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DAILY CURRENT AFFAIRS, 01 FEBRUARY 2024

UNLAWFUL ACTIVITIES (PREVENTION) ACT (UAPA)

 
 
 
1. Context
 
 
Five of the six people arrested in the Parliament security breach case told the Patiala House Court on Wednesday that they were given electric shock and forced to sign blank papers to confess their alleged crimes and association with political parties. They have been charged under the Unlawful Activities (Prevention) Act, 1967
 
 
2. About Unlawful Activities (Prevention) Act (UAPA)
 

The Unlawful Activities (Prevention) Act (UAPA) is an Indian law that was enacted in 1967 to effectively prevent unlawful activities that pose a threat to the sovereignty and integrity of India.

Key highlights of the UAPA

  • Objective: The primary objective of the UAPA is to provide law enforcement agencies with effective tools to combat terrorism and other activities that threaten the security of the nation.
  • Definition of Unlawful Activities: The act defines unlawful activities to include actions that intend to or support the cession of a part of the territory of India or disrupt the sovereignty and integrity of the country.
  • Powers of Designation: The government has the authority to designate an organization as a terrorist organization if it believes that such an organization is involved in terrorism. This designation has significant legal consequences, including the freezing of assets.
  • Powers of Arrest and Detention: The UAPA provides law enforcement agencies with powers of arrest and detention to prevent individuals from engaging in unlawful activities. The act allows for preventive detention to curb potential threats before they materialise.
  • Banning of Terrorist Organizations: The government can proscribe organizations as terrorist organizations, making their activities illegal. This includes banning these organisations, freezing their assets, and taking other measures to curb their operations.
  • Admissibility of Confessions: The UAPA allows for confessions made to police officers to be admissible in court, subject to certain safeguards. This provision has been a point of contention, with concerns about potential misuse and coercion.
  • Designation of Individuals as Terrorists: In addition to organizations, the UAPA allows the government to designate individuals as terrorists. This designation carries legal consequences, including restrictions on travel and freezing of assets.
  • Amendments and Stringency: Over the years, the UAPA has undergone several amendments to strengthen its provisions and make it more effective in dealing with emerging threats. However, these amendments have also been criticized for potential violations of civil liberties.
  • International Cooperation: The UAPA allows for cooperation with foreign countries in matters related to the prevention of unlawful activities. This includes extradition of individuals involved in such activities.
 

3. Unlawful Activities (Prevention) Act (UAPA) and Human Rights

 

The Unlawful Activities (Prevention) Act (UAPA) and human rights lie in the impact the act can have on various fundamental rights guaranteed by the Constitution of India and international human rights standards.

The key points connecting the UAPA and human rights:

  • The UAPA allows for preventive detention, which means individuals can be detained without formal charges based on suspicions of involvement in unlawful activities. This raises concerns about the right to liberty, as individuals may be deprived of their freedom without the presumption of innocence until proven guilty.
  • The admissibility of confessions made to police officers under the UAPA raises issues related to the right against self-incrimination. There is a risk that such confessions might be obtained under duress or coercion, compromising the fairness of legal proceedings.
  • Designating individuals as terrorists and proscribing organizations without due process may impinge on the right to a fair trial. This includes the right to be informed of charges, the right to legal representation, and the right to present a defense.
  • The UAPA provides authorities with the power to proscribe organizations as terrorist organizations, limiting their activities. Critics argue that this may infringe upon the right to freedom of association, particularly when such designations are made without sufficient evidence or proper legal procedures.
  • The potential for misuse of the UAPA to target individuals or organizations critical of the government raises concerns about freedom of expression. If the act is used to suppress dissent or stifle legitimate political or social activities, it can undermine this fundamental right.
  • The UAPA grants authorities the power to intercept communications and conduct surveillance on individuals suspected of engaging in unlawful activities. This raises concerns about the right to privacy, as individuals may be subjected to intrusive surveillance without adequate safeguards.
  • Human rights standards require that any restrictions on rights, such as those imposed by the UAPA, must be proportionate and necessary for achieving a legitimate aim. Critics argue that the broad scope of the UAPA may lead to disproportionate measures that unduly restrict individual rights.
  • The UAPA's compatibility with international human rights standards, including the International Covenant on Civil and Political Rights (ICCPR), is a critical point of consideration. Ensuring that the act aligns with these standards is essential to upholding human rights principles.
 

4. Unlawful Activities (Prevention) Act (UAPA) and Article 22 of the Constitution

 

The Unlawful Activities (Prevention) Act (UAPA) and Article 22 of the Indian Constitution lie in how the UAPA's provisions for arrest and detention intersect with the constitutional safeguards provided under Article 22. 

  • Article 22 provides certain protections to individuals who are arrested or detained. It outlines the rights of arrested individuals, emphasizing safeguards to prevent arbitrary or unlawful detention.
  • Article 22(1) states that every person who is arrested and detained shall be informed, as soon as may be, of the grounds for such arrest. This provision ensures that individuals are aware of the reasons behind their arrest, preventing arbitrary or secret detentions.
  • Article 22(1) also guarantees the right of an arrested person to consult and be defended by a legal practitioner of their choice. This ensures that individuals have access to legal assistance during the legal process, contributing to a fair and just legal system.
  • The UAPA includes provisions for preventive detention, allowing authorities to detain individuals to prevent them from committing certain offences. However, Article 22(4) allows preventive detention only under specific circumstances, and certain safeguards must be followed, such as providing the detenu with the grounds for detention and an opportunity to make a representation against the detention.
  • Article 22(4) further mandates that a person detained under a law providing for preventive detention must be afforded the earliest opportunity to make a representation against the detention. Additionally, the case of every person detained is required to be placed before an advisory board within three months.
  • The UAPA allows for confessions made to police officers to be admissible in court, subject to certain safeguards. However, this provision has been a point of concern concerning Article 22, as confessions obtained under duress or coercion may violate the right against self-incrimination.
  • Article 22(2) ensures the right to be brought before the nearest magistrate within 24 hours of arrest, excluding the time necessary for the journey. This provision aims to prevent prolonged detention without judicial oversight and contributes to the right to a speedy trial.
 
 
For Prelims: Unlawful Activities (Prevention) Act, Article 22, Terrorism
For Mains: 
1. Discuss the key provisions of the Unlawful Activities (Prevention) Act (UAPA) and analyze how they may impact fundamental human rights. Elaborate on the balance between national security concerns and the protection of individual rights. (250 Words)

 

Previous Year Questions

1. Under Article 22 of the Constitution of India, with the exception of certain provisions stated there in, what is the maximum period for detention of a person under preventive detention? (MPSC 2014)

A. 2 months       B. 3 months         C. 4 months           D. 6 months

 

2. Article 22 of the Constitution ensures (CTET 2016)

A. Right not to be ill-treated during arrest or while in custody

B. Right to Constitutional Remedies

C. Right against Exploitation

D. Right to Education

Answers: 1-B, 2-A

Mains

1. Indian government has recently strengthed the anti-terrorism laws by amending the Unlawful Activities(Prevention) Act, (UAPA), 1967 and the NIA Act. Analyze the changes in the context of prevailing security environment while discussing scope and reasons for opposing the UAPA by human rights organizations. (UPSC 2019)

Source: The Indian Express

INTERNET SHUTDOWN

 

1. Context

The Supreme Court on Tuesday questioned the Union Territory of Jammu and Kashmir about the non-publication of orders for the suspension of Internet services in the UT. In this article, dated September 15, 2021, the authors talk about the importance of the Anuradha Bhasin judgment and how restricting the internet could affect the economy

2. What do the data on internet suspensions say? 

  • According to the Software Freedom Law Center (SFLC), a large services organization working in this field in India, since 2012 there gave been 665 Internet shutdowns in India to date.
  • Here, 'shutdowns' mean a total ban on mobile (3G, 4G/LTE), or fixed-line (dial-up, wired/wireless broadband) Internet, both of which may be shut down.
  • According to Internet freedom and tech policy organizations, India is the leading country (by number) for Internet disruption incidents and the frequency of shutdowns.
  • This year, 59 shutdowns have been enforced, according to SFLC, which determines shutdowns based on government orders and media reports.

3. Internet shutdowns in States

  • Jammu and Kashmir have had more than 411 shutdowns since 2012, and the longest one went on far more than 552 days after the abrogation of the special status of the erstwhile state.
  • Among the states, Rajasthan has had the most shutdowns with 88 such instances in almost 10 years. The reasons have ranged from protests by the Gujjar community for reservation, to preventing cheating in the Rajasthan Eligibility Examination for Teachers (REET) held to select primary school teachers last year, which was taken by an estimated 16 lakh aspirants.

4. How do governments justify shutting down the Internet?

  • Governments say misinformation and rumors can lead to deterioration in law and order in an area, so curbing the flow of information helps maintain peace among communities in times of crisis.
  • But many experts have countered that in the absence of information sources like news outlets, rumors lly end up spreading even more.
  • Also, important services such as those related to payments, banking, and educational access, all get cut in an instant, resulting in disruptions at multiple levels and economic losses.

5. Provisions regarding Internet Shutdowns in India

India telegraph act 1885
Section 7 of the aforementioned act has been amended to include temporary suspension of telecom services (public emergency and public safety)rules.
As per rules, only the home secretary of the union or the state can issue such an order, it has to be reviewed by a committee within 5 days. such an order shall not be operational for more than 15 days.
Powers under section 144 CrPC
In an unavoidable circumstances, the order can be issued by an office of the rank of joint secretary or above, authorized by the union or state home secretary.
Section 69(A) of the information technology Act 2008
It gives the government power to block particular websites and not the internet as a whole.

6. Arguments favoring Internet Shutdowns

Deterrent to hate speech and fake news
The Internet has become a medium for spreading animosity and hatred against various religious and ethnic groups. Xenophobic tendencies can be effectively tackled.
Ensure peace and stability
Internet shutdowns may be seen as a preventive measure used by the law & order administration as a last resort to address mass protests, and civil unrest, curbing the spread of misinformation to ensure peace and public safety.
Avoid Anarchy
In certain extreme situations where rumors through Whatsapp and other social media start playing a disruptive role, it may become necessary to have internet shutdowns.

7. Arguments against Internet Shutdowns

Human rights violations
Kerela high court's judgment in Faheema Shirin v/s State of Kerela, where the right to internet access was recognized as a fundamental right forming a part of the right to privacy and the right to education under Article 21 of the constitution.
Social Cost
Essential services like education, Health, Public services, etc are held back. Internet shutdown is also causing a digital divide and disparity in education, especially in the instances of the COVID-19 pandemic.
Fails to achieve the objective
There is no conclusive evidence showing that Internet shutdowns lead to the maintenance or restoration of public order.
Social Chaos
Shutting down the internet results in an information blackout that can also create hysteria, and panic and can result in even more discord.

For Prelims & Mains

For Prelims: Software Freedom Law Center (SFLC), Jammu and Kashmir, India telegraph act 1885, and Section 69(A) of the information technology Act 2008.
For Mains: 1. India is sometimes referred to as the ‘Internet shutdown capital of the world’. Discuss the measures to reduce instances of internet shutdown.
 
Source: The Indian Express
 

GOODS AND SERVICE TAX (GST)

 
 
1. Context
 

India’s Goods and Services Tax (GST) regime delivered its second-highest monthly revenues of ₹1,72,129 crore in January, as per data collected by Wednesday evening and shared by the Finance Ministry.

While the ultimate overall GST tally for January is likely to be higher as taxpayers will be able to file returns till the midnight of January 31, the revenues reported till 5 pm reflected a 10.4% uptick, a tad faster than the three-month low of 10.3% in December.

 
2. What is the Goods and Services Tax (GST)?
  • The Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services at each stage of the production and distribution chain. It is a comprehensive indirect tax that aims to replace multiple indirect taxes imposed by the central and state governments in India.
  • GST is designed to simplify the tax structure, eliminate the cascading effect of taxes, and create a unified national market. Under the GST system, both goods and services are taxed at multiple rates based on the nature of the product or service. The tax is collected at each stage of the supply chain, and businesses are allowed to claim a credit for the taxes paid on their inputs.
  • The GST system in India came into effect on July 1, 2017, replacing a complex tax structure that included central excise duty, service tax, and state-level taxes like VAT (Value Added Tax), among others. The GST Council, consisting of representatives from the central and state governments, is responsible for making decisions on various aspects of GST, including tax rates and rules.
  • GST is intended to create a more transparent and efficient tax system, reduce tax evasion, and promote economic growth by fostering a seamless flow of goods and services across the country. It has a significant impact on businesses, as they need to comply with the new tax regulations and maintain detailed records of their transactions for GST filing

3.Goods and Services Tax (GST) and 101st Amendment Act, 2016

The Goods and Services Tax (GST) in India was introduced through the 101st Amendment Act of 2016. This constitutional amendment was a crucial step in the implementation of GST, which aimed to create a unified and comprehensive indirect tax system across the country.

Here are some key points related to the 101st Amendment Act and GST:

 

  • The 101st Amendment Act was enacted to amend the Constitution of India to pave the way for the introduction of the Goods and Services Tax.
  • It added a new article, Article 246A, which confers concurrent powers to both the central and state governments to levy and collect GST
  • The amendment led to the creation of the GST Council, a constitutional body consisting of representatives from the central and state governments. The council is responsible for making recommendations on GST rates, exemptions, and other related issues
  • The amendment introduced a dual GST structure, where both the central government and the state governments have the power to levy and collect GST on the supply of goods and services
  • For inter-state transactions, the 101st Amendment Act provides that the central government would levy and collect the Integrated Goods and Services Tax (IGST), which would be a sum total of the central and state GST
  • The amendment also included a provision for compensating states for any revenue loss they might incur due to the implementation of GST for a period of five years
The 101st Amendment Act was a critical legislative step that provided the constitutional framework for the implementation of GST in India. It addressed the need for a unified tax system, simplifying the tax structure and promoting a common market across the country. The subsequent establishment of the GST Council has played a pivotal role in the ongoing management and evolution of the GST system in India
 
4. What are the different types of Goods and Services Tax (GST)?

In India, the Goods and Services Tax (GST) is structured into different tax rates based on the nature of the goods and services. As of my last knowledge update in January 2022, the GST rates are divided into multiple slabs. It's important to note that tax rates may be subject to changes, and new amendments could have been introduced since then. As of my last update, the GST rates are as follows:

  • Nil Rate:

    • Some goods and services are categorized under the nil rate, meaning they attract a 0% GST. This implies that no tax is levied on the supply of these goods or services.
  • 5% Rate:

    • This is a lower rate, applicable to essential goods such as certain food items, medical supplies, and other basic necessities.
  • 12% Rate:

    • Goods and services falling in this category attract a 12% GST rate. Items such as mobile phones, processed foods, and certain services fall under this slab.
  • 18% Rate:

    • A higher rate of 18% is applicable to goods and services such as electronic items, capital goods, and various services.
  • 28% Rate:

    • The highest GST rate of 28% is applied to luxury items, automobiles, and certain goods and services that are considered non-essential or fall into the luxury category.
  • Compensation Cess:

    • In addition to the above rates, some specific goods attract a compensation cess, which is levied to compensate the states for any revenue loss during the transition to GST. This is often applied to items like tobacco and luxury cars.
  • Zero Rate:

    • Certain categories of goods and services may be specified as "zero-rated," which means they are effectively taxed at 0%. This is different from the nil rate, as it allows businesses to claim input tax credit on inputs, capital goods, and input services.
  • Exempt Supplies:

    • Some goods and services may be exempt from GST altogether. This means that they are not subject to any GST, and businesses cannot claim input tax credit on related inputs
 
5.Central GST (CGST), State GST (SGST), Union territory GST (UTGST) and Integrated GST (IGST)
 
 
Subject Central GST (CGST) State GST (SGST) Union Territory GST (UTGST) Integrated GST (IGST)
Levied by Central Government Respective State Governments Union Territory Administrations Central Government (on inter-state transactions)
Applicability On intra-state supplies (within the same state) On intra-state supplies (within the same state) On intra-union territory supplies (within the same union territory) On inter-state supplies (across states or union territories)
Rate Determination Determined by the Central Government Determined by the Respective State Government Determined by the Union Territory Administration IGST rate is a sum of CGST and SGST rates
Revenue Collection Collected by the Central Government Collected by the Respective State Government Collected by the Union Territory Administration Collected by the Central Government (on inter-state transactions)
Utilization of Revenue Shared between Central and State Governments Retained by the Respective State Government Retained by the Union Territory Administration Shared between Central and State Governments
Purpose Part of the dual GST structure, meant to cover central taxes Part of the dual GST structure, meant to cover state taxes Applicable in union territories for intra-territory supplies Applied to regulate and tax inter-state supplies
Input Tax Credit (ITC) ITC available for CGST paid on inputs and services ITC available for SGST paid on inputs and services ITC available for UTGST paid on inputs and services ITC available for both CGST and SGST paid on inputs
Tax Jurisdiction Applies within a particular state Applies within a particular state Applies within a particular union territory Applies to transactions across states and union territories
GSTN Portal for Filing Returns Central GSTN portal State-specific GSTN portals UTGSTN portal Integrated GSTN portal
 
 
6.What are the benefits of Goods and Services Tax (GST) in India?
 
The Goods and Services Tax (GST) in India was implemented with the aim of bringing about significant reforms in the indirect tax structure. Several benefits have been associated with the introduction of GST.
 
Here are some key advantages:
 
  • GST replaced multiple indirect taxes levied by the central and state governments, simplifying the tax structure. This streamlined system reduces the complexity of compliance for businesses
  • GST eliminates the cascading effect of taxes, where taxes are levied on top of other taxes. With a seamless credit mechanism, businesses can claim input tax credit on the taxes paid on their purchases, leading to a more transparent and efficient system
  • GST has facilitated the creation of a common national market by harmonizing tax rates and regulations across states. This has reduced trade barriers and promoted the free flow of goods and services throughout the country
  • The GST system has incorporated technology-driven processes, including electronic filing and real-time reporting, making it harder for businesses to evade taxes. This has contributed to increased tax compliance
  • The input tax credit mechanism under GST benefits manufacturers, as they can claim credits for taxes paid on raw materials and input services. This has a positive impact on the cost of production and enhances the competitiveness of Indian goods in the international market
  • GST brings transparency to the taxation system. The online filing of returns and the availability of transaction-level data make it easier for tax authorities to monitor and track transactions, reducing the scope for corruption
  • GST has replaced a complex system of filing multiple tax returns with a more straightforward mechanism. Businesses now need to file fewer returns, reducing the compliance burden
  • The implementation of GST has contributed to an improvement in the ease of doing business in India. The unified tax system has made it simpler for businesses to operate across states and has reduced the paperwork and bureaucratic hurdles associated with tax compliance
  • GST has led to the harmonization of tax rates across states and union territories, minimizing the tax rate disparities that existed earlier. This creates a more predictable tax environment for businesses
7.Goods and Services Tax (GST)-Issues and Challenge
 
  • Despite the intention to simplify the tax structure, the multi-tiered rate system (0%, 5%, 12%, 18%, and 28%) and the inclusion of cess on certain goods have introduced complexity. The classification of goods and services under different tax slabs can be challenging, leading to disputes and confusion
  • The successful implementation of GST relies heavily on technology. Issues such as technical glitches on the GSTN (Goods and Services Tax Network) portal, especially during the initial phases, have caused difficulties for businesses in filing returns and complying with regulations
  • The compliance requirements for businesses under GST, including multiple returns filing, have been perceived as burdensome. Smaller businesses, in particular, may find it challenging to adapt to the new system and comply with the various provisions
  • The transition from the previous tax regime to GST posed challenges, especially for businesses in terms of understanding the new tax structure, reconfiguring accounting systems, and ensuring a smooth transition of credits from the old tax system to the GST system
  • The classification of certain goods and services into specific tax slabs has been a source of contention. Ambiguities in classification have led to disputes and litigations, with businesses seeking clarity on the applicable tax rates
  • The implementation of GST has increased compliance costs for businesses due to the need for sophisticated IT infrastructure, the hiring of tax professionals, and efforts to ensure accurate reporting and filing
  • Challenges related to availing and matching input tax credits have been reported. Timely matching of credits and resolving discrepancies can be cumbersome, leading to concerns about the seamless flow of credit across the supply chain
  • The anti-profiteering provisions were introduced to ensure that businesses pass on the benefits of reduced tax rates to consumers. However, the implementation of anti-profiteering measures has been criticized for its complexity and potential for disputes
  • The periodic changes in the GST return filing system have created challenges for businesses in adapting their processes. Delays and complexities in return filing can affect working capital management
8.Goods and Services Tax Council (GST Council)
 
The Goods and Services Tax Council (GST Council) is a constitutional body in India that makes recommendations on the Goods and Services Tax (GST). It was established under the Constitution (122nd Amendment) Act, 2016, which introduced the GST in India

The GST Council consists of the following members:

  • The Union Finance Minister, who is the Chairperson of the Council.
  • The Union Minister of State in charge of revenue or any other Minister of State nominated by the Union Government.
  • One Minister from each state, nominated by the Governor of that state.
  • The Chief Secretary of each state, ex-officio.
  • If the President, on the recommendation of the Council, so directs, one representative of each Union territory which has a legislature, to be nominated by the Lieutenant Governor of that Union territory.
  • Three to seven members (other than Ministers) to be nominated by the Union Government, of whom at least one member shall be from the field of economics and another from the field of chartered accountancy, legal affairs or public finance
9. Way forward
 
It's important to note that the composition and structure of the GST Council may evolve over time, and there might have been changes since my last update in January 2022. To obtain the latest and most accurate information about the GST Council and its members, it is recommended to refer to official government sources or recent announcements by the relevant authorities

 

For Prelims: Economic and Social Development and Indian Polity and Governance
For Mains: General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein

General Studies III: Inclusive growth and issues arising from it

 
 
Previous Year Questions
 
1.Which of the following are true of the Goods and Services Tax (GST) introduced in India in recent times? (UGC Paper II 2020)
A. It is a destination tax
B. It benefits producing states more
C. It benefits consuming states more
D. It is a progressive taxation
E. It is an umbrella tax to improve ease of doing business
Choose the most appropriate answer from the options given below:
A.B, D and E only
B.A, C and D only
C.A, D and E only
D.A, C and E only
Answer (D)
 
Source: Indianexpress
 

INDEX OF INDUSTRIAL PRODUCTION (IIP)

 

1. Context

Output growth of India’s eight core sectors slumped to a 14-month low of 3.8% in December, compared with an 8.3% pace a year earlier and revised growth of 7.9% in November 2023
The core sectors constitute a little over 40% of the Index of Industrial Production (IIP), which had clocked an eight-month low growth of 2.4% in November and those levels may persist in December as well

2. About the Index of Industrial Production (IIP)

  • The Index of Industrial Production (IIP) is a macroeconomic indicator that measures the changes in the volume of production of a basket of industrial goods over some time.
  • It is a composite index that reflects the performance of the industrial sector of an economy.
  • The IIP is compiled and released by the Central Statistical Organisation (CSO) in India.
  • The IIP is calculated using a Laspeyres index formula, which means that the weights assigned to different industries are based on their relative importance in a base year. The current base year for the IIP is 2011-12.
  • The eight core sector industries represent about 40% of the weight of items that are included in the IIP.
  • The eight core industries are Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement and Fertilizers.
  • It covers 407 item groups included into 3 categories viz. Manufacturing, Mining and Electricity.
  • The IIP is a useful tool for assessing the health of the industrial sector and the overall economy.
  • It is used by policymakers, businesses, and investors to track trends in industrial production and make informed decisions.

3. Significance of IIP

The IIP is a significant economic indicator that provides insights into the following aspects

  • The IIP reflects the growth or decline of the industrial sector, which is a major contributor to overall economic growth.
  • The IIP measures the level of industrial activity, indicating the production volume of various industries.
  • The IIP serves as a guide for policymakers to assess the effectiveness of economic policies and make informed decisions.
  • Businesses use the IIP to assess market conditions, make production plans, and evaluate investment opportunities.
  • The IIP influences investor sentiment as it reflects the overall health of the industrial sector.

4. Service Sector and IIP

  • The IIP does not include the service sector. It focuses on the production of goods in the industrial sector, such as manufacturing, mining, and electricity.
  • The service sector is measured by a separate index, the Index of Services Production (ISP).
  • The IIP data is released monthly by the Central Statistical Organisation (CSO) in India.
  • The data is released with a lag of six weeks, allowing for the collection and compilation of information from various industries.

6. Users of IIP Data

The IIP data is used by a wide range of stakeholders, including:

  • Government agencies and central banks use the IIP to assess economic conditions and formulate policies.
  • Companies use the IIP to evaluate market trends, make production decisions, and assess investment opportunities.
  • Investors use the IIP to gauge the health of the industrial sector and make investment decisions.
  • Economic analysts and researchers use the IIP to study economic trends and develop forecasts.
  • The IIP is widely reported in the media and is of interest to the general public as an indicator of economic performance.

7. Manufacturing Drives Industrial Production Growth

  • Factory output gained on the back of a 9.3 per cent increase in manufacturing, which accounts for 77.6 per cent of the weight of the IIP (Index of Industrial Production).
  • Manufacturing output had grown by 5 per cent in July and had contracted by 0.5 per cent in August 2022.
  • In absolute terms, it improved to 143.5 in August from 141.8 in July and 131.3 in the year-ago period.
  • As per the IIP data, seven of the 23 sectors in manufacturing registered a contraction in August, with furniture, apparel, and computer and electronics among the significant non-performers.
  • Among the performing sectors, fabricated metal products, electrical equipment and basic metals fared better.
  • Garments and chemicals witnessed negative growth. This can be attributed to lower growth in exports as these two are export-dependent.
  • The electronics industry also witnessed negative growth, which again can be linked to existing high stocks and lower export demand.
  • In terms of the use-based industries, consumer durables output returned to positive territory for the second time this fiscal with 5.7 per cent growth in August, reflecting a pickup in consumption demand.
  • However, it came on the back of a 4.4 per cent contraction in consumer durables output in the year-ago period.
  • Primary, infrastructure/ construction, and capital goods recorded double-digit growth rates in August at 12.4 per cent, 14.9 per cent and 12.6 per cent, respectively.
 
For Prelims: The Index of Industrial Production (IIP), Central Statistical Organisation, 
For Mains: 
1. Discuss the significance of the Index of Industrial Production (IIP) as an economic indicator and its role in assessing the health of the industrial sector and the overall economy. (250 Words)
 
 
 Previous Year Questions
 
1. In India, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%. Which of the following are among those Eight Core Industries? (UPSC CSE 2012)
1. Cement
2. Fertilizers
3. Natural gas
4. Refinery products
5. Textiles
Select the correct answer using the codes given below:
A. 1 and 5 only       B. 2, 3 and 4 only           C. 1, 2, 3 and 4 only         D. 1, 2, 3, 4 and 5
 
Answer: C
 
 
Source: indianexpress

BUDGET SESSION OF PARLIAMENT

 
 
 
1. Context
 
On the eve of Parliament’s Budget Session, the suspension of 14 Opposition MPs 11 from Rajya Sabha and three from Lok Sabha was revoked to enable them to attend the customary President’s address to both Houses of Parliament. 
 
 
2. What is the ‘session’ of the Parliament?
  • A session of the Parliament refers to the period during which both Houses of Parliament the Lok Sabha (House of the People) and the Rajya Sabha (Council of States) conduct their business.
  • It encompasses the time between the first meeting of a House after an election or prorogation (temporary discontinuation) and its subsequent prorogation or dissolution.
  • A session is a distinct period within a parliamentary year when Members of Parliament (MPs) convene to discuss, debate, and legislate on various matters.
  • The President of India, as the head of the state, summons each House of Parliament to meet, and the session concludes with prorogation, which is a formal way of ending a session.
  • In the case of the Lok Sabha, it can also end with the dissolution of the House, leading to general elections.

 

3. Who summons each House of Parliament to meet?

The President of India summons each House of Parliament to meet, as stipulated in Article 85 of the Constitution. This power grants the President the authority to initiate parliamentary sessions and ensure the legislative and representative roles of Parliament are fulfilled.

  • The President summons each House individually, meaning both the Lok Sabha (lower house) and the Rajya Sabha (upper house) receive separate summons.
  • While Article 85 doesn't dictate specific dates for summoning, it stipulates a maximum interval of six months between the last sitting of one session and the first sitting of the next. This ensures consistent parliamentary activity and prevents undue delays.
  • The President issues a formal notification announcing the date and place where each House will assemble. This notification triggers the necessary preparations and administrative measures for the session.
 

4. Types of Sessions of the Indian Parliament

 

Session Duration
Budget Session January-End to April-End/May-First
Monsoon Session July to August/September
Winter Session November to December
  • Budget Session of Parliament: Every year, the budget session takes place between February and May, and it is considered a crucial session of Parliament. The Finance Minister presents the budget on the last business day of February. Following the presentation, members analyze various aspects of the budget, including tax issues. The budget session is typically divided into two parts, with a one-month interval between them. The session commences with the President's Address to both Houses.
  • Monsoon Session of Parliament: Occurring every year during the monsoon season, from July to September, the monsoon session follows a two-month break after the budget session. This session is dedicated to addressing issues of public concern.
  • Winter Session of Parliament: Held every year from mid-November to mid-December, the winter session is the shortest among all sessions. It addresses issues that could not be covered earlier and compensates for the lack of legislative business during the second session of Parliament.

Special Session of Parliament: Apart from the regular sessions, a special session of the Lok Sabha can be convened under Article 352(8) of the 44th Amendment Act. If not less than one-tenth of Lok Sabha members write to the President (if Lok Sabha is not in session) or the Speaker (if Lok Sabha is in session), a special session can be called. This session is specifically for conducting business outlined in the notice of invitation to members, and no other business is considered during this session.

Joint Session of Parliament

Article 108 of the Constitution of India provides for a Joint Session of Parliament, allowing the Lok Sabha and the Rajya Sabha to convene together. This provision is employed to overcome any deadlock or stalemate between the two Houses. The President of India summons a joint session of Parliament, and the presiding officer is the Speaker of the Lok Sabha. In the absence of the Speaker, the Deputy Speaker of the Lok Sabha takes charge, and if both are unavailable, the Deputy Chairman of the Rajya Sabha presides. In case all three are not available, any other member of Parliament can preside with the approval of both Houses.

Lame-Duck Session

The term "lame-duck session" refers to the final session of the outgoing Lok Sabha after a new Lok Sabha has been elected. Lame ducks are Members of Parliament from the current Lok Sabha who have not been re-elected to the succeeding Lok Sabha.

 

5. What happens in the Budget Session of the parliament?

 

The Budget Session of the Parliament is a crucial and comprehensive session during which the government presents the Annual Budget. The Budget is a financial statement that outlines the government's revenue and expenditure for the upcoming fiscal year. 

  • The Budget Session usually begins with the President's Address to both Houses of Parliament. The President outlines the government's policies and priorities for the upcoming session.
  • The Finance Minister presents the Union Budget on a specified date, usually the last working day of February. The budget includes the government's expenditure and revenue plans for the upcoming financial year, which starts on April 1 and ends on March 31 of the following year. The budget outlines allocations for various sectors, proposed taxes, and other fiscal policies.
  • Following the budget presentation, both Houses of Parliament engage in a general discussion on the budget. Members of Parliament have the opportunity to analyze and debate different aspects of the budget, including its impact on various sectors, taxation policies, and overall economic implications. During this discussion, members may propose amendments or suggest changes to specific provisions of the budget.
  • Various parliamentary committees, such as the Standing Committees on Finance scrutinize the budget. These committees assess the budgetary proposals, seek clarifications from concerned ministries, and provide detailed reports with recommendations.
  • The budget is implemented through two key bills: the Appropriation Bill and the Finance Bill. The Appropriation Bill authorizes the government to withdraw funds from the treasury to meet its expenses. The Finance Bill contains taxation proposals and other financial measures announced in the budget. Both bills need to be passed by both Houses to give legal effect to the budget.
  • The Lok Sabha goes through a detailed discussion and votes on the demands for grants for various ministries and departments. This process ensures parliamentary approval for the specific expenditures proposed in the budget.
  • Alongside the Budget-related activities, the Parliament may also conduct other legislative business during the Budget Session. This could include discussions on various bills, statements by ministers, and debates on national issues.

 

6. About the interim budget

An interim budget is a temporary financial statement presented by the government when the general elections are around the corner, and a full-fledged budget for the upcoming fiscal year cannot be presented by the new government. It is essentially a vote on account of meeting the necessary expenditure for a limited period until the new government is in place and can present a full budget.

The presentation of an Interim Budget in a particular year is closely linked to the electoral calendar and the need for continuity in government operations during a period of political transition. In the context mentioned, it might be due to the impending general elections, ensuring financial stability until the new government takes charge.

Key features of an interim budget include

  • An interim budget is not a complete budget for the entire fiscal year. It serves as a temporary arrangement to meet the financial needs until the newly elected government presents a regular budget.
  • The interim budget typically refrains from introducing major policy changes or new schemes, as it is considered inappropriate for an outgoing government to make significant policy decisions that may bind the incoming government.
  • The interim budget seeks parliamentary approval for the government's necessary expenditures, including salaries, ongoing schemes, and other essential expenses, until the regular budget is presented.
  • Generally, an interim budget does not propose new taxes or major changes in existing tax structures. It maintains continuity in the existing tax regime to avoid imposing new financial burdens during the transitional period.
  • The financial provisions in an interim budget cover a short duration until the new government takes charge and presents a full budget for the entire fiscal year.
  • The interim budget includes a "Vote on Account," which is a grant made in advance by the Parliament to enable the government to meet its expenses until a formal budget is approved.
 
The difference between the interim budget and the Union Budget
 
Features Interim Budget Union Budget
Timing Presented in the final year of the current government, especially before general elections. Presented annually by the government, typically in February, for the upcoming fiscal year.
Scope and Duration Limited in scope and duration, covering a short period until the new government takes charge. Comprehensive, encompassing the government's revenue and expenditure proposals, policies, and strategies for the entire fiscal year.
Nature of Proposals Typically refrains from introducing major policy changes, new schemes, or significant alterations to tax structures. Considered a caretaker budget. Includes a wide range of financial proposals, covering tax policies, allocations, economic reforms, and long-term strategies. Reflects the government's goals for the fiscal year.
Vote on Account Includes a "Vote on Account" for an advance grant by Parliament to meet necessary expenditures until a full budget is approved. Proposes the entire financial plan for the fiscal year, seeking parliamentary approval for all aspects, including revenue and expenditure.
Government Status Presented by an outgoing government, especially in the context of impending general elections.  

Presented by the ruling government, reflecting its economic policies and priorities for the upcoming fiscal year.

 

7. The Way Forward

Understanding the nuances of various sessions and budget types, from the detailed financial planning of the Budget Session to the temporary nature of the Interim Budget, provides valuable insights into the functioning of India's parliamentary system.

 

For Prelims: Budget, Interim Budget, Parliamentary System

For Mains: 

1. Evaluate the significance of parliamentary scrutiny of the budget presented by the Finance Minister, including the role of committees and the 'demands for grants' process. (250 Words)
2. In a democracy, how can a balance be struck between upholding parliamentary decorum and ensuring the right to dissent and expression by elected representatives? (250 Words)
3. Discuss the challenges faced by parliamentary systems in ensuring fiscal responsibility and transparency, particularly during periods of economic uncertainty or political transitions. (250 Words)

 

Previous Year Questions

1. Consider the following statements: 
The Parliamentary Committee on Public Accounts (UPSC 2013)
1. consists of not more than 25 members of the Lok Sabha.
2. scrutinizes appropriation and finance accounts of the Government.
3. examines the report of the Comptroller and Auditor General of India.
Which of the statements given above is/are correct?
A. 1 only
B. 2 and 3 only
C. 3 only
D. 1, 2 and 3
 
 
2. With reference to the Parliament of India, which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, by-laws, etc., conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation? (UPSC 2018)
A. Committee on Government Assurances
B. Committee on Subordinate Legislation
C. Rules Committee
D. Business Advisory Committee
 
 
3. According to the Representation of the People Act, 1951, in the event of a person being elected to both houses of Parliament, he has to notify within ______ days in which house he intends to function. (Delhi Police Constable 2020) 
A. 22       B. 10        C.  20            D. 15
 
Answer: 1-B, 2-B, 3-B
Source: Indianexpress
 

KOREAN PENINSULA

 
 
 
 
1. Context 
 
 
There has been a noticeable increase in provocative actions by North Korea, followed by South Korea and its allies issuing strong counterarguments. North Korea has abandoned its longstanding goal of Korean reunification and officially labelled South Korea as an adversary. The nation has also intensified the frequency and range of its missile tests, broadening its strategic capabilities. In response, South Korea has engaged in joint military exercises with the United States and Japan. The unfolding events in the Korean peninsula are causing significant apprehension about the decline in the global security landscape and an escalation of major power competition.
 

2. Historical Context of the Korean Peninsula

 

Post-World War II Division and Cold War Dynamics

The Korean peninsula underwent a division following World War II, as imperial Japan's occupation came to an end. The North fell under the influence of the Soviet Union, while the South aligned with the United States, creating two ideologically distinct regimes reflective of the Cold War polarization. The Korean War (1950-53) marked the first "hot war" of the Cold War, initiated by the North's attempt to seize control of the South.

Persistent Ideological and Geopolitical Divide

Decades after the active conflict and the conclusion of the Cold War, ideological and geopolitical differences persist between the two countries. The North, functioning as an authoritarian dynastic regime, aligns itself with China and Russia. In contrast, the South operates as a liberal democracy and maintains an alliance with the U.S.

Contemporary Geopolitics and the Denuclearization Challenge

A major contemporary concern revolves around the issue of North Korea's nuclear ambitions. Despite various international efforts to halt and reverse North Korea's nuclear weapons program, challenges persist. From 1994 to 2002, the U.S. and North Korea signed an "Agreed Framework," temporarily pausing the nuclear program in exchange for nuclear energy. However, the deal unravelled, leading to North Korea's nuclear test in 2006. Subsequent initiatives, such as the six-party talks, aimed at denuclearizing the Korean Peninsula faced setbacks, with North Korea conducting nuclear tests in defiance of pledges.

Post-2009 Developments and Missile Tests

Under Kim Jong Un's leadership, North Korea intensified its missile testing, demonstrating consistent advancements in its capabilities. Efforts by the Trump administration to engage in peace talks and promote denuclearization, marked by three meetings between the leaders in 2018-19, did not yield substantial results. Despite these diplomatic attempts, North Korea continued developing and testing delivery systems, asserting its nuclear weapons capabilities through multiple tests.

Escalating Tensions and Global Implications

North Korea's actions, including military drills, shelling South Korean islands, and cyber-attacks, have heightened tensions in the region. With the ability to potentially target the U.S. mainland, North Korea has become a significant source of concern globally. In response, South Korea has strengthened its military alliance with the U.S., hosting both troops and advanced missile defence systems, contributing to a complex and delicate geopolitical landscape.


3. Factors Leading to Recent Escalation

 

Shift in North Korean Policy

The recent aggravation in the Korean Peninsula can be attributed to a significant shift in North Korea's policy. In an address to the Supreme People's Assembly on January 15, Mr Kim announced the abandonment of North Korea's longstanding goal of reunifying with the South. Furthermore, he officially branded the South as an enemy state, prompting the rewriting of North Korea's constitution to align with this new stance. Symbolic acts, such as the closure of reunification-related offices and the removal of a key reunification monument in Pyongyang, underscored the depth of this ideological shift.

Military Demonstrations

North Korea has heightened tensions through a series of military demonstrations, particularly in the realm of missile testing. Notably, the country conducted tests of various missile systems, including a solid-fueled missile carrying a hypersonic warhead. This development is significant on a global scale, given the ongoing race among major military powers, including the U.S., Russia, China, India, and Iran, to develop hypersonic weapons. North Korea's entry into this arena raises concerns about its potential to evade and target adversary missile defence systems.

International Response and Joint Drills

In response to North Korea's provocations, the U.S., South Korea, and Japan engaged in joint naval drills featuring nine warships. The objective was to enhance their collective capabilities against North Korea's missile threats and underwater activities, including the illicit maritime shipment of arms. North Korea, however, has contested the nature of these drills, alleging offensive intent rather than defensive preparations. In retaliation, North Korea conducted tests of its "Haeil-5-23" nuclear-capable underwater drone and the strategic cruise missile "Pulhwasal-3-31," posing a potential threat to critical American bases in Japan.

Leadership Dynamics in South Korea

The recent aggravation coincides with the newly elected conservative President Yoon Suk Yeol in South Korea, who adopted a more assertive stance toward North Korea compared to his predecessor, Moon Jae-in. President Yoon's strategy involves close coordination with the U.S. and Japan to deter and counter North Korea's aggressive moves. The trilateral meeting in August 2023, held at Camp David in Washington D.C., marked a historic initiative for enhanced cooperation among the three countries. This unity is particularly noteworthy given the historical tensions between South Korea and Japan, stemming from imperial Japan's occupation of the Korean peninsula.

Growing Concerns of Conflict

With the potential for tit-for-tat measures and unintended consequences, there is a growing concern within the international community that the escalating tensions between North and South Korea may lead to a conflict. The current geopolitical landscape underscores the delicate nature of the situation and the need for diplomatic efforts to prevent further escalation.

 

4. Impact on International Security

 

Global Context of Escalating Conflicts

The escalating tensions in the Korean Peninsula are unfolding amid the activation of historically rooted conflicts, such as Russia-Ukraine and Israel-Palestine, and simmering issues like China-Taiwan and India-China. This is a significant concern given that key external stakeholders in the Korean Peninsula are major nuclear powers engaged in a global strategic competition namely the U.S., China, and Russia. While alliances and nuclear deterrence mechanisms may prevent a major conflict, the history of violent incidents, like North Korea's actions in 2010, raises the potential for skirmishes.

Influence of Major Powers and Ongoing Conflicts

North Korea's deepening ties with China and Russia, coupled with South Korea's strengthening alliance with the U.S., create significant linkages with ongoing global conflicts. The alignment of North Korea with the Sino-Russian axis, especially in light of Mr. Kim's choices, is notable. Russia has increased its engagement with North Korea, with arms supplies exchanged for assistance in enhancing North Korea's space capabilities, notably amid the Russia-Ukraine war. China, as North Korea's largest trading partner, has reiterated unwavering support, even amidst rising tensions in the Korean Peninsula.

Strategic Opportunism and Distraction

Given the geopolitical landscape, Mr. Kim's provocative actions could be seen as strategic opportunism. With the U.S. preoccupied with conflicts in Europe and West Asia, North Korea may view this as an opportune moment to conduct provocative actions for negotiation purposes. Russia and China, sharing aligned interests in conflicts like Russia-Ukraine and Israel-Hamas, stand to benefit from North Korea creating a distraction for the U.S., potentially opening a "third front." The interplay of these dynamics raises concerns about the broader implications for international security.

 
5. The Way Forward
 
The Korean Peninsula situation presents a complex and dangerous mix of regional tensions, major power rivalries, and the shadow of nuclear weapons. This situation requires careful diplomatic efforts and international cooperation to prevent miscalculations and de-escalate the situation, ensuring global security amidst a fragile world order.
 
 
For Prelims: Korean Peninsula, World War II, North Korea, South Korea, Nuclear Weapons, Cold War
For Mains: 
1. Discuss the impact of the Korean Peninsula tensions on the current global security landscape, considering the ongoing conflicts in other regions and the involvement of major powers. How does this situation contribute to a heightened sense of international insecurity? (250 Words)
 
Previous Year Questions

1. What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news? ( UPSC 2018)

(a) An Israeli radar system
(b) India’s indigenous anti-missile programme
(c) An American anti-missile system
(d) A defence collaboration between Japan and South Korea.

Answer: C

For Mains
1. Evaluate the economic and strategic dimensions of India’s Look East Policy in the context of the post-Cold War international scenario. ( UPSC 2016)
 
Source: The Hindu

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