DAILY CURRENT AFFAIRS (JUNE 8, 2022)

THE INDIAN POLITY AND GOVERNANCE

TAMIL NADU TOPS FOOD SAFETY INDEX

THE CONTEXT: Tamil Nadu topped the State Food Safety Index, followed by Gujarat and Maharashtra. Among the smaller States, Goa stood first, followed by Manipur and Sikkim. Among the Union Territories, Jammu and Kashmir, Delhi and Chandigarh secured first, second and third ranks.

THE EXPLANATION:

  • This was the fourth State Food Safety Index award, which was started in 2018-19 with the aim of creating a competitive and positive change in India’s food safety ecosystem. States that showed significant improvement were also felicitated.

State Food Safety Index (SFSI)

FSSAI has developed State Food Safety Index to measure the performance of states on various parameters of Food Safety.

This index is based on the performance of State/ UT on five significant parameters set by the Health Ministry, namely

  1. Human Resources and Institutional Data
  2. Compliance
  3. Food Testing – Infrastructure and Surveillance
  4. Training & Capacity Building and
  5. Consumer Empowerment

The Index is a dynamic quantitative and qualitative benchmarking model that provides an objective framework for evaluating food safety across all States/UTs.

THE NATIONAL AIR SPORTS POLICY

THE CONTEXT: The Ministry of Civil Aviation launched National Air Sport Policy 2022 (NASP 2022). NASP 2022 lays out the vision of making India as one of the top sports nations by 2030, by providing a safe, affordable, accessible, enjoyable and sustainable air sports ecosystem in India.

THE EXPLANATION:

  • Air sports, as the names suggests, encompasses various sports activities involving the medium of air.  These include sports like air-racing, aerobatics, aero modeling, hang gliding, paragliding, para motoring and skydiving etc. India has the potential to be among the leading nations in the world of air sports.  It has a large geographical expanse, diverse topography, and fair-weather conditions.
  • It has a large population, especially the youth.  It has a growing culture for adventure sports and aviation. The NASP 2022, is a step in this direction. It has been drafted based on the inputs received from policy makers, air sports practitioners and public at large and will ensure establishment of good quality of infrastructure, equipment, instructors and services.

The policy will cover the following air sports in India: –

  1. Aerobatics
  2. Aero modeling and model rocketry
  3. Amateur-built and experimental aircraft
  4. Ballooning
  5. Drones
  6. Gliding and powered gliding
  7. Hang gliding and powered hang gliding
  8. Parachuting (including skydiving, BASE  jumping and wing suits etc.)
  9. Paragliding and para motoring (including powered parachute trikes etc.)
  10. Powered aircraft (including ultra light, micro light and light sports aircraft etc.)
  11. Rotorcraft (including autogyro)

Under the new policy, there will be four-tier governance structure for air sports in India namely

  • Air Sports Federation of India (ASFI) as the apex governing body
  • National associations for individual air sports or a set of air sports, as appropriate
  • Regional (e.g. West/ South/ North East etc.) or State and Union Territory level units of the national air sports associations, as appropriate; and
  • District-level air sports associations, as appropriate

Key Objectives of NASP 2022:-

  1. Promote an air sports culture in the country
  2. Enable adoption of international good practices in safety including but not limited to, air sports infrastructure, equipment, operations, maintenance and training
  3. Develop a simple, stakeholder-friendly and effective governance structure
  4. Enhance participation and success of Indian sportspersons in global air sports events; and
  5. Promote design, development and manufacturing of air sports equipment in India in line with the Atmanirbhar Bharat Abhiyan.

THE ENVIRONMENT AND ECOLOGY

JOINT COUNT OF ELEPHANT AND BIG CATS

THE CONTEXT: The Central government will for the first time this year present a unified count of the tiger, leopard and elephant populations of the country, according to officials in the Union Environment Ministry.

THE EXPLANATION:

  • The tiger survey is usually held once in four years and elephants are counted once in five years. According to the most recent 2018-19 survey, there were 2,967 tigers in India. According to the last count in 2017, there were 29,964 elephants in India.

National Tiger Conservation Authority (NTCA):

  • Tiger survey in India is conducted by the NTCA, every four years.
  • NTCA is a statutory body, constituted under Wildlife (Protection) Act, 1972.
  • It was established in 2005 following the recommendation of the Tiger Task Force.
  • Objectives:
  • To provide statutory authority to Project Tiger so that compliance of its directives become legal.
  • To Foster accountability of Centre-State in management of Tiger Reserves.
  • To address livelihood interests of local people in areas surrounding Tiger Reserves.

Functions:

  • To approve the tiger conservation plan prepared by the state government.
  • To ensure that the tiger reserves and areas linking one protected area/tiger reserve with another are not diverted for ecologically unsustainable uses.
  • To facilitate and support the tiger reserve management in the state for biodiversity conservation.

Chairman: Union Minister of Environment, Forest and Climate Change

Latest Tiger Survey:

  • As per the latest Tiger Census conducted in 2018-19, tiger population in India has increased to 2967.
  • India accounts for about 70% of the world’s tiger population.

Elephant Census:

  • India does have an elephant census but this is largely a headcount of elephants in various elephant habitats conducted by state forest departments.
  • The last census was carried out in 2017 and concluded that India has 29,964 elephants.
  • According to current population estimates, there are about 50,000-60,000 Asian elephants in the world, with more than 60 per cent of them in India.
  • Asian elephants are listed as “Endangered” on the IUCN Red List of threatened species.
  • In 2020, 87 elephants and 359 people died in human-elephant conflicts.

Methods used for conducting census:

  • Tigers are counted by deploying camera traps, identifying individuals based on stripes, as well as statistical analysis.
  • The “head counting” method which is used for conducting elephant counting, has become obsolete and it frequently leads to double counting.

New method proposed:

  • In August 2021, the Union government had made public the new population estimation protocol to be adopted in the all-India elephant and tiger population survey in 2022.
  • Under the new method, Elephant numbers would be estimated by States based on DNA analysis of their dung droppings and statistical techniques.

 

The methodology will involve three phases:

  • ground surveys, analyses of remotely sensed data and camera traps.
  • Elephant populations using this method will be assessed for first time.
  • The procedure is routinely used for estimating tiger and leopard populations in India.

THE ECONOMIC DEVELOPMENT

RBI HIKES REPO RATE BY 50 BASIS POINTS

THE CONTEXT: The Monetary Policy Committee of Reserve Bank of India, which met from 6-8 June 2022, has unanimously decided to hike the Repo Rate by 50 basis points to 4.90 %. Consequently, Standing Deposit Facility Rate stands adjusted to 4.65% and Marginal Standing Facility rate and Bank Rate to 5.15%.

THE EXPLANATION:

  • The MPC has observed that the global economy continues to grapple with multi-decadal high inflation and slowing growth, persisting geopolitical tensions and sanctions, elevated prices of crude oil and other commodities and lingering COVID-19 related supply chain bottlenecks.
  • Economic indicators for April –May (2022) indicate a broadening of the recovery in economic activity in India. Urban demand is recovering and rural demand is gradually improving. Merchandise exports posted robust double-digit growth for the fifteenth month in a row during May while non-oil non-gold imports continued to expand at a healthy pace, pointing to recovery of domestic demand.

Real GDP growth for 2022-23 is estimated at 7.2%

  • According to NSO provisional estimates released on May 31, India’s GDP growth in 2021-22 is estimated at 8.7%, higher than pre-pandemic level.

Measures to benefit Cooperative Banks

  • Taking into account the increase in housing prices since the limits were last revised and considering the customer needs, it has been decided to increase the existing limits on individual housing loans by cooperative banks. Accordingly, the limits for Tier I /Tier II UCBs shall stand revised from ₹30 lakh/ ₹70 lakh to ₹60 lakh/ ₹140 lakh, respectively. As regards RCBs, the limits shall increase from ₹20 lakh to ₹50 lakh for RCBs with assessed net worth less than ₹100 crore; and from ₹30 lakh to ₹75 lakh for other RCBs.
  • Urban cooperative banks can now extend doorstep banking services to customers Will enable these banks to better meet the needs of their customers, especially senior citizens and differently abled persons-
  • Rural cooperative banks can now extend finance to commercial real estate (loans to residential housing projects) within existing aggregate housing finance limit of 5% of total assets

Enhancement of limit on e-mandate transactions

  • To further augment customer convenience and facilitate recurring payments like subscriptions, insurance premia and education fees of larger value, limit per transcation for e-mandate based recurring payments increased from ₹5,000 to ₹ 15,000.

Enhancing scope of UPI payment system.

  • Now, credit cards too can be linked with UPI platform, beginning with RuPay cards. This will provide additional convenience to users and enhance scope of digital payments.  UPI has become the most inclusive mode of payment in India. Currently, over 26 crore unique users and 5 crore merchants are onboarded on the UPI platform.

Glossary:

What is Monetary policy?

Monetary policy refers to the use of instruments under the control of the central bank to regulate the availability, cost and use of money and credit.

Goals of Monetary Policy

  1. Price Stability along with growth
  2. The agreement on Monetary Policy Framework between the Government and the Reserve Bank of India in 2015 defines the price stability objective explicitly in terms of the target for i.e.,

(a) below 6 percent by January 2016

(b) 4 percent (+/-) 2 percent for the financial year 2016-17 and all subsequent years.

Monetary Policy Committee:

The Monetary Policy Committee is a statutory and institutionalized framework under the Reserve Bank of India Act, 1934, for maintaining price stability, while keeping in mind the objective of growth. It is recommended by the Urjit Patel Committee in 2014.

Repo rate & Reverse repo rate?

  • Repo rate is the rate at which the central bank gives loans to commercial banks against government securities. Reverse repo rate is the interest that RBI pays to banks for the funds that the banks deposit with it.

Headline inflation:

  • It is a measure of the total inflation within an economy, including commodities such as food and energy prices (e.g., oil and gas), which tend to be much more volatile and prone to inflationary spikes.

CPI- Inflation:

Consumer Price Index or CPI is the measure of changes in the price level of a basket of consumer goods and services bought by households.

  • The CPI captures changes in price level at the consumer level.
  • Changes in prices at the producer level are tracked by the Wholesale Price Index (WPI).
  • CPI can capture the change in the prices of services which the WPI cannot.

Open Market Operations:

  • Open Market Operations refers to buying and selling of bonds issued by the Government in the open market.
  • One of the Quantitative Tools: OMO is one of the quantitative tools that RBI uses to smoothen the liquidity conditions through the year and minimise its impact on the interest rate and inflation rate levels.
  • Quantitative tools control the extent of the money supply by changing the Cash Reserve Ratio (CRR), or bank rate or open market operations.

 

THE EXCLUSIVE PRELIMS FACTS

ORGANISATION OF THE ISLAMIC COOPERATION

  • The Organisation of the Islamic Cooperation is the world’s second-largest multilateral body after the UN.
  • It was established by the First Islamic Summit Conference held in Morocco in September 1969.
  • It was known as the Organisation of Islamic Conference until 2011

Objective: 

  • To safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony among various people of the world.

Members:

  • As of now, 57 members, all of them are Islamic countries or Muslim majority members.
  • The Central African Republic, Russia, Thailand, Bosnia & Herzegovina, and the unrecognised Turkish Cypriot “state”, have Observer status.

India & OIC

  • India has the world’s second-largest Muslim community, and had been invited to the founding conference at Rabat in 1969, but was humiliatingly ejected at Pakistan’s behest.
  • In 2006, as India turned the economic corner and improved ties with the US, Saudi Arabia invited Delhi to join as an observer.
  • However, India refrained from joining citing that it did not want to join an organisation founded on religion. Secondly, there was the risk that improving bilateral relations with individual member states would come under pressure in a grouping, especially on issues such as Kashmir.
  • The OIC is mainly controlled by Saudi Arabia, but Pakistan, as the only Islamic country with nuclear weapons, has had a large say since its inception.

Changing terms:

  • After building close ties with powerful members such as UAE and Saudi Arabia, India has been confident of riding over any statement by the grouping.
  • India has consistently underlined that J&K is an “integral part of India and is a matter strictly internal to India”, and that the OIC has no locus standi on the issue.
  • In 2019, India made its maiden appearance at the OIC Foreign Ministers’ meeting, as a “guest of honour”.
  • The OIC includes two of India’s close neighbours, Bangladesh and Maldives. Both countries privately admit they do not want to complicate their bilateral ties with India on Kashmir.

Significance of OIC for India:

  • OIC’s growing economic and energy interdependence with India has become important in recent times.
  • Individually, India has good relations with almost all member nations. Ties with the UAE and Saudi Arabia.

THE DATA POINT

THE PRELIMS PRACTICE QUESTIONS

QUESTION FOR 8THJUNE2022

 

Q1. India is a member of which of the following groupings?

  1. NSG
  2. Wassenaar Arrangement
  3. Australia Group
  4. MTCR

Select the correct answer using the code given below:

              a) 1 and 2 only

b) 2 and 3 only

c) 2, 3 and 4 only

d) All of them

ANSWER FOR THE7THJUNE 2022

Answer: C

Explanation:

Organization of Islamic Cooperation (OIC)

  • It is the second-largest intergovernmental organization after the United Nations with a membership of 57 states.
  • It was established in September 1969.
  • Headquarters- Jeddah, Saudi Arabia.(therefore, statement C is incorrect)
  • It is the collective voice of the Muslim world.
  • India is not member of OIC.
  • Indian Foreign minister was invited as a guest of honour at 46th Session of the Council of Foreign Minister in 2019 (the 50th anniversary of OIC).



Day-221 | Daily MCQs | UPSC Prelims | CURRENT DEVELOPMENTS

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Day-220 | Daily MCQs | UPSC Prelims | GEOGRAPHY

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Day-219 | Daily MCQs | UPSC Prelims | INDIAN POLITY

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Day-218 | Daily MCQs | UPSC Prelims | MODERN INDIAN HISTORY

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DAILY CURRENT AFFAIRS (MAY 31,2022)

THE SOCIAL ISSUES

1. PM RELEASES BENEFITS FOR COVID-19 ORPHANS UNDER PM-CARES

THE CONTEXT: Pm releases benefits for children who lost both their parents or a primary caregiver between March 11 2020, and February 28 2022, under PM-CARES.

THE EXPLANATION:

  • A total of 4,439 children have been approved for the scheme. Children who lost both their parents or a primary caregiver between March 11, 2020, and February 28 2022 are eligible for the scheme.
  • The scheme offers a lumpsum amount of ₹10 lakh when children turn 23 years old as well as a monthly stipend from 18 years to 23 years. School-going children will also receive free education, textbooks, and uniforms at the nearest government schools.
  • Those in private schools may avail of fee reimbursement under norms for the Right to Education Act, 2005. Older students can also avail free education at residential schools such as Kasturba Gandhi Balika Vidyalaya, Netaji Subhash Chandra Bose, and Jawahar Navodaya Vidyalay. Students between Class 1 and Class 12 will also receive a scholarship of ₹20,000 per month from the Ministry of Social Justice and Empowerment.
  • Students can also avail of loans for professional courses and higher education for payment of interest.
  • Beneficiaries can also avail of health insurance coverage of ₹5 lakh at public and private hospitals under the Pradhan Mantri-Jan Aarogya Yojana scheme.

2. WHY CLIMATE CHANGE HITS WOMEN HARDER THAN MEN

 THE CONTEXT: Stronger weather extremes prove particularly damaging for women and worsen existing inequalities, scientists have shown.

THE EXPLANATION:

  • Weather extremes like these have in common is not just that burning fossil fuels makes them stronger — it’s that they hit men and women in wildly different ways.
  • In Bangladesh, nine times more women than men were killed when Cyclone Gorki battered coasts in 1991. In Australia, twice as many women as men wanted to evacuate to safety during devastating bushfires in 2009. In Kenya, women were last in line to receive food during a 2016 drought that left more than 2 million people hungry.
  • For decades policymakers have ignored warnings that rigid gender roles make people more vulnerable to extreme weather. Now — with the effects of climate change hammering at their doors — they are being forced to consider how to adapt in ways that reduce those inequalities rather than increasing them.
  • Climate change puts pressure on people without power, said Lisa Schipper, co-author of a landmark report from the Intergovernmental Panel on Climate Change (IPCC) published in February. “When you’re excluded from the decision-making club — as most women are in most countries — then you can’t make decisions about the resources you know you need.”
  • Women are less likely to own land but at greater risk of hunger when droughts hit.
  • People who are marginalized by society because of their gender are less able to adapt to climate change or recover from its effects, scientists concluded in a mega-review of the academic literature on climate impacts and adaptation. Women generally have less money, fewer opportunities and are not prioritized by policymakers, who are disproportionately men.
  • That, in turn, leaves them more vulnerable to further discrimination.
  • During droughts, women and girls are forced to walk further, and often in the dark to fetch water. That places them at greater risk of sexual violence. Longer distances also mean they make fewer trips, reducing the amount of water available to the family — and leaving even less for women in cultures where men are the first to eat and drink. The scarcity can also make menstrual hygiene harder and stop girls going to school.
  • In many countries women are not taught to swim, leaving them at greater risk from rising sea levels and coastal floods
  • Too much water can have similarly devastating effects. Floods that displace people or destroy toilets and make sanitation products scarce carry an extra burden in countries with strong taboos around menstruation. In Bangladesh, more than two-thirds of women working in factories lose six days of work per month because they lack safe places to change and dispose of menstrual pads, according to a study published in the journal Frontiers in Water in 2020.
  • Yet not all the effects of extreme weather on gender work in the same direction. In the US, men are twice as likely to die from heat-related illnesses than women because they are more likely to work outside on farms and building sites. During the deadly “Black Saturday” bushfires in Australia, men were more likely to stay to defend homes — and died in greater numbers as a result.
  • They were less likely to heed the advice of friends and family to leave for safety, according to a study published in the journal Geographical Research in 2016.
  • Scientists have conducted little research on the effects of climate change on transgender people but in countries where data exist, they are more likely to be homeless and suffer discrimination from health services. That could place them in greater danger from weather extremes from heat to storms.
  • Rigid gender roles increase pressure on men to stay in dangerous situations
  • In 2015, world leaders signed the Paris Agreement to try to limit global warming to 1.5 degrees Celsius above pre-industrial temperatures. They acknowledged they should follow a “gender-responsive” approach when adapting to climate change, guided by the best available science.
  • Policymakers could do this by transforming systems that perpetuate inequality and renegotiating unequal power dynamics, the IPCC found in its report on adaptation. That could mean sharing wealth and resources equally and ensuring fair representation in environmental decision-making.
  • While there are many examples of countries led by women that hampered climate policy — former German Chancellor Angela Merkel blocked reforms of the EU’s car industry, for instance — scientists say the broad trend is less polluting than under men.
  • Across society, women prioritize climate change in the ways they vote, work, shop, and get involved in their communities, the report found. They are more likely than men to become environmental activists and less likely to deny climate change.

THE POLITY AND GOVERNANCE

3. WHY IS NGT ENTERTAINING LETTERS FROM LAWMAKERS: SC

THE CONTEXT: The Supreme Court on Tuesday wondered why the National Green Tribunal is taking up letter petitions filed by lawmakers. A vacation bench of Justices B R Gavai and Hima Kohli said it thought the NGT jurisdiction was available to persons who can’t approach courts.

THE EXPLANATION:

  • The National Green Tribunal is also entertaining letters from Members of Parliament. We thought that this jurisdiction was available for have-nots and persons who can’t approach courts. Ordinary citizens and not legislators, the bench observed.
  • The observation came while hearing the Andhra Pradesh government’s appeal against an NGT order halting construction work at Rushikonda Hills in Visakhapatnam.
  • At this juncture, the bench asked if he has a copy of the judgment which says NGT is a tribunal subordinate to the high court under Article 227 of the Constitution.
  • The National Green Tribunal was established under the National Green Tribunal Act 2010 for effective and expeditious disposal of cases relating to environmental protection.

4. WARNING THAT WASN’T: UIDAI WAS RIGHT TO FLAG INDISCRIMINATE COLLECTION OF AADHAAR DATA. IT SHOULD MANDATE STRONGER MEASURES

THE CONTEXT: A UIDAI advisory warning citizens of the misuse of Aadhaar card photocopies and e-copies by unlicensed entities went viral across the country.

THE EXPLANATION:

  • GoI withdrew the note and asked cardholders to exercise “normal prudence” while sharing Aadhaar numbers. However, specific concerns raised by the UIDAI advisory weren’t addressed. Officials seemed more worried about the “possibility for misinterpretation” and stressed that the Aadhaar ecosystem had adequate safety features.
  • Many private agencies demand and collect Aadhaar card photocopies even when they are not licensed to do online authentication. Digital photo-editing tools can easily manipulate images and text on Aadhaar card copies. However, such fraud can’t evade authentication checks against UIDAI’s central identity data repository.
  • Still, it is a fraud. But one that has a solution. UIDAI allows offline verification-seeking entities (OVSE), which don’t have to be accredited, to scan the QR code on Aadhaar cards to check the identity and demographic information of a person. And Section 8A (4) of the Aadhaar Act 2016 stipulates that no OVSE shall “collect, use or store” Aadhaar numbers or biometric information of any individual.
  • Perhaps recognizing the scale of unauthorized storage, UIDAI regulations in February mandated that any organization seeking to check identities offline should scan the QR code on Aadhaar cards, verify the authority’s digital signature, and tally identity information encoded by the QR code.
  • UIDAI was therefore not wrong in suggesting caution in the press release that was withdrawn. Such digital identity scanning should certainly replace the collection of photocopies. And UIDAI should perhaps penalize unauthorized storage.
  • An additional threat is the collection of biometric information like fingerprints by employers, lenders, and state agencies. Unlike UIDAI, these smaller entities cannot boast of robust security protocols. Theft of such poorly stored biometric data is undermining Aadhaar-enabled payment systems.
  • Telangana police recently warned users who lost money they should disable their biometric link to Aadhaar. These crimes require GoI to strongly regulate biometric and Aadhaar data collection by private entities.
  • The crux of the problem is that governments have been too permissive about private and public entities seeking and collecting personal data. The Supreme Court had barred commercial entities from demanding Aadhaar.
  • The flipside was that many people in a document-poor country didn’t have any means to prove identity when, say, applying for a SIM card. GoI specifically allowed telecom companies to use Aadhaar for e-KYC. But restrictions should be put in for many other entities demanding and storing Aadhaar.

THE INTERNATIONAL RELATIONS

5. DOSES OF STATECRAFT TO MEET INDIA’S CHALLENGES

THE CONTEXT: The war in Europe, involving Russia and Ukraine — with Kyiv being backed by western powers and the North Atlantic Treaty Organization (NATO) — and the political turmoils in South Asia dominate newspaper headlines today. This has pushed the debate on India’s many internal security problems on the backburner. This is unfortunate, for many long-standing security problems have a propensity to wax and wane and seldom seem to go away.

THE EXPLANATION:

  • While the country’s security agencies do maintain a tight vigil, what is seldom realized is that security agencies can only deal with the immediate threat. Long-term solutions require the use of statecraft. Additional doses of security whenever a situation arises are at best a temporary solution. This does not amount to problem-solving.
  • To change the mindsets of both the authorities and those challenging the existing order, it may be first necessary to admit that more and more security has its limitations. The next step is even harder, viz., to admit that the forces threatening the state have lately become nimbler in adopting new technologies and modes of warfare.
  • In many countries, both the authorities and security agencies are beginning to acknowledge the importance of resorting to statecraft as a vital adjunct to the role played by the security agencies. Statecraft involves fine-grained comprehension of inherent problems; also an ability to quickly respond to political challenges.
  • It further involves strengthening the ability to exploit opportunities as they arise and display a degree of political nimbleness rather than leaving everything to the security agencies. In short, it entails a shift from reposing all faith in the security establishment to putting equal emphasis on the implementation of policies and programmes. In effect, it shifts the emphasis to formulating strategies that favor political deftness, strength, and agility, after the initial phase.
  • Two prime examples which provide grist to the above proposition are the prevailing situation in Jammu and Kashmir and the continuing problem involving Maoists. While Jammu and Kashmir have been a troubled region ever since 1947, the situation has metamorphosed over the years — at times tending to become extremely violent followed by spells of near normalcy. No proper solution has emerged to a long-standing problem.
  • While problems seem to be mounting for the security establishment in Jammu and Kashmir as of now, across several heartland states of India, the police face a different kind of threat. Of all the strands of the militancy in India, Maoists or Naxalites stand apart as being the only ones with strong ideological underpinnings. Notwithstanding its ideological veneer, Maoists/Naxalites nevertheless tend to indulge in mindless violence carrying out brutal killings.
  • The original Maoist leaders in Bengal, Andhra Pradesh and Kerala (in the late 1960s and early 1970s) who were inspired by Charu Mazumdar who talked of a ‘Spring Thunder over India’ (followed by his claim to have lit a spark to initiate a ‘prairie fire’) have since been replaced by lesser leaders with few ideological pretensions.
  • The need to use statecraft to deal with quite a few other internal security problems — some of which have lain dormant for years — is also becoming more manifest by the day. In this category may be included the resurgence of militancy by pro-Khalistan groups in Punjab, which could spill over into Haryana and Himachal Pradesh.
  • The recent discovery of ‘sleeper cells’ in Punjab clearly indicates the potential for the revival of a pro-Khalistan movement — which once ravaged large parts of Punjab. While the pro-Khalistani sentiment is present in pockets in the United Kingdom and in Europe, it has not been in evidence in India for some time. Hence, the recent attack by pro-Khalistan elements on the headquarters of the Punjab Police Intelligence wing in Mohali was a rude shock to the security establishment.
  • The incident appeared to be like a warning shot ‘across the bow’ by the Babbar Khalsa International, which has the backing of Pakistan’s Inter-Services Intelligence — a reminder that militancy in Punjab has not been permanently extinguished, and will need deft statecraft to nip it in the bud.
  • In India’s northeast, more specifically in the States of Assam and Nagaland, there are again incipient signs of trouble which, for the present, may need the use of statecraft rather than the security forces. In Assam, the United Liberation Front of Asom–Independent (ULFA-I) is trying to revive its activities after a long spell of hibernation.
  • Currently, the ULFA-I operates from Myanmar, and its fortunes have been on a steady decline in the past decade. However, latest reports indicate that ULFA-I has embarked on a recruitment drive which will need to be curbed before matters get out of hand. Likewise in Nagaland, where the National Socialist Council of Nagalim (I-M) has recently initiated a fresh push for a solution of the ‘Naga political issue’, the situation is pregnant with serious possibilities. Both instances merit the use of statecraft so that the situation does not get out of hand.
  • In the South, intelligence and police officials appear concerned about a likely revival of Liberation Tigers of Tamil Eelam (LTTE)-sponsored activities in Tamil Nadu. This stems from a possible revival of LTTE-sponsored militancy in Sri Lanka following the recent economic crises and uncertainty there. Security agencies in India believe that an attempt could be made to reach out to elements in Tamil Nadu to revive the spirit of the 1980s. This situation again needs deft statecraft to prevent a resurgence of the past.
  • Hence, it should be evident that statecraft is critical in finding lasting solutions to a host of problems that continue to afflict India. India faces several challenges today, but the answer to this is neither grand strategy nor grand simplifications nor resort to higher doses of security. India must navigate its way through a complex set of circumstances and situations, and suitably manage crises that might otherwise undermine peace and stability.
  • A properly structured set of policies, having liberal doses of statecraft in addition to a proper set of security measures, is the best answer to India’s needs, now and in the future.

THE ECONOMIC DEVELOPMENT

6. INDIA’S CHANGING GOAL POSTS OVER COAL

THE CONTEXT: In April, Finance Minister Nirmala Sitharaman said India’s transition away from coal as a fuel for power would be hampered by the Russia-Ukraine war.

THE EXPLANATION:

  • The threat of global warming looms over the planet, promising to bring about unprecedented natural calamities.
  • An effective way to keep the danger at bay is to cut the use of fossil fuels — coal, natural gas, and oil. About 80% of the world’s energy requirements are met by these three fuels. They have likely brought on the climate crisis we now face, as they trigger the emission of carbon dioxide.
  • However, the worst culprit of them all is coal, which emits nearly twice as much carbon dioxide as natural gas and about 60% more than oil, on a kilogram-to-kilogram comparison.
  • Combusting coal also leaves behind partially-burnt carbon particles that feed pollution and trigger respiratory disorders. The consequence of these chemical reactions gains great significance because, the power sector in India accounts for 49% of total carbon dioxide emissions, compared with the global average of 41%.

What is the extent of India’s dependence on coal?

  • As of February 2022, the installed capacity for coal-based power generation across the country was 2.04 lakh megawatt (MW). This accounts for about 51.5% of power from all sources. This compares with about 25,000 MW of capacity based on natural gas as fuel, or a mere 6.3% of all installed capacity. Renewable power accounted for 1.06 lakh MW or 27%.
  • Coal-based power stations are retired periodically which happens all the time. But is not fast enough nor are new additions being halted. And with good reason – coal is still inexpensive compared with other sources of energy.
  • For FY20, for example, India added 6,765 MW power capacity based on coal as fuel. But only 2,335 MW was retired. According to the IEA’s Coal Report 2021, India’s coal consumption will increase at an average annual rate of 3.9% to 1.18 billion tonnes in 2024.
  • Natural gas has been dubbed as the transition fuel in India’s plans to move away from coal. The international cost of natural gas has zoomed in the recent past from a level that was considered already too high to be financially viable. On May 17, 2022, the price per MMBTU of gas was ₹1,425, compared with ₹500 in April 2021.
  • Even back in November last, well before the war made things difficult, the government put in place a committee to ensure that natural gas prices remained stable. Of the 25,000 MW of gas-based power plants, about 14,000 MW remains stranded, or idle, because they are financially unviable.
  • While renewable energy sources are cheaper than coal, their ability to generate power consistently is subject to the whims of nature — the wind and the Sun. Coal can give you power on demand. Storage technologies are still not mature enough to help renewable energy sources become reliable generators of power.

Is there a coal availability crisis that is exacerbating our problems?

  • It appears that the pent-up demand returning in the economy which was in a pandemic-induced stupor for a while has caught policymakers off guard. From having asked States only recently to stop importing coal, the power Ministry urged States earlier this month to step up coal imports as the private sector would take till about 2025 to produce significant amounts of coal.

THE PRELIMS PRACTICE QUESTIONS

QUESTION FOR 31ST MAY 2022

Q1. Which of the following is incorrect about PM CARES scheme for children orphaned by the COVID-19 pandemic?

  1. To avail the scheme, a child should not have turned 18 on the date of death of his or her parents.
  2. It provides lump sum amount of ₹15 lakh when a beneficiary turns 23 years old.
  3. All beneficiary children will be enrolled as a beneficiary under Ayushman Bharat Scheme (PM-JAY) with a health insurance cover of Rs. 5 lakhs.
  4. The Ministry of Women and Child Development shall be the nodal Ministry for the execution of the scheme at the central level.

ANSWER FOR THE 30th MAY

Answer: D

Explanation:

  • Statement 1 is correct: The U.S. surpassed China to become India’s top trading partner in 2021-22.
  • Statement 2 is correct: According to data from the Commerce Ministry, the bilateral trade between the U.S. and India stood at $119.42 billion in 2021-22 as against $80.51 billion in 2020-21. Exports to the U.S. increased to $76.11 billion in 2021-22 from $51.62 billion in the previous fiscal year, while imports rose to $43.31 billion from about $29 billion.
  • Statement 3 is correct: During 2021-22, India’s two-way commerce with China aggregated at $115.42 billion as compared to $86.4 billion in 2020-21, the data showed. Exports to China marginally increased to $21.25 billion last fiscal year from $21.18 billion in 2020- 21, while imports jumped to $94.16 billion from about $65.21 billion in 2020-21.



Day-214 | Daily MCQs | UPSC Prelims | INDIAN POLITY

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Day-213 | Daily MCQs | UPSC Prelims | MODERN INDIAN HISTORY

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DAILY CURRENT AFFAIRS (MAY 26,2022)

THE SOCIAL ISSUES

1. WHY ARE TRIBALS OF RAJASTHAN AND GUJARAT DEMANDING A SEPARATE STATE OF BHIL PRADESH?

THE CONTEXT: The Bharatiya Tribal Party (BTP), a political party based in Gujarat, envisions Bhil Pradesh as a separate state carved out of 39 districts spread over four states: 16 in Gujarat, 10 in Rajasthan, seven in Madhya Pradesh, and six in Maharashtra.

THE EXPLANATION:

What is ‘Bhil Pradesh’?

  • The Bhartiya Tribal Party (BTP), a political party based in Gujarat, envisions Bhil Pradesh as a separate state carved out of 39 districts spread over four states: 16 in Gujarat, 10 in Rajasthan, seven in Madhya Pradesh, and six in Maharashtra.
  • Bhil social reformer and spiritual leader Govind Guru first raised the demand for a separate state for tribals back in 1913 after the Mangarh massacre. The massacre, which took place six years before Jallianwala Bagh and is sometimes referred to as the “Adivasi Jallianwala”, saw hundreds of Bhil tribals being killed by British forces on November 17, 1913, in the hills of Mangarh on the border of Rajasthan and Gujarat. Post-Independence, the demand for Bhil Pradesh was raised repeatedly.

But why do the tribals want a separate state of their own?

  • Earlier, the Dungarpur, Banswara, Udaipur region in Rajasthan and Gujarat, MP, etc. was part of a single entity. But post-Independence, the tribal majority regions were divided by the political parties, so that the tribals don’t organise and unite.
  • over the decades, several Union governments brought various “laws, benefits, schemes, and committee reports” on tribals, but went slow on their execution and implementation.
  • “There were various measures such as the protection of tribal interests through the Fifth Schedule under Article 244(1) of the Constitution, but most of these were mere assurances by the ruling party,
  • The Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996. “The law was enacted in 1996. The Rajasthan government adopted the law in 1999 and came out with its Rules in 2011. But even in my village Paldeval in Dungarpur, 25 years on, people don’t even know about the law. Even the MLAs and ministers don’t have proper knowledge about the law.”

 

2. SUPREME COURT RECOGNISES SEX WORK AS A ‘PROFESSION’

THE CONTEXT: The apex court says police should neither interfere nor take criminal action against adult and consenting sex workers.

THE EXPLANATION:

  • In a significant order recognising sex work as a “profession” whose practitioners are entitled to dignity and equal protection under law, the Supreme Court has directed that police should neither interfere nor take criminal action against adult and consenting sex workers.
  • “It need not be gainsaid that notwithstanding the profession, every individual in this country has a right to a dignified life under Article 21 of the Constitution,” the court observed.
  • “Sex workers are entitled to equal protection of the law. Criminal law must apply equally in all cases, on the basis of ‘age’ and ‘consent’. When it is clear that the sex worker is an adult and is participating with consent, the police must refrain from interfering or taking any criminal action,” a three-judge Bench led by Justice L. Nageswara Rao directed in an order which was passed after invoking special powers under Article 142 of the Constitution.
  • The Bench ordered that sex workers should not be “arrested or penalised or harassed or victimised” whenever there is a raid on any brothel, “since voluntary sex work is not illegal and only running the brothel is unlawful”.
  • A child of a sex worker should not be separated from the mother merely on the ground that she is in the sex trade, the court held. “Basic protection of human decency and dignity extends to sex workers and their children,” the court noted.
  • Further, if a minor is found living in a brothel or with sex workers, it should not be presumed that the child was trafficked.
  • “In case the sex worker claims that he/she is her son/daughter, tests can be done to determine if the claim is correct and if so, the minor should not be forcibly separated,” the court-ordered.
  • The court ordered the police to not discriminate against sex workers who lodge a criminal complaint, especially if the offence committed against them is of a sexual nature. Sex workers who are victims of sexual assault should be provided every facility including immediate medico-legal care.
  • The Centre and States must involve sex workers or their representatives to reform laws, the court suggested.

 

THE POLITY AND GOVERNANCE

3. INDIA MUST SHIFT THE DISCOURSE ON ABORTION RIGHTS

THE CONTEXT: It is not just a family planning and maternal health issue, but also a sexual health and reproductive rights issue

THE EXPLANATION:

  • Our public health journeys started with witnessing maternal deaths in India. One of us, on her first clinical rotation, saw a woman die of sepsis, and infection in the blood, due to unsafe backstreet abortion. And the other, during her rural health internship in Uttar Pradesh, witnessed a pregnant woman die on a wooden hand-pulled cart because she was unable to reach the hospital in time. The images of these two women with their swollen abdomen and pale, dying faces still haunt us, as we reflect on the privileges we enjoy as women belonging to a certain class and caste in India.
  • Women, pregnant people and transgender persons in India struggle every day to exert their choice about birthing and their bodily autonomy. Yet, despite this bleak reality, netizens on social media in India claim that the country is more progressive than the U.S. on abortion rights because we have the Medical Termination of Pregnancy Act, 1971 (“MTP Act”). Such a self-congratulatory attitude is neither in good faith nor is it factually correct.
  • According to the World Health Organization, six out of 10 of all unintended pregnancies end in induced abortion. Around 45% of all abortions are unsafe, almost all of which (97%) take place in developing countries. As per a nationally representative study published in PLOS One journal in 2014, abortions account for 10% of maternal deaths in India.
  • The recent round of the National Family Health Survey 2019-2021, shows that 3% of all pregnancies in India result in abortion. More than half (53%) of abortions in India are performed in the private sector, whereas only 20% are performed in the public sector — partly because public facilities often lack abortion services. More than a quarter of abortions (27%) are performed by the woman herself at home.
  • In another a fact-finding study published in The Lancet in 2018, 73% of all abortions in India in 2015 were medication abortions, and even though these may have been safe — many of these are illegal as per the MTP Act, if they occur without the approval of a registered medical practitioner. Another 5% of all abortions were outside of health facilities with methods other than medication abortion.
  • These risky abortions are performed by untrained people under unhygienic conditions using damaging methods such as insertion of objects, ingestion of various substances, abdominal pressure, etc. A recent study found that sex-selective abortions in India could lead to 6.8 million fewer girls being born between 2017 to 2030.
  • Many may be unaware of these disturbing statistics and facts. But we all know of at least one adolescent girl among our family or friends or networks who had to travel to another city in order to find a ‘non-judgmental’ obstetrician or who had to arrange money to access abortion in the private sector. Or, we may have heard of someone who has aborted a female foetus because the family wanted a son; or know of a mother who escaped the pressure of such forced abortion because she did not want to lose her pregnancy.
  • The MTP Act, first enacted in 1971 and then amended in 2021, certainly makes ‘medical termination of pregnancy’ legal in India under specific conditions. However, this Act is framed from a legal standpoint to primarily protect medical practitioners because under the Indian Penal Code, “induced miscarriage” is a criminal offence. This premise points to a lack of choice and bodily autonomy of women and rests the decision of abortion solely on the doctor’s opinion. The MTP Act also only mentions ‘pregnant woman’, thus failing to recognise that transgender persons and others who do not identify as women can become pregnant.
  • Moreover, the acceptance of abortion in Indian society is situated in the context of population control and family planning. But, most importantly, after more than 50 years of the MTP Act, women and transgender persons face major obstacles in accessing safe abortion care.
  • These are seven examples: First, they may not even be aware that abortion is legal or know where to obtain one safely; second, since the MTP Act does not recognise abortion as a choice, they need the approval of medical professionals even in the first few weeks of the pregnancy; third, unmarried and transgender people continue to face stigma and can be turned away from health facilities, forcing them to resort to unsafe care; fourth, mandatory reporting requirements under the Protection of Children from Sexual Offences Bill (POCSO), 2011 law against child sexual offences, impact privacy and hinder access of adolescents to safe abortion services; fifth, many are still coerced into agreeing to a permanent or long-term contraceptive method as a prerequisite for getting abortion services; sixth, health-care providers may impose their own morality by insisting on ‘husbands’ or ‘parental’ consent for abortion.
  • Even women seeking abortion care in health facilities are often mistreated and not provided medications for pain relief; seventh, despite laws prohibiting sex determination, the illegal practice persists. The mushrooming of unregulated ultrasound clinics in India continues to facilitate the illegal practice of sex determination, resulting in unsafe abortions and female foeticide.
  • It is a testament to class and caste divides when netizens talk of being ‘progressive’ when, 50 years after the MTP Act, women continue to die due to unsafe abortions. Passing one law and assuming the job is done is far from “progressive” when so many face a lack of access, systemic barriers, social norms and cultural preferences, and even criminal liability.
  • There is an urgent need in our country to shift the discourse on abortions from just being a family planning and maternal health issue to one of a sexual health and reproductive rights issue. The situation in India shows that one law alone is insufficient and we must raise the bar on reproductive justice.
  • We must improve our health systems to ensure good quality and respectful abortion care. As the focus on abortion rights in the U.S. rages, we call upon all to self-reflect and to stand in solidarity with people in the U.S. and other places where reproductive rights are in jeopardy. Reproductive injustice anywhere is a threat to the lives of people everywhere.

 

THE ENVIRONMENT AND ECOLOGY

4. PRIORITISE RESIDUE-FREE FARMING OVER ORGANIC FARMING

THE CONTEXT: Over the past few years, there has been a paradigm shift in consumer preferences. Indian buyers are becoming increasingly health-conscious and watchful of the food they consume. In light of this trend, two modes of farming — residue-free and organic, have become increasingly popular.

THE EXPLANATION:

  • Simply put, residue-free farming techniques entail the protection and growth improvement of seedlings and plants by using organically procured bio-fertilizers and biocides.
  • The produce is also grown using synthetic pesticides, which are applied at predetermined intervals so that the residue is not present in enormous quantities, conforming to the (MRL) Maximum Residue Level.
  • Organic farming, on the other hand, is an agricultural system that relies on pest controls and bio-fertilizers that are obtained from animal and plant waste. It even involves the plantation of nitrogen-fixing cover crops.

The consumption factor

  • Residue-free farming eliminates the shortcomings of organic farming techniques. It is essential to promote residue-free over organic farming for the following reasons:
  • Research now reveals that there are no clear indicators to suggest that organic produce offers a higher nutritional value when compared to fruits and vegetables grown using other techniques.
  • Residue-free farming practices have been successful in overcoming this downside. Since it does not involve any toxin throughout the production process, the fruits and vegetables, thus produced, are best for those with allergies and other dietary restrictions.
  • Their overall nutritional value and quality are high. Despite the obvious benefits, farmers in India do not fully embrace residue-free farming, which is mostly neglected by buyers and sellers in the local market.
  • Several State governments have recognised the importance of residue-free produce. The ₹2,200-crore State of Maharashtra Agribusiness and Rural Transformation (SMART) project plans to supply the urban population of Pune with residue-free produce.

The production factor

  • According to a study, the yield capacity of organic farming methods is so low that relying solely on these techniques will be insufficient to meet the demands of a constantly rising population. Further, the production of organic items is expensive, and in some instances, the mark-up of these produces is as high as 40 percent. Residue-free techniques, on the other hand, are economical, and they do not hamper production quantity.
  • It makes use of modern practices like poly-houses, grafting, bio-fertiliser management, and rainwater harvesting. The Centre has launched the All India Network Project on Pesticide Residues (AINP-PR) to combat pesticide contamination in several food commodities. Numerous agritech players are also collaborating with farmers to produce residue-free fruits and vegetables.

The environmental factor

  • Traditional farming practices depended largely on chemical fertilisers and pesticides. These substances are not only detrimental for consumers but also impoverish the quality of the surrounding environment. For instance, they lead to soil degradation, water pollution and loss of aquatic life, among others. Though organic farming eradicates this problem, the cost of doing so is very high. The yield is insufficient. Residue-free practices entail minimal or no usage of chemicals. They do not hamper any other aspect of farming.
  • As the name suggests, it leaves no harmful traces behind. To instill a culture of food safety in the country, FSSAI has introduced a list of crop contaminants and their acceptable levels. According to regulation, the certified levels of mentioned elements cannot be breached during production.

Trade and international standards

  • India apart from its domestic consumption also caters to international fresh food demand. However, Indian goods face rejection because they fail to fall under the international Maximum Residue Levels (MRLs). For example, the EU refused consignments of table grapes of India as they failed to fall under their strict MRL. In 2020, the crops that faced issues on the international front included chillies, basmati rice and sesame seeds. Developed countries encourage and promote residue-free crops. Good agricultural practices, as well as well-defined MRL standards, are used to ensure residue-free produce, and the slightest deviation from their pre-set parameters renders the entire consignment useless.
  • To make indigenous produce more competitive in the export market, FSSAI has issued a set of MRLs for the compliance of domestic producers. These standards are set after considering the global requirements.
  • The subcontinent’s focus on residue-free and clean produce has seen a dramatic increase in recent years. Apart from the government and its subsidiary bodies, a plethora of agri-tech players have also entered the picture to spread awareness. Many private players are leveraging technology to empower farmers, streamline the supply chain, incorporate end-to-end traceability and minimise wastage through residue-free cultivation.

THE ECONOMIC DEVELOPMENT

5. WHAT IS THE SERVICE CHARGE LEVIED BY RESTAURANTS ON CUSTOMERS?

THE CONTEXT: The Centre has called a meeting of restaurant owners over service charges levied by them on customers. The meeting, called by the Department of Consumer Affairs (DoCA) under the Ministry of Consumer Affairs, Food and Public Distribution, will be held on June 2, 2022, with the National Restaurant Association of India (NRAI).

THE EXPLANATION:

  • The ministry wrote a letter to NRAI – the umbrella restaurant body – saying the restaurants are collecting service charges from consumers by default, even though the collection of any such charge is voluntary and at the discretion of consumers and not mandatory as per law.
  • A restaurant bill in India comprises food charge (from the menu), with an addition of service charge (anywhere between 5 to 15 percent) and a 5 percent GST on this amount (IGST+SGST). This is for all kinds of standalone restaurants. In case a restaurant is located inside a hotel wherein the room rate is upwards of Rs 7,500 (mostly in case of five-stars), the GST would be 18 percent. While the GST is a mandatory component as per law, it is the service charge which is supposed to be optional. It is the equivalent of what is known as gratuity around the world, or tip, in casual parlance.
  • Most restaurants decide on the service charge on their own, and print it at the bottom of the menu with an asterisk. It is this component that has come under dispute from time to time, with consumers arguing they are not bound to pay it.
  • The issue, as per the Ministry, is that almost all restaurants have put service charge (fixed at their own accord) as a default billing option, and if a consumer is aware that it is not compulsory and wants it removed or wants to tip the server directly, the onus is on them to convince the management why they don’t want to pay it.
  • The department says they received several complaints saying it leads to public embarrassment and spoils the dining experience since at the end of it, they either pay the charge quietly and exit the place feeling cheated or have to try hard to get it removed.
  • Also, there is no transparency as to where this charge goes. The officials also say that collecting service charge on their own and paying GST on it to the government doesn’t make it authorised.

6. APEX COURT’S RULING ON GST IS A WATERSHED

THE CONTEXT: The judgment is likely to have some impact on the GST Council’s functioning. Collaborative decision making is the way forward

THE EXPLANATION:

  • In tax laws, every once in a while, a Supreme Court decision gets the ‘landmark’ tag. The recent Supreme Court ruling in the Mohit Minerals case has earned that tag. The issue before the apex court was whether GST could be levied on ocean freight when IGST has been levied on the total transaction value which included freight.
  • The apex court struck down the levy as unconstitutional and ended the controversy over double taxation on ocean freight. What interested everyone during the course of this decision was the observations of the Court on the GST Council.
  • The operative part of the court ruling was that the recommendations of the GST Council are not binding on the Union and States for the following reasons:
  • Parliament intended for the recommendations of the GST Council to only have a persuasive value, particularly when interpreted along with the objective of the GST regime to foster cooperative federalism and harmony between the constituent units.
  • Parliament and the State legislatures possess simultaneous power to legislate on GST.
  • The ‘recommendations’ of the GST Council are the product of a collaborative dialogue involving the Union and States. They are recommendatory in nature. To regard them as binding edict would disrupt fiscal federalism, where both the Union and the States are conferred equal power to legislate on GST.
  • It is not imperative that one of the federal units must always possess a higher share in the power for the federal units to make decisions.
  • The government, while exercising its rule-making power under the provisions of the CGST Act and IGST Act, is bound by the recommendations of the GST Council.
  • However, that does not mean that all the recommendations of the GST Council made by virtue of the power of Article 279A (4) are binding on the legislature’s power to enact primary legislation.
  • The IGST Act and the CGST Act define reverse charge and prescribe the entity that is to be taxed for these purposes. The specification of the recipient — in this case the importer — by Notification 10/2017 is only clarificatory. While import of services qualifies for reverse charge under this notification, this cannot be extended to cases where IGST has already been paid.
  • The apex court has observed that the impugned levy imposed on the ‘service’ aspect of the transaction is in violation of the principle of ‘composite supply’ enshrined under Section 2(30) read with Section 8 of the CGST Act. Since the Indian importer is liable to pay IGST on the ‘composite supply’, comprising supply of goods and supply of services of transportation, insurance, etc. in a c.i.f. contract, a separate levy on the Indian importer for the ‘supply of services’ by the shipping line would be in violation of Section 8 of the CGST Act.
  • In essence, the Centre cannot a tax a transaction twice.The operative part of the court ruling was that the recommendations of the GST Council are not binding on the Union and States for the following reasons:
  • Parliament intended for the recommendations of the GST Council to only have a persuasive value, particularly when interpreted along with the objective of the GST regime to foster cooperative federalism and harmony between the constituent units.
  • Parliament and the State legislatures possess simultaneous power to legislate on GST.
  • The ‘recommendations’ of the GST Council are the product of a collaborative dialogue involving the Union and States. They are recommendatory in nature. To regard them as binding edict would disrupt fiscal federalism, where both the Union and the States are conferred equal power to legislate on GST.
  • It is not imperative that one of the federal units must always possess a higher share in the power for the federal units to make decisions.
  • The government, while exercising its rule-making power under the provisions of the CGST Act and IGST Act, is bound by the recommendations of the GST Council.
  • However, that does not mean that all the recommendations of the GST Council made by virtue of the power of Article 279A (4) are binding on the legislature’s power to enact primary legislation.
  • The IGST Act and the CGST Act define reverse charge and prescribe the entity that is to be taxed for these purposes. The specification of the recipient — in this case the importer — by Notification 10/2017 is only clarificatory. While import of services qualifies for reverse charge under this notification, this cannot be extended to cases where IGST has already been paid.
  • The apex court has observed that the impugned levy imposed on the ‘service’ aspect of the transaction is in violation of the principle of ‘composite supply’ enshrined under Section 2(30) read with Section 8 of the CGST Act.
  • Since the Indian importer is liable to pay IGST on the ‘composite supply’, comprising supply of goods and supply of services of transportation, insurance, etc. in a c.i.f. contract, a separate levy on the Indian importer for the ‘supply of services’ by the shipping line would be in violation of Section 8 of the CGST Act. In essence, the Centre cannot a tax a transaction twice.
  • This judgment of the apex court is bound to have some impact on the working of the GST Council. Collaborative decision-making would be the way forward — this is easier said than done since a few States have strong views on certain aspects of GST taxation and the decision in Mohit Minerals gives them more teeth.
  • It is expected that the GST Council would not recommend anything that could turn out to be controversial.
  • While the decision in Mohit Minerals does not give State governments unilateral powers of taxation, it sends a message to the GST Council to listen to all voices including those of protest.

THE PRELIMS PRACTICE QUESTIONS

QUESTION FOR 26TH MAY 2022

Q1. Consider the following statements about National Tiger Conservation Authority:

  1. The National Tiger Conservation Authority (NTCA) is a statutory body.
  2. The Prime Minister is the chairperson of NTCA.

Which of the statements given above is/are correct?

        a) 1 only

        b) 2 only

        c) Both 1 and 2

        d) Neither 1 nor 2

 

ANSWER FOR THE25thMAY

Answer: B

Explanation:

  • Statement 1 is incorrect: It is built by the kings of the Ganga dynasty.
  • Statement 2 is correct: It is an example of Kalinga Architecture.



Day-212 | Daily MCQs | UPSC Prelims | INDIAN ECONOMY

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Day-211 | Daily MCQs | UPSC Prelims | CURRENT DEVELOPMENTS

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Day-203 | Daily MCQs | UPSC Prelims | INDIAN ECONOMY

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