ANTI-DEFECTION LAW
2. About anti-defection law
The anti-defection law in India refers to the provisions laid down in the Tenth Schedule of the Constitution of India, which was inserted by the 52nd Amendment Act of 1985. The primary purpose of the anti-defection law is to curb "political defections" by legislators for personal gains or due to extraneous considerations, thereby promoting stability and integrity in the political system.
Key features and purposes of the anti-defection law include
- The law provides for the disqualification of elected legislators if they voluntarily give up the membership of their political party or disobey the directives issued by their party leadership on voting in legislative matters.
- By penalizing defections, the law aims to preserve stability and discipline within political parties. It discourages legislators from switching parties solely for opportunistic reasons, thereby promoting a more principled approach to politics.
- Preventing defections helps in maintaining stable governments by reducing the likelihood of frequent changes in government formation due to opportunistic alliances or individual defections. This stability is essential for effective governance and policy implementation.
- The law seeks to protect the mandate given by voters to a particular political party during elections. Defections can undermine the trust placed by voters in a party's policies and candidates, and the anti-defection law aims to safeguard the integrity of the electoral process.
- By discouraging defections and ensuring that legislators adhere to the party's stance on legislative matters, the law contributes to the smooth functioning of legislatures. It reduces disruptions caused by political uncertainties and promotes a more focused approach to lawmaking and governance.
- The anti-defection law upholds democratic principles by emphasizing the importance of party discipline and accountability. It encourages elected representatives to remain committed to the party's ideology and manifesto, thereby fostering a more transparent and accountable political system.
3. Has the anti-defection law ensured the stability of governments?
The effectiveness of the anti-defection law in ensuring the stability of governments in India is a subject of debate. While the law has certainly had some impact on curbing defections and promoting party discipline, its efficacy in maintaining government stability is not absolute.
Several factors contribute to this nuanced perspective
- The anti-defection law has succeeded in reducing blatant opportunistic defections where legislators switch parties solely for personal gains or political expediency. This has helped in preventing frequent changes in government formation and instability arising from such defections.
- In a multi-party democracy like India, coalition governments are common, and the anti-defection law has played a role in preserving these coalitions by deterring individual legislators from defecting and causing the collapse of the government.
- By discouraging defections and ensuring party discipline, the law has contributed to the smooth functioning of legislatures, which is essential for passing legislation and conducting parliamentary business. This has indirectly supported government stability by facilitating the enactment of policies and laws.
- Despite its provisions, the anti-defection law has faced challenges and criticisms. Some critics argue that the law has not entirely prevented defections, as legislators often find loopholes or exploit exceptions in the law to switch parties without facing disqualification.
- Government stability is influenced by various factors beyond the anti-defection law, including political dynamics, coalition dynamics, public opinion, and socio-economic factors. The law alone cannot guarantee government stability in the face of broader political uncertainties and challenges.
- While promoting stability, the anti-defection law has also raised concerns about its impact on democratic values such as freedom of speech and dissent within political parties. Critics argue that the law may stifle legitimate dissent and independent decision-making among legislators.
4. What constitutes defection? Who is the deciding authority?
Defection refers to the act of an elected representative or member of a political party abandoning their original party affiliation and joining another political party or forming a separate group, either independently or in association with others, without following the procedures laid down by their party or the law.
In the context of the anti-defection law in India, defection is specifically defined as:
- If a member of a political party voluntarily gives up their membership of that party.
- If an elected member votes or abstains from voting against the directives issued by their party leadership (whip) on a particular legislative matter, without obtaining prior permission.
- If a member of a political party joins another political party after being elected as a representative.
- If a member of a political party forms or joins a new group or political party, and such group consists of at least one-third of the members of the original political party in the legislature.
The deciding authority regarding defection cases is typically the Speaker or Chairman of the concerned legislative body (e.g., Lok Sabha, Rajya Sabha, State Legislative Assembly, or State Legislative Council). Upon receiving a complaint or petition regarding a defection case, the Speaker or Chairman examines the matter and makes a decision based on the provisions of the anti-defection law.
The Speaker or Chairman is responsible for determining whether the actions of the member(s) constitute defection as per the law and, if so, for issuing appropriate orders, including disqualification of the defectors from membership of the legislature. The decision of the Speaker or Chairman can be challenged in the courts through legal recourse if it is perceived to be arbitrary or in violation of constitutional principles.
5. Kihoto Hollohan case (1993)
The Kihoto Hollohan vs. Zachillhu and Others case, decided by the Supreme Court of India in 1992, is a landmark case related to defection and the role of the Speaker in Indian politics.
- The Tenth Schedule of the Indian Constitution, introduced through the 52nd Amendment in 1985, laid down provisions to curb defection by elected representatives. This case challenged the constitutionality of the Tenth Schedule, particularly the broad powers it granted to the Speaker in deciding defection cases.
- The petitioners argued that giving the Speaker such extensive power violated the doctrine of basic structure and potentially infringed on the freedom of speech, dissent, and conscience of elected representatives.
- The Supreme Court, in a majority judgment, upheld the Tenth Schedule and the Speaker's broad powers. The court reasoned that:
- The Speaker occupies a crucial position in the parliamentary system and is expected to handle sensitive matters.
- Granting the Speaker broad discretion is necessary for the efficient and effective functioning of the anti-defection law.
- The court acknowledged the potential for bias but believed it was minimized by the Speaker's constitutional position and the requirement to act in good faith.
Significance: The Kihoto Hollohan case remains a pivotal judgment shaping Indian politics. It
- Established the Speaker's authority in deciding defection cases.
- affirmed the constitutionality of the anti-defection law.
- However, the case also sparked discussions about the balance between stability and individual rights in the context of defection. It continues to be debated whether the broad powers granted to the Speaker are truly necessary or pose a risk to democratic principles.
6. SR Bommai case (1994)
The SR Bommai case, officially known as S.R. Bommai vs. Union of India, is a landmark judgment delivered by the Supreme Court of India in 1994. This case dealt with issues related to the dismissal of state governments under Article 356 of the Constitution of India, popularly known as the President's Rule.
The case was prompted by the dismissal of the government in the state of Karnataka in 1989 under Article 356 by the then-central government led by Prime Minister Rajiv Gandhi. This dismissal led to legal challenges, including petitions filed by S.R. Bommai, who was the Chief Minister of Karnataka at the time of dismissal.
Key Issues
- Whether the decision of the President to impose President's Rule in a state under Article 356 was immune from judicial review.
- Whether the power of the President to dismiss a state government was absolute or whether there were limitations on this power.
- Whether there were grounds for judicial intervention in cases of misuse or abuse of Article 356 by the Central government.
Key Judgments
- The Supreme Court held that the imposition of the President's Rule in a state is subject to judicial review. The Court ruled that the exercise of power under Article 356 is justiciable, and the President's satisfaction with imposing the President's Rule can be questioned in a court of law.
- The Court laid down guidelines and limitations on the exercise of power under Article 356. It held that the President's Rule can only be imposed in exceptional circumstances where the constitutional machinery in a state has completely broken down, and the Governor's report justifying the imposition of the President's Rule must be based on relevant material.
- The Court ruled that a floor test in the legislative assembly is the most effective way to determine the strength of the government and resolve political uncertainties. It held that the majority enjoyed by a government in the assembly should be tested on the floor of the House.
Significance: The SR Bommai case is significant as it established judicial guidelines and limitations on the use of Article 356 and provided clarity on the scope of judicial review in matters related to the dismissal of state governments. It reinforced the principles of federalism and democracy by limiting the Central government's power to dismiss state governments arbitrarily and ensuring accountability in the exercise of such powers.
7. The 52nd Amendment Act of 1985 and the 10th Schedule of the Constitution
The 52nd Amendment Act of 1985 was a significant amendment to the Constitution of India. It introduced the Tenth Schedule to the Constitution, commonly known as the anti-defection law. The primary objective of this amendment was to curb the practice of political defections by legislators, which often led to instability in governments and undermined the democratic process.
Key provisions of the 52nd Amendment Act and the Tenth Schedule include
- The Tenth Schedule defines defection and provides criteria for disqualification of legislators who defect from their political party.
- Legislators can be disqualified if they voluntarily give up their party membership or violate the directives issued by their party leadership on voting in legislative matters.
- The Tenth Schedule empowers the Speaker or Chairman of the legislative body to decide on defection cases. The decision of the Speaker or Chairman regarding disqualification is final and cannot be questioned in a court of law except on certain grounds such as mala fide or violation of principles of natural justice.
- The Tenth Schedule provides certain exceptions to disqualification, such as when a political party merges with another party, and two-thirds of its members agree to the merger.
- While the decision of the Speaker or Chairman is generally final, it is subject to judicial review on certain grounds, such as violation of constitutional provisions or principles of natural justice.
The 52nd Amendment Act and the Tenth Schedule were introduced to promote stability and integrity in the political system by discouraging defections and preserving party discipline. However, over the years, there have been debates and discussions about the effectiveness of the anti-defection law and its impact on democratic principles such as freedom of speech and dissent within political parties. Nevertheless, the introduction of the Tenth Schedule remains a significant milestone in the constitutional history of India aimed at strengthening the democratic framework of the country.
8. 91st Amendment Act of 2003
The 91st Amendment Act of 2003 is an important amendment to the Constitution of India. This amendment introduced changes to Article 75 and Article 164, which deal with the appointment of Ministers in the Union Council of Ministers and State Council of Ministers, respectively. The primary objective of the 91st Amendment Act was to prevent the practice of "office of profit" by Members of Parliament (MPs) and Members of the State Legislature (MLAs).
Key provisions of the 91st Amendment Act include
- The amendment clarified the definition of "office of profit" held by MPs and MLAs. An office of profit refers to any position held by a person which brings them some financial gain, advantage, or benefit.
- The amendment exempted certain offices from being considered as offices of profit. These include offices held by MPs or MLAs as Ministers, or positions that the Parliament or State Legislature has specifically declared as not being offices of profit.
- The amendment specified that a person shall be disqualified from being a member of Parliament or State Legislature if they hold any office of profit under the Government of India or the Government of any state, other than offices exempted by law.
- The amendment allowed for the Parliament or State Legislature to make laws specifying the offices that are exempted from disqualification. It also provided for the interpretation of the term "office of profit" by the Parliament or State Legislature.
The 91st Amendment Act aimed to ensure that legislators do not hold positions that could potentially compromise their independence and impartiality in discharging their duties as elected representatives. By preventing MPs and MLAs from holding offices of profit, the amendment sought to uphold the principles of transparency, accountability, and integrity in the functioning of the legislative bodies in India.
8.1. What is that ‘exception’?
- The exception mentioned in the context of the 91st Amendment Act of 2003 refers to certain offices that are exempted from being considered as "office of profit" and, therefore, do not lead to disqualification of MPs or MLAs holding such positions.
- The amendment provides that certain offices can be specifically exempted by law from being considered as offices of profit. This means that the Parliament or State Legislature can pass laws to declare certain positions or offices as not falling under the definition of office of profit, thereby allowing MPs or MLAs to hold these positions without facing disqualification.
- The purpose of this exception is to provide clarity and flexibility in determining which positions should be considered as offices of profit and which should be exempted. It allows for a case-by-case examination of positions held by legislators to ensure that they do not hold any office that could potentially compromise their independence or impartiality in discharging their duties as elected representatives.
- Examples of offices that may be exempted from being considered as offices of profit include positions held by legislators as Ministers or positions that are honorary or ceremonial, without any substantial remuneration or executive authority attached to them. However, the specific exemptions may vary depending on the laws passed by the Parliament or State Legislature.
9. The Way Forward
The anti-defection law remains a significant milestone in India's constitutional history, aimed at strengthening democratic principles and promoting a more transparent and accountable political system. There is a need to review and strengthen the implementation of the law, enhance transparency in defection cases, promote intra-party democracy, and encourage public awareness to uphold the integrity of the electoral process and ensure the stability of governments.
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For Prelims: Anti-Defection Law, 91st Amendment Act of 2003, 52nd Amendment Act of 1985, the 10th Schedule of the Constitution, Kihoto Hollohan case, SR Bommai case, Article 356 For Mains:
1. Discuss the significance of the anti-defection law in India's political landscape, highlighting its objectives and key features. Also, analyze the effectiveness of the law in curbing political defections and promoting stability within political parties. (250 Words)
2. Discuss the significance of intra-party democracy in strengthening the anti-defection law and promoting a more accountable political system in India. Highlight the importance of transparency and public awareness in upholding the integrity of the electoral process. (250 Words)
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Previous Year Questions
1. Regarding anti-defection law in India, consider the following statements: (UPSC 2022)
1. The law specifies that a nominated legislator cannot join any political party within six months of being appointed to the House.
2. The law does not provide any time frame within which the presiding officer has to decide a defection case.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
2. Consider the following statements in respect of Anti-defection Law in India? (OPSC OAS 2022)
(i) Political Parties got Constitutional recognition by the 52nd Constitutional Amendment.
(ii) Anti-defection Law came into effect on March 18, 1985.
(iii) The decision of the Speaker in disqualifying an elected member is subject to judicial review.
(iv) Anti-defection law comes into action if there is a split in the Political Party.
Which of the above statement/s is/are correct?
A. (ii), (iii) and (iv) B. (i), (iii) and (iv) C. (i), (ii) and (iii) D. (i), (ii) and (iv)
3. Which one of the following Schedules of the Constitution of India contains provisions regarding anti-defection? (UPSC 2014) (a) Second Schedule 4. The 91st Amendment Act (2003), was made so that the Council of Ministers shall not exceed ___ percent of total number of members of the House of the People (or Assembly, in the case of the States). (DSSSB JE CE 2019) (DSSSB Junior Steno 2021) A. 16 B. 20 C. 15 D. 18 5. Out of the following statements, choose the one that brings out the principle underlying the Cabinet form of Government: (UPSC 2017) (a) An arrangement for minimizing the criticism against the Government whose responsibilities are complex and hard to carry out to the satisfaction of all.
(b) A mechanism for speeding up the activities of the Government whose responsibilities are increasing day by day.
(c) A mechanism of parliamentary democracy for ensuring collective responsibility of the Government to the people.
(d) A device for strengthening the hands of the head of the Government whose hold over the people is in a state of decline.
Answers: 1-B, 2-C, 3-D, 4-C, 5-C Mains 1. The role of individual MPs (Members of Parliament) has diminished over the years and as a result healthy constructive debates on policy issues are not usually witnessed. How far can this be attributed to the anti-defection law which was legislated but with a different intention? (UPSC 2013)
2. ‘Once a Speaker, Always a Speaker’! Do you think this practice should be adopted to impart objectivity to the office of the Speaker of Lok Sabha? What could be its implications for the robust functioning of parliamentary business in India? (UPSC 2020)
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Source: The Indian Express
INDUS WATER TREATY
1. Context
2. Is unilateral suspension permissible?
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The Indus Waters Treaty (IWT) cannot be modified or terminated by one country alone. Article XII explicitly states that the agreement may only be ended through a "duly ratified treaty" mutually accepted by both India and Pakistan.
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India’s reference to placing the treaty “in abeyance” in its communication with Pakistan lacks legal grounding, as international law and the Vienna Convention on the Law of Treaties (VCLT), 1969—which serves as the foundational framework for international agreements—do not recognize this term.
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Under Article 62 of the VCLT, a treaty may be withdrawn from if there has been a “fundamental change of circumstances” compared to when it was first signed.
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Although India is not a signatory and Pakistan has signed but not ratified the VCLT, the International Court of Justice (ICJ), in its ruling on the Fisheries Jurisdiction cases, recognized Article 62 as part of customary international law—making it applicable even without formal ratification.
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India appears to be appealing to this legal doctrine in its letter, which emphasized that a “fundamental change in circumstances” warrants a reassessment of its commitments under the IWT.
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For instance, in the 1997 Gabcíkovo-Nagymaros case involving Hungary and Slovakia’s dam project, Hungary claimed that evolving political and economic conditions, along with potential environmental risks, justified ending the treaty.
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The ICJ dismissed these claims, asserting that the cited changes were not directly tied to the treaty’s central goal of cooperative energy generation
3.How will this have effect on Pakistan?
- Over 80% of Pakistan’s agricultural activities and nearly one-third of its hydropower production rely on the Indus basin's water resources.
- Despite this heavy dependence, analysts point out that India does not have the extensive water storage facilities or a widespread canal network necessary to retain the vast volumes—tens of billions of cubic metres—of water from the western rivers.
- India’s existing infrastructure primarily comprises run-of-the-river hydropower projects, which are not designed for significant water storage.
- Nevertheless, the primary concern lies in the unpredictability of water flows, which poses a serious threat to Pakistan’s largely agriculture-based economy
4. Applications moved by Pakistan and India earlier
- The World Bank, the third party to the Treaty and the acknowledged arbiter of disputes were, meanwhile faced with a unique situation of having received two separate requests for the same dispute.
- New Delhi feels that the World Bank is just a facilitator and has a limited role.
- On December 12, 2016, the World Bank announced a "pause" in the separate processes initiated by India and Pakistan under the Indus Waters Treaty to allow the two countries to consider alternative ways to resolve their disagreements.
- The regular meetings of Indus Waters Commissioners resumed in 2017 and India tried to use these to find mutually agreeable solutions between 2017 and 2022.
- Pakistan refused to discuss these issues at these meetings.
- At Pakistan's continued insistence, the World Bank, in March last year, initiated actions on the requests of both India and Pakistan.
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On March 31, 2022, the World Bank decided to resume the process of appointing a Neutral Expert and a Chairman for the Court of Arbitration.
In October last year, the Bank named Michel Lino as the Neutral Expert and Prof. Sean Murphy as Chairman of the Court of Arbitration.
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- They will carry out their duties in their capacity as subject matter experts and independently of any other appointments they may currently hold.
- On October 19, 2022, the Ministry of External Affairs said, " We have noted the World Bank's announcement to concurrently appoint a Neutral Expert and a Chair of the Court of Arbitration in the ongoing matter related to the Kishanganga and Ratle projects".
- Recognising the World Bank's admission in its announcement that "carrying out two processes concurrently poses practical and legal challenges".
- India would assess the matter that "India believes that the implementation of the Indus Water Treaty must be in the letter and spirit of the Treaty".
- Such parallel consideration of the same issues is not provided for in any provisions of the Treaty and India has been repeatedly citing the possibility of the two processes delivering contradictory rulings, which could lead to an unprecedented and legally untenable situation, which is unforeseen in Treaty provisions.
5. Dispute redressal mechanism
- The dispute redressal mechanism provided under Article IX of the IWT is graded.
- It's a 3-level mechanism.
- So, whenever India plans to start a project, under the Indus Water Treaty, it has to inform Pakistan that it is planning to build a project.
- Pakistan might oppose it and ask for more details. That would mean there is a question and in case there is a question, that question has to be clarified between the two sides at the level of the Indus Commissioners.
- If that difference is not resolved by them, then the level is raised. The question then becomes a difference.
- That difference is to be resolved by another set mechanism, which is the Natural Expert.
- It is at this stage that the World Bank comes into the picture.
- In case the Neutral Expert says that they are not able to resolve the difference or that the issue needs an interpretation of the Treaty, then that difference becomes a dispute.
It then goes to the third stage the Court of Arbitration. - To Sum up, it's a very graded and sequential mechanism first Commissioner, then the Neutral Expert and only then the Court of Arbitration.
6. India's notice and its implications
- While the immediate provocation for the modification is to address the issue of two parallel mechanisms, at this point, the implications of India's notice for modifying the treaty are not very clear.
- Article XII (3) of the Treaty that India has invoked is not a dispute redressal mechanism.
- It is in effect, a provision to amend the Treaty.
- However, an amendment or modification can happen only through a "duly ratified Treaty concluded for that purpose between the two governments".
- Pakistan is under no obligation to agree to India's proposal.
- As of now, it is not clear what happens if Pakistan does not respond to India's notice within 90 days.
| The next provision in the Treaty, Article XII (4), provides for the termination of the Treaty through a similar process " a duly ratified Treaty concluded for that the purpose between the two governments". |
- India has not spelt out exactly what it wants to be modified in the Treaty.
- But over the last few years, especially since the Uri attack, there has been a growing demand in India to use the Indus Waters Treaty as a strategic tool, considering that India has the natural advantage of being the upper riparian state.
- India has not fully utilized its rights over the waters of the three east-flowing rivers Ravi, Beas and Sutlej over which India has full control under the Treaty.
It has also not adequately utilized the limited rights over the three west-flowing rivers Indus, Chenab and Jhelum which are meant for Pakistan. - Following the Uri attack, India established a high-level task force to exploit the full potential of the Indus Waters Treaty.
- Accordingly, India has been working to start several big and small hydroelectric projects that had either been stalled or were in the planning stages.
- A river system consists of a river and all its tributaries. The Indus River system is made up of six rivers: Indus, Jhelum, Chenab, Ravi, Beas, and Sutlej. Among these, the Indus and Sutlej are antecedent rivers, meaning they existed before the formation of the Himalayas and carved deep gorges as they flowed from the Tibet region. The remaining four rivers—Jhelum, Chenab, Ravi, and Beas—originate in India.
- The Indus Basin stretches across four countries: China, India, Pakistan, and Afghanistan. In India, it covers the Union Territories of Ladakh and Jammu and Kashmir, as well as Chandigarh, and the states of Himachal Pradesh, Punjab, Haryana, and Rajasthan. The total drainage area of the basin is about 3,21,289 square kilometers, representing roughly 9.8% of India’s total geographical area.
- The Indus River originates from the trans-Himalayan range near Mansarovar Lake in Tibet, known as Singi Khamban or the Lion’s Mouth. Flowing west, it enters India at Demchok in Ladakh.
- Within India, the river runs for about 1,114 kilometers, flowing between the Ladakh and Karakoram ranges. Its main right bank tributaries include the Shyok (originating from Rimo Glacier), Shigar, and Gilgit, while the Zaskar and Hanle rivers are its left bank tributaries. The Indus River travels a total of 2,880 kilometers, eventually emptying into the Arabian Sea near Karachi, Pakistan. The Indus River Dolphin, listed as endangered by the International Union for Conservation of Nature (IUCN), primarily inhabits the Indus.
- The Jhelum River (252 km) begins at Verinag near the Pir Panjal in India, flowing through Wular Lake in Srinagar before entering Pakistan, where it merges with the Chenab near Jhang. The Chenab River, the Indus’s largest tributary, is 1,180 km long within India and originates from the confluence of the Chandra and Bhaga rivers at Tandi in Keylong, Himachal Pradesh.
- The Ravi River (95 km) starts from the Kullu Hills near Rohtang Pass in Himachal Pradesh and joins the Chenab at Sarai Sidhu in Pakistan. The Beas River (354 km) originates from Beas Kund, located at 4,000 meters above sea level near Rohtang Pass. It flows through the Kullu Valley and joins the Sutlej near Harike in Punjab, India. The Harike Barrage, built in 1952, diverts water for the Indira Gandhi Canal system.
- The Sutlej River (676 km) is another antecedent river, originating from Rakas Tal (4,555 meters above sea level) near Mansarovar in Tibet. It enters India near Ropar. India has built several important dams to harness the waters of the eastern rivers, including the Ranjit Sagar Dam on the Ravi, the Bhakra Dam on the Sutlej, and the Pong and Pandoh Dams on the Beas. These projects, including the Beas-Sutlej Link, the Madhopur-Beas Link, and the Indira Gandhi Canal Project, allow India to utilize nearly 95% of the waters of these eastern rivers.
8. Way Forward
However, India’s projects on the western rivers have been a source of dispute with Pakistan. Significant projects on the western rivers, such as the Salal Dam, the Baglihar Hydropower Project, the Pakal Dul Project, and the Kiru Project, are located on the Chenab River, while the Tulbul Project is situated on the Jhelum River in Jammu and Kashmir. These projects have been at the center of objections from Pakistan over the year
For Prelims & Mains
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For Prelims: Indus water treaty, World Bank, India and Pakistan, Ravi, Jhelum, Sutlej, Beas, Chennab, Court of Arbitration, Uri attack, Neutral Expert, hydel projects,
For Mains:
1. What is Indus Water Treaty and discuss India's recent notice and its implications (250 Words)
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Previous Year Questions
1.With reference to the Indus river system, of the following four rivers, three of them pour into one of them which joins the Indus directly. Among the following, which one is such a river that joins the Indus direct? (2021) (a) Chenab (b) Jhelum (c) Ravi (d) Sutle 2.Consider the following pairs (2019)
Answer (d) Which of the pairs given above are correctly matched? (a) 1, 2 and 4 (b) 1, 3 and 4 (c) 2 and 5 (d) 3 and 5 Answer (a) Mains 1.The interlinking of rivers can provide viable solutions to the multi-dimensional inter-related problems of droughts, floods, and interrupted navigation. Critically examine. (2020) |
NATIONAL QUANTUM MISSION
- The National Quantum Mission (NQM) is an initiative launched by the Government of India in 2023 to advance research and development in quantum science and technology. With a focus on four core areas—Quantum Computing, Quantum Communication, Quantum Sensing & Metrology, and Quantum Materials & Devices—the mission seeks to position India as a global leader in quantum innovation.
- The mission is funded with an allocation of ₹6,003.65 crore over a span of eight years (2023-2031) and aims to drive both scientific breakthroughs and industrial applications. A key feature of the mission is the establishment of four Thematic Hubs (T-Hubs), each dedicated to one of the key areas, to address specific research objectives and challenges in quantum technologies.
- The NQM is expected to support a range of applications, from secure communication systems to advanced computing, with the potential to transform fields like healthcare, defense, and cryptography
- Quantum technology refers to a broad range of technological innovations rooted in the fundamental principles of quantum mechanics. Scientists discovered that classical physics—including Newtonian mechanics, electromagnetism, and classical thermodynamics—could not fully explain several important phenomena at the atomic and subatomic levels, such as wave-particle duality, quantum superposition, quantum entanglement, and Heisenberg's Uncertainty Principle.
- This gap in understanding led to the creation of quantum mechanics, a new branch of physics that transformed how we perceive the quantum world. Over time, advancements in quantum mechanics were applied to develop real-world devices.
- These theories and devices collectively form what we now refer to as quantum technology.
- Specifically, quantum technology harnesses quantum mechanical principles, such as superposition, quantum entanglement, and interference, to enable more efficient large-scale computations. Let’s explore these concepts in more detail
- (a) Superposition: In classical computing, the basic unit of data is a ‘bit,’ which can have a value of either ‘0’ or ‘1.’ A bit is limited to these two possible states. In contrast, quantum computing uses a ‘qubit’ (quantum bit) as its fundamental unit. Unlike classical bits, qubits can exist in a superposition of both ‘0’ and ‘1’ simultaneously, represented as a combination of probabilities for being in either state when measured.
- This property allows quantum computers to process multiple possibilities at once, enabling them to solve complex problems more efficiently by exploring numerous potential solutions simultaneously and finding the optimal one with minimal error. Quantum algorithms like Shor’s algorithm (used for factoring large numbers) and Grover’s algorithm (for quickly searching unstructured databases) leverage superposition to deliver results far faster than classical computers, which might take months for the same task.
- (b) Entanglement: Entanglement describes the phenomenon where two subatomic particles become linked, such that a change in one particle is instantly reflected in the other, regardless of the distance between them. This property can be used to enhance the security of quantum communication by entangling the qubits of the sender and receiver, preventing unauthorized access.
- (c) Interference: Interference refers to the superposition of quantum states in subatomic particles, which influences the likelihood of different outcomes when those particles are measured. While entanglement is a relationship between two particles, interference involves the interaction of multiple particles. It can be constructive or destructive, making it useful in quantum algorithms to improve accuracy by amplifying high-probability outcomes and suppressing less probable ones.
- Quantum technology, though relatively new, is a crucial interdisciplinary field with broad applications in science, research, healthcare, communication, security, and more. This brings us back to the goals and challenges of each focus area under the National Quantum Mission
- (a) Quantum Computing: This area focuses on creating the necessary hardware, software, algorithms, and protocols for designing and developing quantum computing systems, such as quantum computers. While the National Quantum Mission is set to last for eight years (2023-2031), its progress can be broken down into three stages: developing 20-50 physical qubits within the first three years, 50-100 physical qubits within five years, and 50-1000 physical qubits by the end of eight years.
- It’s important to note that quantum computers are not meant to replace classical computers. Instead, they are designed to handle computational tasks that classical computers struggle with. For instance, factoring large numbers using classical computers requires vast amounts of memory and time. Even with superprocessors, such tasks could take months. Quantum computers, therefore, are expected to be used primarily in laboratories for these highly complex problems, while everyday users will continue relying on classical computers.
- (b) Quantum Communication: This focuses on developing secure satellite-based quantum communications between ground stations, which could be up to 2000 kilometers apart. This would enable secure communication both within and outside the country. The mission aims to develop inter-city quantum key distribution (QKD) networks with secure nodes, using wavelength division multiplexing (WDM) over optical fiber networks spanning large distances, up to 2000 kilometers.
- The goal is to develop key hardware for a multi-node quantum network, which includes quantum memories, entanglement swapping (enabling two particles that haven’t interacted to become entangled through a third particle), and synchronized quantum repeaters at each node (2-3 nodes).
- (c) Quantum Sensing & Metrology: NQM has set a dedicated goal to improve measurement accuracy and sensing capabilities. The mission plans to develop magnetometers with a sensitivity of 1 femto-Tesla/sqrt(Hz) in atomic systems, surpassing the previous 1 pico-Tesla/sqrt(Hz) benchmark. It also aims to enhance gravity measurement sensitivity beyond 100 nanometers/second² and develop atomic clocks with 10⻹⹠fractional instability for more precise timing, communication, and navigation applications.
- (d) Quantum Materials & Devices: Advancing quantum technology requires specialized materials and devices. The National Quantum Mission aims to design and synthesize quantum materials, such as superconductors that function at extremely low temperatures (-273°C). Maintaining such low temperatures presents significant energy and technical challenges. The mission also seeks to develop innovative semiconductor structures and topological materials for creating quantum devices that will be used in various quantum technologies.
- To support each of these areas, Thematic Hubs (T-Hubs) will be established. These hubs will focus on key elements like technology development, human resource training, fostering entrepreneurship and startups, and promoting international collaborations
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For Prelims: National Mission on Quantum Technologies & Applications, Internet-of-Things,
For Mains:
1. Discuss the need for implementing the National Mission on Quantum Technologies and Applications. (250 Words)
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Previous Year Questions 1. Which one of the following is the context in which the term "qubit" is mentioned? (UPSC 2022) A. Cloud Services B. Quantum Computing C. Visible Light Communication Technologies D. Wireless Communication Technologies Answer: B |
TARIFFS
2. What is a Tariff?
- Most countries are limited by their natural resources and ability to produce certain goods and services.
- They trade with other countries to get what their population needs and demands. However, trade isn't always conducted in an amenable manner between trading partners.
- Policies, geopolitics, competition, and many other factors can make trading partners unhappy. One of the ways governments deal with trading partners they disagree with is through tariffs.
- A tariff is a tax imposed by one country on the goods and services imported from another country to influence it, raise revenues, or protect competitive advantages.
3. Key Take Aways
- Governments impose tariffs to raise revenue, protect domestic industries, or exert political leverage over another country.
- Tariffs often result in unwanted side effects, such as higher consumer prices.
- Tariffs have a long and contentious history, and the debate over whether they represent good or bad policy still rages.
4. History of Tariffs
4.1 Pre Modern Europe
- In pre-modern Europe, a nation's wealth was believed to consist of fixed, tangible assets, such as gold, silver, land, and other physical resources.
- Trade was seen as a Zero-sum game that resulted in either a clear net loss or a clear net gain of wealth.
- If a country imported more than it exported, a resource, mainly gold, would flow abroad, thereby draining its wealth. Cross-border trade was viewed with suspicion, and countries preferred to acquire colonies with which they could establish exclusive trading relationships rather than trading with each other.
- This system, known as mercantilism, relied heavily on tariffs and even outright bans on trade. The colonizing country, which saw itself as competing with other colonizers, would import raw materials from its colonies, which were generally barred from selling their raw materials elsewhere.
- The colonizing country would convert the materials into manufactured wares, which it would sell back to the colonies. High tariffs and other barriers were implemented to ensure that colonies only purchased manufactured goods from their home countries.
4.2 Late 19th and early 20th Centuries
- Relatively free trade enjoyed a heyday in the late 19th and early 20th centuries when the idea took hold that international commerce had made large-scale wars between nations so expensive and counterproductive that they were obsolete.
- World War I proved that idea wrong, and nationalist approaches to trade, including high tariffs, dominated until the end of World War II.
- From that point on, free trade enjoyed a 50-year resurgence, culminating in the creation in 1995 of the World Trade Organisation (WTO), which acts as an international forum for settling disputes and laying down ground rules.
- Free trade agreements, such as the North American Free Trade Agreement (NAFTA) now known as the United States-Mexico-Canada Agreement (USMCA) and the European Union (EU), also proliferated.
4.3 In the 21st Century
- Skepticism of this model sometimes labeled neoliberalism by critics who tie it to 19th-century liberal arguments in favor of free trade grew, however, and Britain in 2016 voted to leave the European Union.
- That same year Donald Trump won the U.S. presidential election on a platform that included a call for tariffs on Chinese and Mexican imports, which he implemented when he took office.
- Critics of tariff-free multilateral trade deals, who come from both ends of the political spectrum, argue that they erode national sovereignty and encourage a race to the bottom regarding wages, worker protections, and product quality and standards.
- Meanwhile, the defenders of such deals counter that tariffs lead to trade wars, hurt consumers, and hamper innovation.
5. Understanding Tariffs
- Tariffs are used to restrict imports. Simply put, they increase the price of goods and services purchased from another country, making them less attractive to domestic consumers.
- A key point to understand is that a tariff affects the exporting country because consumers in the country that imposed the tariff might shy away from imports due to the price increase. However, if the consumer still chooses the imported product, then the tariff has essentially raised the cost to the consumer in another country.
There are two types of tariffs:
- A specific tariff is levied as a fixed fee based on the type of item, such as a $500 tariff on a car.
- An ad-valorem tariff is levied based on the item's value, such as 5% of an import's value.
6. Why Government Imposes Tariffs?
Tariffs can be used to raise revenues for governments. This kind of tariff is called a revenue tariff and is not designed to restrict imports. For instance, in 2018 and 2019, President Donald Trump and his administration imposed tariffs on many items to rebalance the trade deficit. In the fiscal year 2019, customs duties received were $18 billion. In FY 2020, duties received were $21 billion.
6.2 Protect Domestic Industries
Governments can use tariffs to benefit particular industries, often doing so to protect companies and jobs. For example, in May 2022, President Joe Biden proposed a 25% ad valorem tariff on steel articles from all countries except Canada, Mexico, and the United Kingdom (the U.K. has a quota of an aggregate of 500,000 metric tons it can trade with the U.S.). This proclamation reopens the trade of specific items with the U.K. while taking measures to protect domestic U.S. steel manufacturing and production jobs.
6.3 Protect Domestic Consumers
By making foreign-produced goods more expensive, tariffs can make domestically-produced alternatives seem more attractive. Some products made in countries with fewer regulations can harm consumers, such as a product coated in lead-based paint. Tariffs can make these products so expensive that consumers won't buy them.
6.4 Protect National Interests
Tariffs can also be used as an extension of foreign policy as their imposition on a trading partner's main exports may be used to exert economic leverage. For example, when Russia invaded Ukraine, much of the world protested by boycotting Russian goods or imposing sanctions. In April 2022, President Joe Biden suspended normal trade with Russia. In June, he raised the tariff on Russian imports not prohibited by the April suspension to 35%.
7. Advantages of Tariffs
- Produce revenues: As discussed, tariffs provide a government a chance to bring in more money. This can relieve some of the tax burdens felt by a county's citizens and help the government to reduce deficits.
- Open negotiations: Tariffs can be used by countries to open negotiations for trade or other issues. Each side can use tariffs to help them create economic policies and talk with trade partners.
- Support a nation's goals: One of the most popular uses for tariffs is to use them to ensure domestic products receive preference within a country to support businesses and the economy.
- Make a market predictable: Tariffs can help stabilize a market and make prices predictable.
8. Disadvantages of Tariffs
- Create issues between governments: Many nations use tariffs to punish or discourage actions they disapprove of. Unfortunately, doing this can create tensions between two countries and lead to more problems.
- Initiate trade wars: A typical response for a country with tariffs imposed on it is to respond similarly, creating a trade war in which neither country benefits from the other.
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For Prelims: Tariffs, Zero-sum game, Cross-border trade, World Trade Organisation (WTO), North American Free Trade Agreement (NAFTA), United States-Mexico-Canada Agreement (USMCA), and the European Union (EU). For Mains: 1. What is a Tariff and explain why government imposes tariffs. Discuss the advantages and disadvantages associated with Tariffs. (250 Words). |
FOREIGN DIRECT INVESTMENT (FDI)
- India's net foreign direct investment (FDI) inflows experienced a decline, decreasing by nearly 31% to $25.5 billion during the first 10 months of the 2023-24 fiscal year. The Finance Ministry attributed this decline to a broader trend of slowing investments in developing countries, while expressing optimism for a potential increase in investments in the current calendar year.
- Although global FDI flows overall saw a 3% rise to approximately $1.4 trillion in 2023, economic uncertainty and elevated interest rates impacted global investment, resulting in a 9% decrease in FDI flows to developing nations, as outlined in the Ministry's February assessment of economic performance.
- Reflecting the global trend of reduced FDI flows to developing countries, gross FDI inflows to India also experienced a slight decline, from $61.7 billion to $59.5 billion during the period from April 2023 to January 2024. In terms of net inflows, the corresponding figures were $25.5 billion versus $36.8 billion. The decrease in net inflows was primarily attributed to an increase in repatriation, while the decline in gross inflows was minimal.
- While a modest uptick in global FDI flows is anticipated for the current calendar year, attributed to a decrease in inflation and borrowing costs in major markets that could stabilize financing conditions for international investment, significant risks persist, according to the Ministry. These risks include geopolitical tensions, elevated debt levels in numerous countries, and concerns regarding further fragmentation of the global economy
- FDI involves the transfer of funds and resources from one country to another. This capital inflow can help stimulate economic growth in the host country by providing funds for investment in infrastructure, technology, and other areas.
- FDI often leads to the creation of jobs in the host country. When foreign companies establish subsidiaries or invest in existing businesses, they typically hire local employees, which can help reduce unemployment and improve living standards
- Foreign investors often bring advanced technologies, processes, and management practices to the host country. This technology transfer can enhance the host country's productivity, competitiveness, and industrial capabilities
- FDI can provide access to new markets for both the host country and the investing company. Foreign investors can tap into the host country's consumer base, while the host country gains access to the investing company's global distribution networks.
- FDI can contribute to overall economic development in the host country by promoting industrialization, improving infrastructure, and fostering innovation and entrepreneurship.
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Automatic Route: Under the automatic route, FDI is allowed without the need for prior approval from the RBI or the government. Investors only need to notify the RBI within a specified time frame after the investment is made. This route is available for most sectors, except those that are prohibited or require government approval.
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Government Route: In sectors or activities that are not covered under the automatic route, FDI requires government approval. Investors must apply for approval through the Foreign Investment Facilitation Portal (FIFP) or the Foreign Investment Promotion Board (FIPB), depending on the sector.
- Under the automatic route, FDI of up to 100% is allowed for manufacturing of automobiles and components.
- For the manufacturing of electric vehicles (EVs), 100% FDI is allowed under the automatic route.
- In single-brand retail trading, 100% FDI is allowed, with up to 49% allowed under the automatic route. Beyond 49%, government approval is required.
- Multi-brand retail trading (supermarkets and department stores) with FDI is permitted in some states, subject to certain conditions and restrictions. The FDI limit is typically capped at 51%.
- FDI in the insurance sector is allowed up to 74%, with up to 49% under the automatic route. Beyond 49%, government approval is needed
- In the telecom sector, 100% FDI is allowed, with up to 49% under the automatic route. Beyond 49%, government approval is required
- In the defense sector, FDI up to 74% is allowed under the automatic route, with government approval required for investments beyond 49%
- In most segments of the media and broadcasting sector, including print and digital media, 100% FDI is allowed, with up to 49% under the automatic route
- FDI is prohibited in the atomic energy sector, which includes activities related to the production of atomic energy and nuclear power generation.
- FDI is generally prohibited in the gambling and betting industry, which includes casinos and online betting platforms
- FDI is not allowed in the lottery business, except for state-run lotteries
- FDI is prohibited in chit funds, which are traditional Indian savings and credit schemes.
- Nidhi companies are non-banking finance companies (NBFCs) that facilitate mutual benefit funds. FDI is typically not permitted in these entities
- While FDI is allowed in single-brand retail trading, it is generally prohibited in multi-brand retail trading of agricultural products. Some states have allowed it under specific conditions, but this remains a highly regulated area.
- FDI is not allowed in the trading of transferable development rights (TDRs) pertaining to the construction of real estate
- FPIs invest in a country's financial markets, primarily by buying and selling securities traded on stock exchanges and fixed-income instruments like bonds and government securities
- FPIs often seek to diversify their investment portfolios by spreading their investments across different asset classes, sectors, and countries. This diversification helps manage risk and enhance returns
- FPIs have the flexibility to buy and sell securities in the secondary market, providing liquidity to the market and contributing to price discovery
- FPIs typically have a shorter investment horizon compared to Foreign Direct Investors (FDIs). They may engage in short-term trading or hold securities for a few months to a few years.
- FPIs are subject to regulatory frameworks and restrictions in the countries where they invest. These regulations are designed to ensure that foreign investments do not pose undue risks to the local financial markets and economy.
| FPI (Foreign Portfolio Investment) | FDI (Foreign Direct Investment) |
| FPI involves the purchase of financial assets such as stocks, bonds, mutual funds, and other securities in a foreign country. These investments are typically made with the intention of earning returns on capital and do not result in significant control or ownership of the underlying businesses | FDI entails making an investment in a foreign country with the primary objective of establishing a lasting interest and significant control or influence over a business enterprise or physical assets. FDI often involves the acquisition of a substantial ownership stake (typically at least 10%) in a company or the establishment of new business operations. |
| FPI is generally characterized by a shorter investment horizon. Investors in FPI may engage in trading and portfolio rebalancing activities, and their investments are often more liquid. The focus is on earning capital gains and income from investments. | FDI is characterized by a longer-term commitment. Investors in FDI intend to engage in the day-to-day management or decision-making of the business, contribute to its growth and development, and generate profits over an extended period. |
| FPI investors typically have little to no influence or control over the companies in which they invest. They are passive investors who participate in the financial markets and rely on market dynamics to drive returns. | FDI investors actively participate in the management and decision-making of the businesses they invest in. They often seek to exercise control over company operations and strategy, which may include appointing board members or key executives. |
| FPI investments are often made through financial instruments like stocks, bonds, and securities. Investors may use instruments like mutual funds or exchange-traded funds (ETFs) to gain exposure to foreign markets | FDI investments involve a direct equity stake in a company, either through share acquisition or the establishment of a subsidiary or branch in the host country. FDI can also involve the purchase of real assets such as land, factories, or infrastructure |
| FPI can provide short-term capital inflows, but it may be more susceptible to market volatility and sudden capital outflows. It may not have as direct an impact on job creation and economic development as FDI. | FDI often contributes to long-term economic development by creating jobs, stimulating infrastructure development, transferring technology and expertise, and enhancing the competitiveness of local industries |
| FPI investments are subject to regulations that vary by country and may include foreign ownership limits, reporting requirements, and tax considerations. | FDI is subject to regulations that can be more stringent and may involve government approval, sector-specific conditions, and investment protection measures |
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For Prelims: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
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Previous Year Questions
1. Both Foreign Direct Investments (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. (UPSC CSE 2011)
Which one of the following statements best represents an important difference between the two?
A.FII helps bring better management skills and technology, while FDI only brings in capital
B.FII helps in increasing capital availability in general, while FDI only targets specific sectors C.FDI flows only into the secondary markets, while FII targets primary market
D.FII is considered to the more stable than FDI
Answer (B)
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