RELEVANCE TO UPSC SYLLABUS: GS 3: ENVIRONMENT: ENVIRONMENTAL POLLUTION AND DEGRADATION; ENVIRONMENTAL IMPACT ASSESSMENT

THE CONTEXT: Air pollution is a big menace for the city of Delhi which faces this issue annually. The problems with poor air quality usually attract attention during late autumn when stubble burning is at its peak in the states neighbouring the NCR. However, data shows that good or even moderately satisfactory air evades the capital’s residents for most parts of the year, especially in winter.

 REASONS:

• Crop Burning:Farmers of the states around Delhi carry out stubble burning which leads to generation of pollution and these pollutants are carried towards Delhi.
• Vehicular Emissions: Vehicle emissions contribute to the dangerous impacts of smog and air pollution. Due to the sheer volume of automobiles on the road, this is a significant source of pollution.
• Construction Dust: Increase in construction and other infrastructure work in the region has led to generation of construction dust, which acts as a pollutant.
• Industrial Pollution: Delhi-NCR’s industries have not embraced environmentally friendly fuels and methods. They emit harmful gases which cause pollution.
• Stagnant Winds: During winter months, the upward movement of air from the layers below is stopped which causes polluted air to be stagnant over the region. Due to stagnant winds, the pollutants generated in the area get trapped over the region which increases the chances of pollution to a great extent.
• Geographical Reason: As Delhi is land-locked from all sides, the north-westerly winds coming from Pakistan and Afghanistan bring in large amounts of dust particles to the region. Due to the presence of Himalayas, which block the escape route of the air, the dust and pollutants settle in the region.
• Lack in programme implementation: There is lack of effectiveness in programme implementation to tackle air pollution. For example, CAQM has not developed a synergy between the different bodies whose work is crucial to ensure clean air pollution. In 2019, the government launched the National Clean Air Programme (NCAP) to reduce pollution by 20-30% by 2024 compared to 2017. In 2022, the programme’s goalposts were shifted 40% reduction in pollution by 2026. Most independent studies show that progress under NCAP has been slow.
• Unutilised funds: Recently, Centre told Parliament that cities in Delhi-NCR have utilised less than 40 per cent of the funds allocated to curb air pollution.

RECENT STEPS TAKEN:

• Commission for Air Quality Management is monitoring agency set up in 2021 and it has imposed restrictions under phase III of the Graded Response Action Plan (GRAP).
• GRAP is a set of incremental anti-pollution measures that are triggered to prevent further worsening of air quality once it reaches a certain threshold in the Delhi-NCR region.
• The implementation of Stage-III GRAP mandates immediate action on multiple fronts. The Sub-Committee decides to invoke 8 point action plan as per Stage-III of revised GRAP in the entire NCR with immediate effect.
• The anti-pollution steps under the 8-point action plan by the central commission are:

1. Intensify the frequency of mechanised and vacuum-based sweeping of roads.
2. Ensure daily water sprinkling, along with dust suppressants, before peak traffic hours on roads and pollution hotspots.
3. Intensify public transport services and introduce differential rates to encourage off-peak travel.
4. Enforce a strict ban on construction and demolition activities in the entire NCR, except essential projects.
5. Close down operations of stone crushers.
6. Close down all mining and associated activities in NCR.
7. Impose strict restrictions on the operation of BS III petrol and BS IV diesel LMVs.
8. Make a decision on discontinuing physical classes in schools for children up to class 4 and conduct classes in an online mode.

THE WAY FORWARD:

• Address Municipal Solid Waste (MSW) burning: A study found that Delhi burns 190 to 246 tons of MSW every day, which severely pollutes the air. Therefore, any form of garbage burning must be stopped and authorities need to develop infrastructure for effective collection and disposal of MSW.
• Promote the use of electric and BS-VI vehicles: On an average vehicle can contribute up to 25% to PM 2.5 levels and at some locations, it can spike to 35%. Using Diesel Particulate Filter (DPF) can significantly reduce emissions from diesel vehicles. The introduction of more electric, hybrid and BS-VI vehicles can also help reduce the pollution. Improvement of public transport is also necessary to address the problem.
• Limit biomass burning: Burning of crop residue in Haryana and Punjab needs to stop on urgent basis. Instead of burning, the residue can be used for energy production, biogas generation and feeding cattle.
• Tackle fly ash: During summers, fly ash is one of the biggest contributors to PM 10 in Delhi. To deal with the pollutants, water spraying, installation of windbreakers and plantations should be done.
• Need of long-term plan: There are several measures that are being taken from spraying water to implementing GRAP to odd even solution. However, these measures provide temporary relief, therefore, the persistent problem of air pollution needs a long-term solution like drafting out an all-year action plan to improve air quality.
• Enhanced powers to the authorities: Though CAQM has taken various steps, but the agency has functioned more like a regulator whose primary responsibility is to implement the Graded Action Response Plan. There is a need for more independent power to authorities to take pre-emptive actions and allow denser monitoring.

THE CONCLUSION: Despite several steps taken for combating air pollution in Delhi, it continues to be a much more serious problem. To significantly improve air quality in Delhi, a host of preventive steps need to be taken to provide a long-term solution to this problem.

UPSC PREVIOUS YEAR QUESTIONS

1. Describe the key points of the revised Global Air Quality Guidelines (AQGs) recently released by the World Health Organisation (WHO). How are these different from its last update in 2005? What changes in India’s National Clean Air Programme are required to achieve revised standards? (2021)
2. What are the key features of the National Clean Air Programme (NCAP) initiated by the Government of India? (2020)

 MAINS PRACTICE QUESTIONS

Delhi registered severe air pollution on the Air Quality Index (AQI) recently. In this context, analyse the major factors contributing to Delhi’s pollution and suggest measures that need to be taken to address the persistent problem of air pollution in Delhi.

SOURCE: https://indianexpress.com/article/opinion/editorials/delhi-air-quality-aqi-aqi-register-caqm-pollution-monitoring-agency-9110840/#:~:text=The%20persistent%20problem%20frames%20the,So%20far%2C%20mechanisms%20are%20failing&text=Delhi’s%20problems%20with%20poor%20air,the%20states%20neighbouring%20the%20NCR.

TAG: GS 3: ECONOMY

THE CONTEXT: Amid higher capital expenditure and moderate revenue growth this fiscal year, state’s debt will remain higher at 31-32 per cent of their gross domestic product.

EXPLANATION:

• As per the Crisil rating report, the current situation is likely to take overall borrowings to ₹87 lakh crore, up 9 per cent this year.

DEBT PROJECTIONS AND STATE FISCAL HEALTH

• Debt- gross state domestic product (GSDP) Ratio:
  • Indebtedness of a state is measured as the ratio of its debt to gross state domestic product (GSDP).
  • States’ debt projected at 31-32% of Gross Domestic Product (GDP) in FY24.
  • Increase from pre-pandemic levels of 28-29%.
• Fiscal Responsibility and Budget Management Act:
  • Gross fiscal deficit (GFD) expected at 2.5% of GSDP, below the mandated level of 3%.

FACTORS INFLUENCING HIGH DEBT LEVELS

• Revenue Growth Challenges:
  • States anticipate modest revenue growth, hindering fiscal stability.
• Capital Expenditure (Capex) and Borrowing:
  • Increased borrowing due to higher capital outlays.
  • Committed expenditure on salaries, pensions, and interest adds to borrowing pressure.
• Expenditure Structure:
  • Majority of revenue allocated to committed expenditure, limiting fiscal flexibility.

IMPACT OF REVENUE AND EXPENDITURE PROJECTIONS

• Expected Revenue Growth:
  • Predicted 6-8% growth, supported by GST collections and Center’s devolutions.
• Rising Expenditure:
  • Anticipated 8-10% rise in revenue expenditure.
  • Emphasis on social welfare and public health, comprising 65% of total spending.

ANALYSIS OF FISCAL DEFICIT AND BORROWING TRENDS

• Projected Fiscal Deficit Increase:
  • Anticipated rise in revenue deficit to 0.5% of GSDP from 0.3%.
• Borrowing Requirements:
  • Estimated 18-20% increase in capital outlays, necessitating higher borrowings.
• Interest-free Centre Loans:
  • ₹1.3 lakh crore interest-free loans from Center to aid capital outlays.

EXPECTED BORROWING AND DEBT SCENARIO

• Borrowing Increase Overview:
  • Predicted overall borrowings to surpass ₹87 lakh crore, up 9%.
• State Development Loans:
  • State development loans, 65% of total borrowings, rose by 28% between April and November.
• Off-Budget Debt Funding:
  • Off-budget debt funding set to rise by ₹7.5 lakh crore this fiscal.

RISK FACTORS AND FUTURE OUTLOOK

• Economic Activity Impact:
  • Potential risk of GSDP reduction due to economic slowdown.
• Potential Positive Influences:
  • Better tax buoyancy or increased support from the Centre could provide liquidity support to states.

CONCLUSION

• Persisting Debt Challenges:
  • States’ indebtedness likely to remain at 31-32%.
• Balancing Fiscal Health:
  • Challenges persist due to borrowing for capital outlays and limited revenue growth.
• Dependency on External Factors:
  • State fiscal health dependent on economic activity and external support mechanisms.

SOURCE: https://www.livemint.com/economy/states-debt-to-remain-high-at-31-32-per-cent-of-their-gdp-in-fy24-amid-higher-capex-moderate-revenue-growth-11701425176025.html

TOPIC 1: RHODODENDRON

TAG: GS 3: ECOLOGY AND ENVIRONMENT  

THE CONTEXT: The rhododendron flower in Uttarakhand, is portrayed as an integral part of the region’s culture, rituals, mythology, and even culinary practices.

RHODODENDRON AS A CULTURAL SYMBOL:

• Cultural and Ritual Importance:
  • The rhododendron is deeply embedded in Uttarakhand’s culture, being an essential part of local rituals and mythology.
  • Its presence in rituals and temples signifies purity and endurance, demonstrating the reverence people hold for this flower.
• Pilgrimage Significance:
  • The flower is central to the Nanda Devi Raj Jat Yatra, a significant pilgrimage in Uttarakhand that occurs every 12 years.
  • This underscores the strong bond between the local people and their natural environment.

UTILIZATION BEYOND AESTHETICS:

• Culinary and Medicinal Use:
  • Beyond its visual appeal, the rhododendron finds usage in regional cuisine, with its blossoms being used to create sweets, drinks, jams, and juice.
  • Its distinct flavour and purported cooling properties make it popular among locals and visitors alike.
• Environmental Concerns:
  • Climate change-induced alterations in temperature and precipitation patterns are impacting the rhododendron’s growth and flowering cycles.
  • Consequently, conservation efforts are gaining importance, with initiatives in place to safeguard these Himalayan flowers, including the establishment of conservation zones and promoting eco-friendly travel practices.

ECONOMIC AND TOURISTIC VALUE:

• Cultural Tourism:
  • The rich cultural connection with the rhododendron offers a unique opportunity for cultural tourism.
  • Visitors are drawn not only to the natural beauty but also to the rituals and traditions associated with the flower.
• Local Economy:
  • The utilization of rhododendron in cuisine and traditional practices also contributes to the local economy, providing opportunities for culinary ventures and indigenous products.

IMPLICATIONS:

• Cultural Heritage Preservation:
  • The importance of preserving not just the flower itself but also the associated cultural heritage and traditions has been emphasized.
  • The emphasis on conservation and sustainable practices reflects a holistic approach to safeguarding this floral emblem and the surrounding ecosystem while acknowledging its cultural significance.
• Sustainable Development:
  • Balancing conservation with tourism and economic activities is crucial to ensure sustainable development, where efforts to protect the rhododendron align with the promotion of eco-friendly practices.

SOURCE: https://www.thehindu.com/opinion/open-page/the-power-of-the-rhododendron/article67529485.ece

TOPIC 2: ONATTUKARA SESAME

TAG: GS 3: AGRICULTURE

THE CONTEXT: Efforts are being made to expand the cultivation of Geographical Indication (GI)-tagged Onattukara sesame in the Kerala region.

INITIATIVE TO EXPAND SESAME CULTIVATION:

• Increase in Cultivation Area:
  • The Onattukara Vikasana Agency (OVA) plans to significantly increase the area under sesame cultivation.
  • It aimed to expand it to 2,000 hectares from the current 600 hectares in the region encompassing three districts of Kerala: Alappuzha, Kollam, and Pathanamthitta.
• Incentive Scheme:
  • To encourage farmers, a financial assistance program has been announced, offering ₹40 for a cent of land for cultivating sesame within the Thekkekara Krishi Bhavan limits.
  • This incentive is expected to attract individuals, farming collectives, Kudumbashree groups, self-help groups, and joint liability groups towards sesame cultivation.
• Collaborative Efforts:
  • The initiative is a joint venture involving local Krishi Bhavan, Onattukara Vikasana Agency (OVA), Onattukara Regional Agricultural Research Station (ORARS), Krishi Vigyan Kendra, Kayamkulam, and Mavelikara Thekkekara Panchayat.
  • Collaboration between these entities indicates a concerted effort to promote sesame cultivation.
• Support Mechanisms:
  • Farmers and groups engaging in sesame cultivation are offered additional support.
  • It also includes access to workforce from Thekkekara Karshika Karma Sena and tractor rental at a nominal charge of ₹750 per hour.

SIGNIFICANCE OF ONATTUKARA SESAME:

• Geographical Indication (GI) Tag:
  • The Onattukara sesame holds a GI tag, signifying its unique characteristics and origin from a specific geographical location, adding value to its identity and quality.
• Medicinal and Nutritional Value:
  • Studies by the Kerala Agricultural University reveal the medicinal value of Onattukara sesame.
  • It contains high levels of Vitamin E, antioxidants, oleic acid, linoleic acid, and palmitoleic acid, promoting good health.
• Varieties Cultivated:
  • Apart from the traditional Ayali variety, farmers in the region are cultivating varieties like Kayamkulam-1, Thilak, Thilathara, and Thilarani, developed by the Onattukara Regional Agricultural Research Station (ORARS).

POTENTIAL BENEFITS:

• Economic Development:
  • Expanding sesame cultivation holds the potential to boost local economies, generate employment opportunities, and contribute to the agricultural sector’s growth in the region.
• Health and Nutritional Benefits:
  • Highlighting the nutritional and medicinal values of Onattukara sesame could create consumer awareness, potentially increasing demand for this particular variety.
• Collaborative Approach:
  • The joint efforts involving various agricultural institutions, local governance bodies, and farmers’ groups indicate a coordinated strategy towards agricultural development and sustainability.
• GI Tag and Quality Assurance:
  • The GI tag signifies quality, authenticity, and unique characteristics associated with the geographical region, contributing to the promotion and branding of Onattukara sesame.

SOURCE: https://www.thehindu.com/news/national/kerala/measures-on-to-expand-cultivation-of-gi-tagged-onattukara-sesame/article67551308.ece/amp/

TOPIC 3: INDIA-UK FREE TRADE AGREEMENT (FTA)

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: External Affairs Minister of India discussed the India-UK Free Trade Agreement (FTA) with Britain’s Prime Minister and Foreign Secretary recently.

EXPLANATION:

• The agreement is under negotiation and has not been signed yet.
• When signed, the India-UK FTA will serve as a template for an agreement with the European Union (EU).

INDIA-UK FREE TRADE AGREEMENT:

• Strategic Importance as a Template for EU Agreement:
  • The FTA between India and the UK is seen as a model for a similar pact with the European Union, India’s second-largest trade partner.
  • It signifies a shift in India’s trade strategy towards Western nations and African countries rather than solely focusing on the East, as previously done under the UPA government.
• China Factor and Supply Chain Disruptions:
  • The disruption in supply chains during the pandemic has prompted Western companies to reconsider their over-dependence on China, leading to a ‘China-plus one’ strategy.
  • This shift has motivated countries like Australia and the UK to seek stronger economic ties with India.
• Brexit-Induced Insecurities for the UK:
  • Brexit has created uncertainties for the UK, making an FTA with India crucial to compensate for the loss of access to the European Single Market.
  • However, concerns exist regarding offering work permits to Indian service sector workers due to political reasons.
• Potential Gains and Challenges for India:
  • For India, the FTA presents an opportunity to revive declining sectors like apparel and gems/jewellery by reducing tariffs in the UK.
  • However, concerns have been raised about the impact on Least Developed Countries (LDCs) like Bangladesh if India gains zero-duty access for its textiles.
• Beneficial Aspects for the UK:
  • The UK aims to gain deeper access to the Indian market, especially for goods like cars, Scotch whisky, and wines, which currently face significant tariffs.
  • Elimination or reduction of tariffs on these goods could enhance British exports to India.
• Tariff Disparity and Non-Tariff Barriers (NTBs):
  • There exists a substantial tariff disparity between goods imported from India into the UK and vice versa.
  • The FTA negotiations might focus on reducing these tariff barriers.
  • Additionally, addressing non-tariff barriers such as regulations and standards could be crucial for Indian exporters, particularly in agriculture and manufacturing.
• Carbon Tax and Border Adjustment Mechanism:
  • The UK’s plan to impose a carbon border adjustment mechanism (CBAM) similar to the EU’s strategy might affect India’s exports, especially in sectors like cement, chemicals, steel, and others.
  • This imposition aims to reduce dependence on high carbon-emitting imports and could potentially impact Indian exports to the UK.

IMPACTS AND CHALLENGES:

• Strategic Shift: India’s reorientation towards Western nations and away from over-dependence on China is evident. However, concerns persist regarding the impact on LDCs, especially in terms of textiles.
• Potential Imbalance: While India aims to boost declining sectors, the disparity in tariffs and non-tariff barriers presents a challenge. Addressing these barriers will be critical for ensuring mutual benefits.
• Carbon Tax Implications: The UK’s plan for a carbon tax and CBAM could pose challenges for India’s exports, especially in energy-intensive sectors.
• Negotiation Dynamics: The negotiations hold importance for both countries, but balancing mutual benefits while addressing concerns of sectors vulnerable to tariff changes and non-tariff barriers is crucial.

SOURCE: https://indianexpress.com/article/explained/explained-economics/proposed-india-uk-fta-its-politics-and-why-the-uk-may-benefit-more-9031599/

TOPIC 4: 30th ASIA-PACIFIC ECONOMIC COOPERATION (APEC) ECONOMIC LEADERS’ MEETING

TAG: GS 2: INTERNATIONAL RELATIONS

THE CONTEXT: The 30th Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting concluded in San Francisco recently with the adoption of the Golden Gate Declaration. The declaration underscores the commitment to creating a resilient and sustainable future for all member economies.

EXPLANATION:

• For the first time since 2011, USA hosted annual APEC
• Theme of the meeting was creating a “Resilient and Sustainable Future for All”.

GOLDEN GATE DECLARATION:

• The declaration aims to harness the technological and economic progress to continue to unleash the enormous potential and tremendous dynamism across regions, spur economic growth.
• The declaration was adopted after the two-day meeting, during which the leaders focused on the subjects of sustainability, climate, just energy transition, interconnectedness and building inclusive and resilient economies.
• The importance of the rules-based multilateral trading system, with the World Trade Organization at its core, which continues to catalyze APEC region’s extraordinary growth has been reaffirmed.
• APEC economies vow to accelerate the transition towards low and zero emissions vehicles; sustainable aviation fuels; and low and zero emission maritime shipping and port decarbonization, reads the document.

APEC:

• It was formed in 1989 with 12 members.
• Now, it has 21 members.
• Grouping of economies around Pacific Ocean aiming to promote trade, investment, and economic development in region.
• Accounts for nearly 62% of global GDP, half of global trade and covers 38% of global population.
• Operates on basis of non-binding commitments with decisions reached by consensus. India is an observer since 2011.

SOURCE: https://www.wionews.com/world/apec-summit-live-updates-biden-meets-mexican-president-lopez-obrador-659895

TOPIC 5: GOVERNOR’S ROLE IN LEGISLATION

TAG: GS 2: POLITY AND GOVERNANCE

THE CONTEXT: Tamil Nadu Governor R. N. Ravi has withheld assent for certain Bills passed by the Tamil Nadu Legislative Assembly. In this article, we will analyse the governor’s role in legislation.

EXPLANATION:

• The role of a Governor in the legislative process within a state is a crucial aspect of India’s federal structure.
• The Governor, as the constitutional head of a state, plays a significant role in the enactment of laws.

GOVERNOR’S ROLE IN LEGISLATION:

• Options When Receiving a Bill for Assent:
  • Article 200 of the Indian Constitution provides a structured approach for the Governor’s actions concerning bills, emphasizing the Governor’s role as a link between the State Legislature and the Union.
  • It also outlines four alternatives available to a Governor upon receiving a bill from a State Legislature:
    • Give Assent: The Governor approves the bill, making it law.
    • Withhold Assent: The Governor refuses to approve the bill, effectively rejecting it.
    • Return for Reconsideration: If it’s not a Money Bill, the Governor can send the bill back to the State Legislature for reconsideration.
    • Reserve for President’s Consideration: Certain bills need to be reserved for the President’s consideration, such as those that reduce High Court powers or conflict with Union laws.
  • Exercise of Discretionary Powers:
    • According to judicial precedents like the Shamsher Singh case, the Governor typically acts on the advice of the Council of Ministers while withholding assent or returning a bill.
    • Discretionary powers might be exercised in rare cases where the Governor believes a bill contravenes the Constitution and should be reserved for the President’s consideration.
  • Recommendations and Unimplemented Suggestions:
    • Reports like the Sarkaria Commission and the Punchhi Commission have suggested limiting the Governor’s discretionary powers, emphasizing adherence to ministerial advice.
    • Recommendations also proposed time limits for decision-making on bills but have not been implemented.
  • Resolution of Impasses:
    • The politicization of the Governor’s role has been a persistent issue.
    • Suggestions include consulting Chief Ministers before a Governor’s appointment, and the possibility of impeachment by the State Legislature to remove an uncooperative Governor.
    • Amendments are proposed to ensure responsible cooperation between the Centre and States in matters related to Governors’ appointments and functioning.

CONSTITUTIONAL PROVISIONS RELATED TO THE GOVERNOR

• Article 153 says that there shall be a Governor for each State. One person can be appointed as Governor for two or more States.
• A Governor is appointed by the President and is a nominee of the Central Government.
• It is stated that the Governor has a dual role.
• He is the constitutional head of the state, bound by the advice of his Council of Ministers (CoM).
• He functions as a vital link between the Union Government and the State Government.
• Articles 157 and 158 specify eligibility requirements for the post of governor. A governor must:
• Be a citizen of India.
• Be at least 35 years of age.
• Not be a member of the either house of the parliament or house of the state legislature.
• Not hold any office of profit.
• Governor has the power to grant pardons, reprieves, etc. (Article 161).
• There is a CoM with the CM at the head to aid and advise the Governor in the exercise of his functions, except some conditions for discretion. (Article 163).
• The Governor appoints the Chief Minister and other Ministers (Article 164).
• Governor assents, withholds assent, or reserves the bill for the consideration of the President passed by the Legislative Assembly (Article 200).
• Governors may promulgate the Ordinances under certain circumstances (Article 213).
• Governor’s role:
• The Governor holds a constitutional position and is expected to perform specific functions, including granting assent to bills passed by the state legislature and ensuring the proper functioning of state administration.
• The Governor’s actions are perceived as a hindrance to these responsibilities.
• FOR FURTHER RINFORMATION PLEASE REFER TO THE DNA ARTICLE OF 1^ST OCTOBER 2023.

SOURCE: https://www.thehindu.com/news/national/the-role-of-the-governor-in-legislature-explained/article67552112.ece/amp/

TAG: GS 3: ENVIRONMENT AND ECOLOGY

THE CONTEXT: As per the State of the Cryosphere 2023 report, nearly all tropical glaciers, most mid-latitude glaciers and polar regions will disappear even if the world manages to limit global temperature rise to 2 degrees Celsius, above the preindustrial era.

EXPLANATION:

• The State of the Cryosphere 2023 Report was released by the International Cryosphere Climate Initiative (ICCI), an organization that brings together scientists from around the world to study the cryosphere and its impacts on climate change.
• The report delves into the profound impact of rising global temperatures on the Earth’s cryosphere.
• It emphasizes the critical need to limit global warming to 1.5°C to safeguard this essential frozen component of the planet.

STATE OF THE CRYOSPHERE:

• Impact of Temperature Rise:
  • The report underscores that even with a 2°C temperature increase above preindustrial levels; the cryosphere faces dire consequences.
  • Most tropical and mid-latitude glaciers, along with polar regions, will vanish, causing severe ice loss.
• Regional Effects:
  • The Himalayas are predicted to lose half of their current ice under a 2°C scenario.
  • Various regions like the northern Andes, East Africa, and Indonesia are already witnessing rapid glacier disappearance due to the current 1.2°C temperature rise.

IMPORTANCE OF LIMITING WARMING TO 1.5°C:

• Criticality of 1.5°C Limit:
  • The report highlights that 1.5°C is not just a preferable target but the only viable option to mitigate catastrophic consequences for the cryosphere.
  • It urges leaders to discard the 2°C threshold, emphasizing the urgency of adopting the 1.5°C target.
• Cryosphere as Ground Zero:
  • The cryosphere, encompassing frozen water in various forms, is depicted as ground zero for climate change.
  • Its vulnerability to temperature changes serves as a barometer for the severity of global warming’s impact.

OBSERVATIONS AND CLIMATE INCIDENTS:

• Climate Disasters:
  • The year 2023 witnessed various climate-related disasters, such as the Sikkim flash flood triggered by a glacial lake outburst and significant losses in Swiss glaciers.
• Alarming Indicators:
  • The report highlights alarming indicators, including record-low sea ice around Antarctica, unusually high-water temperatures in the Arctic and North Atlantic, and atmospheric CO2 levels surpassing those of the past three million years.

CONSEQUENCES OF TEMPERATURE RISE:

• Sea-Level Rise and Ice Loss:
  • A temperature increases of 2°C, it spells catastrophic sea-level rise from ice sheet melting in Greenland and parts of Antarctica, potentially leading to extensive and rapid irreversible effects.
• Permafrost Thawing:
  • Both 2°C and 1.5°C scenarios signify significant permafrost thawing, releasing substantial CO2 and methane emissions that could amplify global warming.

CALL TO ACTION AND COP28:

• Urgent Course Correction:
  • The report urges a significant shift in climate action, highlighting COP28 as a pivotal moment for global leaders to prioritize the 1.5°C target and avert long-term environmental catastrophes.
• Potential Consequences:
  • Failure to act decisively risks displacing millions due to rising sea levels, disrupting freshwater resources, harming polar ecosystems, and committing future generations to offset irreversible permafrost emissions.

CONCLUSION:

• The report’s comprehensive analysis emphasizes the urgency of addressing global warming to protect the cryosphere.
• It stresses the significance of limiting temperature rise to 1.5°C, outlining the profound repercussions of exceeding this threshold on glaciers, polar regions, and permafrost.
• The report serves as a critical call to action for global leaders to prioritize ambitious climate policies at COP28 and beyond to prevent catastrophic consequences for humanity and the environment.

SOURCE: https://www.downtoearth.org.in/news/climate-change/world-needs-to-limit-global-warming-to-1-5-c-to-protect-cryosphere-2-c-too-high-report-92845

TAG: GS 1: GEOGRAPHY

THE CONTEXT: According to a recent report from the Central Water Commission (CWC), water levels in southern states’ reservoirs are low compared to last year and compared to other regions of the country in 2023.

CURRENT WATER RESERVE STATUS:

• Reservoir Levels:
  • A concerning decline in water reserves across southern states, including Andhra Pradesh, Telangana, Karnataka, Kerala, and Tamil Nadu has been highlighted.
  • The collective storage capacity of 53.334 Billion Cubic Metres (BCM) has seen a sharp drop in recent months.
• Decrease in Reservoir Stocks:
  • Over the past two months, water reserves have declined from 48% to 44% of the total storage capacity.
  • This is notably lower compared to last year when the reserves were at 87% of the total storage capacity.

REASONS FOR LOW WATER STOCKS:

• Erratic Monsoon Patterns:
  • The 2023 southwest monsoon exhibited significant irregularities in rainfall patterns.
  • The south peninsular region experienced severe rainfall deficits during June, July, August, and September, cumulatively resulting in an 8% deficit compared to the normal average.
• Drier October:
  • October remained exceptionally dry in southern India, recording the sixth driest month in 123 years.
  • This month (November) typically witnesses significant rainfall due to the retreating southwest monsoon and the onset of the northeast monsoon.
  • Cyclone Hamoon’s development in the Bay of Bengal disrupted rainfall patterns, contributing to a 60% cumulative rainfall deficit.

IMMEDIATE IMPACT AND FUTURE CONCERNS:

• Agricultural Impact:
  • The low water reserves pose an immediate threat to irrigated farming, especially water-intensive crops like paddy.
  • States like Andhra Pradesh and Tamil Nadu heavily rely on water for agriculture, and the shortage could significantly impact crop yield.
• Drinking Water Scarcity:
  • The declining reserves may lead to a scarcity of drinking water in the coming months, affecting both rural and urban populations.
• Potential Drought Declaration:
  • Karnataka has started identifying drought-hit areas, hinting at the possibility that other states might soon follow suit.
  • The situation might exacerbate the agricultural crisis, especially with new governments in Andhra Pradesh and Telangana facing the challenge of managing water shortages.

AREAS REQUIRING IMMEDIATE ATTENTION:

• Irrigated Farming:
  • Urgent attention is needed to address the impending crisis in irrigated farming, primarily focusing on water-intensive crops like paddy.
• Drinking Water Supply:
  • Ensuring adequate drinking water availability is crucial, necessitating proactive measures to manage water resources efficiently.
• Government Response:
  • Newly formed state governments face a challenge in managing the agricultural crisis caused by water shortages and will require effective strategies to mitigate the impact.

CONCLUSION:

• The depletion of water reserves in southern India poses severe challenges to agriculture, drinking water supply, and the overall economy of the region.
• Immediate action, including water conservation measures, efficient agricultural practices, and governmental intervention, is essential to mitigate the impact of the water shortage and prevent further crises in the region.

SOURCE: https://indianexpress.com/article/explained/explained-climate/water-reserves-south-india-depleting-2023-9030349/

TAG: GS 2: POLITY AND GOVERNANCE

THE CONTEXT: Recently, the Punjab and Haryana High Court quashed a law passed by the Haryana government in 2020 that provided 75 per cent reservation in private jobs to residents of the state.

EXPLANATION:

• The Punjab and Haryana High Court’s ruling quashing the Haryana State Employment of Local Candidates Act, 2020 has far-reaching implications and raises several significant points.

LEGAL IMPLICATIONS:

• Unconstitutionality and Violation of Fundamental Rights:
• The court ruled the Act as unconstitutional and violative of Part III of the Indian Constitution, which encompasses fundamental rights.
• This Act was seen as discriminatory against individuals who are not residents of a specific state and impinged upon their rights.
• State Intervention in Private Sector:
• The judgment highlighted the overreach of the state government into the private sector by attempting to mandate the hiring of local candidates.
• It was perceived as an intrusion into the freedom of private employers to recruit based on their requirements.
• Freedom to Conduct Business:
  • The court emphasized Article 19 of the Constitution, which guarantees the right to carry out business and trade.
  • The Act was seen as an impediment to this freedom for private employers, impacting their ability to hire based on merit and suitability for the job.

ETHICAL AND PRACTICAL CONSIDERATIONS:

• Equality and Common Citizenship:
  • The Act was criticized for creating divisions among people based on their state of origin, which contradicts the idea of common citizenship enshrined in the Constitution.
  • It was argued that such laws create disparities among citizens and go against the principle of equality.
• Skill Diversity and Employment Needs:
  • The court illustrated how skill diversity exists across regions, and mandating local hiring could hinder businesses from accessing a diverse skill set essential for their operations.
  • It emphasized that a skilled workforce might be sourced from different parts of the country, and restricting hiring based on domicile is counterproductive.
• Challenges of Unemployment:
  • While the Haryana government argued that the Act aimed to address local youth unemployment, the court observed that such measures cannot infringe upon the rights of others.
  • It questioned the feasibility of such discriminatory practices in addressing unemployment concerns.

GOVERNMENT RESPONSE AND FUTURE STEPS:

• Legal Recourse:
  • The government expressed intentions to approach the Supreme Court for an appeal (Special Leave Petition – SLP) against the High Court’s decision.
  • This signifies a potential continuation of the legal battle over the policy’s validity.
• Reviewing Options:
  • The government spokesperson mentioned assessing the detailed court order before deciding on the next course of action.
  • This indicates a need to reconsider strategies regarding employment policies in light of the court’s decision.

CONCLUSION:

• The High Court’s decision to quash the Haryana law reflects a significant ruling on constitutional and fundamental rights issues.
• It underscores the importance of maintaining a balance between addressing local unemployment concerns and ensuring equality and freedom in employment opportunities.
• This ruling may influence future state policies concerning employment quotas and rights of private businesses in recruitment practices across India.

SOURCE: https://indianexpress.com/article/cities/chandigarh/hc-quashes-haryana-govts-75-percent-quota-in-private-sector-jobs-9031094/

(Newspapers, PIB and other important sources)

Prelim and Main

1. India sees 6.2% rise in goods exports in October READ MORE
2. PM launches Rs 24,000-cr scheme for vulnerable tribal groups’ welfare READ MORE
3. NASA, ISRO gearing up to launch joint space mission to map globe every 12 days READ MORE
4. Gold pushed trade deficit to new high of $31.46 billion in October READ MORE
5. Greenhouse gases hit record high in 2022: UN READ MORE
6. FATF team in India to hold on-site review meetings READ MORE
7. Tribal body declares ‘self-rule’ in a few districts of Manipur READ MORE
8. India to host 2nd Voice of Global South Summit on November 17 READ MORE
9. WHO roadmap to end TB in children focuses for 1st time on pregnant, post-partum women affected by disease READ MORE
10. CBD’s Geneva meetings: Benefit sharing on traditional knowledge & digital sequence information on agenda READ MORE  
11. Why adultery was struck off IPC, and why a House panel wants to make it a crime again READ MORE

Main

GS Paper- 1

1. Let society evolve; resist return of regressive laws READ MORE
2. Challenges to curbing community-based prostitution READ MORE  
3. Does It Work To Pay People Not To Cut the Forest? READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. The growing wave of decentralisation: Comparative evidence from developing countries READ MORE
2. The price of persistent federal frictions READ MORE
3. Life over death: On death penalty abolition and parliamentary panel report READ MORE
4. Regulating OTT: Draft Broadcasting Regulation Bill may be an attempt to control digital infrastructure READ MORE
5. A grave error in the law READ MORE

SOCIAL ISSUES

1. Improve teacher quality to raise school standards READ MORE
2. Extend political discourse on poverty to redistributive justice READ MORE

INTERNATIONAL ISSUES

1. India Once Was a Strong Ally of Palestine. What Changed? READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Food flux: On food costs and the October tidings READ MORE
2. IPEF supply chain pact is unfair READ MORE
3. Is there more room for competitive populism? READ MORE
4. Electrification of last-mile mobility and logistics READ MORE
5. RBI, Narendra Modi and the Subtle Art of Ignoring Concerns READ MORE
6. How a gendered digital divide, low quality of jobs keeps Indian women out of the workforce READ MORE

ENVIRONMENT AND ECOLOGY

1. Climate pledges lacking: 87% of remaining global carbon budget to limit warming may be depleted by 2030, finds UN READ MORE
2. Global emissions: UN report exposes inadequacy of efforts READ MORE
3. Climate concerns or trade barriers? READ MORE

SCIENCE AND TECHNOLOGY

1. AI can play the sleuth to expose scientific fraud READ MORE

INTERNAL SECURITY

1. MHA extends UAPA ban against eight Meitei extremist organisations READ MORE
2. Realism, not machismo, to counter terror READ MORE

DISASTER MANAGEMENT

1. Another warning in the Himalayas READ MORE
2. Tunnel tragedy is another eco-warning we need to heed READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. In the age of Kalyug, it is time to leverage the power of the collective READ MORE
2. Does Philosophical Reflection Still Hold Value? READ MORE
3. Tolerance is the key to achieving peace READ MORE

Questions for the MAIN exam

1. AI is one of the most significant technical advancements in recent times, but it is posing a great danger to humanity by unleashing misinformation and deepfakes. Justify with recent examples.
2. The cause of poverty in the country is not only economic but the issue of caste plays a substantial role. Argue and justify.

QUOTATIONS AND CAPTIONS

• We are on a highway to climate hell with our foot still on the accelerator.
• Improving teacher quality and pedagogical innovation to enhance the overall rigour of education in the country, must be an immediate and urgent priority.
• Higher than expected tax revenues provide a cushion for the government. However, concerns remain about the medium-term fiscal deficit
• For an economy whose resilience relies on its domestic demand buffer against global shocks, reluctant or budget-cramped consumers are the biggest headwind for policymakers to strive to address.
• Any interest rate hike over and above the 2.5 percentage points already administered in this rate hike cycle would have hurt growth significantly.
• The agreement on Supply Chain Resilience will enhance the resilience of the US, while deepening the vulnerability of India and other developing countries.
• AI is one of the biggest technical advancements in recent times but it can pose a great danger to humanity by unleashing misinformation and deepfakes.
• Ensuring AI safety would require the convergence of multiple branches of activity, including skills, talent, and physical infrastructure.
• Transitioning to low-carbon cities can significantly reduce CO2 levels.
• The future will either be green or not at all.
• Energy justice and social equity issues can have severe implications for the economic well-being of people, livelihoods, and economic development.
• A beginning can be made by providing gig workers with EVs. The Govt must support them and acknowledge their contribution to the economy.
• As the demand for reservation reaches a crescendo, the original justification for this departure from formal equality has become more difficult.
• The cause of poverty in the country is not only economic. A substantial number of the poor belong to the Scheduled and Backward Castes and Scheduled Tribes.
• If background inequalities force certain people to live below the poverty line, this should be seen as a serious infringement of the right to equality granted by our Constitution.
• The idea of caste is the greatest dividing factor… all caste either on the principle of birth or of merit is bondage.
• India this time around has taken a much stronger pro-Israel stand than is typical during Israeli-Palestinian conflicts.
• The state and central governments also need to acknowledge the contributions and the critical nature of these gig workers.
• COP28 presents an opportunity to India and other nations to hold the West accountable and liable for the environmental crisis.

ESSAY TOPIC

• The future will either be green or not at all.

50-WORD TALK

• Irrational and unscientific fixed-dose combination drugs ruling the Indian pharma market is a menace that has gone on unchecked for too long. A study shows 70% of antibiotic FDC drugs in the market are banned or unapproved. This is a public health hazard; convoluted and inefficient regulations are bad medicine.
• The ordeal of 40 men trapped inside a collapsed tunnel in Uttarakhand is a reminder of the tightrope walk infrastructure development is in Garhwal Himalayas. Aggressive construction without mountain-appropriate plans is a slippery slope. We hope they are rescued soon, but disregarding the region’s vulnerability will only endanger more lives.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED.
• Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

(Newspapers, PIB and other important sources)

Prelim and Main

1. Mission Indradhanush 5.0 (IMI 5.0) campaign with special focus on improvement of Measles and Rubella vaccination coverage, will conclude all three rounds on 14 October 2023 READ MORE
2. INDEX OF INDUSTRIAL PRODUCTION RISES TO 10.3% IN AUGUST 2023 READ MORE
3. India ranks 111 out of 125 countries in Global Hunger Index READ MORE  
4. What war crimes laws apply to the Israel-Palestinian conflict? READ MORE
5. Why Odisha govt’s new rural development scheme has triggered a controversy READ MORE
6. Dragonfly: The faces of wetlands in India READ MORE
7. IMI 5.0 reaches children up to five years for the first time READ MORE  
8. Biohydrogen’s role in India’s green hydrogen pathway READ MORE
9. Targeted methane mitigation can avoid 0.1°C warming in 2050, should be adopted with decarbonisation efforts: Report READ MORE
10. Joshimath sinking: Landslides in region not a new problem, says GSI report READ MORE

Main

GS Paper- 1

1. The case for caste census in India | Explained READ MORE
2. Changed outlook READ MORE
3. Is climate change the reason for Sikkim flash floods? READ MORE

GS Paper- 2

POLITY AND GOVERNANCE

1. Should the 50 % legal ceiling on reservation be reconsidered? READ MORE
2. Administrators: All services need more officers, not just IFS. So do local govts. And recruit more specialists READ MORE
3. Pharma laxity: No tainted firm deserves leniency READ MORE
4. Make funding truly transparent and free of cash for fair polls READ MORE
5. ‘One Nation, One Election’ Will Further Weaken Indian Democracy READ MORE

SOCIAL ISSUES

1. Pro-choice, pro-women: A split SC verdict reflects a wider judicial-medical confusion about abortion rights. This must change READ MORE
2. India Ranks 111th Among 125 Countries in Global Hunger Index Report READ MORE

INTERNATIONAL ISSUES

1. Non-state actors are a threat to world peace READ MORE
2. ASEAN must reinvent itself to stay relevant in region READ MORE
3. India-Maldives Ties: A Walk on Eggshells As New Delhi Faces the China Question READ MORE

GS Paper- 3

ECONOMIC DEVELOPMENT

1. Ways to make IBC more effective READ MORE   
2. Terms of Trade | Let’s discuss India’s growth forecast READ MORE
3. The right path: IMF raises India’s growth rate, validating that its economy is on a firm footing READ MORE
4. India’s farm machinery has global market READ MORE
5. By the farmers READ MORE
6. IMF and India READ MORE

ENVIRONMENT AND ECOLOGY

1. Curbing air pollution: Centre, states need to work in close coordination READ MORE

SCIENCE AND TECHNOLOGY

1. AI could redefine police techniques READ MORE

DISASTER MANAGEMENT

1. Localise strategies to build climate resilience READ MORE
2.  India’s cyclone warning system is the model for disaster-proofing the country. Floods next READ MORE

INTERNAL SECURITY

1. How the Khalistan movement is interlinked with Punjab’s growing drug problem, gun culture READ MORE
2. Beyond ‘Black Mirror’s’ fiction – Impact of Generative AI on policing, security READ MORE

GS Paper- 4

ETHICS EXAMPLES AND CASE STUDY

1. Lies, levels, life: Cultivating your best being READ MORE
2. Misery is a choice READ MORE

Questions for the MAIN exam

1. Repeated elections have a cost, but the benefits of enhanced democracy that they trigger are far greater. Critically examine the statement in the light of recent debate about One Nation, One Election.
2. India is diverse, with different regions confronting diverse issues, and that impacts politics in the states. In light of statement, how far do you agree with this view that the concept of One Nation, One Election goes against the reality of India’s diversity?
3. Balancing growth and inflation is a complex endeavour, requiring a steady hand on the economic tiller. Discuss, how India can this balance in the ongoing uncertain global economic landscape?
4. Assessing vulnerabilities is the first step in reducing disaster risk. In light of recent disasters in the Himalayan region, discuss how the climate resilience approach in infrastructure development can minimize the disaster risk in that region.
5. The bureaucracy delivers on episodic events like conducting elections, which have a clear exit date but when it comes to daily events such as provision of civic amenities, the result is deeply unsatisfactory. Do you think that the division of bureaucracy between the three levels of government is a likely reason for such unamenities?
6. Modern states have evolved from directly running factories to regulating economic activity and for that Indian government needs to revisit the bureaucracy’s recruitment process and should focus on more domain expertise. Discuss.

QUOTATIONS AND CAPTIONS

• Political language is designed to make lies sound truthful and murder respectable.
• Delhi’s history of intervening positively also led to the ironical consternation of the Maldivian opposition parties who started a disquiet campaign against the Maldivian Government’s traditional ‘India First’ policy to suggest a compromise to Maldivian sovereignty.
• Democracy weakens when the people’s choice is not based on who will represent their interests and fulfil their aspirations.
• Democracy is always in a state of flux and not in its ideal form.
• To strengthen democracy, politics needs to be more accountable.
• Having one election every five years will make political parties more unaccountable and free to fulfil the agenda of vested interests. That will weaken democracy and cost the nation far more than the direct and indirect costs of elections at present.
• Even if India had a perfect democracy, the ‘One Nation, One Election’ idea assumes homogeneity in the nation.
• A one-size-fits-all approach goes against the reality of the nation’s diversity and can lead to severe political backlash.
• The reality is that India has an imperfect democracy that needs to be strengthened.
• Elections are the times when the public can force political parties to become answerable.
• Repeated elections have a cost, but the benefits of enhanced democracy that they trigger are far greater.
• No farmers’ company can address climatic aberrations amidst a changing climate, broken landscapes, tattered ecologies and market volatilities unless supported by policies and incentives.
• Balancing growth and inflation is a complex endeavour, requiring a steady hand on the economic tiller.
• Ever since the artificial intelligence chatbot GPT technology burst on the global computer media scene suggesting its multifarious applications and uses in almost any area of human endeavour.
• If the ASEAN has to remain relevant, it needs to reinvent itself to suit the changing regional environment.
• Shortage of workers is pushing the demand for farm equipment. India can dominate the world market by leveraging its machine tools.
• The UN has the responsibility to resolve conflicts. But its failure should not be taken as an opportunity to abet terrorism in the name of freedom.
• It is crucial to re-evaluate building typologies and focus on developing climate-resilient designs.
• The bureaucracy delivers on episodic events like conducting elections, which have a clear exit date. But when it comes to daily events such as provision of civic amenities, the result is deeply unsatisfactory.

50-WORD TALK

• The external affairs ministry’s statement has rightly made it clear that India’s condemnation of the Hamas terror attack on Israel and New Delhi’s stated support to two-states solution on Palestine are not mutually exclusive. Unnecessarily obfuscating the two issues only sullies public debate. India’s position has been nuanced but consistent.
• Supreme Court listing electoral bonds case for final hearing after six years is welcome. Issues at stake are vital for democracy— need for transparency in political funding and undue advantage to ruling party. From passage as Money Bill to legalization of anonymity—this haze-shrouded scheme calls for thorough judicial scrutiny.

Things to Remember:

• For prelims-related news try to understand the context of the news and relate with its concepts so that it will be easier for you to answer (or eliminate) from given options.
• Whenever any international place will be in news, you should do map work (marking those areas in maps and exploring other geographical locations nearby including mountains, rivers, etc. same applies to the national places.)
• For economy-related news (banking, agriculture, etc.) you should focus on terms and how these are related to various economic aspects, for example, if inflation has been mentioned, try to relate with prevailing price rises, shortage of essential supplies, banking rates, etc.
• For main exam-related topics, you should focus on the various dimensions of the given topic, the most important topics which occur frequently and are important from the mains point of view will be covered in ED. Try to use the given content in your answer. Regular use of this content will bring more enrichment to your writing.

RELEVANCE TO UPSC SYLLABUS: GS 3: INDIAN ECONOMY AND ISSUES RELATING TO PLANNING, MOBILIZATION OF RESOURCES

THE CONTEXT

India’s gross revenues from the Goods and Services Tax (GST) stand at over ₹9.92 lakh crore in September 2023 which is halfway through the financial year, marking an 11.1% increase over collections between April and September 2022.

MORE ON THE NEWS

• Central and state governments collected ₹62 trillion in Goods and Services Tax (GST) in September, 2023 marking the fourth highest monthly collection since the inception of the indirect tax regime and a 10% annual growth from the year-ago period.
• It places government at a comfortable place regarding GST revenues in the fiscal context, as during the January-March 2024 quarter central bank expects real GDP growth to slow to 5.7% from 7.8% in the first quarter.

WHAT IS GST?

• GST has been introduced by 101st Amendment Act of 2016 and is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. It essentially is a tax only on value addition at each stage.
• The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

At the Central level, the following taxes are being subsumed:

1. Central Excise Duty
2. Additional Excise Duty
3. Service Tax
4. Additional Customs Duty commonly known as Countervailing Duty
5. Special Additional Duty of Customs.

At the State level, the following taxes are being subsumed:

1. Subsuming of State Value Added Tax/Sales Tax,
2. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
3. Octroi and Entry tax,
4. Purchase Tax,
5. Luxury tax, and
6. Taxes on lottery, betting and gambling.

BENEFITS OF GST

• Easy compliance: All the tax payer services such as registrations, returns, payments, etc. are available to the taxpayers online, which would make compliance easy and transparent.
• Uniformity of tax rates and structures: GST ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business.
• Removal of cascading: A system of seamless tax-credits throughout the value-chain, and across boundaries of States, ensure that there is minimal cascading of taxes. This reduce hidden costs of doing business.
• Higher revenue efficiency: GST mechanism decrease the cost of collection of tax revenues of the Government, and therefore, lead to higher revenue efficiency.

GST COUNCIL

• GST Council has been introduced for smooth and efficient administration of GST by cooperation and coordination under Article 279-A in the constitution of India.
• The GST Council consists of the following members:

1. The Union Finance Minister (as Chairman).
2. The Union Minister of State in-charge of Revenue or Finance.
3. The Minister in charge of Finance or Taxation or any other Minister, nominated by each State Government.
4. The members of the Council from the states have to choose one amongst themselves to be the Vice-Chairperson of the Council. They can also decide his term.
5. The Union Cabinet also decided to include the Chairperson of the Central Board of Excise and Customs (CBEC) as a permanent invitee (non-voting) to all proceedings of the Council.

• The council is devised in such a way that the centre will have 1/3^rd voting power and the states have 2/3^rd. The decisions are taken by 3/4^th

Reasons for the Increase in GST Revenue

• Improvement in economic activity: One of the main reasons for the increase in GST revenue is the improvement in economic activity.
• Enhanced compliance: Another reason for the increase in GST revenue is the enhanced compliance and anti-evasion measures taken by the government.
• Reforms introduced by government: The government has introduced several reforms such as e-invoicing, e-way bills, Aadhaar authentication, data analytics, and artificial intelligence to plug leakages and prevent tax evasion.

THE ISSUES

• Impact of slowdown not evenly distributed: The impact of the slowdown has not been evenly distributed across income groups and categories.
• Beyond the macro resilience that these numbers indicate, a few areas of concern deserve closer scrutiny from policymakers and the GST Council:
• Slowdown in growth of GST: There is slowdown in the growth of GST inflows and in domestic transactions and services imports between July and September, the slowest since July 2021.
• Mandatory E-invoicing: E-invoicing became mandatory for all firms with a turnover of over ₹5 crore since August 1, 2023 ,so there comes need of another compliance mechanism.
• Shrink in revenue from goods: Revenues from goods imports that have shrunk four times in 2023 despite high import. Authorities must check for revenue leakages from imports.

THE TRENDS

• Increase in taxpayers: A substantial increase has been observed across different categories individuals, firms and companies. For example, number of taxpayers increased by 64% between 2014 and 2022.
• More number of returns filed: There is growth in number of taxpayers filing returns.

However, this growth in taxpayers is insufficient as the most of the tax returns are associated with nil taxes.

• Rise in direct tax: There is growth in direct tax collections and higher tax buoyancy with increase in taxpayers and increase in returns filed which suggests noticeable gains in compliance.

THE WAY FORWARD

• Strengthening of GST Council: There is need of strengthening of GST Council for its better functioning. There have been instances of disagreements in resolving issues such as dispute resolution mechanism and revenue-sharing formulas that needs to be resolved.
• Simplification of GST rates: The rationalization of GST rates and slabs would reduce compliance costs, improve tax buoyancy, and eliminate classification disputes.
• Mechanism for higher revenue generation: An increase in returns filed is however not an end in itself. It must lead to higher revenues for which newer mechanism needs to be developed.
• Need scrutiny: Amid broadly healthy GST inflows, some trends need greater scrutiny. There is need of capacity building of state tax authorities as success of GST depends on adapting to the new requirements.

THE CONCLUSION

With higher revenue and simplified tax regime, GST is termed as positive step towards shifting Indian economy from the informal to formal economy. There is need of certain reforms to overcome the impending challenges.

PREVIOUS YEAR 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? (2020)
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 since July 2017.(2019)

 MAINS PRACTICE QUESTIONS

1. Although there has been improvement in GST revenue collection, the GST regime suffers from multiple challenges. Comment.

SOURCE: https://www.thehindu.com/opinion/editorial/revenue-riddles-the-hindu-editorial-on-gst-inflows-and-areas-of-concern/article67389922.ece

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