General Studies Paper-3

Context

• Recently, the World Health Organization (WHO) has designated the National Institute of Indian Medical Heritage, Hyderabad as a WHO Collaborating Centre for ‘Fundamental and Literary Research in Traditional Medicine’.

About the Traditional Medicine in India

• India has a rich heritage of traditional medicine that includes Ayurveda, Yoga, Naturopathy, Unani, Siddha, Sowa Rigpa, and Homeopathy.
• Practices
  • Ayurveda and Yoga are practised widely across the country.
  • The Siddha system is followed predominantly in Tamil Nadu and Kerala.
  • The Sowa-Rigpa system is practised mainly in Leh-Ladakh and Himalayan regions such as Sikkim, Arunachal Pradesh, Darjeeling, Lahaul & Spiti.
• These systems have been integrated into the national healthcare system with institutionalised education and research councils.
• WHO describes traditional medicine as the total sum of the “knowledge, skills and practises indigenous and different cultures have used over time to maintain health and prevent, diagnose and treat physical and mental illness.

Related Efforts by WHO

• It has established the WHO Global Centre for Traditional Medicine in India to harness their potential through modern science and technology.
• WHO Collaborating Centre: In India, there are approximately 58 WHO Collaborating Centres spanning various disciplines of biomedicine and allied sciences.
  • The National Institute of Indian Medical Heritage (NIIMH), Hyderabad ranks as the third WHO Collaborating Centre in the domain of Traditional Medicine, following the Institute for Teaching & Research in Ayurveda, Jamnagar, and the Morarji Desai National Institute of Yoga (MDNIY), New Delhi.

Efforts made by India

• India has established a separate Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homoeopathy) to promote holistic health and well-being.
  • It oversees the growth and development of traditional Indian medicines and Homoeopathy with the objective of making accessible, safe, effective, and quality medicines available to the public.
• Digital Initiatives and Portals
  • AMAR Portal: Catalogues Ayush manuscripts, with digitised content available.
  • SAHI Portal: Displays medico-historical artefacts.
  • e-Books of Ayush: Digital versions of classical textbooks.
  • NAMASTE Portal: Morbidity statistics from hospitals.
  • Ayush Research Portal: Indexes published Ayush research articles.
• Collections and Publications
  • Manuscripts and Library: Over 500 physical manuscripts, rare books from the 15th century AD.

Journal: Publishes the Journal of Indian Medical Heritage.

General Studies Paper-2

Context: The Union government will announce a Rs 2,800 crore Digital Agriculture Mission.

About the Mission

• Digital Agriculture Mission will pave the way for creation of a nationwide farmers registry, crop sown registry, and georeferencing of village maps.
• A budgetary allocation of Rs 28,00 crore has been made for the mission and it will be rolled out over the next two years (till 2025-26).
• The launch of the mission was initially planned in 2021-22 but due to Covid-19 outbreak, it could not be rolled out nationally.

Components

• One of the components of the mission is to create a farmers’ registry, in which every farmer will be given a unique ID
• The mission also envisages a crop sown registry.
  • This will have a record of crops sown by a farmer on his land.
  • It will help better planning and estimation of crop production.

Progress

• A pilot project has been undertaken across 6 districts — Farrukhabad in Uttar Pradesh, Beed in Maharashtra, Gandhinagar in Gujarat, Fatehgarh Sahib in Punjab, and Virudhunagar in Tamil Nadu.
  • Uttar Pradesh and Maharashtra have already started generation of farmers’ ID.
  • The unique farmer ID will allow launch of new value-added services and farmers will be able to avail various government schemes including PM-Kisan and Fasal Bima Yojana through this ID.
  • It will also enable them to avail financial services like farm loans and insurance.

Importance

• The adoption of digital technologies can help India to increase agricultural productivity, reduce waste, increase agricultural export, increase farmers’ income and improve food and nutrition security.
• Apart from this, this will help in protecting the environment and sustainable development of the overall agricultural sector.
• Artificial Intelligence (AI) will be a tool for farmers to detect crop anomalies , predict the weather,analyse soil quality, and provide required solutions
• Therefore,The Digital Agriculture Mission aims to encourage and speed up projects based on cutting-edge technologies, including AI, blockchain, remote sensing, robots, and drones.

Challenges

• There is a lack of a centralized repository for agricultural data, posing challenges for startups and organizations developing AI solutions.
• AI solutions require sensors, mechanization for precision farming and connectivity none of which are viable for a majority of Indian farmers.
• Finally, concerns of farmer data privacy and safeguards over who can access personal data need to be addressed in the solution architecture.

Other related steps

• The Union government has also launched AI programmes assisting agriculture and Kisan e-Mitra, anAI-powered chatbot that assists people regarding the PM Kisan Samman Nidhi scheme.
• The National Pest Surveillance System uses AI to detect crop issues, enabling timely intervention for healthier crops.
• Agricultural mechanisation – During the period from 2014-15 to December, 2023 an amount of Rs 6405.55 crore has been allocated for agricultural mechanisation.
• From within the funds of Sub-Mission on Agricultural Mechanization (SMAM),
• So far an amount of Rs 141.41 crores have been released towards Kisan drone promotion
• National e-Governance Plan in Agriculture (NeGPA): NeGPA aims to achieve rapid development in India through use of Information & Communication Technology (ICT) for timely access to agriculture related information for the farmers.
• The launch of the digital platform e-NAM (National Agriculture Market) in 2016 has facilitated the integration of Agriculture Produce Marketing Committees (APMC) mandis and has provided multi-faceted benefits to farmers, farmer-producer organisations (FPOs), buyers, and traders

Conclusion and Way Forward

• Digital agriculture has excellent potential in India to resolve many of the existing problems that farmers face to realise value and provide strong competition in national and global markets.
• Its success will depend on policy and legal enablers along with significant public private partnerships.
• Realising the AI potential requires the establishment of an AI-ready ecosystem equipped with ethical frameworks, robust data-sharing mechanisms, an effective risk management protocols

Given the direction that the union and various state governments have taken in recent times along with the booming growth of agri-startups in the country, India is on the right path to transforming its agricultural sector and providing accelerated value to all farmers.

General Studies Paper -2

Context: Recent Lok Sabha verdict has brought back regional parties from Andhra Pradesh and Bihar to pole positions in the country’s governance looking for strengthening the federal polity and making decision-making more democratic.

ISRO’s Reusable Launch Vehicle (RLV) Programme

• Recently, the Indian Space Research Organisation (ISRO) informed that it is all set to carry out the third and final RLV Landing Experiment (RLV LEX) under the Reusable Launch Vehicle (RLV) Programme.

About the Reusable Launch Vehicle Landing Experiment (RLV LEX) of ISRO

• RLV-LEX missions involve taking an unmanned winged prototype, christened Pushpak, to a designated height and releasing it to land safely under varying conditions.
• The configuration of RLV-TD is similar to that of an aircraft and combines the complexity of both launch vehicles and aircraft.
• The winged RLV-TD has been configured to act as a flying test bed to evaluate various technologies, namely, hypersonic flight, autonomous landing, and powered cruise flight.
• In the future, this vehicle aims to be scaled up to become the first stage of India’s reusable two-stage orbital launch vehicle.

Significance of the Experiment

• It marked a significant milestone in ISRO’s journey towards achieving low-cost access to space. The successful execution of the landing experiment demonstrated ISRO’s capability to develop a reusable launch vehicle, which is expected to significantly reduce the cost of launching satellites into orbit.
• The RLV-TD programme is a testament to ISRO’s commitment to innovation and technological advancement. With the successful completion of this landing experiment, ISRO has moved one step closer to realising its vision of developing a fully reusable launch vehicle.
• After the successful completion of the RLV-LEX series, ISRO plans to proceed with the next stage of tests under the RLV-TD Programme, involving an unmanned Orbital Re-entry Vehicle (ORV) that is 1.6 times the size of ‘Pushpak’ used in the LEX missions.
  • The ORV will be placed in a 400-kilometre orbit around Earth using a modified Geosynchronous Satellite Launch Vehicle (GSLV)

General Studies Paper -2

Context: A record 120 million people were living in a forcibly displaced status globally from the beginning of 2023 through May 2024, according to the Global Trends report by the United Nations Refugee Agency (UNHCR).

Key Findings

• Record Displacement: The number of forcibly displaced individuals rose to 120 million by May 2024, a nearly 10% increase from 2022, representing about 1.5% of the global population.
• Notable Statistics: At the end of 2023, 117.3 million people were forcibly displaced.
  • Fighting in Sudan caused over 6 million people to flee by December 2023.
  • In Gaza, up to 1.7 million people, or over 75% of the population, have been displaced.
  • There are around 6 million Palestinian refugees under the UNRWA mandate, with 1.6 million in the Gaza Strip.
• Global Distribution: Contrary to common perception, 75% of refugees and migrants move to low and middle-income countries.
• Asylum Applications: Half of all new asylum applications in 2023 were filed in five countries, with the US receiving the most (1.2 million), followed by Germany (329,100), Egypt, Spain, and Canada.
• Causes: Major drivers include persecution, conflict, violence, human rights violations, and public order disturbances. Conflict, in particular, remains a significant factor, with the ongoing situation in Sudan and the war in Gaza cited as major causes of displacement.
• Other Affected Regions: Myanmar, Afghanistan, Ukraine, the Democratic Republic of the Congo, Somalia, Haiti, Syria, and Armenia are also significant sources of displaced people.
• Impact of Climate Change: Climate-related hazards significantly impact displacement trends, with extreme weather events exacerbating the vulnerabilities of displaced populations.
• Implications of Displacement & Migrations Around the World
• Negative Implications:
  • Humanitarian Crisis: Displacement often leads to immense human suffering, loss of life, trauma, and the erosion of basic human rights. Refugees and migrants face vulnerability to exploitation, abuse, and discrimination.
  • Economic Strain: Host countries, especially those with limited resources, may struggle to provide adequate services and infrastructure for large numbers of newcomers. This can strain public resources and social systems.
  • Social Tension: Large-scale migration can sometimes lead to social tensions, xenophobia, and discrimination in host communities. Integrating newcomers can be a challenge, requiring careful planning and resources.
  • Political Instability: Displacement and migration can exacerbate political tensions and conflicts, both in countries of origin and destination.
• Positive Implications:
  • Economic Growth: Migrants can contribute to economic growth in host countries by filling labor shortages, starting businesses, and paying taxes.
  • Cultural Enrichment: Migration can lead to cultural exchange and diversity, enriching societies with new perspectives, ideas, and traditions.
  • Skills and Knowledge Transfer: Migrants often bring valuable skills and knowledge that can benefit host countries in various sectors.
  • Demographic Balance: In some cases, migration can help address demographic challenges, such as aging populations.

Treaties and Programs

• 1951 Refugee Convention: The cornerstone of international refugee law, defining who is a refugee and outlining their rights and the obligations of states to protect them.
• Global Compact on Refugees (GCR): A framework for more predictable and equitable responsibility-sharing among states in responding to refugee situations.
• Global Compact for Safe, Orderly and Regular Migration (GCM): A non-binding agreement that aims to improve cooperation on international migration.
• UNHCR (United Nations High Commissioner for Refugees): The UN agency responsible for protecting and assisting refugees worldwide.
• IOM (International Organization for Migration): The UN agency that provides services and advice on migration to governments and migrants.

Way Ahead

• Conflict Prevention and Resolution: Addressing the root causes of displacement, such as conflict, persecution, and human rights abuses, is crucial to prevent future crises.
• Humanitarian Aid: Providing immediate assistance to displaced populations, including food, shelter, healthcare, and protection, is essential to save lives and alleviate suffering.
• Sustainable Development: Investing in development programs in countries of origin can create economic opportunities and improve living conditions, reducing the incentives for people to migrate.
• Legal Pathways and Protection: Expanding legal pathways for migration, such as resettlement programs and work visas, can provide safer and more orderly alternatives to irregular migration. Strengthening legal protections for refugees and asylum seekers is also vital.

General Studies Paper -2

Context: The Central Government has released an instalment of  ₹1.39 lakh crore for tax devolution to the states.

About

• It includes the regular devolution amount for June 2024 and an additional instalment, enabling State Governments to accelerate development and capital spending.
  • The additional funds will support State Governments in enhancing their developmental activities and infrastructure projects, thereby boosting economic growth at the state level.
• The Interim Budget for FY25 had earmarked Rs. 12.19 trillion towards devolution of taxes to states. With this release, the total amount devolved for FY25 to states till 10 June stands at Rs. 2.8 trillion.

About Tax devolution

• It is a crucial revenue stream for states, involving the Centre allocating tax collection to states.
• Article 270 of the Constitution provides for the scheme of distribution of net tax proceeds collected by the Union government between the Centre and the States.
• The taxes that are shared between the Centre and the States include corporation tax, personal income tax, Central GST, the Centre’s share of the Integrated Goods and Services Tax (IGST) etc.
• Article 280(1) of the Constitutions lays down that the modalities for setting up of a Finance Commission to make recommendation on the distribution of net proceeds of taxes between the Union and the States, allocation between the States of respective shares of such proceeds; grants- in-aid and the revenues of the States and measures needed to supplement the resources of the Panchayats during the award period.
• The divisible pool, however, does not include cess and surcharge that are levied by the Centre. the basis for allocation
• The share of States from the divisible pool (vertical devolution) stands at 41% as per the recommendation of the 15th FC.
• The distribution among the States (horizontal devolution) is based on various criteria. The criteria as per the 15th FC can be briefly explained as follows.
  • ‘Income distance’ is the distance of a State’s income from the State with highest per capita income.
  • States with lower per capita income would be given a higher share to maintain equity among States.
  • ‘Population’ is the population as per the 2011 Census. Till the 14th FC, weightage was given for the population as per the 1971 Census but that has been discontinued in the 15th FC.
  •  ‘Forest and ecology’ consider the share of dense forest of each State in the aggregate dense forest of all the States.
  • ‘The demographic performance’ criterion has been introduced to reward efforts made by States in controlling their population.
  • States with a lower fertility ratio will be scored higher on this criterion.
  • ‘Tax effort’ as a criterion has been used to reward States with higher tax collection efficiency.

Criticism and Issues

• The Constitutional scheme has always favoured a strong centre in legislative, administrative and financial relations.
• However, federalism is a basic feature and it is important that States don’t feel short-changed when it comes to distribution of resources.
• While there are always political differences between the Union government and Opposition-ruled States that exacerbate the problem, there are genuine issues that need to be considered.

Suggestions and Way Ahead

• The divisible pool can be enlarged by including some portion of cess and surcharge in it.
• The Centre should also gradually discontinue various cesses and surcharges it imposes by suitably rationalising the tax slabs.
• The weightage for efficiency criteria in horizontal devolution should be increased.
• GST being a consumption-based destination tax that is equally divided between the Union and the State means that State GST accrual (inclusive of Integrated GST settlement on inter-state sales) should be the same as the Central GST accrual from a State.
  • Hence, relative GST contribution from States can be included as a criterion by providing suitable weightage in future FCs.
• Finally, similar to the GST council, a more formal arrangement for the participation of States in the constitution and the working of the FC should be considered.
• These are measures that need to be implemented by the Centre after discussion with all the States.
• It is also imperative that the States uphold principles of fiscal federalism by devolving adequate resources to local bodies for vibrant and accountable development.

General Studies Paper -2

Context: In 2002, the International Labour Organisation (ILO) established June 12th as the World Day Against Child Labour to raise awareness about the global issue of child labor and advocate for its elimination.

About

• This year, in 2024, the day is observed under the theme, “Let’s Act on Our Commitments: End Child Labour,” which emphasizes the need for collective action to eradicate child labour and protect children from exploitation.
• This year also marks the 25th anniversary of the adoption of the Convention on the Worst Forms of Child Labour. It’s also a chance to encourage all stakeholders to enhance their implementation of the two main conventions on child labour, namely Convention No. 182 and Convention No. 138 on the Minimum Age for Admission to Employment or Work.

What is Child Labour?

• Child labour is defined as any work that is inappropriate for a child’s age, physical, or mental capacity, and its far-reaching consequences can have devastating effects on their development and future.
• In India, the Constitution explicitly prohibits children under the age of 14 from working in mines, factories, or hazardous occupations. Similarly, the International Labour Organisation (ILO) defines a child as anyone below the age of 18 who should not be involved in hazardous work.
• The activities such as helping their parents around the home, assisting in a family business or earning pocket money outside school hours and during school holidays are not included in the Child Labour.
• Article 24 of the Indian constitution prohibits the employment of children below the age of 14 years in any factory or mine or employed in any hazardous employment.

Types of Child Labour

• Hazardous Child Labour: This involves children working in dangerous environments or performing tasks that pose significant risks to their health, safety, or morals. Examples include mining, construction, manufacturing with hazardous chemicals, and work involving heavy machinery.
• Domestic Child Labour: Children, predominantly girls, are employed within households for tasks like cooking, cleaning, and childcare. This often involves long hours, minimal pay, and potential exposure to abuse.
• Bonded Child Labour: Children are forced to work to repay a debt incurred by their family. This traps them in a cycle of exploitation, as the debt often becomes insurmountable.
• Child Trafficking: Children are recruited, transported, or harbored for the purpose of exploitation, which can include forced labor, sexual exploitation, or organ trafficking.
• Commercial Sexual Exploitation of Children (CSEC): Children are used in commercial sex acts, including prostitution and pornography. This is a grave violation of their rights and well-being.

Child labour in India: Data Facts

• According to UNICEF, child Labour amounts to approximately 13% of our workforce, or in other words, 1 in every 10 workers in India is a child.
• According to the Census 2011, there are approximately 10.1 million child labourers in India aged between 5 to 14 years.
• Boys constitute about 5.6 million and girls about 4.5 million of the total child labour population.
• The prevalence of child labour in rural areas (14%) is close to three times higher than in urban areas (5%).
• The majority of child labourers (around 70%) work in the agriculture sector, including farming, livestock, forestry, and fisheries followed by 20% in services.
• Uttar Pradesh has the highest number of child labourers, approximately 2.1 million.

Impacts

• Health and Physical Development: Child labour accompanied by poor nutrition stunt a child’s growth and development.
• Educational Impact: This will increase school dropouts and absenteeism and missing out on education results in low literacy rates and lack of essential skill.
• Economic Impact: Child labour contributes to the cycle of poverty. As children grow up without proper education and skills, they are likely to remain in low-paying, unskilled jobs.
• Social Inequality: Child labour reinforces social inequalities, as children from disadvantaged backgrounds are more likely to be pushed into work.

Steps Taken to Eradicate Child Labour in India

• Indian Constitution: Article 21 A (Right to Education): The State shall provide free and compulsory education to all children of the age of 6 to 14 years in such manner as the State, by law, may determine.
  • Article 23: Any type of forced labour is prohibited.
  • Article 24: It states that a child under 14 years cannot be employed to perform any hazardous work in any factory or mine.
  • Article 39: It states that “the health and strength of workers, men and women, and the tender age of children are not abused”.
• Child Labour Act (Prohibition and Regulation) 1986: It prohibits children under the age of 14 years to be working in hazardous industries and processes.
• National Policy on Child Labour, 1987: It contains the action plan for tackling the problem of child labour.
• Juvenile Justice (Care and Protection of Children) Act 2015: It governs laws relating to children alleged and found to be in conflict with the law.
• Protection of Children from Sexual Offences (POCSO) Act 2012: It seeks to prevent commercial sexual exploitation of children.
• Trafficking in Persons (Prevention, Care and Rehabilitation) Bill: There are specified penalties for offences divided into “trafficking” and “aggravated trafficking”. It widened the scope of “victims” to include transgender persons.
• National Child Labour Project (NCLP) Scheme: The government initiated it in 1988 to rehabilitate working children in 12 child labour endemic districts of the country and expanded with time. This is the major Central Sector Scheme for the rehabilitation of child labour.
• The Child and Adolescent Labour (Prohibition and Regulation) Act (CALPRA): CALPRA states that no child shall be allowed to work for more than five hours in a day, and for not more than three hours without rest. The provisions of CALPRA also state, that at least 20% of the income earned by the child from the production or event is to be directly deposited in a fixed deposit account in a nationalised bank in the name of the child which may be credited to her/him on attaining majority.
• Platform for Effective Enforcement for No Child Labour (PENCIL): It is an electronic platform that aims at involving Centre, State, District, Governments, civil society and the general public in achieving the target of child labour free society.

International Efforts

• The United Nations made 2021 the International Year for the Elimination of Child Labour, calling for urgent action needed to meet a goal of ending the practice by 2025.
• The Sustainable Development Goals (SDGs) target 8.7 adopted by world leaders in 2015, include a renewed global commitment to ending child labour.
• ALLIANCE 8.7: It is an inclusive global partnership committed to achieving Target 8.7 of the 2030 Sustainable Development Goals (SDGs). It works for eradicating forced labour, modern slavery, human trafficking and child labour around the world.
  • The International Labour Organization (ILO) currently serves as Secretariat for Alliance 8.7.

Challenges in Tackling Child labours

• Poverty and Economic Pressures: High poverty rates force families to rely on the income generated by their children to meet basic needs.
• Lack of Access to Quality Education: Insufficient educational infrastructure, lack of schools, and poor quality of education discourage attendance and completion.
• Weak Enforcement of Laws: Inadequate implementation and monitoring of child labour laws due to corruption, lack of resources, and administrative inefficiencies.
• Informal Economy and Unregulated Sectors: A significant portion of child labour occurs in informal sectors like agriculture, domestic work, and small-scale industries, which are hard to regulate.
• Cultural Norms and Social Acceptance: In many communities, child labour is culturally accepted and seen as a norm, making it challenging to change mindsets.
• Migration and Displacement: Migrant families and displaced populations are more vulnerable to child labour due to lack of stable income and access to social services.
• Lack of Awareness: Many parents and communities are unaware of the long-term negative impacts of child labour and the benefits of education.
• Gender Disparities: Girls are particularly vulnerable to exploitation in domestic work and are often kept out of school to help with household chores.
• Child Trafficking: Trafficking of children for labour is a significant issue, exacerbated by weak law enforcement and border controls.
• Impact of COVID-19: The pandemic has exacerbated the situation, pushing more children into labour due to economic hardship, school closures, and lack of access to remote education.

Way Ahead

• Ensuring Access to Quality Education: Empowering children with the knowledge and skills needed to break free from the constraints of child labour.
• Strengthening Enforcement of Labour Laws and Providing Social Protection: Implementing robust labour law enforcement and comprehensive social protection measures to safeguard children from exploitation.

General Studies Paper- 2

Context: Recent Lok Sabha verdict has brought back regional parties from Andhra Pradesh and Bihar to pole positions in the country’s governance looking for strengthening the federal polity and making decision-making more democratic.

About the Fiscal Federalism

• It is a critical aspect of governance that deals with the division of financial powers and responsibilities between the Union and State governments within the framework of a federal system.
• It focuses on responsibilities (including finances) among federal, state, and local governments to improve economic efficiency and achieve various public policy objectives.

Fiscal Federalism in India

• Shifts in Fiscal Landscape: The fiscal landscape has been altered by several factors, including the shift from a planned economy to a market-mediated economic system, the transformation of a two-tier federation into a multi-tier fiscal system following the 73rd and 74th Constitutional Amendments, the abolition of the Planning Commission and its replacement with NITI Aayog, the passing of the Fiscal Responsibility and Budget Management (FRBM) Act, and the introduction of the Goods and Services Tax (GST) Act.
  • These changes have had varying consequences on India’s federalism.
• Vertical and Horizontal Imbalances: The Indian Constitution, while expressly vesting the Centre with greater powers of taxation, also provides for an institutional mechanism — the Finance Commission — to determine the share of the States in the Central tax revenues by way of correcting the vertical imbalance(between the Centre and the States) as well as the horizontal imbalance, the one between the States with varying fiscal capacities but similar responsibilities in the provision of public services.
  • The founding fathers of the Constitution provided that the Centre shall share its tax revenues with the states as well as provide grants from the Consolidated Fund as per a formula decided by the Finance Commission every five years.
• Federal Tax System: India has a three-tier federal tax system, with the powers of the Centre, states, and local bodies to collect taxes clearly demarcated.
• The Central government has the power to collect taxes on incomes of individuals and businesses, as well as indirect taxes such as the central goods and services tax, integrated goods and services tax, and customs. The Centre also collects surcharges and cesses on taxes.
• States collect state GST, stamp duty, land revenue, state excise, and professional tax.
  • Local bodies collect property/house tax, tolls, and taxes on utilities such as electricity and water.

Challenges related to Fiscal Federalism in India

• Centralization and Market-Mediated Economic System: The shift from a planned economy to a market-mediated economic system, the transformation of a two-tier federation into a multi-tier fiscal system following the 73rd and 74th Constitutional Amendments, and the introduction of the Goods and Services Tax (GST) Act have altered the fiscal landscape.
  • It led to dissatisfaction due to the highly centralised system, impediments to a common market, and regional aspirations for statehood.
• GST and Fiscal Autonomy: The introduction of GST has transformed fiscal federalism in the country. While it has led to steady growth of GST revenue, indicating the success of the reform, it has also been cited as a restriction on the powers of the states.
• Critics argue on the autonomy of states with the introduction of GST.
• Equity and Income/Growth Disparities: There has been a long-term stability in the shares of the Centre and the States in the combined tax revenues.
• However, the actual experience in India has been astounding with the top 1% earners in India capturing less than 21% of the total income in the 1930s, but this was drastically reduced to 6% in the early 1980s and then rose to 22% during the liberalisation era.
  • It led to an increasingly divergent trend in per capita income across states.
• Political Centralization: The asymmetric federalism inherent to the Constitution was only accelerated and mutually reinforced with political centralization since 2014, making the Union Government extractive rather than enabling.
  • It led to states losing their capacity to generate revenue by surrendering their rights in the wake of the GST regime.
• Post-Pandemic Fiscal Policies: In the post-pandemic world, there is a need to rethink existing principles that guide the country’s fiscal policy, including debt, which is expected to remain high.
• North-South Divide in India: It has been a topic of intense discussion, especially in the context of fiscal federalism.
  • The southern states of India have often expressed concerns about the alleged unfair devolution of tax money, claiming they were deprived of their legitimate share from central taxes.
  • States such as Karnataka, Kerala, Tamil Nadu, and West Bengal have also complained and protested against the alleged denial of their dues under central schemes, flagged the Centre’s tight control on their borrowing limits and lack of adequate support in times of disasters.

Strengthening Fiscal Federalism

• Strengthening fiscal federalism in India is a complex task that involves multiple aspects. It is crucial for addressing these concerns and fostering cooperation and accommodation between the North and South.
• Cooperative Federalism: NITI Aayog has been constituted to actualize the important goal of cooperative federalism and to enable good governance in India. It acts as the quintessential platform for the Government of India by bringing States together as ‘Team India’ to work towards the national development agenda.
• A number of steps have been taken by NITI Aayog to foster cooperative federalism through structured support initiatives and engagement with the States/UTs on a continuous basis.
• 16th Finance Commission: It, headed by Arvind Panagariya, has been given more freedom to determine the scope of its recommendations, providing it more room to strengthen fiscal federalism.
• Its job is to ensure balance in resource transfers between the Centre and states, and among states.
• However, states grudgingly relinquish their resource-raising capacity and resent any loss of agency over expenditure.
• Addressing Inequities: The concerns of the founding fathers — addressing socio-economic inequities — are being forgotten in today’s fiscal policy.
• The original intention of addressing inequities was turned on its head as it metamorphosed into one of the world’s most regressive taxation systems due to a centralised fiscal policy.
• India’s intergovernmental transfer system should be decidedly more equity-oriented.
• Granting State Governments the Powers to Levy Income Taxes: One tangible solution to restore the balance in fiscal federalism is to grant State governments the powers to levy income taxes.
• New Fiscal Federal Architecture: India will be able to truly actualize the ‘grand bargain’ and see the GST as an enduring glue holding the four pillars together by creating the new fiscal federal architecture and strengthening India’s unique cooperative federalism.

Future Directions

• The future of fiscal federalism in India likely to involve further reforms to address these challenges and imbalances that includes making the intergovernmental transfer system more equity-oriented, addressing the resource asymmetry between the Centre and the States, and managing growing regional tensions.

Conclusion

• Fiscal federalism in India has faced numerous challenges, including the transition from a planned economy to a market-based system, globalisation, and the changing political environment. The system had to be reoriented to create a competitive environment. There has been dissatisfaction due to the highly centralised system, impediments to a common market, and regional aspirations for statehood.

General Studies Paper- 2

Context: The Cabinet has decided to further expand the Pradhan Mantri Awas Yojana and construct 3 crore additional rural and urban houses.

About Pradhan Mantri Awas Yojana (PMAY)

• The Government of India has been implementing Pradhan Mantri Awas Yojana since 2015-16 to provide assistance to the eligible rural and urban households for construction of houses with basic amenities.
  • All the houses constructed under PMAY are provided the other basic amenities such as Household Toilets, LPG connection, Electricity connection, Functional Household Tap Connection etc. through convergence with other schemes of Central Government and State Governments.
• It has two components, PMAY-U for the urban poor and PMAY-G and PMAY-R for the rural poor.

PMAY-Urban :

• The Ministry of Housing and Urban Affairs has been implementing PMAY-U under ‘Housing for All’ Mission since June, 2015 by giving Central assistance to implementing agencies through States/Union Territories (UTs) for providing all-weather pucca houses with basic civic amenities to all eligible urban beneficiaries.
• It is a demand driven scheme and the Government of India has not fixed any target for construction of houses.
• It is being implemented through four verticals i.e., Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), In-Situ Slum Redevelopment (ISSR) and Credit Linked Subsidy Scheme (CLSS).
• Government of India is providing its fixed share as Central Assistance of ₹0 lakh under ISSR, ₹1.5 lakh for AHP and BLC verticals of PMAY-U.

PMAY-Gramin: 

• In order to achieve the target of “Housing for All” in rural areas, the Ministry of Rural Development is implementing PMAY-G with effect from 1st April 2016 to provide assistance to eligible rural households with an overall target to construct 2.95 crore pucca houses with basic amenities by March, 2024.
• Under PMAY-G, beneficiaries are provided financial Assistance of Rs.1.20 lakh in plain areas and Rs.1.30 lakh in hilly States (including North-eastern States and UTs of Jammu & Kashmir and Ladakh), difficult areas and Integrated Action Plan (IAP) districts. Additional assistance of Rs.12,000/- is extended for construction of toilets.

Importance and Progress

• In a nation where millions dream of owning a home, the Pradhan Mantri Awas Yojana (PMAY) emerges as a beacon of hope.
• It stands as a testament to the government’s commitment to providing affordable housing and improving the quality of life.
• It is not just a housing scheme but a mission to empower citizens with a sense of dignity and security.
• Under PMAY, a total of 4.21 Crore houses have been completed for the eligible poor families under the housing schemes in the last 10 years.

General Studies Paper- 2

Context: The BRICS Ministers of Foreign Affairs/International Relations met in the Russian Federation.

• Russia took over the chairmanship of BRICS on January 1, 2024.

About

• The meeting was the first ministerial meeting following BRICS expansion in 2023 when Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE joined Brazil, Russia, India, China, and South Africa as full-fledged BRICS members.
• The BRICS ministers held a plethora of discussions, including an important one on the enhanced use of local currencies in trade and financial transactions between the BRICS countries.

About BRICS

• The leaders of BRIC (Brazil, Russia, India, and China) countries met for the first time in St. Petersburg, Russia, on the margins of the G8 Outreach Summit in July 2006.
• The BRICS group was renamed as BRICS (Brazil, Russia, India, China, South Africa) after South Africa was accepted as a full member at the BRIC Foreign Ministers’ meeting in New York in September 2010.
• BRICS is an important grouping bringing together the major emerging economies from the world.

Main Pillars of BRICS

• Political and Security: Enhancing cooperation on global and regional security matters and reforming the multilateral system to make it more relevant for the 21st century.
  • Counter-terrorism and its financing remain crucial elements within this domain
• Economic and Financial: Promoting economic growth and development for mutual prosperity through intra-BRICS cooperation in trade, agriculture, infrastructure, SMEs, energy, finance, and banking.
  • This cooperation aims to promote collaborative approaches for the attainment of Sustainable Development Goals.
• Cultural and People-to-People Exchanges: Enriching intra-BRICS contacts through cultural, academic, youth, sports, and business exchanges.
  • Regular interactions among parliamentarians and young scientists are part of this effort to build stronger intra-BRICS relationships

Importance

• BRICS is a testament to the power of collective action and shared vision.
• The recent expansion promises enhanced economic cooperation, increased geopolitical influence, diversified perspectives, and renewed dynamism within the BRICS framework.
• The BRICS expansion facilitates market growth by providing access to new markets and trade and investment opportunities.
• This potential surge in economic activity can enhance economic growth and stability within the group. Diversifying economic interests is critical in mitigating risks and creating a more resilient financial ecosystem.
• Moreover, including these new members brings fresh perspectives and experiences to the table.

Emerging challenges

• The BRICS countries still fall short in showing a coherence of purpose, and are still mired by inner contradictions.
• Continued conflicts in the Middle East and North Africa (MENA) region .
• Climate change, pandemics, terrorism, and regional conflicts
• The journey towards a common currency within BRICS faces challenges due to economic disparities, monetary policy complexities, and divergent national priorities.
• China’s economic dominance might spark concerns regarding fair benefit distribution and currency influence

Conclusion and Way Forward

• BRICS continues to advocate for a more equitable world order, emphasizing equality, mutual respect, and trust.
• It has evolved from a mere dialogue forum to a significant player on the world stage.
• Its journey underscores the potential of strategic partnerships in addressing the multifaceted challenges of our times.
• Challenges undoubtedly exist, but the collective strength and shared objectives make BRICS a platform of immense potential.
• As it moves forward, BRICS remains committed to playing a pivotal role in global governance, advocating for a balanced and fair international order.
• The Indian Prime Minister expressed support for BRICS expansion, underlining that India has always advocated for it, believing that including new members will enhance BRICS as an organisation.

General Studies Paper- 3

Context: India’s agricultural sector, despite its vast acreage, faces challenges in productivity and competitiveness. While foodgrain production reached a record high in 2023, the sector’s contribution to GDP has declined due to lagging growth compared to other sectors.

Decline in Agriculture’s GDP Share

• There is a significant decrease in the share of agriculture in India’s GDP from 35% in 1990-91 to 15% in 2022-23. This shift underscores the rapid growth of the industrial and service sectors.
• Despite challenges, India’s foodgrain production reached a record high of 3.2 billion tonnes in 2023, reflecting an increase of 140.71 million tonnes from the previous fiscal year.
• With a population exceeding 1.40 billion, ensuring food security is a pressing concern, necessitating continuous innovation in the agricultural sector.

Key Challenges

• Limited Availability of Advanced Crop Nutrition: India lacks access to tailored crop nutrition due to regulatory constraints and hurdles in the licensing process. This hinders the adoption of innovative fertilizers that could boost productivity.
• Subsidized vs. Specialty Fertilizers: Bulk fertilizers, which are heavily subsidized, often do not meet the targeted nutritional needs of crops, whereas specialty fertilizers face regulatory barriers that limit their market introduction.
• Innovation and Efficiency: The gap in adopting innovative agricultural practices and fertilizers limits the potential for higher yields and competitiveness in global trade.
• Subpar Yields: The lack of advanced fertilizers and regulatory constraints contribute to lower crop yields, affecting farmer incomes and export potential.
• Stringent Regulatory Process: The Fertilizer Control Order (FCO) in India makes the fertilizer registration process lengthy and cumbersome, discouraging innovation and the introduction of new products.

Government Reforms and Initiatives

• National Trade Facilitation Action Plan (NTFAP) 2017-2020: While primarily focused on cross-border trade, this initiative indirectly contributes to agricultural efficiency by improving import/export processes for agricultural inputs and products.
• 2014 Guidelines for Water-Soluble Fertilizers: This reform demonstrates the government’s willingness to streamline regulations and promote innovation in the fertilizer sector. It reduced approval times for new water-soluble fertilizers to less than 60 days, leading to increased fertigation and better crop quality.
• Digital Registration Processes: Efforts to digitize applications for fertilizer registration to streamline processes and ensure quicker approvals, facilitating the introduction of innovative products.

Way Ahead

• Micro-nutrient Coated Fertilizers: Incorporating micronutrients into bulk fertilizers can enhance efficiency and reduce subsidy reliance.
• Streamlined Regulatory Framework: Establishing general specifications for fertilizers with minimum nutrient and maximum contaminant levels can expedite the approval process for innovative products.
• Digitalization of Registration Process: Online applications and faster approvals can streamline the introduction of new fertilizers.
• Learning from Success Stories: Emulating the 2014 guidelines for water-soluble fertilizers, which reduced approval times and boosted fertigation acreage, can be a model for further reforms.
• Investment in Research and Development: Allocate resources to develop new fertilizer formulations tailored to Indian soil and crop needs.

Conclusion

• Reforming the fertilizer registration process and promoting innovative solutions are crucial for enhancing agricultural productivity, empowering farmers, and ensuring sustainable growth in the sector.
• By streamlining regulations, incentivizing research, and embracing digital solutions, India can unlock its agricultural potential and achieve greater competitiveness in global markets.