MARITIME RED SEA ROUTE
1. Context
- The India-Middle East-Europe Economic Corridor announced at the G20 Summit harkens to an ancient trade route between the subcontinent and the Roman Empire.
- The existence of this trade, which peaked in the early centuries of the common era, has been known for long; however, evidence of its scale eclipsing the more romanticised overland Silk Road has only recently emerged strongly.
2. About the ancient Red Sea trade route
- For years, it was thought that Roman merchants were the only ones trading with India.
- However, recent evidence shows that Indian merchants and shipowners were also involved in this trade.
- The scale of this trade was massive. According to the latest estimates, custom taxes on the Red Sea trade with India, Persia, and Ethiopia may have generated as much as one-third of the income of the Roman exchequer.
- The principal source for this figure is the Muziris Papyrus, a document that details the purchase of goods from an Indian merchant by an Egyptian financier.
- The Papyrus gives precise details of one particular cargo sent to the Egyptian port of Berenike from Muziris on the coast of Kerala.
- The total value of the goods was 131 talents, which is equivalent to the price of 2,400 acres of farmland in Egypt or a premium estate in central Italy.
Image Source: Wikipedia3. Roman Empire earnings from this trade
- According to the Muziris Papyrus, the import tax paid on the cargo of almost nine million sesterces was over two million sesterces.
- Working up from these figures, it is estimated that Indian imports into Egypt were worth probably over a billion sesterces per annum, from which the tax authorities of the Roman Empire were creaming off no less than 270 million.
- These vast revenues surpassed those of entire subject countries Julius Caesar imposed a tribute of 40 million sesterces after his conquests in Gaul while the vital Rhineland frontier was defended by eight legions at an annual cost of 88 million sesterces.
4. Goods Traded on the Ancient Red Sea Route
4.1. Roman Imports from India
Luxuries: The Roman Empire had a significant appetite for luxury items from India. This included products like malabathrum, a plant whose leaves were used to create perfume, as well as ivory, pearls, and precious gemstones. Notably, Pompeii contained a shop dedicated solely to ivory products, showcasing the demand for such exotic materials.
Wild Animals: There was a demand for "exotic" goods, including live animals like elephants and tigers from India.
Spices: Pepper was India's major export to Rome. Large quantities of pepper have been discovered in excavations at Berenike, often stored in torpedo-shaped pottery jars, each weighing more than 10 kg. By the end of the first century CE, Indian pepper had become readily available, although it remained an expensive treat. Pepper was a common ingredient in Roman cuisine, with approximately 80 per cent of the recipes in the Roman cookbook of Apicius including it.
4.2. Roman Exports to India
- The flow of goods from Rome to India was more limited. Pliny the Elder noted that gold was a significant export to India, creating a trade imbalance that posed challenges for the Roman economy.
- However, there are records indicating that Indians developed a taste for Roman wine.
- Some limited trade also involved items like olive oil and Garum, an ancient Roman fermented fish paste, which could be likened to contemporary condiments like Tabasco or garam masala.
5. Trade on the Route Before the Common Era
- Evidence of trade along this route dates back to ancient times, including during the time of Meluha, the Indus Valley Civilization (approximately 3300-1300 BCE).
- However, this early trade appears to have been more localized and coastal, involving smaller quantities of goods.
- In Roman times, this trade expanded significantly, with large cargo ships directly connecting the Indian subcontinent to the Roman Empire.
- The Romans played a crucial role in "industrializing" this trade, driven by their economic capacity to purchase the luxury items that India offered.
- The trade flourished, particularly in the 1st and 2nd centuries CE, after the Romans conquered Egypt, which opened up the route to adventurous Roman merchants.
6. Organization of the Trade and Voyage Duration
- The trade along the ancient Red Sea route was highly organized. Merchants in Kerala and shippers in Alexandria engaged in formal contracts.
- Goods were transported in containers, similar to modern shipping practices, where a container would be booked and filled with specific products.
- There are even references to insurance, highlighting the sophistication of this trade network.
- Indian traders recognized the monsoon winds, which blew in different directions in winter and summer due to the heating of the Tibetan Plateau.
- By timing their voyages correctly, they could take advantage of these winds. The journey from India to Egypt, or vice versa, could be completed in about six to eight weeks with the winds behind them.
- However, travellers had to wait for a few months for the winds to change direction.
7. Roles of Indians in the Red Sea Trade
Interest in Seafaring: Indian dynasties displayed a keen interest in seafaring, evident in ancient artwork like the depictions of large double-masted ships in Ajanta caves. Additionally, ships were common symbols of early Indian coins, such as those from the Satavahanas dynasty.
Prominent Role of Indian Sailors: Indian sailors played a prominent role in the Red Sea trade. Graffiti left by Indian sailors, often Gujaratis from Barigaza (modern-day Bharuch), was discovered in the Hoq caves on Socotra Island, a vital stopover at the Gulf of Aden's mouth. These inscriptions, dating from the second to the fifth century CE, were primarily in the Indian Brahmi script, with names like "Vishnu, son of the merchant Ganja" and "Skandabhuti, the Sea Captain." They also featured images of ships, religious symbols, and prayers to deities like Krishna and Radha.
Ownership of Shipping: While historical records suggest that much of the shipping departing from Egyptian Red Sea ports may have been owned by Alexandrian businessmen, it's plausible that Indian merchants and ship owners also had a significant stake in this trade due to the substantial Indian presence in the maritime activities of the period.
8. Comparison with the Silk Road
Silk Road vs. Red Sea Route: The Red Sea trade route, connecting the Indian subcontinent with the Roman Empire through the Red Sea, differs significantly from the concept of the Silk Road. While the Silk Road has gained popularity in modern times, it was entirely unknown in ancient or medieval times. The term "Silk Road" was coined in the late 19th century by Baron von Richthofen, primarily for a proposed railway route.
Historical Accuracy of Silk Road: There is no ancient record, whether from Chinese or Western sources, that mentions the existence of the Silk Road. Even Marco Polo, often associated with this route, never mentions it. The idea of the Silk Road gained prominence only in the 1980s-90s, largely due to its romantic appeal.
Inaccuracy of Silk Road Focus: The Silk Road concept is mostly inaccurate for the Roman period. Instead, during this time, there is no evidence of direct contact or trade between China and Europe. Chinese silk, for example, likely reached Rome through ports in India, travelling overland through Kushana territory in northern India to reach Gujarat and the mouth of the Indus.
9. Emerging Understanding of Indo-Roman Trade
New Evidence and Underplayed History: The recent emergence of a deeper understanding of Indo-Roman trade is attributed in part to the discovery of new archaeological evidence in places like Muziris in Kerala and Berenike in Egypt. Additionally, India has sometimes underplayed its significance as a centre of trade and ideas in the early classical period.
The Significance of the 1st and 2nd Centuries CE: The 1st and 2nd centuries CE represent an intriguing period when India played a vital role in exporting its ideas and luxury goods to the Roman world. This era witnessed the spread of Buddhism to China and the provision of luxury items to Rome. While scholars like Himanshu Prabha Ray have made valuable contributions to this field, there is a need to make their findings more accessible to a wider audience.
10. The Way Forward
- The recent revelations about India's central role in this ancient trade route have opened up numerous questions for exploration.
- For instance, the influence of Buddhist monasticism in India on the development of Christian monasticism in the late Roman period remains a topic of investigation.
- As more information comes to light, researchers can delve further into the connections and impacts of this extensive East-West trade network, shedding new light on the history of these two interconnected worlds.
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For Prelims: India-Middle East-Europe Economic Corridor, G20, Roman Empire, Silk Road, ancient Red Sea trade route, Muziris Papyrus, Indus Valley Civilization, Red Sea, Egypt, Tibetan Plateau, Ajanta caves, Satavahanas dynasty, Gulf of Aden, Buddhism,
For Mains:
1. Discuss the significance of the Maritime Red Sea Route in connecting the Indian subcontinent with the Roman Empire. How has recent evidence reshaped our understanding of this trade route compared to the Silk Road? (250 Words)
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Previous Year Questions
1. With reference to the “G20 Common Framework”, consider the following statements: (UPSC 2022)
1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. 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 Answer: C
2. In which one of the following groups are all the four countries members of G20?
(UPSC 2020)
A. Argentina, Mexico, South Africa and Turkey
B. Australia, Canada, Malaysia and New Zealand
C. Brazil, Iran, Saudi Arabia and Vietnam
D. Indonesia, Japan, Singapore and South Korea
Answer: A
3. Read the statements (A) and (R) and choose the correct option. (CTET 2022)
Assertion (A): The Roman empire carried out trades with South India.
Reason (R): Roman gold coins have been found in South India.
A. Both (A) and (R) are correct and R is the correct explanation of A.
B. Both (A) and (R) are correct and R is not the correct explanation of A.
C. (A) is true, but (R) is false.
D. (A) is false but (R) is true.
Answer: A
4. Who was the first emperor of the Roman Empire? (ACC 122 CGAT 2020)
A. Tiberius B. Mark Antony C. William Shakespeare D. Augustus
Answer: D
5. Comprehension (SSC CGL Tier 2 2020)
Directions:
Read the passage and answer the questions that follow.
The Roman Empire covered a vast stretch of territory that included most of Europe as we know it today and a large part of the Fertile Crescent and North Africa. The Roman Empire embraced a wealth of local cultures and languages; that women had a stronger legal position then than they do in many countries today; but also that much of the economy was run on slave labour, denying freedom to substantial numbers of persons. From the fifth century onwards, the empire fell apart in the west but remained intact and exceptionally prosperous in its eastern half. Roman historians have a rich collection of sources to go on, which we can broadly divide into three groups: (a) texts, (b) documents and (c) material remains. Textual sources include letters, speeches, sermons, laws, and histories of the period written by contemporaries. These were usually called ‘Annals’ because the narrative was constructed on a year-by-year basis. Documentary sources include mainly inscriptions and papyri. Inscriptions were usually cut on stone, so a large number survive, in both Greek and Latin. The ‘papyrus’ was a reed-like plant that grew along the banks of the Nile in Egypt and was processed to produce sheets of writing material that was very widely used in everyday life. Thousands of contracts, accounts, letters and official documents survive ‘on papyrus’ and have been published by scholars who are called ‘papyrologists’. Material remains include a very wide assortment of items that mainly archaeologists discover (for example, through excavation and field survey), for example, buildings, monuments and other kinds of structures, pottery, coins, mosaics, even entire landscapes. Each of these sources can only tell us just so much about the past, and combining them can be a fruitful exercise, but how well this is done depends on the historian’s skill! Which of these statements is NOT true?
A. Archaeologists make discoveries through excavations.
B. Inscriptions were carved in Greek and Latin
C. The Roman empire flourished longer in the west.
D. Texts, documents and material remains were the main sources for the historians
Answer: C
6. In the first century AD, which among the following was not a major item of Indian exports to Rome? (CDS GK 2018)
A. Pepper B. Spikenard C. Tortoiseshell D. Nutmeg
Answer: D
7. Pepper was as valued in Roman Empire that as it was called (CTET 2013)
A. Black magic B. Black charm C. Black stone D. Black gold
Answer: D
8. In the middle of the first century BC, under ________, a high-born military commander, the ‘Roman Empire’ was extended to present-day Britain and Germany. (SSC JE CE 2017)
A. Alexander B. Julius Caesar C. Xerxes D. Caligula
Answer: B
9. Comprehension
Direction: Read the passage carefully and select the best answer to each question out of the given four alternatives.
The Silk Road was a network of trade routes which connected the East and West, and was central to the economic, cultural, political, and religious interactions between these regions from the 2nd century BCE to the 18th century. The Silk Road primarily refers to the land routes connecting East Asia and Southeast Asia with South Asia, Persia, the Arabian Peninsula, East Africa and Southern Europe. The Silk Road derives its name from the lucrative trade in silk carried out along its length, beginning in the Han dynasty in China. The Silk Road trade played a significant role in the development of the civilizations of China, Korea, Japan, the Indian subcontinent, Iran, Europe, the Horn of Africa and Arabia, opening long-distance political and economic relations between the civilizations. Though silk was the major trade item exported from China, many other goods and ideas were exchanged, including religions (especially Buddhism), syncretic philosophies, sciences, and technologies like paper and gunpowder. So, in addition to economic trade, the Silk Road was a route for cultural trade among the civilizations along its network. Diseases, most notably plague, also spread along the Silk Road. Some remnants of what was probably Chinese silk dating from 1070 BCE have been found in Ancient Egypt. The Great Oasis cities of Central Asia played a crucial role in the effective functioning of the Silk Road trade. The originating source seems sufficiently reliable, but silk degrades very rapidly, so it cannot be verified whether it was cultivated silk (which almost certainly came from China) or a type of wild silk, which might have come from the Mediterranean or Middle East. Archeological sites such as the Berel burial ground in Kazakhstan, confirmed that the nomadic Arimaspians were not only breeding horses for trade but also great craftsmen able to propagate exquisite art pieces along the Silk Road.
According to the passage, The Silk Road primarily refers to the land routes connecting to one another. Which routes were not linked by it? (DSSSB Junior Stenographer 2021)
A. East Asia with Southern Europe
B. East Asia with South Asia
C. South America and South Africa
D. East Asia with Persia
Answer: C
10. The term “Silk Route” in the ancient period refers to (CTET 2022)
A. the travelling route of traders from China to other countries carrying silk.
B. Sea routes connecting countries in which silk traders sold their products.
C. roads connecting all the countries in which mulberry plants were cultivated.
D. road and sea routes in which silk products were traded.
Answer: A
11. Who started the ‘Silk-route’ (Marg) for Indians? (UKPSC RO/ARO 2016)
A. Kanishka B. Harshwardhan C. Ashok D. Fahien
Answer: A
12. With reference to ancient South India, Korkai, Poompuhar, and Muchiri were well-known as (UPSC 2023)
A. capital cities B. ports C. centres of iron-and-steel D. making shrines of Jain Tirthankaras
Answer: B
13. Two thousand years ago, a trader narrates that he has been to Gaza, Petra and Apologos. Which of the following trade routes has he travelled through? (CTET 2022)
A. Route controlled by Roman emperors
B. Route under the rulers of Persia
C. Route controlled by Kushanas
D. Route under the rulers of China
Answer: A
14. Red sea is an example of: (UPPSC Civil Service 2017)
A. Volcanic valley B. Eroded valley C. Axial trough D. U-shaped valley
Answer: C
15. In which Indian state was the ancient sea port 'Muziris' located? (UP Police SI 2017)
A. Kerala B. Gujarat C. Karnataka D. Tamil Nadu
Answer: A
16. Regarding the Indus Valley Civilization, consider the following statements: (UPSC 2011)
1. It was predominantly a secular civilization and the religious element, though present, did not dominate the scene.
2. During this period, cotton was used for manufacturing textiles in India.
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
Answer: C
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G20 DECLARATION ON HEALTH
1. Context
- India's G20 presidency placed a strong emphasis on addressing health-related challenges, particularly in light of the disruptions caused by the COVID-19 pandemic.
- The recently released G20 New Delhi Leaders' Declaration highlights three key health priorities, along with notable achievements in the realm of digital health innovation and medical countermeasures.
2. Priorities for Health Resilience
- Resilient Health Systems: One of India's priorities was to build robust systems for health emergency prevention, preparedness, and response. This emphasis is aimed at equipping countries to handle health crises efficiently.
- Pharmaceutical Cooperation: India sought to strengthen international cooperation in the pharmaceutical sector, particularly ensuring equitable availability and access to vaccines, diagnostics, and therapeutics during pandemics.
- Digital Health Solutions: The third priority centred on creating a platform for sharing digital health innovations and solutions, facilitating better and universal health coverage. Notable examples included India's CoWIN and e-Sanjeevani.
3. Launch of the Global Initiative on Digital Health (GIDH)
- Digital Health Programme: With the pandemic underscoring the significance of digital health innovations, India committed to developing the Global Initiative on Digital Health (GIDH). This initiative encompasses an investment tracker, a repository of digital health solutions, knowledge sharing, and an ask tracker to meet countries' specific needs.
- Scaling Up Initiatives: India's GIDH aimed to combat the problem of numerous similar initiatives being launched globally without scalability. Non-profit organizations have pledged support for this initiative.
- Ayushman Bharat Digital Mission: The Ayushman Bharat Digital Mission, a part of GIDH, has created unique IDs and integrated 110 digital health services as of August 2023. However, concerns about data protection and privacy have been raised.
4. Interim Medical Countermeasure Platform
- Equitable Access: While no consensus was reached on creating a permanent platform for equitable access to medical countermeasures during pandemics, an interim platform was proposed to promote research and manufacturing until a legally binding treaty was agreed upon.
- Inclusive Leadership: The interim platform is intended to have an inclusive decision-making arrangement, representing low- and middle-income countries and convened by the WHO.
- Controversy: Some countries, particularly G7 nations with a majority of patents for medical countermeasures, have pushed for this interim platform. However, concerns exist that it may favour G7 countries and hinder efforts for a binding pandemic treaty.
5. Integration of Traditional Medicine
- Global Summit: India's G20 presidency hosted a global summit on traditional medicine, aiming to integrate evidence-based traditional practices with modern medicine.
- Scientific Validation: The outcome document emphasized the potential of evidence-based traditional and complementary medicine practices in public health delivery, provided they undergo rigorous scientific validation.
6. The Way Forward
- India's G20 health priorities and achievements underscore the importance of global cooperation in addressing health challenges.
- While significant progress has been made, challenges such as equitable access and data privacy persist, emphasizing the need for ongoing international collaboration in the health sector.
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For Prelims: G20, COVID-19, New Delhi Declaration, pharmaceutical sector, CoWIN, e-Sanjeevani, universal health coverage, Digital Health Programme, Global Initiative on Digital Health, Ayushman Bharat Digital Mission, WHO, G7,
For Mains:
1. Evaluate the role of traditional medicine in public health delivery, as emphasized in the G20 declaration. How can evidence-based traditional and complementary medicine practices be integrated with modern healthcare systems? (250 Words)
2. Explain the objectives and components of the Global Initiative on Digital Health (GIDH) launched under India's G20 presidency. How can GIDH help address the digital health needs of member states and promote equitable access to healthcare solutions? (250 Words)
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Previous Year Questions
1. With reference to the “G20 Common Framework”, consider the following statements: (UPSC 2022)
1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. 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 Answer: C
2. In which one of the following groups are all the four countries members of G20?
(UPSC 2020)
A. Argentina, Mexico, South Africa and Turkey
B. Australia, Canada, Malaysia and New Zealand
C. Brazil, Iran, Saudi Arabia and Vietnam
D. Indonesia, Japan, Singapore and South Korea
Answer: A
3. In the context of bilateral trade negotiations between India and the European Union, what is the difference between European Commission and European Council? (UPSC 2010)
1. European Commission represents the EU in trade negotiations whereas the European Council participates in the legislation of matters pertaining to economic policies of the European Union.
2. European Commission comprises of the Heads of State or government of member countries whereas the European Council comprises of the persons nominated by European Parliament. 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
Answer: D
4. In the context of vaccines manufactured to prevent COVID-19 pandemic, consider the following statements: (UPSC 2022)
1. The Serum Institute of India produced COVID-19 vaccine named Covishield using mRNA platform.
2. Sputnik V vaccine is manufactured using vector based platform.
3. COVAXIN is an inactivated pathogen based vaccine.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
5. With reference to the Neem tree, consider the following statements: (UPSC 2014)
1. Neem oil can be used as a pesticide to control the proliferation of some species of insects and mites.
2. Neem seeds are used in the manufacture of biofuels and hospital detergents.
3. Neem oil has applications in the pharmaceutical industry.
Which of the statements given above is/are correct?
A. 1 and 2 only B. 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: C
6. Consider the following: (UPSC 2022)
1. Aarogya Setu
2. CoWIN
3. DigiLocker
4. DIKSHA
Which of the above are built on top of open-source digital platforms?
A. 1 and 2 only B. 2, 3 and 4 only C. 1, 3 and 4 only D. 1, 2, 3 and 4
Answer: D
7. eSanjeevani, the free telemedicine service of the Government of India, was recently integrated with the (NDA 2022)
A. Ayushman Bharat Digital Mission
B. Aam Aadmi Bima Yojana
C. Pradhan Mantri Suraksha Bima Yojana
D. Universal Health Insurance Scheme
Answer: A
8. With reference to Ayushman Bharat Digital Mission, consider the following statements: (UPSC 2022)
1. Private and public hospitals must adopt it.
2. As it aims to achieve universal health coverage, every citizen of India should be part of it ultimately.
3. It has seamless portability across the country.
Which of the statements given above is/are correct?
A. 1 and 2 only B. 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
9. 'Universal Health Converge: Leaving no one behind' is the theme of: (BHU Staff Nurse 2019)
A. Ayushman Bharat
B. Janani Suraksha Yojana
C. RashtriyaBal Suraksha Karyakram
D. 72nd session of WHO
Answer: D
10. With reference to the G-7 Summit held in June 2021, which of the following statements is/are correct ? (UPPSC Combined State Exam 2021)
1. United Kingdom was the Chair of the Summit.
2. Brazil was invited to the Summit as a guest country.
Select the correct answer using the codes given below.
A. Only 1 B. Only 2 C. both 1 and 2 D. Neither 1 nor 2
Answer: A
11. Below given Countries are the part of G7, except (Karnataka Police Constable 2020)
A. India B. United States of America C. United Kingdom D. Italy
Answer: A
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RAJYA SABHA
- Rajya Sabha, or the Council of States, has 245 seats. Leave aside reaching the halfway mark of 123, no ruling party has ever touched the 100 mark in the last three-and-a-half decades
- Rajya Sabha is a permanent House and cannot be dissolved. To ensure continuity, one-third of its members retire after every second year, under Article 83(1) of the Constitution, and “biennial elections” are held to fill these vacancies. The term of a member is six years
- Out of the 245 members, 12 are nominated by the President and 233 are representatives of the States and Union territories of Delhi and Puducherry
- Vacancies arising due to resignation, death or disqualification are filled up through bypolls, and those elected serve out the remainder of their predecessors’ term
- Under Article 80(3), the 12 nominated members should have special knowledge or practical experience in matters like literature, science, art etc.
- A nominated member may join a party within six months of taking a seat
- Rajya Sabha MPs are elected by MLAs through an indirect election. Article 80(4) provides that members shall be elected by the elected members of state Assemblies through a system of proportional representation by means of a single transferable vote.
- The Fourth Schedule to the Constitution provides for allocation of Rajya Sabha seats to the states and Union Territories, on the basis of the population of each state
- For instance, there are 31 Rajya Sabha seats in Uttar Pradesh and 1 in Goa.
- Elections are held there are more candidates than vacancies; otherwise, candidates are elected unopposed.
- The number of votes a candidate requires depends on the number of vacancies and the strength of the House.
If there is only one vacancy, the required quota under the Election Commission’s Conduct of Election Rules, 1961, is calculated by taking the number of votes polled, divided it by 2, and adding 1.
For example, if 100 votes are polled in an Assembly, the Rajya Sabha candidate would need:
100/2 + 1 = 51 votes
- If there is more than one vacancy, the equation is based on an assigned value of 100 for every first-preference vote.
- The values of the votes credited to all candidates are totalled. The total is divided by 1 more than the number of vacancies, and 1 is added to this quotient
For example, if 100 members of an Assembly vote for 3 Rajya Sabha vacancies, the required quota by any candidate would be
(100 × 100)/(3 + 1) + 1 = 2501
- If for any seat, candidates fail to get the specified number, the second-preference votes will be taken into account, but with a lower value
The Rajya Sabha, often referred to as the Council of States, is one of the two houses of the Parliament of India. The other house is the Lok Sabha, also known as the House of the People. The Rajya Sabha is the upper house of India's bicameral parliamentary system, while the Lok Sabha is the lower house. Here are some key features and functions of the Rajya Sabha:
1. Composition: The Rajya Sabha is composed of members who are not directly elected by the people of India but are elected by the elected members of the State Legislative Assemblies, as well as members nominated by the President of India. The Constitution of India provides for a fixed number of 250 members in the Rajya Sabha, with 12 members nominated by the President for their expertise in various fields.
2. Term: Members of the Rajya Sabha serve a six-year term, with one-third of the members retiring every two years. This rotation ensures continuity in the functioning of the house.
3. Representation: The Rajya Sabha represents the interests of the states and union territories of India. The number of seats allocated to each state and union territory is determined by their population and other factors.
4. Role in Legislation: The Rajya Sabha plays a crucial role in the legislative process. It reviews and amends bills passed by the Lok Sabha. If there is a disagreement between the two houses on a particular bill, they can hold joint sittings to resolve the differences.
5. Special Powers: The Rajya Sabha has special powers related to certain types of legislation, including bills related to the creation or abolition of states, changes in the boundaries of states, and matters affecting the powers of the President under the Constitution.
6. Representation of Interests: The Rajya Sabha provides a platform for the states and union territories to voice their concerns and interests at the national level. It ensures that regional and state-level issues are taken into account in the decision-making process.
7. Expertise and Diversity: The Rajya Sabha includes nominated members who are experts in various fields such as literature, art, science, and social service. This adds diversity and expertise to the house's composition.
8. Committee Work: Like the Lok Sabha, the Rajya Sabha has various committees that play a critical role in examining and analyzing various issues, proposed legislation, and government policies. These committees help in in-depth scrutiny and discussions.
9. No Confidence Motions: While the Lok Sabha can pass a motion of no confidence against the government, the Rajya Sabha cannot. However, it can express its lack of confidence through other means, such as discussions and debates.
10. Equal Legislative Powers: In most areas of legislation, both the Lok Sabha and the Rajya Sabha have equal legislative powers. However, in the case of a money bill (related to taxation or government expenditure), the Lok Sabha has the final say.
- Rajya Sabha enjoys some special powers.
- If it passes a resolution by a majority of not less than two-thirds of members present and voting, saying that it is “necessary or expedient in the national interest” that Parliament should make a law on a matter enumerated in the State List, Parliament becomes empowered to make a law on the subject.
- Such a resolution remains in force for a maximum of one year but this period can be extended by one year at a time by passing a similar resolution
- A similar route can be adopted for recommending creation of one or more All India Services common to the Union and the states. Parliament becomes empowered to create such services
- Also, Rajya Sabha has a role to play if the President, as empowered by the Constitution, issues proclamations in the event of national emergency, in the event of failure of constitutional machinery in a State, or in the case of financial emergency”.
- Every such proclamation has to be approved by both Houses of Parliament within a stipulated period
- Under certain circumstances, however, Rajya Sabha enjoys special powers
- If a proclamation is issued at a time when Lok Sabha has been dissolved or the dissolution of Lok Sabha takes place within the period allowed for its approval, then the proclamation remains effective, if the resolution approving it is passed by Rajya Sabha within the period specified under Articles 352, 356 and 360 of the Constitution.
In the Indian parliamentary system, money bills have special significance, and their handling differs between the two houses of Parliament, namely the Lok Sabha (House of the People) and the Rajya Sabha (Council of States). Here's how the Rajya Sabha deals with money bills:
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Introduction in the Lok Sabha: Money bills, which exclusively deal with matters related to taxation, government expenditure, loans, and the Consolidated Fund of India, can only be introduced in the Lok Sabha (Article 109 of the Indian Constitution). The Rajya Sabha has no power to initiate or amend money bills.
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Passing by the Lok Sabha: After a money bill is introduced in the Lok Sabha, it is subjected to debate and voting in that house. Once passed by the Lok Sabha, it is sent to the Rajya Sabha for its consideration.
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Role of the Rajya Sabha: The Rajya Sabha's role in the passage of money bills is limited. It can only make recommendations and suggest amendments to the bill. Unlike other bills, the Rajya Sabha cannot reject or indefinitely delay the passage of a money bill. It must return the bill to the Lok Sabha within 14 days.
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Consideration of Recommendations: The Lok Sabha may consider the recommendations made by the Rajya Sabha but is not bound to accept them. It can either accept or reject the proposed amendments.
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Presidential Assent: Once the Lok Sabha and the Rajya Sabha have completed their roles, the money bill is sent to the President of India for their assent. The President's assent is usually a formality for money bills because the Rajya Sabha cannot block them.
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No Joint Sitting: Unlike other bills where a joint sitting of both houses can be called to resolve differences, a joint sitting is not applicable for money bills. Money bills are exclusively within the domain of the Lok Sabha
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For Prelims: Rajyasabha, Loksabha, Money bill, Financial Bill
For Mains: 1.Discuss the constitutional provisions and functions of the Rajya Sabha in the Indian parliamentary system. How does it differ from the Lok Sabha in terms of representation and powers? (15 marks)
2.Examine the role of the Rajya Sabha in the legislative process in India. How does it contribute to the scrutiny and review of bills passed by the Lok Sabha? Provide examples to illustrate its significance. (20 marks)
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Previous Year Questions 1. Regarding Money bill, Which of the following statements is not correct? (UPSC CSE 2018) A. A bill shall be deemed to be a money bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax B. A Money bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India C. A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India D. A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India Answer (C) |
GRESHAM'S LAW
1. Context
- Gresham's law, came into play most recently during the economic crisis in Sri Lanka last year, during which the Central Bank of Sri Lanka fixed the exchange rate between the Sri Lankan rupee and the U.S. dollar a financial principle named after English financier Thomas Gresham, revolves around the notion that "bad money drives out good."
- This concept becomes relevant when a government fixes the exchange rate of two currencies, creating a disparity with the market exchange rate.
- This pricing manipulation results in the undervalued currency being pushed out of circulation while the overvalued currency struggles to find buyers.
2. Gresham’s law
- Gresham’s law refers to the dictum that “bad money drives out good.” Gresham’s law
comes into play when the exchange rate between two money or currencies is fixed by
the government at a certain ratio that is different from the market exchange rate. - Such price fixing causes the undervalued currency that is, the currency whose price is fixed at a level below the market rate to go out of circulation.
- The overvalued currency, on the other hand, remains in circulation but it does not find enough buyers.
3. The Dynamics of Exchange Rates
- The market exchange rate represents an equilibrium price where currency supply equals demand.
- Currency supply increases with rising prices and decreases with falling prices, while currency demand falls as prices rise and rises as prices fall.
- When a government fixes a currency's price below the market exchange rate, it disrupts this delicate balance, leading to adverse consequences.
- Price fixing by the government causes a decrease in the supply of the undervalued currency and an increase in its demand.
- Consequently, this intervention can trigger a currency shortage, where demand surpasses supply.
- The undervalued currency becomes scarce, prompting individuals to seek alternatives.
4. Origin of the Term
- Thomas Gresham, an English financier who advised the English monarchy on financial matters, lent his name to this principle.
- Gresham's law is not limited to paper currencies but extends to commodity currencies and various goods.
- Whenever a commodity's price, whether used as money or not, is artificially set below its market value, it tends to vanish from formal markets.
- Often, goods may even flow out of a country through black markets when they are undervalued by government actions.
5. Application to Commodity Money
- Gresham's law is readily observed when governments fix the exchange rate or price of commodity money, such as gold and silver coins, significantly below their market value.
- In such instances, holders of commodity money prefer not to offer it at the government-set price.
- Some may even choose to melt these coins to extract the pure gold and silver, which they can then sell at a higher market rate, circumventing the government's price controls.
- One example of Gresham's law is the debasement of the Roman currency in the 3rd century AD. The Roman government began to debase the currency by reducing the amount of silver in each coin.
- This led to the less valuable coins becoming more common in circulation, while the more valuable coins were hoarded or melted down.
- Another example of Gresham's law is the hyperinflation in Germany in the early 1920s.
- The German government printed so much money that the value of the currency plummeted.
- This led to people using the less valuable paper currency for everyday transactions and hoarding the more valuable gold and silver coins.
6. The Way Forward
- Gresham's law serves as a valuable insight into the dynamics of currency and commodity markets.
- It highlights the consequences of government intervention in fixing prices, underscoring the tendency for "bad money" (undervalued currency) to displace "good money" (currency reflecting market value).
- Understanding Gresham's law can provide valuable lessons for policymakers and individuals alike in navigating the complexities of monetary systems and exchange rates.
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For Prelims: Gresham's law, hyperinflation, debasement of currency, foreign exchange reserves,
For Mains:
1. Explain Gresham's law and its relevance in the context of currency exchange rates. How does government intervention in fixing exchange rates affect the dynamics of currency supply and demand? (250 Words)
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Previous Year Questions
1. The Gresham's law specifies that (UP TGT Commerce 2021)
A. New money drives old money out of circulation
B. Good money drives bad money out of circulation
C. Bad money drives good money out of circulation
D. Paper money drives metallic money out of circulation
Answer: C
2. Gresham's law comes into operation when: (OPSC OAS 2018)
A. Good money is hoarded
B. Good money is melted
C. Good money is exported
D. Good money is hoarded, melted and exported.
Answer: A
3. Economic growth is normally coupled with? (ACC 122 CGAT 2020)
A. Deflation
B. Inflation
C. Stagflation
D. Hyperinflation
Answer: B
4. Which one of the following statements correctly describes the meaning of legal tender money? (UPSC 2018)
A. The money which is tendered in courts of law to defray the feel of legal cases
B. The money which a creditor is under compulsion to accept in settlement of his claims
C. The bank money in the form of cheques, drafts, bills of exchange, etc.
D. The metallic money in circulation in a country
Answer: B
5. Which one of the following groups of items is included in India's foreign exchange reserves? (UPSC 2013)
A. Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries B. Foreign-currency assets, gold holdings of the RBI and SDRs
C. Foreign-currency assets, loans from the World Bank and SDRs
D. Foreign-currency assets, gold holdings of the RBI and loans from the World Bank
Answer: B
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ECONOMIC AND FINANCIAL DIALOGUE (EFC)
- India and UK reiterated the commitment to deepen their collaboration on Financial Services, building on each other’s strengths and supporting mutual aspirations towards financial inclusion and sustainable development
- The focus of the dialogue was also towards enhancement of the knowledge exchange, cooperation and support between India and UK to further the infrastructure development priorities, robust FinTech partnership and Sustainable Finance towards long-term growth objectives
- Both sides also deliberated on enhancing mutual cooperation on macroeconomic and multilateral issues
- The Dialogue concluded with the adoption of the Joint Statement by Union Finance Minister of India and Chancellor of Exchequer of United Kingdom
The Economic and Financial Dialogue (EFD) is a high-level forum between two countries to discuss and collaborate on economic and financial matters of mutual interest.
It is a bilateral dialogue, which means that it is held between two countries only.
The EFD can be held between any two countries, but it is most commonly held between countries that have strong economic ties or that are working together on a particular economic or financial issue.
The EFD is typically held once a year, but it can be held more or less frequently depending on the needs of the two countries.
The dialogue is usually held at the level of the finance ministers or central bank governors of the two countries.
However, it can also be held at a lower level, such as the level of deputy ministers or senior officials.
The EFD typically covers a wide range of economic and financial issues, such as:
- Trade and investment
- Financial regulation
- Monetary policy
- Fiscal policy
- Infrastructure development
- Sustainable finance
- Climate change
- The India-UK Economic and Financial Dialogue (EFD) is a high-level forum between India and the UK to discuss and collaborate on economic and financial matters of mutual interest.
- It was established in 2005, in pursuance of the proposals set out in the India-UK Joint Declaration signed by the Prime Ministers of India and the UK in September 2004.
- The EFD is typically held once a year, but it can be held more or less frequently depending on the needs of the two countries.
- The dialogue is usually held at the level of the finance ministers or central bank governors of the two countries.
- However, it can also be held at a lower level, such as the level of deputy ministers or senior officials.
- The EFD has been a successful forum for India and the UK to build trust and cooperation, and to work together to address common challenges.
- It has helped to improve trade and investment between the two countries, strengthen financial regulation and cooperation, coordinate monetary and fiscal policies, promote infrastructure development, and address climate change and other sustainable development challenges
- The two sides also agreed to work together to strengthen the financial and economic relationship between India and the UK.
- They committed to furthering cooperation on financial services, sustainable finance, and infrastructure development. They also agreed to hold the next EFD in India in 2024
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For prelims: FTA, Economic and Financial Dialogue (EFC), Bilateral Agreements
For Mains: 1.Discuss the objectives and significance of the India-UK Economic and Financial Dialogue (EFD) in strengthening bilateral economic ties. How does it contribute to the broader economic partnership between the two nations? (15 marks)
2.India and the United Kingdom share a strong interest in financial services and technology. Elaborate on the discussions and agreements related to financial services and fintech collaboration during the India-UK Economic and Financial Dialogue (EFD). How does this benefit both nations? (15 marks)
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Previous Year Questions
1. Consider the following Countries (UPSC CSE 2018)
1. Australia 2. Canada 3.China 4. India 5. Japan 6. USA
Which of the above are among the free trade partners of ASEAN?
A. 1, 2, 4, 5
B. 3, 4, 5, 6
C. 1, 3, 4, 5
D. 2, 3, 4, 6
Answer (C)
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