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THE CONTEXT: The acronym ESG (Environmental, Social, and Governance) has become a defining mantra of our times, integrating business, government, and civil society efforts to manage environmental and social impacts alongside governance issues. Launched in a 2005 UN-led report, ESG has become central to the global corporate landscape, with sustainable investments comprising over a third of all invested assets worldwide. However, the lack of uniformity and inherent subjectivity in ESG evaluation criteria have raised concerns about its credibility and effectiveness.

ISSUES:

• Inherent Hypocrisy and Single Materiality: ESG ratings often focus on how environmental and social risks affect a company’s financial performance rather than the company’s impact on the environment and society. This approach, known as “single materiality,” is criticized for allowing companies to claim they promote universal welfare while primarily focusing on de-risking their financial performance.
• Lack of Uniformity and Subjectivity in ESG Evaluation: The absence of standardized metrics and the subjective nature of ESG evaluation criteria lead to inconsistencies in ratings. Different agencies often produce divergent ESG ratings for the same company, undermining the credibility of these assessments.
• Bundling of E, S, and G Elements: Combining environmental, social, and governance factors into a single metric can lead to paradoxical outcomes. For example, Tesla was excluded from the S&P Sustainability Index due to governance issues, while Exxon Mobil was retained despite its significant environmental impact. This bundling can obscure the actual performance of companies in specific areas.
• Double Materiality Standards: European regulators are moving towards “double materiality” standards, which consider both the impact of external factors on a company and the company’s impact on the environment and society. However, implementing these standards is complex and relies on uncertain assumptions, making it challenging to measure the external effects accurately.
• Potential for Avoiding Hard Decisions: Promoting ESG as a comprehensive solution may lead to complacency, with companies, investors, and governments avoiding difficult decisions to address critical issues like climate change and inequality. This critique suggests that ESG might be used as a pious talisman rather than a tool for meaningful change.
• Need for Unbundling ESG: There is a growing consensus that the ESG framework should be unbundled to focus more clearly on critical issues, particularly environmental impact and emissions reduction. Separating the E, S, and G components could improve comparability and ensure a sharper focus on essential areas like climate change mitigation.

THE WAY FORWARD:

• Standardization of ESG Metrics: Develop and adopt standardized ESG metrics and methodologies across rating agencies to ensure consistency and comparability. The International Financial Reporting Standards (IFRS) Foundation has established the International Sustainability Standards Board (ISSB) to create a global baseline for sustainability disclosures. This initiative aims to harmonize ESG reporting standards, making it easier for investors to compare companies’ ESG performance across different regions and industries.
• Emphasis on Double Materiality: The emphasis shifts from single materiality, which focuses on how ESG factors impact a company, to double materiality, which also considers the company’s impact on the environment and society. The European Union’s Corporate Sustainability Reporting Directive (CSRD) requires companies to report on financial materiality and environmental and social effects. This approach ensures that companies are accountable for their broader impact on society and the environment, not just their economic performance.
• Unbundling ESG Components: Separate the E (Environmental), S (Social), and G (Governance) components to allow for more focused and accurate assessments of each area. Creating distinct indices for environmental performance, such as a Carbon Emissions Index, and separate indices for social and governance factors would enable investors to target specific areas of interest, such as climate impact, without conflating them with unrelated social or governance issues.
• Enhanced Transparency and Disclosure: Increase transparency in ESG rating methodologies and require companies to provide more detailed and verifiable ESG data. The Task Force on Climate-related Financial Disclosures (TCFD) provides a framework for companies to disclose precise, comparable, and consistent information about the risks and opportunities climate change presents. This transparency helps investors make more informed decisions and holds companies accountable for their environmental impact.
• Focus on Emissions Reduction: Given the urgent need to address climate change, prioritize emissions reduction and environmental impact as the primary focus of ESG evaluations. Implement stricter regulations and incentives for companies to reduce their carbon footprint, such as carbon pricing mechanisms or subsidies for renewable energy adoption. Companies like Microsoft have committed to becoming carbon-negative by 2030, setting a benchmark for others to prioritize emissions reduction.

THE CONCLUSION:

In light of these concerns, there is a growing consensus that the ESG framework needs to be re-evaluated and potentially overhauled. By unbundling the ESG matrix and focusing more sharply on critical issues like emissions reduction, we can improve measurement accuracy and address humanity’s most pressing challenges. It is time to refine the ESG approach to ensure it promotes sustainable and responsible business practices.

UPSC PAST YEAR QUESTION:

Q. Should the pursuit of carbon credit and clean development mechanisms set up under UNFCCC be maintained even though there has been a massive slide in the value of carbon credit? Discuss India’s energy needs for economic growth. 2014

MAINS PRACTICE QUESTION:

Q. The ESG approach has faced criticism for its inherent deficiencies and lack of standardization. Discuss the evolution of ESG ratings, their current challenges, and the arguments for and against unbundling the ESG framework to focus more on environmental impact.

SOURCE:

https://indianexpress.com/article/opinion/editorials/with-a-star-for-a-mexican-street-food-stall-michelin-guide-finally-gets-good-food-9341350/

THE CONTEXT: The Supreme Court of India will, sooner or later, consider whether the Citizenship (Amendment) Act (CAA) and its rules can pass constitutional scrutiny. The recently promulgated CAA Rules are unclear about the fate of applicants whose requests for citizenship are turned down, which has aggravated concerns over the issue. There is also a fear that persons whose applications are disallowed might end up in detention centers.

ISSUES:

• Constitutional Scrutiny and Judicial Review: The Supreme Court of India must determine whether the CAA and its rules can pass constitutional scrutiny. It emphasizes the importance of solid judicial adjudication, especially for laws that may be unconstitutional or divisive.
• Unclear Fate of Applicants: The recently promulgated CAA Rules are unclear about the fate of applicants whose requests for citizenship are turned down. This ambiguity has raised concerns about the potential for these individuals to end up in detention centers.
• Dual Citizenship Concerns: Some petitioners have raised concerns about the possibility of dual citizenship for foreign applicants, which could create uncertainty about citizenship and go against the spirit of the Parent Act.
• Targeted Legislation and Legislative Malice: It is argued that the CAA is a form of targeted legislation that discriminates based on religion by excluding Muslims from the process of granting citizenship. This legislative malice calls for rigorous judicial scrutiny.
• Judicial Presumption of Validity: It criticizes the conventional presumption that laws made by Parliament are valid unless proven otherwise. It suggests that this presumption is outdated and inadequate for addressing contemporary challenges posed by populist regimes and motivated legislation.
• Need for Timely Judicial Intervention: The stress should be on the importance of timely judicial intervention to prevent the implementation of unconstitutional laws. Delays in judicial review can render the process ineffective, as seen in past cases like demonetization and the dilution of Kashmir’s special status.

THE WAY FORWARD:

• Clarify and Amend Dual Citizenship Provisions: Amend the CAA Rules to explicitly require applicants to renounce their previous citizenship before being granted Indian citizenship. This would align the rules with Section 9 of the Citizenship Act of 1955 and Article 9 of the Constitution, which prohibit dual citizenship.
• Inclusive Criteria for Persecuted Groups: Expand the criteria to include all persecuted groups regardless of religion. This would address the petitioners’ concerns about the arbitrary exclusion of certain groups and ensure that the law is not discriminatory. For instance, including Ahmadiyyas and Rohingyas would protect some of the most persecuted communities in Pakistan and Myanmar, respectively.
• Establish Clear Procedures for Rejected Applicants: Develop and implement procedures for handling rejected applications, ensuring these individuals are not placed in detention centers. This could include providing legal avenues for appeal and ensuring that rejected applicants are treated humanely and by international human rights standards.
• Judicial Review and Timely Intervention: The Supreme Court should adopt a more proactive approach to reviewing and potentially staying the implementation of laws that are challenged on constitutional grounds. This would prevent irreversible consequences and uphold the judiciary’s counter-majoritarian role. For example, issuing timely stays on contentious laws, as was done in the case of the farm laws, can prevent potential harm while the court deliberates.
• Comprehensive Refugee Policy: Formulate a comprehensive refugee policy that is inclusive and based on clear, non-discriminatory criteria. This policy should be aligned with international standards and ensure that all persecuted individuals, regardless of their religion or country of origin, are eligible for protection. This would address the fundamental flaws in the CAA and ensure that India’s refugee policy is fair and just.

THE CONCLUSION:

Regarding statutes that are glaringly unconstitutional or divisive, the process of judicial review should be firm, immediate, and unambiguous. The top court should be able to learn from its track record and understand the political consequences of its insensitivity during critical times. Delay often defeats the purpose of constitutional adjudication. Time is the essence of judicial review regarding malicious and unconstitutional laws.

UPSC PAST YEAR QUESTIONS:

Q.1 Constitutionally guaranteed judicial independence is a prerequisite of democracy. Comment. 2023

Q.2 Do you think India’s constitution does not accept the principle of strict separation of powers? Instead, it is based on the ‘checks and balances’ principle. Explain. 2019

Q.3 The Supreme Court of India checks the arbitrary power of the Parliament in amending the Constitution. Discuss critically. 2013

MAINS PRACTICE QUESTION:

Q.1 Discuss the constitutional issues raised by the petitioners against the CAA and its rules, focusing on the concerns regarding dual citizenship and the exclusion of specific communities. How should the Supreme Court balance the presumption of validity of parliamentary legislation with the need to protect constitutional principles in cases of alleged targeted legislation?

SOURCE:

https://www.thehindu.com/opinion/lead/critical-times-call-for-strong-judicial-adjudication/article68197194.ece

THE CONTEXT: The recent debate over an order demanding timely payments to MSMEs has once again revealed gaps in knowledge about their structure and everyday functioning. A government order, clearly in the interest of MSMEs, has led to unforeseen repercussions, marginalizing smaller enterprises in the short term. In this context, the importance of systematically understanding enterprises within the MSME ambit cannot be overemphasized.

 ISSUES:

• Revised Definition and Its Impact: The 2020 revision of the definition of micro-enterprises, which increased the turnover limit to Rs 5 crore, was intended to prevent firms from underreporting revenues to retain benefits. However, this change has led to a significant skew in micro-enterprise distribution, with a vast majority reporting much lower revenues.
• Disparity in Revenue Distribution: Data from various surveys (NSSO, ASI, GST) indicate that many micro-enterprises report annual revenues below the Rs 5 crore threshold. Specifically, many of these enterprises have revenues under Rs 50 lakh, highlighting a disparity within the micro-enterprise category.
• Lack of Systematic Data: Since 2016, systematic data on enterprises not registered under the Factories Act has been lacking. The Udyam registration data does not reveal annual revenues, making it difficult to understand these enterprises’ actual economic footprint.
• Borrowing Patterns: There is a notable difference in borrowing patterns between enterprises with revenues under Rs 50 lakh and those with revenues between Rs 50 lakh and Rs 5 crore. Enterprises in the higher revenue bracket are more likely to operate with borrowed capital, indicating different financial behaviors and needs within the micro-enterprise category.
• Formality of Employment: Employment within micro-enterprises is related to their revenue size. Smaller enterprises (with lower revenues) tend to employ more informal workers. At the same time, those at the higher end of the micro-enterprise category have a higher ratio of formal to informal workers.
• Need for Further Classification: To understand better and address the needs of micro-enterprises, a more nuanced classification within the category is needed. The current broad definition creates opacity and makes designing effective interventions tailored to their diverse realities challenging.

THE WAY FORWARD:

• Regular Revision and Granular Classification: Implement a more granular classification within the micro-enterprise category to better reflect revenue and operational scale diversity. This could involve creating sub-categories of one up to 12 lakhs, second 12 lakh to 50 lakhs, and third 50 lakhs to 5 crores. This approach would ensure that policies and support mechanisms are tailored to the specific needs of different segments within the micro-enterprise category, thereby addressing the distribution skew and providing more targeted assistance.
• Enhanced Data Collection and Transparency: Mandate regular and comprehensive data collection on MSMEs, including unregistered enterprises, through surveys and integration with GST and Udyam registration data. This data should be publicly accessible and updated annually. Accurate and up-to-date data would provide a clearer picture of the MSME landscape, enabling policymakers to design more effective interventions and support mechanisms. It would also help monitor policy impacts and make necessary adjustments.
• Tailored Financial Support and Credit Access: Develop specific financial products and schemes for micro-enterprise sub-categories. This could include lower interest rates, extended repayment periods, and collateral-free loans for smaller enterprises.
• Formalization and Worker Benefits: Introduce incentives for micro-enterprises to formalize their operations, such as tax benefits, simplified compliance procedures, and access to government schemes. Additionally, subsidies or support should be provided to formalize worker employment contracts.
• Capacity Building and Skill Development: Implement targeted capacity-building programs and skill development initiatives for micro-enterprises, focusing on financial literacy, digital skills, and business management. Partner with local NGOs and educational institutions to deliver these programs.

THE CONCLUSION:

The weakened understanding of how our economy’s largest enterprise category operates makes it challenging to design effective interventions. Reviewing the micro-enterprise category and further classifying enterprises within it is needed to reduce the opacity created by new definitions and the lack of systematic data.

UPSC PAST YEAR QUESTION:

Q. Faster economic growth requires an increased GDP share of the manufacturing sector, particularly of MSMEs. Comment on the present policies of the Government in this regard. 2023

MAINS PRACTICE QUESTION:

Q. The recent government order mandating timely payments to MSMEs has highlighted significant gaps in understanding the structure and functioning of these enterprises. Discuss the implications of the revised definition of micro-enterprises on the MSME sector, mainly focusing on the challenges faced by smaller enterprises.

SOURCE:

https://indianexpress.com/article/opinion/editorials/kharge-adhir-snub-tmc-games-voter-watching-9339423/

THE CONTEXT: The Generalised System of Preferences (GSP) stands as a cornerstone in international trade architecture, offering developed countries a mechanism to incentivize economic reform in developing nations through reduced tariffs. For nearly fifty years, this approach has served as the oldest and most extensive method of “aid for trade” within the framework of the World Trade Organization, embodying a commitment to fostering global economic development and cooperation.

ISSUES:

• Expiration and Renewal of GSP: The S. GSP program expired on December 31, 2020, and its renewal is pending Congressional action. The program’s periodic expiration and the need for legislative renewal create uncertainty and challenges in maintaining stable trade benefits for developing countries.
• Economic Impact of GSP: GSP is vital in providing market access for developing countries, supporting small businesses, and reducing tariff costs for American companies. It promotes economic development by eliminating duties on thousands of products from designated beneficiary countries.
• Bipartisan Support for GSP: The U.S. strongly supports renewing the GSP program. This support is driven by the program’s benefits in diversifying supply chains away from China, reducing tariff bills, and promoting economic reforms in beneficiary countries.
• S.-India Trade Relations: The U.S.-India trade relationship has grown significantly, with bilateral trade reaching around $200 billion. However, there is potential for further growth, and GSP renewal could facilitate broader trade negotiations between the two countries.
• Negotiation Challenges: Despite progress in trade dialogues, the U.S. has refrained from negotiating new Free Trade Agreements (FTAs). This limits the tools available to achieve ambitious trade results with India. GSP renewal could be an effective alternative to FTAs, providing a platform for negotiating trade benefits and regulatory reforms.
• Strategic Partnership and Trade Ambitions: The U.S. and India are strategic partners in the Indo-Pacific region, and they desire to enhance their trade relationship. GSP renewal could be a significant step in this direction, supporting higher trade ambitions and reinforcing their strategic partnership.

THE WAY FORWARD:

• Legislative Renewal Challenges: Strengthen bipartisan coalitions to advocate for GSP renewal, emphasizing its economic and strategic benefits. Launch campaigns to educate the public and stakeholders about GSP’s benefits, thereby increasing pressure on Congress to act.
• Market Access for Developing Countries: Implement temporary trade facilitation measures to support affected businesses until GSP is renewed. Encourage diversification of export markets and products to reduce dependency on GSP benefits.
• Alternatives to Chinese Imports: Foster strategic trade partnerships with other developing countries to create a robust network of alternative suppliers. Provide incentives for local production and sourcing to reduce dependency on imports.
• Promoting Labour and Environmental Reforms: Link other aid and trade benefits to implementing labor and environmental reforms. Invest in capacity-building initiatives to help developing countries meet GSP criteria independently.
• S.-India Trade Relationship: Pursue interim trade agreements focusing on key sectors like technology, pharmaceuticals, and agriculture. Increase high-level trade dialogues to maintain momentum and prepare for comprehensive negotiations once GSP is renewed.
• Regulatory Certainty and Ease of Doing Business: Implement regulatory reforms to simplify business processes and enhance transparency. Establish bilateral working groups to address specific regulatory and business environment issues.

THE CONCLUSION:

As the U.S.-India strategic partnership deepens, leveraging the GSP could significantly enhance their trade relationship, offering a pathway to more ambitious trade negotiations and economic collaboration. While GSP alone may not resolve all trade challenges, its renewal and effective utilization could symbolize a shared commitment to achieving greater economic integration and mutual prosperity, underscoring the importance of this time-tested trade tool in the modern era of global commerce.

UPSC PAST YEAR QUESTION:

Q. What introduces friction between India and the United States is that Washington can still not find a position in India’s global strategy that would satisfy India’s national self-esteem and ambitions.” Explain with suitable examples. 2019

MAINS PRACTICE QUESTION:

Q. Discuss the significance of the Generalized System of Preferences (GSP) in the context of the U.S.-India trade relationship. Evaluate the potential impacts of renewing the GSP on bilateral trade dynamics and the broader strategic partnership between the two countries.

SOURCE:

https://www.thehindu.com/opinion/op-ed/renew-the-generalised-system-of-preferences/article68193288.ece

THE CONTEXT: The recent heatwave has underscored the urgent risks posed by climate change, emphasizing the critical role of the Conference of Parties (COP) in addressing these challenges. With 2023 confirmed by the World Meteorological Organization as the warmest year on record, attention has turned to high-emission sectors like power and industry. India is under heightened scrutiny as the third-largest carbon emitter, particularly in energy, steel, cement, chemicals, and refineries.

ISSUES:

• Transition Risks: Entities face transition risks, including policy, regulatory, technology, market, reputation, and legal. Technological risk is highlighted as the major immediate challenge for entities voluntarily adopting green technology.
• Investment Needs: Achieving India’s climate goals will require substantial investments. Specifically, an estimated Rs 11-12 lakh crore is needed for renewable energy (RE) power investments until 2030, along with Rs 5-6 lakh crore for transmission infrastructure and storage capabilities.
• Renewable Energy Supply: Ensuring a round-the-clock supply from RE sources is crucial due to their intermittent nature. This can be achieved through hybrid RE projects (wind and solar) complemented with energy storage systems.
• Carbon Capture Utilisation and Storage (CCUS): The installation of CCUS is essential for hard-to-abate sectors like steel and cement. The cement sector will need significant CCUS capacity to reduce emissions, with an estimated capital cost of Rs 1,600-1,800 crore.
• Green Hydrogen Mission: The National Green Hydrogen Mission aims to use green hydrogen in refining, chemical, and fertilizer sectors, as well as in transport. The capital expenditure for this initiative is projected to be about Rs 8-9 lakh crore.
• Government Support: Government support is critical to accelerate the technology transition in high-carbon-emitting sectors. This support could include policy interventions, subsidies, duty exemptions, or tax benefits, potentially forming part of the policy agenda post-election.

THE WAY FORWARD:

• Enhanced Investment in Renewable Energy and Infrastructure: Increase Financial Support and Incentives: The government should improve financial support for renewable energy projects through subsidies, tax incentives, and low-interest loans. Germany has successfully increased its renewable energy capacity through feed-in tariffs and other financial incentives, making it a global leader in renewable energy adoption.
• Development and Implementation of Carbon Capture, Utilization, and Storage (CCUS) technologies: The government should incentivize the adoption of CCUS technologies in sectors like cement and steel. This can be achieved through grants, subsidies, and public-private partnerships to reduce the high capital costs associated with CCUS. Norway has invested heavily in CCUS technology, with the Longship project serving as a model for large-scale carbon capture and storage, demonstrating the feasibility and effectiveness of such technologies.
• Support for Green Hydrogen Initiatives: Increase funding and support for green hydrogen projects, including research and development, pilot projects, and infrastructure development. Encourage the use of green hydrogen in refining, chemical, and fertilizer sectors and transportation. The EU has set ambitious targets for green hydrogen production and use, providing substantial funding and creating a regulatory framework to support the hydrogen economy.
• Strengthening Energy Storage Solutions: Promote the development of hybrid renewable energy projects (combining wind and solar) with integrated energy storage systems to ensure a reliable and round-the-clock power supply. The world’s largest lithium-ion battery, located in South Australia, has proven the effectiveness of large-scale energy storage in stabilizing the grid and supporting renewable energy integration.
• Policy and Regulatory Reforms: Develop and enforce policies that mandate emission reductions, provide clear guidelines for green technology adoption, and offer incentives for compliance. This includes carbon pricing mechanisms, stricter emission standards, and support for green job creation. California’s cap-and-trade system has successfully reduced greenhouse gas emissions by setting a cap on total emissions and allowing companies to trade emission allowances, providing a financial incentive to reduce emissions.

THE CONCLUSION:

While several entities in high-carbon emitting sectors voluntarily adopt green practices, government support remains crucial to accelerate the technological transition in these hard-to-abate industries. Policy interventions, subsidies, duty exemptions, or tax benefits could significantly aid this transition. Such measures will likely be a key focus of the policy agenda following the upcoming elections.

UPSC PAST YEAR QUESTIONS:

Q.1 The adoption of electric vehicles is rapidly growing worldwide. How do electric cars contribute to reducing carbon emissions, and what are their key benefits compared to traditional combustion engine vehicles? 2023

Q.2 Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will shifting subsidies from fossil fuels to renewables help achieve the above objective? Explain. 2022

Q.3 Describe the significant outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are India’s commitments at this conference? 2021

MAINS PRACTICE QUESTION:

Q.1 Examine the role of government initiatives in facilitating India’s transition to green energy, particularly in high carbon-emitting sectors such as power, steel, and cement. Discuss the challenges these sectors face in adopting green technologies and the potential impact of government support on accelerating this transition.

SOURCE:

https://indianexpress.com/article/opinion/columns/ram-madhav-writes-what-the-indian-voter-should-be-keeping-in-mind-at-the-poll-booth-9336039/

THE CONTEXT: The fomenting of divisive politics will not help the Indian nation. With polling over in 379 of the 543 constituencies after the fourth phase in the general election, the parties’ electoral campaigns have reached the endpoint. Deep into the campaign calendar, though, the disconnect between the concerns of the electorate and campaign rhetoric especially that of BJP lynchpin and Prime Minister Narendra Modi remains, unfortunately, intact.

ISSUES:

• Disconnect Between Campaign Rhetoric and Voter Concerns: Voters have emphasized job creation, inflation, and development as primary issues. However, Prime Minister Narendra Modi’s campaign rhetoric has not focused on these concerns but on attacking the Opposition with various claims and accusations.
• Use of Divisive and Vituperative Campaign Tactics: Modi and some of his colleagues have taken vituperation as a campaigning device to new levels, using hate speech and dog whistles to rev up support from Hindutva adherents. This includes accusations against the Opposition for their silence on specific issues and their allies’ use of abusive language.
• Identity Politics and Caste Issues: Other parties, including Congress and its public face, such as Rahul Gandhi, have also engaged in identity politics, focusing on caste-related issues. This has been a significant part of the campaign rhetoric, even if not to the same extent as Modi’s tactics.
• North-South Political and Economic Dynamics: There is a notable tension between northern and southern political dynamics, especially with Modi’s rhetoric against southern parties. This is problematic given the greater economic integration between the North and South, with many northern working-class citizens migrating to the South for employment.
• Induction of Controversial Figures: The BJP’s induction of Manish Kashyap, a YouTube content creator jailed for spreading false news about attacks on Bihari migrants in Tamil Nadu, highlights the use of divisive politics. Such actions could exacerbate regional tensions and do not contribute to national unity.

THE WAY FORWARD:

• Enhanced Electoral Regulations on Campaign Rhetoric: Implement stricter regulations and oversight by the Election Commission to ensure campaign rhetoric focuses on policy issues and constructive debate rather than personal attacks, misinformation, or divisive messages. This could include guidelines for the content of speeches and advertisements, with penalties for violations.
• Promotion of Issue-Based Campaigning: Political parties and candidates should be encouraged to adopt issue-based campaigning, which focuses on presenting and debating policies and solutions to the country’s socio-economic challenges, such as job creation, inflation, and development. This can be facilitated through public debates, policy whitepapers, and voter education campaigns.
• Strengthening of Independent Media and Fact-Checking: Support the development of independent media outlets and fact-checking organizations that can provide unbiased coverage of electoral campaigns and verify politicians’ claims. This would help reduce the spread of misinformation and ensure the electorate is well-informed about the issues at stake.
• Encouraging Civic Engagement and Voter Education: Launch nationwide civic engagement and voter education programs to inform the electorate about the importance of focusing on policy issues rather than identity politics. These programs can also educate voters on critically evaluating the information they receive through social media and other channels.
• Fostering Dialogue and Reconciliation: Organize forums for dialogue and reconciliation between different political parties, communities, and regions to address and mitigate the divisions within the country. These forums can serve as platforms for discussing and finding common ground on socio-economic issues, federalism, and social justice, promoting national unity and cooperation.

THE CONCLUSION:

Mr. Modi should focus on the differences in emphasis on how to tackle socio-economic issues between the BJP and the INDIA bloc. But instead, his use of half-truths as a weapon to rile the Hindi heartland against southern parties is problematic at a time when there is greater north-south economic integration, with working-class citizens from the north migrating to the south for employment. Such actions could foment divisive politics that does not help the Indian nation.

UPSC PAST YEAR QUESTION:

Q. The Indian party system is passing through a transition phase full of contradictions and paradoxes.” Discuss. 2016

MAINS PRACTICE QUESTION:

Q. How can political campaigns be realigned to address the genuine issues the electorate faces, such as job creation, inflation, and development? Critically analyze the role of media in shaping electoral narratives and suggest measures to ensure a more issue-focused political discourse.

SOURCE:

https://www.thehindu.com/opinion/editorial/dangers-of-divisiveness-on-the-electoral-rhetoric-from-the-top-level/article68187177.ece

THE CONTEXT: In the past two decades, the Indian government has prioritized infrastructure-led development through various means, such as substantial investments in rail, road, and metro projects, Special Economic Zones (SEZ), National Investment Manufacturing Zones (NIMZ), and industrial parks across the country. A critical strategy has been the establishment of industrial corridors connecting central states to generate employment opportunities and boost economic growth. This marks the first time economic and urban planning are explicitly linked, where industrial corridors facilitate urbanization and drive economic development.

ISSUES:

• Governance and Institutional Coordination: There is significant fragmentation and a lack of coordination between various departments and institutions involved in urban and economic planning. This results in disjointed planning efforts that fail to address future developments’ needs adequately.
• Environmental and Resource Management: Development projects often overlook environmental impact and sustainability considerations. For instance, the water-scarce district of Tumakuru faces challenges in supporting large-scale industrial projects due to inadequate water resources.
• Capacity and Training of Local Institutions: Local institutions lack the capacity and training to manage the rapid urban transformation and the demands for infrastructure, housing, and resource utilization. This gap significantly burdens local authorities, often lacking financial and technical expertise.
• Economic and Urban Planning Disconnect: There is a disconnect between economic and industrial planning and urban planning practices. This separation leads to inadequate urban planning that does not account for the upcoming industrial developments, resulting in inefficiencies and missed opportunities for integrated growth.
• Impact on Local Communities and Livelihoods: Rapid industrialization and urbanization significantly affect local communities, including potential displacement, livelihood changes, and environmental degradation. These impacts are often not fully considered in the planning and implementation phases.
• Jurisdictional and Administrative Challenges: Establishing Special Purpose Vehicles (SPVs) and other new governing bodies can suspend local governing structures, creating confusion and inefficiencies in jurisdiction and responsibilities. This can hinder effective governance and the smooth implementation of projects.

THE WAY FORWARD:

• Integrated Urban and Economic Planning: Develop a comprehensive planning framework that integrates urban and economic development, ensuring that industrial and urban planning is not isolated. The Tokyo-Fukuoka Corridor in Japan successfully integrates urban and financial planning, creating a seamless development strategy that balances industrial growth with urban needs.
• Strengthening Local Governance and Institutional Capacities: Enhance the capacities of local governance institutions to manage rapid urban transitions and industrial growth effectively. The Ruhr Area in Germany underwent a significant transformation from an industrial region to a diversified economy. The success was partly due to strengthening local governance structures and establishing regional planning associations that coordinated development efforts across municipalities.
• Environmental Sustainability and Resource Management: To address the environmental challenges of industrial development, implement robust environmental sustainability practices and integrated water resource management. The Netherlands has implemented Integrated Water Resources Management (IWRM) to manage its water resources effectively, balancing industrial needs with ecological sustainability.
• Collaborative Governance Models: Establish collaborative governance models that involve multiple stakeholders, including state and local institutions, Special Purpose Vehicles (SPVs), and private sector partners. The UK’s Greater Manchester Combined Authority (GMCA) exemplifies a successful collaborative governance model. It brings together ten local authorities to coordinate economic development, transport, and housing strategies.
• Capacity Building and Training Programs: Implement capacity building and training programs for local government staff to effectively manage urban transformations and industrial growth. Singapore’s Urban Redevelopment Authority (URA) conducts regular training and capacity-building programs for its staff and other urban planning and development stakeholders.
• Inclusive and Participatory Planning Processes: Ensure inclusive and participatory planning processes that involve local communities and stakeholders in decision-making. The participatory planning approach used in Curitiba, Brazil, has been instrumental in its successful urban development. The city involves residents in planning, ensuring that development projects meet the community’s needs.

THE CONCLUSION:

Governments must effectively integrate urban and economic development across the states to enable efficient urban transitions. This requires coordinated efforts across multiple state and non-state actors, including state and local institutions, SPVs, and industrial stakeholders. Developing an urbanization policy is crucial for envisioning future urban settlements, allowing institutions to prepare accordingly.

UPSC PAST YEAR QUESTIONS:

Q.1 The rehabilitation of human settlements is a critical environmental impact that always attracts controversy while planning major projects. Discuss the measures suggested to mitigate this impact while proposing major developmental projects. 2016

Q.2 Define the concept of the carrying capacity of an ecosystem as relevant to the environment. Explain h2016.nderstanding this concept is vital while planning for the sustainable development of a region. 2019

Q.3 National urban transport policy emphasizes moving people instead of moving vehicles. Discuss critically the success of various government strategies in this regard. 2014

MAINS PRACTICE QUESTION:

Q.1 The Indian government has prioritized infrastructure-led development by establishing industrial corridors, such as the Chennai Bengaluru Industrial Corridor (CBIC). Discuss the impact of such corridors on urban and economic growth, particularly in the context of Karnataka. Highlight the challenges faced in planning and governance and suggest measures to address these issues for a smoother implementation of mega infrastructure projects.

SOURCE:

https://thewire.in/urban/can-industrial-corridors-balance-growth-with-urban-challenges

THE CONTEXT: The Supreme Court of India’s order invalidating the arrest and remand in News Click founder is much more than a technical outcome based on the failure of the Delhi police to furnish the grounds for his arrest in writing. It is also an indictment of the covert way the police sought to obtain his custody. It seems that invoking the Unlawful Activities (Prevention) Act against the web portal was not malign enough — the case looks entirely fictional. It establishes no overt act that can even be described as unlawful, much less a terrorist act.

ISSUES:

• Failure to Furnish Grounds of Arrest: The Supreme Court criticized the Delhi Police for not providing the grounds of arrest in writing the newsclick founder, a fundamental requirement under the principles of natural justice. This failure was a significant factor in the Court’s decision to invalidate the arrest and remand orders.
• Clandestine and Hasty Procedures: The Court condemned the “hot haste” and the covert manner in which the Delhi Police produced Purkayastha before the magistrate at 6 AM without informing his lawyer. This was seen as an attempt to circumvent due process and deny Purkayastha the opportunity to be represented by his chosen legal counsel.
• Violation of Legal and Constitutional Rights: The Court highlighted that the Delhi Police’s actions violated legal and constitutional rights, particularly the right to be informed of the grounds of arrest and legal representation. The Court emphasized that these rights are essential for a fair legal process.
• Application of Pankaj Bansal Judgment: The judgment extended the principle from the Pankaj Bansal case, which mandates that those arrested under the Prevention of Money Laundering Act (PMLA) must be given the grounds of their arrest in writing, to cases under the Unlawful Activities (Prevention) Act (UAPA). This sets a precedent for requiring written grounds of arrest in all cases, including those under UAPA.
• Questionable Allegations and Charges: The police’s allegations against Purkayastha, including claims of Chinese funding and attempts to undermine Indian democracy, were described as far-fetched and lacking substantive evidence. The Court’s scrutiny of these allegations suggests an adverse inference about the bona fides of the case, indicating that the charges may be politically motivated rather than based on solid evidence.

THE WAY FORWARD:

• Strict Adherence to Procedural Requirements: Ensure that law enforcement agencies strictly adhere to all procedural requirements, such as providing the grounds of arrest in writing. Provide regular training and workshops for police officers on the importance of procedural compliance. Establish a monitoring mechanism to oversee the adherence to procedural norms during arrests and remands.
• Judicial Oversight and Accountability: Enhance judicial oversight to prevent the misuse of laws like the UAPA and ensure accountability for any procedural lapses. Set up special judicial committees to review cases of arrests under stringent laws like the UAPA. Instigate penalties for law enforcement officers who violate procedural norms.
• Legal Representation and Rights Awareness: Guarantee that arrested individuals have immediate access to legal representation and are fully informed of their rights. Mandating the presence of a legal aid representative during the initial stages of arrest and remand and conducting awareness campaigns to educate the public about their legal rights during arrests.
• Transparent and Fair Remand Procedures: To ensure transparency and fairness and prevent clandestine practices, reform remand procedures to ensure transparency and fairness. Introduce digital recording of remand proceedings to ensure transparency. Remand hearings must be conducted during regular court hours unless in exceptional circumstances.
• Legislative Reforms: Amend existing laws to incorporate safeguards that prevent misuse and protect fundamental rights. Revising the UAPA and similar regulations to include explicit provisions for procedural safeguards and enacting new legislation that immediately provides arrest grounds in writing for all arrests, with no exceptions.

THE CONCLUSION:

The police recently filed a charge sheet in this case, which makes the outlandish claim that the Chinese government funded Mr. Purkayastha and that he and American millionaire Neville Roy Singham were involved in an alleged conspiracy to replace Indian democracy with a party-state system as in China. It speaks of their support to incite riots and protests in India and even funding terrorists. Given the grave, even if far-fetched, nature of the allegations against him, regular bail would have been difficult to come by. Therefore, it is salutary that the Court has treated the level of adherence to procedure — the need to furnish the grounds of arrest in this case — as holy.

UPSC PAST YEAR QUESTIONS:

Q.1 The Central Bureau of Investigation (CBI) jurisdiction regarding lodging an FIR and conducting a probe within a particular State is being questioned by various States. However, the power of the States to withhold consent to the CBI is not absolute. Explain concerning the federal character of India. 2021

Q.2 Money laundering seriously threatens a country’s economic sovereignty. What is its significance for India, and what steps must be taken to control this menace? 2013

MAINS PRACTICE QUESTION:

Q.1 ‘’Industrial corridors are the engines of urban economic growth in states’’. In light of this statements, examine the potential benefits and challenges of development corridors in India with suitable examples.

SOURCE:

https://www.thehindu.com/opinion/editorial/malign-motive-on-the-arrest-and-remand-of-newsclick-founder/article68182761.ece