THE CONTEXT: New-age crimes in the cyber world are leaving the cops huffing and puffing as thieves seem to run miles ahead of them with smarter and ingenious methods of breaching and misusing digital data to loot more and more vulnerable victims. As reliance on technology, remote work and automation picks pace and billions of people become digitally savvy, the scope for online trickery and scams has grown exponentially. This article presents various aspects of cybercrimes and how law enforcement agencies can keep a check on them.

CYBERCRIME

Cybercrime is defined as crimes committed on the internet using the computer as a tool to target the victim for the execution of the desired crime. Though it is difficult to determine where the particular cyber crime took place because it can harm its victim even sitting at a far distance. Cyber crimes are quite different from traditional crimes as they are often harder to detect, investigate and prosecute and because of that cyber crimes cause greater damage to society than traditional crimes. Cyber crimes are broadly classified into different groups:

CRIME AGAINST THE INDIVIDUALS

• Harassment, cyber-stalking, deformation, indecent exposure, cheating, email spoofing, fraud, etc.

CRIME AGAINST PROPERTY

• Transmitting viruses, net trespass, unauthorized control over computer systems, internet thefts, infringement of intellectual property,etc.

CRIME AGAINST ORGANIZATION

• Cyber terrorism within a government organization, possession of unauthorized information, distribution of pirate software, etc.

CRIME AGAINST SOCIETY

• Child pornography, financial crimes, sale of unlawful articles, trafficking, forgery of records, gambling, etc.

DATA AND RECENT INCIDENTS:

1. Cybercrimes in the country have increased four times or 306 per cent in the past four years. In 2016, 12,317 cases of cybercrime were registered and in 2020 this number increased to 50,035. This means that India registered 136 cybercrime cases every day in 2020, according to the National Crime Records Bureau.
2. India witnessed over 18 million cyber-attacks and threats, with an average of nearly 200,000 threats every day, in the first three months of 2022, according to US-based cyber security firm, Norton. The company states in its Cyber Safety Pulse Report that the quarter spotted nearly 60,000 phishing attempts through this quarter, as well as over 30,000 tech support scams in this time.
3. Another aspect is the increasing trend of cyber criminals gaining access to corporate email addresses. In the year 2015, an oil and gas company was hacked whereby the cyber criminals duplicated the email ids of the senior officials in order to ploy one of the clients to transfer the amount to the hacker’s account leading to losses to the tune of a few hundred crores. E.g. The Cosmos Bank was destructively hit by a cyber-attack in the year 2018, where the hackers hacked into the ATM server of the bank and stole details of many visa and Rupay debit card owners.
4. Recent incidents like Pegasus WhatsApp snooping, a cyber attack on India’s nuclear power plant etc. have shown India’s vulnerability.

ISSUES IN INDIA’S CYBER SECURITY

1. Service Providers: Rush towards digitization in almost every sector has led to increased collaborations with application service providers. This is done to provide customers with the best apps and services in the shortest possible time. Hardware and software being of foreign origin or the terabytes of data that is parked on servers outside India serves as a potential threat to National Cyberspace.
2. Wide Coverage: India has now more than 700 million internet users which makes it a large pool of digitally vulnerable targets. Considering our nation’s size and scale, it serves as a challenge to monitor and suspect digital threats. Computer Emergency Response Team (CERT-In) is heavily understaffed. Although Gov. has set up National Critical Information Infrastructure Protection Centre (NCIIPC) but it is yet to identify and implement measures to protect critical information infrastructure
3. The continued perception has been that cyber security is optional. This led to an increase in threats of cyber-attacks.
4. The international threat of a cyber war from neighbouring countries has increased in recent times. Lots of equipment in India are imported. It is unknown whether these devices are tampered with or programmed for control processes
5. Cyber-attacks have grown in terms of sophistication and reach in recent times. The countries are witnessing growing cybercrime ranging from fraud calls to malware that brings banking systems to a standstill. Attacks are often anonymous and difficult to attribute to specific actors, state or non-state. Advanced Precision Threats (APTs) carried out by anonymous hackers are often silent and go unnoticed for long periods.

WHAT HAS INCREASED INDIA’S CYBER SECURITY THREAT?

DIGITAL INDIA VISION

• India is one of the fastest-growing markets for digital technologies fuelling the government’s push toward actualising its Digital India mission.
• Whether creating broadband highways or rolling out services such as DigiLocker and e-governance schemes like the Jan Dhan Yojana, the government has pushed for as much digital adoption as possible.
• Under Pradhan Mantri Jan Dhan Yojana 45 crore new accounts have been opened and 32 crore RuPay Debit Cards have been distributed in the last 8 years.
• BharatNet is also developing very fast, 5.75 lakh km of fibre cable has been laid and work has been done to connect 1.80 lakh villages in the last 8 years which was less than 10000, 8 years ago.

INCREASING FOOTPRINT OF DIGITAL ACTIVITIES

• India now has over 1.15 billion phones and more than 700 million internet users which makes it a large pool of digitally vulnerable targets.
• In January 2020, India had the second-largest Internet user base with over 550 million Internet users.
• In 2021, 40% of the total global digital payments took place in India.
• Digital Inclusion increases the potential of digital threats leading to cyber-attacks and crimes.

TECHNOLOGY SHOCKS

• Technologies like the internet, social media, and smart phones allow individuals and groups to commit crimes across international borders. The digital illiteracy and fear psychosis that was evident in Indian masses after the demonetization in 2016 made them more susceptible to cyber frauds.
• The Jamtara cyber con artists made news in 2017, for phishing attacks and duping people of large amounts.
• Silly mistakes by gullible people make them an easy prey to hackers, tele-phishers and other cheats using devices to steal debit and credit card details.
• This has forced one to think that whether the technology upgrades are faster than the general awareness of the people and law making process to handle such crimes.

 LAWS RELATED TO CYBER SECURITY IN INDIA

INFORMATION TECHNOLOGY ACT, 2000

• The act regulates the use of computers, computer systems, computer networks and also data and information in electronic format. The act lists down among other things, the following as offences:

ü  Tampering with computer source documents.

ü  Hacking with computer system

ü  Act of cyber terrorism i.e. accessing a protected system with the intention of threatening the unity, integrity, sovereignty or security of the country.

ü  Cheating using computer resources etc.

STRATEGIES UNDER NATIONAL CYBER POLICY, 2013

• Creating a secure cyber ecosystem.
• Creating mechanisms for security threats and responses to the same through national systems and processes.
• National Computer Emergency Response Team (CERT-in) functions as the nodal agency for coordination of all cyber security efforts, emergency responses, and crisis management.
• Securing e-governance by implementing global best practices, and wider use of Public Key Infrastructure.
• Protection and resilience of critical information infrastructure with the National Critical Information Infrastructure Protection Centre (NCIIPC) operating as the nodal agency.
• NCIIPC has been created under the Information Technology Act, of 2000 to secure India’s critical information infrastructure. It is based in New Delhi.
• Promoting cutting-edge research and development of cyber security technology.
• Human Resource Development through education and training programs to build capacity.

 GOVERNMENT INITIATIVES TO TACKLE CYBER CRIMES

CYBER SURAKSHIT BHARAT INITIATIVE

• It was launched in 2018 with an aim to spread awareness about cybercrime and build capacity for safety measures for Chief Information Security Officers (CISOs) and frontline IT staff across all government departments.

NATIONAL CYBER SECURITY COORDINATION CENTRE (NCCC)

• In 2017, the NCCC was developed. Its mandate is to scan internet traffic and communication metadata (which are little snippets of information hidden inside each communication) coming into the country to detect real-time cyber threats.

CYBER SWACHHTA KENDRA

• In 2017, this platform was introduced for internet users to clean their computers and devices by wiping out viruses and malware.

INFORMATION SECURITY EDUCATION AND AWARENESS PROJECT (ISEA)

• Training of 1.14 Lakh persons through 52 institutions under the Information Security Education and Awareness Project (ISEA) – a project to raise awareness and provide research, education and training in the field of Information Security.

INTERNATIONAL COOPERATION

• Looking forward to becoming a secure cyber ecosystem, India has joined hands with several developed countries like the United States, Singapore, Japan, etc. These agreements will help India to challenge even more sophisticated cyber threats.

CYBERCRIME PORTAL

• It aims to enable citizens to report online content pertaining to Child Pornography/ Child Sexual Abuse Material or sexually explicit content

NATIONAL CONFERENCE ON CYBER SAFETY

• In June 2022 the National Conference on Cyber Safety and National Security was held in New Delhi. The conference is part of the efforts to create mass awareness for the prevention of cybercrimes in the country.

INTERNATIONAL MECHANISMS

• The International Telecommunication Union (ITU) is a specialized agency within the United Nations which plays a leading role in the standardization and development of telecommunications and cyber security issues.
• Budapest Convention on Cybercrime: It is an international treaty that seeks to address Internet and computer crime (cybercrime) by harmonizing national laws, improving investigative techniques, and increasing cooperation among nations. It came into force on 1 July 2004. India is not a signatory to this convention.
• Internet Governance Forum (IGF): It brings together all stakeholders i.e. government, private sector and civil society on the Internet governance debate. It was first convened in October–November 2006.
• Internet Corporation for Assigned Names and Numbers (ICANN): It is a non-profit organization responsible for coordinating the maintenance and procedures of several databases related to the namespaces and numerical spaces of the Internet, ensuring the network’s stable and secure operation. It has its headquarters in Los Angeles, U.S.A.

BUDAPEST CONVENTION

• The Council of Europe’s (CoE) Cybercrime Convention, also known as the Budapest Convention is the sole legally binding international multilateral treaty on cybercrime. It coordinates cybercrime investigations between nation-states and criminalizes certain cybercrime conduct.
• It was open for signature in 2001 and came into force in 2004.
• The Budapest Convention is supplemented by a Protocol on Xenophobia and Racism committed through computer systems.
• India is not a party to it. India recently voted in favour of a Russian-led UN resolution to set up a separate convention.
• The resolution seeks to set up new cyber norms considered as a counter alternative to the US-backed Budapest Accord.

NEED FOR INTERNATIONAL LAW TO DEAL WITH CROSS-BORDER CYBERCRIMES

• Technology develops much more quickly than the domestic and international laws that apply to its use across borders. Some countries argue for greater control over citizens’ data, with localization requirements for storing data inside national borders.
• As new technologies like the internet of things continue to evolve, the ability of international law to combat their negative uses becomes increasingly important to protecting critical infrastructure like power plants and dams.
• But one of the most persistent hurdles remains:International law is designed for sovereign nations to work through legal mechanisms to address grievances with other sovereign nations. Some technology companies have now become key international players, but as non-state actors and they are still governed by national laws and regulations. Until international law catches up with this reality, accountability to international human rights norms also remains elusive.
• Technology empowers governments and non-state actors alike to reach far beyond their own national borders. Combatting transnational issues such as cyber attacks, terrorism, and propaganda requires developing new rules to address the negative consequences of technology.
• The phenomenon of increase in cyber espionage by corporate, by hostile governments to steal trade secrets and information to gain economic advantage or military advantage (most recently seen in Russia – Ukraine war) also demands for a comprehensive law governing all nations on the issue of

THE ANALYSIS OF THE ISSUE

• The media is full of horrifying stories of the common and even highly-placed people being duped of their money through a wide array of online scams. Even as criminals are inventing newer tools to defraud companies and individuals of their assets, the old and common ways like phishing, malware, ransomware etc via scam emails, mobile phone calls and messaging continue to trap thousands of unsuspecting prey.
• At present, in the context of cross-border cyber security threats India needs to review its cyber-defence policies and the country also needs to give equal attention to building a deterrent cyber-offensive capability. The government is taking far too long in finalising a National Cyber Security Strategy.
• There are two limitations to India’s present approach toward cyber security. The country’s policy is defensive and has a narrow focus. It aims to harden vulnerabilities only in civil government and military assets. However, a substantial amount of critical infrastructure in India is built and managed by the private sector.
• Private corporations also hold troves of sensitive personal data. Therefore, any new strategy must ensure the private sector has the necessary cyber-security cover. The new strategy must also acknowledge that the capacity to counter-attack is often the best defence in a cyber war.

THE WAY FORWARD:

• The law enforcement agencies’ cyber security arena is inadequately equipped with expert manpower and resources needed to counter this specialised menace and the very real and growing risk of online fraud and thefts. India should update and upgrade its computing environment and IoT with current tools, patches, updates and best-known methods of the day in a timely manner.
• The instances of cyber financial fraud also call for increased budget allocations in the field of cybersecurity in every district to improve the detection and prevention of the crime.
• The government should also develop core skills in cyber security, data integrity and data security fields while also setting stringent cyber security standards to protect banks and financial institutions.
• Effective use of the knowledge gained from actual attacks that have already taken place in the past for building an effective and pragmatic defence.
• Emphasizing digital literacy is the first requirement for increasing awareness about cyber threats.A public awareness campaign can also prove to be effective to curb cybercrime.
• The university and school curriculum must also emphasize cyber security as a high-decibel awareness
• Pressure also needs to be put on officials in the public domain to carry out regular vulnerability assessments and create necessary awareness of the growing cyber threat.
• A dedicated industry forum for cyber security should be set up to develop trusted indigenous solutions to check cyber-attacks.
• While international cooperation among different countries is necessary to tackle cyber crimes, it is difficult to have universally accepted law on cyber security because there are different approaches, cultures, history on how we think about freedom of speech; the right to privacy and freedom & security. While no country wants to be deprived of benefits of technological advancements we need to build on and improve international cooperation until a comprehensive and pan global law is in place.

THE CONCLUSION:

Emerging trends in cybersecurity indicate that nearly all future global conflicts will have a cyber component. Whether it is for spying on governments, targeting defence forces, hitting power and communication grids, crippling transport networks, subverting financial systems or sabotaging flights, the next war will begin in cyberspace. It may even be waged largely there, yet it will wreak havoc in the everyday lives of common people unless a robust defence is put up. To achieve the goal of a cyber-secure nation, India will require a robust cyber security strategy that safeguards government systems, citizens, and the business ecosystem. This will not only help protect citizens from cyber threats but also boost investor confidence in the economy.

Mains Practice Question:

1. India is witnessing ingenious cyber crimes every day. What should be the approach of the government and law enforcement agencies to deal with such menace?
2. Discuss different types of cybercrimes and measures required to be taken to fight the menace. (GS-3 Mains 2020)
3. Digital India’s dream requires a strong focus on digital security. Comment.

THE CONTEXT: The discontentment with growth not being beneficial to all became a highly debated topic in the past few years and the arena of policy making also focused on reforms in a situation where India achieved higher economic growth but sluggish poverty reduction. Realising the importance of this debate, the government of India also envisioned “inclusive growth” as a strategy to ensure that economic progress is pro-poor and inclusive. This article explains various reasons for poverty in India and how can economic growth be of help in reducing the poverty.

WHAT IS ECONOMIC GROWTH?

Economic growth is an increase in the production of economic goods and services, compared from one period of time to another. It can be measured in nominal or real (adjusted for inflation) terms. Traditionally, aggregate economic growth is measured in terms of gross national product (GNP) or gross domestic product (GDP), although alternative metrics are sometimes used.

Economic growth refers to an increase in aggregate production in an economy. Often, but not necessarily, aggregate gains in production correlate with increased average marginal productivity. That leads to an increase in incomes, inspiring consumers to open up their wallets and buy more, which means a higher material quality of life or standard of living.

 INDIA’S GROWTH STORY

India’s economic journey since 1947 has seen its share of ups and downs. Once branded a “third world country”, a term for poor developing nation-states which has now fallen into disuse, India is now among the biggest economies of the world. In 1991, India was a leader of the G-77 (a group of poor countries constantly demanding more concessions to develop). Today India is in the T-20, the top 20 economies that lead the world.

FOOD PRODUCTION

• Achieving “self-sufficiency” in food grains has been Independent India’s biggest achievement. From receiving food aid in the 1950s and 1960s to becoming a net exporter, India has seen a turnaround in food production. The total food production, which stood at 54.92 million tonnes in 1950, rose to 305.44 million tonnes in 2020-21.

GROSS DOMESTIC PRODUCT (GDP)

• India’s GDP stood at ₹ 2.7 lakh crore at Independence. 74 years on, it has reached ₹ 135.13 lakh crore. India is now the 6th largest economy in the world and is on its way to becoming the third-largest by 2031, as per Bank of America. An unmissable fact is that there has been a 10- fold increase in the GDP (at constant prices) since the reform process began in 1991.

FOREX 

• India’s forex reserves (In foreign currencies and other assets like gold) stood at a meagre ₹ 1,029 crores in 1950-51. In fact, India’s low forex reserves played a catalytical role in kick starting the economic reforms. With just $1.2 billion worth of forex reserves in 1991, India just had enough reserves to finance 3 weeks of imports. Three decades since the reform process began, India’s forex reserves now stand at ₹ 46.17 lakh crore – the world’s fifth-largest.

START-UP ECOSYSTEM

• India has emerged as the third-largest startup ecosystem in the world after the US and China and the pace of growth is not showing any signs of slowing down.

POVERTY

• Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living. Poverty means that the income level from employment is so low that basic human needs can’t be met.
• According to World Bank, Poverty is pronounced deprivation in well-being and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one’s life.
• In India, 21.9% of the population lives below the national poverty line in 2011, however, this estimate of numbers might have increased in the aftermath of the Covid pandemic bringing many into the poverty net and still many poor were pushed deeper into poverty.
• Also, the Periodic Labour Force Survey for the years 2017-18, 2018-19 and 2019-20 shows that the Top 10% earn approximately equal to the bottom 64%. The top 10 accounts for one-third of the incomes earned. While income disparity is not the only trigger to descent into poverty, it boldly outlines the everyday experiences of inequality and inequities.

ABSOLUTE POVERTY

• A condition where household income is below a necessary level to maintain basic living standards (food, shelter, housing). This condition makes it possible to compare different countries and also over time. It was first introduced in 1990, the “dollar a day” poverty line measured absolute poverty by the standards of the world’s poorest countries. In October 2015, the World Bank reset it to $1.90 a day.

RELATIVE POVERTY

• It is defined from the social perspective that is living standard compared to the economic standards of the population living in its surroundings. Hence it is a measure of income inequality.
• Usually, relative poverty is measured as the percentage of the population with income less than some fixed proportion of median income.

CAUSES OF POVERTY IN INDIA

GROWTH FACTOR 

• As development proceeds, the earnings of different groups rise differently.
• The incomes of the upper-income and middle-income groups rise more rapidly than those of the poor. This happens in the early stages of growth which India is passing at present.
• The explanation lies in the shift of population from agriculture which is a slow-growing sector to the modern large industrial sector which grows more rapidly.
• The capital-intensive type of growth leads to the concentration of income in those few hands who supply capital.

PRIVATE OWNERSHIP OF PROPERTY

• India being a mixed economy, has guaranteed the right to private property to its people Accordingly, tangible wealth like land, buildings, automobiles, white goods etc. are owned by a private individual.
• Inequalities of income have resulted from the ownership of private property in the following manner:

Ø  Inequalities Arising Out of Concentrated Land Ownership and Concentration of Tangible Wealth in the Rural Sector.

Ø  Private Ownership of Industries, Trade and Real Estates.

Ø  Inequalities in Professional Knowledge and Training

PREVALENCE OF THE LAW OF INHERITANCE

• The prevalence of the law of inheritance perpetuates income inequalities to a significant level.
• As per this law, the property of the father is usually inherited by his sons and daughters and thus children of the richer class automatically become richer and the children of the poorer class remain poor.

CLASS-BASED DEVELOPMENTS

• The upper classes were the main beneficiary of the nation’s surging economic development and poverty rates are also significantly lower among the upper caste Hindus rather than in the others classes
• One-third of Muslim and Hindu scheduled castes and tribes are in poverty compared to 10% of the upper castes Hindu. Altogether, 28% or around 360 million Indians are living in conditions of severe poverty.

OTHER FACTORS

Ø  SOCIAL FACTORS: Apart from economic factors, there are also social factors hindering the eradication of poverty in India. Some of the hindrances in this regard are the laws of inheritance, caste system, certain traditions, etc.

Ø  CLIMATIC FACTORS: Most of India’s poor belong to the states of Bihar, UP, MP, Chhattisgarh, Odisha, Jharkhand, etc. Natural calamities such as frequent floods, disasters, earthquakes and cyclones cause heavy damage to agriculture in these states.

Ø  POVERTY TRAP:

CONSEQUENCES OF POVERTY

SOCIO-ECONOMIC IMPACTS

• It is estimated that 300 million Indians live in abject poverty. This is the largest number in the world.
• India has the highest number of homeless people.
• Gender inequality leading to violence against women, the burden of unpaid care work, fiscal injustice for women and other marginalised groups. Inequality leads to increased crime and workplace accidents.
• It stems from class, caste and gender inequalities.

INADEQUATE DEVELOPMENT

• The gap between the rich and the poor has created “Club States” with Gujarat, Punjab and other rich states forming the richest clubs.
• Madhya Pradesh, Orissa, Bihar and other such states being left behind in terms of development.

INEQUALITY MAKES THE FIGHT TO END POVERTY MUCH HARDER

• Higher income inequality impedes class formation and poverty reduction.
• Unless growth benefits the poorest people more between now and 2030, the World Bank forecasts that the first Sustainable Development Goal (SDG) to eliminate extreme poverty will be missed.
• Access to social amenities such as decent shelter, clean water, nutrition and food as well as healthcare and education has become difficult for the poor.

Case study

The growth of the middle class plays a significant role in strengthening democratic structures and cultures. But rising income inequality in India is hampering the formation and growth of the middle class. If one were to take an income of $10-$20 per day in 2011 purchasing power parity as an indicator of the middle class, then India has not done as well as Malaysia, Indonesia and China in growing its middle class.

DISPARITIES IN SOCIAL SERVICE

• The highest-quality medical care is only available to those who have the money to pay for it.
• The country is a top destination for medical tourism. At the same time, levels of public spending on health are some of the lowest in the world.
• The poorest Indian states have infant mortality rates higher than those in Sub-Saharan Africa.
• The shortage of health specialists in rural areas, the report compares India’s 0.7 doctors per 1,000 people to the UK’s 2.8.
• The dropping enrolment ratio in government schools, particularly for girls, while private schools see an uptick in admission.

THE ANALYSIS: THE GROWTH – POVERTY PARADOX 

• The surging economic growth has improved the living conditions of its citizens, but these improvements were not uniformly distributed among India’s diverse population. Despite being among the richest countries in the world, India has attracted negative attention in recent years and ranked 66 out of 109 countries in Multidimensional Poverty Index 2021.
• On the surface, India’s story of growth and its triumph over poverty is enviable. India’s income per capita has increased fourfold in the last two decades, and its absolute poverty – measured on the international poverty line – reduced sharply from 40 per cent in 2000 to 13.4 per cent in 2015 but while India is no longer chronically poor, its growth has not been inclusive. The segment of the population that ‘graduated’ from poverty is largely still vulnerable, with consumption levels very close to the poverty line, and far from becoming a ‘middle class.’
• Poverty is concentrated more and more in urban areas, as now one-in-three poor is living in urban areas, which was about one-in-eight in the early 1950s. In the post-liberalisation period, urban growth and non-agricultural growth has emerged as major driver of national poverty reduction including rural poverty.
• Unlike in advanced economies, economic growth and inequality converge in terms of their effects on socio-economic indicators in India i.e. with economic growth the inequality in income and asset distribution also increases; however economic growth helps in reducing the poverty.
• Manifestation of unequal growth is also growing inequalities:
• Growing Rich: During the pandemic, the wealth of Indian billionaires increased from Rs 23.14 lakh crore to Rs 53.16 lakh crore.

ü  India has the third-highest number of billionaires in the world, just behind China and the United States.

ü  There is a 39% increase in the number of billionaires in India in 2021.

• Growing Poor: More than 4.6 crore Indians are estimated to have fallen into extreme poverty in 2020. This is nearly half of the global new poor according to the United Nations.

ü  Also, in the same year, the share of the bottom 50% of the population in national wealth was a mere 6%.

• Unemployment in India has also increased.

CASE STUDY OF TWO GOVERNMENT PROGRAMS AIMED AT POVERTY REDUCTION

PRADHAN MANTRI GRAM SADAK YOJANA (PMGSY)

• PMGSY, state-wise allocations are fixed based on pre-determined gaps in road infrastructure. That automatically ensures more money is released and roads get built.
• PMGSY is less prone to leakage because it is a specific asset-focused programme.

MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME (MGNREGA)

• MGNREGA is supposed to be demand or need-driven, the reality is that it is being successfully implemented only in better-governed states even with lower levels of poverty.
• MGNREGA is general dole-based and not amenable to monitoring beyond a point.

MGNREGA may have a role in mitigating immediate rural distress on account of drought and other unforeseen calamities. But programmes like PMGSY provide more effective long-term poverty alleviation solutions, through raising overall productivity and expansion of non-farm employment opportunities.

BHAGWATI – SEN DEBATE

Bhagwati Model:The idea in the book ” Why Growth Matters: How Economic growth in India reduced Poverty and lessons for other developing countries” is in consonance with Adam Smith’s theory of the invisible hand of the market. It believes that increasing the pie of growth can ultimately lead to an increase in income and consequent development. In other words, it believes in the trickle-down effect.

Amartya’s Sen Model:The idea is propounded in his book ” An uncertain glory: India and its contradiction”. It proposes an increase in the capacity and capability of people as the prime mover of development. Thus Government needs to invest in public health, infrastructure, education and democratic participation. It fosters the idea of a bottom-up approach. The ability of each individual as a change agent. It is about empowerment.

THE WAY FORWARD: ELIMINATING POVERTY IN INDIA

FIXING MINIMUM WAGE 

• Guarantee each citizen a minimum wage consistent with a minimum standard of living.
• In India in 1948, the Minimum Wages Act was passed in pursuance of which minimum wages are being fixed for agricultural labour and labour in what is called the ‘sweated trades’. This is a step which will level up the incomes from below.

SOCIAL SECURITY 

• Introduction of a comprehensive social security scheme guaranteeing to each individual a minimum standard of economic welfare.
• The government includes progressively making school education free; ensuring reduced out-of-pocket expenses on health, and meeting global benchmarks of 6% and 3.5% of GDP on education and public health respectively.
• Strengthening quality public healthcare, strict enforcement of the Right to Education norms, stopping the commercialisation of education and health, and an increased focus on gender budgeting.

PROMOTION OF LABOUR-INTENSIVE MANUFACTURING

• The proportion of the labour force in agriculture has come down, but the workers who have left farms have not got jobs in modern factories or offices. Most are stuck in tiny informal enterprises with abysmal productivity levels.
• If India could somehow reverse this trend and promote labour-intensive manufacturing then inequality could fall.

MORE INCLUSIVE GROWTH

• The promotion and adoption of an Inclusive Growth Agenda is the only solution to the rising inequality problem. Economic growth which is not inclusive will only exacerbate inequality

SKILL DEVELOPMENT

• The development of advanced skills among the youth is a prerequisite if India wants to make use of its demographic dividend. The skilling of youth by increasing investment in education is the only way we can reduce inequality. India needs to become a Skill-led economy

PROGRESSIVE TAXATION

• Higher taxes on the Rich and the luxuries will help reduce income inequalities.
• Getting the richest one per cent in India to pay just 0.5 per cent extra tax on their wealth could raise enough money enough to increase government spending on the heath by 50 per cent

EQUAL OPPORTUNITY FOR ALL

• The Government may devise and set up some sort of machinery which may provide equal opportunities to all rich and poor in getting employment or getting a start in trade and industry.
• In other words, something may be done to eliminate the family influence in the matter of choice of a profession. For example, the government may institute a system of liberal stipends and scholarships, so that even the poorest in the land can acquire the highest education and technical skill.

LEARN FROM OTHER COUNTRIES

China’s case study

• Meta’s narrative for China’s economic development is that its leadership combined the drive for growth with the spreading of human capital.
• As the human capital endowment was relatively equal, most people could share in this growth, which accounts for the relative equality of outcomes in China when compared to India.
• The greater participation of women in the workforce of China

THE CONCLUSION:

India’s dominant economic growth over the last 30 years continued to pull millions of people out of poverty. Due to the unexpected impact of COVID-19, India experienced a spike in its poverty rate. Moving forward, the elimination of poverty in India over the next decade is within reach in spite of the challenges ahead.Rapid economic growth and the use of technology for social sector programs can help make a significant dent in extreme poverty in the country.

MAINS PRACTICE QUESTION:

1. Given India’s stage of development, India must continue to focus on economic growth to lift the poor out of poverty by expanding the overall pie. Comment.
2. Poverty in India is an ever-present problem throughout the country’s history, and unfortunately, it seems that it will continue to be a problem as long as income inequality continues to exist. Suggest measures to reduce income inequality in light of COVID-induced increased inequalities.

THE CONTEXT: According to the latest report released by the global media watchdog, Reporters Without Borders (RSF), India’s ranking in the 2022 World Press Freedom Index has fallen to 150 out of 180 countries. In last year’s report, India was ranked 142. The government has disagreed with the findings of the RSF that ranked India poorly. The government claimed that the report was based on small sample size and gave little or no importance to the “fundamentals of democracy”. This article explains in detail about the World Press Freedom Index and the reasons for the decline in India’s ranking in it.

WHAT IS THE WORLD PRESS FREEDOM INDEX?

• It has been published every year since 2002 by Reporters Sans Frontieres (RSF) or Reporters Without Borders.
• The ranking is based on a country’s performance in five broad categories: political context, legal framework, economic context, sociocultural context and safety of journalists.
• Based in Paris, RSF is an independent NGO with consultative status with the United Nations, UNESCO, the Council of Europe and others.
• The Index ranks countries and regions according to the level of freedom available to journalists. However, it is not an indicator of the quality of journalism.
• Reporters Without Borders index only deals with press freedom and does not measure the quality of journalism in the countries it assesses, nor does it look at human rights violations in general.

Methodology: The score is calculated on the basis of two components:

• A quantitative tally of abuses against journalists in connection with their work, and against media outlets.
• A qualitative analysis of the situation in each country or territory based on the responses of press freedom specialists (including journalists, researchers, academics and human rights defenders) to an RSF questionnaire available in 23 languages.

Each country or territory’s score is evaluated using five contextual indicators that reflect the press freedom situation in all of its complexity: political context, legal framework, economic context, sociocultural context and safety.

A subsidiary score ranging from 0 to 100 is calculated for each indicator. All of the subsidiary scores contribute equally to the global score. And within each indicator, all the questions and subquestions have equal weight.

FIVE BROAD CATEGORIES

POLITICAL CONTEXT

• The degree of support and respect for media autonomy vis-à-vis political pressure from the state or from other political actors.
• The level of acceptance of a variety of journalistic approaches satisfying professional standards, including politically aligned approaches and independent approaches.
• The degree of support for the media in their role of holding politicians and government to account.

LEGAL FRAMEWORK

• The degree to which journalists and media are free to work without censorship or judicial sanctions.
• The ability to access information without discrimination, and the ability to protect sources.
• The presence or absence of impunity for those responsible for acts of violence against journalists.

ECONOMIC CONTEXT

• Economic constraints linked to governmental policies (including the difficulty of creating a news media outlet, favouritism in the allocation of state subsidies.
• Economic constraints linked to non-state actors (advertisers and commercial partners).
• Economic constraints linked to media owners seeking to promote or defend their business interests.

SOCIO-CULTURAL CONTEXT

• Social constraints resulting from denigration and attacks on the press based on such issues as gender, class, ethnicity and religion.
• Cultural constraints, including pressure on journalists to not question certain bastions of power or influence or not cover certain issues.

SAFETY

Ability to gather news without unnecessary risk of:

• Bodily harm (including murder, violence, arrest, detention and abduction)
• The psychological or emotional distress that could result from intimidation, coercion, harassment, surveillance, doxing (publication of personal information with malicious intent), degrading or hateful speech, smears and other threats targeting journalists.
• Professional harm resulting from, for example, the loss of one’s job, the confiscation of professional equipment, or the ransacking of installations.

PERFORMANCE OF INDIA THROUGH GRAPHICAL REPRESENTATION

The chart shows India’s rankings across various categories in 2022. India ranked best in the legal framework category and worst in the safety of journalists category.

The chart shows India’s rank in the Press Freedom Index. While India has ranked consistently low over the past few years, its rank in 2022 plunged to the lowest the country has ever seen.

MAJOR FINDINGS OF THE REPORT

GLOBAL SCENARIO

• According to the World Press Freedom Index:2022, Norway (1st) Denmark (2nd), Sweden (3rd) Estonia (4th), and Finland (5th) grabbed the top five positions.
• North Korea, on the other hand, remained at the bottom of Reporters Without Borders’ list of 180 countries and territories.
• Russia was ranked 155th, down from 150th last year, while China advanced two places to 175th, according to Reporters Without Borders. China was ranked 177th in the world last year.

INDIA’S PERFORMANCE

• India has fallen eight places from 142nd to 150th in 2022 among the 180 countries.
• India’s position has been consistently falling in the index since 2016 when it was ranked 133.
• The reasons behind the fall in the ranking are the increased “violence against journalists” and a “politically partisan media”.
• The ranking categorized India as “one of the world’s most dangerous countries” for journalists, with an average of three or four journalists being assaulted in the course of their work each year.

INDIA’S NEIGHBOURS

• China was ranked at 175th position.
• The index placed Pakistan in 157th position, Sri Lanka in 146th, Bangladesh in 162nd and Myanmar in 176th position.
• Nepal has climbed up by 30 points in the global ranking at 76th position.

REASONS FOR THE DECLINE IN INDIA’S RANKING

POLITICAL MOTIVATION

• The report mentions that Indian authorities have targeted journalists and online critics in recent times driven by political motivation.
• The report further highlighted that women journalists critical of the government face a growing backlash on social media, including rape and death threats.

WRONGFUL PROSECUTION

• It also talked about journalists getting prosecuted under counterterrorism and sedition laws thereby cracking down on dissent.

THREATS AND VIOLENCE

• According to the report, India is also one of the world’s most dangerous countries for media persons.
• Journalists are exposed to all kinds of physical violence including police violence, ambushes by political activists, and deadly reprisals by criminal groups or corrupt local officials.
• The report says authorities have arrested journalists on spurious terrorism and sedition charges, and have routinely targeted critics and independent news organizations, including raiding their workplaces.

FAULTS IN POLICY FRAMEWORK

• Although the policy framework is protective in theory, it resorts to using defamation, sedition, contempt of court, and endangering national security against journalists critical of the government, branding them as “anti-national.”

KASHMIR ISSUE

• The extended ban on the internet in Jammu and Kashmir, and allegedly arbitrary suspension of Twitter accounts of those speaking against the government, were given as evidence of the government tightening its grip on media.

CRITICISM OF THE INDEX

• Multiple countries and commentators have raised concerns with both the WPFI criteria, and methodology and also about RSF’s perceived biases, lack of objectivity in ranking and lack of transparency. One of the primary concerns raised has been the opaqueness of the WPFI survey.
• Question-wise or category-wise scores used in computing scores for the five parameters are not made public, nor is the list of respondents provided.
• Similarly, credible sources are not available for quantitative data on abuse and violence against journalists, nor is any attempt made to clarify such data with Government or country-wise sources in any of the countries being ranked. When a limited sample of approximately 150 respondents and 18 NGOs are asked to analyse and respond to 83 questions for each country, the chances of biases and disconnect with the realities are high. Multiple countries and commentators have raised concerns with both the WPFI criteria and methodology and also about RSF’s perceived biases, lack of objectivity in ranking and lack of transparency.
• The Press Council of India (PCI), which acts as a watchdog of the press, by the press and for the press had rejected India’s ranking in the 2018 WPFI, stating that there was a lack of clarity on the inputs for the rankings, which were based solely on the perception and not on statistical data.
• Also when India’s rank is seen in the context of other countries, it may be noted that some of the most oppressive, authoritative regimes have found a place way ahead of India. RSF, this year, gained the audacity to put countries known for purging press freedom, killing journalists and reporters such as UAE, Hong Kong and Mexico way above India in its latest Press Freedom Index.

STATE OF PRESS FREEDOM IN INDIA

• Freedom of the press in India is subject to certain restrictions, such as defamation law, a lack of protection for whistleblowers, barriers to information access and constraints caused by public and government hostility to journalists. The press, including print, television, radio, and internet are nominally amended to express their concerns under the selected provisions such as Article-19 (which became effective from 1950), though it states freedom of “occupation, trade or business” and “freedom of speech and expression” without naming “press” in clause “a” and “g”. The article allows a journalist or media industries to cover any story and bring it to the audiences without impacting the national security of the country.
• To protect the intellectual, moral, and fundamental rights of the citizens, the government has taken several countermeasures to combat circulating fake news and restricting objectionable contents across the multiple platforms. The law of India prohibits spreading or publishing fake news through social or mass media, and could lead to imprisonment of a journalist or newspaper ban.
• The country’s news outlets and their associated journalists were allegedly charged with sedition and criminal prosecution charges by the authorities.
• The International Press Institute (IPI), an international organizations dedicated to the improvement of journalistic practices, claims that the government of India is responsible for restricting journalists covering COVID-19 pandemic-related reports in the country.
• In 2021, seven journalists were imprisoned in India, the highest in the last 3 decades.Data show that journalists enjoy less freedom than citizens in the country.At least three journalists were killed in 2017 in connection with their jobs.
• Reporters Without Borders stated Gauri Lankesh a proponent of secularism and a critic of right-wing forces was shot dead outside her house. A member of a Hindu nationalist group was arrested for killing Lankesh.
•  A report stated that between 2014 and 2019, 40 journalists were killed and at least 198 severe attacks on journalists were reported, of which, 36 occurred in 2019 alone.
• The media have consistently upheld the personality cult of the leaders since the country’s formation. It reported on the activities of the leader, regularly reporting on their political campaigns, frequently including “advertisements” to ruling parties through radio, television and Newspaper display ads.

THE WAY FORWARD:

TRANSPARENT AND UNBIASED INDEX

• Concerns have been raised with both the WPFI criteria, methodology and also about RSF’s perceived biases, lack of objectivity in ranking and lack of transparency. One of the primary concerns raised has been the opaqueness of the WPFI survey. Thus RSF needs to resolve this issues and need to make the index more transparent and unbiased.

PROPER DEFINITION

• RSF should update its definition of press and account in its ranking methodology for differences between print, electronic and TV journalists, and social media commentators.

FREEDOM OF EXPRESSION

• The Indian state should respect the right to freedom of expression and freedom of media (Article 19), which is the fourth pillar of democracy. However, Freedom of the press is also not absolute.

IMPARTIAL INVESTIGATIONS

• Concerned authorities should conduct independent and impartial investigations into allegations of threats and attacks targeting journalists and critics.

INDEPENDENT REGULATORY BODIES

• There is a need to establish independent press councils, media watch groups, ombudsmen, and other media self‐regulatory bodies autonomous from the government.

REGULATION FRAMEWORK

• There are disastrous effects of misinformation chaos including globalised and unregulated online information spaces that encourage fake news and propaganda. The state should have a robust regulatory framework for the same.

PRESS AND DEMOCRACY

• Freedom of the press is crucial to the functioning of a vibrant democracy hence the government should ensure its wellbeing

PROPER GUIDELINES

• The government should lay guidelines for the frequent internet shutdowns and promote scientifically verifiable facts rather than misinformation on the digital platforms.

THE CONCLUSION: SDG Target 16.10 enjoins governments and all stakeholders to ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements. An objective measure of press freedom across countries and a well-coordinated multi-stakeholder approach towards establishing press freedoms are essential towards improving democratic outcomes like transparency, accountability, people’s participation etc. With these overarching goals in mind, Reporters Without Borders must use its unique position and expertise to evolve a globally acceptable definition of press freedom by engaging with all countries which it ranks and strive to remove inconsistencies and biases in its ranking methodology and provide clarity on its funding sources. Also with systemic censorship on the rise and journalists facing constant threats from the government as well as other political outfits, the future of independent journalism in India today is in the hands of those institutions that have been struggling to retain their independence and promote journalistic rights: most importantly the courts, but also editors and journalists’ associations and independent news media themselves.

VALUE ADDITION

WORLD PRESS FREEDOM DAY

• The day was proclaimed by the UN General Assembly in 1993, following the recommendation of UNESCO’s General Conference in 1991.
• The day also marks the 1991 Windhoek Declaration (adopted by UNESCO).
• It aimed toward the ‘development of a free, independent and pluralistic press’.
• The theme for 2022:Journalism under digital siege

FREEDOM OF PRESS IN INDIA

• The Constitution, the supreme law of the land, guarantees freedom of speech and expression under Article 19, which deals with ‘Protection of certain rights regarding freedom of speech, etc.
• Freedom of the press is not expressly protected by the Indian legal system but it is impliedly protected under article 19(1) (a) of the constitution, which states – “All citizens shall have the right to freedom of speech and expression”.
• In 1950, the Supreme Court in Romesh Thappar v. State of Madras observed that freedom of the press lay at the foundation of all democratic organisations.
• However, Freedom of the press is also not absolute. It faces certain restrictions under Article 19(2), which are as follows-

Matters related to interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality or in relation to contempt of court, defamation or incitement to an offence.

QUESTION FOR MAINS EXAMINATION:

1. Discuss the salient features of the World Press Freedom Index. How far do you agree with the view that the press freedom in India is on a continuous decline as reflected in the Index?
2. India’s ranking is continuously declining in the world press freedom index. Analyse the reasons behind it and also suggest measures to ensure the freedom of the press in the country.

THE CONTEXT: In May 2022, the Ministry of Electronics and Information Technology (MeitY) released a revised Draft National Data Governance Framework Policy(NDGFP). This policy aims to enhance access, quality, and use of data, in line with the current and emerging technology needs. In this article, we will study the important aspects of this policy from the UPSC examination perspective.

THE RATIONALE FOR THE NDGFP

DIGITALISING THE GOVERNMENT

• The goal of the government is to provide better and more responsive governance to Indian residents.
• This depends on the ability to use data to guide governance, programme evaluation, and service delivery.
• This data-driven governance is a key component of the government’s Digital Government strategy which requires a comprehensive policy.

HARNESS THE POWER OF DATA

• The government data is currently managed, stored and accessed in differing and inconsistent ways across different government entities.
• This reduces the efficacy of data-driven governance, and prevents an innovative ecosystem of data science, analytics etc.
• The power of this data must be harnessed for more effective Digital Government, public good and innovation.
• This requires a National Data Governance Framework Policy (NDGFP).

POST-COVID DIGITISATION

• In the post-COVID-19 era, the digitization of government is accelerating faster.
• With this accelerated digitization, the volume and velocity of data generated is also increasing exponentially.
• This data can be used in turn to improve citizens’ experience and engagement with the government and governance as a Digital Nagrik.

CRITICISM OF EARLIER DRAFT

• The NDGFP comes after strong criticism of the previous ‘Draft India Data Accessibility and Use Policy, 2022’, which was opened for public consultation in February 2022.
• It proposed to permit the licensing and sale of public data by the government to the private sector, which was strongly criticized.(READ AHEAD).

DRAFT INDIA DATA ACCESSIBILITY AND USE POLICY, 2022

The original Draft India Data Accessibility and Use Policy, 2022 was heavily criticised for its price and licencing features, which allowed the government to profit from databases.  It was stated in the draft that, detailed datasets which have undergone ‘value addition/transformation’ and qualify for monetization, may be priced appropriately.The document, however, did not go into detail about the value enhancements that were being considered or the qualifying criteria that would allow these datasets to be marketed. It was also pointed out that allowing government departments/agencies to monetize datasets would go against the policy’s purpose, which is to create an open and accessible database. The NDGFP does not have these pricing and licencing restrictions. Furthermore, while the previous draft stated that certain datasets classed as negative list datasets would be non-shareable, this is no longer the case in the new Draft.

THE OBJECTIVES OF THE NDGFP

• To modernize and transform government data collection and management processes and systems with the goal of improving governance through a whole-of-government approach to data-driven governance.
• To have standardized data management and security standards across the whole Government;
• To promote transparency, accountability, and ownership in non-personal data and datasets access. For purposes of safety and trust, any non-personal data sharing by any entity can be only via platforms designated and authorized by Indian Data management Office(IDMO).
• To build a platform that will allow dataset requests to be received and processed.
• To build Digital Government goals and capacity, knowledge and competency in Government departments and entities.
• To set quality standards and promote the expansion of India datasets program and overall non-personal datasets ecosystem.
• To ensure greater citizen awareness, participation and engagement.

THE SALIENT FEATURES OF THE NDGFP

APPLICABILITY

• This Policy will be applicable to all Central Government departments and entities.
• The rules and standards prescribed will cover all data collected and being managed by any government entity,
• This policy shall be applicable to all non-personal datasets, rules, and standards governing its access and use by researchers and startups.
• State Governments shall be encouraged to adopt the provisions of the policy and rules, standards, and protocols.

DATA PRIVACY AND SECURITY

• The NDGFP standards and rules will ensure data security and informational privacy.

INSTITUTIONAL FRAMEWORK

• An “India Data Management Office (IDMO)” shall be set up under the Digital India Corporation (“DIC”) under MeitY and shall be responsible for framing, managing and periodically reviewing and revising the policy.

THE FUNCTIONS OF THE INDIA DATA MANAGEMENT OFFICE (IDMO)

IDENTIFICATION OF DATASETS

• IDMO, which will be the policy monitoring and enforcement agency shall prescribe rules and standards for government entities to identify and classify the datasets available to them and build a vibrant and large database of the datasets.

DATA STORAGE AND RETENTION RULES

• An evolving set of data storage and retention standards shall be specified by IDMO for standardizing them across Government entities.

DATA ANONYMIZATION STANDARDS AND RULES

• Further to the identification of datasets, rules and standards for data anonymization (for both government and private bodies) shall be developed by IDMO to ensure the informational privacy of the data.

FINALIZE METADATA STANDARDS

• Metadata standards and data quality standards shall be finalized by IDMO that cut across sectors.
• IDMO shall also take steps to ensure compliance with the relevant domain-specific standards by Ministries/ Line Departments.

INDIA DATA SETS PLATFORM

• The IDMO shall design, operate and manage the India Datasets Platform.
• This will process requests and provide access to the non-personal and/or anonymized datasets to Indian researchers and Start-ups

PROTOCOL NOTIFICATION

• IDMO shall notify protocols for sharing of non-personal datasets while ensuring privacy, security and trust.
• Rules to provide data on priority or exclusively to Indian/India-based requesting entities shall also be developed

OTHERS

• Publishing disclosure norms for large-size datasets, ensuring ethical and fair use of data, establishing a framework for user charges, coordination and capacity building, setting up a grievance redressal mechanism etc will be other functions of IDMO.

WHAT ARE THE CONCERNS ASSOCIATED WITH THE DRAFT POLICY?

CRUCIAL MISSING DETAILS

• Details of data privacy, security, intellectual property, data monopoly etc appear sketchy.
• This is because the draft merely lays out broad parameters and the precise conditions of this data-sharing regime have yet to be revealed.
• The NDGFP draft states that its standards and rules will ensure data security and information privacy, but doesn’t state in detail how the government plans to safeguard data privacy.

LACK OF A DATA PROTECTION LAW

• The Data Protection Bill, 2021 has not been passed and the regulations for the protection of non-personal data are not finalized which can create challenges in policy implementation.

POTENTIAL PRIVACY BREACHES

• No technical threshold for data anonymization is specified and hence it will not be possible to categorically stipulate what constitutes anonymized data, leading to privacy breaches.

USER CHARGES AND DATA MONOPOLY

• The NDGFP has done away with the ‘monetization’ provisions of the previous Draft India Data Accessibility and Use Policy.
• But the current emphasis on “user charges” may not ensure a non-monopolistic data market fair for all market players.

IMPLEMENTATION CHALLENGES

• Streamlining data sets across government agencies and breaking down data silos is a massive challenge for the government.
• This will necessitate transformative capacity creation, as well as changes in government officials’ behaviour which is a monumental task.

PRIVATE PLAYERS’ PARTICIPATION

• Private entities acquire and retain enormous amounts of personal data; if this data is anonymized and provided to the platform, the benefits of the repository generated can be maximized.
• However, this initiative may not entice private firms to participate voluntarily without any incentives or benefits being supplied in exchange.

IGNORE THE EXPERT GROUP STUDY

• An expert group has already identified concerns linked with non-personal data in its study.
• It stated that no anonymization technique is perfect and that privacy concerns arising from the potential re-identification of anonymized personal data should be addressed.
• However, the amended text makes no mention of this.

THE WAY FORWARD:

1. The Draft may be revised according to suggestions received from relevant stakeholders to address the concerns raised and to bring further improvements.
2. The passing of the Data Protection Law and other regulations need to be fast-tracked and simultaneously implemented with the NDGFP.
3. As the IDMO is proposed to a powerful central body, its composition in a fair manner is crucial to ensure transparency and privacy of individuals which as per the current Draft is not satisfactorily explained.
4. The Draft says that the IDMO shall formulate all data/datasets/metadata rules, standards, and guidelines in consultation with Ministries, State Governments, and industry. This must be done in letter and spirit in a meaningful manner.
5. Nudging of private players who has a large amount of non-personal data to enthusiastically participate in the programme through incentives etc. can be explored.
6. Structural reforms in government departments are long overdue without which the whole-of-the-government approach to data governance might remain sub-optimal. Also, the bureaucratic pathologies/dysfunctionalities leading to behavioural issues need to be overcome.

THE CONCLUSION: Although the NDGFP and the previous draft are structurally similar, the NDGFP appears to be a step forward because it does not include the contentious data licensing and price clauses. The NDGFP indicates that the Indian government recognizes the enormous value that can be extracted from non-personal data.Specific laws managing data anonymization standards, rules governing conditions of access to such data by private actors, etc. will be critical to creating a secure and transparent data regime and thereby realising the goals of the policy.

Questions:

1. Critically analyze the Draft National Data Governance Framework Policy, 2022.
2. “Data has become a critical resource for the economy and is the key for advancing decision making, governance and service delivery by government and private sector”. How far do you think that the Draft National Data Governance Framework Policy, 2022 can achieve these objectives?

“A whole-of-the-government approach to data governance needs to go beyond mere techno-policy interventions “. Argue.

THE CONTEXT:In the recent past various State governments have passed bills to take away the powers of the Governor as the chancellor of the State universities, driven by the opinion that the Governor’s role in State-run universities needs to be minimized. Apart from Tamil Nadu, the governments of West Bengal, Maharashtra and Kerala have expressed concerns over the Governors’ excessive intervention in the functioning of State universities.The area of conflict here is the appointment of vice-chancellors and the functioning of universities. This article analyses the issue which adds another potential flash point in the Governor – State government relations.

THE HISTORY OF THE ISSUE

• The practice of appointing the Governor as ex-officio chancellor of universities dates to the pre-Independence era. The foundation was laid down in the dispatch of Sir Charles Wood in 1854 to the court of directors described as ‘The Magna Carta of English Education’ in India.
• This document led the Court of Directors to deliberate that it was perhaps time to establish Indian universities modelled on the London University. Consequently, the universities of Calcutta, Bombay and Madras were established in 1857. These universities like the university back in London consisted of a chancellor, vice-chancellor and a senate. The Governor-General of British India was the chancellor of Calcutta University and the Governors of Bombay and Madras headed their State universities.
• After Independence, whenever a State university is established, it is done with the help of legislation passed by the State assembly. The statute unequivocally incorporates this vestigial provision of making the Governor of that State its ex-officio chancellor. And this is why the Governor, to date, exercises the power to appoint vice-chancellors. However, what we need to note is that post-Independence, the Governor is a constitutional functionary.

THE RECENT AMENDMENTS AND DEVELOPMENTS

TAMIL NADU

• The Tamil Nadu Universities Laws (Amendment) Act, 2022, substitutes the expression “chancellor” in the original Act with “government” with regards to both appointment and removal of VCs. The Bills seeking to amend the process of appointment of VCs in the State universities underline that “every appointment of the vice-chancellor shall be made by the government from out of a panel of three names” recommended by a search-cum-selection committee.
• A separate bill to amend the Chennai University Act, 1923 [Chennai University (Amendment) Act, 2022], with similar intent, was passed by the House.Currently, the Governor, in his capacity as the chancellor of State universities, has the power to pick a VC from the shortlisted names. The bills also seek to empower the State government to have the final word on the removal of VCs, if needed.
• Removal will be carried out based on inquiries by a retired High Court judge or a bureaucrat who has served at least as a Chief Secretary.

MAHARASHTRA

• In December 2021, the Maharashtra Assembly passed a bill amending the Maharashtra Public Universities Act, 2016.
• Under the original Act, the Maharashtra government had no say in the appointment of VCs. If the changes take effect, the Governor will be given two names to choose from by the State government.

WEST BENGAL

• In 2019, the West Bengal government reduced the Governor’s authority in appointing VCs to State universities. The government issued a gazette notification West Bengal State Universities (Terms and Conditions of Service of the Vice Chancellor & the Manner and Procedure of Official Communication) Rules, 2019; that abolished the chancellor’s secretariat, reduced the chancellor’s role in choosing vice-chancellors, took away his power to convene meeting of the highest bodies of the universities or take action against vice-chancellors.
• The new rules also Stated that in case of appointment of the vice chancellor of a university, the chancellor shall maintain the order of preference of names placed before him,” as against when the government used to send three names to the governor who was free to choose any one. The rules were notified in the name of the Governor since he is the constitutional head of the State.
• In June 2022, the State Legislative Assembly passed the West Bengal University Laws (Amendment) Bill, which seeks to replace the Governor, with the CM as the Chancellor of State-run universities. Ironically, the Bill will become law only after it receives Governor’s assent.

KERALA

• In December 2021, in an unprecedented move, Kerala Governor asked Chief Minister to take over as the chancellor of the universities, a post held by the Governor in the State, “so that nobody would question the political appointments and interference in the universities”.
• The case was related to the Vice-Chancellor of Kannur University Prof Gopinath Ravindran who was re-appointed for another four years even after issuing a notification for a fresh appointment.

THREE BROAD WAYS OF APPOINTING THE V-Cs IN A STATE UNIVERSITY

DISCRETION OF THE GOVERNOR

• Appointment of the V-C in a State University is the statutory power of the Governor, endowed over him either by any State law or by the statute of the university itself. In such a scenario, the Governor appoints the VC at his discretion after having suggestions by the search committee.
• Eg: Earlier Maharashtra Government had no say in the appointment of the VC and hence the bill was passed in 2021 to take away the statutory power of the Governor although it has not become a law yet.

BY THE COUNCIL OF MINISTERS OF THE STATE

• The VC of a State university is appointed by the Council of Ministers of the State headed by the Chief Minister. The CoM may/may not constitute the search-cum-selection committee for the purpose.
• The Telangana Universities Act, 1991 States that the search committee shall “submit a panel of three persons to the Government in alphabetical order and the Government shall appoint the Vice-Chancellor from out of the said panel”.
• The Gujarat University Act, 1949 also States that “the vice-chancellor shall be appointed by the State government from amongst three persons recommended by a (search-cum-selection) committee”

BOTH THE GOVERNOR AND CoM PARTICIPATE IN DECISION MAKING

• The Governor chooses from a list of potential VCs submitted by the CoM.
• In Andhra Pradesh and Karnataka, the vice-chancellors were appointed by the Governor from the list of three names recommended by the search committee and with the approval of the State government.
• Incident: In April 2022, Karnataka High Court quashed the appointment of Prof KR Venugopal as Vice-Chancellor of Bangalore University. The order Stated that the appointment had been made by the Governor without the concurrence of the State government. The Supreme Court stayed the Karnataka High Court order and the matter is sub-judice.

 ROLE AND POWERS OF THE GOVERNOR AS THE CHANCELLOR OF THE STATE UNIVERSITIES

The Governor of a State is the Chancellor of State Universities including General Universities, Agricultural Universities, Technical Universities, Medical Universities and also Deemed-to-be universities. The Chancellor, by virtue of his office, is a Head of the University and is vested with various powers:

• Appoints the Vice-Chancellors by setting up a search committee, which recommends a panel of names from which he/ she makes the final selection and appointment. Consequently, Chancellor is also vested with the authority to grant leave or institute disciplinary action and award penalties.
• Power to nominate certain members to the Executive Council/ Court of the University.
• Chancellor as the appellate authority has the power to annul decisions of the various university bodies/ authorities which in his view, is against the Act, statutes, ordinances and regulations.
• Power to assent or withhold assent to the statutes and other regulations passed by the Executive Council of the university submitted to the Chancellor for assent.
• Power to hear memorandum and representation of the employees and students.
• Power to take final decisions on election disputes with regard to the representation in different bodies of the universities and managing committees of its colleges.
• Power to nominate experts in the appointment of teachers of various categories in the university.
• Power to preside over the convocation of the university and meeting of its Court/ Senate.
• In order to draw the attention of the Government and streamline the academic session and improve the standard of University Education, convenes review meetings of Vice-Chancellors and concerned ministries.
• The Chancellor shall have also such other power as may be conferred on him by or under Act or the Statute.

IN THE CASE OF CENTRAL UNIVERSITIES

• Under the Central Universities Act, 2009, and other statutes, the President of India shall be the Visitor of a central university.
• With their role limited to presiding over convocations, Chancellors in central universities are titular heads, who are appointed by the President in his capacity as a Visitor.
• The Vice-Chancellor too is appointed by the Visitor from panels of names picked by search and selection committees formed by the Union government.
• The Act adds that the President, as Visitor, shall have the right to authorise inspections of academic and non-academic aspects of the universities and also to institute inquiries.

ROLE OF UNIVERSITY GRANTS COMMISSION

• Education comes under the Concurrent List, but coordination and determination of standards in institutions for higher education or research and scientific and technical institutions come under entry 66 of the Union List.
• The UGC plays that standard-setting role, even in the case of appointments in universities and colleges.
• According to the UGC Regulations, 2018, the “Visitor/Chancellor” (mostly the Governor in States) shall appoint the VC out of the panel of names recommended by search-cum-selection committees.
• Higher educational institutions, particularly those that get UGC funds, are mandated to follow its regulations. These are usually followed without friction in the case of central universities but are sometimes resisted by the States in the case of State universities.

 THE NEED FOR SUCH LAWS BY STATE LEGISLATURES

LACK OF CONSULTATION

• The tradition for the Governor to appoint the vice-chancellors in consultation with the State government is witnessing a change in the recent past.

ADMINISTRATIVE IRREGULARITIES

• The inability of the elected government to appoint a vice-chancellor of its own university was causing various irregularities in the overall administration of the varsity.

POWER CLASH

• Governors should not be vested with the powers that were not mentioned by the Constitution (appointing vice-chancellors) as it would lead to a clash of functions and powers between the State government and the Governor.

AT THE BEHEST OF THE CENTRE

• The elected governments have repeatedly accused the Governors of acting as per the wish of the Centre on various subjects, including education.

 OTHER FRICTION POINTS IN GOVERNOR-STATE LEGISLATURE RELATIONS

In recent years, these have been largely about the selection of the party to form a government, the deadline for proving the majority, sitting on Bills, and passing negative remarks on the State administration. For instance:

MAHARASHTRA

• The State government and the Governor were at odds in 2021 regarding the appointment of 12 MLCs as Governor Nominees.
• In 2019 the Governor invited a leader and administered him oath as CM. This government lasted just 80 hours.
• The Governor also stalled the election of a Speaker since the post fell vacant in February 2021.

RAJASTHAN 

• In 2020 when the State cabinet decided to convene the assembly and communicated that decision to the Governor to sign the order of summons, the Governor kept it pending and has kept sending a series of questions to the government seeking clarifications on the agenda of the house, etc.
• There was, thus, arose a question of great significance in relation to the powers and function of the Governor vis-à-vis the elected government of a State and legislature.

KERALA

• In December 2020, Kerala Governor turned down a request to summon a special sitting of the Assembly to debate the three central farm laws.

TAMIL NADU

• The steps taken by the Governor in regard to the NEET exemption Bill and the clemency petition of Mr Perarivalan had created quite a stir in the recent past.

THE ANALYSIS:

Governor is vested with Constitutional as well as Statutory powers and both of his roles have become controversial in the recent past. As the constitutional head of the State, Governor is bound by the advice of his Council of Ministers (CoM) and functions as a vital link between the Union Government and the State Government.In regard to his statutory powers, he is expected to act according to the statute books. The contestation in both these cases arises when he/she inclines toward any political party lines which usually happens when the ruling party at the Centre and the State are different.

The contemporary controversies have mostly been around the issues of selecting the chief minister, determining the timing for proving legislative majority, demanding information about day-to-day administration, taking an apparently long time in giving assent to bills or reserving bills for the President, commenting adversely on specific policies of the State government and exercising powers of the Governor as the chancellor of State universities. The controversies are not new but given that we have a single-party majority government at the Centre, the States have alleged the undue pressure from the Centre.

In the background of present controversies we need to understand that the Governor is the appointed head of the State and not the representative of the people, he cannot be held accountable for the issues of administration and any other disaffection among the people. The present disputes are more or less related to the political contestations and not to the autonomy, accountability and transparency required for academic excellence. Education being in the Concurrent List of the Schedule 7 calls for the cooperative mechanism between the Centre and the States to take the nation forward.

SOME INTERNATIONAL PRACTICES

The selection of vice chancellors ought to be based on the principle of open impartiality and political non-interference which most of the Western countries seems to follow, barring a few. For instance:

• The collegiums of professors elect the vice chancellor in Germany and France.
• The university council elects the vice chancellor.
• In the United States (US), the board of trustees searches and appoints the vice chancellor.

Ø  The government appoints the vice chancellor in Sweden.

VARIOUS COMMITTEE/COMMISSION RECOMMENDATIONS

JUSTICE R.S. SARKARIA COMMISSION (1988)

• It acknowledged the distinction between the Governor’s constitutional role and the statutory role performed as a Chancellor and also underlined that the Chancellor is not obliged to seek the government’s advice.

JUSTICE M.M. PUNCHHI COMMISSION (2010)

• The Commission was quite forthcoming in its 2010 report. Noting that the Governor should not be “burdened with positions and powers… which may expose the office to controversies or public criticism”, it advised against conferring statutory powers on the Governor.

KEY OBSERVATIONS BY THE COURTS VIS A VIS THE STATUTORY POWERS OF THE GOVERNOR

1. The full bench of the High Court of Punjab & Haryana in Hardwari Lal vs G D Tapase (1981) has held that the Governor has an independent existence and the office held by him is statutory in nature as distinct from the constitutional office of the Governor.
2. The Supreme Court has also affirmed in Bhuri Nath vs State of J&K (1997) that when Governors are entrusted with powers derived from statutes in an official capacity, they are not to act on the aid and advice of the council of ministers making a distinction between the two types of offices.
3. Most recently the Supreme Court had in March 2022 made some pertinent, though unrelated to the current dispute, observations while setting aside the appointment of the VC of Gujarat’s SP University by the State government. The court said that “any appointment as a Vice-Chancellor contrary to the provisions of the UGC Regulations can be said to be in violation of the statutory provisions, warranting a writ of quo warranto.” The apex court also held that in case of any conflict between State legislation and Central legislation, Central legislation shall prevail by applying the rule/principle of repugnancy as enunciated in Article 254 of the Constitution as the subject ‘education’ is in the Concurrent List of the Seventh Schedule of the Constitution.”

THE WAY FORWARD:

1. The recommendations of the Punchhi Commission to save the office of the Governor from any statutory functions not mentioned in the Constitution shall be accepted.
2. President Ramnath Kovind at the 51st Conference of Governors, Lieutenant Governors and Administrators called upon the heads of States to play the role of a friend, a philosopher and a guide to the State government. The persons holding the post of Governor shall act in line with such advice rendered by the President.
3. Governor as a State University Chancellor is in a way result of colonial hangover which shall be done away with. However, State governments should also try to find alternative means of protecting university autonomy so that the governments do not exercise undue influence on the functioning of universities.
4. Appointment and removal of Governor: Venkatachaliah Commission (2002) recommended that the Governor’s appointment should be entrusted to a committee comprising the prime minister, the home minister, the speaker of the Lok Sabha and the chief minister of the concerned State, if Governor to be removed before completion of the term, the central government should do so only after consultation with the Chief Minister.Punchhi Commission (2010) also recommended that the phrase “during the pleasure of the President” should be deleted from the Constitution; Governor should be removed only by a resolution of the State legislature.
5. At times judiciary has also come to the rescue of the office of the Governor and made judgments that in a way were meant to ascertain the dignity of the office like in SR Bommai vs. Union of India, 1994, Rameshwar Prasad Case, 2006 etc. These judicial pronouncements are in a way guiding light for the incumbent persons holding the office of the Governor and should act on wisdom.
6. It goes without saying that unless the Centre and States work based on cooperative federalism principles, the Governors’ position will keep attracting controversies. Hence, both Centre and State need to functions as partners in the development and governance process of the country.

THE CONCLUSION:The insightful and responsible recommendations made by the committees and commissions examining Centre-State relations have created widespread public sensitivity and opinion regarding various wrongdoings of the Centre through the office of the Governor which have proved to be damaging to the essential federal structure in India. There is little doubt that the provision of autonomy to academic institutions is one of the international benchmarks of a good institution, but we need to balance it with our social realities. It will achieve its desired effect only if any transformation goes beyond merely being ornamental or ascertaining the win in a political tussle.

MAINS PRACTICE QUESTIONS:

1. If we want our academic institutions to improve and feature higher in world rankings, we need to think beyond CMs and Governors as chancellors. Comment.
2. Many undesirable actions, from the standpoint of the federal and democratic constitutional systems that Governors often at times engage in, could be the result of the uncertainty of tenure that they suffer from. Critically examine.
3. ‘Constitutional functions of the Governor are different from his/her statutory functions. Hence the Governor can act independently of aid and advice by CoM while performing the latter roles.’ Examine the Statement in light of recent controversies related to the Governor as Chancellors in the State universities.

THE CONTEXT:On May 18, the Supreme Court invoked its extraordinary powers to do complete justice under Article 142 of the Constitution and ordered the release of A.G. Perarivalan, a convict in the assassination of former Prime Minister Rajiv Gandhi. The Court took this step owing to the delay in deciding the clemency petition and reference of the same to the President by the Governor of Tamilnadu. In this article, we will analyze this issue in detail.

A BRIEF OVERVIEW OF THE JUDGMENT OF THE SUPREME COURT

The Court was answering two questions essentially:

1. Whether the Governor can make such a reference to the President?
2. Whether the primacy accorded to the Centre’s opinion under the CrPC can be extended even to remission that may be granted by the Governor under Article 161.

The Court answered these questions in the following way, which are explained in the table below:

BINDING NATURE OF ADVICE

• The law laid down by a series of judgments of the Court is well-settled that the advice of the State Cabinet is binding on the Governor in the exercise of his powers under Article 161 of the Constitution.

SCOPE OF JUDICIAL REVIEW

• Non-exercise of the power under Article 161 or inexplicable delay in exercise of such power not attributable to the prisoner is subject to judicial review by this Court.

PRESIDENTIAL REFERENCE UNCONSTITUTIONAL

• The reference of the recommendation of the Tamil Nadu Cabinet by the Governor to the President of India two and a half years after such a recommendation had been made is without any constitutional backing.
• It is inimical to the scheme of our Constitution, whereby “the Governor is but a shorthand expression for the State Government”, as observed by this Court in Maruram Vs UoI 1980.

UNION HAS NO EXECUTIVE POWER

• No express executive power has been conferred on the Centre either under the Constitution or law made by the Parliament in relation to Section 302.
• In the absence of such specific conferment, it is the executive power of the State that extends with respect to Section 302, assuming that the subject matter of Section 302 is covered by Entry 1 of List III.

FIT CASE FOR ARTICLE 142

• The Court has considered the appellant’s prolonged period of incarceration etc., and the pendency of his petition under Article 161 for two and a half years after the recommendation of the State Cabinet.
• Hence, in the exercise of its power under Article 142 of the Constitution, the Court directed that the appellant is deemed to have served a sentence in connection with the crime and set him free.

BACK TO BASICS-THE CLEMENCY POWER OF THE PRESIDENT AND THE GOVERNOR

THE PRESIDENT

•  Article 72 deals with the clemency power of the President of India. This power extends to:

in all cases where the punishment or sentence is by a Court Martial;

in all cases where the punishment or sentence is for an offence against any law relating to a matter to which the executive power of the Union extends;

in all cases where the sentence is a sentence of death.

• This power should be exercised on the advice tendered by the executive to the President, who, subject to the provisions of Article 74(1), must act in accordance with such advice.
• In several cases, the Supreme Court (SC) has ruled that when deciding mercy petitions, the President must follow the advice of the Council of Ministers. Maru Ram vs Union of India in 1980 and Dhananjoy Chatterjee vs State of West Bengal in 1994 are two examples.
• Relevant materials must be placed by the State before the Governor so that he can make a decision.

THE GOVERNOR

• Under Article 161, the Governor has the power to grant clemency to anyone convicted under any law on a matter which comes under the State’s executive power.
• This power is to be exercised by the Governor as per the advice of the CoM.
• The power to pardon in all cases where the sentence is death, the power lies within President as per Art 72.
• The Supreme Court has held in Maru Ram and Kehar Singh that the power under Articles 72 and 161 of the Constitution are to be exercised by the Central and the State Governments and not by the President or Governor on their own.
• In AG Perarivalan Vs State of TN, 2022, the SC held that the Governor could not refer the mercy petition to the President as it would be against federalism.
• In a 2021 judgement of the SC relating to the remission policies in Haryana, the Court held that the Governor is bound by the advice of the CoM. In fact, the Court noted that the sovereign power of a governor related to clemency to a prisoner under Article 161 is actually exercised by the State government and not the Governor on his own.

KEY TERMS-AN EXPLAINER

• Pardon: It absolves the convict of all sentences, punishments, and disqualifications by removing both the sentence and the conviction. A pardon may be absolute or conditional. It may be exercised at any time, either before legal proceedings are taken or during their pendency or after conviction. The rejection of one clemency petition does not exhaust the pardoning power of the President.
• Commutation: The substitution of one form of punishment for a less severe form. A death sentence, for example, may be commuted to rigorous imprisonment, which may then be commuted to simple imprisonment.
• Remission: It refers to reducing the length of a sentence without changing its nature. A sentence of rigorous imprisonment for two years, for example, may be reduced to rigorous imprisonment for one year.
• Respite: It refers to the imposition of a lesser sentence in place of one that was originally imposed due to a unique circumstance, such as a convict’s physical disability or a woman offender’s pregnancy.
• Reprieve:It denotes a temporary stay of execution of a sentence (especially one of death). Its purpose is to give the convict enough time to petition the President for a pardon or commutation.

CLEMENCY POWER OF THE GOVERNMENTS UNDER THE CODE OF CRIMINAL PROCEDURE(Cr.PC), 1973

• The Cr.PC provides for the clemency power of ” appropriate governments” under some conditions, which are enunciated in Sections 432, 433 and 435.
• Under Section 432, the ‘appropriate government’ may suspend or remit a sentence, in whole or in part, with or without conditions. Under Section 433, any sentence may be commuted to a lesser one by the appropriate government.
• Section 432 explains that which government has the authority to decide on clemency (Union or State) will depend on which government enjoy the executive power in enforcing the law against which the offence is committed.
• Section 435 says that if the prisoner had been sentenced in a case investigated by the CBI, or any agency that probed the offence under a Central Act, the State government could order such release only in consultation with the Central government.
• In the case of death sentences, the Central government may also concurrently exercise the same power as the State government to remit or suspend the sentence.
• In Maru Ram etc. vs Union of India (1980), the Supreme Court said: “Section 432 and Section 433 of the Code are not a manifestation of Articles 72 and 161 of the Constitution but a separate, though similar, power.”

A COMPARATIVE STUDY OF CLEMENCY POWER

UNITED KINGDOM

• At present, the monarch exercises power on the advice of the departmental minister, the Home Secretary.
• The Home Secretary’s decision can, in some situations, be challenged by judicial review.
• All in all, it may be concluded that in the UK, judicial review of the power of pardon is extremely restricted in scope.
• The British constitutional structure recognizes the supremacy of Parliament and provides an altogether narrower scope for judicial review than the Indian Constitution, which tends towards the separation of powers.
• Thus, British precedent in this area has limited application to India.

THE UNITED STATES OF AMERICA

• Article II of the US Constitution grants the President of the United States the “Power to Grant Reprieves and Pardons for offences against the United States, except in Cases of Impeachment.”
• The Court has been cautious in its interpretation of the pardoning power of the President except in very limited areas. However, apart from judicial scrutiny in these areas, the power of pardon has been allowed to be exercised freely.
• Governors (and, many would contend, Presidents) have regularly exercised the clemency power in ways that are clearly at odds with society’s interests, including granting or denying pardons to convicted murderers solely because of campaign promises made to supporters.
• One Governor was even impeached and removed for particularly blatant abuses of the pardoning power.

 A TIMELINE OF THE EVENTS LEADING TO THE SC JUDGMENT

• May 21, 1991:Former prime minister Rajiv Gandhi is assassinated in Sriperumbudur in Tamil Nadu by a suicide bomber belonging to the Liberation Tigers of Tamil Eelam (LTTE).
• June 11, 1991:19-year-old A G Perarivalan was arrested by CBI and booked under TADA along with other accused in the case.
• January 12, 1998: After a prolonged trial, the TADA court sentenced 26 accused to death, including Nalini and Perarivalan.
• May 11, 1999: Supreme Court upholds the death sentence of four, including Murugan, Santhan, Perarivalan and Nalini, sentenced three others to life sentences and frees 19 other death convicts.
• April 2000: Nalini’s death penalty is commuted to life by the then Tamil Nadu governor on the basis of a recommendation of the state cabinet and a public appeal made by Sonia Gandhi.
• 2001:Three death convicts, including Santhan, Murugan and Perarivalan, submit their mercy pleas to the President of India.
• August 11, 2011: Pratibha Patil, the then President, rejects their mercy petitions after 11 years.
• Aug 2011: Madras HC orders stay on the execution of three death convicts ahead of their scheduled hanging on September 9, 2011. A resolution is passed by the then chief minister J Jayalalithaa, seeking commutation of the death sentence.
• Nov 2013:Former CBI SP V Thiagarajan, who had taken the confession of Perarivalan in TADA custody, reveals that he altered it to qualify as a confession statement.
• January 21, 2014: SC commutes death penalty of three Rajiv Gandhi case convicts, along with 12 others, including aides of forest brigand Veerappan, into life imprisonment. The Court cited the inordinate delay in deciding the mercy petition by the President to commute the sentence of death.
• 2015:Perarivalan submits a mercy petition to the Tamil Nadu governor seeking release under Article 161 of the Constitution. Later, he moves Supreme Court after getting no reply from the Governor.
• Aug 2017: Tamil Nadu government grants parole to Perarivalan, the first after his arrest in 1991.
• September 9, 2018: Tamil Nadu Cabinet, headed by the chief minister, recommends the release of all seven convicts.
• Jan 2021: As the Governor continues to sit on the cabinet recommendation, SC orders to take a decision and warns that the Court will be forced to release them, citing the inordinate delay.
• May 2021:Perarivalan is out on parole. The new DMK government kept extending the parole.
• March 9, 2022:The Supreme Court grants bail to Perarivalan.
• May 11, 2022:The Supreme Court concludes the hearing in the case.
• May 18, 2022:Supreme Court orders release of Perarivalan from jail.

AN OVERVIEW OF THE ARGUMENTS AND COUNTER-ARGUMENTS GIVEN BY THE PARTIES

THE UNION GOVERNMENT

• In cases where the sentence is for an offence against any law relating to a matter to which the Union’s executive power extends, the Central Government is the appropriate government to consider pleas of remission.
• To demonstrate the scope of the Union’s executive power, the Union cited Article 73 of the Constitution, which states that such powers would extend to all matters over which Parliament has legislative authority.
• It indicated that the Indian Penal Code is a law enacted by Parliament and hence the remission requests for offences under the code would be considered by the President.
• The IPC is on the concurrent list, and under the principles outlined in Articles 246 to 245 when both the Union Government and the State Government have executive power, the Union Government would take precedence.

THE STATE OF TAMILNADU

• The Governor’s reference to the mercy petition to the President is an absolute derogation of the federal structure envisaged in the Constitution.
• The sentence for offences under the Central Act had already been undergone by the prisoner, and the only offence for which Perarivalan is now serving a sentence is punishable under Section 302 IPC.
• The proviso to Article 73 of the Constitution makes it clear that the Union Government’s executive power would not extend to matters over which the State Legislature also has legislative authority unless explicitly mentioned in the Constitution or any Central Law.
• Because neither the IPC nor the CrPC contains a saving clause that reserves power for the Union Government, the Union Government’s executive power would not extend to matters within the purview of the State executive.
• The IPC is not a Parliamentary enactment but rather an existing law that the Parliament has amended from time to time. The IPC is a collection of penal laws that deal with a wide range of offences that are referenced in various lists of Schedule 7 of the Constitution.

SIGNIFICANCE OF THE JUDGMENT?

• First, the judgement holds that the Governor’s duty while performing his functions, including the power to remit, suspend, or commute sentences under Article 161, is to follow the recommendations of the State Cabinet.
• Second, an important finding is that the Governor was not required to refer the case to the President.
• Third, Governors must exercise their authority on time.
• Fourth, the judgement acknowledges the State’s power in matters of remission, commutation, and so on.
• Fifth, the verdict upholds prisoners’ human rights.

WHETHER INVOCATION OF ARTICLE 142 IS JUSTIFIED?

The use of Article 142 is justified by the case’s unusual facts, which are almost unique. The Governor’s delay in accepting the State Cabinet decision was enormous. It had an impact on a person’s liberty who was legally and constitutionally entitled to be released. For decades, the case was fought. The Centre’s usual litigation strategies contributed to the delay. The Court may have been aware of the procedural injustice meted out to Perarivalan and concluded that the only way to correct it was to invoke Article 142 and release the prisoner. A return to the Governor of the petition would have prolonged the litigation, which had already exceeded all reasonable bounds. Thus, the argument that this violates the separation of power doctrine does not hold much conviction, although this power being extraordinary, needs to be used very sparingly when either of the other two organs fails to act.

 THE WAY FORWARD:

ROLE OF GOVERNOR

• The Governor’s role has been seriously questioned due to the constitutional impropriety displayed by politically partisan governors.
• The inordinate delay in deciding the clemency petition needs to be seen in the context of changing the role of the Governor from “purely being an agent of centre”.
• Hence, governors should strictly follow their constitutional dharma.

CHANGING FEDERAL EQUATIONS

• The federal equations between the Centre and states have reached new lows in recent times, which open new fault lines in federal dynamics. This clemency controversy is another such instance, and hence a better Centre-state relationship must be developed.

NEED FOR CHANGE IN PARDON POWER

• A wide public debate needs to be initiated on the whole issue of pardoning power, its mechanism and employment.

FAULTY AND MOTIVATED INVESTIGATION

• All the limbs of the criminal justice system need to work towards securing justice for all, including the accused.
• In this instant case, it was seen that forced confession was extracted from the appellant and such motivated and faulty investigation strikes at the very roots of the justice system.

POLITICIZATION OF HUMAN RIGHTS

• The human rights of individuals should not be made to suffer at the altar of political manipulations and machinations.

A TIME LIMIT FOR EXERCISING PARDON POWER

• In Perarivalan vs Union of India. 2014, the SC held that “apex constitutional authorities” like the President and the Governor must exercise their clemency powers under Articles 72 and 161, respectively, within the “bounds of constitutional discipline” and in an “expeditious manner”.
• The fact that no time limit is prescribed to the President/Governor for disposal of the mercy petition should compel the government to work in a more systematized manner to repose the confidence of the people in the institution of democracy.

REVISIT THE NEED FOR CAPITAL PUNISHMENT

• The entire saga of cases related to Rajiv Gandhi’s assassination once again generated a debate on the need for capital punishment in Indian Statute books, especially in the context of decision/non-decision/rejection of mercy petitions.
• As it is not possible to know the reason behind this act of the President/Governor, and subjective factors might influence decisions, a moratorium on capital sentence need to be enforced in the shorter term,

THE CONCLUSION: The SC judgement has provided clarity as to the nature of the relation between the governor and the state government vis a vis the clemency power. However, it would be naïve to think that such instances would not recur in future unless the governors display political sagacity. It is in the interest of justice, public cause and human rights that Centre-state relations should improve, for which the role of the Governor is very important while the scope of judicial review is minimum.

Questions:

1. What was held by the Supreme Court in AG Perarivalan Vs State, 2022? Do you think that this judgement has provided clarity with respect to the exercise of the clemency power by the Governor? Explain.
2. “Constitutional clemency differs from statutory clemency”. Comment.
3. “When politics determines justice, human rights become a causality” Elaborate in the context of the SC judgment on the clemency power of the Governor in the Perarivalan case 2022.

THE CONTEXT: The Supreme Court’s order on 11 May 2022, “putting in abeyance” Section 124A of the Indian Penal Code (IPC), 1860, which prescribes punishment for “sedition,” has been greeted with a measure of relief by the various sections. In a brief order delivered in S.G. Vombatkere vs Union of India, a three-judge Bench of the Supreme Court of India effectively suspended the operation of Section 124A of the Indian Penal Code (IPC). This article examines the issue in detail.

THE JUDGEMENT

• In a historic development, the Supreme Court on 11 May 2022 ordered that the 152-year-old sedition law under Section 124A of the Indian Penal Code should be effectively kept in abeyance till the Union Government reconsiders the provision. In an interim order, the Court urged the Centre and the State governments to refrain from registering any FIRs under the said provision while it was under re-consideration. The Court also held that those already booked under Section 124A IPC and are in jail can approach the concerned courts for bail.

THE ANALYSIS OF THE PRESENT STAND OF THE SUPREME COURT

• Direction for reconsideration of sedition law was issued after the Union government filed an affidavit informing the Supreme Court that it had decided to re-examine the law as part of the Prime Minister’s efforts to scrap outdated laws and compliance burdens. The deposition, by itself, offered no firm commitment on whether the government would recommend to Parliament a complete removal of Section 124A. Another pertinent issue is whether the government is serious about re-examining and reconsidering the provisions of Section 124A or was it simply buying time to take the fight to another day? If it was serious, it would have come forward and put all pending cases on hold with an assurance to review them and weed out those that were clearly make-believe. The government was also ambiguous in stating that re-examination and reconsideration would be by the competent forum, namely the Parliament.
• The court’s interim order balances security interests and integrity of the state on one hand, and the civil liberties of citizens on the other. However, it is not the prerogative of the court to strike down any law made by the legislature if it is not in contravention of the Constitution. A constitutional bench in 1962 has already held the  Sedition Law to be Constitutional and we need a larger bench (Five judge bench in Kedar Nath Case) to re-examine the law’s constitutional validity. Though the rights and freedoms under Articles 19 and 21 have been expanded from time to time by the judiciary, it is yet to be ascertained whether the ‘reasonable restrictions’ under Article 19(2) can also be expanded or interpreted in a wider context by the judiciary. If so, then it might have irrevocable implications on the Constitutional scheme of governance. As empirical evidence shows the misuse of the sedition law by the executive, the judiciary has to step in to safeguard the rights of the people and enforce rule of law. But, in order that the judgement to be effective in practice, other limbs of the Criminal Justice System must also internalize the spirit of the judgment in its working.

WHAT IS SEDITION?

• Cambridge Dictionary defines sedition as language or behaviour intended to persuade other people to oppose their government and change it, sometimes by using violence.

 SEDITION LAW IN INDIA SECTION 124A IPC:

• Section 124A defines sedition as any action — “whether by words, signs, or visible representation” — which “brings or attempts to bring into hatred or contempt or excites or attempts to excite disaffection towards the government established by law in India”.

Ø  This means that the law punishes attempts to create “hatred,” “contempt,” or “disaffection” towards the government as “sedition.” The explanation to Section 124A explicitly excludes “disapprobation” of the measures or actions of the government that does not excite or attempt to excite hatred, contempt or disaffection.

• The word “disaffection”, the provision explains, “includes disloyalty and all feelings of enmity”. However, comments without exciting or attempting to excite hatred, contempt or disaffection, will not constitute an offence under this section.

 SEDITION AS A COGNIZABLE OFFENSE:

• In 1962 the Supreme Court of India interpreted the section to apply only if there is, say, “incitement to violence” or “overthrowing a democratically elected government through violent means”.
• Sedition was made a cognizable offence for the first time in history in India during the tenure of Prime Minister Indira Gandhi in 1973, that is, arrest without a warrant was now permissible.

THE HISTORY OF SEDITION

• Sedition laws were enacted around the 17th Century in England in a bid to protect the Crown and the State from any potential uprising. The premise was that people could only have a good opinion of the government, and a bad opinion was detrimental to the functioning of the government and the monarchy. It was subsequently introduced in the Indian Penal Code in 1870.
• Section 124A had been introduced in the Indian Penal Code by the British to punish sedition as an “offence against the state,” and was used to arrest freedom fighters, notably Bal Gangadhar Tilak and M K Gandhi.
• The first known instance of the application of the law was the trial of newspaper editor Jogendra Chandra Bose in 1891.
• Another major case was when Bal Gangadhar Tilak was brought to trial for sedition in 1897 for his lectures and songs at the Shivaji Coronation Ceremony. In 1908, Tilak was again charged with sedition for the publication of a critical article in his magazine Kesari. He was held guilty and sentenced to six years imprisonment by the Bombay High Court, which ruled that no one was permitted to “attribute dishonest or immoral motives to the government.”
• The next landmark sedition case in the pre-independence era was Gandhi’s trial for the offence of sedition for his articles in the Young India magazine. The trial itself was remarkable for his decision to plead guilty to the charge of sedition and Justice Broomfield’s reluctance to sentence him because he did not believe that Gandhi deserved to be charged with sedition in the first place. Mahatma Gandhi had described Section 124A as “the prince among the political sections of the Indian Penal Code designed to suppress the liberty of the citizen”.

CONTEMPORARY DEBATE AND DATA

• The law of sedition has been weaponised by the governments. Cases are filed for strange reasons. For example, the widowed mother of a child and the headmistress of a school was arrested and charged with sedition and school children were subjected to questioning for hours only for participating in a play that contained an “objectionable” line relating to the Citizenship (Amendment) Act. The intention behind the use of the law of sedition is apparently intended to quell dissent and criticism and scare people into submission.
• The offence of sedition has been invoked quite frequently in the recent past. The database of article-14.com called “A Decade of Darkness” is perhaps the only “live” study of sedition cases which informs us that sedition cases filed between 2014 and 2022 doubled as compared to the ones between 2010 and 2014. The number of people adversely affected also doubled— 7,136 versus 3,762. Statistically, the doubling rate is not surprising since the period under consideration also doubled.
• As per the 2020 National Crime Records Bureau (NCRB) report, in 2018, 70 sedition cases were filed; however, not a single person was convicted. Similarly, in 2019, 93 cases were filed, while only two were convicted. Similarly, in 2020, 73 cases were filed and no one was convicted of sedition.
• Manipur filed the highest number of sedition cases (15) in 2020, followed by Assam (12), Karnataka (9), Uttar Pradesh (7), Haryana (6) and Delhi (5).

ARGUMENTS AGAINST THE USE OF SEDITION LAW

LAW TO CURB ALL KINDS OF CRITICISM

• The use of sedition law to curb all kinds of criticisms against the government, and not against incitement to violence against the state alone, has been well-documented over the years.
• Whether it is the first information reports (FIRs) against protestors at Koodankulam or the complaints against Kanhaiya Kumar or Amnesty International, Section 124A has been used by governments of all shades to stifle dissent.
• In its everyday application, sedition is deeply embedded in local politics and in variables such as caste, class, and community. For instance, in Haryana, various marginalised groups experience sedition as a tool for upper-caste domination.

BROAD SCOPE OF SECTION 124-A

• Unfortunately, the broad scope of Section 124-A allows it to be used by the State to go after those who challenge its power.
• Whether it is the JNU students, activists such as Hardik Patel and Binayak Sen, authors such as Arundhati Roy, cartoonists such as Aseem Trivedi, or the villagers of Idinthakarai in Tamil Nadu protesting against the Kudankulam Nuclear Power Plant.
• These examples are demonstrative of the misuse of the provision.

PROCESS ITSELF BECOME PUNISHMENT

• Sedition charges are easily slapped, but seldom stick, but cause immense harassment in the process.
• Even if one is eventually acquitted of sedition, the process of having to undergo the trial itself is the punishment.

COLONIAL LEGACY OF THE LAW

• Since its inception 1870, Section 124A of the Indian Penal Code, which punishes sedition, has been a tool in the hands of the state to curb criticism and dissent though during those times the voices were raised against a foreign rule and in the interest of the nation.
• It has been used by the colonial British government as well as by successive governments of independent India against political dissidents. The colonial intent of the law is part and parcel of what continues to constitute “sedition” in modern-day India.

INTERNATIONAL EXAMPLES

• The global sentiment today is overwhelmingly anti-sedition with different countries either easing the law or simply getting rid of it. Many democratic countries, including the United Kingdom, Ireland, Canada, Ghana, Nigeria and Uganda, have held sedition law as undemocratic, undesirable and unnecessary. Australia (2010) and Singapore (2021) have also repealed the Sedition Law in the recent past.

WHY THE LAW CONTINUE TO REMAIN IN THE STATUTE BOOK?

• Unity & Integrity: Section 124A of the IPC has its utility in combating anti-national, secessionist and terrorist elements.
• Stability of the state: It protects the elected government from attempts to overthrow the government with violence and illegal means. The continued existence of the government established by law is an essential condition of the stability of the State.
• Contempt of Government: If contempt of court invites penal action, contempt of government should also attract punishment.
• Naxalism and Insurgency: Many districts in different states face maoist insurgency and rebel groups virtually run a parallel administration. These groups openly advocate the overthrow of the state government by revolution. Against this backdrop, the abolition of Section 124A would be ill-advised merely because it has been wrongly invoked in some highly publicized cases.

CONSTITUENT ASSEMBLY DEBATE ON THE CONTROVERSIAL ISSUE OF SEDITION

A COLONIAL LAW MEANT TO SUPPRESS INDIANS

• It is nothing short of a remarkable fete that India’s founding leaders ensured that Section 124A was not and is not part of the Constitution.
• They understood the perils of making sedition ‘a reasonable restriction’ on the freedom of speech and expression under Article 13 of the draft Constitution, but it continues to be a criminal offence.
• And, the Constituent Assembly vigorously debated the offensive nature of this law and the possibility that it will be misused to jail those critical of the government—the only reason the British wove it into the IPC in 1870.

CONSTITUTION WITHOUT ‘SEDITION’

• Congress leader and educationist K.M. Munshi, a key voice in the Constituent Assembly, said that there should be no room for ‘sedition’ in independent India.

He argued: “Now that we have a democratic government a line must be drawn between criticism of government which should be welcome and incitement which would undermine the security or order on which civilized life is based, or which is calculated to overthrow the State. Therefore, the word ‘sedition’ has been omitted. As a matter of fact, the essence of democracy is criticism of Government.”

• While key founding leaders opposed the draconian law, the real credit for sedition not finding a place in the Constitution goes to Sikh leader Bhupinder Singh Mann who represented East Punjab in the Constituent Assembly, made a case for upholding liberty—and appealed to them to vote against embedding sedition into the Constitution.

NEHRU’S VIEW ON THE SUBJECT

• He was not in support of the sedition law and opined that:

“Take again Section 124-A of the Indian Penal Code. Now so far as I am concerned that particular section is highly objectionable and obnoxious and it should have no place both for practical and historical reasons, if you like, in any body of laws that we might pass. The sooner we get rid of it the better.”

JUDICIAL INTERVENTIONS SINCE INDEPENDENCE:

• In 1951, the Punjab High Court ruled Section 124A to be unconstitutional. A similar ruling was passed in 1959 by the Allahabad High Court, which also concluded that it struck at the very root of free speech.
• Kedar Nath Singh v State of Bihar,1962: The Supreme Court has upheld the constitutionality of Section 124-A (sedition) on the basis that this power was required by the state to protect itself. However, it said that every citizen has a right to say or write about the government by way of criticism or comment. A citizen can criticize the government to the extent it does not incite people into violence against the government or with the intention of creating public disorder.
• Alavi vs State of Kerala,1982: The Supreme Court held that sloganeering, criticizing of Parliament or Judicial setup does not amount to sedition.
• Balwant Singh v State of Punjab,1995: The Supreme Court acquitted persons from charges of sedition for shouting slogans such as “Khalistan Zindabad”. The court held that the mere raising of slogans by two individuals alone cannot be said as sedition. Further, it is also not considered an attempt aimed to excite hatred or disaffection against the government.
• Sanskar Marathe vs The State of Maharashtra, 2015: In this case, the Bombay High Court issued certain guidelines police officials must follow before filing a sedition case against anyone. These guidelines include an objective evaluation of the seditious material. By evaluation, the police must form an opinion on whether the words and actions caused disaffection and disloyalty to the government.
• Rajat Sharma v. The Union of India Case, 2021: In this case, the court ruling said that disagreeing with the views and policies of the government will not attract the offence of sedition. So the provision of sedition cannot be invoked to quiet the disquiet (criminalizing the critics).
• More recently, sedition charges against journalists (Vinod Dua, Siddique Kappan), farmers in Sirsa (Haryana), filmmaker Ayesha Sultana (Kerala) and even Ex-UP Governor Dr Aziz Qureshi (for making remarks against the present Chief Minister) are the incidents when Court granted interim relief, giving us hope that the misuse and arbitrary application of law to silence the voice of the people will be stopped.

Understanding Kedar Nath Singh v State of Bihar Case, 1962

The Court noted that the offence occurs in the chapter of the IPC relating to offences against the state (IPC Chapter VI) —not against any individual or political dispensation. The Court then laid down the law in the following words:

“The provisions of the sections along with the explanations make it reasonably clear that the sections aim at rendering penal only such activities as would be intended, or have a tendency, to create disorder or disturbance of public peace by resort to violence… It is only when the words, written or spoken, etc, which have the pernicious tendency or intention of creating public disorder or disturbance of law and order that the law steps in to prevent such activities in the interest of public order.”

Note that the keywords are “against the state,” “violence,” and “public disorder.” Without them, the offence of sedition does not take place.

Justice A P Shah (2017), while delivering the M N Roy Memorial Lecture, explained the Kedar Nath judgment further: The Court upheld the constitutionality of sedition, but limited its application to “acts involving intention or tendency to create disorder, or disturbance of law and order, or incitement to violence.” It distinguished these acts from “very strong speech” or the use of “vigorous words” which were strongly critical of the government.

WHY THE SEDITION LAW SHOULD BE DONE AWAY WITH?

POOR IMPLEMENTATION OF COURT GUIDELINES

• Every time the sedition case was getting quashed, the Judiciary guided the law enforcement agencies regarding its application. But the law enforcement agencies are not following the guidelines in letter and spirit.

INCREASING MISUSE OF SEDITION

• Between 2016 and 2019, the number of cases filed under Section 124-A (sedition) of the Indian Penal Code (IPC) increased by 160% while the rate of conviction dropped to 3.3% in 2019 from 33.3% in 2016, according to the National Crime Records Bureau (NCRB).

RECOMMENDATION OF LAW COMMISSION

• In 2018, the Law Commission of India questioned how far it is justified to retain Section 124A. It even suggested to re-think or repealing Section 124A of the Indian Penal Code.

AGAINST INDIA’S INTERNATIONAL COMMITMENT

• In 1979, India ratified the International Covenant on Civil and Political Rights (ICCPR). It sets forth internationally recognized standards for the protection of freedom of expression. However, misuse of sedition and arbitrary slapping of charges are inconsistent with India’s international commitments.

ABOLITION OF SEDITION IN OTHER PARLIAMENTARY SYSTEMS

• The U.K. abolished the offence of sedition in 2010. Whereas, India is still retaining the law given by the British Empire. Similarly, in Australia also, following the recommendations of the Australian Law Reform Commission (ALRC) the term sedition was removed and replaced with references to ‘urging violence offences’.

OTHER LAWS

• Various Sections of IPC, National Securities Act (NSA) and Unlawful Activities Prevention Act (UAPA) have provisions that penalize “disrupting the public order” or “overthrowing the government with violence and illegal means”. These are sufficient for protecting national integrity. There is no specific need for Section 124A.

SEDITION LAW IN OTHER COUNTRIES

THE UNITED KINGDOM

• The sedition law was officially repealed under Section 73 of the Coroners and Justice Act, 2009, citing a chilling effect on freedom of speech and expression.
• The common law on sedition, which is traced to the Statute of Westminster, 1275, when the King was considered the holder of divine right, was termed “arcane” and “from a bygone era when freedom of expression wasn’t seen as a right it is today.”

THE UNITED STATES

• Sedition is a federal felony under the Federal Criminal Code and was most recently used against rioters involved in the January 6, 2021 attack on the Capitol.
• Despite the First Amendment that forbids any restrictions on free speech, “conspiracy to interfere directly with the operation of the government” and not just speech is considered sedition.

AUSTRALIA

• Repealed its sedition law in 2010.

SINGAPORE

• Repealed the law in 2021 citing that several new legislations can sufficiently address the actual need for sedition law without its chilling effects.

THE WAY FORWARD:

• The Union and the states need to engage in wide-ranging consultations with relevant stakeholders in the spirit of the SC judgment with a view to the eventual satisfactory resolution of this issue.
• The definition of sedition should be narrowed down, to include only the issues pertaining to the territorial integrity of India as well as the sovereignty of the country. India is the largest democracy in the world and the right to free speech and expression is an essential ingredient of democracy. The expression or thought that is not in consonance with the policy of the government of the day should not be considered sedition.
• India’s aspirations to be a world leader will get a boost if we align ourselves with the best examples of the world as most of the democratic countries around the world have either done away with the Sedition Law or diluted it.
• The government shall show some restraint in invoking such a draconian law and shall also educate the Law enforcement authorities to prevent the problem of misuse. The enforcement authorities might be trained regarding the application and non-application in cases of sedition and other criminal defamation suits. It is also imperative to rethink keeping the sedition as a cognizable offence, which gives more scope for its misuse.
• The present-day laws of the modern democratic society must reflect the needs and demands of the society as well as be strong enough to protect the liberty of the citizens. Any change/ amendment to the law shall be made by keeping the public interest at the centre and in line with the international covenants & ethos of “Argumentative Indians.” Over the past few years, the government has already repealed various colonial laws in line with the idea of “Minimum Government and Maximum Governance” but the laws such as Sedition, Blasphemy, Unlawful Assembly etc must also be given a thought to bring a real change.
• The ideals of the Arthashastra (one of the philosophical sources of the Constitution of India), shall be given a thought that the king (Prime Minister) and other machinery of the state shall be benevolent towards its citizens. However, at the same time, it should not relegate its duties of protecting the safety, security, unity and integrity of the state.

It is power and power alone which, only when exercised by the king with impartiality and in proportion to guilt either over his son or his enemy, maintains both this world and the next.

The just and victorious king administers justice in accordance with Dharma (established law), Sanstha (customary law), Nyaya (edicts, announced law) and Vyavahara (evidence, conduct).

— Arthashastra 3.1

THE CONCLUSION: The enforcement or the threat of invocation of sedition constitutes an insidious form of unauthorised self-censorship by producing a chilling effect on the exercise of one’s fundamental right to free speech and expression. That is why the law needs to be repealed. However, it is unlikely that any government will give up this power, and it is therefore left to the courts to re-examine the constitutionality of sedition. It is not enough to expect an acquittal by the courts; we need to stop the misuse of the law to silence dissent by removing the source of the power itself or at least narrowing down its expanse.

MAINS PRACTICE QUESTIONS

• “Laws that can be easily misused should be reconsidered.” Critically analyse the statement in the context of the recent Supreme Court order related to Section 124A IPC.
• Discuss how Section 124A IPC has been misused in post-independence India? Should the law be repealed, if not, suggest measures to restrict its misuse?
• Despite the attempts made by the higher judiciary to restrict the scope of sedition to an act of incitement to violence, its application by the executive narrates a story of its continued misuse. Illustrate and comment.

THE CONTEXT:In the past few months, there has been a steep increase in the number of demolitions carried out by the state using bulldozers without serving appropriate notices to the parties involved.This has generated a debate whether there is Constitutionalism and the Rule of Law in the country. This article analyzes this debate in detail while looking into the tenets behind the state-sponsored demolition drives, its impact on the psyche of the society and the future of a harmonious social fabric.

ILLUSTRATIONS OF RECENT DEMOLITION DRIVES

COMMUNAL CLASHES AFTER THE RELIGIOUS PROCESSION

• The incident was in Delhi’s Jahangirpuri, where the North Delhi Municipal Corporation (MCD) decided to demolish the houses of alleged encroachers.
• In fact, ‘anti-encroachment’ drives were seen in several locations including Shaheen Bagh which had seen communal clashes on Ram Navami in April 2022.
• In April, a similar drive was seen in Gujarat when the Himmatnagar civic body demolished kiosks, shacks and portions of shops as part of its own ‘anti-encroachment drive’.
• The administration of Gujarat’s Anand district, too, undertook such an exercise, where structures belonging to people allegedly involved in the Ram Navami clashes were razed.
• A similar drive was also undertaken in Madhya Pradesh’s Khargone, another site of communal clashes in April. Another example of a demolition drive in Madhya Pradesh took place in the Jirapur village, where 48 houses were razed after the authorities identified these houses as encroachments over government land.

PROTESTS AGAINST CUSTODIAL DEATH

• In June 2022, the Assam administration demolished houses of people who were allegedly involved in setting fire to a police station while protesting an alleged custodial death. The demolition took place in Salonabari in Assam’s Nagaon district.

PROTESTS IN THE AFTERMATH OF PROPHET REMARK ROW

• The house of an activist associated with the Welfare Party of India was demolished in Prayagraj who was allegedly involved in the violent protests that erupted in Prayagraj over the remarks on Prophet Muhammad.

JUSTIFICATIONS GIVEN BY THE GOVERNMENT FOR THE DEMOLITION DRIVES

IN CONFORMITY WITH LAWS

• The State of Uttar Pradesh has submitted before the Supreme Court that the recent demolitions carried out in Kanpur and Prayagraj were done by Local Development Authorities strictly in accordance with the Uttar Pradesh Urban Planning and Development Act, 1973.

PRIOR NOTICE GIVEN

• The state governments have submitted that prior show cause notice, demolition notice etc. for the illegal construction was given to the encroachers and also adequate opportunity was provided to them.

DEMOLITION IS A CONTINUOUS PROCESS

• The state governments have rejected any argument which tried to give such demolitions as retributive and against one particular community after the aftermath of riots and protests. The state government stated that such kinds of demolition drives are carried out from time to time against illegal constructions.

CREATING DETERRENT

• The government said that such demolition drives create the deterrence in the society against the constructions which are illegal and/or do not conform to the permissions granted for the construction.

 CONCERNS RAISED BY SUCH ACTS OF DEMOLITION

DEMOLITION UNDERMINES CONSTITUTIONALISM

• Constitutionalism is the doctrine often associated with the political theories of John Locke. It says that government powers should be legally limited and its authority or legitimacy depends on observing these limitations.
• Constitutionalism recognizes the need of limiting the concentration of power in order to protect the rights of groups and individuals. In such a system, the power of the government can be limited by the constitution – and by the provisions and regulations contained in it – but also by other measures and norms.
• The present actions taken by the state goes against the idea of limited government. The government cannot be absolute and it has to act within the constitutional boundaries. The government seems to trespass on the legal protections of the statute by taking unilateral  actions.

VIOLATES RULE OF LAW

• Dicey’s concept of Rule of law is a legal principle that law should govern a nation, as opposed to being governed by arbitrary decisions of individual government officials. It primarily refers to the influence and authority of law within society, particularly as a constraint upon behaviour, including behaviour of government officials.
• Rule of Law demands non-arbitrary action by the government and the laws shall be applied equally irrespective of religion, race, caste, sex, place of birth or any of them.
• The present actions of the state seem to be in violation of Article 14 of the Constitution of India (Equality before law) as the laws are applied arbitrarily and the appropriate opportunities were not given to defend the constructions.

VIOLATE ARTICLE 300A

• Article 300A of the Indian Constitution states that no person shall be deprived of his property save by the authority of law. It protects an individual from interference by the State and dispossesses a person of the property unless it is in accordance with the procedure established by law.
• The recent acts of demolition are prima facie seen as antithetical not only to Article 300A but to the spirit of the Constitution as a whole.

RETRIBUTIVE ACTIONS AND COLLECTIVE PUNISHMENT

• For any act done by any individual which is in contravention to the laws or against the state, the family members and/or the section of the community shall not be punished. Such punishments are against the natural law of justice. The present case of the demolition of homes and shops of alleged culprits of communal riots is also seen as a sign of retributive justice.

MUNICIPAL AND STATE LAWS RELATED TO ANTI-ENCROACHMENT DRIVES

DELHI

• Section 343 of the Delhi Municipal Corporation Act, 1957 states that notice needs to be served to the parties before the demolition of any building.
• It also states that the occupant has to be given 5-15 days before the commissioner himself orders the demolition of the structure.
• The proviso of the Section states that no order of demolition shall be made unless the person has been given, by means of a notice served in such manner as the commissioner may think fit, a reasonable opportunity of showing cause why such an order shall not be made.

MADHYA PRADESH

• As per Madhya Pradesh Bhumi Vikas Rules, 1984, the authorities are required to serve notice to the person supposedly violating said rules, which prescribe a period of ten days for the violator to stop the violation.

UTTAR PRADESH

• Section 27 of the Uttar Pradesh Urban Planning and Development Act, 1973 requires the affected person to be heard and given 15 days prior notice before proceeding with the demolition. Besides this, the Act allows a person aggrieved with the order of demolition to appeal within 30 days.

DEMOLITION DRIVES AND INTERNATIONAL LAWS

UDHR

• Article 25 of the Universal Declaration of Human Rights (UDHR) states that “everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care…”
• Article 12 of UDHR prohibits arbitrary interference in an individual’s right to property. It also stipulates that “everyone has the right to the protection of the law against such interference or attacks”.

ICCPR

• Article 17 further provides that everyone has the right to own property alone as well as in association with others and that no one shall be arbitrarily deprived of his property. Thus, arbitrary interference with an individual’s property is a gross violation of the International Covenant on Civil and Political Rights (ICCPR)

ICESCR

• Article 11.1 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) recognises “the right of everyone to an adequate standard of living for himself and his family, including adequate food, clothing and housing, and to the continuous improvement of living conditions”. Under this article, countries are under an obligation to take “appropriate steps” to ensure the realisation of these rights.
• The rights recognised under ICESCR, according to Article 4, can be restricted by States only if the limitations are determined by law in a manner compatible with the nature of these rights and solely to promote society’s general welfare.

UN HUMAN RIGHTS OFFICE

• According to the UN Human Rights Office, an integral element of the right to adequate housing is ‘protection against forced evictions.
• It defines ‘forced evictions’ as ‘permanent or temporary removal against the will of individuals, families and/or communities from the homes and/or land which they occupy, without the provision of, and access to, appropriate forms of legal or other protection’.
• The right to adequate housing also entails freedom from arbitrary interference with one’s home, privacy, and family.

JURISPRUDENCE AND DEMOLITION/ENCROACHMENT

SUPREME COURT

• In a landmark judgment passed by the Supreme Court in the case of Olga Tellis vs Bombay Municipal Corporation, the top court observed that the right to life, guaranteed under Article 21 of the constitution, also includes a person’s right to live with dignity, housing and livelihood. The procedure of eviction should lean in favour of procedural safeguards which follow the natural principles of justice like giving the other side an opportunity to be heard. The right to be heard gives affected persons an opportunity to participate in the decision-making process and also provides them with a chance to express themselves with dignity.
• Another judgment was passed by the Supreme Court in 2019 in Municipal Corporation of Greater Mumbai & Ors. v M/S Sunbeam High Tech Developers Private Ltd. wherein the court held that the government authorities need to follow proper procedure for demolition.
• Most recently in the Jahangirpuri demolition drive against encroachments, the Supreme Court ordered a stay on demolition and asked the authorities to maintain a status-quo.
• In Uttar Pradesh also the court asked the government not to carry out demolition activities except in accordance with the procedure established by Law.

DELHI HIGH COURT

• The Delhi high court, in 2010, passed a judgment in Bal Kishan Das vs Municipal Corporation of Delhi wherein the court said that serving a show-cause notice to the parties is a mandatory requirement.
• The Delhi high court delivered another judgment in 2010 upholding the practice of the issuance of notice before demolition, in the case of Sudama Singh & Others vs Government of Delhi & Anr. The court had held that before the government authorities decide to evict someone from their house, they need to provide for an alternate accommodation where basic civic amenities that uphold their right to life and dignity, are available.This got crystalised in the Delhi Slum & JJ Rehabilitation and Relocation Policy, 2015.
• In Ajay Maken vs Union of India (2019), the Delhi High Court held that no authority shall carry out an eviction without conducting a survey, consulting the population that it seeks to evict and providing adequate rehabilitation for those eligible.

HIGH COURT OF MADHYA PRADESH

• In Arun Bharti vs The State Of Madhya Pradesh by the Madhya Pradesh high court.  The court had held that the necessity of compliance with the principle of natural justice of audi alteram partem (‘Let the other side be heard’) by affording a reasonable opportunity of hearing, is inherent in the provisions of Section 248 of the Madhya Pradesh Land Revenue Code, 1959.

LEGAL FRAMEWORK TO DEAL WITH DESTRUCTION OF PROPERTY

• We have one precedent where the apex court agreed to fix liability on persons accused of damaging public property. The judgment was passed by the Supreme Court in 2009 in the case Destruction of Public & Private Properties vs State of Andhra Pradesh & Ors. In the aforesaid judgment, the Supreme Court had observed that public and private property is often damaged by the invocation of political processions, illegal demonstrations, strikes, bandhs and protests in the country, and that strict legislation is required to prevent it.
• In absence of any statute in 2009, the court had passed certain guidelines in which there was also a mention of holding perpetrators liable:
• ü  “The principles of absolute liability shall apply once the nexus with the event that precipitated the damage is established… The liability will be borne by the actual perpetrators of the crime as well as organizers of the event giving rise to the liability – to be shared, as finally determined by the high court or Supreme Court, as the case may be.”
• Nowhere, however, does the judgment grant government authorities the power to demolish properties without notice. It only states that if a person is a perpetrator or one of the organizers of the crime, he will be held liable for up to twice the amount of damages liable to be paid.
• Interestingly, the aforesaid judgment has also been used by ruling party supporters to justify the Uttar Pradesh government’s actions against the attachment of property of ‘rioters’, even though the judgment does not allow the state to attach said property. The Uttar Pradesh government came up with an ordinance “The Uttar Pradesh Recovery of Damages to Public and Private Property Ordinance, 2020”which empowers the state government to constitute one or more claims tribunals to decide compensation claims for damages to any public or private property due to riots, hartals, bandhs, protests, or public processions.
• The Nariman Committee’s (formed after the Destruction of Public & Private Properties vs State Of Andhra Pradesh & Ors.) recommendations dealt with extracting damages for destruction. Accepting the recommendations, the court said the rioters would be made strictly liable for the damage, and compensation would be collected to “make good” the damage. The apex court explicitly vested the responsibility of setting up machinery to investigate the damage caused with the high court and, in case more than one state is concerned, the Supreme Court, not the government.

DEMOLITION, CONSTITUTIONALISM AND RULE OF LAW – AN ANALYSIS

The actions of state and local authorities to bulldoze shops and homes in riot-hit neighbourhoods citing “illegal encroachment” raises major legal concerns. Such actions show a disregard for the due process of law and established judicial precedents regarding evictions. It conveys the use of brute state power for collective punishment undermining the basic tenets of criminal law. This increases the trust deficit between the state and its citizens, as the state is perceived to be the perpetrator and not the protector of human rights and dignity. Prejudiced state action towards one particular community might lead to social disharmony and might aggravate communal tensions.

The Apex Court of the country has made it unambiguously clear that no authority can directly proceed with demolitions, even of illegal constructions, without providing notice and an opportunity of being heard by the occupant. The other two arms of the state shall adhere to various judicial pronouncements and constitutional provisions and shall not resort to arbitrary actions which go against the very idea of Sabka Saath, Sabka Vikas ,Sabka Vishwas and Sabka Prayas. However, the undue haste, the manner and context of the demolitions, the targeted approach to a particular community etc seems to indicate that some states have decided to make bulldozers as instrument state policy. Such an approach is nothing but absolutism and hence antithetical to Constitutionalism and rule of law.  State is a benevolent institution which must not act like private money lenders or organised gangs who act with vengeance and revenge.

THE WAY FORWARD:

• Constitutional morals shall be the guiding principles for state policies. Mere executive fiats cannot be used to take away a person’s property. While it is inherent for a sovereign state to exercise its power of eminent domain over private property, the deprivation of the property should be for a public purpose and shall be subject to judicial review.
• As the custodian of India’s constitutional order, it is high time that the judiciary acted and imposed necessary checks on the unbridled exercise of power by the executive. Courts can also refer to international covenants to counter the nationalist-populist discourse.
• The reforms in laws shall be modelled along the lines and furthering the idea of “Good Governance” as propounded by the World Bank which suggests the participative law-making in the modern liberal democratic political order.
• The Government shall not act in any way which distorts the fraternity and must ensure the dignity of the individual. The idea of punishment is reformative in nature but the present state actions are perceived as vindictive in nature. The state shall also restrain itself in affecting punitive actions and shall be just and reasonable for the greater social good.
• The state shall be even in the application of the law and must not distinguish on varied lines such as rich/poor, on a communal basis, region, etc.
• The Latin American doctrine of “an unconstitutional state of affairs” can also be given a thought.

“The unconstitutional state of affairs is a legal ruling that allows the Constitutional Court to acknowledge the failure of both the Legislative and Executive branches of government to enforce public policies against widespread and systemic violation of fundamental rights, thus justifying a judicial intervention in order to combat the structural causes of the violations and to put everything back in order with the Constitution.”

THE CONCLUSION:Any justification for a demolition drive, as a penal consequence of a criminal act is totally against established canons of criminal justice. The conduct of demolition drives, as a retaliatory measure, even with the avowed object to curb violence is a clear act of subversion of the principle of rule of law.It is imperative for the state as well as the citizens to abide by the constitutional standards and present a glaring example of the spirit of Constitutionalism.

Mains Practice Questions:

1. How far do you agree with the view that the recent demolition drives conducted by the states in India are against Constitutionalism and the Rule of Law? Justify your stand.
2. Demolition drives are not only against the law of the land but also against the international covenants on Human Rights. Argue.

THE CONTEXT:On January 12, 2022, the Union government sent out a ‘Proposal for Amendments in IAS (Cadre) Rules, 1954’, to the state governments. As per this, an IAS officer whom the Union wishes to place on deputation would “stand relieved” from their respective cadre, irrespective of the state government’s consent. These proposed amendments have created a controversy that many states have termed them anti-federal while the Centre has rejected such a claim. This write-up examines these issues in detail.

WHAT IS THE CURRENT IAS (CADRE RULES) DEALING WITH CENTRAL DEPUTATION?

RULE-6 of IAS (cadre) Rules, 1954• To ensure the service of IAS officers at the Centre, suitable provisions have been made under the IAS (Cadre) Rules, 1954.
• Central deputation in the Indian Administrative Service is covered under Rule-6 (1) of the IAS (Cadre) Rules-1954.

MANNER OF DEPUTATION UNDER RULE-6• A cadre officer may, with the concurrence of the State Governments concerned and the Central Government, be deputed for service under the Central Government or another State Government.
• In case of any disagreement, the matter shall be decided by the Central Government and the State Government or State Governments concerned shall give effect to the decision of the Central Government.

ROLE OF THE IAS OFFICER  .Rule 6(2) states that “no cadre officer shall be deputed to certain kinds of organization or body except with his/her consent.

CENTRAL DEPUTATION RESERVE• The Indian Administrative Service regulations provide for Central Deputation Reserve (CDR) not exceeding 40 per cent of the Sanctioned Duty Posts (SDP) of a cadre/joint cadre.
• The Central Deputation quota fixes the share of the Government of India out of the State cadre.

HEALTHY CONVENTIONS IN THE PAST• In the past, certain healthy conventions were generally followed. No officer was sent on central deputation against his/her own will. Every year, the States would prepare an “offer list” of officers who had opted for central deputation without arbitrarily withholding any names.
• The Centre would choose officers only from among those “on offer” from the States. The States would relieve the officers picked up by the Centre at the earliest.

UNDERSTANDING THE PROPOSED IAS CADRE (AMENDMENT) RULES, 2022

WHAT IS THE AMENDMENT?

• The proposal amends Rule 6 of the 1954 Rules.
• It says that in case of any disagreement, the matter shall be decided by the Centre and the State Government or State Governments concerned shall give effect to the decision of the Central Government as the case earlier but adds:within a specified time.
• If the State government delays posting a State cadre officer to the Centre and does not give effect to the Central government’s decision within the specified time, “the officer shall stand relieved from cadre from the date as specified by the Central government”.
• In specific situations (national security, major disasters, domain expertise) where the services of cadre officers are required by the Central government in “public interest”, the State shall give effect to its decisions within a specified time.
• Additionally, from now on, the centre itself would decide the number of officers required to be deputed and the states would have to ensure this number.

WHY THE AMENDMENT?

• As per the Union, various state/joint cadres are not sponsoring an adequate number of officers for central deputation, as part of the Central Deputation Reserve (CDR).

• As a result of this, the number of officers available for central deputation is not sufficient to meet the requirement at the Centre.
• The number of IAS officers on CDR has gone down from 309 in 2011 to 223 as of date.
• The number of such officers on central deputation has gone down from 117 to 114 during the period in spite of an increase in the number of IAS officers at the deputy secretary/director level from 621 in 2014 to 1,130 in 2021.
• Only 10% of mid-level IAS officers were posted with the Union government in 2021, a sharp fall from 19% in 2014.

WHAT HAS BEEN THE RESPONSE OF THE STATES REGARDING THE PROPOSALS?

MAJOR OPPOSITION• The proposed changes in the rules have been opposed by eight states as per the RTI reply by the Union government.
• As expected, states ruled by the ruling party at the Centre have responded positively while others took strong objections to the proposed amendments.

CONTRARY TO COOPERATIVE FEDERALISM• The problem with the proposed amendments is that they would hamper the existing fabric of cooperative federalism.
• The state governments would be under compulsion to send officers on deputations against the wishes of the officers themselves.
• The existing deputation rules are already tilted towards the centre, such amendments would only introduce further stringency in cadre deputation.

PROBLEM OF ADMINISTRATIVE ANARCHY• Based on experiences in the recent past, State governments have a justified apprehension that this proviso may be misused for political considerations.
• States say, what if the Centre unilaterally places at its disposal the services of the Chief Secretary, Principal Secretary to the Chief Minister and other key officers of a State ruled by a rival party or deputes them to other States.
• This will create administrative anarchy in states.

POOR STATE CONTROL OVER BUREAUCRACY• The proposed amendments to the IAS (Cadre) Rules would allow the Union government larger control over the deputation of IAS officials vis a vis the states.
• This will in turn reduce the control over the personnel management practices of IAS officers by the state government.
• If the proposed amendments come into effect, then the state governments lose their autonomy as they would have to make a said number of AIS officers available for deputation as would be prescribed under the Central Deputation Reserve (CDR).
• The lack of effective government control over the bureaucracy is antithetical to the democratic form of government.

REDUCED INDEPENDENCE, SECURITY, AND THE OVERALL MORALE• The amended rules may put officials posted in states in a dilemma while discharging their duties, and this may lead to a situation of instability.
• The Officers career growth prospects may suffer due to the Centre-State tussle. It may also undermine the principle of political neutrality of the civil services.

LONG TERM DAMAGES• If States begin to doubt the loyalty of IAS officers, they are likely to reduce the number of IAS cadre posts and also their annual intake of IAS officers.
• They may prefer officers of the State Civil Services to handle as many posts as possible.
• In course of time, the IAS will lose its sheen, and the best and the brightest candidates will no longer opt for the IAS as a career. Short-sighted decisions can do long-term damage to the polity.

REASONS FOR THE FALL IN THE NUMBER OF OFFICERS FOR CENTRAL DEPUTATION

POLITICAL CONFLICTS BETWEEN THE CENTRE AND THE STATES• Both the Centre and the States have at times flouted the healthy conventions in deputation for political considerations.
• In July 2001, the Centre unilaterally “placed at its disposal” the services of three IPS officers of the Tamil Nadu cadre.
• In December 2020, the Centre did the same in respect of three IPS officers of the West Bengal cadre.
• In May 2021, the Centre unilaterally issued orders for the central deputation of the Chief Secretary of West Bengal just before his last day in service.
• In all these cases, the States concerned refused to relieve the officers.

QUESTIONABLE ROLE OF STATES• Some States used to vindictively withhold the names of some of the officers who had opted for central deputation or delayed their relief after they were picked up by the Centre.
• An example was that of a senior IPS officer who was not allowed to join the Central Bureau of Investigation despite earlier clearance and was suspended by the Government of Tamil Nadu in May 2014 when she relieved herself from the State pursuant to the Centre’s direction.
• States are also not sponsoring enough officers which also is another reason as recently indicated by reports related to Andhra Pradesh.

STRUCTURAL PROBLEMS• Poor working conditions in junior-level posts, an opaque and arbitrary system of empanelment for senior-level posts, and lack of security of tenure at all levels also are reasons for the shortage of IAS officers.

PERSONAL CHOICE OF OFFICERS• Many are not opting for Central deputation because they also see better career growth in the State.
• There is also a sense of uncertainty regarding how many actually make it to the top ranks at the Centre and who will be unceremoniously repatriated if they don’t find a way with the political setup.

HOW DOES THIS MOVE ADD ANOTHER ATTEMPT TOWARDS CENTRALISATION OF POLITY?

There has been a tendency towards increasing the unitisation of Indian polity recently. It is held that the Union government has been encroaching upon the legislative, policy, and administrative domains of the states. Many states have argued that this centralizing approach has disturbed the federal nature of Indian governance and is making states “glorified municipalities”! They provide a few examples of this alleged encroachment which are briefly discussed below:

FARM LAWS•Agriculture, Agri trade and market, etc are state subjects. But the union brought crucial laws through the colourable exercise of power.(Repealed later)

NATIONAL EDUCATION POLICY • States have not been consulted at all in its formulation and the governance structure proposed has no role for states.

15TH FINANCE COMMISSION•The terms of reference to the commission like whether revenue deficit grants are to be provided to states, making grants conditional on implementing the pet schemes of the centre, etc have been criticized by states.

GST COMPENSATION•States argue that despite the pandemic hitting their revenue badly, the centre has not fulfilled the commitment to compensate the states under GST.

ELECTRICITY ACT•The act mandated states to privatize their DISCOMs, remove subsidies and provide for DBT and Vest the tariff deciding power with a central body etc

NATIONAL INVESTIGATION AGENCY ACT•The NIA act has been challenged by the Chhattisgarh government in the SC alleging that the act encroaches into the “policing” function. Police is an exclusive state subject and the NIA exercising the power of a police force is contrary to the federal division of subjects in Schedule 7.

DOWNGRADING A STATE INTO A UT•After the repeal of Art 370 and 35A, through the Jammu Kashmir reorganization act, the state of J&K has been downgraded into a UT.

MISUSE OF INVESTIGATIVE AGENCIES•The Enforcement Directorate, Narcotics Control Bureau, the CBI and the Income Tax dept etc. have been more enthusiastic to go after the opposition-ruled states and their prominent functionaries.

ROLE OF GOVERNORS•Self-Explanatory.

WHAT SHOULD BE THE WAY FORWARD?

EXPANDING THE POOL OF INTAKE• With the Government of India itself enthusiastically promoting lateral entry to posts in the Centre and providing an increased share of central deputation posts to the central services, there is no need to push unwilling IAS officers on central deputation.

STREAMLINING CENTRAL STAFFING SCHEME• Officers of the level of deputy secretary/director and above are usually appointed in central government ministries/departments (i.e. on central deputation) under the Central Staffing Scheme (CSS).
• The CSS needs to be streamlined with timely cadre review, selection and appointment and timely repatriation etc.

COOPERATIVE FEDERALISM• Non-availability of a sufficient number of officers at the Centre is affecting the functioning of the Central government since New Delhi needs the services of these officers to obtain fresh inputs in policy formulation and programme implementation. Similarly, states also benefit from the policy-level exposure of the officers which can improve state-level governance
• Thus, better consultation and coordination between the Union and states are needed for ensuring a win-win situation for both.

GREATER DECENTRALISATION• There should be greater decentralisation within the elected organs of the state, like the Panchayati Raj system. Greater control should be bestowed on people themselves.
• More decentralization must be accompanied by restructuring and rationalizing the government machinery at the Centre and states and giving control to local governments.

INTROSPECTION BY THE CENTRE• The centre should introspect and find out the reasons for the perceptible decline, over a couple of the last few years, in the number of officers opting to go on Central Deputation.
• The empanelment process based on 360n degree appraisal is one such issue that needs reforms.

DE CADRE POSTS• Many posts are manned by IAS and other AIS officers are strictly not cadred posts.
• So, such officers need to be relieved which will free up these officers for deputation.

THE CONCLUSION: As per the union government, a final view on the proposed amendment has not been taken. It is in the interest of the union, states and the officers to have wider consultation before finalizing the changes. Also, the larger issues related to cadre management, personal administration, centre-state relations and autonomy of civil services need to be addressed as a priority.
Questions:
1. The proposed IAS cadre(amendment) rules, 2022 addresses the problem of shortage of officers in the ministries and departments of the union government. Examine.
2. How far do you think the proposed IAS cadre(amendment) rules, 2022 is another instance centralization of Indian polity?
3. Political control of administration is the necessary concomitant of democratic accountability. Analyze the statement in the context of the proposed IAS cadre(amendment) rules, 2022.
4. Although the All India Services are the manifestations of the unitary features of Indian polity, their management should be governed by federal principles. Elucidate.

THE CONTEXT: It has been emphasised over and over again – climate change is not a phenomenon of the future. It is the phenomenon of now. Several parts of the country are experiencing record temperatures after long periods of winter, with heatwaves forecast in numerous states. According to the Indian meteorological department (IMD) began keeping statistics, the month of March this year (2022) was the hottest in 122 years. The rainfall deficit in India was as high as 72 per cent, with the deficit reaching 89 per cent in the country’s northwest.

In this article, we analyse what is a Heatwave? IMD Criteria for Heatwave, its impacts and its way forward.

THE BASICS

What is a heatwave?

• A Heat Wave is a period of abnormally high temperatures, more than the normal maximum temperature that occurs during the summer season in the North-Western parts of India.
• Heat Waves typically occur between March and June, and in some rare cases even extend till July. The extreme temperatures and resultant atmospheric conditions adversely affect people living in these regions as they cause physiological stress, sometimes resulting in death.

THE INDIAN METEOROLOGICAL DEPARTMENT (IMD) HAS GIVEN THE FOLLOWING CRITERIA FOR HEAT WAVES:

• Heat Waves need not be considered till the maximum temperature of a station reaches at least 40°C for Plains and at least 30°C for Hilly regions.

 Based on Maximum Temperature Department from Normal

• Heatwave: Departure between 4.5° C to 6.4°C
• Severe Heatwave: Departure >6.4°C

Based on Maximum Temperature

• Heatwave: Temperature ≥ 45°C
• Severe Heatwave: Max. Temperature ≥47°C

Warm Night:

Considered when Maximum Temperature ≥40°C and departures of Minimum Temperature from normal are as follows:

• Warm Night: Departure between 4.5°C to 6.4°C
• Very warm Night: Departure ≥6.4°C

CLIMATOLOGY OF HEATWAVES

• The high temperatures start building over central India in April and spread northwards during May. Due to the southwest monsoon onset during June, high temperatures are mostly seen over northwest India.
• The month of May experiences the maximum number of heat wave days along with maximum spatial coverage.
• Maximum heat wave events during the summer season are seen over the northwest and plains of north India and also over eastern and central India.
• The number of heatwave days ranges from 1-to 2 weeks and severe heat-wave days up to 1 week over the heat core zone of the country.

Favourable conditions of Heat Waves

• A heat wave is formed due to static high pressure in the upper atmosphere.
• This generates a hot mass of air and traps more heat due to a reduction in convection currents.
• This air mass accumulated heat and humidity causing abnormally high temperatures.

Human-Led Ecological Changes: The climate change impacts have also become more pronounced due to the fast ecological changes, including deforestation, which has rendered vast areas of land exposed to direct sunlight that was earlier protected by a green cover.

“Large-scale deforestation along the foothills of Himalayas for development purposes has disrupted the ecological balance and contributed to warmer conditions in those places. The situation in cities has worsened due to more dependency on air conditioners and the urban heat island effect which has increased temperatures.

Other Factors for heat waves are:

• Transportation/ Prevalence of hot dry air over a region.
• Absence of moisture in the upper atmosphere.
• The sky should be practically cloudless.
• Large amplitude anti-cyclonic flow over the area.
• Lack of pre-monsoon showers: Except for the southern peninsula and northeast regions, the weather has remained dry across the rest of the country. Once, in the last week, parts of Jammu and Kashmir and Delhi reported light to moderate rainfall. The lack of pre-monsoon showers has also led to an increase in the overall maximum temperature. Maharashtra recorded 63 per cent deficient rainfall from March 1 to April 26. (2022)

HOW INDIA METEOROLOGICAL DEPARTMENT (IMD) MONITORS THE HEATWAVE?

IMD has a big network of surface observatories covering the entire country to measure various metrological parameters like Temperature, Relative humidity, pressure, wind speed & direction etc. Based on daily maximum temperature station data, climatology of maximum temperature is prepared for the period 1981-2010 to find out the normal maximum temperature of the day for a particular station. Thereafter, IMD declared heat waves over the region as per its definition.

IMPACT OF HEATWAVES

What is the Impact of these Heat Waves?

Mortality and Morbidity: The Intergovernmental Panel on Climate Change (IPCC) in the Second Part of the AR6 Report flagged that heat extremes are causing human deaths and morbidity.

The increased heat will lead to an increase in diseases like diabetes, circulatory and respiratory conditions, as well as mental health challenges.

• Accelerating Global Warming: According to the former IMD DG who led India’s weather department from 2016 to 2019, heatwaves are likely to get stronger with the rapid thinning of the Arctic Sea ice, which is now at its all-time low due to global warming.
• Will Fuel More Thunderstorms: Intense heating of the land will also fuel more thunderstorms, which is yet another weather extreme that continues to claim hundreds of lives every year. “As temperatures increase, and there are more heatwaves, these long spells will be broken by thunderstorms or dust-storms, which will also get intense and stronger.

STRATEGY TO DEAL WITH HEATWAVES

• In 2016, the NDMA drew up the first national guidelines for heatwaves titled ‘Preparation of Action Plan–Prevention and Management of Heat Wave’.
• The National Guidelines on Heat Wave mentions the roles and responsibilities of the central and state government agencies, district administrations, local self-governments, NGOs, civil society organisations and other stakeholders in a matrix format.

Heat Action Plan

Since 2013, the India Meteorological Department (IMD), in collaboration with local health departments, has started issuing heat action plans in many parts of the country to forewarn about heatwaves as well as advise action to be taken during such occasions.

India Meteorological Department issues the following colour code impact-based heat warning jointly with National Disaster Management Authority:

IMD issued an Orange alert for Rajasthan, Madhya Pradesh, and Maharashtra’s Vidarbha area. For weather alerts, the IMD employs four different colour codes. Green indicates that no action is required, yellow indicates that you should watch and stay informed, orange indicates that you should be prepared, and red indicates that you should take action. Temperatures in portions of northwest India could reach 47 degrees Celsius, according to forecasters.

THE WAY FORWARD:

Adopting A More Sensitive Approach: The impact of such excessive heat needs to be understood from the point of view of common people — daily labourers; farmers; traders; fishermen etc.

• Beyond numbers and graphs that capture the impact of the climate crisis, the human experience of living in oppressive heat needs to be understood by policymakers and measures should be taken accordingly.

Cooling Shelters: The government should come out with a policy to deal with the suffering and disability caused by heat extremes in different parts of the country.

• Water kiosks, staggered outdoor work hours, and cool roofs for buildings and homes are certain things that should be put in place immediately.

Passive Cooling to Reduce Urban Heat Islands: Passive cooling technology, a widely-used strategy to create naturally ventilated buildings, can be a vital alternative to address the urban heat island for residential and commercial buildings.

• The IPCC report cites ancient Indian building designs that have used this technology, which could be adapted to modern facilities in the context of global warming.

Action Plans Similar to Ahmedabad: As per the IPCC Report, Ahmedabad has shown a way to combat heat extremes by heat-proofing buildings.

• After the heat action plan was implemented in 2013 in Ahmedabad, heat-related mortality was reduced by 30% to 40% over the years. Similar plans like that of Ahmedabad can be implemented in vulnerable regions.

THE CONCLUSION:Increased exposure to heatwaves needs a policy response, nationally and globally. Long-term measures should be taken to address the issue in the wake of global warming and climate change. Afforestation drives to increase green cover. A further reduction in the share of coal in the energy mix through sustained support for renewable energy, particularly solar photovoltaic, must form the cornerstone of national policy.

 ADD TO YOUR KNOWLEDGE

During the intense heatwave in Delhi, when the mercury surpassed 35 degrees Celsius even at night, discussions on the growing number of urban heat islands in the Capital have once again come to the fore. According to experts,“The combination of high day and night-time temperatures is dangerous as it seriously impacts the blood circulation and other bodily functions of people, especially the elderly”.

As the house becomes hot and is unable to cool down by midnight, it starts acting as a heat trap. In such a situation, the body gets heated overall and the heart starts pumping more blood to fight dehydration if adequate water intake is not maintained. If one’s heart is already weak, it may fail and the person may die due to cardiac failure induced due to heatwaves.”

Heat-related deaths: Data on ‘Accidental Deaths & Suicides in India’ released by the National Crime Records Bureau show over the years heatstrokes have become the second leading cause of death from a natural force in India, with 11,555 people being killed in 2011 to 2020 due to the condition.

Growing heat island effect: An image captured by NASA on May 5, 2022 showed how night-time temperatures in Delhi and adjoining villages were above 35 degrees Celsius, peaking at about 39 degrees Celsius, while the rural fields nearby had cooled to around 15 degrees Celsius by then.

The World Weather Attribution network, which analysed the heat patterns in India from March-April, found that the probability of long-duration heatwaves had increased by 30 times due to human-induced climate changes.

Mitigative approach: One way of countering the growing impact of urban heat islands is ‘green infrastructure’ that includes cool roofs or painting house roofs in a light colour to reflect heat and using sustainable cooling mechanisms. Promoting urban forestry and green transport can also help cut down heat emissions.

QUESTIONS TO PONDER:

1. What are heat waves? What are the favourable conditions for Heat waves and Suggest measures to create a buffer against high temperatures?
2. What are Urban Heat Islands? Discuss its causes and impacts in the context of the urban landscape.
3. What are the criteria for declaring Heat waves in India? Discuss the different colour codes employed by IMD for heatwave warning.

THE CONTEXT:In a diverse country like India, financial inclusion is a critical part of the development process. The state of financial inclusion has improved considerably over time. However, financial inclusion hasn’t reached the poorest of the poor and there exist many bottlenecks and challenges which need immediate attention and the recent pandemic has raised the concerns related to financial inclusion. This article explains the progress made so far and what more can be done in the arena of financial inclusion.

FINANCIAL INCLUSION:
Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.
• Financial inclusion has been identified as an enabler for 7 of the 17 Sustainable Development Goals.
• The G20 committed to advancing financial inclusion worldwide and reaffirmed its commitment to implement the  G20 High-Level Principles for Digital Financial Inclusion.
• The World Bank Group considers financial inclusion a key enabler to reducing extreme poverty and boosting            shared prosperity.

“Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low-income groups at an affordable cost.” The Committee on Financial Inclusion
Chairman: Dr. C. Rangarajan.
“Financial Inclusion, broadly defined, refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity products.” The Committee on Financial Sector Reforms Chairman: Dr Raghuram G. Rajan.

FINANCIAL INCLUSION INITIATIVES

JAN DHAN-AADHAR-MOBILE (JAM) TRINITY
• The combination of Aadhaar, PMJDY and an increase in mobile communication has transformed how citizens access government services.
• According to estimates in August 2021, the total number of Jan Dhan scheme beneficiaries was more than 430 million.
• Aadhaar has significantly altered the concept of individual identity, resulting not only in a secure and easily verifiable system but also in an easy-to-obtain system that will aid in the financial inclusion process.
• The government has also launched a number of flagship schemes to promote financial inclusion and provide financial security in order to empower the country’s poor and unbanked citizens.
• PAHAL (Pratyaksh Hanstantrit Labh) or the Direct Benefit Transfer of LPG (DBTL) scheme is a well targeted system of subsidy delivery to LPG consumers aimed at rationalizing subsidies, based on an approach to cut subsidy leakages, but not subsidies themselves. SAHAJ Scheme is also a component under PAHAL which enables people to apply for LPG connections online.
• With the outbreak of the COVID-19 pandemic and the imposition of lockdown and social distancing norms, DBT emerged as a boon in providing succour and relief to millions of citizens whose livelihood was impacted. At present it disburses benefit for 420 schemes under 56 ministries.
• The Pradhan Mantri Mudra Yojana, the Stand-Up India Scheme, the Pradhan Mantri Jeevan Jyoti Bima Yojana, the Pradhan Mantri Suraksha Bima Yojana, and the Atal Pension Yojana are also among them.
FINANCIAL SERVICES EXPANSION IN RURAL AND SEMI-URBAN AREAS
• The Reserve Bank of India (RBI) and NABARD have launched initiatives to promote rural financial inclusion.
• These include the establishment of bank branches in remote regions.
• Kisan Credit Cards (KCC) are being issued.
• Self-help groups (SHGs) are linked with banks.
• Increasing the number of ATMs.
• Business correspondent model of banking.
DIGITAL PAYMENTS PROMOTION (DIGITAL FINANCIAL INCLUSION)
• In comparison to the past, digital payments have become more secure thanks to NPCI’s strengthening of the Unified Payment Interface (UPI).
• The Aadhar-enabled payment system (AEPS) allows an Aadhar-enabled bank account (AEBA) to be used at any location and at any time through the use of micro ATMs.
• The payment system has become more accessible as a result of offline transaction-enabling platforms such as Unstructured Supplementary Service Data (USSD), which allows users to use mobile banking services without the need for an internet connection, even on a basic mobile handset.
IMPROVING FINANCIAL LITERACY
• The Reserve Bank of India has launched a project called “Project Financial Literacy.”
• The project’s goal is to disseminate information about the central bank and general banking concepts to a variety of target groups, including school and college children, women, the rural and urban poor, military personnel, and senior citizens.
• ‘Pocket Money’ is the flagship programme of the Securities and Exchange Board of India (SEBI) and the National Institute of Securities Markets (NISM) aimed at increasing financial literacy among school students.
• The goal is to teach students about the value of money and the importance of saving, investing, and financial planning.

RECENT EXPERIENCES WITH FINANCIAL INCLUSION

INCREASED ACCESS TO BANKS
• According to the World Bank’s Global Financial Inclusion Database or Global Findex report (2017), 80% of Indian adults have a bank account against the 53% estimated in 2014.
• The Findex 2017 report also estimates that 77% of Indian women have bank accounts, against 43% in 2014.
MULTIPLIER EFFECT
• These initiatives have brought about major changes to increase the last-mile connectivity of financial services to its people.
• By providing access to financial resources to underprivileged and marginalised sections of society, financial inclusion has the potential to reduce poverty, and create jobs, among others.
ENHANCING ACTIVE PARTICIPATION OF CITIZENRY
• Earlier, private institutions did not engage with the poor as customers on a significant scale.
• This has now changed, and there has been active participation of the private players (payment banks like Paytm, airtel money and Jio money), as they have also realised that bringing the poor into the financial net is beneficial to their business models as well.
INTEGRATION OF FINANCIAL SERVICES
• The convergence of the JAM trinity with the Direct Benefit Transfer (DBT) scheme has largely been successful.
• Due to this, there has been a significant improvement in terms of targeted and accurate payments.
• It has also helped in weeding out duplication of entries and bringing down the reliance on cash mode of payments.

CHALLENGES TO FINANCIAL INCLUSION

DIGITAL DIVIDE
The following are the most common barriers to the adoption of digital technology that could promote financial inclusion:
• Inadequate availability of appropriate financial products.
• The inability of stakeholders to use digital services due to a lack of skills.
• Problems with infrastructure.
• Low-income customers who cannot afford the technology needed to access digital services.
IMPLEMENTATION ISSUES
• The Jan Dhan scheme resulted in the creation of a large number of dormant accounts that never saw any banking transactions.
• All such activities impose costs on the institutions, and thus, massive operational costs proved to be detrimental to the overall goal.
• To avoid these unintended consequences, it is critical that all stakeholders participate in such programmes with proper intent and not just for the sake of participating.
ACCESS TO BANK ACCOUNTS IS NOT UNIVERSAL
• Since bank accounts provide access to all financial services it is imperative for every citizen to have a bank account.
• However, according to a World Bank report, approximately 190 million adults in India do not have a bank account, making India the world’s second-largest unbanked population after China.
• The financial Inclusion Index (FI-Index) is composed by the Reserve bank of India based on multiple parameters to reflect the broadening and deepening of financial inclusion in the country. The FI Index is published annually in July for the financial year ending previous March. The annual FI-Index for the period ending March 2021 is 53.9 as against 43.4 for the period ending March 2017. ( Look for FI-Index in July 2022)
INFORMAL AND CASH-DOMINATED ECONOMY
• India has a heavily dominated cash economy, which makes digital payment adoption difficult.
• Furthermore, the International Labour Organization (ILO) estimates that approximately 81 per cent of all employed people in India work in the informal sector.
• The combination of a huge informal sector along with a high dependence on cash mode of transaction poses an impediment to digital financial inclusion.
INADEQUATE CREDIT PENETRATION
• The lack of information available to formal creditors to determine creditworthiness is one of the main constraints in providing credit to low-income households and informal businesses. As a result, the cost of credit is high.
• As a result, the number of loan accounts per 1,000 adults in India was 154 in 2016. This is quite low when compared to comparable economies such as the BRICS nations.
GENDER INEQUALITY IN FINANCIAL INCLUSION
• According to the 2017 Global Findex database, 83 per cent of males over the age of 15 in India had a financial institution account in 2017, compared to 77 per cent of females.
• This is due to socioeconomic factors such as men having greater availability of mobile handsets and internet data facilities than women.

TECHNOLOGY AND FINANCIAL INCLUSION

AADHAAR AND THE INDIA STACK ARCHITECTURE

• It has addressed the issue of de-duplicated identity. While there are concerns about privacy, the issue of connectivity in remote areas, about exclusion and false rejections, it is to be accepted that there is a widespread perception and acceptability that this is a good identity document.

ADDRESSING THE INFORMATION ASYMMETRY

• Over a period of time, the transactions of the poor have been captured both in the books as well as in the books of Self Help Groups the Microfinance Institutions, thereby giving a transaction trail. This transaction trail can be seen as a proxy for future cash flows for a banker to take a call on the loans. With the need to upload the credit data to the four credit bureaus and the initiative of a public credit registry, the issue of information asymmetry is addressed by the use of active data capture specific to the loan activities.

INTEROPERABILITY

• .The computerisation of banks, interoperability between banks and a solid payments and settlements backbone provided by the National Payments Corporation of India (NPCI) has made contactless remittances as well as small ticket cashless transactions possible.
• .The rollout of technology for payments through mobile using QR code and making interoperability free for the clients has given a ubiquitous digital push.

• WHETHER THE PANDEMIC BOOSTED FINANCIAL INCLUSION IN INDIA?

 YES 

• The spread of digital financial services during the pandemic is welcome news. Digital financial systems help alleviate poverty by increasing the speed, security, and transparency of transactions. They create space for development of sustainable financial products that can cater to low-income and vulnerable groups by removing barriers such as lack of identification, formal income, and geographical distance.
• The lockdown and social distancing imposed by the authorities to contain the spread of the virus have led to a significant increase in the value and number of online transactions. The pandemic has revolutionize digital financial services. Advances in digital money, online banking, and fintech services have significantly impacted small businesses and low-income households. The ability of digital financial services to increase financial inclusion and thus economic growth is a potential boon.

  NO

• In times of crisis, when the sources of income are restricted, the poor households were vulnerable to approach unscrupulous moneylenders for their financial needs. To tackle the crisis, these households are likely to adopt unfavorable survival mechanisms such as liquidation of assets, a decline in nutritious food consumption, and abortion of healthcare services.
•  Amid the crisis, the unavailability of adequate financial services may exacerbate their economic hardships. The inaccessibility of financial services to the poor and informal sector workers has lead these households into a poverty trap.

THE ANALYSIS:
1. Financial inclusion is an important keystone of the socio-economic development of a country as well as a significant enabler of poverty alleviation & boosting prosperity. Bringing every citizen under the formal banking system, encouraging digital payments and making financial services easily accessible and affordable for people across the country are some key aspects of financial inclusion.
2. According to SBI Research report on Financial Access Survey, India has stolen a march in financial inclusion with the initiation of PMJDY accounts since 2014, enabled by a robust digital infrastructure, careful recalibration of bank branches and use of the Banking Correspondent model.
3. Though the pandemic has been hard on most of the population it has provided a significant boost to digital banking and financial inclusion but still there a long road ahead.

THE WAY FORWARD:
1. While India has made great strides in the journey toward financial inclusion, recently with the advent of digital payment systems, there are notable digital divide and financial literacy concerns in the country. The most common barriers such as lack of skills among the stakeholders to use digital services, infrastructural issues, teething problems between various systems, and low-income consumers’ inability to afford the technology required to access digital services shall be addressed.
2. In terms of advancing financial literacy, the government’s ongoing efforts under Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) (which aims to train one person per household i.e., 6 crore persons in rural areas on digital literacy) were suffering from a paucity of funds. Against this backdrop, the Parliamentary Standing Committee on IT submitted its report on the review of the National Digital Literacy Mission (NDLM) in March 2022, with a host of recommendations. Such recommendations shall be discussed and debated to have a better policy and implementation.
3. Leveraging JAM Trinity: Technology should be used to improve the assessment of creditworthiness for households and informal businesses. With the adoption of appropriate technology a new data-sharing framework (using Jan Dhan and Aadhaar platforms), to enable easier access to credit shall be framed.
4. Need for Data Protection Regime: In addition to greater digitization, there is also a need to strengthen cyber security and data protection regime in the country.
5. Leveraging Differentiated Banks: Differentiated Banks like Payment banks and small finance banks can be leveraged to scale up payments systems in underserved areas.
6. Promoting USSD for Rural Areas: Payments through the USSD channel should be promoted (by reimbursing the charges incurred in the USSD process), as they have an advantage over the internet in that it can also cover a large proportion of non-smartphone users. In India, USSD can be particularly useful in rural areas where some segments still do not have reliable access to the internet.

THE CONCLUSION:Being able to have access to a transaction account is the first step toward broader financial inclusion since a transaction account allows people to store money, and send and receive payments. A transaction account serves as a gateway to other financial services, which is why ensuring that people nationwide can have access to a transaction account continues to be an area of focus. For the success of financial inclusion in India, there has to be a multidimensional approach through which existing digital platforms, infrastructure, human resources, and policy frameworks are strengthened and new technological innovations should be promoted. If adequate measures are taken to tide over the existing problems, financial inclusion has the potential to amplify the benefits of economic growth to the poor.

MAINS PRACTICE QUESTIONS:
1. Discuss various challenges of financial inclusion for the Indian economy. Also mention steps taken by the Indian government toward financial inclusion.
2. Even after 70 years of independence, a large section of the Indian population still remains unbanked. This malaise has led to a generation of financial instability and pauperism among the lower-income group. Suggest measures to expand the financial inclusion net in India.
3. While India has made great strides in the journey towards financial inclusion recently with the advent of digital payment systems, there is notable digital divide and financial literacy concerns in the country. Critically analyse.

THE CONTEXT: The ‘State of Inequality in India’ report has been compiled by the Institute for Competitiveness and released by Economic Advisory Council to Prime Minister (EAC-PM) chairperson Bibek Debroy on 18^th May 2022. The report demonstrates the wide gap between the top and bottom earners which is getting wider and further states that income deprivation can increase the probability of descent into poverty. This article explains the findings and suggestions of the report.

CONSTITUTIONAL PROVISIONS TO ADDRESS INEQUALITY IN INDIA The PREAMBLE itself mentions Justice social, economic and political; equality of status and opportunity which becomes the basis for various provisions in the Constitution to address the challenges of Inequality in India. Some of the provisions are Provisions under Part III ( Fundamental Rights) provide for equality before the law, of employment, prohibits discrimination, and other rights for children, women and other minority and underprivileged sections of the society. Provisions under Part IV (DPSPs), especially A.38 envisage the responsibility of the state to secure a social order for the promotion of the welfare of the people. Article 39. Certain principles of policy to be followed by the State. – The State shall, in particular, direct its policy towards securing- (a) that the citizens, men and women equally, have the right to an adequate means of livelihood; (b) that the ownership and control of the material resources of the community are so distributed as best to subserve the common good; (c) that the operation of the economic system does not result in the concentration of wealth and means of production to the common detriment;

Institute for Competitiveness, India is the Indian subsidiary of the global network of the Institute for Strategy and Competitiveness of the Harvard Business School.

• ABOUT THE REPORT:
• 1. The report compiles information on inequities across sectors of health, education, household characteristics and the labour market. Inequities in these sectors make the population more vulnerable and trigger a descent into multidimensional poverty.
• 2. The report stretches the narrative on inequality by presenting a comprehensive analysis that shapes the ecosystem of various deprivations in the country, which directly impacts the well-being of the population and overall growth.
• PARTS OF THE REPORT
•  The report consists of two parts – Economic Facets and Socio-Economic Manifestations which looks at five key areas that influence the nature and experience of inequality.
• FIVE KEY AREAS
•  These are income distribution, labour market dynamics, health, education and household characteristics.
• SOURCE OF DATA FOR THE REPORT
• The report is based on the data derived from various rounds of the Periodic Labour Force Survey (PLFS), National Family and Health Survey (NFHS) and United Information System for Education Plus.

 KEY HIGHLIGHTS OF THE REPORT

• WEALTH CONCENTRATION
• Urban areas have a 44.4% wealth concentration in the highest quintile (20%) compared to a meagre 7.1% concentration in rural areas.
• UNEMPLOYMENT RATE
•  India’s unemployment rate is 4.8% (2019-20), and the worker population ratio is 46.8%.
• In 2019-20, among different employment categories, the highest percentage was self-employed workers (45.78%), followed by regular salaried workers (33.5%) and casual workers (20.71%).
• The share of self-employed workers also happens to be the highest in the lowest income categories.
• The Labour Force Participation Rate (LFPR) has risen from 49.8% in 2017-18 to 53.5% in 2019-20.
• HEALTH
• The results of NFHS-4 (2015-16) and NFHS-5 (2019-21) have shown that 58.6% of women received antenatal check-ups in the first trimester in 2015-16, which increased to 70% by 2019-21.
• 78% of women received postnatal care from a doctor or auxiliary nurse within two days of delivery, and 79.1% of children received postnatal care within two days of delivery.
• However, nutritional deprivation in terms of overweight, underweight, and prevalence of anaemia (especially in children, adolescent girls and pregnant women) remains areas of huge concern requiring urgent attention.
• Additionally, low health coverage, leading to high out-of-pocket expenditure, directly affects poverty incidences.
• HEALTH INFRASTRUCTURE
• In the area of health infrastructure, there has been a considerable improvement in increasing the infrastructural capacity with a targeted focus on rural areas.
• From 1,72,608 total health centres in India in 2005, total health centres in 2020 stood at 1,85,505.
• States and Union Territories like Rajasthan, Gujrat, Maharashtra, Madhya Pradesh, Tamil Nadu and Chandigarh have significantly increased health centres (comprising Sub-Centres, Primary Health Centres, and Community Health Centres) between 2005 and 2020.
• HOUSEHOLD CONDITIONS
• By 2019-20, 95% of schools would have functional toilet facilities on the school premises (95.9% functional boy’s toilets and 96.9% functional girl’s toilets).
• 80.16% of schools have functional electricity connections with States and Union Territories like Goa, Tamil Nadu, Chandigarh, Delhi, Dadra and Nagar Haveli and Daman and Diu, Lakshadweep and Puducherry have achieved universal (100%) coverage of functional electricity connections.
• According to the National Family Health Survey-5 (2019-21), 97% of households have electricity access, 70% have improved access to sanitation, and 96% have access to safe drinking water.
• EDUCATION
• The Gross Enrolment Ratio has also increased between 2018-19 and 2019-20 at the primary, upper primary, secondary and higher secondary.

 MAJOR SUGGESTIONS BY THE REPORT

• UNIVERSAL BASIC INCOME (UBI) SCHEME
• The report has suggested that the Government should launch a guaranteed employment programme for the urban unemployed and roll out a universal basic income (UBI) scheme to reduce income gaps.
• RAISE MINIMUM INCOME
•  The report also recommended steps to raise minimum income to make vulnerable sections able to save and to set aside an asset with the idea of using it sometime in the future when it is needed.
• LABOUR FORCE PARTICIPATION
• Looking at the difference between the labour force participation rate in rural and urban areas, we can understand that the urban equivalent of schemes like MGNREGS that are demand-based and offer guaranteed employment should be introduced so that the surplus labour is rehabilitated.
• EXPENDITURE TOWARD SOCIAL SERVICES
• The Government must allocate more percentage of the expenditure towards social services and the social sector to make the most vulnerable population resilient to sudden shocks and stop their descent into poverty.
• MAPPING THE POVERTY
• The most important aspect of measuring poverty in a multi-dimensional context requires mapping the mobility in and out of poverty.
• PERIODIC LABOUR FORCE SURVEY (PLFS)
• The results of the three rounds of the Periodic Labour Force Survey (PLFS) noted that in the three years excepting for very marginal changes, the top 1 per cent of the population held 6-7 per cent of the total income earned, while the top 10 per cent held a third.
•  The report shows a relatively better picture of the country’s income pyramid than in the World Inequality Report (WIR) 2022
• ·         According to the WIR, India stood as a poor and very unequal country, with an affluent elite.
• ·         In 2021, the top 10% of the population had 57% of the total national income and the top 1% held 22%.
• ·         The bottom half of the population held just 13% of the national income in 2021.

SIGNIFICANCE OF THE REPORT

IMPLICATIONS OF RISING INEQUALITY

• LOWER INVESTMENT LEVELS
• Marginal propensity to save is high in upper-income levels while marginal propensity to consume is more at the lower levels. One cannot spend beyond a limit.
• The surplus goes into savings, which, in turn, get transformed into increased investments for the economy through financial intermediaries.
• HIGHER VULNERABILITIES TO EXTREME EVENTS
• Poor people have little to no savings or wealth which makes it very difficult for them to survive in extreme situations like pandemics, Disasters etc.
• UNDERMINES DIGNITY
• People with fewer resources have to work day and night, an off day may deprive them of a full meal for that day.
• They starve for food, clothing and other basic things which undermines their right to a dignified life under Article 21.
• HAMPERS PROGRESS OF FUTURE GENERATIONS
• Lack of access to income and wealth hampers the ability of the poor to access the levers (like education) that enable upward mobility.
• Children born in poor families remain trapped in poverty, perpetually.
• HIGH CRIME RATES
•  A study published in the journal ‘Nature’ showed that more unequal societies tend to have higher crime.
• Inequitable distribution of wealth leads to lower social trust.

THE CHALLENGES IN ADDRESSING INEQUALITY

• VICIOUS CYCLE OF POVERTY
• Poor health, education and skill set lead to low productivity and unemployment/underemployment, fewer savings keeping the vulnerable sections in the Poverty Trap perpetually.
• LOW FEMALE LABOR FORCE PARTICIPATION RATE
• Female LFPR still remains low. The Report notes that India’s FLFPR has increased from 23.3% in 2017-18 to 30% in 2019-20 (although PLFS survey has put this figure to 22.8% for 2019-20).
• Lack of Education, Early Marriage, household responsibilities etc. force women to opt-out of jobs which reduces their income.
• POOR COVERAGE OF SCHEMES
• A worrisome 85.9% of people from rural areas and 80% from urban areas are not covered under health schemes. The coverage is inadequate in other social sector schemes as well.
• HEATH LACUNAE
• Nutritional deprivation in terms of overweight, underweight, and prevalence of anaemia (especially in children, adolescent girls and pregnant women) remains areas of huge concern requiring urgent attention, as per the report.
• Additionally, low health coverage, leading to high out-of-pocket expenditure, directly affects poverty incidences.
• GLOBAL UNCERTAINTIES
• The continuation of COVID-19 and the Russia-Ukraine conflict have pushed the inflation levels in the country thereby creating more problems for the poor.
• A recent World Bank estimate shows that 1% increase in the food price will push 10 million people into extreme poverty.
• NO DATA TO MEASURE INCOME INEQUALITY
•  In India, we lack comprehensive data for measuring income inequality.
• The closest was NCAER data many years ago (2018).
• VERY OLD AND OUTDATED DATA
• The last comprehensive NSS data on consumption and expenditure is for 2011-12.
• NO EXACT POVERTY FIGURES
• In the absence of data on consumption expenditure, a clear articulation of the poverty line and also of poverty numbers is not possible.
• All kinds of extrapolation are done on the basis of 2011-12 data, on the basis of the assumed Tendulkar poverty line.
• The pandemic then led to a decline in national income in 2020-21
• Given the increased pace of formalisation of the economy during the last two years, many analysts reckon the income gap may have widened since 2019-20.

STEPS TAKEN TO REDUCE INEQUALITY

• PROGRESSIVE TAXATION
• A progressive tax is one where the average tax burden increases with income. High-income families pay a disproportionate share of the tax burden, while low- and middle-income taxpayers shoulder a relatively small tax burden.
• FINANCIAL INCLUSION
• Jan Dhan-Aadhar-Mobile Trinity (or JAM Trinity): It focuses on mobile numbers, Aadhar Card and post office accounts as alternative financial delivery mechanisms to ensure that benefits reach the poor households seamlessly.
• AYUSHMAN BHARAT
• It focuses on providing care through Health Wellness Centres (AB-HWC) covering child and maternal health services, non-communicable diseases, and free drugs and diagnostic services.
• SAMAGRA SHIKSHA ABHIYAN
• It is an Integrated Scheme for School Education. This programme subsumes the three erstwhile Centrally Sponsored Schemes of Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education (TE).
• MGNREGA
• It guarantees work to every rural household with an aim to enhance the livelihood security of people.
• PRADHAN MANTRI KISAN SAMMAN NIDHI (PM-KISAN)
• To supplement the financial needs of the Small and Marginal Farmers in procuring various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle.
• To protect them from falling in the clutches of moneylenders for meeting such expenses and ensure their continuance in farming activities.
• PRADHAN MANTRI GARIB KALYAN ANN YOJANA (PMGKAY)
• The scheme aimed at providing each person who is covered under the National Food Security Act 2013 with an additional 5 kg grains (wheat or rice) for free, in addition to the 5 kg of subsidised food grain already provided through the Public Distribution System (PDS).
• INITIATIVES FOR SKILL DEVELOPMENT
• Pradhan Mantri Kaushal Vikas Yojana: The flagship Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme was launched in 2015 to provide short-term training, skilling through ITIs and under the apprenticeship scheme. Since 2015, the government has trained over 10 million youth under this scheme.
• SANKALP and STRIVE: The SANKALP programme which focuses on the district-level skilling ecosystem and the STRIVE project which aims to improve the performance of ITIs are other significant skilling interventions.
• THE ANALYSIS OF THE REPORT:
• The timing of the report and some of its recommendations are also crucial — for instance, one of its key recommendations call for introducing UBI. This is not a novel idea.
• The Ministry of Statistics and Programme Implementation had decided not to release the results of the all-India Household Consumer Expenditure Survey (CES) conducted by the National Statistical Office (NSO) during 2017-2018, citing “data quality issues”, the report shall be made public.
• The State of Inequality in India Report concedes that while earnings have risen over the years, the benefits of that growth have largely remained concentrated and this has marginalised the poor further. We have made some progress in the past but still miles to go
• THE WAY FORWARD:
• The government should raise the minimum wage rate, especially in the unorganized sector wherein people get very less social security benefits. Assurance of minimum wage can be done by proper implementation of MGNREGA and the introduction of a similar scheme in urban areas.
• The debate on Universal Basic Income has been going on for quite some time. The Government can now shift to action mode and take steps for a speedy rollout.
• There should be a higher allocation of money towards social services. India requires 6% of GDP in education and 2.5% of GDP in Health to ensure equitable development.
• There should be a greater focus on digitization and JAM usage in order to reduce inclusion and exclusion errors in schemes.
• THE CONCLUSION: B.R. Ambedkar had issued a grim warning in 1949 that if we continue to deny social and economic inequality for long, we could “blow up the structure of political democracy”. It is time to act on his advice for socio-economic equality. The findings of the inequality report clearly indicate that while there has been some improvement in the employment and income parameters in the recent pre-COVID-19 years, the benefit has been largely restricted to the dominant groups at the expense of the disadvantaged groups who have been marginalised and deprived of the gains.
• Mains Practice Questions:
• 1. Is inequality getting worse in India, and what does it mean for the poor in the country? Justify your opinion and suggest measures to reduce the inequalities.
• 2. While earnings have risen over the years, the benefits of that growth have largely remained concentrated and this has marginalised the poor further. Critically analyse and suggest measures to further the socio-economic equality.

THE CONTEXT:Indo-Pacific Economic Framework for Prosperity (IPEF) is an economic initiative launched by United States President Joe Biden on May 23, 2022. It marks the beginning of a new phase of economic cooperation and integration in the region juxtaposed against China’s ambitious Belt and Road Initiative (BRI) and Regional Comprehensive Economic Partnership (RCEP) led by it. This article explains the Indo-Pacific Economic Framework and its significance and challenges in detail.

WHAT IS THE IPEF?

• The Indo-Pacific Economic Framework for Prosperity (IPEF) aims to reassert U.S. economic engagement and provide a U.S.-led alternative to China’s economic statecraft in the region.
• The 12 countries other than the U.S. are India, Australia, Brunei, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam (Taiwan is not part of it).
• Among 12, Seven are ASEAN Countries. In Myanmar, Laos and Cambodia have not joined the group.
• It aims to strengthen economic partnerships among participating countries to enhance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness in the Indo-Pacific region.
• They together account for 40% of the world’s GDP.
• U.S. officials have emphasized that IPEF is not a free trade agreement but one that will offer flexibility.

The negotiations will be along four main pillars:

FEATURES OF THE INDO-PACIFIC ECONOMIC FRAMEWORK

• The U.S. Trade Representative (USTR) will be spearheading the trade pillar, while the others (I.e., supply chain resilience, clean energy and decarbonization, and taxes and anti-corruption measures) will fall under the purview of the U.S. Department of Commerce.
• On the trade front, the endeavour is to establish “high-standard, inclusive, free, and fair-trade commitments” to fuel economic activity and investments benefitting both workers and consumers. What stands out, however, is U.S.’s willingness to extend cooperation for enhancing the digital economy and trade.
• Digital trade incorporates not just the purchase and sale of goods online but also data flows that enable the operation of global value chains and services, like smart manufacturing, platforms and applications. The idea here is to overcome downstream costs for businesses as well as upscale the ability to utilize data processing and analysis and enhance cybersecurity outside their geographies.
• As for supply chain resilience, the framework aspires to secure access to key raw and processed materials, semiconductors, critical minerals and clean energy tech, particularly for crisis response measures and ensuring business continuity. U.S. Commerce Secretary Gina Raimondo, in a press briefing, explained how workers at auto-manufacturing plants in Michigan experienced massive furloughs when semiconductor packaging operations were closed in Malaysia because of a COVID outbreak.
• In line with the Paris Agreement, the clean energy, decarbonization and infrastructure pillar would provide technical assistance and help mobilize finance, including concessional finance, to improve competitiveness and enhance connectivity by supporting countries in the development of sustainable and durable infrastructure for adopting renewable energy.
• Renewable energy is cheaper than fossil fuels; however, its high start-up costs when compared to using existing infrastructure stave off its adoption by the mainstream. Public policy analysts at the Centre for Strategic and International Studies (CSIS) suggest that regional partners would like the U.S. to help close the gap through climate financing and expertise sharing.
• Lastly, the pillar on tax and anti-corruption is aimed at promoting fair competition by enforcing the robust tax, anti-money laundering and anti-bribery regimes in line with existing multilateral obligations, standards and agreements to curb tax evasion and corruption in the region.

SIGNIFICANCE OF INDO-PACIFIC ECONOMIC FRAMEWORK (IPEF)

• Indo-Pacific Economic Framework for Prosperity (IPEF) aims to strengthen economic partnerships among participating countries to enhance resilience, sustainability, inclusiveness, economic growth, fairness, and competitivenessin the Indo-Pacific region.
• The IPEF was launched with a dozen initial partners who together represent 40% of the world GDP.
• It is a declaration of a collective desire to make the Indo-Pacific region an engine of global economic growth.
• China not being a member gives the group a distinct geopolitical flavour since all its members share worries about China’s muscular nationalism and expansionist ambitions.
• India’s joining of IPEF is a strong statement of commitment to Indo-Pacific goals and to broadening regional economic cooperation, particularly after it walked out of the 15-nation RCEP.
• The Indo-Pacific covers half the population of the world and more than 60% of the global GDP, and the nations who will join this framework in the future are signing up to work toward an economic vision that will deliver for all people.

WHAT IS THE IPEF, IF NOT A TRADE DEAL?

• It is not a traditional trade pact and does not reduce tariffs or grant better access to the American market. Those features would have been a clear draw for many Asian nations, which are comparing how the new deal stacks up against other trade agreements such as the TPP’s successor, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership minted over the past few years.
• IPEF is designed as a tool to strengthen U.S. economic cooperation with Asian partners and assist the U.S. in re-engagement with the region since the Trump Administration withdrew from Trans-Pacific Partnership (TPP) in 2017.
• It provides for the participation of members in “pillars” that include setting standards on trade in digital goods and services, obtaining commitments to ease bottlenecks in critical supply chains and enabling the transition to clean energy.

CHALLENGES WITH IPEF

• UNCERTAINTY · It is set to be based on a presidential executive order and could be discarded by the coming U.S. administrations as it is not a senate-ratified treaty.
• QUESTIONABLE PROCESS. Unlike traditional FTAs, the IPEF does not subscribe to the single undertaking principle, where all items on the agenda are negotiated simultaneously, with countries expected to sign the final agreement in its entirety or withdraw.Rather, the IPEF employs an ‘à la carte’ approach in which countries would launch separate negotiations under the four pillars.
• ·A country would be required to sign up for all components within a pillar, but participation in all pillars is optional. This indicates that negotiations on various pillars will be handled at variable speeds with different groups of countries.
• · The outcome would be a matrix, with some countries making commitments in all areas and others making in only a few. Commitments might also vary, from sharing information to binding obligations.
• NOT A FREE TRADE AGREEMENT. U.S. officials have made it clear that IPEF is not a Free Trade Agreement, nor will it discuss tariff reductions or increasing market access, raising questions about its utility.
• The four pillars also lend themselves to some confusion, drawing into question whether there is enough common ground among the 13 countries (that are part of very different economic arrangements) to set standards together or be open to issues that vary for each country.
• MORE UNILATERAL AND NOT CONSENSUS-BASED. Unlike traditional trade blocks where the agreements are the results of arduous negotiations by the members, the IPEF is driven primarily by the USA.
• ISSUE OF TAXATION. Tax provisions are another element of the IPEF that could pose problems. There is a tendency to take taxation as a sovereign function and therefore not subject it to negotiation.
• CREDIBILITY OF IPEF. Given that the U.S.’s previous initiatives (the Blue Dot Network and the Build Back Better World (B3W) Initiative) have made little headway in changing the region’s infrastructural needs, the IPEF faces a credibility challenge.

THE WAY FORWARD

1. Robust institutionalization: It should be a senate-ratified treaty so that it could see a level of certainty by the member states before they could invest their diplomatic capital.
2. Need for the uniform procedure: Consistent procedure is needed to make the process simpler and easier to reduce complexity.
3. Provisions for market access and reduced tariff: The developing countries would largely stand to not gain much from the arrangement if it would not have provisions pertaining to market access and lower tariffs.
4. Need of a permanent Secretariat: An organisation or secretariat needs to drive and oversee the arrangement which houses representatives from all the member states, in the absence of which, the arrangement would lose its relevance.
5. Need to resolve taxation Issue: India should initiate an internal review of its tax administration, involving experts and the Department of Revenue to come up with suitable changes.This would add to India’s attractiveness as a trading partner and as a destination for investment, especially in new supply chains.
6. Multilateral Arrangement: The unilateral character of the arrangement should be tweaked to give way to more plural and multilateral arrangement and a consensus-based approach should be followed.

THE CONCLUSION:Although IPEF was launched with the intention to counter China, it is still thin on details. The initiative needs more clarity and a concrete plan for economic engagement among its members. For its part, India has been focusing on bilateral free trade agreements instead of multilateral ones, as is evident from the recently concluded agreements with the UAE and Australia. Similar agreements with the U.K. and the E.U. are expected. IPEF needs to create the confidence that multilateral economic cooperation could also benefit India. For IPEF to succeed, it is important to assist India in reducing its economic dependence on China and set in motion supply chain diversification at the earliest.

QUESTION FOR MAINS EXAMINATION

1. Discuss the significance of recently launched Indo pacific economic framework for India?
2. For India, Indo – Pacific Economic Framework offers a significant opportunity as it is neither part of the RCEP nor the CPTPP. Examine.

THE CONTEXT:In 2022, India has renewed its interest in free trade agreements (FTAs) with several economies, including the UAE, the United Kingdom and Australia. Several negotiations are going on with other countries. This shows a renewed focus on FTAs by India that was stalled for years. However, there is a view that a dichotomy exists between the FTA push and the actual trade policy of India, leading to poor implementations and outcomes of FTAs. This article examines this debate in detail.

SOME IMPORTANT FACTS ABOUT INDIAN FTAs

FTA SCEPTICISM

• During the period from 2004 to 2011, India has signed, ratified, and enforced 11 preferential and free trade agreements, but it has not signed even a single trade agreement after that till 2022.

FTA MOMENTUM

• So far, India has signed 13 Free Trade Agreements (FTAs) with its trading partners, including the 3 agreements signed in 2022, namely:

• • • India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA),
    • India-UAE Comprehensive Partnership Agreement (CEPA),
    • India-Australia Economic Cooperation and Trade Agreement (IndAusECTA).

ONGOING FTA NEGOTIATIONS

• • India is also aiming to reach out to the United Kingdom, the European Union, Canada, Israel, and the Eurasian Economic Union to negotiate similar trade agreements.
  • India is also scheduled to complete trade agreements with Israel and the United Kingdom by the end of 2022.
  • The Indian government is renegotiating existing free trade agreements with the ASEAN, Japan, and South Korea to resolve provisions linked to anomalies and asymmetries that have contributed to the country’s persistent trade deficit.

RATIONALE FOR NEWFOUND FTA MOMENTUM

CHANGING NATURE OF GLOBAL SUPPLY CHAIN VIS A VIS CHINA

• Developed countries, including the United States (US), the United Kingdom (UK), Europe, Australia, and Canada, are addressing supply-chain vulnerabilities and seeking strategies to lessen their reliance on China.
• This opens the door for India to establish itself as a viable alternative supplier of commodities and profit from this trend.
• This necessitates a greater economic and trade interaction with these established economies through bilateral and multilateral trade agreements in order to offer business possibilities for Indian companies.

ECONOMIC AND STRATEGIC STANDPOINT

• India is not a member of either the Regional Comprehensive Economic Partnership Agreement (RCEP) or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
• There are also concerns about market access being eroded as a result of the cumulative impact of mega-trade agreements.
• The propensity to redirect value chains’ geography can displace Indian enterprises from established production networks.

BUYONT EXPORTS AND GLOBAL VALUE CHAIN DISRUPTIONS

• The country’s strong export performance moulds India’s increased interest in FTAs in 2021.
• A rapid increase in India’s exports has prompted authorities to believe that the country requires free trade agreements to maintain its current export pace.
• Furthermore, the global supply chain disruption caused by the Ukraine–Russia war, as well as the economic crisis in Sri Lanka, have opened up new export prospects for India in specialized industries such as agriculture and textiles.

 DICHOTOMY BETWEEN FTAs AND TRADE POLICY

• An FTA’s foundation is an open and liberal trade policy, with FTA parties being able to reciprocate market access. This boosts bilateral trade and investment flows while also fostering stronger economic and strategic ties. For this reciprocal relationship to work, greater coherence between FTA strategy and trade policy is required. India’s newfound excitement for free trade agreements appears to be at odds with the country’s trade policy under the Self-Reliant India project, which is based on “vocal for local,” favouring domestically made items above imported ones. This is because of the tariff policy regime, the Customs (Administration of Rules of Origin under Trade Agreements) Rules (CAROTAR), 2020 for regulating imports under FTAs, and greater importance to geo-strategic interest vis-à-vis trade. Let us examine these in some detail.

TARIFF POLICY REGIME

• India has the highest average tariff of 15% in the Asia–Pacific region.
• According to the World Trade Organization (WTO) tariff profile, average import tariffs have climbed from 13.5 per cent in 2016 to 15 per cent in 2020.
• The Government of India has imposed import licencing requirements as well as a blanket ban on several products.
• Import restrictions on light-emitting diode (LED)/television and 101 defence products have been imposed.
• Aside from import tariffs, the Government of India has implemented a number of non-tariff barriers (NTBs), such as quality control orders and an import monitoring system (for example, a steel import monitoring system).

RULES OF ORIGIN

• The main objective of these rules is to restrict the potential misuse of preferential tariffs by third countries under India’s trade agreements.
•  The introduction of CAROTAR is primarily aimed to regulate the entry of third-country goods through its FTA partners.
• Under these rules, the customs officers can grant or deny the benefits of preferential tariffs to the importers if they have reason to believe that the import violates rules of origin requirements.
• Customs officers’ whims and fancies could impact the outcome, negating the potential benefits of preferential tariffs under an already negotiated and mutually approved FTA.
• Furthermore, over-reliance on customs officers’ judgement capacity may lead to a rise in rent-seeking among bureaucrats, undermining the importance of existing and future free trade agreements.
• Also, the failure to obtain the required information, which is quite cumbersome and exhaustive for compliance with RoR, may deprive the importing firm of availing of the preferential benefits, thus increasing the cost of imported products.
• It effectively undermines the market access of FTA partners negotiated under a trade agreement, thereby making its exports uncompetitive.

GEO-STRATEGIC INTERESTS

• India’s bilateral trade pacts with the UAE and Australia have strong geo-strategic and geopolitical elements, given the fact that both FTA partners are members of the two Quadrilateral Security Dialogues (QUAD).
• But, the depth and breadth of these two agreements, in terms of coverage and substantive provisions, are more or less in line with ­India’s trade agreements with Japan and South Korea.
• The AI-ECTA is an ­interim agreement and far away from its original ambition of a CEPA, which will include important areas of negotiations such as digital trade, agriculture, government procurement, etc.
• The AI-ECTA requires the ratification of the Australian Parliament, which was recently dissolved and this means that even the interim arrangement is not enforceable.
• Thus, it is held that these trade agreements, especially the one with Australia, have more strategic undertones than trade per se.(Both the countries have a raging conflictual relationship with China).

DEFENDING THE DICHOTOMY-IMPERATIVE OF DOMESTIC CHALLENGES

It is true that there seems to be a dichotomy in the approach to FTAs and India’s trade policy. But this must be seen in the context of India’s domestic environment and the challenges it poses. For instance, the Bharatiya Kisan Union, India’s largest farmers’ organization, has already threatened to resist the proposed FTA with Australia. Protests like these were one of the primary domestic roadblocks to India’s participation in the RCEP. Automobile makers and wine producers in India want to fight the FTAs with Australia and the United Kingdom aggressively. The Swadeshi Jagran Manch shares similar goals. The RSS has repeatedly warned the government about the negative effects of free trade agreements and advised it to avoid any such agreements. The agricultural sector will resist an FTA with Australia, while the manufacturing sector will spearhead protests against the UK–India FTA. On a strategic front, trade relations are one component of the larger strategic framework and many times such agreements are able to send out geopolitical messages to the relevant countries. And the concept of ” Early Harvest Deals” helps to achieve strategic goals along with trade, although it may be in a relatively sub-optimal way.

THE WAY FORWARD

FAST TRACK THE NEW FOREIGN TRADE POLICY

• The announcement of India’s foreign trade policy (FTP) has been lingering on for almost two years. The existing one has been kept extended by the Ministry, which was meant for 2015-2020.
• It is one of the most important policy documents that sets the long-term direction for exports and provides clarity regarding various policies and incentives to the Indian trade community.
• Thus, India needs to fast-track the announcement of a new FTP.

REVISITING THE CAROTAR RULES

• These rules either need to be amended or withdrawn to make sure that India’s trade policy is in consonance with its external trade engagement.
•  Otherwise, the lack of synergy between trade policy and FTA strategy not only weakens India’s negotiating capacity but also undermines the potential economic benefits of free trade

COMPREHENSIVE TRADE PACTS

• ­India’s trade pacts with the western and eastern QUAD members (the UAE and Australia) are driven by geostrategic int­erest rather than trade.
• India’s trade pacts with the UAE in general, and Australia in particular, are not comprehensive in terms of their coverage, scope, and depth.
• This is not a promising proposition and hence requires significant changes in approach to FTAs in the context of strategic objectives.

CONSENSUS BUILDING ON FTAs

• Domestic challenges need to be overcome through wide-ranging building consensus by holding stakeholder consultations in a meaningful manner.

THE CONCLUSION: Lockdowns devastated manufacturing factories and global supply systems as the COVID-19 pandemic spread throughout the world. Companies began to consider relocation possibilities for their production sites, and economies began to recognize the value of integration. India was no different. This has set in motion a slew of signing of FTAs with various countries by India. However, it is necessary to address the issues that can undermine the potential of the FTAs, and free trade should not become a casualty under long-term strategic goals.

Questions to Ponder

1. How far do you agree with the view that there exists a dichotomy between India’s trade policy and its approach toward Free Trade Agreements? Explain.
2. The general structure of India’s tariff policy displays an inward focus and is incompatible with the country’s FTA strategy, which strives to improve reciprocal market access. Discuss
3. India’s recalibrated approach towards FTAs is full of ambivalence and reflects inconsistencies with its trade-policy stance under the Self-reliant India initiative that underpins the importance of domestically produced goods over imported ones. Comment.
4. ” India’s newly found momentum for concluding a series of FTAs has less to do with trade but has more to do with geo-strategic interests”. Critically Examine.

THE CONTEXT: The RBI and government of India took several measures after retail Inflation hit 7.8 per cent in April and the wholesale prices crossed 15 per cent reflecting the input cost pressures. Retail Inflation has been trending above the Reserve Bank’s upper tolerance level of 6 per cent for the past three months. The rising food and fuel prices have made the situation worse in the wake of the Russia-Ukraine war. The Increases in the prices of imported fuels, materials, and components increase domestic costs of production and lead to increases in the prices of domestically produced goods. Thus the Inflation is mostly imported in nature. This article explains in detail about approach and steps taken by RBI and the government of India.

THE BACKGROUND

• The main driver of the surge in the consumer price index (CPI) was the increase in food prices, which rose from 0.7% in September 2021 to 8.4% in April 2022. Among food products, the highest increase was in edible oil and fats (17.3%) in April 2022. This was mainly fuelled by the rise in international edible oil prices after the disruption of trade following the war and the ban on oil exports by Indonesia.
• The prices of services continue to accelerate even after the containment of the pandemic. For instance, the prices of goods and services consumed by households have shot up from 1.9% in April 2021 to 8% now. And the price increases of recreation and health services have moved up above 7%, while that of personal care is above 8%, and that of transport and communication above 10%. All these belie the claim that supply-side bottlenecks are the main reason for the rising prices.

MEASURES TAKEN BY RBI AND THE GOVERNMENT OF INDIA

STEPS TAKEN BY RBI TO CONTROL INFLATION

• The Reserve Bank of India called an off-cycle policy meeting and increased the cash reserve ratio by 50 basis points to 4.5% and the repo rate by 40 basis points to 4.4%, the first-rate hike after August 2018.

STEPS TAKEN BY THE GOVERNMENT OF INDIA TO CONTROL INFLATION

1. The government announced an excise tax cut of Rs 8 per litre on petrol and Rs 6 per litre on diesel. The government will bear a shortfall of Rs 1 lakh crore due to the excise duty cut on petrol and diesel.
2. Taking a cue from Centre. Three states – Kerala, Rajasthan and Maharashtra – also announced a reduction in state taxes. The reduction in pump prices of petrol and diesel will bring down the logistics cost for the industry.
3. The government also reduced the import duty on key raw materials and inputs for the steel and plastic industry.
4. The government has levied export duty on some steel products and raised it on iron ore and concentrates. Together with the import duty cut, the price of steel will come down.
5. During the current and next financial year, the government has permitted duty-free imports of 20 lakh tonnes of crude soybean and crude sunflower oil.
6. Under the Ujjwala Yojana, the government has also granted a Rs 200 per cylinder subsidy. This will benefit around nine crore beneficiaries.
7. The government set a limit of 100 lakh tonnes on sugar exports to ensure that there is adequate stock when the sugar season begins in October to cover three months’ worth of consumption.
8. The Centre has also regulated sugar exports to maintain adequate stocks in the country. From June 1, only 10 million tonnes of sugar can be exported in the current marketing year, which ends in September.
9. India slapped a ban on wheat exports to maintain food security and cool prices.
10. Over and above Rs 1 lakh crore budgeted for the current fiscal, the government will provide an additional fertilizer subsidy of Rs 1.1 lakh crore to farmers.

WHAT IS INFLATION TARGETING?

• Inflation can be majorly caused due to two reasons. One is the Demand-Pull Inflation, and the other is the cost-push Inflation on the supply side.
• In the case of demand-pull Inflation, all the control measures revolve around reducing the demand, and this can be done by either reducing the money supply or increasing prices by taxation.
• In the case of cost-push Inflation, the control measures revolve around increasing the supply to meet the demand in the market and reducing the prices by providing subsidies and technological expertise.
• In all cases, the inflation control measures can be divided into Monetary Measures, Fiscal Measures, and Price controls.

MONETARY MEASURES:

• Monetary policy refers to the central bank’s approach to managing the money supply and interest rates through the use of monetary policy instruments under its control.
• The Reserve Bank of India (RBI) Act, 1934, was amended in May 2016 to provide a legal foundation for the implementation of the flexible inflation-targeting framework.
• The primary goal of monetary policy is to keep prices stable (keeping Inflation within the target band of 2 per cent to 6 per cent).

FISCAL MEASURES:

• Fiscal policy is the policy by which a country’s government controls the flow of tax revenues and public expenditures in order to navigate the economy.
• For example, during a slowdown, the government may decide to spend more on infrastructure projects and other initiatives in order to stimulate the economy. To increase revenue, the government may raise taxes on the wealthy.
• To combat/control inflation, the government employs a variety of fiscal policy measures.

PUBLIC EXPENDITURE:

• It is the amount of money spent by the country’s government. For example, the government constructs public infrastructure such as roads, railways, and housing.
• It is an important tool in the fight against Inflation.
• When Inflation is high, the government reduces government spending. A decrease in public spending has an impact on private investment, resulting in a decrease in aggregate demand.
• For example, during periods of high Inflation, the government reduces its spending on rural infrastructure expansion. It will result in a decrease in demand in rural areas.
• Similarly, in the event of deflation, the government increases public spending in order to boost private investment and aggregate demand.

TAXATION:

• Taxation policy can be used to encourage or discourage household consumption and private investment by raising or lowering the personal income tax, corporate tax, or indirect tax (Such as GST)
• In the event of high Inflation, the government may raise personal or corporate taxes in order to reduce household expenditure/private investment. Increased taxation means that people have less money to spend (and private players for investment). This would result in a decrease in aggregate demand and aid in the containment of rising Inflation.
• Similarly, in the event of deflation, the government lowers tax rates in order to stimulate household and private consumption, resulting in an increase in aggregate demand.
• Conclusion:Inflation in a regulated manner is good for the growth of the country. However, if it’s not under control, then it will spiral, cause hyperinflation, and lead the economy into a vicious cycle. Therefore necessary measures are designed both by the central bank and the government to keep it in check.

ADMINISTRATIVE MEASURES

• In addition to monetary and fiscal instruments, the government can use other measures to maintain price stability and control inflationary price rises in the economy. Other measures include direct price controls, restrictions on speculation and hoarding, the use of buffer stocks, a ban on exports, and imports to supplement domestic supply, and a prohibition on commodity futures trading.

PRICE CONTROL THROUGH DIRECT ACTION

• Under the Essential Commodity Act of 1955, the government can declare a commodity to be an essential commodity in order to ensure that it is available to the public at reasonable prices. The Drug Price Control Order (DPCO) aims to keep pharmaceutical prices under control.

EXAMINE SPECULATION AND HOARDING

• The Act to Prevent Black Marketing and Maintain Supplies of Essential Commodities, 1980 – This act authorizes the central government or a state government to detain individuals who engage in activities such as hoarding, creating artificial scarcity of essential commodities in the market, and price rigging.

POLICY ON BUFFER STOCKS

• The Government of India has maintained buffer stocks of food grains to cover any unanticipated situation. Food Corporation of India is in charge of purchasing, storing, moving, transporting, distributing, and selling food grains and other food items.

BAN ON EXPORTS

• The Government of India imposes a Minimum Export Price (MIP) to discourage commodity exports and ensure their availability in domestic markets.

BAN ON COMMODITY FUTURES TRADING

• Commodities (e.g., the government prohibited future trading in chana, etc.).

To reduce speculation-driven price increases, governments frequently prohibit future trading in

THE WAY FORWARD

• Focus on supply of agricultural goods: The implication for the policymaker that Inflation is driven by agricultural goods prices, as is the case in India presently, is that the focus should be on increasing the supply of these goods.
• Growing per capita income in India has shifted the average consumption basket towards foods rich in minerals, such as fruits and vegetables, and protein, such as milk and meat.
• The government should reduce unnecessary expenditure on non-development activities in order to curb Inflation. This will also put a check on private expenditure, which is dependent upon government demand for goods and services. But it is not easy to cut government expenditure. Though this measure is always welcome, it becomes difficult to distinguish between essential and non-essential expenditure. Therefore, this measure should be supplemented by taxation.
• An important measure is to adopt the anti-inflationary budgetary policy. For this purpose, the government should give up deficit financing and instead have surplus budgets. It means collecting more in revenues and spending less.
• Another important measure is to adopt a rational wage and income policy. Under hyperinflation, there is a wage-price spiral. To control this, the government should freeze wages, incomes, profits, dividends, bonus, etc.

THE CONCLUSION: Inflation in a regulated manner is good for the growth of the country. However, if it’s not under control, then it will spiral, cause hyperinflation, and lead the economy into a vicious cycle. Therefore, necessary measures are designed both by the central bank and the government to keep it in check.

VALUE ADDITION

Monetary policy:

• Monetary policy refers to the central bank’s approach to managing the money supply and interest rates through the use of monetary policy instruments under its control.
• In India, the monetary policy of the Reserve Bank of India is aimed at managing the quantity of money in order to meet the requirements of different sectors of the economy and to increase the pace of economic growth.
• The RBI implements the monetary policy through open market operations, bank rate policy, reserve system, credit control policy, moral persuasion and many other instruments.
• The Reserve Bank of India (RBI) Act, 1934, was amended in May 2016 to provide a legal foundation for the implementation of the flexible inflation-targeting framework.
• The primary goal of monetary policy is to keep prices stable (keeping Inflation within the target band of 2 per cent to 6 per cent).

Monetary policy committee:

• The Monetary Policy Committee (MPC) is the committee set up by the Union government to set the policy interest rates as a part of its monetary policy. It is headed by the Governor of the Reserve Bank of India (RBI). The Monetary Policy Committee decisions will impact the money supply and liquidity in the economy.
• The monetary policy Committee is concerned with setting policy rates and other monetary policy decisions in order to achieve:

1. Price stability
2. Accelerating the growth of the economy
3. Exchange rate stabilization
4. Balancing savings and investment
5. Generating employment
6. Financial stability

• In order to maintain price stability, Inflation must be kept under control.
• Every five years, the Indian government sets an inflation target. The Reserve Bank of India (RBI) plays an important role in the consultation process for inflation targeting. The current inflation-targeting framework in India is flexible, with a target of 4% with a band of +/-2%.

QUESTIONS FOR MAIN EXAMINATION

1. Explain the role played by the Central bank and Government of India in curbing the Inflation? Also, suggest some measures to deal with Inflation in the present scenario.
2. ”Inflation in a regulated manner is good for the growth of the country. If it’s not under control, then it will spiral, cause hyperinflation, and lead the economy to a vicious cycle.’’ Elucidate.

THE CONTEXT: The Supreme Court ruled on 19 May 2022, that recommendations of the Goods and Services Tax (GST) Council only have persuasive value, and cannot be binding on the Centre and states. Supreme Court also held that Union and State legislatures have equal, simultaneous and unique powers to make laws on Goods and Services Tax (GST) and the recommendations of the GST Council are not binding on either the Union government or the states.

BACKGROUND

• The ongoing discords between the Centre and states over issues ranging from the allocation of financial resources to fixing of Goods and Services Tax (GST) rates has once again brought to the fore issues pertaining to our federal structure, the resolution of which is essential for the country’s growth. The traditional approach to federalism that sees competition and cooperation at loggerheads is no longer relevant in the post-1990s scenario. A combination of cooperative and competitive spirit ensures the economic prosperity and welfare of the nation in an equal and equitable manner.
• The apex court’s decision came while confirming a Gujarat High Court ruling that the Centre cannot levy Integrated Goods and Services Tax (IGST) on ocean freight from Indian importers. The Supreme Court has held that GST on ocean freight paid in case of import of goods is unconstitutional.

THE CASE

SUPREME COURT RULING

COOPERATIVE FEDERALISM: The Supreme Court in a judgment championing the importance of “cooperative federalism” for the well-being of democracy, held that Union and State legislatures have “equal, simultaneous and unique powers” to make laws on Goods and Services Tax (GST).

COLLABORATIVE DIALOGUE: The recommendations of the GST Council are the product of a collaborative dialogue involving the Union and the states.

RECOMMENDATIONS ONLY RECOMMENDATORY IN NATURE:

• They are recommendatory in nature.
• The recommendations only have a persuasive value and the recommendations of the GST Council are not binding on them.
• To regard them as binding would disrupt fiscal federalism when both the Union and the states are conferred equal power to legislate on GST.

ARTICLE 246A

• The court emphasized that Article 246A of the Constitution (122nd constitutional amendment) treats the Union and the States as “equal units”.
• Article 246A of the Indian Constitution gives the States the power to make laws with respect to GST.

ARTICLE 279A: Article 279A (constituting the GST Council) envisions that neither the Centre nor the states are actually dependent on each other.

SIGNIFICANCE OF THE SUPREME COURT RULING

• The order has reminded the States that they can reject decisions made by the GST Council and set different rates for goods and services in their jurisdiction. The point to note is that the Court has only highlighted what was already in the Constitution.

 THE ORDER AND DISRUPTION TO THE FUNCTIONING OF THE GST REGIME

1. If a State remains in the GST system but sets higher tax rates on a few goods and services: This will mean that taxpayers will be unable to claim the input tax credit on the goods outside GST, increasing their tax incidence. Taxpayers’ compliance burden for return filing will get very troublesome. Besides, higher tax rates will make the State less preferred by domestic and foreign companies.
2. If the State moves out of the GST system completely: there will be complete chaos. Other States will not want to share their GST revenue with the breakaway State, thus bringing down their revenue share from the Centre. Inter-State business with the breakaway State will collapse and FDI will move away from the State.

 IMPACT OF THE SUPREME COURT RULINGS

1. Increase in bargaining strength of the states: It paves the way for more intensive bargaining and negotiations, placing states on an equal footing with the Centre in taking decisions on the structure and operations of the tax regime.
2. The immediate impact of this will be on bargaining by states for extending the period of compensation for the loss of revenue. The five-year period of compensation gets over at the end of June 2022. States have therefore been demanding the extension of the compensation period by another two-three years and this decision will now help the states to bargain hard for the extension.
3. This judgement may change the landscape of those provisions under GST which are subject to judicial review. This is because the constitutionality of such provisions can be challenged based on GST Council recommendations.
4. The judgment also resolved a prolonged battle the government has been raging against companies to implement its IGST on ocean freight on a reverse charge basis. The decision will foster the spirit of cooperative federalism by emphasizing the importance of cooperative federalism as a vital component of democracy’s well-being.
5. Currently, filing of returns, availing of input tax credits, issuance of notices, refund claims, etc, are all being undertaken through the common GSTN platform. It could be a Herculean or near-impossible task to operate in an environment where there are different laws and rates.
6. This might open a Pandora’s Box, allowing the states to have amendments specific to their legislation. This could lead to a loss in uniformity and wreck the very foundation of the GST regime.

OTHER CHALLENGES WITH GST

TAX UNILATERALISM

• Cess revenue is not shared with states.
• Close to 18 per cent of central government revenue is being raised from
• Cess and not distributed (among states). Total control of finances is with
• The central government.
• It needs to be discussed and reviewed.

IMPLEMENTATION DELAYS

• The late implementation of E-invoicing, QR code and E-way Bill blemished the original idea behind this which was contemplated as a revolutionary change in the tax system to curb tax evasion.

CONSTITUTIONAL

• States’ fiscal autonomy is undermined as the GST Council instead of being just a recommendatory body was trying to influence the decisions of the state.

ADMINISTRATIVE

• GST Implementation Committee ( civil servants/bureaucrats) monitor the implementation of the GST Council decisions and recommendations, but the states have declined to adhere to such orders which have not been made by the council and are given by the committee.

279A (11)

• There is a constitutional provision for creating an Appellate Tribunal, which has not yet been made.

THE WAY FORWARD:

1. The spirit of cooperative federalism is already entrenched in GST. The Court has not brought about any change to the law. The States and the Centre need to keep the spirit going to ensure that the GST system functions. Despite having a brute majority, the Centre should pay heed to the problems faced by States and suggest corrective measures, whenever possible.
2. The Council should transcend the political rivalries of the day. The States should have the right to dissent in the Council and their voice should not be drowned in the pursuit of unanimity in decision-making.
3. A Reformed Approach toward States: The Centre could strive to be more conciliatory toward States’ concerns and fiscal dilemmas. The Council should also meet more often to nurture the critical fiscal federalism dialogue in the right direction and minimize trust deficits.
4. There are many pending reforms that require the Centre to work more cohesively with States to take India’s economy forward and lift those left behind – land, labour markets as well as the agrarian sector.
5. Horizontal and Vertical Level Cooperation: Cooperation between the Centre and states is required at both vertical (between Centre and states) and horizontal (among states) levels and on various fronts. This includes fine-tuning developmental measures for desired outcomes, development-related policy decisions, welfare measures, administrative reforms, strategic decisions, etc.
6. Reforms in GST Council: It may be time already for reform of the GST. What is needed is statesmanship at the GST Council even if the Court has said that the Council is a place as much for political contestation as for cooperative federalism.
7. The centre shall promote decisions in the GST Council to be made on consensus building, adhering to the ideals of cooperative federalism; constitutional crises shall be avoided by respecting the fiscal autonomy of the state legislatures.

THE CONCLUSION: As the court has gone ahead to categorically hold that the GST Council recommendations have only persuasive value, there will be a pragmatic approach to the provisions which are subject to judicial review by way of challenge to the constitutionality of such provisions based on GST Council recommendations.

Adoption of best practices and implementation of reforms at the ground level would positively impact the ease of doing business for MSMEs. This would raise India’s manufacturing capacity to the next level and radically transform India’s growth story. The rise in economic activities would result in higher GST collection and thereby boost the government’s welfare measures. Competition among states along with hand-holding by the Centre has the potential to enable the realization of the goal of a five-trillion economy by 2024.

Mains Practice Questions:

1. Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions?
2. Enumerate the indirect taxes which have been subsumed in the Goods and Services Tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India in July 2017.
3. Explain the salient features of the Constitution (One Hundred and First Amendment) Act, 2016. Do you think it is efficacious enough ‘to remove cascading effect of taxes and provide for the common national market for goods and services?
4. India can only achieve its ambitious growth targets by enhancing competitiveness at all levels of government. Critically analyse.

Sources https://www.thehindu.com/opinion/editorial/a-timely-reminder-the-hindu-editorial-on-supreme-courts-gst-verdict/article65439674.ece https://www.thehindu.com/news/national/gst-council-an-avenue-for-political-contestation-across-party-lines-sc/article65431729.ece https://www.financialexpress.com/opinion/sc-judgement-on-gst-council-the-unravelling-of-gsts-uniformity-promise/2531472/ https://indianexpress.com/article/explained/supreme-court-ruling-gst-council-decision-centre-states-7927786/#:~:text=The%20Supreme%20Court%20ruled%20on,on%20the%20Centre%20and%20states https://www.thehindubusinessline.com/blexplainer/will-sc-order-disrupt-the-functioning-of-the-gst-regime/article65453284.ece

BACK TO BASICS

ABOUT GOODS AND SERVICES ACT

• It is a constitutional body under Article 279A.
• Article 279A empowered the President to constitute a GST Council by order.
• It makes recommendations to the Union and State Government on issues related to Goods and Service Tax and was introduced by the Constitution (101^st Amendment) Act, 2016.
• The GST Council is chaired by the Union Finance Minister and other members are the Union State Minister of Revenue or Finance and Ministers in charge of Finance or Taxation of all the States.
• The Union Revenue Secretary acts as the ex-officio Secretary to the council.
• It is considered as a federal body where both the centre and the states get due representation.
• Every decision of the Goods and Services Tax Council shall be taken at a meeting by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles:
• the vote of the Central Government shall have a weightage of one third of the total votes cast, and
• the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting.
• The GST Council is hailed for its cooperative federalism which brings together the Centre and States on key policy decisions.

GST COMPENSATION TO STATES

 How is it funded?

In order to mobilise resources for compensation, a cess is being levied on such goods, as recommended by the Goods and Services Tax Council, over and above the GST on that item. It is called compensation cess. To date, compensation cess is levied on products such as pan masala, tobacco, aerated waters and motor cars apart from coal.

 Who pays compensation to whom? When?

The consumer is required to pay for compensation. It is collected by the Centre which releases it to States. The proceeds of the compensation cess will be credited to a non-lapsable fund known as the Goods and Services Tax Compensation Fund in the public account. All amounts payable to the States as compensation will be released bi-monthly, provisionally, from said fund against figures given by the Central accounting authorities. Final adjustments will be done after receiving audited accounts of the year from the Comptroller and Auditor General of India.

Why are States demanding an extension of the compensation?

States say their revenue situation is yet to improve on two counts — due to the introduction of the GST and because the pandemic has affected revenue collection. At the same time, their expenses have gone up and they expect higher deficit as revenue growth is low. Considering all these, States are seeking an extension of compensation for five more years. Any decision, in this regard, has to be taken by GST Council.

THE CONTEXT: Myanmar has recently witnessed the mass killing of people who were protesting against the military coup. Thousands of people were forced to flee Myanmar to save their lives from the Myanmarese Army, Junta. This has increased India’s concern about security because many times, along with the refugee and asylum seekers many miscreants enter our borders who may pose a security threat to India.  This issue has also increased the threat of scarcity of resources and a greater burden on the management of refugees in India.

ABOUT THE PRESENT CRISIS IN MYANMAR

• Myanmar has witnessed a Military coup leading to a forced regime change. It was orchestrated by Min Aung Hlang, the leader of the coup that has overthrown the democratically elected government of the National League for Democracy (NLD) headed by Aung San Su Kyi.

WHO IS A REFUGEE?

• Article 1 of the 1951 United Nations Convention defines ‘refugee’ as “A person who owing to a well-founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group or political opinion, is outside the country of his nationality and is unable or, owing to such fear, unwilling to avail himself of the protection of that country.”

CATEGORIES OF FOREIGNERS

• There are four well-defined groups of foreigners who are different from ‘refugees’. These categories are Temporary Residents, Tourists and Travellers, Illegal Economic Migrants, Criminals, Spies, Infiltrators, Militants, and Internally Displaced Persons (IDP).

WHO CAN CLAIM A REFUGEE STATUS?

• Anyone can claim a refugee status provided that the claimant must provide evidence in support of the grounds of persecution or fear thereof resulting in flight from the country of origin.
• The documentation may be in the form of an identity card of employment with some governmental agency in the country of origin, or an identity card indicating membership in a particular group.

HOW IT TURNS INTO A REFUGEE CRISIS AND THREATS TO INDIA’S INTEREST

• The crackdown by the Junta on protesting people has led to the killing of a huge number of people in Myanmar.
• These people are now under the threat of life and they are facing an existential threat. So, to run out the risk of life, people have started entering bordering countries illegally.
• While law and order is a State subject under the Indian Constitution, international relations and international borders are under the exclusive purview of the Union government which is viewing it as a national security issue.
• Even though India has been the home for a large number and variety of refugees throughout the past, it has dealt with the issues on a bilateral basis.

PAST REFUGEE ISSUES INCLUDING ROHINGYA AND GOI RESPONSES SO FAR

• There have been multiple instances where India has faced issues related to illegal immigration. Although India has historically been upholding its ‘Vasudhaiva Kutumbakam’ philosophy, the present level of the refugee crisis is unprecedented.
• The burden of refugees becomes double because of the double burden of the pathetic situation of job security for Indians and COVID-19 crisis.
• In the case of Myanmar, we witness that the authorities are trying to sign agreements with the different groups; India hopes that the Rohingya problem which is of a different nature will also be sorted out soon.

WHAT IS A REFUGEE POLICY AND WHY DOES INDIA NEED TO HAVE ONE?

• Refugee policy is a long-term policy statement that defines who can be considered a refugee and what rights should be available to them in India.
• Although India has given shelter to many people who were looking for refuge and political asylum, India does not have a dedicated comprehensive document on long term refugee policy.
• India currently follows the policy of strategic ambiguity. This policy allows India to be at a more advantageous position as it can decide the issue of refugee on a case-to-case basis by strategically deciding the case where we can allow refugees to be provided shelter in India and in which case we can restrict them from entering India.

GLOBAL REFUGEE CRISIS

• Globally, millions of people are forced to leave their homeland because of political persecution, environmental hazards, etc.
• Trends on all major indicators have since the late 1970s pointed towards an increasingly serious world refugee situation.
• For understanding the dynamics of the problem, the political and military activities of the refugees and the processes through which refugee situations are internationalized are also singled out for particular consideration.

INDIA AND UNHCR ON REFUGEES

• India is not party to the 1951 Refugee Convention or its 1967 Protocol and does not have a national refugee protection framework. India continues to grant asylum to a large number of refugees from neighbouring States and respects UNHCR’s mandate for other nationals, mainly from Afghanistan and Myanmar.
• While the Government of India deals differently with various refugee groups, in general, it respects the principle of non-refoulement for holders of UNHCR documentation.
• Internationally, the United Nations High Commission for Refugees looks after the issue of the refugee crisis. However, this body works on a consultation and cooperation basis. It cannot in itself provide shelter to refugees. They need the support and cooperation of various state governments to take up refugees and provide them livelihood opportunities.

PROBLEMS FACED BY INDIA IN MANAGING REFUGEES

• The rise in the number of these refugees and asylum-seekers has not been accompanied by a commensurate increase in resources, compelling UNHCR to find innovative ways to meet both existing and emerging protection needs.
• Refugees and asylum-seekers often live in poverty, dispersed in urban areas, where they can face violence and exploitation.

OPTIONS FOR INDIA

1. Show generosity by accomodating those Myanmarese who entered into India for shelter and livelihood as Refugees in India –

• India with its history, culture, and traditions, is today an example of generosity in the way it has opened its borders to all people who have come looking for safety and sanctuary.

Merits:

• This option will showcase that India understands the issue of the humanitarian needs of the persecuted people of Myanmar.
• It will uphold the age-old principle of ‘vasudhaiva kutumbakam’ which India has been adhering to from time immemorial.

Demerits:

• It will increase the burden of resources on India and at the same time, it will increase the risk of threat to security for India.

This option should be exercised because India will be able to save innocent lives who are in need of shelter and food. If a proper check is maintained in the bordering areas, the issue of security threats can be reduced to a greater extent.

2. Send back the illegal entrants to their country of origin –

• India can send back the illegal Myanmarese entrants to their country of origin by expelling them from the borders.

Merits: 

• This option will reduce the burden of illegal immigrants in India.
• India will not face the issue of threat to security and resources because of refugees.

Demerits:

• It will be against the international norm of the ‘principle of non-refoulment’.
• This option shows India as a state that does not have empathy towards those people who are in need of support and generosity from the Indian Government.
• It will invite criticism from Human Rights Watch groups, United Nations Organisation, other countries as well as Indians.

So, India should not allow such an action that shows India as a state with an apathetic approach.

Hence, India should provide temporary shelter to illegal immigrants till the present crisis is reduced and meanwhile it can formulate a long-term refugee policy. This is the middle path for India. It allows time for India to draw a proper policy document while managing the present refugee crisis in the best possible manner.

WAY FORWARD

• The governments of the country of origin need to do more to create conditions for people to feel comfortable about considering the possibility of returning.
• India should have a framework for long-term refugee policy that can take care of the issues related to refugees and asylum seekers in India.
• India can also think of accomodating the refugees of Myanmar by amending its Citizenship Amendment Act, 2019 to encompass minorities from Myanmar into the citizenship provisions.
• Considering the nature of globalisation and the interconnected world, India can look forward to signing the UN Refugee Convention, 1951.

THE CONTEXT: Relations between India and Russia are a strategic partnership that has withstood the test of time, and which enjoys the support of the people of both countries. While their bilateral relationship is free of active conflict, the repercussions of external factors can no longer be ignored or underestimated. On the recent visit of the Russian Foreign Minister to Delhi the areas of divergence over their worldview seemed to emerge with reference to the changing geopolitical scenarios.

These trends combined with bilateral economic ties well below their potential would suggest that India-Russia relations are likely to face some turbulence ahead.

CHANGING GEOPOLITICS

Asia Rising: The world has changed drastically in the last three decades. The Soviet Union collapsed, leaving Russia geopolitically weakened. China has risen dramatically as the effective number two global power and the US power has relatively declined, but it still retains its pre-eminence. The global political and economic center of gravity is shifting from the West to the Asian region.

Geopolitical realignments: Russia-US ties and US-China ties have deteriorated very sharply in recent times as the US sees both these powers as adversaries. Russia and China have forged an increasingly stronger strategic partnership (Russia’s “Pivot to the East”), especially after US sanctions on Russia in 2014 (Crimea Crisis). Russia’s relationship with Pakistan has also seen considerable change in the last five years. At the same time, India-US ties have been transformed, with the US becoming India’s leading partner in many ways including a remarkable growth in defence ties.

Border tensions: No issue affected the Indo-Russian relationship as much as the border tensions between India and China. The Chinese aggression, in eastern Ladakh, brought India-China relations to an inflection point. It has driven New Delhi to shed past hesitations and actively pursue more hard-nosed policies to protect its national interests.

Covid-19 Pandemic: Changing geopolitical equations are greatly accelerated by the Covid-19 pandemic. The US-China rivalry’s acceleration due to the pandemic has made the bipolar dynamic the pivot around which the new world order is likely to revolve. India and Russia are both important players in their own right but neither of them will occupy the top two positions in the world order. India and Russia remain supporters of the multipolar world order. However, their foreign policy choices will inevitably be affected by the way their respective relations with the US and China have evolved.

CONTEMPORARY CHALLENGES

The Quad and the Indo-Pacific

Russia has been critical of the Quad grouping that has been aimed at ensuring a free and open Indo-Pacific against the backdrop of China’s growing assertiveness in the region. Russia has taken a harsh posture towards the Indo-Pacific, with the Russian Foreign Minister characterising the Quad as Asian NATO. Russia asserts that the US-led West is pushing India to join the anti-China camp and also undermine New Delhi’s relations with Moscow.

Despite Moscow’s opposition, India clearly sees the grouping as a necessary response to China. India has firmly stated that contemporary challenges require countries to work together in new and different ways and that such cooperation also reflects the rebalanced character of global politics. India has assured Russia that its own vision for the region remained inclusive in nature, not targeted at any country, but supportive of freedom of navigation and overflight and peaceful settlement of territorial disputes.

Afghanistan

During the 1990s and 2000s, Moscow and New Delhi regarded the Taliban as a threat to their domestic security. However, since 2013, Russia’s stance on the situation in Afghanistan began to change. Moscow reached out to Pakistan and later established “limited” contacts with the Taliban. The Russian approach identifies ISIS, not the Taliban, as the most immediate threat and considers Pakistan a partner for security in the region, along with coordinating its actions in the region with Pakistan and China.

This worries India, which maintains that there can be no choice between the ISKP and Taliban, and views Pakistan as a state sponsor of terrorism. New  Delhi has been a  consistent proponent of  “zero tolerance”  toward terrorist groups.  Another important challenge for New Delhi is preventing Islamabad from playing a greater role in Kabul’s domestic affairs. Given these concerns, Russia’s outreach to Islamabad and the Taliban was unfavorable for India’s interests.

THE FUTURE OF TIES

Both India and Russia are calibrating their foreign policies to adapt to the challenges created by the changes in global politics and economics. Given the disparate challenges faced by India and Russia, it is not surprising that differences have emerged between them. Incidentally, such divergences exist in India’s relations with all great powers and are probably wider in its ties with the United States rather than Russia. The Indo-Pacific and Quad, developments in Afghanistan, Russian arms supplies to Pakistan, Russia’s growing closeness to China, and India gravitating towards the US are the areas of concern in ties between New Delhi and Moscow.

In Afghanistan, the differences are mainly tactical differences and some of these may have been addressed by Lavrov. The broader strategic picture, however, indicates the virtual inevitability of India, Russia, and possibly Iran collaborating closely. The prospect of the reemergence of an Islamic Emirate in Afghanistan will compel India and Russia to align their views and actions.

In Pakistan, it is believed that India’s concerns about Russia’sgrowing ties with Pakistan were adequately addressed by Lavrov.  Russia has reiterated its support for India in Kashmir. On arms sales to Pakistan, Russia reiterated assurances given earlier.

On China-Russia ties, there is enough divergence between Moscow and Beijing to believe that Russia is unlikely to seal an alliance any time soon or take hostile positions vis-à-vis India. Russian actions in 2020 should have been adequate to allay any fears of a China-Russia alliance. Russia expeditiously addressed India’s defence requirements at the height of the stand-off with China. Additionally, Russia played a discreet but important role in getting India and China to talk both in 2017 and 2020 when the two were locked in tense standoffs.

On the Indo-Pacific and Quad, Russia fears that containment of China through the concept of Indo-Pacific and the Quad may extend to the containment of Russia. India is attempting to allay these fears by pushing for greater Russian involvement in the Indo-Pacific. It is enhancing ties with the Russian Far East, promoting the Chennai-Vladivostok corridor, seeking to establish India-Japan-Russia trilateral collaboration in the Far East, and energise India-ASEAN-Russia cooperation. On the Quad, Russia seems satisfied with India’s assertions that New Delhi is not seeking to convert it into a security alliance.

Although there appears to be a satisfactory diversification of economic ties, volumes of trade are still below potential. Both countries are hoping that cooperation in the Far East will provide the necessary fillip to economic ties. Russia is also hoping for greater Indian involvement in the Far East and the Arctic to reduce its dependence on China in developing the region.

Looking at the broader context of Russian foreign policy and pragmatically assessing the bilateral ties offers India a chance to focus on promoting mutual interests. While there is no denying the divergences in the relationship, both sides still have significant areas of cooperation — in the bilateral, regional and global arenas — which must be harnessed. There are too many imponderables at this stage to predict with certainty how Indo-Russian relations will evolve. It most certainly needs careful nurturing.

WAY FORWARD

• As India develops ties with other like-minded powers to deal with the rise of China, it must also strengthen its special, privileged strategic partnership with Russia. The former superpower is an important partner in its Act East policy and a more balanced Russia-China relationship is in its interests.
• The high-level engagement is particularly important in the India-Russia relationship as it remains driven by top-level interaction. Efforts should be to intensify contacts and diversify areas of cooperation with Russia.
• Apart from traditional areas of cooperation, new sectors of economic engagement are likely to emerge — mining, agro-industrial, and high technology, including robotics, nanotech, and biotech. India’s footprint in the Russian Far East and in the Arctic is set to expand. Connectivity projects may get a boost too.
• India should pursue and facilitate Russia’s engagement in the Indo-Pacific. Russia may not use the term Indo-Pacific for some more time, but its active engagement, irrespective of motive, in the region would be beneficial to India and contribute to making the Indo-Pacific “free and inclusive”.
• New Delhi has been consistent in its efforts to promote links between the Indo-Pacific and the Russian Far East. The willingness of India and Russia to promote regional cooperation is also visible in proposals for joint economic projects in the Far East and the Chennai-Vladivostok maritime trade route.
• Russia should play a major role in India’s Atmanirbhar Bharat economic vision that can provide new openings for a more contemporary dynamic economic relationship between the two sides.

CONCLUSION: While India and Russia have successfully addressed divergences between them, even deep, traditional, and “time-tested relations” of the kind they have shared for decades cannot be taken for granted. Both Russia and India find themselves in a complicated situation that requires both countries to maintain a neat balance in their foreign policies. In fact, the future dynamics of their relationship will be, to a great extent, defined by external factors: the state of the Russia-US dialogue as well as the overall geopolitical environment in Eurasia, where China steps up to dominate the ongoing narrative. The navigation between conflicting interests across Eurasia and the Indo-Pacific will define the trajectory of India-Russia ties in the near term.

THE CONTEXT: The government of India has been collecting a myriad of data from various sources and using them for multiple purposes. But hardly these data are shared with the citizens or placed in the public domain. It is also seen that many critical data have not been either published or delayed. This creates a digital divide between the state and the citizenry having implications for governance, privacy, and accountability. This article analyses these issues in detail.

HOW IS THE DATA BEING COLLECTED BY THE GOVERNMENT?

The government collects the data of citizens through various mechanisms that it uses for multiple purposes. The Census, the sample surveys by the NSS, the expenditure surveys, the survey on industries, family, labour, etc., are some ubiquitous instruments for data collection. The govt also collects regular administrative data while providing services to the citizens like licensing, permits, provision of records, etc. Since 2014, the UIDAI and Aadhaar systems have been expanded in scope, and the government is able to collect the biometric and demographic data of people on a large scale. However, there are many grey areas in this whole process having implications for democracy itself.

WHAT IS THE SIGNIFICANCE OF EFFICIENT DATA MANAGEMENT?

EVIDENCE-BASED POLICY MAKING:

• In government, the most traditional use of data analysis has been the statistical analysis of data collected through various surveys, Census, indices, etc.
• In the traditional methodology, the insights generated from the analysis of the available data were provided to government authorities for effective policy formulation or planning of new programmes, and schemes as well as preparation of the budget for the government.
• For instance, data is at the core of many flagship programmes such as Swachh Bharat Mission, Housing for all, One Nation One Ration Card, Pradhan Mantri Ujjwala Yojana, and Fertilizers Distribution, to name a few.

INFORMED DECISIONS BY STAKEHOLDERS:

• The data on various sectors of the economy like employment, consumption expenditure, investment, etc. is crucial for business groups and investors to make informed decisions.

DRIVER OF DIGITAL ECONOMY:

• In this 21st century of Digital Transformation, data is the new oil; data is the new fuel, and data is the oxygen that holds immense untapped potential in it.
• Over a period, data has emerged as an important asset for the development of any country and is also the driver for a digital economy.
  

TARGETED APPROACH TO SOCIO-ECONOMIC DEVELOPMENT:

• The prowess of data influences almost every sector of the socio-economic development of our country.
• For instance, data can prove to be highly useful for the formulation of poverty alleviation schemes and subsidy distribution schemes.
• Various schemes of the government, such as the MGNREGA, Pensions Scheme, Farmers Subsidy, Benefits for unorganized labour, Scholarships, etc. can make use of data analytics to identify the right beneficiary, understand their socio-economic status, and use technology solutions for timely dissemination of benefits, etc

APPLICATION IN DIVERSE FIELDS:

• Fields like Criminal Justice and Judiciary can consume data to analyze crime patterns, locate the criminal networks and hotspots of potential crimes, etc.
• This would help the authorities take corrective measures and prevent such incidents from happening.
• Data is precious in fraud prevention also.
• Many financial systems today employ data to detect fraudulent activities, and it is now suggested to integrate a fraud detection module while setting up any financial system.

DISASTER MANAGEMENT AND COVID-19 PANDEMIC:

• During the COVID-19 pandemic, data has been extensively used for contact tracing, prediction of hotspots, trend analysis, and taking appropriate measures to curb the spread of the virus.
• Data was also used for the management of hospitals and the supply of essential medicines and essential goods to citizens at large.

DATA AND DEMOCRACY:

• Access to the data by citizens is critical for a healthy and informed public discourse on issues of policy relevance.
• The mere fact that people have access to data is likely to pressurize the government to improve performance in many areas.
• However, data generation doesn’t guarantee seamless access to people whose lives matter most in a democracy.
• Informed public discourse in any democracy is critical for accountable and transparent governance.

OPEN GOVERNMENT DATA (OGD) PLATFORM INDIA – AN OVERVIEW

WHAT IS IT?:

• The Open Government Data (OGD) Platform India (https://data.gov.in) has been set up by the National Informatics Centre (NIC) in compliance with the Open Data Policy (NDSAP) of India.
• The objective of the policy is to provide proactive access to government-owned shareable data along with its usage information in open/machine-readable format through a wide area of the network across the country.
• This data,  periodically updated, will be shared within the framework of various related policies, rules, and acts of the government.

PART OF DIGITAL INDIA:

• Developed using Open Source Stack, the project is one of the initiatives under Pillar 6 (Information for All) of the Digital India initiative.
• It facilitates community participation for further development of the product with Visualizations, Alerts, etc.
• It has an easy-to-use and user-friendly interface with dynamic/pull-down menus, search-based reports, secured web access, a bulletin board, etc.

EFFECTIVE ENGAGEMENT AND CITIZEN COLLABORATION:

• The platform reflects how the innovative use of information technology has led to a paradigm shift in accommodating the huge data potential of the country.
• The platform has a rich mechanism for citizen engagement, which could help Ministries/Departments/Organizations prioritize the release of Government Datasets.
• Besides enabling citizens to express their need for specific datasets or apps, it also allows them to rate the quality of datasets and seek clarification or information from nodal officers of participating government entities.

THE SALIENT FEATURES OF THE OGD PLATFORM

• Ministry/Department/State contributes/publishes resources in open format either directly or by Web Services through workflow-based Data Management System.
• Provides single window access to the datasets and apps published by different Ministries/Departments/Organizations/States in open format. –
• Suggestions and requirements of data can be submitted by citizens/ community to help prioritize data sharing by participating ministries/ departments. Anyone can endorse already submitted suggestions.
• People can directly write to Chief Data Officer seeking any further clarification/information on the released resources or related requirements.
• The platform enables better discovery and usage of Government datasets through visualizations and development of apps, mash-ups, etc. Visualization Platform with the facility to create maps as well as different chart options like radar, bar, line, area, pie, column, etc.
• A separate Community portal (http://community.data.gov.in) has been launched to provide a common platform for knowledge sharing through discussion and contribution through Blogs, Infographics, Visualizations, etc., using data available on the platform.
• People can rate the resources (datasets/apps) on three aspects i.e. Quality, Accessibility, and Usability on a scale of 5.
• A separate Event portal for management of workshops, hackathons, challenges, etc. has been created.

THE LIMITATIONS OF THE NDSAP AND OGD

• A large volume of existing government data is still not accessible in digital formats. NDASP is still a policy but not a mandatory policy. As a result, a lot of departments are reluctant or slow to share their respective datasets.
• ​Even when data is made available in a machine-readable format, in most cases, the reliability is questionable; the raw data needs to go through rigorous editing and aggregation before it can be used.
• Different departments collect and collate information in their respective silos using diverse formats and terminology, making it tough to use that data effectively.
• Adoption of data sharing at the state level has also been slow, with only four out of 29 Indian states contributing data to the national portal.
• The granularity of open government data in India has been a concern, as it fails to satisfy the users to access and use only micro-level data.
• The unavailability of official map data due to the conservative map policy of the government and lack of interoperability in sharing this data has discouraged a discourse about better planning, tracking progress in the ‘real space’ and pushing the government to take remedial steps.

DATA PRODUCTION AND GOVERNMENT INTERFERENCE-AN ILLUSTRATION

CONSUMPTION SURVEY AND PERIODIC LABOUR FORCE SURVEY:

• The data produced by the government’s statistical wings, which have a reputation for being independent and credible, can be used to assess the effectiveness of state policies.
• Recent events, however, have severely harmed this perception. Data from the 2017-18 consumption survey, for example, has yet to be released.
• The survey’s leaked summary results reveal some troubling facts that may not be politically reassuring to the government.
• Similarly, the first Periodic Labour Force Survey (PLFS 2017-18) was not made public until after the 2019 general election.

REPLACING THE ANNUAL SURVEY OF INDUSTRIES:

• Furthermore, rather than relying on the Annual Survey of Industries (ASI), a systematically designed survey for estimating industrial sector GDP, the government has begun to rely on self-reported, unverified data submitted to the Ministry of Corporate Affairs since 2011 obscuring the true state of Indian industry.
• The future of this database is uncertain now that ASI is nearly obsolete for official estimation purposes.
• To date, the ASI is the most dependable and comprehensive source of data for research on industrial productivity and regional patterns.

DATA ON SWACHH BHARAT ABHIYAN MISSION:

• Another example of undermining the scientific database is the delay in the release of Water and Sanitation Survey data 2018.
• The prime minister declared India open defecation free in October 2019, while the data was released much later, depriving people of an opportunity to assess the status of the Swachh Bharat mission in a scientific manner.

RESIGNATION OF OFFICIALS:

• The autonomy of statistical agencies is compromised for immediate political gains at the cost of sustainability and the quality of democratic governance.
• This is seen in the manner of restructuring the NSO and the resignation of top non-official members from the National Statistical Commission.

OTHERS:

• The government’s refusal to conduct a  caste census, a migrant survey, poverty enumeration, controversy over the death count during the pandemic, etc are some other instances that reflect very poorly on the state of the Indian data ecosystem.

DATA AND DEMOCRACY-AN ANALYSIS

Democracy is the government by consent, and this consent requires reliable and authentic information that enables the citizens to make an informed choice at the ballot box. Free and fair elections are the cornerstone of a functioning democracy and the elections cannot be held to be free or fair if the citizens are deprived of real and real-time data on the government, political parties, and the administration, among others. Democracy is also a form of accountable government, and accountability demands access to what the government is doing and how it is doing it. This is necessary for ensuring answerability and the rule of law. In fact, in a democracy citizens are the masters and the government, the servant, and philosophically put, the master has the full right to know what the servant is doing or not doing. This is the spirit in which the freedom of information legislations are being brought by nations. Additionally, the notion of privacy has assumed huge significance, which is being expanded by progressive jurisprudence like India’s Puttaswamy judgment. It is also true that the government should have some elbow room to maneuver with respect to the collection and keeping of sensitive data dealing with national security. But, in other cases, the policy of the government should be based on open data access which will have inherent and instrumental benefits for democracy.

THE POWER OF DATA- THE NEWZEALAND CASE STUDY

The key to the New Zealand government’s success is that it treats data as a strategic asset committed to igniting proactive information sharing to drive better decision-making.

A great example is how accurate diabetes data has helped the New Zealand Ministry of Health provide appropriate and timely care. New Zealand’s Ministry of Health found it difficult to accurately estimate the number of cases in the country since there was no consistent data collection across all general practices and hospitals. With the help of data analysis capabilities, the ministry created a register to accurately predict the prevalence of the condition and help design effective public health policies to support quality clinical improvements.

The New Zealand Ministry of Health was able to integrate information from six different data sources and use Advanced Analytics to identify both those with diabetes and those with the highest prevalence rate. These insights enabled the Ministry of Health to focus its policies on the health policies for these groups.

The exceptional work done by the New Zealand government is being copied around the globe as governments everywhere are looking to provide similar results to their citizens. In fact, the Ontario Government has pledged its “commitment to the people of Ontario to engage, collaborate and

innovate” as it looks to build a “government that freely shares information, unlocks the power of data in a digital age, and brings more voices to the decision-making table through its Open Ontario initiative.

As the New Zealand government has demonstrated, analytics can help save money, drive efficiency, and improve citizen services, all while protecting sensitive data. The possibilities are truly endless; however, the power of analytics can only be unleashed once governments realize the importance of information sharing to enrich the lives of citizens and transform the way the government is run. And that starts with breaking down the culture of data ownership and building a proper infrastructure to securely manage data as an asset.

THE WAY FORWARD

• The government needs to ensure the independence of the statistical agencies and also should timely conduct and release the crucial data even though the results may not be politically palatable.
• The Open Data Policy needs to be implemented in letter and spirit for good governance and participative democracy.
• There must be a comprehensive data protection law in place to protect citizens’ privacy and to prevent India from being slid into a surveillance state.
• RTI is one of the best tools for distributing and sharing data the government has, and the governments should suo motu put these data in the public domain.
• Lack of access to data can increase the distance between the governors and the government, which will have serious consequences on the outcomes of policies and can hamper developmental objectives.
• Various researches also suggest that much of the data is still not analyzed and has huge untapped potential. One of the major challenges right now is the fact that data is currently residing in silos, and thus to unleash the true potential of this data, various IT systems must collaborate and operate in a symbiotic fashion.
• There are certain challenges that are currently preventing these opportunities from being tapped. Issues of privacy and data anonymization are a concern. There is also a lack of standardization of data collection formats that makes it difficult to aggregate and make sense of data The infrastructure to support efficient data collection, processing, and management needs to be strengthened.
• The Ministry of Electronics and Information Technology (MEITY), on February 21, 2022, released a policy proposal titled “Draft India Data Accessibility & Use Policy, 2022”. The policy aims to “radically transform India’s ability to harness public sector data and aim to sell it to the private sector. This can be the beginning of sharing government-owned citizens’ data with relevant stakeholders. Although the market mechanism may be questionable, so is privacy concerns.

THE CONCLUSION: Data is emerging as the key resource of a Digital Economy. Citizens, organizations, and society at large will benefit from the democratization of data as it will become usable to anyone to derive insights and build inclusive solutions for the development of our society. However, the government, while harvesting the citizens’ data for better governance, should not monopolize it and must share them with people, which will improve democratic outcomes in the true sense.

QUESTIONS:

1. Data is the lifeblood of a democratic government. Comment
2. What is an Open Government Data Platform? How far do you agree with the view that democratizing data ownership will help in improving governance outcomes?
3. Critically analyse the relationship between data and democracy.

THE CONTEXT: The Ministry of Earth Science unveiled India’s Arctic Policy on 17 March 2022, titled “India and the Arctic: building a partnership for sustainable development”, with the aim of enhancing the country’s cooperation with the resource-rich and rapidly transforming region. The policy also seeks to combat climate change and protect the environment in the region, which is warming three times faster than the rest of the world. This article explains the need for an Arctic Policy for India, looks into the gaps in India’s present engagement in the Arctic, and analyses the features of India’s Arctic Policy released recently.

WHAT AND WHERE IS THE ARCTIC?

• It is commonly understood to refer to the region above the Arctic Circle, north of latitude 66° 34′ N, which includes the Arctic Ocean with the North Pole at its centre.
• The Arctic is a vast and varied region whose annual cycle is influenced by the strong variation in the amount of light. The further north you are, the more there are daylight hours in winter and nightless nights in summer. In the Arctic, winters are long, and the growing season is short. The Arctic land area comprises only about 5% of the land surface of Earth.
• The Arctic is home to almost four million inhabitants, of which approximately one-tenth are considered indigenous people.
• The Arctic Ocean and its surrounding landmass have been a topic of immense interest and a high-priority area of research among the global scientific fraternity, as well as of importance to policymakers.
• The Arctic influences the atmospheric, oceanographic and bio-geo-chemical cycles of the Earth’s ecosystem.

WHAT IS ARCTIC COUNCIL?

• The Arctic Council is the leading intergovernmental forum promoting cooperation, coordination and interaction among the Arctic States, Arctic Indigenous peoples and other Arctic inhabitants on common Arctic issues, in particular on issues of sustainable development and environmental protection in the Arctic. It was formally established in 1996.
• It is not a treaty-based international legal entity like the UN organizations or trade or regional groupings such as NATO or ASEAN.
• It was set up by the 8 Arctic countries by means of the Ottawa Declaration of 1996. These countries are the US, Canada, Russia, Iceland, Denmark, Sweden, Norway, and Finland.
• In addition to these countries, 6 organizations representing the indigenous people of the Arctic region have also been given the status of permanent participants.
• India holds one of the 13 positions as the Observer in the Arctic Council.

What is the observer status of the Council?

• The observer status is provided to countries or entities that support the objectives of the Arctic Council through financial or other contributions.
• Observers cannot participate in the decision-making process.
• They are invited to participate only in the meetings of the Council, particularly at the level of the working groups.
• The renewal of the observer status is just a formality. The status, once given, continues until the entity carries out any activities that run against the objectives of the Council.

INDIA’S JOURNEY AT THE ARCTIC COUNCIL

1920: India’s engagement with the Arctic began when it signed the Svalbard Treaty in Paris between Norway, the US, Denmark, France, Italy, Japan, the Netherlands, Great Britain, and Ireland, and the British overseas Dominions and Sweden concerning Spitsbergen.

2007: India initiated its Arctic research program in 2007 with a focus on climate change in the region.

2008: India established Himadri- India’s first permanent Arctic research station located at Spitsbergen, Svalbard, Norway.

2013: India was first granted the Observer status in 2013, along with five other nations.

2014: India deployed IndARC it is India’s first underwater moored observatory in the Arctic region 2014 at Kongsfjorden fjord, Svalbard, Norway. Its research goal is to study the Arctic climate and its influence on the monsoon.

2016: Another atmospheric laboratory was established in 2016 at Gruvebadet in Ny-Alesund with the aim of initiating studies on clouds, precipitation, long-range pollutants, and other background atmospheric parameters.

2019: India was re-elected as an Observer to the Arctic Council.

ABOUT: INDIA’S ARCTIC POLICY

India’s Arctic Policy aims to enhance the country’s cooperation with the resource-rich and rapidly transforming Arctic region. The policy also seeks to combat climate change and protect the environment in the region, which is warming three times faster than the rest of the world. It was released by the Ministry of Earth Sciences.

OBJECTIVES OF INDIA’S ARCTIC POLICY

• It aims to strengthen national capabilities and competencies in science and exploration, climate and environmental protection, and maritime and economic cooperation with the Arctic region.
• To strengthen institutional and human resource capacities within the government and academic, research and business institutions through inter-ministerial coordination in pursuit of India’s interests in the Arctic.
• To enhance understanding of the impact of climate change in the Arctic region on India’s climate, economic, and energy security.
• To promote better analysis, prediction, and coordinated policymaking on the implications of ice melting in the Arctic on India’s economic, military and strategic interests related to global shipping routes, energy security, and exploitation of mineral wealth.
• To study the linkages between polar regions and the Himalayas and deepen the cooperation between India and the countries of the Arctic region under various Arctic forums, drawing expertise from scientific and traditional knowledge.
• To increase India’s participation in the Arctic Council and improve understanding of the complex governance structures in the Arctic, relevant international laws, and geopolitics of the region.

RELEVANCE OF ARCTIC POLICY FOR INDIA?

The relevance of the Arctic for India can be broadly explained under three categories:

SCIENTIFIC RESEARCH, CLIMATE CHANGE AND THE ENVIRONMENT:

• Under the banner of science and research, the Indian government hopes to build its research capabilities in the region by strengthening existing facilities, such as the Himadri Arctic station in Svalbard.
• It also hopes to align Indian research with international Arctic priorities. The policy further lays down plans to deploy space technology to better study the Arctic region.
  

 ECONOMIC AND HUMAN RESOURCES:

• The Arctic region has rich deposits of coal, gypsum and diamonds and also substantial reserves of zinc, lead, placer gold and quartz. Greenland alone possesses about a quarter of the world’s rare earth reserves.
• The Arctic contains a wealth of hydrocarbon resources.
• Arctic also has the potential to address India’s energy security needs and deficiency of strategic and rare earth minerals.

GEOPOLITICAL AND STRATEGIC:

• The Arctic region is significant due to the shipping routes that run through it.
• According to an analysis published by the Manohar Parrikar Institute for Defence Studies and Analyses, the adverse effects of the Arctic are not just impacting the availability of mineral and hydrocarbon resources but also transforming global shipping routes.
• According to the Ministry of External Affairs, India can play a constructive role in securing a stable Arctic.
• The region holds immense geopolitical importance as the Arctic is projected to be ice-free by 2050, and world powers are making a beeline to exploit the region rich in natural resources.

GAP IN INDIA’S APPROACH

LACK OF AN ARTICULATED POLICY: 

• Even though the Ministry of External Affairs (MEA) of the Government of India has listed India’s interests in the Arctic to be “scientific, environmental, commercial as well as strategic”, till recently, India was one among the four of the 13 Observer nations of the Arctic Council that did not have a nationally articulated Arctic Policy.

SCIENTIFIC ORIENTATION:

• India needs to go beyond the purely scientific approach in the Arctic. In keeping with its growing stature and consequent say in world affairs, India ought to be better equipped to understand the dynamics of the Arctic geo-politics and governance.

INADEQUATE FUNDING:

• Presently, India’s polar research for the Antarctic, Arctic, Southern Ocean and Himalayas is budgeted under the umbrella Polar Science and Cryosphere (PACER) programme of the Ministry of Earth Sciences (MoES). Considering that India’s Antarctic Programme is about five times bigger than its Arctic programme.

POLAR RESEARCH VESSEL (PRV):

• The lack of a dedicated PRV is considered to be a serious impediment to the growth of India’s polar activities.

WHOLE-OF-GOVERNMENT FOCUS:

• Presently, the National Centre for Polar and Ocean Research (NCPOR), under the MoES, is the nodal agency for India’s polar research programme, which includes Arctic studies.
• The MEA provides the external interface to the Arctic Council through the United Nations Economic & Social (UNES) Division.
• However, the eight countries of the Arctic Council are divided between the Americas, Eurasia and Central Europe Divisions, possibly preventing a region-wide focus on the fast-changing geophysical and geopolitical Arctic landscape.
• Further, there is no nodal body to coordinate all the activities of the Government of India relating to the Arctic region.

AWARENESS AND CAPACITY:

• The Arctic has largely been ignored in India on the ground that it is far away and does not have a direct impact on India. This has resulted in a lack of national capacity on Arctic issues.
• As the Arctic opens up, India needs to expand domestic capability and capacity by building a wide-ranging institutional base on Arctic maritime, legal, environmental, social, policy and governance issues.
• This can only happen through the introduction of an Arctic-related curriculum in our education system at all levels. India’s engagement with the Arctic needs to be built on sound augmentation of its domestic capacity.

THE WAY FORWARD:

• Expand the capacity and awareness of Arctic-related scientific research by strengthening the NCPOR, involving other relevant academic and scientific institutions in India, identifying nodal institutes and promoting partnerships among institutions and agencies.
• Promote research capacities in Indian Universities in the fields of earth sciences, biological sciences, geosciences, climate change and space-related programmes relevant to the Arctic.
• Widen the pool of experts in sectors such as mineral, oil and gas exploration, blue-bio economy and tourism relevant to the Arctic.
• Strengthen training institutions for training seafarers in Polar/Ice-Navigation and build region-specific hydrographic capacity and skills necessary to undertake Arctic transits.
• Build indigenous capacity in building ships of Ice-class standards, including for research.
• Expand India’s trained manpower in maritime insurance, chartering, arbitration and brokerage for potential usage in the Arctic region.
• Build wide-ranging institutional capacity for the study of Arctic maritime, legal, environmental, social, policy and governance issues, including the application of UNCLOS and other Treaties governing the Arctic region.

THE CONCLUSION: India’s Arctic Policy is aimed to prepare the country for a future where the biggest challenges facing humankind, such as climate change, can be successfully addressed through, Collective will and effort. India can and is ready to play its part and contribute to the global good. Close partnership with countries of the Arctic region and other international partners to ensure sustainable development, peace and stability in the Arctic region will also be essential for the realization of India’s national development plans and priorities. This approach is in accordance with the challenges facing humankind, such as climate change, which can be successfully addressed only through the Indian philosophy of VasudhaivaKutumbakam-The world is one family.

 Questions for Mains:

1. India’s Arctic Policy is aimed to prepare the country for a future where the biggest challenge of climate change. Comment.
2. In the changing geopolitics, initiatives such as New Arctic Policy can be vital to address the emerging energy challenges experienced by India in the recent past. Explain.
3. How far do you agree with this view that India’s New Arctic is less about energy needs and more about being competitive in geopolitics? Justify your view.

THE CONTEXT: The Russian-Ukraine war has disrupted the prevailing global order. The war is threatening to divide the world into two blocs reminiscent of the cold war. However, India committed to its principled position of non-alignment, with its huge demography and economy can be the fulcrum of shaping the post-war world order. This article examines the challenges the country faces and the strengths it carries to be the pivot of this new world order.

AN ANALYSIS OF THE EXISTING WORLD ORDER

THE FALL OF THE BERLIN WALL: Since the fall of the Berlin Wall in 1989, a model of free societies, frictionless borders, and an open economy has emerged as the standard in many countries, which has become a governing order.

FREE TRADE AND PROSPERITY: People, products, services, and capital were able to move more freely around the world as a result of this. During this time, global trade and per capita GDP nearly doubled, signalling a period of universal peace and prosperity.

INTEGRATION AND PEACE: With the goal of shared global prosperity, the world’s societies and economics have become increasingly interconnected. The conventional belief was that such close interdependence among nations would lead to fewer conflicts and promote peace.

IDEA OF GLOBAL VILLAGE: ‘Global Village’ of around 8 billion inhabitants of the world was established on top of modern transportation networks, with the US dollar serving as the reserve currency and integrated payment systems around it.

HOW IS THE GLOBAL ORDER CHANGING?

The Russia-Ukraine conflict is a global geo-economic conflict that threatens to go back to the Cold War era of two dominant power blocs. The Russo-Sino bloc is the producer powerhouse while the Western bloc is a large consumer and hence the conflict between them harms both the blocs significantly. If interconnection and trade between states are mutually beneficial, then its disruption and blockade will be mutually destructive. Economic sanctions enacted in retaliation for Russian actions have harmed all nations, albeit some have suffered more than others. Egyptians are facing food shortages as a result of their reliance on Russian and Ukrainian wheat, Germans face high winter heating costs as a result of their reliance on Russian gas, and Americans face a shortage of electric cars due to the unavailability of car batteries reliant on Russian nickel, Sri Lankans have taken to the streets as a result of economic woes, and Indian farmers face high fertilizer prices triggered by a global shortage.

CAN INDIA BE THE EPICENTRE OF THE NEW WORLD ORDER?

THE CHALLENGES:

• A forced and hurried dismantling of the international dollar-based currency order and replacing it with bilateral local currency arrangements are problematic.
• Buying discounted oil or commodities if it entails a departure from the established order of dollar-based trade settlement or jeopardizes established trading relationships with western bloc markets, can have longer-term implications for India’s export potential.
• India needs not just cordial relationships with nations on either side of the new divide but also a stable and established global economic environment.
• Social harmony is the edifice of economic prosperity. Fanning mutual distrust, hate and anger among citizens, causing social disharmony is a huge challenge to India.
• The communal divide that the country is facing today will affect the growth prospect of the country.

THE OPPORTUNITIES:

• India has benefited enormously from being an active participant in this interconnected world, with a tripling of trade (as a share of GDP) in the last three decades and providing vast numbers of jobs.
• Trade with other nations will always be an integral cornerstone of India’s economic future.
• India’s trade is dependent on both these power blocs and on the current global economic structures of free trade, established reserve currency and transaction systems.
• As the western bloc of nations looks to reduce dependence on the Russia-China bloc of nations, it presents newer avenues for India to expand trade.
• India, as the largest peace-loving democracy, stands to gain enormously from the ‘principled trade’ aspiration of the western bloc that values both morals and money.
• It presents a tremendous opportunity for India to become a large producing nation for the world and a global economic powerhouse.
• By dint of its sheer size and scale, India can be both a large producer and a consumer.

HOW DID INDIA RESPOND TO THE CRISIS?

EMPHASIZED DIALOGUE AND DIPLOMACY: 

• Right from the beginning, India called for dialogue and diplomacy to resolve the dispute. On many occasions, the country has asked for the immediate cessation of violence and hostilities.

PROTECTED NATIONAL INTEREST:

• Russia is a very important partner in a variety of areas for India; similarly, fertilizer prices have a direct implication on the livelihood of a majority of our population and food prices.
• Even the security of the nation is at stake as India maintains its defence posture in the manner that the current security challenges warrant.
• All these are legitimate pursuits of national interest by India.

DESISTED FROM TAKING SIDES:

• While India was at the forefront of addressing the fallout of the war, it has been careful not to take sides despite the push by the West owing to its peculiar circumstances. This has been manifested in India’s abstention in the resolutions in UNGA, UNSC, UNHRC etc.

PROVIDING HUMANITARIAN ASSISTANCE:

• India has sent humanitarian assistance to Ukraine through Poland and Romania. The consignment comprised medicines, medical equipment, and other relief material.

INFLATION, LOW GROWTH AND EXPORT POTENTIAL

New Delhi is already bearing the brunt of high global crude oil prices (about $110-120 a barrel as against $70 at the beginning of November) as well as rising mineral, metal and edible oil prices, indicating a possible scenario of high inflation and low growth — stagflation. Ukraine has created an unlikely opportunity for select Indian Agri-exporters who trade in wheat, maize, millet, and processed food. Since the crisis unfolded last month, the world has been looking to Indian wheat to fill the huge void in stocks caused by the turbulence in Europe’s breadbasket. Ukraine is one of the world’s top wheat exporters, and Russia and Ukraine together have a 25% share in the global wheat market.

THE WAY FORWARD:

• India thus needs not just a nonaligned doctrine for the new world order but also a nondisruptive geo-economic policy that seeks to maintain the current global economic equilibrium.
• India needs to balance domestic compulsions with its international commitments without being pulled into any bloc.
• India needs to address the domestic problems of social divisions and economic boycotts, and issues of freedom to trade.
• India needs to arrest the slide in democracy being felt in multiple areas lest its credentials will be impacted.
• A new paradigm of emerging global order and India’s role in shaping it need a clear articulation of the contours of “Atmanirbhar Bharat.”

THE CONCLUSION: The reshaping and readjustment of world order will be a unique opportunity for India to reassess foreign policy, economic policy and geopolitical strategy and develop a mantle of global leadership. The strengthening of India’s global economic power through a cautious post-conflict geoeconomics strategy between Russia and Ukraine could represent a decisive turning point in India’s economic history. India could be the cornerstone of this new world order as a peaceful democracy with economic prosperity. But this requires India to first contain the division of the raging community within the country.

QUESTIONS:

1. “To be the fulcrum of the new paradigm of the world order, India needs to address its domestic social divisions “Explain
2. In order to be the pivot of an emerging global order post the Russian-Ukraine conflict, India needs to surpass multiple challenges. Critically Analyze.

THE CONTEXT: On 17 March 2022, the Union Minister of Rural Development & Panchayati Raj released the Disaster Management Plan of the Ministry of Panchayati Raj (DMP-MoPR) with the idea of monitoring, mitigating, and even developing the preparedness at the grass-root level. This article analyzes the role, responsibilities, and issues faced by the PRIs in crisis times and disaster management.

DISASTER MANAGEMENT PLAN OF MINISTRY OF PANCHAYATI RAJ (DMP-MoPR)

ABOUT DMP-MoPR:

• Under the Plan, every Indian village would have a “Village Disaster Management Plan” and every Panchayat would have its Disaster Management Plan.
• The aim is to build disaster resilience at the grassroots level among the Panchayats and establish a framework to align the disaster management measures in rural areas to that of the National Disaster Management Authority.
• It incorporates many innovations in addition to being in compliance with Disaster Management Act 2005, National Disaster Management Policy 2009, and guidelines issued by National Disaster Management Authority.
• It has been prepared with a larger perspective of community-based planning starting from Village to the District Panchayat level.

ISSUES COVERED:

• It comprehensively covers areas such as:
• Institutional arrangement for Disaster Management.
• Hazard Risk, Vulnerability, and Capacity Analysis.
• Coherence of Disaster Risk Management across Resilient Development and Climate Change Action.
• Disaster Specific Preventive and Mitigation Measures-Responsibility Framework.
• Mainstreaming of Community Based Disaster Management Plan of Villages and Panchayats and so on.

NEED FOR THE DISASTER MANAGEMENT PLAN AT THE VILLAGE AND PANCHAYAT LEVEL

VULNERABILITY TO DISASTERS:

• India is the 7th most disaster-prone country in the world according to the “Global Climate Risk Index 2021” released by German watch, based in Bonn and Berlin (Germany).

INEFFICIENT SOPS:

• Standard Operating Procedures (SOPs) are virtually non-existent and even where such SOPs exist, the authorities concerned are unfamiliar with them.

LACK OF COORDINATION:

• The States also suffer from inadequate coordination among various government departments and other stakeholders.
• The Indian system for disaster management also suffers from the absence of an institutional framework at the Center/State/District level.

POOR WARNING AND RELIEF SYSTEMS:

• India lacks a proper early warning system.
• Slow response from relief agencies, lack of trained/dedicated search and rescue teams, and poor community empowerment are other important challenges.

ROLE OF PRIs IN DISASTER MANAGEMENT

HANDLING DISASTERS AT THE GRASS-ROOT LEVEL:

• The devolution of power and responsibilities to the panchayats will result in flexible and committed responses at the grass-root level in the case of natural calamities.
• Effective and Strong PRIs, working in harmony with the state government, will help tackle the disaster through early warning systems.
• Local population has insights of topography and acquired wisdom of generations to deal with any such kind of crisis situation. Such knowledge can be harnessed at a larger level for the common good.
• Community actions have a significant role in disaster response. For instance:
• The socio-demographic variables and self-satisfaction of community resilience in the context of the Kerala floods of 2018 (the fishermen who were prominent amongst the first responders during this flood).
• Odisha has recurrently been in the news in recent years for the exemplary way in which it has managed to cope with the disasters that have struck its coast and affected its people. Community-based disaster risk reduction is at the very heart of Odisha’s approach to disaster management.

ENSURING BETTER RELIEF OPERATIONS:

• Local bodies being nearer to the people are in a better position to undertake relief tasks as they are more familiar with the requirements of the local people.
• This ensures total transparency in working and usage of funds in every disaster situation.
• They can also be relied upon for undertaking day-to-day running of civic services, providing shelter and medical assistance to affected people, etc.

SPREADING AWARENESS AND GAINING COOPERATION:

• Local government institutions have grass-root level contact with people and they can help effectively in spreading awareness and ensure people’s participation in fighting the crisis.
• They are also ideal channels for NGOs and other agencies’ participation in the rescue and relief operations.

PAST EXPERIENCES – PRIS’ RESPONSE DURING COVID-19:

Amid the peak months of the pandemic, the PRIs played a remarkable role by providing essential leadership at the local level.

• Performed Regulatory and Welfare Functions: PRIs set up containment zones, arranged transport, identified buildings for quarantining people, and provisioned food for the incoming migrants.
• Effective implementation of welfare schemes like MGNREGA and the National Rural Livelihood Mission quickened the pace of recovery while ensuring support to the vulnerable population.
• Made Effective Collaborations: During the pandemic, gram sabhas resolved to adhere to Covid-19 norms. Also, regular engagement with frontline workers like ASHA workers and Anganwadi workers through committees further assisted in handling the pandemic at local levels.
• Organised Local Monitoring Bodies: PRIs organised community-based surveillance systems involving village elders, the youth, and self-help groups (SHGs) to keep a strict vigil in quarantine centres and monitor symptoms in households.

ISSUES FACED BY PRIs

UNCLEAR DOMAINS OF PANCHAYATS:

• Though PRIs are a three-tier integrated arrangement of the village, block, and district levels, they have remained largely ineffective as a consequence of ambiguous jurisdictions and unclear linkages.
• Even in respect of the National Disaster Management Act 2005, the powers and responsibilities of panchayats are inadequately defined and left to be determined by respective state governments.

INCOMPLETE AUTONOMY:

• Panchayats lack systems, resources, and capacities to act independently due to numerous constraints imposed by district administrations and state governments.
• Instead of becoming institutions of local self-governance, as envisaged by the constitution, panchayats mostly act as field implementers of decisions made by state and central governments.

UNAVAILABILITY OF FUNDS:

• The Panchayats are not given enough funds and are bypassed by State-controlled line departments that continue to implement programmes falling within the rightful domain of the former.

INTERFERENCE FROM MPS AND MLAS:

• The interference of area MPs and MLAs in the functioning of panchayats adversely affects the performance of Panchayats.

SIGNIFICANCE OF DMP-MoPR

HELPFUL IN MANAGING DISASTERS COMPREHENSIVELY:

• The convergent and collective actions to envision, plan and implement community-based disaster management plans, would be a game-changer in managing disasters comprehensively.
• All stakeholders including Panchayati Raj Institutions (PRI), elected representatives and functionaries of Panchayats, etc. would participate in the planning, implementation, monitoring, and evaluation of the plan.
• The involvement of the community is the key factor in any disaster preparedness strategy and active participation of the community is vital to carry out and sustain the activities relating to disaster management in rural areas.

ENSURE PARTICIPATORY PLANNING PROCESS:

• This plan would be extremely useful for ensuring a participatory planning process for DMPs which is integrated with the Gram Panchayat Development Plan (GPDP) for addressing disasters across the country and initiate a new era of community-based disaster management, convergence, and collective action with programs and schemes of different Ministries / Departments.

THE ANALYSIS:

• Panchayat- level and village-level Disaster Management Plans, envisage mitigating the challenges in the event of a disaster, at the grassroots and foundational level and it is imperative to keep disaster management plans in mind while making a master plan for the holistic development of Panchayats.
• Most appropriate institution: The Panchayati Raj Institution (PRI), the representative body of the people, is the most appropriate institution from the village to the district level in view of its proximity, universal coverage, and enlisting people’s participation in an institutionalised manner. Their close involvement will make people more prepared for countering natural disasters as well as involve them in all possible precautionary and protective activities so that the impact of the disasters is mitigated and the people are able to save their lives and property.
• Social mobilisation: The PRIs can act as catalysts to the social mobilisation process and tap the traditional wisdom of the local communities to complement the modern practices in disaster mitigation efforts.
• Integration: PRIs will also provide a base for integration of various concerns of the community with that of the Non-Governmental Organisations (NGOs) and Community Based Organisations (CBOs) which are engaged in various developmental activities at the grassroots level.
• Leadership Role: The Panchayati Raj Institution (PRI) members can play a role of leadership in Disaster management at all stages. Right from the preparatory stage up to the handling of the long-term development activities for risk reduction.
• Though the idea behind such an initiative is commendable the scarcity of resources, deprived authority to make decisions, and lack of guidance, information, and leadership qualities among the locals might prove to be an impediment.

THE WAY FORWARD:

• Resource Availability and Self-Reliance: Local governance, local leaders, and local communities, when empowered can respond to any disaster rapidly and effectively. The local bodies require information and guidance and must-have resources, capacities, and systems in place to act with confidence, without waiting for instructions from above.
• The shift in Disaster Management Paradigm: There is an urgent need for a shift from risk mitigation cum relief-centric approach in disaster management into an integrated plan for economic development with social justice.
• Early warning systems, preparedness, preventive measures, and awareness among people are as much an important part of disaster management as is recovery planning, rehabilitation and other relief measures, which should be focused along with assigning roles to individual members and providing them with the necessary skills can make such programmes more meaningful.
• Collective Participation: Conducting regular, location-specific disaster-management programmes for the community and organising platforms for sharing best practices will strengthen individual and institutional capacities, which can even be replicated in other parts of the country facing similar issues.
• It is imperative to make disaster resilience an inherent part of the community culture now more than ever.

THE CONCLUSION: India has been vulnerable, in varying degrees, to too many natural as well as human-made disasters on account of its unique geo-climatic and socio-economic conditions. Different parts of the country are highly vulnerable to cyclones, floods, droughts, earthquakes, landslides, etc. Considering the important role that local communities can play in reducing vulnerabilities and early recovery, DMP-MoPR will initiate a new era of community-based disaster management and collective action.

Mains Practice Questions:

1. “Disaster Management Plan framed by Ministry of Panchayati Raj would contribute to the efforts of the government in bringing convergence in disaster management and planning in rural areas.” Elaborate.
2. “The convergent and collective actions to envision, plan and implement community-based disaster management plans, would be a game-changer for the country in managing disasters comprehensively.” Critically evaluate the above-given statement in the context of autonomy and powers of the Panchayati Raj institutions.

ADD TO YOUR KNOWLEDGE

INDIA’S EFFORTS IN MANAGING DISASTER

THE INSTITUTIONAL FRAMEWORK OF DISASTER MANAGEMENT IN INDIA:

It was the impact of the Tsunami in 2004 that catalysed the approach of the lawmakers in India to legislate on disaster management and the Disaster Management Act was passed in 2005. The institutional structure for disaster management is hierarchical and functions at three levels – centre, state, and district. It is a multi-stakeholder setup and draws the involvement of various relevant ministries, government departments, and administrative bodies.

The Act provides for the constitution of the following institutions at the national, state, and district levels:

1. National Disaster Management Authority (NDMA):

• Responsible for laying down the policies, plans, and guidelines for disaster management and for ensuring timely and effective response to the disaster.
• It consists of not more than nine members with Prime Minister as its ex-officio chairperson.

2. State Disaster Management Authority (SDMA)

• A state Disaster Management Authority is established by every state government.
• The Chief Minister of the state is the chairperson of SDMA. There are a maximum of 9 members other than the chairperson.

3. District Disaster Management Authority

• The DDMA are set up by the state government via a notification in the state budget. It consists of Chairperson and seven members. The collector District Magistrate or Deputy Commissioner would be the chairman.
• The DDMA works as a district planning, coordinating, and implementing body for disaster management.
• It will coordinate with the upper two tiers of the structure and will plan the implementation of the prevention, mitigation, and preparedness at the local level.

4. National Institute of Disaster Management

• It is responsible for planning and promoting training and research in the area of disaster management.
• It is a premier national organization working for human resource development at the national level in the area of disaster management.

5. National Disaster Response Force

• Specialist response force to a threatening disaster situation or disaster. The general superintendence, direction, and control of the Force shall be vested and exercised by NDMA.
• Presently it has the strength of 10 battalions positioned at different locations in the country to provide timely response to any crisis situation.

MANAGING CLIMATE CHANGE-RELATED DISASTERS:

• Globally, disasters in the last two decades have predominantly been climate-related disasters, of which floods are the most frequently occurring type of disaster and storms are the second most deadly type of disaster followed by earthquakes.
• India has adopted the Sendai Framework for DRR, the Sustainable Development Goals (2015-2030), and the Paris Agreement on Climate Change, all of which make clear the connections between DRR, Climate Change Adaptation (CCA), and sustainable development.
• India participates in several multilateral organisations that address these and other issues that benefit from multinational coordination.

CONTRIBUTION TO REGIONAL DISASTER PREPAREDNESS:

• As part of its neighbourhood development efforts, India also contributes to regional disaster preparedness and capacity-building efforts.
• Within the context of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), India has hosted DM Exercises that allow NDRF to demonstrate to counterparts from partner states the techniques developed to respond to various disasters.
• Other NDRF and Indian Armed Forces exercises have brought India’s first responders into contact with those from states in the South Asian Association for Regional Cooperation (SAARC) and the Shanghai Cooperation Organisation (SCO).

INDIA’S ROLE AS A FOREIGN DISASTER RELIEF:

• India is also an emerging donor that has provided a substantial amount of foreign disaster relief, as well as foreign development assistance, to other countries.
• India’s foreign humanitarian assistance has increasingly included its military assets, primarily deploying naval ships or aircraft to deliver relief.
• In line with its diplomatic policy of “Neighbourhood First,” many of the recipient countries have been in the region of South and Southeast Asia.
• In the last two decades, India has given foreign humanitarian assistance bilaterally to Afghanistan, Bangladesh, Bhutan, Maldives, Myanmar, Nepal, Pakistan, the Philippines, Sri Lanka, and others.
• Few Egs:
• 2004 Tsunami relief.
• 2015 Nepal earthquake relief.
• One of the components in Mission SAGAR.
• Vaccine diplomacy.

DISASTER MANAGEMENT CYCLE

THE CONTEXT: Fifteenth Finance Commission Chairperson NK Singh on 19 April 2022 delivered a lecture at the Delhi School of Economics and warned about how the politics of freebies could lead to fiscal disasters. Over the years the politics of freebies has become an integral part of the electoral battles in India and the scenario was no different in the recently held assembly polls in five states, Uttar Pradesh, Uttarakhand, Goa, Punjab, and Manipur. This article analyzes the socio-economic costs of freebies by distinguishing them from the concept of “expenditure on the public good, having overall benefits.”

THE IDEA OF FREEBIES:

• The literal meaning of freebie is something that is given free of charge or cost.
• Political parties are outdoing each other in promising free electricity and water supply, laptops, cycles, electronic appliances, etc. These are called ‘freebies’ and are characterized as unwise for long-term fiscal stability.
• However, during the pandemic, governments (both Union and states), as well as the RBI, took several measures to mitigate pandemic effects. This included expansion of the food security scheme for two full years; cash transfer schemes for farmers, expansion of the jobs scheme, etc.

THE COMPLEX ISSUE OF FREEBIES:

• There is great ambiguity in what “freebies” mean.
• Merit goods Vs. Public goods: We need to distinguish between the concept of merit goods and public goods on which expenditure outlays have overall benefits such as the strengthening and deepening of the public distribution system, employment guarantee schemes, support for education and enhanced outlays for health, particularly during the pandemic.
• Around the world, these are considered to be desirable expenditures.
• It is important to analyse, not how cheap the freebies are but how expensive they are for the economy, life quality, and social cohesion in the long run.

Merit goods: are those public goods that result in interference with consumer choices. Here the government will be providing the goods (merit) to a specific section of the society because of their backward status, poverty, etc (depending on their merit, like the Sarva Shiksha Abhiyan).

Public goods: refer to those goods which satisfy public wants. The main attribute of a public good is that they are supplied by the government jointly for the entire public. Examples of public goods are defense services, pollution control, streetlight, etc.

REASONS FOR THE RISE OF FREEBIE CULTURE DURING ELECTIONS

CONSTITUTIONAL MANDATE FOR THE WELFARE OF THE CITIZENS:

• It is based on the principles of equality and is keen to provide equal opportunity to all. It also aims to ensure equitable distribution of wealth. The 4th century BC treatise on the art of statecraft laid out a framework for good governance and welfare, however in present times it is imperative to draw a line between dole or a handout and spending on the public good having greater benefits.

POLITICAL MANDATE: 

• Political parties contesting the polls release their manifesto stating their aims and plans for every section of the society albeit having much of the focus on announcing schemes for their largest chunk of the vote bank i.e. the lower strata of the society.
• Freebies are often used as a tool to conceal the poor performance of the incumbent government on the socio-economic parameters and provide an opportunity to alter the voter’s mindset from real issues to short-term gains.

HISTORICAL BAGGAGE:

• Since independence, parties have been promising some form of freebies to attract voters.
• Even if a new party comes to power, then also it can’t rationalize or outrightly abolish the freebie commitments of prior governments.
• For e.g., Several State Governments have been forced to continue power and irrigation subsidies due to political pressure. Governments fear that discontinuance will antagonize their voter base.

COMPETITIVE POLITICS AND DOMINO EFFECT:

• The rise in coalition era politics since the 1990s has witnessed a rise of new political parties. These small and new parties have to offer more freebies than larger parties to lure the voters. Moreover the increase in competition among the parties to seek the votes, each party tries to outdo the others in terms of populist promises.

ARGUMENTS IN SUPPORT OF FREEBIES

WELFARE STATE:

• The Constitution places an obligation on the State to take proactive measures for the welfare of the poor and downtrodden.
• For instance, Art. 39(b) of The Constitution of India calls for resource distribution for achieving a common good.

GLARING INEQUALITY IN THE SOCIETY: 

• In India, there is a wide inequality between the rich and the poor in terms of income and wealth. The OXFAM report 2021 showed that the income of 84% of households in the country declined in 2021, but at the same time the number of Indian billionaires grew from 102 to 142.

STRUCTURAL HURDLES AND MAKING THE BENEFITS OF GROWTH REACH THE LOWEST LEVEL: 

• They gave up land for cities, roads, factories, and dams. However, they largely became landless workers and slum dwellers. Several economists argue that the gains of development have hardly trickled down to the most marginalized section of the society, especially after 1991. The cost of freebies offered is a fraction of what the poor lose.
• The World Bank recognized in the 1980’s that the prevalent policies marginalize the poor and a ‘safety net’ (freebies) is needed.

ECONOMIC PUSH:

• They help increase the demand that prevents the rate of growth from declining further. Free education and health are anyway justified because they are cases of ‘merit wants’ and increase the productivity of labour.

SOCIAL STABILITY:

• Freebies enable the government to release the growing discontent in the marginalized section. They keep a lid on societal disruption which would be far more expensive.

INCENTIVES FOR THE RICH:

• The well-off and businesses get ‘freebies’ that are euphemistically called ‘incentives’. Since 2006, the Union Budget estimates these to be between Rs 4-6 lakh crore each year. If the well-off who don’t really need freebies can get so much, why can’t the marginalized (especially women and youth) get a fraction of it?

CUSHION DURING EMERGENCIES:

• COVID-19 has been one of the biggest health emergencies in the world for over a century. Such extreme events warrant state support to prevent chaos and disruption in society e.g., the free COVID-19 vaccination for every individual in India led to more prudent management of the pandemic.

ARGUMENTS AGAINST FREEBIES

UNDERMINES THE SPIRIT OF DEMOCRACY: 

• This is the primary concern as many people tend to vote for parties based on the free incentives offered by them. They fail to judge them on their performance and don’t utilize their franchise as per merit. Even the Supreme Court has observed that freebies shake the root of free and fair elections.
  

FALL IN PRODUCTIVITY:

• Freebies create a feeling in the masses that they can live with minimal effort. This decreases their productivity towards work e.g., a trend has been created that whoever avail loan from banks does not repay them, expecting a waiver of loans during the election. This gives rise to moral hazard and an incentive to default.

FISCAL STRESS:

• Freebies generally form part of revenue expenditure. Excess allocation towards them leaves little to spend on capital expenditure which is a prerequisite for achieving long-term growth.
• A case in point is the states which have been rolling out freebies in keeping with poll promises and ended up increased public debt with unsustainable fiscal conditions.

DISCOURAGES THE HONEST TAXPAYER:

• It creates a sense of discontentment in the mind of an honest taxpayer whose money is used to fund the freebie expenditure. This feeling is more dominant especially when the State is unable to improve the public services due to freebie commitments.

SECTORAL COLLAPSE:

• The populist measures of loan waivers have put significant pressure on the banking sector.
• Similarly, rising power subsidies have enhanced pressures on Discoms who are failing to sustain themselves.

WASTAGE OF RESOURCES:

• Promises of free water and electricity create severe stress on the water table and lead to over-exploitation as seen in the states of Punjab and Haryana.
• NITI Aayog has cautioned that 21 major cities of India are on the verge of running out of groundwater in a few years.

ALLEGED INFRINGEMENT OF CONSTITUTIONAL PROVISIONS:

• Promise/distribution of irrational freebies from the public fund before election unduly influences the voters, shakes the roots of the free-fair election, disturbs level playing field, vitiates the purity of the election process, and also allegedly violates Articles 14, 162, 266(3) and 282.

LANGUOR AMONG THE MASSES:

• Recurring the nature of the freebies in the Indian socio-political scenario also makes the masses develop the habit of acting irresponsibly and dampen their spirit to work hard.

THE ANALYSIS OF THE ISSUE

• India could face the prospect of sub-national bankruptcies if States continued to dole out freebies to influence the electorate, Fifteenth Finance Commission Chairperson NK Singh cautioned, terming the political competition over such sops a “quick passport to fiscal disaster”.
• We must strive instead, for a race to efficiency through laboratories of democracy and sanguine federalism where states use their authority to harness innovative ideas and solutions to common problems which other states can emulate.
• If the political parties go for effective economic policies where the welfare policies or government schemes have good reach without any leakages or corruption and it is targeted at the right audience, then infrastructure and development will take care of themselves and the people will not require such kinds of freebies.
• Central government’s debt-to-GDP ratio is supposed to be 40% but now it has crossed 90%of the GDP, while the states have managed to keep their debt-to-GDP ratio at almost 27% in FY 2020. Hence the problem of financial stability is more pressing at the level of the centre.
• Political parties shall also provide the road map for achieving the targets mentioned in the manifesto and also the rationale behind enlisting such targets.
• Certain freebies are important to cushion or safeguard the socio-economic fabric such as the basic healthcare facilities, school education, subsidized ration, etc. Such interventions by the government, guide the economy in the long term growth by strengthening the human capital.
• Freebies during the crises situation also help in sustaining the economic cycle through demand pull growth such as in COVID times.
• Qualified freebies such as the ascribed conditions of creating public assets through MGNREGA also contribute in more than one way in economic growth by increasing the productive capacity of the population.

THE WAY FORWARD:

• There should be a strengthening of internal party democracy so that promises of development and not freebies are made in the elections. This would also reduce the magnitude of the criminalization of politics.
• The Election Commission should be given greater powers like the power to deregister a political party, power of contempt, etc. This would curtail the distribution of liquor and other goods during elections and ensure expenditure as per the desired limit.
• The Government should use the money spent on freebies towards job creation and infrastructure development as advised by Madras HC in 2021. This will lead to social upliftment and progression of the State.
• The focus should now be tilted on improving the efficiency of public expenditure. This requires focusing on outcomes and not merely outlays. One good example is the Pradhan Mantri UjjwalaYojana:
• Arresting the health hazards associated with cooking based on fossil fuels thereby reducing the out of the pocket expenditure on health.
• Employment for rural youth in the supply chain of cooking gas.
• Improving India’s performance on Sustainable Development Goals-SDG 3 (Good Health and Well-being) and SDG 5 (gender equality) and especially SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all.
• Distribution of LPG subsidy through direct benefit transfer (DBT) also led to a decline in the subsidy bill.
• In the long run, eradication of unnecessary freebie culture requires an attitudinal change in the masses. It is high time that the ruling government should be made accountable for using tax revenue because freebies always prove to be a burden on taxpayers.
• The idea rendered by Vice President M Venkaiah Naidu has called for a wider debate on the freebies promised during polls and the possibility of making election manifestos legally binding. This will restrict the poll parties from making extravagant promises.

THE CONCLUSION: India has experienced the politics of freebies for a long time and the outcome of those policies has been sub-optimal, inefficient, and unsustainable. Therefore rather than doling out money, the focus should be on spending it efficiently. It is high time the discourse on improving public expenditure efficiency should take center stage while discussing the role of fiscal policy in India. However, until that is achieved, reliance on acceptable freebies like health, education, etc. can’t be completely stopped.

MAINS PRACTICE QUESTIONS:

1. ‘Instead of announcing freebies on the eve of elections, political parties need to come out with a clear road map with definitive time frames to solve the problems being faced by people for years.’ Elaborate.
2. ‘Irrational freebies in an under-tax country like India are not economically viable in the long run.’ Critically evaluate.