FLOOR TEST
1. Context
More than two weeks after he joined the National Democratic Alliance (NDA) and took oath as Bihar Chief Minister for a ninth time, Nitish Kumar will face a floor test in the Bihar Assembly
2. What is a Floor Test?
- The floor test is a constitutional mechanism to ensure that the government is accountable to the legislature. It prevents the government from becoming authoritarian and allows the people to have a say in the government.
- The Speaker of the Assembly asks the members to vote whether they have confidence in the government.
- If the government gets a majority of votes, it is deemed to have passed the floor test. Otherwise, the government is defeated and has to resign.
- This is a crucial aspect of the constitutional framework that ensures the democratic functioning of the government
2.1. Key Features of floor test
Here's how a floor test in a constitutional context typically works:
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No-Confidence Motion: A floor test is usually initiated when a no-confidence motion is submitted by the opposition or other members of the legislative body. This motion expresses a lack of confidence in the current Chief Minister (in the case of a state assembly) or the Prime Minister (in the case of the national parliament).
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Debate: Before the actual vote, there is often a debate during which members of the legislative body discuss the reasons for the no-confidence motion and the performance of the government. The Chief Minister or Prime Minister is given an opportunity to defend their government's actions and seek the support of the members.
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Voting: After the debate, a formal vote is conducted. Members of the legislative body, including ruling party members, opposition members, and independents, cast their votes. They can vote in favor of the government, against it, or abstain. The Chief Minister or Prime Minister must secure a majority of votes in their favor to continue in office.
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Outcome: If the Chief Minister or Prime Minister wins the majority of votes (i.e., they have the confidence of the legislative body), they remain in office. If they fail to secure a majority, they are required to resign, and the legislative body may take steps to form a new government, which could involve electing a new leader or calling for fresh elections.
3. What is 'Collective responsibility'?
- "Collective responsibility" is a fundamental principle in parliamentary systems of government, particularly in countries with a Westminster-style parliamentary system like the United Kingdom and India.
- It refers to the collective accountability of government ministers or members of the executive branch to the legislative body (parliament or a similar institution)
- In parliamentary systems, the executive branch of the government is headed by a Prime Minister or Chief Executive, and it includes various government ministers responsible for different portfolios (e.g., finance, foreign affairs, defense).
- These ministers, collectively known as the cabinet, are usually drawn from the majority party or coalition in the legislature
- Collective responsibility means that all members of the cabinet are collectively responsible for government policies and decisions.
- They act as a team and present a united front in support of government actions and policies, even if they personally disagree with them. This principle promotes the idea that the cabinet stands or falls together.
4.Tenth Schedule of the Indian Constitution
The Tenth Schedule of the Indian Constitution, also known as the "Anti-Defection Law," deals with the disqualification of elected members of legislatures on the grounds of defection to another political party.
It was added to the Constitution through the 52nd Amendment Act, 1985, and it has been subsequently amended to address various issues related to defection in Indian politics.
Key provisions of the Tenth Schedule include:
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Definition of Defection: The Tenth Schedule specifies the circumstances under which a member of a legislature (Member of Parliament or Member of a Legislative Assembly) can be disqualified on the grounds of defection. Defection is broadly defined as voluntarily giving up the membership of the political party on whose ticket the member was elected, or voting against the party's whip on certain significant matters.
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Disqualification: If a member of a legislature is found to have defected according to the provisions of the Tenth Schedule, they can be disqualified from their membership. The disqualification is determined by the Presiding Officer (Speaker in the case of the Lok Sabha or Legislative Assemblies) of the respective legislative body.
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Exemptions: There are certain situations in which defection is not considered grounds for disqualification. For example, if one-third or more members of a party decide to merge with another party, they are not disqualified. However, this exemption has certain conditions.
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Anti-Defection Tribunals: The Tenth Schedule allows for the establishment of Anti-Defection Tribunals to adjudicate disputes related to defection. These tribunals have the authority to decide on matters of disqualification.
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Decision of the Presiding Officer: The decision of the Presiding Officer regarding disqualification can be challenged in the courts. However, until the court makes a decision, the member remains disqualified.
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For Prelims: Tenth Schedule of Indian Constitution, Article 164
For Mains: 1.Discuss the significance of the Tenth Schedule of the Indian Constitution in the context of maintaining the integrity of political parties and promoting party discipline. How has it evolved since its inception, and what challenges does it address?
2.Explain the concept of a "floor test" in the Indian parliamentary system. How does it ensure the accountability of the government to the legislature? Provide recent examples where floor tests played a crucial role in Indian politics.
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Previous Year Questions
1.Which one of the following Schedules of the Constitution of India contains provisions regarding anti-defection? (UPSC CSE Prelims 2014)
(a) Second Schedule (b) Fifth Schedule (c) Eighth Schedule (d) Tenth Schedule Answer (d)
2.With reference to the Legislative Assembly of a State in India, consider the following statements: (UPSC CSE Prelims 2019 )
1. The Governor makes a customary address to Members of the House at the commencement of the first session of the year. 2. When a State Legislature does’ not have a rule on a particular matter, it follows the Lok Sabha rule on that matter. 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)
3.Which of the following are the discretionary powers given to the Governor of a State? (UPSC CSE Prelims, 2014)
1. Sending a report to the President of India for imposing the President’s rule 2. Appointing the Ministers 3. Reserving certain bills passed by the State Legislature for consideration of the President of India 4. Making the rules to conduct the business of the State Government Select the correct answer using the code given below. (a) 1 and 2 only
(b) 1 and 3 only
(c) 2, 3 and 4
(d) 1, 2, 3, 4
Answer (b)
Mains
1.Discuss the conditions for the exercise of the legislative powers by the Governor. Discuss the legality of re- promulgation of ordinances by the Governor without placing them before the Legislature. (UPSC Mains GS2, 2022)
2.The role of individual MPs (Members of Parliament) has diminished over the years and as a result healthy constructive debates on policy issues are not usually witnessed. How far can this be attributed to the anti-defection law, which was legislated but with a different intention? (UPSC Mains GS2, 2013)
3.“Once a speaker, Always a speaker’! Do you think the practice should be adopted to impart objectivity to the office of the Speaker of Lok Sabha? What could be its implications for the robust functioning of parliamentary business in India. (UPSC Mains GS2, 2020)
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Source: indianexpress
MINIMUM SUPPORT PRICE
1. Context
As Punjab farmer unions, who have called for a protest march to Delhi on Tuesday, announced they would wait for word on the outcome of talks Monday over their demands, Union Agriculture Minister Arjun Munda said Sunday that the Centre is always ready to talk with an “open mind”
2. What is the Minimum Support Price (MSP)?
- MSP is the minimum price a farmer must pay for their food grains as guaranteed by the government. They are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs.
- The CACP submits its recommendations to the government in the form of Price Policy Reports every year.
- After considering the report and views of the state governments and also keeping in view the overall demand and supply situation in the country, the central government takes the final decision.
- The Food Corporation of India (FCI) is the nodal agency for procurement along with State agencies, at the beginning of the sowing season.
The minimum support price (MSP) is set for 23 crops every year. They include:
- 7 cereals (paddy, wheat, maize, bajra, jowar, ragi, and barley)
- 5 pulses (chana, tur/arhar, moong, urad, and Masur)
- 7 oilseeds (rapeseed-mustard, groundnut, soya bean, sunflower, sesamum, safflower, and Enigerseed) and
- 4 commercial crops (sugarcane, cotton, copra, and raw jute).
3. How MSP is Calculated?
- MSP, presently, is based on a formula of 1.5 times the production costs.
- The CACP projects three kinds of production costs for every crop, both at state and all-India average levels.
- A2 covers all paid-out costs directly incurred by the farmer — in cash and kind — on seeds, fertilizers, pesticides, hired labour, leased-in land, fuel, irrigation, etc.
- A2+FL includes A2 plus an imputed value of unpaid family labour.
- C2: Estimated land rent and the cost of interest on the money taken for farming are added to A2 and FL.
- Farm unions are demanding that a comprehensive cost calculation (C2) must also include capital assets and the rentals and interest forgone on owned land, as recommended by the National Commission for Farmers.
4. The issue with the calculation of MSP
- To calculate MSP, the government uses A2+FL cost. The criticism of A2+FL is that it doesn’t cover all costs and that a more representative measure, C2, needs to be used.
- For example, in the 2017-18 rabi season, CACP data shows that C2 for wheat was 54% higher than A2+FL.
- The Swaminathan Commission also stated that the MSP should be based on the comprehensive cost of production, which is the C2 method.
5. Key Points about the Farmer's Demand
- After the recent decision to repeal three contentious farm laws, protesting farmer unions are now pressing for their demand of the legalization of the Minimum Support Price (MSP).
- They want a legal guarantee for the MSP, which at present is just an indicative or a desired price.
- Legalising MSPs would put the government under a legal obligation to buy every grain of the crops for which MSPs have been announced.
- At present, the PM has announced the formation of a committee to make MSP more transparent, as well as to change crop patterns and to promote zero-budget agriculture which would reduce the cost of production.
- The entire issue of enforcing MSP legally is a tricky, complicated, and multidimensional one, involving lots of factors.
- Core demand: MSP based on a C2+50% formula should be made a legal entitlement for all agricultural produce. This would mean a 34% increase in the latest MSP for paddy and a 13% increase for wheat. MSP should also be extended to fruit and vegetable farmers who have been excluded from benefits so far.
6. The rationale behind the demand for legislation of MSP
- Farmers receive less than MSP: In most crops grown across much of India, the prices received by farmers, especially during harvest time, are well below the officially declared MSPs. And since MSPs have no statutory backing, they cannot demand these as a matter of right.
- Limited procurement by the Govt: Also, the actual procurement at MSP by the Govt. is confined to only about a third of wheat and rice crops (of which half is bought in Punjab and Haryana alone), and 10%-20% of select pulses and oilseeds. According to the Shanta Kumar Committee’s 2015 report, only 6% of the farm households sell wheat and rice to the government at the MSP rates.
7. Challenges associated with MSP
- Protest by Farmers: Farm unions have been protesting for more than six months on Delhi's outskirts, demanding legislation to guarantee MSP for all farmers for all crops and a repeal of three contentious farm reform laws.
- MSP and Inflation: When announcing the MSP, inflation should be taken into account. But often the price is not increased up to the mark. For example, this time MSP for Maize has not even considered inflation then how it will benefit farmers! Also, frequent increases in the MSPs can lead to inflation too.
- High Input Costs: The input costs have been rising faster than sale prices, squeezing the meagre income of the small farmers and driving them into debt.
- Lack of Mechanism: No mechanism guarantees that every farmer can get at least the MSP as the floor price in the market. So proper mechanisms need to be fixed for all times to come.
- Restriction in Europe: Even after producing surplus grains, every year a huge portion of these grains gets rotten. This is due to the restrictions under WTO norms, that grain stocks with the FCI (being heavily subsidized due to MSP) cannot be exported.
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For Prelims: Minimum Support Price, Rabi Crops, WTO, Commission for Agricultural Costs and Prices (CACP), Cabinet Committee on Economic Affairs, Food Corporation of India
For Mains:
1. Explain the concept of Minimum Support Price (MSP) in India. How is MSP determined, and what is its role in ensuring fair prices for agricultural produce? (250 Words)
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Previous Year Questions
1. Consider the following statements: (UPSC CSE 2020)
1. In the case of all cereals, pulses, and oil seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
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
2. Which of the following factors/policies were affecting the price of rice in India in the recent past? (UPSC CSE, 2020)
(1) Minimum Support Price (2) Government’s trading (3) Government’s stockpiling (4) Consumer subsidies Select the correct answer using the code given below: (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4 Answer: D
3. In India, which of the following can be considered as public investment in agriculture? (UPSC GS1, 2020)
(1) Fixing Minimum Support Price for agricultural produce of all crops (2) Computerization of Primary Agricultural Credit Societies (3) Social Capital development (4) Free electricity supply to farmers (5) Waiver of agricultural loans by the banking system (6) Setting up of cold storage facilities by the governments. In India, which of the following can be considered as public investment in agriculture? Select the correct answer using the code given below: (a) 1, 2 and 5 only (b) 1, 3, 4 and 5 only (c) 2, 3 and 6 only (d) 1, 2, 3, 4, 5 and 6 Answer: C
4. The Fair and Remunerative Price (FRP) of sugarcane is approved by the (UPSC CSE, 2015)
(a) Cabinet Committee on Economic Affairs (b) Commission for Agricultural Costs and Prices (c) Directorate of Marketing and Inspection, Ministry of Agriculture (d) Agricultural Produce Market Committee Answer: A
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PM SVANIDHI
1. Context
A study that evaluated the impact of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), a small working capital loan scheme for street vendors, has found that the first tranche of `10,000 led to an additional annual income of `23,460 for each beneficiary.
2. Why was this scheme rolled out?
- The COVID-19 pandemic and the nationwide lockdown left daily wage workers and street vendors out of work.
- The scheme aims at aiding the vendors in getting back on their feet financially.
- In the long term, it aims at establishing a credit score for the vendors as well as creating a digital record of their socio-economic status, so that they can avail of the central government schemes later.
- The scheme also attempts to formalize the informal sector of the economy and provide them with safety nets and a means of availing loans in the future.
3. Who is a street vendor?
- Any person engaged in vending of articles, goods, wares, food items, or merchandise of daily use or offering services to the public in a street, footpath, pavement, etc., from a temporary built-up structure or by moving from place to place.
- The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, bread, eggs, textile, apparel, artisan products, books/stationary, etc. and the services include barber shops, cobblers, pan shops, laundry services, etc.
4. What is the rationale of the scheme?
- The COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors.
- They usually work with a small capital base, which they might have consumed during the lockdown.
- Therefore, credit for working capital to street vendors will be helpful to resume their livelihoods.
5. What are the objectives of the scheme?
To facilitate a working capital loan of up to 10,000 at a subsidized rate of interest;
- To incentivize regular repayment of loans; and
- to reward digital transactions.
6. What are the salient features of the scheme?
- Initial working capital of up to 10,000/-
- Interest subsidy on timely/early repayment @ 7%.
- Monthly cash-back incentive on digital transactions
- Higher loan eligibility on timely repayment of the first loan
7. Eligibility criteria of the beneficiaries
- The Scheme is available to all street vendors engaged in vending in urban areas *. The eligible vendors will be identified as per the following criteria:
- Street vendors in possession of a Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs);
- The vendors, who have been identified in the survey but have not been issued a Certificate of Vending / Identity Card; a Provisional Certificate of Vending would be generated for such vendors through an IT-based Platform. ULBs are encouraged to issue such vendors the permanent Certificate of Vending and Identification Card immediately and positively within one month.
- Street vendors left out of the ULB-led identification survey or who have started vending after completion of the survey and have been issued a Letter of Recommendation (LoR) to that effect by the ULB/ Town Vending Committee (TVC); and
- The vendors of surrounding development/peri-urban/ rural areas vending in the geographical limits of the ULBs have been issued a Letter of Recommendation (LoR) to that effect by the ULB/TVC.
Identification of Beneficiaries Left out of the Survey or Belonging to the Surrounding Rural Areas While identifying the vendors belonging to Category 4 (iii) and (iv), the ULB/ TVC may consider any of the following documents to issue letters of recommendation:
- The list of vendors, prepared by certain States/ UTs, for providing one-time assistance during the period of lockdown; OR
- A system-generated request was sent to ULBs/ TVCs for the issue of LoR based on the recommendation of the Lender after verifying the credentials of the applicant; OR
- The membership details with the vendor's associations including the National Association of Street Vendors of India (NASVI)/ National Hawkers Federation (NHF)/ Self-Employed Women’s Association (SEWA) etc.; OR (iv) The documents in possession of the vendor buttressing his claim of vending; OR (v) Report of local inquiry conducted by ULB/ TVC involving Self-Help Groups (SHGs), Community-Based Organizations (CBOs), etc. ULB shall complete the verification and issuance of LoR within 15 days of the submission of the application.
- Further, ULBs may adopt any other alternate way for identifying such vendors to ensure that all the eligible vendors are positively covered.
- vendors who have gone back to their native places due to COVID-19 Some of the identified/surveyed or other vendors who have been vending/hawking in urban areas have left for their native places before or during the lockdown period because of the COVID-19 pandemic. Such vendors are likely to come back after the situation normalizes and resume their business.
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Once a LOR is issued by the ULBs, its mandate lasts a month, after which the survey for the issuance of the certificate of vending should be undertaken by the ULBs. But since it is a state subject, the central government can only direct or sensitize the state governments on the importance of doing so, and not evict vendors who have availed of the loan but do not have a certificate.
The scheme is already a hit; so far 25 lakh street vendors have come forward seeking the loan. The next stage being contemplated is to make a first-of-its-kind database of the beneficiaries of this scheme to see who they are, and where they belong vis-à-vis the government’s social security net woven through various welfare schemes on education, housing, food, livelihood, etc.,
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7. Why is such a study needed?
- The scheme plans to extend the microcredit to over 50 lakh street vendors across India, which is the estimated number of hawkers as per various urban local bodies.
- But, going beyond the mandate of this scheme, the government wants to use the data for comprehensive poverty alleviation.
- However, there is hardly any comprehensive structured data on the socio-economic profile of street vendors and the street vending economy in India, even in government surveys like the National Sample Survey Organisation (NSSO) and the Economic Survey.
- The NSSO, for instance, has defined street vendors through a category of “enterprises without fixed premises” among “Unincorporated Non-Agricultural Enterprises (excluding construction)”, in its 67-68th round report published in 2011- 12.
- The NSSO data estimated that around 200,000 women and 21,500 children were engaged in street vending. Around 1.18 million households were dependent on this sector as their primary source of income, according to a paper by the think-tank Observer Research Foundation.
- Non-governmental organizations and research by scholars have attempted to put together this kind of data several times in the past in bits and pieces.
8. Will this scheme actually work towards poverty alleviation?
- Becoming formal beneficiaries of various government schemes works as a big step towards entering the policy intervention network.
- Officials say it also helps in financial mainstreaming in the long run.
- For example, several banks, bereft of the prior experience of extending loans as little as Rs. 10,000 to someone like a street vendor, are following processes like checking the CIBIL score for the street vendor and seeking PAN card and IT-return, etc.
- While these cases are dealt with as hurdles on the ground, it is a fact that street vendors hardly have creditworthiness in the eyes of India's formal banking system.
- Therefore, the PMSVANidhi is incentivizing digital transactions by street vendors. They will soon be given QR codes to receive payments through the government’s BHIM UPI app.
- They are given cash back for digital transactions too. The idea is that with a trail of digital transactions against their names, they will create a formal transaction history in banks and will slowly build their creditworthiness for the future.
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For Prelims: PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, Urban Local Bodies (ULBs), National Association of Street Vendors of India (NASVI)/ National Hawkers Federation (NHF)/ Self-Employed Women’s Association (SEWA), Self-Help Groups (SHGs), Letter of Recommendation (LoR), National Sample Survey Organisation (NSSO) and BHIM UPI.
For Mains:1. What is the PM SVANidhi scheme and explain the rationale of the scheme. Discuss how it will help in the alleviation of poverty(250 words).
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Source: The Indian Express
DEATH SENTENCE EXPLAINED
1.Context
Eight Indian Navy veterans who had been in Qatari custody since August 30, 2022 were released on Sunday in Doha. Indian officials escorted seven of the eight former death row prisoners to New Delhi by a passenger flight
2.Background
- Death sentence/Capital punishment, also known as the death penalty, is a state-sanctioned practice of killing a person as a punishment for a crime.
- The sentence order that an offender is to be punished in such a manner is known as a death sentence, and the act of carrying out the sentence is known as an execution.
- While the standard applied by the judiciary is that of the rarest of rare principles (however subjective or Judge-centric it may be in its application), the standard applied by the executive in granting commutation is not known.
- In Shankar Kisanrao Khade v. State of Maharashtra (‘Khade’), the Supreme Court of India, while dealing with an appeal on the issue of death sentence, expressed its concern with the lack of a coherent and consistent purpose and basis for awarding death and granting clemency.
3.History of the death penalty in India
- An early attempt at the abolition of the death penalty took place in pre-independent India when Shri Gaya Prasad Singh attempted to introduce a Bill abolishing the death penalty for IPC offences in 1931.
- However, this was defeated Around the same time, in March 1931, following the execution of Bhagat Singh, Sukhdev and Rajguru by the British government, the Congress moved a resolution in its Karachi session, which included a demand for the abolition of the death penalty.
- India’s Constituent Assembly Debates between 1947 and 1949 also raised questions about the judge-centric nature of the death penalty, arbitrariness in imposition, its discriminatory impact on people living in poverty, and the possibility of error.
- Pandit Thakur Das Bhargava complained regarding the errors associated with the death penalty.
- Dr Ambedkar was personally in favour of abolition.
4.Legal backing associated with the death penalty
- The IPC prescribed six punishments that could be imposed under the law, including death.
- In 1955, the Parliament repealed Section 367(5), CrPC 1898, significantly altering the position of the death sentence.
- The Code of Criminal Procedure was reenacted in 1973 (‘CrPC’), and several changes were made.
5.Constitutional and judicial opinions on the Death penalty
- In Jagmohan Singh v. State of U. P., the Supreme Court found that the death penalty was a permissible punishment, and did not violate the Constitution.
- In 1979, the case of Rajendra Prasad v. State of Uttar Pradesh (‘Rajendra Prasad’) discussed what the “special reasons” for imposing the death sentence could be.
- A Constitution Bench of the Supreme Court in the case of Triveniben v. the State of Gujarat considered the question and held that only executive delay, and not judicial delay, may be considered relevant in an Article 21 challenge.
- In Bachan Singh, the Court adopted the ‘rarest of rare’ guideline for the imposition of the death penalty, saying that reasons to impose or not impose the death penalty must include the circumstances of the crime and the criminal.
- Justice Bhagwati (17th Chief Justice of India) in his dissenting opinion found the death penalty necessarily arbitrary, discriminatory and capricious.
6.Criticism against the Death penalty
- Major arguments against the death penalty focus on its inhumanity, lack of deterrent effect, continuing racial and economic biases, and irreversibility.
- Proponents argue that it represents just retribution for certain crimes, deters crime, protects society, and preserves the moral order.
- Death penalty violates Articles 14, 19 and 21 of the Constitution of India.
- It was argued that since the death sentence extinguishes, along with life, all the freedoms guaranteed under Article 19(1) (a) to (g), it was an unreasonable denial of these freedoms and not in the interests of the public.
- The discretion vested in judges in deciding to impose a death sentence was uncontrolled and unguided and violated Article 14.
- Provisions of the law did not provide a procedure for the consideration of circumstances crucial for choosing between capital punishment and imprisonment for life, it violated Article 21.
- The decision of the US Supreme Court in Furman v. Georgia in which the death penalty was declared to be unconstitutional as being cruel and unusual punishment was also placed before the Constitution Bench.
- Irreversibility, fallibility, and that the punishment is necessarily cruel, inhuman and degrading a life whose purity is beyond the law.
7.Conclusion
- A real and abiding concern for the dignity of human life postulates resistance to taking a life through the law's instrumentality.
- That ought not to be done save in the rarest of rare cases when the alternative option is unquestionably foreclosed.
- “Section 364A cannot be dubbed as so outrageously disproportionate to the nature of the offence as to call for the same being declared unconstitutional”, death sentences would only be awarded in the rarest of rare cases.
- The Court did not address the question of whether the death sentence was an appropriate punishment for a non-homicide offence or applicable international law standards on this issue.
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Top 10 Countries that Conducted the Most Executions in 2021 (Amnesty International)
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For Prelims: Death Sentence,
For Mains: Compare the death penalty in India with other countries (250 words)
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RETAIL INFLATION
1. Context
India’s retail inflation eased to a three-month low of 5.1% in January from 5.7% a month earlier, with food price rise cooling a bit to 8.3% compared with 9.5% in December 2023.
January’s headline inflation pace is slightly higher than the 5% average projected by the Reserve Bank of India (RBI) last week for the current final quarter of 2023-24
2. What is Inflation?
- It is the rise in prices of goods and services within a particular economy wherein consumers' purchasing power decreases, and the value of the cash holdings erodes.
- In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.
- Some causes that lead to inflation are demand increases, reduction in supply, demand-supply gap, excess circulation of money, increase in input costs, devaluation of the currency, and rise in wages, among others.
3. Retail Inflation
Consumers often directly buy from retailers. So, the inflation experienced at retail reflects the actual price rise in the country. It also shows the cost of living better. In India, the index that reflects the inflation rate at the retail level is known as Consumer Price Index (CPI). Unlike WPI, CPI includes both goods and services. CPI is used to calculate the Dearness Allowance (DA) for government employees.
4. How Inflation is measured?
- In India, inflation is primarily measured by two main indices- WPI (Wholesale Price Index) and CPI (Consumer Price Index), Which measures Wholesale and retail-level price changes, respectively.
- The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics, etc, which Indian consumers buy for use.
- On the other hand, the goods or services sold by businesses to smaller businesses for selling further are captured by the WPI.
- Both WPI (Wholesale Price Index) and CPI (Consumer Price Index) are used to measure inflation in India.
5. What is the Inflation Target?
- Under Section 45ZA, in consultation with the RBI Act, the Central Government determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette.
- Accordingly, on August 5, 2016, the Central Government notified in the Official Gazette 4 percent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016, to March 31, 2021, with the upper tolerance limit of 6 percent and the lower tolerance limit of 2 percent.
- On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period-April 1, 2021 to March 31, 2026.
- Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.
6. Monetary Policy Committee (MPC)
- The MPC is a statutory and institutionalized framework under the RBI Act, of 1934, for maintaining price stability, keeping in mind the objective of growth. It was created in 2016.
- It was created to bring transparency and accountability in deciding monetary policy.
- MPC determines the policy interest rate required to achieve the inflation target.
- The committee comprises six members and Governor RBI acts as an ex-officio chairman. Three members are from RBI and three are selected by the government. The inflation target is to be set once every five years. It is set by the Government of India, in consultation with the Reserve Bank of India.
- The current inflation target is pegged at 4% with -2/+2 tolerance till March 31, 2021.
7. What Caused the drop in Inflation?
- Retail Inflation or price gains based on the Consumer Price Index, slowed to 6.77 % last month, from September's 7.41%, aided by an appreciable deceleration in food price inflation.
- The year-on-year inflation based on the Consumer Food Price Index eased by almost 160 basis points in October, to 7.01%, from the preceding month's 8.60%, helped by a 'decline in prices of vegetables, fruits, pulses and oils, and fats', the Government said.
- With the food and beverages sub-index representing almost 46% of the CPI's weight, the slowdown in food price gains understandably steered overall inflation lower even as price gains in three other essential categories, namely clothing, and footwear, housing, and health remained either little changed from September or quickened.
- Inflation at the Wholesale Prices Level also continued to decelerate, with the headline reading easing into single digits for the first time in 19 months. A favorable base effect along with a distinct cooling in international prices of commodities including crude oil and steel amid gathering uncertainty in advanced economies was largely instrumental in tempering wholesale price gains.
8. Recent Measures by the Government
To soften the prices of edible oils and pulses, tariffs on imported items have been rationalized from time to time. The stock limits on edible oils are also maintained, to avoid hoarding.
The Government has taken trade-related measures on wheat and rice to keep domestic supplies steady and curb the rise in prices.
The impact of these measures is expected to be felt more significantly in the coming months.
For Prelims & Mains
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For Prelims: Consumer Price Index (CPI), Wholesale Price Index (WPI), Monetary Policy Committee (MPC), Inflation, and RBI.
For Mains: 1. Government needs to remain watchful while fighting against Inflation.Comment?
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Source: The Hindu
CLIMATE TIPPING POINTS
1. Context
Recent studies indicate that the Atlantic Ocean’s circulation has previously reached a critical tipping point, leading to a rapid and irreversible decline. As the planet continues to warm and glaciers and ice sheets melt, there’s concern it could reach this tipping point again.
2. About climate tipping points
- Climate tipping points represent critical thresholds in natural systems, beyond which irreversible and catastrophic consequences for the planet can occur, leading to further warming. An example of this is when rising global temperatures trigger transformations like rainforests transitioning into dry savannahs. Even if the initial drivers of change cease, self-perpetuating feedback loops can maintain the new state, perpetuating the tipping point effect.
- Moreover, breaching one tipping point can amplify the likelihood of surpassing others, setting off a chain reaction of catastrophic events. For instance, unchecked global warming can result in irreversible ice melt from the Greenland ice sheet. This could disrupt the ocean's heat circulation, such as the Atlantic Meridional Overturning Circulation (AMOC), subsequently impacting the monsoon system in South America. Changes in the monsoon system could, in turn, elevate the occurrence of droughts in the Amazon rainforest, exacerbating the situation.
- Scientists have identified various climate tipping points across the Earth system, broadly categorized into cryosphere, ocean-atmosphere, and biosphere. These tipping points range from the melting of ice sheets to the decline of coral reefs, representing critical junctures with potentially far-reaching consequences for the global climate.
3. Are We Nearing Climate Tipping Points?
- According to the Global Tipping Points Report, led by Professor Tim Lenton from the University of Exeter’s Global Systems Institute, and supported by over 200 researchers from 90 organizations across 26 countries, the world is perilously close to breaching several climate tipping points.
- The report highlighted that five major tipping points are already at risk of being crossed due to current levels of warming, with an additional three threatened by the 2030s as global temperatures exceed 1.5 degrees Celsius above pre-industrial levels.
- Currently, with Earth being 1.1 degrees Celsius warmer than pre-industrial levels, the tipping points in jeopardy include the collapse of major ice sheets in Greenland and the West Antarctic, widespread thawing of permafrost, death of coral reefs in warm waters, and the collapse of an oceanic current in the North Atlantic.
- Once the planet surpasses the 1.5 degrees Celsius threshold, additional tipping points such as the demise of boreal forests, mangroves, and seagrass meadows may be breached.
- The report warns that crossing these tipping points could have catastrophic consequences for societies, potentially escalating violent conflicts, mass displacement, and financial instability.
4. How to Avoid Breaching Climate Tipping Points?
- Preventing the breach of climate tipping points requires urgent action to reduce greenhouse gas emissions. However, global efforts thus far have fallen short. In 2023, greenhouse gas concentrations in the atmosphere reached unprecedented levels, as reported by C3S and the Copernicus Atmosphere Monitoring Service (CAMS). Carbon dioxide concentrations rose by 2.4 parts per million (ppm) compared to 2022, while methane concentrations increased by 11 parts per billion (ppb).
- The Global Tipping Points Report emphasized that current global governance mechanisms are inadequate to effectively mitigate tipping point risks, especially in an equitable manner. The report cautioned that without prompt and decisive action, some tipping points may still be crossed by the time sufficient emergency measures are implemented on a global scale.
To avoid breaching tipping points, urgent and concerted efforts are needed to:
- Implement ambitious policies and measures to significantly reduce emissions from various sources, including fossil fuel combustion, deforestation, and industrial processes.
- Accelerate the transition towards renewable energy sources such as solar, wind, and hydroelectric power to decarbonize energy systems.
- Preserve and restore ecosystems such as forests, wetlands, and mangroves, which act as carbon sinks and help regulate the climate.
- Promote sustainable agriculture, land use, and transportation practices to minimize emissions and environmental degradation.
- Strengthen international cooperation and agreements to address climate change comprehensively and equitably, with a focus on supporting vulnerable communities and countries.
5. The Way Forward
Climate tipping points pose a grave threat. Urgent action across various sectors and international collaboration is crucial to avoid these irreversible changes and secure a livable future for our planet.
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For Prelims: Climate tipping points, Climate Change, renewable energy, Atlantic Meridional Overturning Circulation (AMOC), Climate tipping points Report
For Mains:
1. Explain the concept of climate tipping points and their potential consequences for the Earth's systems. (250 Words)
2. Discuss the effectiveness of current global efforts in reducing greenhouse gas emissions and preventing the breach of tipping points. Suggest concrete policy recommendations and mitigation strategies. (250 Words)
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Previous Year Questions
1. The UN Framework Convention on Climate Change (UNFCCC) has announced which country to host the 28th Conference of the Parties (COP28) in 2023? (SSC CGL 2023) A. UAE B. US C. UK D. Russia
2. The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty drawn at (UPSC 2010) A. United Nations Conference on the Human Environment, Stockholm, 1972
B. UN Conference on Environment and Development, Rio de Janeiro, 1992
C. World Summit on Sustainable Development, Johannesburg, 2002
D. UN Climate Change Conference Copenhagen, 2009
3. UNFCCC (United Nations Framework Convention on Climate Change) entered into from - (Sr. Teacher Gr II NON-TSP G.K. 2018) A. 21 March 1994 B. 5 June 1992 C. 12 May 1991 D. 5 June 1993
4. The 'Paris Agreement' adopted in Conference of the Parties (COP 21) in December 2015 will be effective provided the document is signed by: (UPSC CAPF 2016) A. 51 UNFCCC parties accounting for at least 51% of global greenhouse gas emission
B. 51 UNFCCC parties accounting for at least 55% of global greenhouse gas emission
C. 55 UNFCCC parties accounting for at least 55% of global greenhouse gas emission
D. 75 UNFCCC parties accounting for at least 51% of global greeenhouse gas emission
5. The term ‘Intended Nationally Determined Contributions’ is sometimes seen in the news in the context of (UPSC 2016) (a) pledges made by the European countries to rehabilitate refugees from the war-affected Middle East
6. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
Select the correct answer using the code given below. (a) 1 and 3 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3
7. Which one of the following pairs is correctly matched? (UPSC 2013) Geographical Feature Region (a) Abyssinian Plateau Arabia Answers: 1-A, 2-B, 3-A, 4-C, 5-B, 6-B, 7-B Mains1. ‘Climate change’ is a global problem. How India will be affected by climate change? How Himalayan and coastal states of India will be affected by climate change? (UPSC 2017)
2. Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC 2021)
3. Assess the impact of global warming on the coral life system with examples. (UPSC 2019)
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Source: The Indian Express
NAZOOL LAND
1. Context
Recently, Violence erupted in Uttarakhand’s Haldwani district after the administration conducted a demolition drive at the site of a mosque and madrasa, allegedly on Nazool land, killing five and injuring many more.
2. What is Nazool land?
Nazool land is a type of government-owned property that is typically leased to individuals or entities for a fixed period, usually ranging from 15 to 99 years. The land is not directly managed by the government, but rather by the leaseholders who are responsible for its upkeep and development.
There are two main categories of Nazool land:
- Rural Nazool land: This type of land is located in rural areas and is often used for agricultural purposes.
- Urban Nazool land: This type of land is located in urban areas and is often used for residential, commercial, or industrial purposes.
The process of leasing Nazool land is typically managed by the local revenue department. Interested parties can submit an application to the department, which will then consider the application and decide whether to grant a lease. If a lease is granted, the leaseholder will be required to pay a fixed annual rent to the government.
Nazool land can be a valuable resource for both individuals and businesses. It can provide an opportunity to access land at a relatively affordable price, and it can also help to promote economic development in both rural and urban areas. However, it is important to note that there are also some potential risks associated with leasing Nazool land. For example, the lease may not be renewed at the end of the term, and the government may have the right to reclaim the land at any time.
3. The Historical Roots of Nazool Land
Nazool land has a complex history intertwined with the colonial era and the aftermath of Indian independence.
- During British rule in India, kingdoms and kings that resisted British rule often faced military defeat. As a consequence, the British confiscated their lands as a form of punishment and control.
- After India gained independence, the British left the land behind. However, many former rulers lacked proper documentation to establish ownership, making it difficult to determine rightful claims.
- To address this ambiguity and assert state control, these lands were designated as "Nazool land," effectively becoming the property of the respective state governments.
- The classification of Nazool land has led to ongoing challenges and controversies. Descendants of former rulers may claim historical ownership, while communities occupying the land for generations might argue for their rights. Additionally, the lack of clear regulations and varying interpretations across states create further complexities.
4. Governing and Utilizing Nazool Land
Nazool land presents unique challenges in terms of governance and utilization.
Utilization
- Governments often utilize Nazool land for public good, including building schools, hospitals, Gram Panchayat offices, and other essential infrastructure.
- Large tracts of Nazool land, particularly in urban areas, are leased for developing housing societies, contributing to residential needs.
- Additionally, Nazool land can be leased for commercial, industrial, or agricultural purposes, depending on its location and suitability.
Governance
- Nazool land remains under the ownership of the respective state governments.
- The government rarely directly manages Nazool land. Instead, it's leased to various entities for a fixed period, typically ranging from 15 to 99 years.
- Each state has its own rules and regulations governing Nazool land, often based on the Nazool Lands (Transfer) Rules, 1956, but state-specific variations exist.
- These rules outline the process for leasing, renewing leases, and resolving disputes related to Nazool land.
5. Halwani Land Demolition and Nazool Land Status
- The recent demolition drive in Haldwani, Uttarakhand, has raised questions about the land's status and the legality of the action.
- The Haldwani district administration claims the land where the demolition took place is registered as Nazool land belonging to the Nagar Nigam (Municipal Council). This implies the government owns the land and can lease it for specific purposes.
- The administration justifies the drive as part of a 15-20 day effort to clear encroachments on Nagar Nigam properties, including those causing traffic congestion. They claim a notice was issued on January 30th demanding the removal of encroachments within three days or submission of ownership documents.
- Local residents claim the demolition happened before the next High Court hearing on February 14th, despite their request for a delay.
6. The Way Forward
The Haldwani case highlights the complex issues surrounding Nazool land, including historical legacy, ownership claims, and legal procedures. Further investigation and transparency are crucial to address these complexities and ensure fair land use.
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For Prelims: Nazool land, Nazool Lands (Transfer) Rules, 1956
For Mains:
1. What is Nazool land? Discuss the significance of Nazool land in India's socio-economic landscape. How does the leasing of Nazool land contribute to both rural and urban development? (250 Words)
2. What are the ethical and human rights implications of the demolition, considering the loss of life and displacement of residents? (250 Words)
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Source: The Indian Express
