[Mission 2023] Insights SECURE SYNOPSIS: 6 May 2023

 

NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same

---

General Studies – 1

---

 

1. Explaining the phenomenon of El Nino, discuss its impact on the world climate, including the Indian monsoon.

Difficulty level: Easy

Reference:  Hindustan Times

Introduction

El Niño is a naturally occurring phenomenon that is linked to a periodic warming in sea surface temperatures across the central and east-central Equatorial Pacific. El Niño is Spanish for “the boy child,” which is often used to refer to Jesus Christ, and the phenomenon earned this name because it typically occurs in December around Christmas. El Niño occurs every 2-7 years, and can last anywhere between nine months and two years.

Body

 

Mechanism

During El Niño, the trade winds weaken or even reverse: Instead of blowing from east (South America) to west (Indonesia), they could turn into westerlies. As the winds blow from the west to east, they cause the masses of warm water to move into the central and eastern equatorial Pacific Ocean. The rise in SSTs there, thus, produces increased rainfall along western Latin America, the Caribbean and US Gulf Coast, while depriving Southeast Asia, Australia and India of convective currents.

El-Nino impact on world climate:

• According to the World Meteorological Organisation (WMO), the world should prepare for the development of El Niño, which is often associated with increased heat, drought or rainfallin different parts of the world.
• Increased rainfallin parts of southern South America, the southern US, the Horn of Africa and central Asia.
• Severe droughtsover Australia, Indonesia, and parts of southern Asia.
• Warm waterduring summer in the northern hemisphere can fuel hurricanes in the central/eastern Pacific Ocean and can hinder hurricane formation in the Atlantic Basin.
• A new spike in global heatingwill increase the chance of breaking temperature records (in 2024).
• 50:50 chance of the global temperaturetemporarily reaching 1.5°C above the pre-industrial era.

El-Nino impact on Indian monsoon:

• El Nino, characterized by warming of surface temperatures in the Pacific Ocean, is associated with lower than normal monsoon rainfall in India.
• El Nino has been found to impact almost half the world triggering droughtsin Australia, India, southern Africa and floods in Peru, Ecuador, the United States, the Gulf of Mexico, and the Colorado River basin.
• El Nino affects the flow of moisture-bearing windsfrom the cooler oceans towards India, negatively impact the summer (south-west) monsoon.
• After all, the south-west monsoon (June-September) accounts for over 70% of the country’s annual rainfall and irrigates over half of the crop land.
• The rain-fed kharif crops are heavily dependent on the monsoon and the quantity of rainfall determines agricultural production.
• El Niño years tend to be drier than average, but one of the strongest El Nino of the century (1997-98) produced a monsoon season with above-average rainfall for India.
• Researchers also believe that even the location of the warming in the Pacific may possibly have an influence on the monsoon.

Impact of the early arrival of Indian monsoon:

• The monsoon arrived earlier than normal in India, raising hopes that output of crops like rice and oilseeds will get a boost after a brutal heat wave hit winter-sown wheat and prompted the nation to restrict exports.
• India is the second-biggest grower of wheat, rice, sugar and cotton, and the largest buyer of palm, soybean and sunflower oils.
• The livelihood of millions of farmers in the country of about 1.4 billion people depends on rains brought by the winds from the Indian Ocean.
• The farm sector is the main source of income for 60% of its population and accounts for 18% of the economy.
• The monsoon is critical to India’s farm output and economic growth at a time when the country, where man-made systems like canals and tube wells irrigate only a part of the land, is battling soaring food prices.
• Timely and normal rains are set to boost production outlook for monsoon-sown crops such as rice, soybeans and pulses and help in softening soaring inflation.
• Bountiful rains would also fill reservoirs, which in turn would brighten prospects for winter crops, usually planted during October and November.
• The early arrival of the south-west monsoon comes at a time when parts of Northwest India were experiencing extremely high maximum temperatures.

Conclusion

Early or late arrival of monsoon does not mean it would bring lesser or more rainfall. Earlier this year, IMD predicted a “normal” monsoon. It means the rainfall is likely to be in the range of 96-104 per cent of the long period average of the years 1971-2020. A good monsoon boosts crop output, while poor rains lead to drinking water shortages, lower harvests and higher imports of some commodities.

 

2. There is an urgent need for effective implementation of laws and policies to eradicate manual scavenging and provide alternative livelihoods to the affected communities. Examine.

Difficulty level: Moderate

Introduction

Manual scavenging refers to the unsafe and manual removal of raw (fresh and untreated) human excreta from buckets or other containers that are used as toilets or from the pits of simple pit latrines.

From March 22 to April 26, 2023, as many as eight people have died while cleaning sewers in various parts of the Gujarat, raising concerns about the continuing deaths of manual scavengers despite the fact that the practice has been declared illegal across the country.

Body

Government interventions

• The Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act, 1993and employment of manual scavengers was declared unlawful.
• National Commission for Safai Karamchariswas constituted under the National Commission for Safai Karamcharis Act, 1993, to monitor and recommend specific programs.
• Nationalaction plan for the total eradication of manual scavenging by 2007.
• Self-Employment Scheme for Rehabilitation of Manual Scavengers initiated to provide training, loans, and subsidies for alternate occupations in 2007.
• Prohibition of Employment as Manual Scavengers and Their Rehabilitation, Act, 2013.
• In 2014, the Supreme Court ruled in Safai Karamchari Andolan v. Union of Indiathat “entering sewer lines without safety gears should be made a crime even in emergency situations,” and ordered for compensation in cases of death of the worker.
• The Nirmal Bharat Abhiyan (NBA) was replaced by Swachh Bharat Abhiyan (SBA)in 2014.
• Ministry for Social Justice and Empowerment announced the Draft National Action Plan Framework ‘to eliminate inhuman practicesby 15th August 2022’ and counted sewage cleaning as one such practice.

Reasons for lack of effective implementation of the law

• Prohibition and Employment of Manual Scavengers and their Rehabilitation Act, 2013– fails to explain what qualifies as “appropriate safety gear”.
  • It does not mention health as a component of rehabilitationand provides a meagre amount of money to the worker in the name of assistance for alternative occupations, which most manual scavengers remain unaware 
  • Nothing in the act mentions provisions related to the death of manual scavengers.
• Municipalities choose the compensation routeas they mostly outsource the unsanitary sanitation work.
• Toilets that were built under SBM are dependent on water and a lot of parts of India are not connected by the sewage system. Also, Septic tanks have engineering defectswhich means that after a point, a machine cannot clean it.
• Ministry of Health and Family Welfare has remained elusive of the health problems of manual scavengers even though the National Health Policy (2017) calls for action on social determinants of health.

Reasons for the Prevalence of Manual Scavenging in India

• Delayed Implementation– Manual scavenging was banned 25 years ago but it continues to find practitioners.
• Insanitary Latrines– According to Safai Karmachari Andolan, the occupation persists mainly because of the continued presence of insanitary latrines. There are about 2.6 million insanitary latrines (dry toilets) that require cleaning by hand.
• Caste-based notions of stigma and deployment of Dalit workers in these occupations in modern contexts reinforces manual scavenging in India.
• The policymakers’ have a fragmented and a target driven approach(counting numbers of toilets, length of sewerage, etc.,) to sanitation.
• Privatization of waste management and acute contractualisationof sanitation work has made fixing legal responsibility and identification of the guilty much more difficult.
• Gender-based occupation– Manual scavenging is not only a caste-based but also a gender-based occupation with 90 percent of them being women. Households with dry latrines prefer women to clean the excreta instead of men as they are located inside the house.
• Inadequate Funding 

Way-Forward

• Adopting technology to end manual scavenging– It is not going to be possible to eliminate manual scavenging unless we create the right technologies.
  • Hyderabad Metropolitan Water Supply and Sewerage Boardis using 70 mini jetting machines that can access narrow lanes and smaller colonies to clear the choked sewer pipes.
  • In Thiruvananthapuram, a group of engineers has designed a spider-shaped robot that cleans manholes and sewers with precision.
• Proper awareness and sensitization of the authorities: It is essential that the authorities are sensitized to recognize the intensity of the issue and see the system as dehumanizing and unconstitutional.
• Sensitising Women through a nationwide march to make them aware of their right to live with dignity and assure them of ‘sustainable freedom’, by providing an alternative livelihood option.
• That the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 and the Supreme Court’s judgment of 2014 should be duly implemented and applied in all cases of sewer/septic tank deaths.
• Target driven approach to measure the success of the sanitation policy
• The underlying caste-based attitude to sanitation work and workers should be identified and strong action taken against it.

Conclusion

To eradicate the profession of manual scavenging, it is important to provide these people with alternate professions. The government could start by giving specific training for vocations like plumbing, gardening etc to those involved in manual scavenging.

---

General Studies – 2

---

 

3. Discuss the issues associated with the imposition of Sedition law in India and the calls for reforms in it.

Difficulty level: Moderate

Reference: BS

Introduction

According to the Section 124A of IPC, Sedition is an act that brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards the Government established by law in India by words, either spoken or written, or by signs, or by visible representation, or otherwise. Colonial administrators used sedition to lock up people who criticised the British policies.

Recently, The government has informed the Supreme Court that it has initiated the process of re-examining Section 124A and consultations are in the final stage.

Body

Background

• The section 124A of Indian Penal Code is a pre- independence provision, which covers sedition charges against government.
• Various verdicts by Indian Judiciary have led to re-interpretation and re-examination of ‘sedition’ in light of Article 19 of the Constitution.
• There has been an effort to strike a balance between right to free speech and expression and power of State to impose reasonable restrictions (Article 19(2)).
• In 1962, the Supreme Court in Kedar Nath Singh vs. State of Bihar upheld Section 124A and held that it struck a “correct balance” between fundamental rights and the need for public order.
• The court had significantly reduced the scope of Sedition law to only those cases where there is incitement to imminent violence towards overthrow of the state.
• Further, the Court held that it is not mere against government of the day but the institutions as symbol of state.

Should sedition be scrapped?

• Against democratic norms: It stifles the democratic and fundamental right of people to criticize the government.
• Inadequate capacity of State Machinery: The police might not have the “requisite” training to understand the consequences of imposing such a “stringent” provision.
• Possibility of Misuse: It has been used arbitrarily to curb dissent. In many cases the main targets have been writers, journalists, activists who question government policy and projects, and political dissenters.
• The draconian nature of this law as the crime is non-bailable, non-cognisable and punishment can extend for life—it has a strong deterrent effect on dissent even if it is not used.
• Used to gag press: The press should be protected so that it could bare the secrets of government and inform the people. Only a free and unrestrained press can effectively expose deception in government.

Arguments in favour of Section 124A

• Not really a draconian law: Now after the Supreme Court directions, its jurisdiction has been narrowed down. It can be applied only on grounds laid down by the court.
• Application is a part of reasonable restrictions: It is provided under the Article 19 (2).
• Does not really curb free speech: One can use any kind of strong language in criticism of the government without inviting sedition. However, such dissent should not be turned into some kind of persuasion to break the country.
• Threats to unity and integrity of nation due to presence of anti- national elements and divisive Forces such as naxals, separatists who are receiving support from inside and outside the country.
• Mere misuse cannot be a ground of repeal, rather provisions should be made where such misuse is eliminated.

Conclusion

The guidelines of the SC must be incorporated in Section 124A as well by amendment to IPC so that any ambiguity must be removed. Only those actions/words that directly result in the use of violence or incitement to violence should be termed seditious. The state police must be sufficiently guided as to where the section must be imposed and where it must not. Need to include provisions where the government can be penalized, if it misuses the section. This will ensure that section 124 A of IPC strikes a balance between security and smooth functioning of state with the fundamental right of freedom of speech and expression.

 

Explain the constitutional provisions related to the appointment, powers, and functions of the CAG.

Introduction

The Constitution of India provides for an independent office of the Comptroller and Auditor General of India (CAG) in chapter V under Part V. The CAG is mentioned in the Constitution of India under Article 148 – 151. He is the head of the Indian Audit and Accounts Department. He is the guardian of the public purse and controls the entire financial system of the country at both the levels- the centre and state. His duty is to uphold the Constitution of India and the laws of Parliament in the field of financial administration.

Body:

Powers: CAG derives its audit mandate from different sources like:

• Constitution (Articles 148 to 151)
• The Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971
• Important Judgments
• Instructions of Government of India
• Regulations on Audit & Accounts-2007

Duties:

• He audits the accounts related to all expenditure from the Consolidated Fund of India, Consolidated Fund of each state and UT having a legislative assembly.
• He audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.
• He audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and the state governments.
• He audits the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues; government companies; other corporations and bodies, when so required by related laws.

Functions:

• He audits all transactions of the Central and state governments related to debt, sinking funds, deposits, advances, suspense accounts and remittance business.
• He audits the accounts of any other authority when requested by the President or Governor e.g. Local bodies.
• He advises the President with regard to prescription of the form in which the accounts of the Centre and states shall be kept.
• He submits his audit reports relating to the accounts of the Centre to the President, who shall, in turn, place them before both the houses of Parliament.
• He submits his audit reports relating to the accounts of a State to the Governor, who shall, in turn, place them before the state legislature.
• He ascertains and certifies the net proceeds of any tax or duty and his certificate is final on the matter.
• He acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.
• He compiles and maintains the accounts of state governments. In 1976, he was relieved of his responsibilities with regard to the compilation and maintenance of accounts of the Central government due to separation of accounts from audit.
• He submits 3 audit reports to the President: audit report on appropriation accounts, audit report on finance accounts and audit report on public undertakings.

Responsibilities:

• His duty is to uphold the Constitution of India and laws of Parliament in the field of financial administration.
• The accountability of the executive (i.e., the council of ministers) to the Parliament in the sphere of financial administration is secured through audit reports of the CAG.
• The CAG is an agent of the Parliament and conducts an audit of expenditure on behalf of the Parliament.
• Therefore, he is responsible only to the Parliament.
• The CAG has more freedom with regard to the audit of expenditure than with regard to the audit of receipts, stores, and stock. ―Whereas in relation to expenditure he decides the scope of the audit and frames his own audit codes and manuals, he has to proceed with the approval of the executive government in relation to rules for the conduct of the other audits.
• The CAG has to ascertain whether money shown in the accounts as having been disbursed was legally available for and applicable to the service or the purpose to which they have been applied or charged and whether the expenditure conforms to the authority that governs it.
• In addition to this legal and regulatory audit, the CAG can also conduct the propriety audit, that is, he can look into the wisdom, faithfulness and economy ‘of government expenditure and comment on the wastefulness and extravagance of such expenditure.
• However, unlike the legal and regulatory audit, which is obligatory on the part of the CAG, the propriety audit is discretionary.

Conclusion:

CAG helps the parliament/state legislatures hold their respective governments accountable. He is one of the bulwarks of the democratic system of government in India. It is for these reasons Dr. B R Ambedkar said that the CAG shall be the most important Officer under the Constitution of India and his duties are far more important than the duties of even the judiciary.

---

General Studies – 3

---

 

5. Analyse the challenges faced by gig workers and propose measures to acknowledge their contributions and offer them social security. (250 words)

Difficulty level: Moderate

Reference: Indian Express , Insights on India

Introduction

According to the Oxford Internet Institute’s ‘Online Labor Index’, India leads the global gig economy with a 24% share of the online labor market. A gig economy is a free market system in which temporary positions are common and organizations contract with independent workers for short-term engagements Examples of gig employees in the workforce could include freelancers, independent contractors, project-based workers and temporary or part-time hires.

The Rajasthan government’s proposed Rajasthan Platform-based Gig Workers (Registration and Welfare) Bill, 2023, which will introduce a welfare board, is a step towards ensuring the welfare of gig workers. For Gig Workers, working conditions have become increasingly harsh, with gig workers not recognized as “workers” and lacking any social security or related benefits.

Body

Issues faced by gig economy workers

• This workforce has limited employment rights like minimum wages, health benefits, sick leaves or even retirement benefits to fall back on.
• Also, the payment is assured only on the completion of the project giving a sense of financial insecurity.
• The lack of any kind of protection was also deterring several talented workers against participating in the economy
• No stable and secure employment: These so-called jobs do not provide health insurance, nor pay for overtime with no sick leave.
• Lack of income security: There is no room for wage negotiations, and unions are absent. In the gig economy, job creation should be seen as the provision of livelihoods for entrepreneurs.
• Grievance redressal mechanism: For instance, when Ola and Uber started cutting back incentives, the drivers in Mumbai decided to go on ‘strike’.
  • But there was no clarity against whom they were striking. When the strikers agitated at a local transport commissioner’s office, he had to tell them that he did not regulate the hail-a-taxi business.
• The Central government recently passed the social security code which could cover gig worker as well.
• One of the key proposals includes the creation of a social security fund which is around 1 per cent of the aggregators’ annual turnover.
• This fund would be used primarily for the welfare of the unorganized and the gig workforce

 

Regulation of gig economy

• Constant upskilling and reskilling is required for such talents to stay industry relevant and market ready.
• A categorical clarification could ensure that social security measures are provided to workers without compromising the touted qualities of platform work.
• Countries must come together to set up a platform to extend their labour protection to the workforce who are working part-time in their country.
• Companies employing the workforce on a temporary basis should also be made responsible to contribute to their insurance and social obligation other than just their tax commitment.
• There is a need for a socio-legal acknowledgement of the heterogeneity of work in the gig economy, and the ascription of joint accountability to the State and platform companies for the delivery of social services.
• In the Code on Social Security, 2020, platform workers are now eligible for benefits. Actualising these benefits will depend on the political will at the Central and State government-levels and how unions elicit political support.

 

Way forward

• The government needs to come out with some more regulations to protect the workforce of the gig economy.
• Also, at present, there is no mechanism to address the issue of redress of disputes.
• It could also mean countries coming together to set up a platform to extend their labour protection to the workforce who are working part-time in their country.
• Companies employing the workforce on a temporary basis should also be made responsible to contribute to their insurance and social obligation other than just their tax commitment.

 

Conclusion

The scope of the gig economy in a country like India is enormous. The government needs to come out with a comprehensive legislation to empower and motivate many to take this path. The gig economy and its workforce cannot be overlooked when we talk about the future of employment.

With a population of over 1.3 billion, and a majority of them below the age of 35, relying on the “gig economy” is perhaps the only way to create employment for a large semi-skilled and unskilled workforce. Therefore, it is important to hand-hold this sector and help it grow. We need policies and processes that give clarity to the way the sector should function.

Value addition

Statistics

• Human resources firm TeamLease estimates that 13 lakh Indians joined the gig economy in the last half of 2018-19, registering a 30% growth compared to the first half of the fiscal year.
• Better Place, a digital platform that does background verification and skill development in the informal sector, estimates that of the 21 lakh jobs that will be created in the metros in 2019-20, 14 lakh will be in the gig economy.
• Food and e-commerce delivery will account for 8 lakh positions and drivers will account for nearly 6 lakh positions, says the report, based on 11 lakh profiles in over 1,000 companies.
• Delhi, Bengaluru and other metros are expected to be the biggest drivers of this sector. And two-thirds of this workforce will be under the age of 40.

 

Answer the following questions in 250 words(15 marks each):

---

General Studies – 1

---

 

6. Discuss the current status of water bodies in India, and what are the major issues affecting their distribution and utilization? (250 words)

Difficulty level: Moderate

Reference: The Hindu , Insights on India

Introduction

The Ministry of Jal Shakti recently released the report of its first-ever census of water bodies, revealing crucial insights into the country’s water resources. The census provides an extensive inventory of water sources in India, highlighting disparities between rural and urban areas and varying levels of encroachment.

Body

 

Background

• The census enumerated a total of 24,24,540 water bodies across the country, with West Bengal accounting for the most (7.47 lakh) and Sikkim the least (134).
• The report reveals that:

• • West Bengal has the highest number of ponds and reservoirs
    • The top district in terms of waterbodies is South 24 Parganas in West Bengal.
  • Andhra Pradesh has the highest number of tanks
  • Tamil Nadu has the highest number of lakes
  • Maharashtra leads in water conservation schemes

• The report highlights that 97.1% of the waterbodies are in rural areas, with only 2.9% in urban areas.
• Most of the waterbodies are ponds, followed by tanks, reservoirs, water conservation schemes, percolation tanks, check dams, lakes, and others.

Major issues affecting distribution and utilisation

• Encroachment: The census also collected data on the encroachment of waterbodies for the first time, revealing that 1.6% of all enumerated waterbodies are encroached, with 95.4% of encroachments in rural areas and the remaining 4.6% in urban areas.
  • A significant percentage of encroachments cover more than 75% of the waterbody’s area.
• Pollution and non-potable water: Water sources around the city are also polluted due to the direct discharge of domestic sewage into drains and canals.  
• Farming practices: Changes in farming patterns lead to consumption of more water for irrigation and also change the soil profile because of the use of fertilizers
  • The states ranked lowest like Uttar Pradesh, Haryana and Jharkhand – are home to almost half of India’s population along with the majority of its agricultural produce.
  • There is also a lack of interest in maintaining India’s traditional water harvesting structures.
• Climate change, leading to much lower precipitation during the winter months. As a result, the natural flow and recharge of water in the region has fallen sharply
• Unplanned development: Failure of State governments to check unplanned development and exploitation of water resources. There is no attempt at the central or state levels to manage water quantity and quality
• The vegetation pattern has changed, tree cover is shrinking and unscientific dumping of debris in water streams is rampant.
  • The debris blocks the natural course of water bodies.
  • Increasing number of tube wells resulting in depletion of groundwater.

Measures needed

• Ground water management is of utmost importance in urban areas where 50% water is drawn from ground. E.g.: Encroachment of flood plains, ground water recharge are areas to work with.
• Loss of green cover in urban areas and heat island effect are reasons for depleting water sources. e.g.: Urban forests needs to be created like in Aarey, Mumbai.
• The Ministry of Water Resources must reconfigure its relationship with other Ministries and Departments (Urban Development, Local Self-Government and Environment).
• Enhanced integration and coordination are needed through effective land and water zoning regulations that protect urban water bodies, groundwater sources, wetlands and green cover while simultaneously working to enhance waste water recycling and water recharge activities targeting aquifers and wells through rainwater harvesting.
• Focus: There is a need to shift focus from water supply infrastructure creation to water management, viz. service delivery. There is a need to pay focussed attention and subsequent planning for the efficient usage of fresh water bodies.
• Management: Managing the demand side of water management is crucial as India cannot increase the per capita availability of water. The country needs to have a specific plan for water-stressed states.
• Participation: The participation of individuals, NGOs and different communities in the water management process is quite missing.
  • The role of the Jal Shakti Ministry is thereby limited in handling the water crisis situation in the country until the coordination & participation of people is there for using the water prudently.

 

Conclusion

Primarily water is not valued in India. “People think it is free”. In order to meet the future urban/rural water challenges, there needs to be a shift in the way we manage our water systems. An Integrated Water Management approach must be adopted which involves managing freshwater, wastewater, and storm water, using an urban/rural area as the unit of management.

Value addition

Water stress in India

• India has 4 % of the world’s freshwater which has to cater to 17 % of the world’s population.
• Approximately 600 million people or roughly around 45 % of the population in India is facing high to severe water stress.
• As per the report, 21 Indian cities will run out of their main source of water i.e. groundwater by 2020.
• Nearly 40 % of the population will have absolutely no access to drinking water by 2030 and 6 % of India’s GDP will be lost by 2050 due to the water crisis.
• As per NITI Aayog report (CWMI) released in June 2019, India is facing the worst-ever water crisis in history.
• A disastrous water crisis has been creeping up on us for years. Water tables have declined precipitously, even by thousands of feet in some parts of Punjab, Haryana and Andhra Pradesh. Tanks and wells have gone dry.
• Some rivers have shrunk while other smaller ones have completely dried up.

 

---

General Studies – 2

---

 

7. What are the key aspects of India’s growing relations with Italy and France? Discuss the significance of the India-EU Strategic Partnership in this context, and highlight the areas where India and these countries could cooperate to mutual benefit. (250 words)

Difficulty level: Tough

Reference: India Express

Introduction

In an uncertain global business environment, India has been proactively engaging with the world for new economic opportunities. This is an opportune moment to deepen engagement with two long-time collaborators and close partners—Italy and France—with whom India shares historical ties and many mutual interests.

Body

Key aspects of India’s growing relations with Italy and France

• Trade: Both Italy and France are among India’s top trading partners, with India’s total trade recording around $25 billion during April-January of FY 2022–23.
• Diaspora: There is a large Indian diaspora in both countries and the presence of Italian and French companies in India has been historically strong.
• Investment: France is the eleventh-largest foreign investor in India while Italy is India’s seventeenth-largest contributor in terms of direct investments.
• High level delegation: India’s relationship has intensified with the two European Union members, with frequent exchanges and visits at the highest levels and constant collaborations across diverse sectors.
• FTA: With India and the EU progressing on the proposed Free Trade Agreement (FTA), the two large economies of the region will play an important role in future economic engagement with India.
• Defence: Defence has been a critical pillar in the India-France Strategic Partnership for many years. France has been a key supplier of military hardware such as the Rafale and Dassault aircraft and has supported India in the development of missile systems. There is great potential for enhancing collaboration in areas such as naval systems, unmanned systems and cybersecurity.

o             Likewise, India can take forward its defence cooperation with Italy and greatly benefit from the latter’s strong expertise in air defence, communication, surface/submarine naval systems, etc. The two can also enhance cooperation in co-production and design of military equipment.

• Green technology: Green infrastructure is an important area of cooperation.

o             France and Italy can share best practices and expertise in planning and implementing green infrastructure projects.

o             India’s renewable energy mission has made it the fourth-largest renewable energy market and the two European partners can collaborate in the green hydrogen mission, solar module manufacturing and energy efficiency, along with co-creation of green infrastructure projects.

• Luxury industry: France and Italy are leaders of the global luxury industry. India has one of the fastest-growing luxury markets in the world, with luxury and fashion goods such as fine dining, luxury travel, jewellery, luxury cars, etc witnessing rising demand and strong growth.

o             India can be a key market for both the countries and can also participate in their creative industries through design and innovation centres.

Significance of India-EU strategic partnership

• India recently concluded the fourth round of negotiations with the European Union on the India-EU comprehensive FTA, which saw progress on several fronts. A well-negotiated Agreement will significantly boost trade and investments between India and the EU, and further enhance India’s economic ties with France and Italy.
• The EU is India’s largest trading partner, accounting for 12.9% of India’s overall trade. Further the trade in services have almost tripled in last decade.
• Overall, the EU is the second largest investor in India, with €70 billion of cumulative FDI from April 2000 to March 2017, accounting for almost one quarter of all investments flows into India.
• EU and India remain close partners in the G20 and have developed a regular macroeconomic dialogue to exchange experience on economic policies and structural reforms.
• As EU seeks to move away from a global supply chain that is overly dependent on China, India can emerge as its most natural ally.

o             There is a significant untapped potential to expand India-EU bilateral trade relation through an FTA.

o             The FTA will deliver on enhancing India’s market access in key services.

o             For this to happen, regulatory barriers in cross-border supply as well as provision of services through temporary movement of professionals will need to be addressed.

 

Conclusion

Given the rapidly changing geopolitical scenario, strengthening the India-Italy and India-France partnerships holds great potential for expanding trade and investment opportunities across new frontiers. With the relevant ministers engaging strongly and businesses interacting with each other, a new pace for India’s economic relationship with Europe is being rapidly set.

 

8. SEBI plays a crucial role in regulating and developing the securities and commodity markets in India. However, it faces various challenges in its functioning, which need to be addressed to ensure that the market operates in a fair and transparent manner. Examine. (250 words)

Difficulty level: Moderate

Reference: The Hindu , Insights on India

Introduction

SEBI is essentially a statutory body of the Indian Government that was established on the 12th of April in 1992. It was introduced to promote transparency in the Indian investment market. Besides its headquarters in Mumbai, the establishment has several regional offices across the country including, New Delhi, Ahmedabad, Kolkata and Chennai.

It is entrusted with the task to regulate the functioning of the Indian capital market. The regulatory body lays focus on monitoring and regulating the securities market in India to safeguard the interest of investors and aims to inculcate a safe investment environment by implementing several rules and regulations as well as by formulating investment-related guidelines.

Body

Background

Barely two days before the expiry of a Supreme Court-stipulated deadline to probe allegations raised by Hindenburg Research about misdemeanours and violations of stock market norms by the Adani group, the Securities and Exchange Board of India (SEBI) has sought at least six more months from the Court to finalise its findings.

Power and functions of SEBI

Being a regulatory body, SEBI India has several powers to perform vital functions. The SEBI Act of 1992 carries a list of such powers vested in the regulatory body. The functions of SEBI make it an issuer of securities, protector of investors and traders and a financial mediator.

Powers

• SEBI is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties.
• By Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any money pooling scheme worth Rs. 100 cr. or more and attach assets in cases of non-compliance.
• SEBI Chairman has the authority to order “search and seizure operations”. SEBI board can also seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being investigated by it.
• SEBI performs the function of registration and regulation of the working of venture capital funds and collective investment schemes including mutual funds.
• It also works for promoting and regulating self-regulatory organizations and prohibiting fraudulent and unfair trade practices relating to securities markets.

Functions

• To protect the interests of Indian investors in the securities market. ,
• To promote the development and hassle-free functioning of the securities market.
•  To regulate the business operations of the securities market.
•  To serve as a platform for portfolio managers, bankers, stockbrokers, investment advisers, merchant bankers, registrars, share transfer agents and other people.
• To regulate the tasks entrusted on depositors, credit rating agencies, custodians of securities, foreign portfolio investors and other participants.
•  To educate investors about securities markets and their intermediaries.
• To prohibit fraudulent and unfair trade practices within the securities market and related to it.
•  To monitor company take-overs and acquisition of shares.
•  To keep the securities market efficient and up to date all the time through proper research and developmental tactics

Issues faced by SEBI in recent times

• In recent years SEBI’s role became more complex, the capital markets regulator is at a crossroads.
• There is excessive focus on regulation of market conduct and lesser emphasis on prudential regulation.
• SEBI’s statutory enforcement powers are greater than its counterparts in the US and the UK as it is armed with far greater power to inflict serious economic injury.
• It can impose serious restraints on economic activity, this is done based on suspicion, leaving it to those affected to shoulder the burden of disproving the suspicion, somewhat like preventive detention.
• Its legislative powers are near absolute as the SEBI Act grants wide discretion to make subordinate legislation.
• The component of prior consultation with the market and a system of review of regulations to see if they have met the articulated purpose is substantially missing. As a result, the fear of the regulator is widespread.
• Regulation, either rules or enforcement, is far from perfect, particularly in areas like insider trading.
• The Securities offering documents are extraordinarily bulky and have substantially been reduced to formal compliance rather than resulting in substantive disclosures of high quality.

Reforms needed

• There is need of an attitudinal change, indeed, hundreds of inputs about the market being full of crooks necessitating a crackdown and severe intervention would be received.
• The foremost objective of SEBI should be cleaning up the policy space in this area of the market.
• SEBI must give special attention to human resources and matters within the organization. SEBI must encourage lateral entry to draw the best talent.
• Alignment and fitment of senior employees upon merger of the Forward Markets Commission into Sebi remains an open area of work.
• Enforcement can be strengthened with continuous monitoring and improving market intelligence.
• India’s financial markets are still segmented. One regulator can’t be blamed for another’s failure when the remit over a financial product overlaps.

• • In this context a unified financial regulator makes eminent sense to remove both overlap and excluded boundaries.

Conclusion

While demanding greater financial autonomy, regulators must also show themselves to be accountable to the public by being more transparent about their financial affairs. SEBI must develop good market intelligence and pre-emptively stop the Adani like incidents from affecting trust in Indian capital market that will drive away investors.

---

General Studies – 3

---

 

9. “Understanding the Left-Wing Extremism (LWE) challenge in India requires political nuance, not just a security lens focused on violent incidents.” Elaborate (250 Words)

Difficulty level: Moderate

Reference: IE

Introduction

Left Wing Extremism (LWE) movement has its roots in the Naxalbari area West Bengal in the 1960’s.These Maoists insurgents started running a parallel system of administration in parts of central and Eastern India. They kill civilians, destroy public buildings and extract ransom from businessmen. In the recent years, however, LWE movement is showing decline, because of the shift in the approach of the successive Governments. The recent statement by Home Minister noted that the geographical influence of the Maoists has reduced from 96 districts in 10 States in 2010 to 41 now.

The Maoists have struck in Chhattisgarh after a lull of two years. Ten jawans of the District Reserve Guard, a special unit of Chhattisgarh police recruited locally, and their civilian driver were killed recently when the extremists triggered a blast using an improvised explosive device in Dantewada district. .

Body

Present state of LWE in India

• As per Home Ministry records, Maoist violence has come down by 77 per cent since 2010, and deaths of security forces and civilians have declined by 90 per cent.
• The number of Naxal-affected districts has come down from more than 200 in the early 2000s to 90, with violence mostly reported from 25 districts.
• The Maoist movement is hardly a force now in states such as Telangana, Andhra Pradesh, Jharkhand, Odisha and Bihar, once its strongholds.
• In recent years, security operations have turned the heat on the movement and impaired its ability to recruit and operate freely.
• With the emphasis on violence, the Maoist movement has also hollowed out as a political project and seems hardly in a position to expand its cadre base.
• At the same time, the state has not only expanded its security muscle but has also built both physical and social infrastructure in left-wing extremism-affected districts and worked on development projects.

Factors leading to Left-wing extremism

• Political Factors
  • Nature and apathy of the political system towards tribals remained one of the most important factors that led to such uprisings.
  • Inability of political authority in India to provide avenues for structural uplift to the deprived sections of society in the affected states.
  • Lack of political participation by the tribal community
• Economic Factors
  • Poverty and economic inequality and underdevelopment in the naxal affected regions.
  • Entry of mining companies in Tribal lands and forests, posing threat to the livelihood of the tribals.
  • Indigenous tribal population deprived of their lands, uprooted from their traditional source of livelihood.
  • The benefits of the resource exploitation are not passed on the tribals.
• Environmental Degradation
  • Environmental degradation in the form of destruction of land and water resources due to mining and industrial activates.
• Lack of basic facilities
  • Lack of basic facilities like education, freedom, sanitation and food.
  • The socially backward tribals form the major support base for Naxalites because of inequality, illiteracy and lack of opportunities.
• Discrimination against tribals
  • Poor implementation of laws prohibiting transfer of tribal land to non-tribals in the Fifth Schedule areas.
  • Non-regularisation of traditional land rights under FRA, 2006.
  • Hasty rejections of land grants to tribals.
• Displacement of people
  • Eviction from lands traditionally used by tribals.
  • Forced Displacementscaused by mining, irrigation and power projects without adequate arrangements for rehabilitation. As a result, livelihoods were lost.
  • Large scale land acquisition for ‘public purposes’ without appropriate compensationor rehabilitation

Measures needed by government to tackle the Maoist insurgency:

• Modernizing the police force: The scheme focuses on strengthening police infrastructure by construction of secure police stations, training centers, police housing (residential) and equipping police stations with required mobility, modern weaponry, communication equipment and forensic set-up etc.
  • On the administrative side, changes include separation of investigation from law and order, specialized wings for Social and Cyber Crimes are initiated in several states.
  • Various technological reforms are pushed including modernization of the control room, fast tracking Crime and Criminal Tracking Network and System (CCTNS), pushing for National Intelligence Grid (NATGRID) and pushing for incorporation of new technology into policing
• Social Integration: State Governments have surrender and rehabilitation policy, while the Central Government supplements the efforts of the State Governments through the Security Related Expenditure (SRE) Scheme for LWE affected States.
  • Additional incentives are given for surrendering with weapons/ammunition.
  • The surrenderers are also imparted vocational training with a monthly stipend for a maximum period of 36 months.
  • Skill Development: Skill Development in 34 Districts affected by Left Wing Extremism” under implementation from 2011-12 aims to establish ITIs and Skill Development Centers in LWE affected districts.
• Infrastructure Development: Road Connectivity, communication needs to be rapidly scaled up in LWE affected districts. g.: Mobile towers being set up in remote areas.
• Community policing improves interface with citizens and makes police more sensitive. E.g. (i) Janamaithri Suraksha Padhathi, Kerala (ii) Friends of Police Movement (FOP), Tamil Nadu (iii) Suraksha Setu – Safe City Surat Project
• Improve communication network: There should be sharing of information & knowledge to improve the functioning of police force.
• Better Surveillance and Monitoring with standardization, deployment and integration of private security surveillance system.

Way forward

• It is the belief of the Government of India that through a holistic approach focusing on development and security-related interventions, the LWE problem can be successfully tackled.
• States play a vital role in maintaining law and order. So, emphasis should be laid on the capacity-building and modernization of the local police forces. Local forces can efficiently and effectively neutralize the LWE organizations.
• The Kargil Review Committee (KRC) report noted that in wake of Internal security challenges that the country faces, the role and the tasks of the paramilitary forces have to be restructured particularly with reference to command and control and leadership functions.
• A purely security-driven approach fraught with human rights’ violations has only added to the alienation among the poor in these areas.
• The Union government and the States must continue to learn from successes such as the expansion of welfare and rights paradigms in limiting the movement and failures that have led to the continuing spiral of violence in select districts.
• The Maoists must be compelled to give up their armed struggle and this can only happen if the tribal people and civil society activists promoting peace are also empowered.

 

10. The Goods and Services Tax (GST) regime has had mixed results with its share of challenges and achievements. Critically examine the performance of the GST regime and suggest possible reforms. (250 words)

Difficulty level: Tough

Reference: Live Mint , Insights on India

Introduction

The Goods and Services Tax (GST) is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

GST is an indirect tax system which was rolled out on 1^st July 2017 The Comptroller and Auditor General of India (CAG) has pointed out lacunae in the GST regime, saying that system-validated input tax credit through invoice matching is not in place and a non-intrusive e-tax system still remains elusive.

Body

Performance of the GST regime

• Introduced as one of the biggest economic reforms by the incumbent government, the GST kicked off with the promise to streamline taxation and compliance burden.
• Based on the one nation one tax ideology, GST has helped in reducing the cascading effect of tax considerably.
• Also, multiplicity of compliances under various indirect taxes has been reduced.
• Over 63.9 lakh taxpayers migrated into the GST in July 2017. This number has more than doubled to over 1.38 crore taxpayers as of June 2022.
• The total gross collection for 2022-23 stands at ₹18.10 lakh crore and the average gross monthly collection for the full year is ₹1.51 lakh crore. The gross revenues in 2022-23 were 22% higher than that last year.
• Hence, introduction of GST in India has brought in efficiencies in indirect tax compliance, incidence and reduced the number of indirect tax authoritiesthat a taxpayer needed to interact with
• Another positive is the concept of e-invoicingwhich seeks to ensure greater transparency in supplier-receiver transactions.
• The introduction of e-way bill coupled with the crackdown on fake invoicinghas helped in bringing in a substantial portion of GST revenues, which were either being evaded or under-reported, in order.
• Over 53 lakh taxpayers and 67,000 transporters are enrolled on the e-way portal, generating, on average, 7.81 crore e-way bills per month. Since the launch of the system, a total of 292 crore e-way bills have been generated of which 42 per cent are for the inter-state transport of goods.
• GST has eliminated the tax arbitrage that existed among the states under the CST/VAT regime.
• Increase in logistic supply chain: With no such arbitrage under the IGST and with the e-way bills, the logistics supply chain efficiencies have increased manifold.
• In the pre-GST regime, on most items, the combined Centre and states rates were more than 31 per cent. However, under the GST, the rates of over 400 goods and 80 services have been reduced. The highest 28 per cent rate is restricted to sin and luxury items.
• Out of a total of 230 items which were in the 28 per cent slab, close to 200 have been shifted to the lower slabs.
• Special attention has been paid to the needs of the micro, small and medium enterprises (MSMEs), their tax and compliance burden be kept low.
• Equally, it was important to ensure that they remain integrated with the supply chains for the purpose of IT by:
  • The enhancement of the threshold exemption limit from Rs 20 lakh to Rs 40 lakh for goods.
  • Introduction of the quarterly returns and monthly payments (QRMP) scheme which has the potential to benefit 89 per cent of the taxpayers.

Various issues with respect to goods and services tax (GST) regime

• The breakdown of trust and cooperative federalism between states and the Union government:
  • It turned out to be prescient as GST failed to live up to its economic promises and states’ revenues were protected through this guarantee, despite Finance’s attempt to wriggle out of this commitment during the pandemic under the alibi of an “act of God”.
  • The Union government’s proclivity to levy and appropriate cess revenues for itself without sharing them with the states has lent credence to the wisdom of guaranteed compensation for states.
  • This guarantee is now set to expire..
• The recent Supreme Court’s judgment highlighting that the GST Council’s recommendations are not binding on the states:
  • The SC recently observed that it is in the national interest to have both cooperative and competitive federalism, and hence, the GST Council’s decisions are not binding on the states.
  • This means that states had and continue to have the right to either comply fully with the Council’s recommendations or modify them as they deem necessary.
  • This has opened the window for states to override the fundamental GST premise of a “one nation one tax”.
  • If pushed to a corner, states may now use the SC ruling as a shield.
• Expiry of the revenue guarantee that protected states’ revenues 
  • GST is too precariously perched to yank away the compensation guarantee for states.
  • the Union government is not desirous of extending the compensation guarantee.
• Difficulty in tax administration:
  • Goes against the canons of taxation.
  • A modern tax system should be fair, uncomplicated, transparent and easy to administer.
  • It must yield revenues sufficient to cover the cost of government services and public goods.
  • Lack of clarity on many rules is also leading to various litigation and different interpretations (of the same laws) by Advanced Ruling Authorities in different states.
• Complicated taxation structure:
  • A World Bank study published in May 2018 said that the Indian GST rate was the second highest among the 115 countries with a national value-added tax.
  • It was also the most complicated, with five main tax rates, several exemptions, a cess and a special rate for gold.
  • The multilateral lender said that only five countries had four or more non-zero tax rates—India, Italy, Pakistan, Luxembourg and Ghana.
  • Falling revenue amid disruptions caused by the Covid-19 pandemic has continuously delayed the reform, leaving a large number of items in high tax slabs.
• High compliance costs:are also arising because the prevalence of multiple tax rates implies a need to classify inputs and outputs based on the applicable tax rate. Along with the need to apply the correct rate, firms are required to match invoices between their outputs and inputs to be eligible for full input tax credit, which increases compliance costs further.
• GST Council meetings: the meetings of the GST Council are not as frequent as they were earlier, if the recent incidents are anything to go by, and it often end up with disagreement, fight and strong letters and statements. States have also accused the Centre of cornering a substantial portion of tax in forms of cess.
• There has been lack of coordination between the Department of Revenue, the Central Board of Indirect Taxes and Customs and the GST Network.

Way Forward

• The first target should be to move to at least a three-rate structure, a lower rate for essential goods, a relatively high rate for luxury goods, and a standard rate for the majority of goods and services.
• The next step would be simplifying the tax returns process.
• The scope for lowering the GST rate is umbilically linked to direct tax reform.
• A better way to make a tax system more just is by lowering regressive indirect tax rates while widening the base for progressive direct taxeson income and corporate profits.
• The government needs to establishGST Tribunals to reduce litigation timelines and the pressure on courts.
• The state authorities for Advance Ruling should ideally also have an independent jurist member, apart from a representative from the tax department.
• Many goods are still outside the GST net, which comes in the way of seamless flow of input tax credit. Key items outside its ambit are electricity, alcohol, petroleum goods and real estate. This aspect need to be looked into.
• Emulating the best practices. The GST in New Zealand, widely regarded as the most efficient in the world, has a single standard rate of 12.5 percent across all industry groups.
• The Fifteenth finance commission, in its latest report, has addressed many issues including large shortfall in collections as compared to original forecast, high volatility in collections, accumulation of large integrated GST credit, glitches in invoice and input tax matching, and delay in refunds.
• The Commission also observed that the continuing dependence of states on compensation from the central government for making up for the shortfall in revenue is a concern.
• While at the same time it suggested that the structural implications of GST for low consumption states need to be considered.

Conclusion

While the GST’s journey has given its stakeholders some causes to celebrate, it has also given moments of worry. But then, no transformation of the scale and complexity can be achieved without its share of hiccups and challenges. The process of evolution will take a few years more for the mammoth structural change to stabilize. The four-year journey of GST has been a roller-coaster ride for all stakeholders with equitable share of hits, misses and expectations. A work-in-progress in its transformational journey, GST suffers from several shortcomings which need to be resolved quickly, but its journey to ‘Good & Simple Tax’ is still quite long.

---

Join our Official Telegram Channel HERE

Subscribe to our YouTube Channel HERE

Join our Twitter Account HERE 

Follow our Instagram  Account HERE