billion (~$11 billion).
Applications of IRIS²
Governmental Use: Border surveillance, crisis management, infrastructure security, and defense.
Civilian Use: Broadband access, smart energy, transportation, and remote healthcare.
World’s Largest Earth Observation Programs: Take a look
Copernicus Program (EU): Launched in 2014, the Copernicus Program is a European Union initiative with satellites like Sentinel to monitor land, ocean, and atmosphere, enhancing environmental management and disaster response.
NASA Earth Observing System (EOS): Initiated in 1997, NASA’s EOS provides comprehensive Earth observation data from satellites like Terra and Aqua, focused on understanding Earth’s environment, climate change, and atmospheric composition.
Global Earth Observation System of Systems (GEOSS): Founded in 2005, GEOSS connects Earth observation systems globally to provide data on climate, water resources, biodiversity, and natural disasters, involving over 100 organizations.
Landsat Program (USA): Launched in 1972 by NASA and USGS, Landsat is the longest-running satellite program offering continuous Earth surface monitoring, focusing on land cover, land use, and environmental changes.
Note:
In September, 2024, ISRO launched the Earth Observation Satellite EOS-08 under the SSLV-D3/EOS-08 mission from the Satish Dhawan Space Centre, Sriharikota, with the satellite operating in a circular Low Earth Orbit at an altitude of 475 km and a mission life of 1 year.
All 17,130 police stations in India are now connected through the Crime and Criminal Tracking Network and Systems (CCTNS), a centralized online platform for filing FIRs, chargesheets, and investigation reports, accessible to law enforcement across the country.
AboutCriminal Tracking Network and Systems (CCTNS):
What is CCTNS?
A centralized online platform to file FIRs, charge-sheets, and investigation reports across 17,130 police stations.
Launched in 2009 with a ₹2,000 crore budget under the Ministry of Home Affairs.
Aimed at improving efficiency, transparency, and nationwide access to crime data.
Key Features
Nationwide integration, with 100% connectivity across 28 states and 8 Union Territories.
Stores data on criminals, habitual offenders, missing persons, stolen vehicles, etc.
Generates analytical crime reports and detailed case statistics.
Integrated with the ICJS (Integrated Criminal Justice System) for coordination with courts, forensics, and other criminal justice pillars.
Recent Modifications for New Criminal Laws
Incorporates the 2024 Bharatiya Nyaya Sanhita (erstwhile IPC), Bharatiya Sakshya Adhiniyam (Indian Evidence Act), and Bharatiya Nagarik Suraksha Sanhita (CrPC).
Introduces mandatory videography for crime scenes in serious cases, forensic investigations, and arrest transparency (including officer approval and informing relatives).
Updates include timely progress reports and digital reporting of daily diaries.
Impact and Implementation
Facilitates efficient investigations by providing access to comprehensive crime data and analytical tools.
Improves police coordination across states and law enforcement agencies.
Enhanced citizen services with online tracking of complaints and case updates.
Supported by the National Crime Records Bureau (NCRB) and integrated with other public safety platforms for better coordination and resource management.
PYQ:
[2014] We are witnessing increasing instances of sexual violence against women in the country. Despite existing legal provisions against it, the number of such incidences is on the rise. Suggest some innovative measures to tackle this menace.
India and China have agreed to resume the Kailash-Mansarovar Yatra.
The pilgrimage has been suspended since2020 due to the COVID-19 pandemic and non-renewal of arrangements by China.
India-China Talks on Border Management:
Disengagement and De-escalation: Agreed to continue implementing the October 2024 disengagement agreements for safe patrolling and grazing in certain areas.
Peace and Tranquility: Both sides agreed to maintain peace along the border and implement effective border management mechanisms.
Resolution of Boundary Dispute: Continued efforts toward a mutually acceptable solution to the boundary dispute.
Cross-Border Cooperation: Discussions included river cooperation, Nathula border trade, and other exchanges to strengthen bilateral relations.
About Kailash Mansarovar:
Kailash Mansarovar is a sacred religious site located in the Tibetan Autonomous Region of China, near the borders of India, Nepal, and Tibet.
It consists of Mount Kailash, a peak considered to be the abode of Lord Shiva in Hinduism, and Mansarovar Lake, a high-altitude freshwater lake revered in Hinduism, Buddhism, Jainism, and Bon traditions.
Geographical Location:
Mount Kailash stands at an elevation of 6,638 meters (21,778 feet), making it one of the most difficult and revered peaks to approach.
The Mansarovar Lake is located at an altitude of 4,556 meters (14,950 feet) and spans approximately 88 square kilometers.
The region lies in the Tibetan Plateau.
Religious Significance:
Hinduism:
Mount Kailash is considered the abode of Lord Shiva and his consort Parvati. Pilgrims believe that a pilgrimage to Kailash is essential for liberation and salvation (Moksha).
Mansarovar Lake is believed to have been created by Lord Brahma. Bathing in its holy waters is believed to cleanse sins and grant spiritual merit.
Buddhism:
The region is sacred as it is believed to be the home of Buddha Demchok, who represents supreme bliss.
The lake is also linked to the Jambhala, the god of wealth in Tibetan Buddhism.
Jainism:
Jain tradition holds that Lord Rishabhanatha, the first Tirthankara, attained Nirvana at the peak of Mount Kailash.
Bon Religion:
For practitioners of Bon, an ancient religion indigenous to Tibet, Kailash is regarded as the sacred center of the universe.
Route and Access:
India to Kailash Mansarovar: The pilgrimage is generally undertaken through the Lipulekh Pass, a high-altitude pass that connects Uttarakhand (India) with Tibet.
Pilgrims usually travel through Nepal, and the journey is conducted via Kailash Mansarovar Yatra (KMY) under the Ministry of External Affairs (MEA).
Travel to Mount Kailash and Mansarovar Lake is restricted, and permits are required from the Chinese government.
Pilgrims from India are primarily facilitated through the Kailash Mansarovar Yatra organized by the Government of India and other authorized agencies.
PYQ:
[2016] Border management is a complex task due to difficult terrain and hostile relations with some countries. Elucidate the challenges and strategies for effective border management.
PYQ Relevance: Q) Consider the following statements: 1. Aadhaar card can be used as proof of citizenship or domicile. 2. Once issued, the Aadhaar number cannot be deactivated or omitted by the Issuing Authority. Which of the statements given above is/are correct? (UPSC CSE 2018) (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Mentor’s Comment: UPSC Prelims have focused on ‘citizenship or domicile’ (in 2018), and ‘only one citizenship and one domicile’ (2021).
In October 2024, a Constitution Bench of the Supreme Court ruled 4:1 to uphold Section 6A of the Citizenship Act, 1955. This law provides a special process for people from former East Pakistan (now Bangladesh) who settled in Assam, allowing them to become Indian citizens if they arrived before March 25, 1971. The judgment is important but raises questions about overlooked constitutional issues and the possible negative effects of the decision.
Today’s editorial focuses on the implications of the Supreme Court’s recent decision to uphold the constitutional validity of Section 6A. You can use this content for the question asked on ‘Governance issues’ and ‘internal security issues’.
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Let’s learn!
Why in the News?
The Supreme Court’s recent decision to uphold the constitutional validity of Section 6A overlooks critical constitutional issues, especially those affecting Assam’s indigenous population.
What is Section 6A of the Citizenship Act, 1955?
Section 6A of the Citizenship Act, 1955, was introduced as part of the Citizenship (Amendment) Act, 1985, following the Assam Accord. This provision specifically addresses the citizenship status of migrants from Bangladesh who settled in Assam.
• Categories of Migrants: Pre-1966 Migrants: Individuals who entered Assam before January 1, 1966, are deemed Indian citizens from that date. 1966-1971 Migrants: Those who entered between January 1, 1966, and March 25, 1971, can apply for citizenship after a mandatory registration process and a waiting period of ten years. • Cut-off Date: The cut-off date of March 25, 1971, was chosen because it coincides with significant historical events related to the Bangladesh Liberation War. • Exclusions: Section 6A explicitly excludes individuals who were already Indian citizens before the amendment and those expelled under the Foreigners Act, 1946. • Voting Rights: Migrants from the 1966-1971 category are denied voting rights for ten years from the date they are identified as foreigners.
How does Section 6A impact the demographic and cultural landscape of Assam?
Cultural and Linguistic Displacement: The influx of migrants facilitated by Section 6A has led to significant demographic changes in Assam. Research indicates that between 1951 and 2011, the percentage of the Bengali-speaking population increased from 21.2% to 28.91%, while the proportion of Assamese speakers declined from 69.3% to 48.38%. This shift represents a cultural and linguistic displacement that threatens the distinct identity of the Assamese people.
Political and Economic Strain: The arrival of a large number of migrants has raised concerns about political representation and economic resources in Assam. The perceived threat to local culture and political rights has been a driving force behind movements advocating for stricter immigration controls.
Social Tensions: The demographic shifts have exacerbated social tensions between indigenous Assamese communities and migrant populations, leading to conflicts over resources, identity, and political power.
What are the legal and constitutional challenges associated with Section 6A?
Violation of Article 29: Critics argue that Section 6A violates Article 29, which protects the cultural and linguistic identities of distinct communities in India.
The Supreme Court’s ruling, which stated that the influx did not infringe upon the ability of Assamese people to conserve their culture, has been challenged as flawed reasoning that overlooks the erosion of cultural identity.
Temporal Unreasonableness: Section 6A lacks a temporal limitation, allowing individuals who entered before March 25, 1971, to apply for citizenship indefinitely.
This raises concerns about its relevance over time, as it fails to address contemporary issues related to migration.
Arbitrary Reasoning: The judgment has been criticized for arbitrary reasoning, particularly in how it justifies singling out Assam for special treatment while disregarding similar situations in other states like West Bengal and Meghalaya.
Flawed Mechanism for Identification: The process for identifying migrants under Section 6A is problematic, placing the burden on state authorities without a clear mechanism for voluntary self-identification by migrants. This has led to inefficiencies and confusion regarding citizenship status.
What are the implications of the Supreme Court’s ruling on Section 6A for future immigration policies in India?
Precedent for Future Laws: The ruling sets a precedent for how immigration laws may be framed in India, potentially allowing for similar provisions that distinguish between different states or communities based on historical migrations.
Potential for Increased Migration: By upholding Section 6A, there is concern that it may encourage further migration into Assam and other regions, as individuals may perceive opportunities for citizenship under similar provisions.
Focus on Cultural Protection: Future immigration policies may need to consider cultural protections more seriously, as the ruling highlights the tension between humanitarian needs and cultural preservation.
Need for Comprehensive Immigration Reform: The ruling underscores the necessity for comprehensive immigration reform that addresses both historical contexts and contemporary realities while ensuring the protection of cultural identities.
Impact on Political Discourse: The ruling may influence political discourse surrounding immigration in India, potentially polarizing opinions on citizenship rights and cultural identity among different communities.
India’s decentralised drug regulation system dominated by State Drug Regulatory Authorities causes inconsistent quality standards. Strengthening oversight is essential to ensure generics are as affordable and effective as branded drugs.
How Reliable Are Generic Medicines?
Bioequivalence to Innovators: Generic medicines are bioequivalent to brand-name drugs, meaning they have the same active ingredient and are intended to work the same way.
Affordability and Accessibility: Generics significantly lower healthcare costs, making treatment more accessible, especially for low-income populations.
Challenges in Quality: Despite their potential, the reliability of generics has been questioned due to variability in therapeutic outcomes, often caused by differences in excipients, manufacturing processes, and bioequivalence thresholds.
What are the main quality concerns associated with it?
Efficacy and Bioavailability: Studies have shown that while generics are bioequivalent to branded drugs, they may not always achieve the same therapeutic levels.
For example, a study on itraconazole showed that only 29% of patients using generic versions achieved the right drug levels in their body within two weeks, compared to 73% of patients using the original branded drug.
Manufacturing Variability: The manufacturing processes for generics can differ significantly from those of branded drugs. Variations in excipients (binders, fillers) and production methods can lead to differences in tablet hardness, dissolution rates, and overall drug stability. This variability can result in inconsistent therapeutic outcomes.
Regulatory Oversight: India’s decentralized drug regulation system contributes to inconsistent quality standards across states.
The Central Drugs Standard Control Organisation (CDSCO) has limited authority over State Drug Regulatory Authorities (SDRAs), leading to regulatory arbitrage where manufacturers exploit weaker oversight. Moreover, the lack of stringent enforcement of stability testing further jeopardizes the quality of generics available in the market.
What regulatory reforms are needed?
Centralisation of Drug Regulation: A comprehensive overhaul of India’s drug regulation system is necessary. Centralising oversight under the CDSCO would help enforce consistent quality standards across all states and reduce the risk of substandard drugs entering the market.
Enhanced Stability Testing Protocols: Uniform stability testing protocols should be established to ensure that all generics maintain their quality under various climatic conditions. This would involve periodic reassessment of approved generics to uphold their efficacy over time.
Stricter Impurity Standards: Aligning India’s Pharmacopoeia with international standards regarding permissible impurity levels would improve the overall quality of generic medicines available in the market.
How can patient and healthcare provider perceptions of generics be improved? (Way forward)
To enhance patient and healthcare provider confidence in generic medicines, several strategies can be employed:
Public Awareness Campaigns: Educating patients about the efficacy and safety of generics compared to branded drugs can help dispel misconceptions that higher-priced medications are superior.
Incentives for Healthcare Providers: Offering incentives for prescribing generics can encourage healthcare professionals to recommend these cost-effective alternatives more frequently.
Strengthening Quality Assurance: Implementing stronger regulatory frameworks and ensuring compliance with quality standards can build trust among both patients and providers regarding the reliability of generics.
Mains PYQ:
Q Why is there so much activity in the field of biotechnology in our country? How has this activity benefitted the field of biopharma? (UPSC IAS/2018)
Since its launch, PM-AASHA has significantly benefitted farmers, contributing to the procurement of 195.39 lakh metric tonnes (LMT) of agricultural commodities, valued at ₹1,07,433.73 crore, from over 99 lakh farmers.
Procurement Details:
In the Rabi 2023-24 season, 6.41 LMT of pulses, valued at ₹4,820 crore, were procured from 2.75 lakh farmers. This included:
2.49 LMT of Masoor
43,000 metric tonnes of Chana
LMT of Moong
In addition, 12.19 LMT of oilseeds, valued at ₹6,900 crore, were procured from 5.29 lakh farmers.
In the ongoing Kharif season, the government has procured 5.62 LMT of Soyabean, valued at ₹2,700 crore, benefiting 2.42 lakh farmers.
About the PM-AASHA Scheme
Details
Launched in 2018, PM-AASHA is an umbrella scheme encompassing various components to ensure farmers receive fair prices for their produce.
Aims and Objectives
Ensuringfair pricesfor farmers by providing price support when market prices fall below the Minimum Support Price (MSP).
Stabilize the prices of essential commodities, benefiting both farmers and consumers.
Addressing price fluctuations and ensuring sustainable agricultural practices for crops like pulses, oilseeds, and copra.
Structural Mandate and Implementation
Type: Central Sector Scheme (Fully funded by the Centre).
Nodal Ministry: Ministry of Agriculture & Farmers Welfare.
Fund Allocation: Rs. 35,000 crore during the 15th Finance Commission Cycle (up to 2025-26).
Central Nodal Agencies (CNA):
Guarantees to lender banks for extending cash credit facilities to agencies like NAFED (National Agricultural Co-operative Marketing Federation of India Limited) and NCCF (National Co-operative Consumer’s Federation of India Limited) for MSP procurement.
Department of Consumer Affairs (DoCA) will procure pulses at market price from pre-registered farmers on eSamridhi Portal of NAFED and eSamyukti Portal of NCCF when prices exceed MSP.
Key Components:
Price Support Scheme (PSS):
The PSS is the core component of PM-AASHA, operating through state governments to procure notified commodities at the Minimum Support Price (MSP) levels.
It provides financial relief to farmers when market prices fall below MSP, offering remunerative prices and promoting investment in agriculture.
The government fixes the MSP for 24 crops at 1.5 times the Cost of Production (CoP) to ensure a fair income for farmers.
Price Deficiency Payment Scheme (PDPS):
Under PDPS, farmers are provided direct payments if the market prices of oilseeds fall below the MSP.
It helps bridge the gap between MSP and market prices, ensuring that farmers still get a fair return.
Market Intervention Scheme (MIS):
The MIS provides financial assistance to states for price stabilization of perishable agricultural commodities like Tomato, Onion, and Potato, which are not covered under MSP.
This scheme helps manage price volatility and benefits both farmers and consumers by stabilizing prices.
PYQ:
[2020] In India, the term “Public Key Infrastructure” is used in the context of:
(a) Digital security infrastructure
(b) Food security infrastructure
(c) Health care and education infrastructure
(d) Telecommunication and transportation infrastructure
With Donald Trump potentially returning to the White House, OPEC+ delegates express concern over higher US oil production.
His administration’s focus on deregulating the energy sector could lead to increased oil output, contributing to a further erosion of OPEC+’s market share.
About ‘Organization of the Petroleum Exporting Countries’ Plus (OPEC+)
What is OPEC+?
Formation and Purpose:
OPEC+ is a coalition of OPEC members and non-OPEC oil-producing nations that work together to manage oil production and stabilize global oil prices.
The alliance was formed in 2016 in response to increasing oil production in the United States, particularly from shale oil, which led to falling oil prices.
OPEC Members:
OPEC was founded in 1960 and includes 12 member countries: Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates (UAE), Venezuela.
Non-OPEC Members in OPEC+:
OPEC+ includes 10 non-OPEC members: Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, Sudan.
Global Influence:
OPEC+ countries together produce approximately 40% of the world’s crude oil and control about 80% of the world’s proven oil reserves.
Factors are influencing OPEC+’s oil production cuts
Rising US oil production: The shale boom in the US has increased its market share, impacting OPEC+’s influence.
Global price stability: OPEC+ implements production cuts to prevent oil prices from falling too low.
Weak global demand: Extended cuts due to low demand, especially in major economies.
Implications of OPEC+’s policies
Reduced market share: OPEC+’s global oil share dropped from 55% in 2016 to 48% in 2024.
Price volatility: OPEC+’s production cuts aim to stabilize prices, but increasing US production affects this goal.
Economic stability: Production cuts help sustain favorable prices for oil-producing economies.
PYQ:
[2009] Other than Venezuela, which one among the following from South America is a member of OPEC?
Sri Lankan President Anura Kumara Dissanayake’s visit to India, his first international trip as per tradition, underscores the continuity in India-Sri Lanka bilateral relations.
What are the current China-related challenges in India-Sri Lanka relations?
Geopolitical Tensions: Sri Lanka’s historical ties with China, particularly during the Mahinda Rajapaksa regime, have raised concerns in India regarding potential Chinese influence in the region.
China’s investment in Sri Lanka, particularly in the Hambantota Port, is closely tied to its broader String of Pearls strategy.
Economic Dependency: Sri Lanka’s reliance on Chinese investments has created a “debt trap” scenario, limiting its ability to align with Indian interests fully. The need for economic assistance from both nations complicates Sri Lanka’s foreign policy decisions, as it seeks support without alienating either side.
Balancing Act: Sri Lanka is attempting to navigate its relationships with India and China, which often puts it in a difficult position.
President Anura Kumara Dissanayake has expressed intentions to strengthen ties with India while maintaining relations with China, indicating a desire for a balanced approach. However, this balancing act is complicated by India’s concerns over Chinese influence and activities in the Indian Ocean.
How can India and Sri Lanka enhance their economic and strategic partnerships?
Trade Agreements: There is a push for an upgraded India-Sri Lanka Free Trade Agreement (FTA) to facilitate bilateral trade and investment. This could include provisions for Foreign Direct Investment (FDI) protection and expanded coverage of goods and services.
Production-Linked Incentive (PLI) Scheme: Implementing a regional PLI scheme could encourage Indian businesses to invest in Sri Lanka, particularly in sectors like renewable energy and electronics. This initiative would help build regional supply chains and reduce dependency on imports.
B2B Engagement: Strengthening business-to-business ties, especially between smaller enterprises, could enhance economic collaboration. This involves increasing participation in trade fairs and fostering connections between businesses in southern Indian states and Sri Lanka.
What role does regional stability play? (Way forward)
Security Cooperation: Regional stability is crucial for both nations as they address external threats, particularly from China. Dissanayake’s assurance that Sri Lankan territory will not be used against Indian interests is vital for maintaining security cooperation and trust between the two countries.
Economic Recovery: As Sri Lanka recovers from its recent economic crisis, stable relations with India are essential for securing ongoing support from international financial institutions like the IMF. Enhanced cooperation can serve as a model for regional partnerships that promote stability and economic growth across South Asia.
Geopolitical Balance: A collaborative approach can help mitigate risks associated with external influences and ensure that both nations can pursue their national interests without compromising sovereignty.
Mains PYQ:
Q What do you understand by ‘The String of Pearls’? How does it impact India? Briefly outline the steps taken by India to counter this. (UPSC IAS/2013)
Sovereign gold bonds provide a safer and more cost-effective alternative to holding physical gold, as they reduce risks and storage expenses. However, the central government is considering discontinuing the SGB scheme.
What is the Sovereign Gold Bond scheme?
About
GOI launched it on October 30, 2015.
Structural Mandate
Nodal Agency:Ministry of Finance;
Issued by RBI on behalf of the GOI.
Aims and Objectives
To reduce dependence on gold imports and shift savings from physical gold to paper form.
Targeted Beneficiaries
Residents of India, including individuals, HUFs, trusts, universities, and charitable institutions.
Funding Mechanism
The Sovereign Gold Bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. This ensures a sovereign guarantee for both the principal and interest payments.
The bonds are made available for subscription in tranches. The RBI notifies the terms and conditions for each tranche, including the subscription dates and issue price, which is based on the average closing price of gold of 999 purity published by the India Bullion and Jewellers Association (IBJA).
SGBs are sold through various channels, including scheduled commercial banks (excluding small finance banks), designated post offices, Stock Holding Corporation of India Limited (SHCIL), and recognized stock exchanges like NSE and BSE.
Features
Sovereign gold Bonds are issued in 1-gram denominations with an 8-year tenure and early exit from the 5th year.
The minimum investment is 1 gram, a maximum 4 kg for individuals, and 20 kg for trusts.
Benefits include security, interest, and loan collateral.
What are the concerns regarding sovereign gold bonds?
High Cost of Financing: The government perceives the cost of financing its fiscal deficit through SGBs as disproportionately high compared to the benefits provided to investors. This perception has led to a significant reduction in the issuance of SGBs, dropping from ten tranches annually to just two.
Limited Issuance in Current Financial Year: In the financial year 2024-25, no new sovereign gold bonds have been issued so far, and net borrowing through these bonds has been significantly reduced from previous estimates.
Market Competition from Physical Gold: The recent reduction in customs duty on gold from 15% to 6% has led to a surge in demand for physical gold. Investors may prefer holding physical gold over waiting for returns from debt securities like SGBs, which require maturity periods before realizing gains.
What are the challenges due to the import of Gold?
Impact on Trade Deficit: Gold imports are a major contributor to India’s trade deficit, with a record $14.8 billion spent in November 2024, which weakened the rupee. Between 2016 and 2020, gold imports made up 86% of the country’s gold supply, leading to significant foreign exchange outflows and economic instability.
Encouragement of Smuggling: High import duties on gold have driven a rise in smuggling, with 65% to 75% of smuggled gold entering India through air routes. This illegal trade undermines government revenue and complicates market regulation.
Way forward:
Increase Liquidity and Accessibility: Similar to gold-backed ETFs in the U.S. and Gold Bullion Securities in Australia, India can enhance the liquidity of SGBs by allowing them to be traded on stock exchanges, providing easy access and better market engagement for investors.
Encourage Regular Investments: Drawing inspiration from Germany’s gold savings plans, India can introduce flexible investment options such as monthly or quarterly contributions, enabling dollar-cost averaging and attracting retail investors over time.
Mains PYQ:
Q Craze for gold in Indian has led to surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization scheme. (UPSC IAS/2015)
