2. About anti-defection law

The anti-defection law in India refers to the provisions laid down in the Tenth Schedule of the Constitution of India, which was inserted by the 52nd Amendment Act of 1985. The primary purpose of the anti-defection law is to curb "political defections" by legislators for personal gains or due to extraneous considerations, thereby promoting stability and integrity in the political system.

Key features and purposes of the anti-defection law include

• The law provides for the disqualification of elected legislators if they voluntarily give up the membership of their political party or disobey the directives issued by their party leadership on voting in legislative matters.
• By penalizing defections, the law aims to preserve stability and discipline within political parties. It discourages legislators from switching parties solely for opportunistic reasons, thereby promoting a more principled approach to politics.
• Preventing defections helps in maintaining stable governments by reducing the likelihood of frequent changes in government formation due to opportunistic alliances or individual defections. This stability is essential for effective governance and policy implementation.
• The law seeks to protect the mandate given by voters to a particular political party during elections. Defections can undermine the trust placed by voters in a party's policies and candidates, and the anti-defection law aims to safeguard the integrity of the electoral process.
• By discouraging defections and ensuring that legislators adhere to the party's stance on legislative matters, the law contributes to the smooth functioning of legislatures. It reduces disruptions caused by political uncertainties and promotes a more focused approach to lawmaking and governance.
• The anti-defection law upholds democratic principles by emphasizing the importance of party discipline and accountability. It encourages elected representatives to remain committed to the party's ideology and manifesto, thereby fostering a more transparent and accountable political system.

3. Has the anti-defection law ensured the stability of governments?

The effectiveness of the anti-defection law in ensuring the stability of governments in India is a subject of debate. While the law has certainly had some impact on curbing defections and promoting party discipline, its efficacy in maintaining government stability is not absolute.

Several factors contribute to this nuanced perspective

• The anti-defection law has succeeded in reducing blatant opportunistic defections where legislators switch parties solely for personal gains or political expediency. This has helped in preventing frequent changes in government formation and instability arising from such defections.
• In a multi-party democracy like India, coalition governments are common, and the anti-defection law has played a role in preserving these coalitions by deterring individual legislators from defecting and causing the collapse of the government.
• By discouraging defections and ensuring party discipline, the law has contributed to the smooth functioning of legislatures, which is essential for passing legislation and conducting parliamentary business. This has indirectly supported government stability by facilitating the enactment of policies and laws.
• Despite its provisions, the anti-defection law has faced challenges and criticisms. Some critics argue that the law has not entirely prevented defections, as legislators often find loopholes or exploit exceptions in the law to switch parties without facing disqualification.
• Government stability is influenced by various factors beyond the anti-defection law, including political dynamics, coalition dynamics, public opinion, and socio-economic factors. The law alone cannot guarantee government stability in the face of broader political uncertainties and challenges.
• While promoting stability, the anti-defection law has also raised concerns about its impact on democratic values such as freedom of speech and dissent within political parties. Critics argue that the law may stifle legitimate dissent and independent decision-making among legislators.

4. What constitutes defection? Who is the deciding authority?

Defection refers to the act of an elected representative or member of a political party abandoning their original party affiliation and joining another political party or forming a separate group, either independently or in association with others, without following the procedures laid down by their party or the law.

In the context of the anti-defection law in India, defection is specifically defined as:

• If a member of a political party voluntarily gives up their membership of that party.
• If an elected member votes or abstains from voting against the directives issued by their party leadership (whip) on a particular legislative matter, without obtaining prior permission.
• If a member of a political party joins another political party after being elected as a representative.
• If a member of a political party forms or joins a new group or political party, and such group consists of at least one-third of the members of the original political party in the legislature.

The deciding authority regarding defection cases is typically the Speaker or Chairman of the concerned legislative body (e.g., Lok Sabha, Rajya Sabha, State Legislative Assembly, or State Legislative Council). Upon receiving a complaint or petition regarding a defection case, the Speaker or Chairman examines the matter and makes a decision based on the provisions of the anti-defection law.

The Speaker or Chairman is responsible for determining whether the actions of the member(s) constitute defection as per the law and, if so, for issuing appropriate orders, including disqualification of the defectors from membership of the legislature. The decision of the Speaker or Chairman can be challenged in the courts through legal recourse if it is perceived to be arbitrary or in violation of constitutional principles.

5. Kihoto Hollohan case (1993)

The Kihoto Hollohan vs. Zachillhu and Others case, decided by the Supreme Court of India in 1992, is a landmark case related to defection and the role of the Speaker in Indian politics.

• The Tenth Schedule of the Indian Constitution, introduced through the 52nd Amendment in 1985, laid down provisions to curb defection by elected representatives. This case challenged the constitutionality of the Tenth Schedule, particularly the broad powers it granted to the Speaker in deciding defection cases.
• The petitioners argued that giving the Speaker such extensive power violated the doctrine of basic structure and potentially infringed on the freedom of speech, dissent, and conscience of elected representatives.
• The Supreme Court, in a majority judgment, upheld the Tenth Schedule and the Speaker's broad powers. The court reasoned that:
  • The Speaker occupies a crucial position in the parliamentary system and is expected to handle sensitive matters.
  • Granting the Speaker broad discretion is necessary for the efficient and effective functioning of the anti-defection law.
  • The court acknowledged the potential for bias but believed it was minimized by the Speaker's constitutional position and the requirement to act in good faith.

Significance: The Kihoto Hollohan case remains a pivotal judgment shaping Indian politics. It

• Established the Speaker's authority in deciding defection cases.
• affirmed the constitutionality of the anti-defection law.
• However, the case also sparked discussions about the balance between stability and individual rights in the context of defection. It continues to be debated whether the broad powers granted to the Speaker are truly necessary or pose a risk to democratic principles.

6. SR Bommai case (1994)

The SR Bommai case, officially known as S.R. Bommai vs. Union of India, is a landmark judgment delivered by the Supreme Court of India in 1994. This case dealt with issues related to the dismissal of state governments under Article 356 of the Constitution of India, popularly known as the President's Rule.

The case was prompted by the dismissal of the government in the state of Karnataka in 1989 under Article 356 by the then-central government led by Prime Minister Rajiv Gandhi. This dismissal led to legal challenges, including petitions filed by S.R. Bommai, who was the Chief Minister of Karnataka at the time of dismissal.

Key Issues

1. Whether the decision of the President to impose President's Rule in a state under Article 356 was immune from judicial review.
2. Whether the power of the President to dismiss a state government was absolute or whether there were limitations on this power.
3. Whether there were grounds for judicial intervention in cases of misuse or abuse of Article 356 by the Central government.

Key Judgments

• The Supreme Court held that the imposition of the President's Rule in a state is subject to judicial review. The Court ruled that the exercise of power under Article 356 is justiciable, and the President's satisfaction with imposing the President's Rule can be questioned in a court of law.
• The Court laid down guidelines and limitations on the exercise of power under Article 356. It held that the President's Rule can only be imposed in exceptional circumstances where the constitutional machinery in a state has completely broken down, and the Governor's report justifying the imposition of the President's Rule must be based on relevant material.
• The Court ruled that a floor test in the legislative assembly is the most effective way to determine the strength of the government and resolve political uncertainties. It held that the majority enjoyed by a government in the assembly should be tested on the floor of the House.

Significance: The SR Bommai case is significant as it established judicial guidelines and limitations on the use of Article 356 and provided clarity on the scope of judicial review in matters related to the dismissal of state governments. It reinforced the principles of federalism and democracy by limiting the Central government's power to dismiss state governments arbitrarily and ensuring accountability in the exercise of such powers.

7. The 52nd Amendment Act of 1985 and the 10th Schedule of the Constitution

The 52nd Amendment Act of 1985 was a significant amendment to the Constitution of India. It introduced the Tenth Schedule to the Constitution, commonly known as the anti-defection law. The primary objective of this amendment was to curb the practice of political defections by legislators, which often led to instability in governments and undermined the democratic process.

Key provisions of the 52nd Amendment Act and the Tenth Schedule include

1. The Tenth Schedule defines defection and provides criteria for disqualification of legislators who defect from their political party.
2. Legislators can be disqualified if they voluntarily give up their party membership or violate the directives issued by their party leadership on voting in legislative matters.
3. The Tenth Schedule empowers the Speaker or Chairman of the legislative body to decide on defection cases. The decision of the Speaker or Chairman regarding disqualification is final and cannot be questioned in a court of law except on certain grounds such as mala fide or violation of principles of natural justice.
4. The Tenth Schedule provides certain exceptions to disqualification, such as when a political party merges with another party, and two-thirds of its members agree to the merger.
5. While the decision of the Speaker or Chairman is generally final, it is subject to judicial review on certain grounds, such as violation of constitutional provisions or principles of natural justice.

The 52nd Amendment Act and the Tenth Schedule were introduced to promote stability and integrity in the political system by discouraging defections and preserving party discipline. However, over the years, there have been debates and discussions about the effectiveness of the anti-defection law and its impact on democratic principles such as freedom of speech and dissent within political parties. Nevertheless, the introduction of the Tenth Schedule remains a significant milestone in the constitutional history of India aimed at strengthening the democratic framework of the country.

8. 91st Amendment Act of 2003

The 91st Amendment Act of 2003 is an important amendment to the Constitution of India. This amendment introduced changes to Article 75 and Article 164, which deal with the appointment of Ministers in the Union Council of Ministers and State Council of Ministers, respectively. The primary objective of the 91st Amendment Act was to prevent the practice of "office of profit" by Members of Parliament (MPs) and Members of the State Legislature (MLAs).

Key provisions of the 91st Amendment Act include

1. The amendment clarified the definition of "office of profit" held by MPs and MLAs. An office of profit refers to any position held by a person which brings them some financial gain, advantage, or benefit.
2.  The amendment exempted certain offices from being considered as offices of profit. These include offices held by MPs or MLAs as Ministers, or positions that the Parliament or State Legislature has specifically declared as not being offices of profit.
3. The amendment specified that a person shall be disqualified from being a member of Parliament or State Legislature if they hold any office of profit under the Government of India or the Government of any state, other than offices exempted by law.
4. The amendment allowed for the Parliament or State Legislature to make laws specifying the offices that are exempted from disqualification. It also provided for the interpretation of the term "office of profit" by the Parliament or State Legislature.

The 91st Amendment Act aimed to ensure that legislators do not hold positions that could potentially compromise their independence and impartiality in discharging their duties as elected representatives. By preventing MPs and MLAs from holding offices of profit, the amendment sought to uphold the principles of transparency, accountability, and integrity in the functioning of the legislative bodies in India.

8.1. What is that ‘exception’?

• The exception mentioned in the context of the 91st Amendment Act of 2003 refers to certain offices that are exempted from being considered as "office of profit" and, therefore, do not lead to disqualification of MPs or MLAs holding such positions.
• The amendment provides that certain offices can be specifically exempted by law from being considered as offices of profit. This means that the Parliament or State Legislature can pass laws to declare certain positions or offices as not falling under the definition of office of profit, thereby allowing MPs or MLAs to hold these positions without facing disqualification.
• The purpose of this exception is to provide clarity and flexibility in determining which positions should be considered as offices of profit and which should be exempted. It allows for a case-by-case examination of positions held by legislators to ensure that they do not hold any office that could potentially compromise their independence or impartiality in discharging their duties as elected representatives.
• Examples of offices that may be exempted from being considered as offices of profit include positions held by legislators as Ministers or positions that are honorary or ceremonial, without any substantial remuneration or executive authority attached to them. However, the specific exemptions may vary depending on the laws passed by the Parliament or State Legislature.

9. The Way Forward

The anti-defection law remains a significant milestone in India's constitutional history, aimed at strengthening democratic principles and promoting a more transparent and accountable political system. There is a need to review and strengthen the implementation of the law, enhance transparency in defection cases, promote intra-party democracy, and encourage public awareness to uphold the integrity of the electoral process and ensure the stability of governments.

Source: The Indian Express

LINE OF ACTUAL CONTROL (LAC)

 

1.Context

For the second time this month, External Affairs Minister S. Jaishankar met his Chinese counterpart Wang Yi, with the two leaders highlighting the need to resolve the four-year-old military stand-off at the Line of Actual Control (LAC) with “purpose and urgency”.

Pic credits: TRT WORLD

 

2.About Line of Actual Control (LAC)

The LAC is the demarcation that separates Indian-controlled territory from Chinese-controlled territory.

India considers the LAC to be 3,488 km long, while the Chinese consider it to be only around 2,000 km

It is divided into three sectors:

 

The eastern sector which spans Arunachal Pradesh and Sikkim, The middle sector in Uttarakhand and Himachal Pradesh, and the western sector in Ladakh

 

3.The disagreement

• The alignment of the LAC in the eastern sector is along the 1914 McMahon Line, and there are minor disputes about the positions on the ground as per the principle of the high Himalayan watershed
• This pertains to India’s international boundary as well, but for certain areas such as Longju and Asaphila
• The line in the middle sector is the least controversial but for the precise alignment to be followed in the Barahoti plains.
• The major disagreements are in the western sector where the LAC emerged from two letters written by Chinese Prime Minister Zhou Enlai to PM Jawaharlal Nehru in 1959, after he had first mentioned such a ‘line’ in 1956.
• In his letter, Zhou said the LAC consisted of “the so-called McMahon Line in the east and the line up to which each side exercises actual control in the west”
• After the 1962 War, the Chinese claimed they had withdrawn to 20 km behind the LAC of November 1959
• During the Doklam crisis in 2017, the Chinese Foreign Ministry spokesperson urged India to abide by the “1959 LAC”
• India rejected the concept of LAC in both 1959 and 1962. Even during the war, Nehru was unequivocal: “There is no sense or meaning in the Chinese offer to withdraw twenty kilometres from what they call ‘line of actual control’

4.India's agreement to LAC

• LAC was discussed during Chinese Premier Li Peng’s 1991 visit to India, where PM P V Narasimha Rao and Li reached an understanding to maintain peace and tranquillity at the LAC. 
• India formally accepted the concept of the LAC when Rao paid a return visit to Beijing in 1993 and the two sides signed the Agreement to Maintain Peace and Tranquillity at the LAC
• The reference to the LAC was unqualified to make it clear that it was not referring to the LAC of 1959 or 1962 but to the LAC at the time when the agreement was signed
• To reconcile the differences about some areas, the two countries agreed that the Joint Working Group on the border issue would take up the task of clarifying the alignment of the LAC

5.How is the LAC different from the Line of Control with Pakistan?

The LoC emerged from the 1948 ceasefire line negotiated by the UN after the Kashmir War. It was designated as the LoC in 1972, following the Shimla Agreement between the two countries. It is delineated on a map signed by DGMOs of both armies and has the international sanctity of a legal agreement.

The LAC, in contrast, is only a concept – it is not agreed upon by the two countries, neither delineated on a map or demarcated on the ground.

 

For Prelims: LAC, LOC For Mains: 1.What is this ‘line of control’? Is this the line China have created by aggression. Comment 2.What we know about the clash between Indian and Chinese soldiers in Arunachal Pradesh

 

Previous Year Questions 1.The Line of Actual Control (LAC) separates  (Karnataka Civil Police Constable 2020) A.India and Pakistan B.India and Afghanistan C.India and Nepal D.India and China Answer (D) 2.LAC (Line of Actual Control) is an effective border between India and ______. (SSC CHSL 2020) A.Pakistan B.Bhutan C.Sri Lanka D.China Answer (D)

 

 

 

Source:indianexpress

 

UNIVERSITY GRANTS COMMISSION (UGC)

 

 

 

1. Context: 

 

Congress president Mallikarjun Kharge on Thursday slammed the Narendra Modi government for interfering with the autonomy of the University Grants Commission (UGC) by “usurping” its power to sanction funds for higher education

 

2. University Grants Commission (UGC)

 

The University Grants Commission (UGC) is a statutory body in India that was established to oversee and maintain the standards of higher education. It was formed in 1956 under the University Grants Commission Act of 1956 and operates under the Ministry of Education, Government of India

 

The primary functions of the UGC include:

1. Allocating funds to universities and colleges.
2. Formulating and implementing academic standards for higher education institutions.
3. Monitoring and maintaining the quality of teaching, research, and examinations in universities.
4. Providing guidance and coordination among universities and colleges in the country.
5. Supporting and promoting innovations and improvements in the education system

 

3. Appointment, Tenure, Eligibility

 

University Grants Commission (UGC) Appointment, Tenure, and Eligibility

Position	Appointment Method	Tenure	Minimum Eligibility
Chairperson	Appointed by the President of India	5 years, extendable for another 5 years (subject to review)	Distinguished academician with: * Minimum 10 years of experience as Professor in a University system or 10 years in equivalent position at a reputed research/academic administrative organization. * Eminence in higher education. * No connection with the concerned university or its colleges.
Member	Appointed by the President of India	5 years, extendable for another 5 years (subject to review)	Renowned scholar/expert with: * Proven track record in teaching/research/administration in relevant field. * Minimum 10 years of experience as Professor/equivalent in a University/College/Institute of national importance. * Demonstrated commitment to higher education development.
Vice-Chancellor (University)	Appointed by Executive Council of the University	5 years, extendable for another 5 years	Distinguished academician with: * Minimum 10 years of experience as Professor in a University system or 10 years in equivalent position at a reputed research/academic administrative organization. * Eminence in the sphere of higher education. * No connection with the concerned university or its colleges.
Dean (Faculty) or Director (School/Institute)	Appointed by Executive Council of the University/Governing Council of the Institute	5 years, extendable for another 5 years	Eminent scholar with: * Minimum 10 years of experience as Professor in relevant field. * Exceptional research record and contributions to the discipline. * Strong administrative and leadership skills.
Professor	Through Selection Committee constituted by the University	Up to 5 years (initially), extendable based on performance review	Ph.D. in relevant subject with: * Proven track record of research publications in peer-reviewed journals. * Significant contribution to the discipline. * Experience in research supervision.
Associate Professor	Through Selection Committee constituted by the University	Up to 5 years (initially), extendable based on performance review	Ph.D. in relevant subject with: * Good academic record and publications. * Minimum 8 years of teaching/research experience in relevant field.
Assistant Professor	Through Selection Committee constituted by the University	Up to 5 years (initially), extendable based on performance review	Master's degree with at least 55% marks and Ph.D. in relevant/allied/cognate discipline OR Master's degree with NET/SLET/SET qualification.

 

 

4. University Grants Commission - Statutory Provisions

 

The University Grants Commission (UGC) operates under statutory provisions outlined primarily in the University Grants Commission Act, 1956. Here are some of the key statutory provisions governing the UGC:

• University Grants Commission Act, 1956: This is the primary legislation that established the UGC. It defines the roles, functions, powers, and responsibilities of the Commission. It also outlines the composition of the UGC, appointment procedures, and its authority to allocate funds to universities and colleges.

• UGC (Institutions Deemed to be Universities) Regulations, 2016: These regulations provide guidelines for institutions seeking the status of "Deemed to be University." They specify the criteria, application process, and conditions for granting this status.

• UGC (Minimum Standards of Instruction for the Grant of the First Degree through Non-formal/Distance Education) Regulations, 2017: These regulations specify the minimum standards for offering programs through distance education mode, ensuring quality education delivery.

• UGC (Open and Distance Learning) Regulations, 2017: These regulations govern the standards and norms for open and distance learning programs offered by universities and institutions in India.

• UGC (Establishment and Maintenance of Standards in Private Universities) Regulations, 2003: These regulations outline the norms and standards for the establishment and functioning of private universities, ensuring quality education.

• UGC (Prevention, Prohibition, and Redressal of Sexual Harassment of Women Employees and Students in Higher Educational Institutions) Regulations, 2015: These regulations mandate higher educational institutions to establish mechanisms for preventing and addressing sexual harassment.

• UGC (Promotion of Equity in Higher Educational Institutions) Regulations, 2012: These regulations aim to promote equity in higher education, focusing on providing opportunities to disadvantaged sections of society.

5. University Grants Commission - Powers and Functions

 

 

The University Grants Commission (UGC) in India is entrusted with several powers and functions aimed at promoting and regulating higher education in the country.

Some of its key powers and functions include:

• UGC allocates funds to universities and colleges for their development, improvement, and maintenance
• Provides financial assistance to encourage and support research activities in various academic disciplines
• UGC establishes and maintains academic standards in higher education to ensure quality across universities and colleges
• Develops frameworks and guidelines for curriculum development in different academic programs
• UGC recognizes universities in India and provides approval for the establishment of new universities
• Monitors the quality of education, teaching, research, and examinations in universities to ensure adherence to set standards
• UGC promotes and supports research activities by providing grants, fellowships, and scholarships to students and faculty members
• Facilitates coordination and cooperation among universities and other higher educational institutions
• Advises the Central and State governments on matters related to higher education policies, regulations, and development
• Provides guidance, assistance, and recommendations to universities for enhancing their academic and research standards
• Conducts assessments and accredits higher education institutions to ensure and improve quality
• Undertakes periodic reviews and assessments to maintain and enhance the quality of education
• Implements programs and initiatives to promote access to higher education for underprivileged and marginalized sections of society
• Develops and revises regulations and guidelines governing various aspects of higher education, such as distance education, deemed universities, private universities, etc
• Collects, analyzes, and maintains data related to higher education for policy formulation and decision-making purposes

 

6.Institutions which grant Degree

 

 

In India, degrees are granted by various types of institutions that are recognized and authorized to award them.

These institutions include:

• Central Universities: Established by an Act of Parliament and are under the purview of the central government.
• State Universities: Established by state governments within their respective states.
• Deemed Universities: Granted the status of "Deemed to be University" by the University Grants Commission (UGC)
• Many colleges are affiliated with universities and offer undergraduate and postgraduate programs. The degrees awarded by these colleges are conferred by the affiliated university
• Some colleges have been granted autonomy by the University Grants Commission or the respective university. These colleges have the authority to design their curriculum and conduct examinations, and they award degrees on their own
• Certain institutes, like the Indian Institutes of Technology (IITs), National Institutes of Technology (NITs), Indian Institutes of Management (IIMs), and others designated as Institutes of National Importance, have the authority to award degrees
• Institutions like Indira Gandhi National Open University (IGNOU) and others recognized by the Distance Education Bureau (DEB) offer distance education programs and award degrees

These institutions adhere to the guidelines and regulations set by regulatory bodies like the University Grants Commission (UGC), All India Council for Technical Education (AICTE), Bar Council of India (BCI), Medical Council of India (MCI), and others to maintain the quality and standards of education while awarding degrees in their respective fields of expertise

 

7. Challenges regarding the University Grants Commission

 

The University Grants Commission (UGC) in India, despite its significant role in regulating and fostering higher education, faces several challenges:

Insufficient Funding: The allocated funds might not always meet the growing needs of universities and colleges, impacting infrastructure development, research, and educational quality

Ensuring Quality: Maintaining and assuring consistent quality across a diverse range of institutions, especially in rapidly evolving fields, can be challenging.

Accreditation Processes: Some institutions struggle to meet accreditation criteria, impacting their ability to offer recognized degrees

Rapid Changes in Education: Keeping regulations updated and aligned with the evolving educational landscape, including emerging technologies and global standards, poses a challenge

Global Rankings: Enhancing the global competitiveness of Indian higher education institutions in terms of rankings and international collaborations is an ongoing challenge

Industry-Relevant Skills: Aligning educational programs with industry needs to enhance employability requires continuous curriculum updates and industry collaboration

 

8. University Grants Commission - Historical Background

The University Grants Commission (UGC) in India has a rich historical background that traces back to the pre-independence era and has evolved significantly over time:

Pre-Independence Era:

• 1920s-1940s: Before India gained independence, the idea of a body to oversee and promote higher education emerged. The need for such an institution was discussed during the 1920s and 1930s.

Post-Independence Formation:

• 1947: After India gained independence in 1947, discussions intensified regarding the establishment of a commission to oversee higher education and allocate funds to universities and colleges.
• 1950: The UGC was initially set up as an ad-hoc committee to oversee the allocation of grants to universities and colleges.
• 1956: The University Grants Commission Act was passed on December 28, 1956, establishing the UGC as a statutory body. This formalized its role in overseeing and promoting higher education.

Evolution and Functions:

• Early Years: Initially, the UGC focused on disbursing grants and fostering the development of universities and colleges.
• Expanding Role: Over time, the UGC's role expanded to encompass setting academic standards, promoting research, and advising the government on higher education policies.
• Regulatory Functions: It started playing a more regulatory role by formulating guidelines and regulations for various aspects of higher education.

Milestones and Amendments:

• 1960s-1970s: The UGC underwent amendments to accommodate changes in the higher education landscape and to enhance its effectiveness.
• Subsequent Decades: The UGC continued to evolve, adapting to the changing needs of higher education, introducing reforms, and addressing emerging challenges.

 9. Way forward

 

 Throughout its history, the UGC has adapted to the changing educational scenario in India, expanding its functions and responsibilities to meet the evolving needs of higher education. It remains a key institution in the Indian education system, contributing significantly to the development and enhancement of higher education across the country

 

Source: The Hindu

 

FREE TRADE AGREEMENT 

1. Context

To create legroom for signing free trade agreements (FTAs) with developed nations such as the UK and European Union, the Union Budget 2024 has introduced amendments in the Customs Act, liberalising compliance with value-addition norms that typically guard against misuse of concessions agreed in a trade pact

 

2. About the Free Trade Agreement

• A Free Trade Agreement (FTA) is an agreement between two or more countries to reduce or eliminate barriers to trade, such as tariffs, quotas, and subsidies.
• FTAs can also include provisions on other issues, such as investment, intellectual property, and labour standards.
• The goal of an FTA is to promote trade and economic growth between the signatory countries.
• By reducing or eliminating trade barriers, FTAs can make it easier for businesses to export their goods and services to other countries, which can lead to increased production, employment, and innovation.

3. Types of Free Trade Agreement

• Bilateral Free Trade Agreement (BFTA) involves two countries, aiming to promote trade and eliminate tariffs on goods and services between them.  It establishes a direct trade relationship, allowing for a more focused and tailored agreement between the two nations.
• Multilateral Free Trade Agreement (MFTA) Involving three or more countries, an MFTA seeks to create a comprehensive trade bloc, promoting economic integration on a larger scale. It requires coordination among multiple parties, addressing diverse economic interests and fostering a broader regional economic landscape.
• Regional Free Trade Agreement (RFTA) involves countries within a specific geographic region, aiming to enhance economic cooperation and integration within that particular area. It focuses on addressing regional economic challenges and fostering collaboration among neighbouring nations.
• Preferential Trade Agreement (PTA) involves a reciprocal reduction of tariffs and trade barriers between participating countries, granting preferential treatment to each other's goods and services. It allows countries to enjoy trading advantages with specific partners while maintaining autonomy in their trade policies with non-participating nations.
• Comprehensive Economic Partnership Agreement (CEPA) is a broad and advanced form of FTA that goes beyond traditional trade barriers, encompassing various economic aspects such as investment, intellectual property, and services. It aims for a more comprehensive economic partnership, encouraging deeper integration and collaboration between participating countries.
• Customs Union While not strictly an FTA, a Customs Union involves the elimination of tariffs among member countries and the establishment of a common external tariff against non-member nations. It goes beyond standard FTAs by harmonizing external trade policies, creating a unified approach to trade with the rest of the world.
• Free Trade Area (FTA) with Trade in Goods (TIG) and Trade in Services (TIS): Some FTAs specifically emphasize either trade in goods or trade in services, tailoring the agreement to the specific economic strengths and priorities of the participating countries. This approach allows nations to focus on areas where they have a comparative advantage, fostering specialization and efficiency.

4. India's Free Trade Agreements

India is a member of several free trade agreements (FTAs) and is currently negotiating others.  India's FTAs have helped to reduce trade barriers and promote trade and economic growth. They have also helped to attract foreign investment and create jobs. 

• The South Asian Free Trade Agreement (SAFTA) was signed in 1995 by the seven countries of the South Asian Association for Regional Cooperation (SAARC). SAFTA aims to reduce or eliminate tariffs on trade between the member countries.
• The India-Bangladesh FTA was signed in 2010 and came into force in 2011. It is a comprehensive FTA that covers goods, services, and investments.
• The India-Sri Lanka FTA was signed in 1999 and came into force in 2000. It is a comprehensive FTA that covers goods, services, and investments.
• The India-ASEAN Free Trade Agreement was signed in 2002 and came into force in 2010. It is a comprehensive FTA that covers goods, services, and investments.
• The India-Korea Comprehensive Economic Partnership Agreement (CEPA) was signed in 2010 and came into force in 2011. It is a comprehensive FTA that covers goods, services, and investments.
• The India-Japan Comprehensive Economic Partnership Agreement(CEPA) was signed in 2022 and came into effect in 2023. It is a comprehensive FTA that covers goods, services, and investments.
• The India-UAE Comprehensive Partnership Agreement (CEPA) was signed in 2022 and came into effect in 2022. It is a comprehensive FTA that covers goods, services, and investments.
• The India-Australia Economic Cooperation and Trade Agreement (ECTA) was signed in 2022 and came into effect in 2022. It is a comprehensive FTA that covers goods, services, and investments.

• The India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) was signed in 2010 and aims to enhance economic ties by addressing trade in goods and services, as well as investment and other areas of economic cooperation.
• The India-Thailand Free Trade Agreement was signed in 2003 and focuses on reducing tariffs and promoting trade in goods and services between India and Thailand.
• The India-Singapore Comprehensive Economic Cooperation Agreement (CECA) has been operational since 2005, this agreement covers trade in goods and services, as well as investment and intellectual property.
• The India-Nepal Trade Treaty While not a comprehensive FTA, India and Nepal have a trade treaty that facilitates the exchange of goods between the two countries.
• The India-Chile Preferential Trade Agreement was signed in 2006 and aims to enhance economic cooperation and reduce tariffs on certain products traded between India and Chile.

5.  India - UK Free Trade Agreement

5.1. Background

• Both countries have agreed to avoid sensitive issues in the negotiations.
• The interim (early harvest agreement) aims to achieve up to 65 per cent coverage for goods and up to 40 per cent coverage for services.
• By the time the final agreement is inked, the coverage for goods is expected to go up to "90 plus a percentage" of goods.
• India is also negotiating a similar early harvest agreement with Australia, which is supposed to set the stage for a long-pending Comprehensive Economic Cooperation Agreement that both countries have been pursuing for nearly a decade.
• While the commencement of negotiations does mark a step forward in the otherwise rigid stance adopted and when it comes to trade liberalisation, experts point to impediments and the potential for legal challenges going ahead.

5.2. GATT (General Agreement on Trade and Tariffs)

• The exception to the rule is full-scale FTAs, subject to some conditions.
• One rider, incorporated in Article XXIV.8 (b) of GATT, stipulates that a deal should aim to eliminate customs duties and other trade barriers on "Substantially all the trade" between the WTO member countries that are signatories to an FTA.
• For this Agreement, a free-trade area shall be understood to mean a group of two or more customs territories in which the duties and other restrictive regulations of commerce are eliminated on substantially all the trade between the constituent territories in products originating in such territories.
• It is often beneficial to negotiate the entire deal together, as an early harvest deal may reduce the incentive for one side to work towards a full FTA.
• These agreements are not just about goods and services but also issues like investment.
• If you are trying to weigh the costs and benefits, it is always better to have the larger picture in front of you.
• In the case of the early harvest agreement inked with Thailand, automobile industry associations had complained that relaxations extended to Bangkok in the early harvest had reduced the incentive for Thailand to work towards a full FTA.
• Early harvest agreements may serve the function of keeping trading partners interested as they promise some benefits without long delays, as India becomes known for long-drawn negotiations for FTAs.
• Government emphasis on interim agreements may be tactical so that a deal may be achieved with minimum commitments and would allow for contentious issues to be resolved later.

 

For Prelims: Free Trade Agreement, India-U.K, Bilateral Free Trade Agreement, G-20 Summit, Agenda 2030, Covid-19 Pandemic, SAARC, General Agreement on Trade and Tariffs, Comprehensive Economic Partnership Agreement, Multilateral Free Trade Agreement, Regional Free Trade Agreement, Preferential Trade Agreement, Customs Union,  For Mains:  1. Evaluate the potential impact of the India-UK FTA on the Indian economy, considering both positive and negative aspects (250 Words) 2. Critically evaluate the significance of Free Trade Agreements (FTAs) in promoting trade and economic growth, considering their potential benefits and drawbacks. (250 Words)

 

 

Previous Year Questions   1. Consider the following countries: 1. Australia 2. Canada 3. China 4. India 5. Japan 6. USA Which of the above are among the free-trade partners' of ASEAN? (UPSC 2018) A. 1, 2, 4 and 5          B.  3, 4, 5 and 6      C.  1, 3, 4 and 5       D.  2, 3, 4 and 6   Answer: C   2. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (UPSC 2018) (a) Industrial output fails to keep pace with agricultural output. (b) Agricultural output fails to keep pace with industrial output. (c) Poverty and unemployment increase. (d) Imports grow faster than exports. Answer: C 3. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following: (2010) Development of infrastructure facilities. Promotion of investment from foreign sources. Promotion of exports of services only. Which of the above are the objectives of this Act? (a) 1 and 2 only     (b) 3 only         (c) 2 and 3 only           (d) 1, 2 and 3 Answer: A 4. A “closed economy” is an economy in which (UPSC 2011) (a) the money supply is fully controlled (b) deficit financing takes place (c) only exports take place (d) neither exports nor imports take place Answer: D 5. With reference to the “G20 Common Framework”, consider the following statements: (UPSC 2022) 1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. Which of the statements given above is/are correct? (a) 1 only         (b) 2 only            (c) Both 1 and 2          (d) Neither 1 nor 2 Answer: C

 

 Source: The Hindu

 

KYOTO PROTOCOL

 

1. Context

That the international framework for fighting climate change has been ineffective is evident from the fact that none of the targets set by it has ever been met. It is also well known that the system is highly inequitable. And yet, any suggestion of an alternative approach risks being seen as heresy.

2. What is Kyoto Protocol?

• The Kyoto Protocol was an international agreement that aimed to reduce carbon dioxide (CO2) emissions and the presence of greenhouse gases (GHG) in the atmosphere.
• The essential tenet of the Kyoto Protocol was that industrialized nations needed to lessen the amount of their CO2 emissions.
• The protocol was adopted in Kyoto, Japan in 1997, when greenhouse gases were rapidly threatening our climate, life on the earth, and the planet.
• Other agreements like the Doha Amendment and Paris Climate Agreement address global warming.
• Ongoing talks in 2021 with complex issues of politics, money, and lack of consensus.
• U.S. withdrew from the agreement, citing unfair mandates and economic impact.
• Paris Climate Agreement of 2015 replaced the Kyoto Protocol.
• Paris Agreement includes commitments from major GHG-emitting countries to reduce pollution.

3. Understanding Kyoto Protocol

• The Kyoto Protocol mandated that industrialized nations cut their greenhouse gas emissions at a time when the threat of global warming was growing rapidly.
• The Protocol was linked to the United Nations Framework Convention on Climate Change (UNFCCC). It was adopted in Kyoto, Japan on Dec. 11, 1997, and became international law on Feb. 16, 2005.
• Countries that ratified the Kyoto Protocol were assigned maximum carbon emission levels for specific periods and participated in carbon credit trading. 
• If a country emitted more than its assigned limit, then it would be penalized by receiving a lower emissions limit in the following period.

4. Major Tenets

• Developed, industrialized countries made a promise under the Kyoto Protocol to reduce their annual hydrocarbon emissions by an average of 5.2% by the year 2012.
• This number would represent about 29% of the world's total greenhouse gas emissions.
• Targets depended on the individual country. As a result, each nation had a different target to meet by that year.
• Members of the European Union (EU) pledged to cut emissions by 8%, while the U.S. and Canada promised to reduce their emissions by 7% and 6%, respectively, by 2012.

5. Responsibilities of Developed Vs. Developing Nations

• The Kyoto Protocol recognized that developed countries are principally responsible for the current high levels of GHG emissions in the atmosphere as a result of more than 150 years of industrial activity.
• As such, the protocol placed a heavier burden on developed nations than on less-developed nations.
• The Kyoto Protocol mandated that 37 industrialized nations plus the EU cut their GHG emissions.
• Developing nations were asked to comply voluntarily, and more than 100 developing countries, including China and India, were exempted from the Kyoto Agreement altogether.

6. Particular function for Developing Countries

• The protocol separated countries into two groups: Annex I contained developed nations, and Non-Annex I referred to developing countries.
• The protocol placed emission limitations on Annex I countries only. Non-Annex I nations participated by investing in projects designed to lower emissions in their countries.
• For these projects, developing countries earned carbon credits, which they could trade or sell to developed countries, allowing the developed nations a higher level of maximum carbon emissions for that period.
• In effect, this function helped the developed countries to continue emitting GHG vigorously.
• The United States, which had ratified the original Kyoto Agreement dropped out of the protocol in 2001.
• The U.S. believed that the agreement was unfair because it called only for industrialized nations to limit emissions reductions, and it felt that doing so would hurt the U.S. economy.

7. Kyoto Mechanism

The Kyoto Protocol established three different mechanisms to enable countries additional ways to meet their emission-limitation target. The three mechanisms are:

• The International Emissions Trading mechanism: Countries that have excess emission units permitted to them but not used can engage in carbon trading and sell these units to countries over their target.
• The Clean Development Mechanism: Countries with emission-reducing or limiting commitments may implement emission-reducing projects in developing countries to earn certified emission-reduction credits.
• The Joint Implementation mechanism: Countries with emission-reducing or limiting commitments to earn emission-reducing units from a project in another party.

8. The Doha Amendment Extended Kyoto Protocol to 2020

• In December 2012, after the Protocol's first commitment period ended, parties to the Kyoto Protocol met in Doha, Qatar, to adopt an amendment to the original Kyoto Agreement.
• This so-called Doha Amendment added new emission-reduction targets for the second commitment period, 2012-2020, for participating countries.
• The Doha Amendment had a short life. In 2015, at the sustainable development summit held in Paris, all UNFCCC participants signed yet another Pact, the Paris Climate Agreement, which effectively replaced the Kyoto Protocol.

9. The Paris Climate Agreement

• The Paris Climate Agreement is a landmark environmental pact that was adopted by nearly every nation in 2015 to address climate change and its negative effects.
• The agreement includes commitments from all major GHG-emitting countries to cut their climate-altering pollution and to strengthen those commitments over time.
• A major directive of the deal calls for reducing global GHG emissions to limit the earth's temperature increase in this century to 2 degrees (Preferring a 1.5-degree increase ) Celsius above preindustrial levels.
• The Paris Agreement also provides a way for developed nations to assist developing nations in their efforts to adopt climate control, and it creates a framework for monitoring and reporting a country's climate goals transparently.

 

For Prelims: Kyoto Protocol, Paris Climate Agreement, Doha Amendment, European Union (EU), Carbon Border Adjustment Mechanism (CBAM), Green House Gas (GHG) emissions, Carbon credit Trading, UNFCCC (United Nations framework convention on climate change), and Clean Development mechanism. For Mains: 1. What were the main goals and objectives of the Kyoto Protocol?  Explain Why did the United States withdraw from the Kyoto Protocol, and what were the reasons cited? (250 words).

 

 

 

Previous year Question Consider the following pairs: (UPSC 2016) Terms have sometimes been seen in the news       Their origin 1. Annex-I Countries                                            Cartagena Protocol 2. Certified Emissions                                          Reductions Nagoya Protocol 3. Clean Development                                           Mechanism Kyoto Protocol Which of the pairs given above is/are correctly matched? A. 1 and 2 only B. 2 and 3 only C. 3 only D. 1, 2 and 3 Answer C

 Source: Investopedia