General Studies Paper-2

Context: Recently, the Vice-President of India highlighted the transformation of India’s “Look East” policy into “Act East” by Prime Minister Narendra Modi.

Historical Context and Evolution

• Look East Policy (Post-Cold War Era): Introduced by Prime Minister P.V. Narasimha Rao in 1992, the Look East Policy sought to rectify India’s historical neglect of Southeast Asia, despite deep cultural and historical ties.
• Initially focused on Southeast Asia, the policy later expanded to East Asia and Oceania.
• Primary Objectives: Enhance trade and economic development.
  • Strengthen strategic and cultural connections with ASEAN nations.
  • Draw inspiration from the economic success stories of East Asia.
• Initial Outcomes: Reduction of trade barriers to facilitate commerce.
  • Increased inbound tourism from Southeast Asia.
• Act East Policy (Post-2014): The Act East Policy was a direct evolution of the Look East Policy, emphasizing stronger action and outcomes. In 2011, U.S. Secretary of State Hillary Clinton urged India to play a more active role in the Asia-Pacific, prompting a shift in approach.
  • In 2014, External Affairs Minister Sushma Swaraj formally declared India was ready to “Act East,” a commitment reinforced by Prime Minister Modi.
• Key Advancements: Greater emphasis on concrete action and outcomes.
  • Integration of Northeast India as a critical hub for regional engagement.
  • Recognition of the Indo-Pacific as a strategic and economic priority.
  • At the 2014 East Asia Summit, PM Modi introduced the 3Cs approach:
• Commerce – Expanding trade and economic ties.
• Culture – Strengthening historical and cultural linkages.
• Connectivity – Building infrastructure and digital networks for seamless integration.

Objectives and Achievements of Act East Policy

• Strategic Expansion: Extended focus beyond ASEAN to the broader Indo-Pacific region.
  • Strengthened regional groupings like BIMSTEC, Asia Cooperation Dialogue, and the Indian Ocean Rim Association (IORA).
• Enhanced defense diplomacy: Sale of BrahMos missiles to the Philippines.
  • Military logistics pact with Vietnam.
• Economic and Trade Ties: Reduction in trade barriers.
  • Greater economic integration with Southeast Asia via Free Trade Agreements (FTAs).
  • Increased foreign investment flows from the region into India.
  • India has elevated relations to strategic partnerships with Indonesia, Vietnam, Malaysia, Japan, South Korea, Australia, Singapore, and ASEAN.
  • India has invited ASEAN countries to join the International Solar Alliance, emphasizing regional integration and effective project implementation.
• Cultural and Soft Power Diplomacy: Promotion of shared cultural heritage, including Ramayana and Mahabharata traditions and Buddhist linkages.
  • Hosting of cultural events such as the Ramayana Festival with Southeast Asian participation.
  • India aims to revive and strengthen Buddhist and Hindu cultural links to enhance people-to-people connections and regional cooperation.
  • Connectivity: Improved infrastructure development in Northeast India to serve as a gateway to Southeast Asia.
• Major projects include:
  • India-Myanmar-Thailand Trilateral Highway.
  • Kaladan Multi-Modal Transit Transport Project.
  • Rhi-Tiddim Road Project and Border Haats to strengthen connectivity.

Challenges and Areas of Improvement

• Strategic and Economic Challenges: Environmental impact of urbanization and industrialization in Northeast India.
  • China’s Belt and Road Initiative (BRI) presents strong competition by offering attractive financial incentives to Southeast Asian nations.
  • China’s BCIM-EC (Bangladesh, China, India, Myanmar Economic Corridor) poses competitive challenges in connectivity and infrastructure.
  • Myanmar’s political transition is becoming increasingly challenging for India.
  • Despite its strategic geographical proximity to ASEAN nations, the Northeast is not yet fully integrated into India’s Bharatmala and Sagarmala projects.
• Soft Power and Cultural Challenges: China’s claim over Buddhist heritage challenges India’s narrative.
• Limited linguistic engagement: Few Indian universities offer courses in Khmer, Bahasa Indonesia, Thai, or Burmese.
• Connectivity Bottlenecks: Delays in infrastructure projects like the Kaladan Multi-Modal Transit Transport Project.
• Underdeveloped transport and trade facilities in Northeast India.

Conclusion and Way Forward

• The road to greater Act East Policy will require infrastructure development, investment, and addressing security issues to ensure mutual growth and progress.
• India’s North-East must play a central role in strengthening ASEAN-India ties, benefiting from the region’s proximity to South East Asia.
• India’s connectivity efforts must address infrastructure gaps and ensure seamless integration for improved trade and interaction.
• As Southeast Asia becomes increasingly vulnerable to climate change and non-traditional security threats, India’s role in regional disaster management, climate diplomacy, and maritime domain awareness is set to grow.
• India should also work to expand its network of strategic partnerships by engaging more proactively with middle powers in the Indo-Pacific.

General Studies Paper -2

Context: The Right to Information (RTI) Act was hailed as a revolutionary step towards transparency and accountability in governance.

• However, over the years, the effectiveness of the RTI Act has been undermined, leading to concerns that it has transformed from a tool for transparency into a ‘right to deny information’.

About the Right to Information (RTI) Act, 2005

• The RTI Act recognized citizens as the rightful owners of government information and aimed to restore the concept of ‘swaraj’ (self-rule).
• It empowers citizens who seek information from public authorities, ensuring transparency and accountability in governance.
• It provides a legal framework for individuals to access information related to government decisions, policies, and operations.

Key Features of the RTI Act

• Right to Access Information: Any citizen of India can request information from a public authority, which is obligated to provide a response within 30 days (or 48 hours in cases concerning life and liberty).
• Applicability: The Act applies to all levels of government—central, state, and local bodies, including government-funded NGOs and institutions.
• Public Information Officers (PIOs): Every government department must appoint PIOs to handle RTI requests and provide information.
• Appeal Mechanism: If an applicant is not satisfied with the response, they can appeal to the First Appellate Authority and then to the Central or State Information Commission.
• Penalties: Officials failing to provide information within the stipulated time or providing incorrect details can be fined up to ₹25,000.

Denial of Information Under RTI

• The RTI Act mandates that government agencies must disclose information unless it falls under specific exemptions listed in Section 8 & Section 9 of the Act. While these exemptions are necessary, they have increasingly been misused to withhold information that should otherwise be made public. These include:
  • National Security & Sovereignty (Section 8(1)(a)): Information that could affect India’s national security, strategic interests, or relations with foreign countries.
  • Personal Data & Privacy (Section 8(1)(j)): Information that invades an individual’s privacy without serving public interest.
  • Parliamentary Privilege & Cabinet Papers (Section 8(1)(i)): Internal deliberations, discussions, and unpublished cabinet papers.
  • Commercial Confidence & Trade Secrets (Section 8(1)(d)): Information that affects competitive business interests.
  • Ongoing Investigations & Law Enforcement (Section 8(1)(h)): Information that could obstruct investigations or trials.

Reality: How RTI Is Denied?

• Vague and Arbitrary Exemptions: Government officials often misuse Section 8 to reject applications without clear justification.
  • Information unrelated to security or trade secrets is still denied under vague excuses.
• Delays & Resistance from Bureaucracy: RTI Act mandates a 30-day response time, but authorities often delay responses indefinitely.
  • Many information commissioners, often retired bureaucrats, were reluctant to empower citizens and viewed their roles as post-retirement sinecures.
  • Some Public Information Officers (PIOs) ignore applications or provide incomplete information.
• Weak Enforcement of Penal Provisions: The RTI Act includes provisions for penalizing officers who deny information.
  • However, many commissioners hesitate to impose penalties, leading to a lack of accountability.
• Misuse of ‘Third Party’ Clause: Authorities reject RTI requests citing third-party confidentiality, even when public interest is involved.
• Amendment Weakening RTI Act (2019): It gave the government power to fix the tenure and salary of the CIC and SICs, reducing their independence.
• Increasing Rejection by the PMO & Key Ministries: Reports suggest that the Prime Minister’s Office (PMO) and other critical ministries have increased RTI rejections in recent years.
• Harassment & Intimidation of RTI Activists: Over 100 RTI activists have been attacked or killed for exposing corruption, discouraging citizens from using RTI.

Case Studies: How Information Is Denied?

• Electoral Bonds & Political Funding: RTI applications seeking details on electoral bonds were denied under national interest, despite concerns over political funding opacity.
• COVID-19 Data: During the pandemic, RTIs requesting details about vaccine procurement, pricing, and expenditure were rejected under commercial confidence.
• Judiciary & RTI: The Supreme Court initially resisted coming under RTI and later selectively disclosed information.
  • The Supreme Court’s 2011 ruling emphasized that Section 8 exemptions should not undermine the right to information, but it also warned against using RTI as a tool for obstruction or intimidation.
• Pegasus Spyware Investigation: RTI requests about the use of Pegasus spyware for surveillance were denied under national security claims.

Way Forward: Strengthening RTI

• Stricter Penalties for Wrongful Denial: Officials who misuse exemptions should face penalties.
• Time-Bound Appeals & Accountability: Cases should be resolved within 60 days to prevent indefinite delays.
• Whistleblower Protection: RTI activists should have legal protection against threats.
• Independent RTI Bodies: Information Commissioners should be free from political control.
• Public Awareness & Digital RTI: More citizens should be trained to file RTIs effectively.

Conclusion

• The transformation of the RTI Act from a tool for transparency to a “right to deny information” is a concerning development.
• To restore the effectiveness of the RTI Act, it is essential to address the challenges of bureaucratic resistance, delays, and weak enforcement.
• Strengthening the RTI mechanism and ensuring timely and accurate responses to information requests will be crucial for promoting transparency and accountability in governance.

General Studies Paper -2

Context: According to a report by advocacy body ‘Access Now’, the number of Internet shutdowns are highest in 2024 globally.

About

• Global trend: 296 Internet shutdowns happened globally in 2024, and India’s cumulative 84 curbs accounted for 28% of these.
• India had the second highest number of Internet shutdowns in 2024; Myanmar had one more disruption than India.
• India’s total shutdowns in 2024 were fewer compared to the previous year.
• Shutdowns affected 16 States and Union Territories in India.
• Most Shutdowns: Manipur (21 shutdowns), Haryana (12), and Jammu & Kashmir (12).
• Reasons for shutdowns: 41 related to protests, 23 due to communal violence.

Legal Provisions Relating to Internet Shutdown

• Grounds: Indian States and Union Territories can impose an internet shutdown only in case of a “public emergency” or in the interest of “public safety”, according to the Indian Telegraph Act.
• However, the law does not define what qualifies as an emergency or safety issue.
• Till the year 2017, shutdowns were imposed largely under Section 144 of the Code of Criminal Procedure (CrPC).
• Section 144 of CrPC gave the police and the District Magistrate the powers in order to prevent unlawful gathering of people and also to direct any person to abstain from a certain activity.
• In 2017, the law was amended and the Government promulgated the Temporary Suspension of Telecom Services (Public Emergency or Public Safety) Rule 2017.
• These rules outline the procedures and conditions under which internet services can be temporarily suspended.
• They require the review of orders by an advisory board within 5 days to ensure the legitimacy of the shutdown.

Arguments in Favour of Internet Shutdown by the Government

• National Security: The government suspend internet services as a temporary and targeted measure to prevent the spread of misinformation, coordinate unlawful activities, or address security threats.
• Temporary and Targeted Measures: These measures are not meant to infringe on long-term access but rather to address specific and immediate concerns.
• Preventing Unrest and Violence: Suspending online communication helps prevent the organization of protests, riots, or other forms of civil unrest.
• Counteracting Fake News and Disinformation: During times of crisis or conflict, false information circulating online can exacerbate tensions and contribute to misinformation.

Arguments Against the Internet Shutdown by the Government

• Impact on Freedom of Expression: Internet shutdowns infringe upon the freedom of expression guaranteed by the Indian Constitution.
• Global Image and Investment: Frequent internet shutdowns impact India’s global image, raising concerns among investors and international partners.
• Human Rights Concerns: Internet shutdowns raise human rights concerns, including the right to access information, freedom of speech, and the right to peaceful assembly.
• Economic Disruptions: India has a rapidly growing digital economy, and internet shutdowns can lead to significant economic losses.
• Educational Challenges: With the increasing use of online platforms for education, internet shutdowns severely affect students’ access to learning resources.
• Lack of Transparency: The government needs to provide clear justifications for such actions and communicate transparently about the duration and reasons for the shutdown.

Conclusion

• In a democracy, governments need to provide a rationale for disrupting the internet services in a periodic manner.
• Indiscriminate shutdowns have high social and economic costs and are often ineffective.
• For better internet governance the Indian civil society needs to push for a transparent and accountable system.

General Studies Paper -2

Context: India-Japan Economy and Investment Forum was held recently.

About

• Concerns Over Trade Surplus: Union Minister Piyush Goyal expressed concerns over Japan’s growing trade surplus with India.
• Stagnant Exports: India’s exports to Japan have remained stagnant for the past 15 years.
  • Many Japanese investments in India source products from countries like Korea, Japan, Taiwan, and China, using India mainly as a market for their goods.
• Rising Japanese Exports: Japanese exports to India have consistently increased, worsening the trade imbalance.
• Focus on Addressing Imbalance: The Union Minister highlighted the need to address this growing disparity in trade between the two countries.
  • He urged Japanese companies to produce goods and services in India that can be exported to Japan, aiming to balance the trade relationship.

Brief on India and Japan Relations

• Historical and Cultural Ties: Both countries share spiritual and cultural traditions, such as the influence of Hinduism on Japan’s Seven Lucky Gods and historical connections like the 752 AD consecration of Lord Buddha’s statue by Indian monk Bodhisena at Todaiji Temple in Japan.
• Establishment of Relations: After WWII, India opted for a separate Peace Treaty with Japan, signed in 1952, marking the start of formal diplomatic relations.
• Strategic Synergy: Both nations align on key regional initiatives, such as India’s Act-East Policy, Indo-Pacific vision (SAGAR), and Japan’s Free and Open Indo-Pacific Vision.
• Trade and Investment: Japan is a key ally in India’s economic growth, with FDI from Japan exceeding $43 billion from 2000 to 2024, making it India’s fifth-largest source of foreign investment.
  • In 2023-24, the country’s export to Japan was $5.15 billion and imports were $17.7 billion. The trade gap was $12.55 billion.
• Collaboration on Global Initiatives: Japan and India cooperate in initiatives like the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), and Leadership Group for Industry Transition (LeadIT).
  • Both countries work together in multilateral frameworks like the Japan-Australia-India-U.S. Quad and the India-Japan-Australia Supply Chain Resilience Initiative (SCRI).
• Integral Defense Partnership: India-Japan defense cooperation is a key pillar of bilateral ties, focused on Indo-Pacific peace, security, and stability.
  • Key Agreements:
    • Joint Declaration on Security Cooperation (2008).
    • Memorandum of Defense Cooperation (2014).
    • Agreements on Defense Equipment & Technology (2015) and Protection of Classified Military Information (2015).
    • Reciprocal Provision of Supplies and Services Agreement (2020).
  • Exercises and Joint Activities: Maritime Exercise Malabar.
    • First Bilateral Fighter Exercise, Veer Guardian, in Japan (2023).
    • First-ever Army-to-Army Exercise Dharma Guardian held in Japan ( 2023).
    • Exercise Shinnyu Maitri between IAF and JASDF.
    • JIMEX joint Naval Exercise between two nations.
• Connectivity Projects in India: The first High Speed Rail (HSR) corridor is being implemented from Mumbai to Ahmedabad with technical and financial assistance from Japan.
• Presently, six Metro Rail projects (Ahmedabad, Bangalore, Chennai, Delhi, Kolkata, Mumbai) are being implemented with technical and financial support from Japan.
• Space Collaboration: ISRO and JAXA collaborate in X-ray astronomy, satellite navigation, lunar exploration, and the Asia Pacific Regional Space Agency Forum (APRSAF).
• In 2016, they signed a Memorandum of Cooperation (MoC) for peaceful space exploration and use.

Challenges

• Trade Imbalance: There is a significant trade imbalance, with Japan exporting more to India than India exports to Japan, creating a need for better reciprocal trade.
• Geopolitical Tensions: Regional security issues, such as China’s influence in the Indo-Pacific, pose challenges for India-Japan relations, requiring careful diplomatic balancing.
• Cultural and Language Barriers: Despite strong ties, differences in language, culture, and business practices pose challenges to deeper integration.
• Limited People-to-People Exchanges: The scale of people-to-people interactions is still limited, impacting deeper mutual understanding.
• Infrastructure Constraints: Despite improvements, some areas in India still lack the infrastructure necessary to support large-scale Japanese investments effectively.
• Different Economic Priorities: India’s focus on rapid economic growth may sometimes contrast with Japan’s emphasis on sustainable development and technology.

Way Ahead

• Enhance Trade and Investment: Focus on reducing the trade imbalance by increasing Indian exports to Japan and encouraging Japanese investment in India’s manufacturing and technology sectors.
• Boost People-to-People Connections: Increase cultural exchanges, tourism, and educational collaborations to deepen mutual understanding.
• Technology and Innovation Partnership: Leverage Japan’s expertise in technology and India’s growing digital sector to collaborate in AI, robotics, renewable energy, and space exploration.
• Address Environmental Concerns: Increase cooperation on environmental sustainability, climate change, and disaster resilience to support both countries’ green energy goals.

General Studies Paper -2

Context: The Centre has withheld funds to Tamil Nadu under the Samagra Shiksha scheme due to the state’s refusal to implement the National Education Policy (NEP) 2020) and its three-language formula.

• Tamil Nadu follows a two-language policy (Tamil and English) and has consistently opposed the introduction of Hindi, viewing it as a threat to its linguistic identity.

What is the Three Language Formula?

• NEP 1968 made Hindi compulsory across the nation, with specific language requirements for states.
  • Hindi-speaking states were to teach Hindi, English, and a modern Indian language (preferably a South Indian language).
  • Non-Hindi-speaking states were expected to teach local language, Hindi, and English.
• NEP 2020 retains the three-language formula, introduced in the NEP of 1968.
  • States, regions, and students can choose the three languages, as long as at least two are native to India.
  • In addition to the state language, children must learn one other Indian language (not necessarily Hindi).
  • Emphasizes bilingual teaching, focusing on the home language/mother tongue and English.
  • Sanskrit is given special emphasis as an optional choice in the three-language formula.

Significance of the Three-Language Formula

• Enhances Multilingual Proficiency: Encourages students to learn multiple languages, improving cognitive skills and communication.
• National Integration and Cultural Exchange: Helps bridge the north-south linguistic divide by promoting Hindi in non-Hindi states and regional languages in Hindi-speaking states.
• Increased Employment and Mobility Opportunities: Knowledge of multiple languages expands career prospects and makes migration for jobs and higher education easier across different states.
• Strengthens Regional Languages: Ensure that regional languages continue to be actively used and preserved.

What are the Concerns?

• Perceived Imposition of Hindi: Non-Hindi-speaking states, especially Tamil Nadu, West Bengal, and Karnataka, oppose it as an attempt to impose Hindi.
• Practical Implementation Challenges: Many schools lack qualified teachers for teaching additional languages.
• Burden on Students: Learning an additional language may increase the academic load, particularly for students who struggle with language acquisition.
• Potential Neglect of Foreign Languages: Some argue that instead of a third Indian language, students should be encouraged to learn global languages like French, German, or Mandarin to improve international opportunities.

Way Ahead

• Constructive dialogue and a practical compromise between the Centre and State is the way forward.
• Education was transferred to the concurrent list during the Emergency, making it a shared responsibility.
• Disagreements over the third language should not hinder funding for Samagra Shiksha, a key education program.

General Studies Paper -2

Context: The External Affairs Minister of India emphasized that India and China worked hard to preserve the G-20 as an institution amid global polarization.

About

• India and China discussed bilateral developments, particularly the situation on the Line of Actual Control (LAC).
• The two leaders reviewed bilateral relations, discussing the resumption of the Kailash Mansarovar pilgrimage, trans-border river talks, flight connectivity, and facilitating travel.

Inception of the G20

• It was founded in 1999 after the Asian financial crisis (1997-1998) as an informal forum for Finance Ministers and Central Bank Governors.
• Initially focused on macroeconomic issues, but has expanded to include trade, climate change, health, agriculture, energy, and anti-corruption.
• Membership: Comprises 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, UK, and US.
• Also includes two regional bodies: the European Union (EU) and African Union (AU).
• Presidency: The G20 does not have a permanent secretariat.
• The G20 Presidency rotates annually, and each country within a regional group takes a turn hosting the Presidency.

Role of India in G20

• The G20 Leaders’ Summit in 2023, showcased India’s capacity as G20 president to create a platform for global discussions and reach a consensus through the Leaders’ Declaration.
• India placed inclusivity at the forefront, ensuring public concerns were heard through 11 Engagement Groups representing diverse segments like youth, women, private sector, and civil society.
• India’s G20 presidency advocated for Sustainable Development Goal 1 (SDG 1) – “no poverty” – aligning with global development goals.
• India represents the Global South in G20, advocating for developing nations and addressing their challenges.

Importance

• India’s economic strength and diverse representation enable it to contribute to policies benefiting emerging economies.
• The G20 forum helps India attract foreign investments,spurring job creation, technological advancement, and infrastructure development.
• India’s G20 leadership reflects its commitment to inclusivity and economic strength, aiming for tangible outcomes like increased investments, job opportunities, income growth, and poverty reduction.

Challenges

• India faces challenges in navigating relations between major powers like the US, China, and Russia.
• India’s rapid industrialization and development pose challenges in balancing economic growth with climate goals.
• The divide between developed and developing countries remains a challenge.

Conclusion and Way Forward

• India’s G20 participation elevates its global profile and strengthens its leadership in international affairs.
• Despite challenges, India’s G20 role offers significant opportunities to drive global change, promote growth, and represent developing nations.
• India’s global ascent, under G20 leadership, extends benefits to ordinary citizens, farmers, factory workers, and the urban middle class, ensuring equitable global prosperity.

General Studies Paper -3

Context

• Recently, the Enforcement Directorate (ED) has issued an adjudication order imposing a penalty of over ₹3.44 crore on BBC World Service India (BBC WS India) for alleged violations of the Foreign Exchange Management Act (FEMA) of 1999.
• BBC WS India, classified as a 100% Foreign Direct Investment (FDI) company, was found to be in violation of Indian regulations that mandate a cap of 26% FDI for digital media entities under the government approval route.

About the Foreign Exchange Management Act (FEMA), 1999

• It was enacted to replace the Foreign Exchange Regulation Act (FERA), 1973, which was considered too restrictive.
• It was enacted in response to India’s economic liberalization in the 1990s and aimed to ensure compliance with global financial norms, and to facilitate external trade and payments while ensuring the orderly development and maintenance of the foreign exchange market in India.
• The Reserve Bank of India (RBI) and the Enforcement Directorate (ED) are the primary regulators enforcing FEMA.

Key Provisions of FEMA

• Current and Capital Account Transactions: While current account transactions (trade, remittances, etc.) are generally allowed, capital account transactions (investment in foreign assets, debt instruments, etc.) require RBI approval.
• Regulation of Foreign Exchange Holdings: FEMA permits Indian residents to hold foreign exchange within specified limits but prohibits unauthorized dealings.
• Restrictions on Foreign Direct Investment (FDI): FEMA governs the inflow and outflow of FDI in India through RBI and government policies.
• Penalties for Non-Compliance: Violators face monetary fines, asset seizures, and, in severe cases, criminal action under the Prevention of Money Laundering Act (PMLA).

Penalties for Violations

• FEMA is a civil law, meaning violations result in monetary penalties, not criminal charges.
• The ED can impose penalties up to three times the amount involved in the violation.
• Compounding of Offenses: FEMA violations can be settled through a compounding process under RBI’s supervision, avoiding prolonged litigation.

Common Violations and Misuse of FEMA

• Hawala Transactions: Hawala is an illegal remittance system used to transfer money outside the formal banking network, violating FEMA provisions.
• Round-Tripping: It involves sending funds abroad and bringing them back as FDI to take advantage of tax benefits and hide the source of income.
  • It is particularly common in tax havens like Mauritius, the Cayman Islands, and Singapore.
• Unauthorized Foreign Remittances: Many businesses and individuals violate FEMA by remitting funds abroad without RBI permission.
  • For instance, some companies invest in offshore entities without reporting to the authorities, leading to foreign exchange loss for India.
• Money Laundering Through Shell Companies: Shell companies are used to disguise illegal foreign investments.
  • FEMA violations often involve creating bogus companies abroad, routing illicit funds, and repatriating them under the guise of legitimate transactions.
• Crypto-Related Violations: With the rise of cryptocurrency, many individuals and entities use digital assets to transfer funds outside India without RBI approval, violating FEMA norms.
• Violation of Liberalized Remittance Scheme (LRS): An Indian resident can remit up to $250,000 per financial year for permissible foreign transactions under LRS.
• However, many individuals misuse LRS by exceeding limits or using funds for speculative trading in foreign stock markets without proper declarations.

Challenges in Enforcing FEMA

• Difficulty in Tracking Offshore Transactions: Many violations involve complex money flows through multiple offshore accounts, making it difficult for Indian regulators to track illicit activities.
• Limited Coordination Between Agencies: While FEMA is regulated by RBI and ED, coordination with tax authorities, SEBI, and other regulatory bodies remains a challenge.
  • Multiple agencies like RBI, SEBI, and CBI also regulate forex violations, leading to bureaucratic hurdles.
• Use of New-Age Financial Instruments: The rise of digital banking, cryptocurrencies, and fintech startups has created new avenues for FEMA violations that traditional enforcement mechanisms struggle to address.
• Globalization and Tax Havens: India’s high net-worth individuals (HNIs) and corporates often use tax havens to evade FEMA regulations, requiring stronger global cooperation to tackle violations.

Recommended Reforms

• Stricter Penalties: Higher financial penalties and stringent criminal actions against offenders can deter future violations.
• Better Surveillance Mechanisms: AI and big data analytics can be used to track suspicious foreign transactions.
• Stronger International Cooperation: India should enhance collaboration with global financial regulators to track money laundering.
• Regulation of Cryptocurrencies: Clear guidelines and regulations are needed to prevent crypto-related FEMA violations.

General Studies Paper -2

Context: India and China, two of the world’s most populous and influential nations, share a complex and multifaceted relationship. Over the years, their interactions have been marked by cooperation, competition, and conflict.

India-China Relation: Historical Background

• After India’s Independence: India was among the first countries to recognize the People’s Republic of China in 1950, formally establishing diplomatic ties on April 1, 1950.
  • It was exemplified by the Panchsheel Agreement (1954), which laid the foundation for peaceful coexistence, and slogan ‘Hindi-Chini Bhai-Bhai’ (Indians and Chinese are brothers) symbolized the early optimism.
  • However, tensions emerged over territorial disputes, particularly in Aksai Chin and Arunachal Pradesh (Sino-Indian War of 1962).
• Cold War and Strategic Divergences (1962–1990s): China aligned itself with Pakistan and the United States, while India deepened ties with the Soviet Union.
  • Border skirmishes continued, most notably in 1967 (Nathu La and Cho La clashes) and 1987 (Sumdorong Chu Standoff).
  • India established a Joint Working Group on the boundary issue and paved the way for improved diplomatic engagement in 1988 after Prime Minister Rajiv Gandhi’s visit to China.
• Era of Engagement and Economic Cooperation (1990s–2010s):
  • 1993 & 1996: Agreements on the Maintenance of Peace and Tranquility and Confidence-Building Measures along the Line of Actual Control (LAC).
  • 2005: Political Parameters and Guiding Principles for Border Settlements; Strategic and Cooperative Partnership
• Trade relations flourished, with China becoming India’s largest trading partner. Economic engagement peaked with initiatives like the BRICS alliance and participation in regional forums such as the Shanghai Cooperation Organization (SCO).
• Rising Tensions and Border Confrontations (2010s–Present):
  • 2013: Depsang standoff, and Border Defence Co-operation Agreement;
  • 2014: Chumar incident during President Xi Jinping’s visit to India.
  • 2017: Doklam standoff, where Indian and Chinese troops faced off for 73 days.
  • 2020: Galwan Valley clash, the deadliest confrontation in decades, leading to casualties on both sides. Military tensions remain high along the LAC, despite multiple rounds of talks.

Current Dynamics: Key Areas of Conflict

• Economic Ties: Despite tensions, bilateral trade remains significant, with China being India’s largest source of imports(bilateral trade crossed $125 billion in 2024, with 1.9% year-on-year growth).
  • However, the trade imbalance remains a concern for India.
  • India has imposed restrictions on Chinese investments and apps due to security concerns.
• Geopolitical Rivalry: Competition in the Indo-Pacific, China’s ties with Pakistan, expansion in the Indian Ocean, and Belt and Road Initiative (BRI) challenge India’s strategic interests.
• Border Disputes: The LAC remains a flashpoint, with frequent skirmishes and military build-ups. Ongoing tensions in Ladakh, Arunachal Pradesh, and Sikkim.
  • Efforts to resolve the border issue through diplomatic and military channels continue, but progress has been slow, and border tensions persist.

Pathways for the Future

• Economic Diversification: Both countries can benefit from deeper engagement in sectors such as renewable energy, digital technology, and infrastructure development.
  • India must reduce dependency on Chinese imports while promoting domestic industries.
  • Trade agreements addressing the imbalance can foster stronger economic bonds.
• Military Preparedness: Strengthening border infrastructure and strategic partnerships with allies.
  • Sustained military and diplomatic talks are crucial for preventing conflicts.
  • Confidence-building measures (CBMs) along the border can enhance trust.
  • Working Mechanism for Consultation & Coordination (WMCC) and Corps Commander-level talks have been key platforms for negotiations.
• Regional and Global Cooperation: Climate change, trade, and counter-terrorism offer potential areas of collaboration.
  • Regular summits and diplomatic dialogues are crucial.
• Cultural and Educational Exchanges: Encouraging student exchanges, tourism, and academic collaboration can improve people-to-people relations.

Conclusion

• India-China relations remain complex, marked by both cooperation and conflict. While economic ties provide a foundation for engagement, border tensions and strategic competition continue to shape the trajectory of their relationship.
• Managing this relationship requires careful diplomacy, strategic foresight, and pragmatic decision-making.

General Studies Paper -2

Context: The Supreme Court stayed a Lokpal order bringing High Court judges under its jurisdiction terming the interpretation “very disturbing”.

About

• Suo Motu Cognisance: Supreme Court’s Special Bench took suo motu cognisance of the Lokpal’s recent order, which impacted judicial independence.
  • Lokpal’s order declared High Court judges as ‘public servants’ under the Lokpal and Lokayuktas Act of 2013, allowing its jurisdiction over them.
• Lokpal’s Argument: Lokpal’s argument stemmed from High Courts being established by pre-constitutional British Acts, whereas the Supreme Court was formed by the Constitution.
• Exclusion of Supreme Court Judges: Earlier, on January 3, Lokpal had ruled that it had no authority over Supreme Court judges.
• Lokpal’s Jurisdiction: The Lokpal based its decision on Section 14(1) of the 2013 Act, which includes judges of High Courts created by Acts of Parliament.
• Supreme Court’s Stance: The Court emphasized that all judges are appointed under the Constitution, underscoring judicial independence.

Lokpal and Lokayuktas

• The Lokpal and Lokayuktas Act, 2013 came into effect in 2014.
• Purpose: Establish Lokpal at the Centre and Lokayuktas in states for investigating corruption in public servants.
• Concept: The concept was inspired by the Scandinavian Countries Ombudsman system.
• The first Lokayukta was constituted in Maharashtra in 1971.
• Appointment Process: Members of Lokpal (and Lokayuktas) appointed by the President (Governor), based on recommendations from a Selection Committee.
• Selection Committee: Includes the PM (CM), Speaker of the Lower House, Leaders of Opposition, CJI (or a nominated judge), and an eminent jurist nominated by the President.
• Composition of Lokpal: One Chairperson (CJI/former SC judge/qualified non-judicial member), with up to 8 members.
• 50% judicial members, and the non-judicial members need 25 years’ experience in relevant fields.
• Removal of Members: Members can be removed by the President after an inquiry by the Supreme Court, which may be initiated based on the President’s reference, a citizen’s petition, or a petition signed by 100 MPs.
• Jurisdiction of Lokpal: Can inquire into offences under the Prevention of Corruption Act, 1988, committed by the PM (with safeguards), Union Ministers, MPs, officers (Group A-D), and certain private entities.
• PM’s Inquiry: Inquiry against the PM must be in-camera, approved by a 2/3 majority of the Lokpal, and cannot involve certain sensitive areas like national security.
  • The PM cannot be investigated related to international relations, external and internal security, public order, atomic energy and space.
• Inquiry and Investigation: Lokpal’s inquiry wing must act within 60 days, and investigations to be completed within 6 months.
• Jurisdiction of Lokayuktas: Covers the CM, Ministers, MLAs, state government employees, and certain private entities (including religious institutions).
• Penalties: Penalizes false complaints with imprisonment up to 1 year and a fine of up to ₹1 lakh.
  • Increases penalties for public servants committing corruption (from 5 to 7 years) and criminal misconduct (from 7 to 10 years).

Challenges

• Limited Jurisdiction: The jurisdiction is often limited to certain categories of public servants or specific areas of governance, which restrict their ability to address all forms of corruption comprehensively.
• Lack of Independence: They often face political interference or pressure from the government, which hinder their autonomy.
• Whistleblower Protection: Whistleblowers and complainants who report corruption may face threats, harassment, or retaliation, which discourages them from coming forward with information.
• Political Will: Ultimately, the effectiveness depends on the political will of the government to combat corruption and strengthen accountability mechanisms.

Way Ahead

• Over the years, there have been calls for strengthening Lokpal and Lokayukts and expanding their jurisdiction to cover more public officials and institutions.
• By implementing the required measures, India can significantly enhance the effectiveness and credibility of Lokpal and Lokayuktas in combating corruption and promoting good governance.

General Studies Paper -3

Context: The recent political instability in Myanmar, coupled with the influx of refugees into India, particularly the border regions with Myanmar, has strained the already fragile border management and security infrastructure.

About India-Myanmar Border

• The India-Myanmar border shares 1643 kms and passes through the States of Arunachal Pradesh (520 km), Nagaland (215 km), Manipur (398 km), and Mizoram (510 km).
• These have historically been porous, allowing free movement of people under the Free Movement Regime (FMR).
• However, border regions of Manipur (sharing a border with Myanmar’s Chin state), have long been a site of ethnic tensions, insurgency, and geopolitical complexities.

Geopolitical Context

• Myanmar’s Political Crisis: Since the military coup in Myanmar in 2021, the country has been engulfed in widespread conflict.
  • The Tatmadaw (Myanmar’s military) has cracked down on pro-democracy activists, ethnic rebel groups, and civilian resistance movements, leading to a surge in violence, particularly in Myanmar’s northwestern states of Chin, Sagaing, and Kachin.
• Free Movement Regime (FMR): It allows people residing within 16 km on either side of the border to cross without a visa for up to 14 days, and was designed to facilitate traditional and cultural exchanges.
  • However, in recent years, concerns over illegal migration, drug trafficking, and insurgency have led to debates about its continuation.

Ethnic Unrest in Manipur and Its Myanmar Connection

• Manipur’s Ongoing Ethnic Violence: Manipur has witnessed a significant influx of refugees fleeing military persecution.
  • Many of these refugees share ethnic ties with indigenous tribes in Manipur and Mizoram, particularly the Kuki-Zo community (from Chin hills of Myanmar), deepening regional ethnic tensions.
• Insurgency Factor: Several insurgent groups, including the United National Liberation Front (UNLF), People’s Liberation Army (PLA), and Kuki National Organization (KNO), have historically operated along the porous border, often using Myanmar as a sanctuary.
  • Additionally, Myanmar’s own rebel groups, such as the Chin National Army (CNA), share ties with Kuki-Zo factions in Manipur, creating complex security challenges for India.

Security Implications for India

• Refugee Influx and Humanitarian Concerns: States like Mizoram and Manipur have witnessed an influx of refugees, prompting calls for a structured refugee policy.
  • India has been cautious in dealing with Myanmar refugees, as it is not a signatory to the Refugee Convention (1951).
• Cross-Border Insurgency and Smuggling: The region has become a conduit for the Golden Triangle’s drug trade, particularly heroin and methamphetamine.
  • Intelligence reports have linked insurgent groups with cross-border criminal networks, necessitating stricter border monitoring.
• Strategic and Diplomatic Concerns: India has maintained a cautious approach, prioritizing stability along its northeastern borders, and growing Chinese influence in Myanmar has added to its strategic concerns.
  • For India, it presents a dual challenge — ensuring border security while preventing the region from becoming a breeding ground for external influences, including China, which has growing stakes in Myanmar.

Economic and Social Implications

• The establishment of Border Haats and other economic activities aimed at promoting cross-border trade and livelihoods have been disrupted.
• The humanitarian crisis in Manipur has led to gaps in documenting humanitarian needs and providing adequate relief to affected populations.

Policy Considerations and the Way Forward

• Reassessing the Free Movement Regime (FMR): While completely scrapping the FMR could disrupt traditional ties, a more regulated framework with biometric tracking and controlled entry points could help mitigate security risks.
• Border Fencing and Security Operations: To curb illegal migration and insurgent activities, India has accelerated border fencing efforts.
  • The deployment of Assam Rifles and paramilitary forces has also been strengthened.
• Stronger Counterinsurgency Operations: Enhanced intelligence-sharing and joint military operations with Myanmar’s authorities could help curb cross-border insurgent activities.
• Humanitarian Dilemmas: India faces the challenge of balancing security with humanitarian responsibilities. The Mizoram government, for instance, has provided aid to Myanmar refugees, while Manipur has adopted a stricter stance.
  • India must develop a clear refugee policy to balance security concerns with humanitarian obligations, particularly for ethnic communities with historical ties to Indian states.
• Diplomatic Engagement with Myanmar: India continues to engage with both Myanmar’s military regime and ethnic insurgent groups to ensure security cooperation.
  • The Kaladan Multi-Modal Transit Transport Project, which connects India’s Northeast to Myanmar’s Rakhine state, remains a crucial element of India’s Act East Policy.

Conclusion

• The Myanmar-Manipur border represents a complex web of ethnic, security, and geopolitical challenges. India’s response needs a careful balancing act—enhancing security without alienating border communities and maintaining strategic engagement with Myanmar while upholding democratic values.
• The evolving situation demands a nuanced approach that combines diplomacy, security, and socio-political reconciliation to prevent further instability in this sensitive frontier.