INTERNATIONAL COURT OF JUSTICE (ICJ)
1. Context
India slammed developed countries for causing the climate crisis during a landmark hearing at the International Court of Justice (ICJ)
2.Why Israel faced accusations at the World Court?
- South Africa brought a case against Israel to the ICJ on December 29, under UN’s 1948 Genocide Convention. In its application, South Africa argued that Israel, in its ongoing Gaza assault, has transgressed from the provisions of Article 2 of the Convention. This article defines the term “genocide” to mean “acts committed with intent to destroy, wholly or partly, a national, ethnic, racial, or religious group”.
- The ICJ will eventually decide whether Israel is committing genocide or not — this may take years. But first, it will decide whether it has jurisdiction on this matter, and whether the alleged acts fall under the 1948 Convention.
- South Africa has also sought interim relief for the Palestinians, and asked the ICJ to order Israel to immediately suspend all military operations in Gaza, as an interim measure.
- The court is likely to rule on this in a matter of weeks. While the court’s rulings are legally binding, it has no way to enforce them. Nonetheless, its opinions carry weight with the UN and other international institutions
3.What is UN’s 1948 Genocide Convention?
- The United Nations Convention on the Prevention and Punishment of the Crime of Genocide, commonly known as the Genocide Convention, was adopted by the United Nations General Assembly on December 9, 1948, and entered into force on January 12, 1951. It was one of the first major international treaties established in the aftermath of World War II, aiming to prevent and punish the crime of genocide.
- The Genocide Convention defines genocide as certain acts committed with the intent to destroy, in whole or in part, a national, ethnical, racial, or religious group. The acts specified in the convention include killing members of the group, causing serious bodily or mental harm, deliberately inflicting conditions leading to the group's physical destruction, imposing measures to prevent births within the group, and forcibly transferring children from the group to another.
- The convention recognizes genocide as a crime under international law and obligates its signatories to prevent and punish acts of genocide. Signatory states are required to take measures within their jurisdiction to prevent and punish genocide, both in times of peace and during armed conflicts. Additionally, the convention established the International Court of Justice (ICJ) as the primary judicial organ for disputes related to its interpretation and application.
- The Genocide Convention remains a crucial international legal instrument for addressing and preventing the most egregious crimes against humanity. It has played a significant role in shaping the framework for international criminal law and promoting accountability for those responsible for genocide
4.What is International Court of Justice?
The International Court of Justice (ICJ) is the principal judicial organ of the United Nations (UN). It was established in 1945 and began its activities in 1946. The ICJ is located in The Hague, Netherlands.
The main functions of the International Court of Justice include settling legal disputes between states and providing advisory opinions on legal questions referred to it by the UN General Assembly, the UN Security Council, or other specialized agencies and organs authorized by the UN. It is important to note that the ICJ only deals with legal disputes between states and does not have jurisdiction over individuals or non-state entities.
Key features of the International Court of Justice:
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Composition: The ICJ consists of 15 judges elected by the UN General Assembly and the UN Security Council. These judges serve nine-year terms, and the composition aims to represent a fair geographical distribution.
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Jurisdiction: The ICJ has two main types of jurisdiction:
- Contentious Jurisdiction: The ICJ hears cases between states that voluntarily submit their disputes to the Court. Both parties must agree to the Court's jurisdiction.
- Advisory Jurisdiction: The ICJ provides advisory opinions on legal questions referred to it by UN organs and specialized agencies. These opinions are advisory and not binding.
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Adjudication: The Court uses a range of legal principles, treaties, and customary international law to make its decisions. The judgments of the ICJ are final and binding on the parties involved in the case.
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Independence: The ICJ operates independently of the UN General Assembly and the UN Security Council in its judicial functions. It is intended to function as a separate judicial body.
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Role in International Law: The ICJ contributes to the development and clarification of international law through its judgments and advisory opinions. Its decisions are considered influential in shaping the principles of international law
5.International Criminal Court and International Court of Justice
| Aspect | International Criminal Court (ICC) | International Court of Justice (ICJ) |
|---|---|---|
| Establishment | Established in 2002 by the Rome Statute | Established in 1945 by the United Nations Charter |
| Nature | Criminal court with jurisdiction over individuals for serious crimes | Principal judicial organ of the United Nations, handles state disputes |
| Jurisdiction | Primarily focuses on individuals for crimes like genocide, war crimes, crimes against humanity, and aggression | Resolves legal disputes between states, gives advisory opinions |
| Membership | States become members by ratifying the Rome Statute | Open to UN member states; states must accept ICJ's jurisdiction |
| Prosecutorial Authority | Independent Prosecutor appointed by the Assembly of States Parties | No prosecuting authority; relies on disputing states to present cases |
| Adjudication | Adjudicates cases against individuals for criminal responsibility | Adjudicates disputes between states; provides advisory opinions |
| Composition | Judges elected by the Assembly of States Parties | 15 judges elected by the UN General Assembly and the UN Security Council |
| Location | The Hague, Netherlands | The Hague, Netherlands |
| Focus | Individual criminal responsibility | State-to-state disputes, advisory opinions |
| Binding Decisions | Decisions are binding on individuals and states | Judgments and opinions are binding only on the parties involved |
| Role in International Law | Enforces and develops international criminal law | Contributes to the development of general principles of international law |
| Relationship with the UN | Independent organization but cooperates with the UN | Principal judicial organ of the UN |
6. Way forward
The ICJ will eventually decide whether Israel is committing genocide or not — this may take years. But first, it will decide whether it has jurisdiction on this matter, and whether the alleged acts fall under the 1948 Convention. South Africa has also sought interim relief for the Palestinians, and asked the ICJ to order Israel to immediately suspend all military operations in Gaza, as an interim measure. The court is likely to rule on this in a matter of weeks. While the court’s rulings are legally binding, it has no way to enforce them. Nonetheless, its opinions carry weight with the UN and other international institutions
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For Prelims: Current events of national and international importance.
For Mains: General Studies II: Important International institutions, agencies and fora- their structure, mandate.
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Source: Indianexpress
PROBA - 3
1. Context
After being rescheduled for a day as an anomaly was detected, the Indian Space Research Organisation (ISRO) successfully launched the PROBA-3 (Project for Onboard Autonomy) mission of the European Space Agency aboard a Polar Satellite Launch Vehicle-C59 rocket
2. What is Proba-3?
Proba-3, developed at an estimated cost of 200 million euros, is anticipated to have a mission duration of two years. It will be launched into a highly elliptical orbit with dimensions of approximately 600 x 60,530 km and an orbital period of 19.7 hours.
The mission comprises two satellites that will be launched together. After separation, they will operate in tandem to function as a solar coronagraph. This instrument blocks the Sun's intense light, enabling observation of its surrounding atmosphere and celestial objects
3. What does Proba-3 Study?
Observing the Sun's corona, which can reach temperatures of up to 2 million degrees Fahrenheit, presents significant challenges for instruments. Nonetheless, studying the corona is crucial, as it is the origin of space weather phenomena like solar storms and solar winds. These events can disrupt satellite-based communication, navigation systems, and power grids on Earth.
To investigate these effects, Proba-3 is equipped with three advanced instruments:
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Association of Spacecraft for Polarimetric and Imaging Investigation of the Corona of the Sun (ASPIICS): This coronagraph focuses on the Sun's outer and inner corona, typically visible during solar eclipses. It features a 1.4-meter occulting disk to block sunlight, enabling detailed observations of this region.
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Digital Absolute Radiometer (DARA): This instrument continuously measures the Sun’s total energy output, known as total solar irradiance.
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3D Energetic Electron Spectrometer (3DEES): Designed to measure electron fluxes in Earth's radiation belts, this instrument provides valuable data for understanding space weather
4. How is Proba-3 different from others?
- The two satellites, the Occulter Spacecraft (200 kg) and the Coronagraph Spacecraft (340 kg), are designed to simulate a solar eclipse by precisely aligning in Earth's orbit. This alignment enables one satellite to cast a shadow onto the other, mimicking the natural conditions of an eclipse.
- While a natural solar eclipse allows solar physicists to observe the Sun’s corona for approximately 10 minutes during an average of 1.5 eclipse events per year, Proba-3 will provide six hours of observation time, equivalent to 50 eclipse events annually. This extended observation period will significantly enhance the study of the Sun's corona.
- Both satellites will continuously face the Sun and maintain a precise formation within a few millimetres. They will then separate to a distance of 150 metres for six-hour observation periods. In this arrangement, one satellite will serve as a telescope, positioned at the centre of the shadow cast by the other satellite, which blocks direct sunlight.
- Through this stable and artificial eclipse created by the Occulter, the Sun’s intense light will be obscured, allowing the coronagraph to capture detailed images and facilitate in-depth studies of the solar corona’s lesser-known aspects. This entire process will rely on autonomous and precise flight formation
5. Benefits of Proba-3 to India
Proba-3 is recognized as a technology demonstration mission by the European Space Agency (ESA). The selection of ISRO to launch this mission highlights India’s dependable space launch infrastructure and advancing capabilities in the space sector. The mission's cost-effective launch further adds to its appeal.
Additionally, there is a significant likelihood that Indian solar physicists will gain exclusive access to data from Proba-3. Notably, some Indian researchers have collaborated with their Belgian counterparts in shaping the mission's scientific objectives
Source: Indianexpress
KUKI-ZOMI TRIBE
1. Context
The Indigenous Tribal Leaders’ Forum (ITLF), an organisation of the Kuki-Zo people, reiterated its demand for a separate administration for its member tribes after the bodies of 12 youths were laid to rest in Manipur’s Churachandpur district
2. About Kuki and Zomi tribes
The Kuki-Zomi people are a diverse group of ethnicities inhabiting the mountainous regions of Northeast India, Myanmar, and Bangladesh. They share a common ancestry and cultural heritage, and their name reflects this shared identity: "Kuki" is a more general term encompassing various sub-tribes, while "Zomi" is a relatively recent term adopted by some Kuki communities to emphasize their distinct identity and cultural heritage.
- The exact origins of the Kuki-Zomi people remain unclear, but linguistic evidence suggests they migrated from Southeast Asia centuries ago. Today, they are found primarily in the Indian states of Manipur, Mizoram, Assam, Nagaland, and Tripura, as well as in Chin State, Myanmar, and the Chittagong Hill Tracts of Bangladesh.
- The Kuki-Zomi people comprise numerous sub-tribes, each with its own distinct dialect and cultural practices. Some of the major sub-tribes include the Hmar, Thadou, Paite, Gangte, Vaiphei, Zou, Aimol, and Anal. These sub-tribes speak various Kuki-Chin languages, which belong to the Tibeto-Burman language family.
- The Kuki-Zomi people have a rich and vibrant culture characterized by strong communal bonds, traditional music and dance, and colorful handicrafts. Their traditional attire is often adorned with intricate beadwork and embroidery, reflecting their artistic skills and cultural pride.
- The Kuki-Zomi people have faced various challenges throughout their history, including displacement, conflict, and marginalization. However, they have demonstrated remarkable resilience and adaptability, preserving their unique culture and traditions despite these hardships.
- In recent years, the Kuki-Zomi people have made significant strides in education, entrepreneurship, and political representation. They are increasingly active in advocating for their rights and cultural identity, and their contributions to the social and economic development of the regions they inhabit are becoming increasingly recognized.
3. Delisting Proposal in Manipur
- The representation calling for the potential removal of specific Kuki and Zomi tribes from the Scheduled Tribes (ST) list in Manipur stems from the ongoing ethnic conflict that has persisted for eight months.
- This conflict, initiated on May 3, 2023, arose following an order from the Manipur High Court directing the State government to recommend the inclusion of Meiteis in the ST list to the Centre.
- As the Centre now requests the State government to examine the representation for the delisting of Kuki and Zomi tribes, there is a risk of exacerbating existing tensions between the valley-based Meitei people and the hills-based Kuki-Zo (ST) people in the State.
- One significant factor driving the Meiteis' demand for ST status is their inability to own land in the forested hill districts, where only STs are permitted to own land.
- Notably, this marks the first instance where members of the Meitei community are advocating for their inclusion in the ST list by contending that specific Kuki and Zomi tribes should not be part of it.
- This development may also have broader implications for the criteria used to designate groups as Scheduled Tribes, a framework that has remained unchanged since its introduction by the Lokur Commission in 1965.
Key Arguments in the Kuki-Zomi Delisting Proposal
- In Mr. Thounaojam’s representation, objections have been raised against the inclusion of three specific entries in the Scheduled Tribes (ST) list of Manipur namely, “Any Mizo(Lushai) Tribes,” “Zou,” and “Any Kuki Tribes.”
- The primary argument put forth for the exclusion of these entries is that they are not considered "indigenous" to the land of Manipur.
- According to the representation, there is no historical mention of these specific tribes residing in Manipur in pre-Independence Censuses.
- Furthermore, the representation contends that the vagueness surrounding the terms "Any Mizo (Lushai) Tribes" and "Any Kuki Tribes" in the ST list has purportedly facilitated illegal immigrants from Myanmar and Bangladesh in wrongfully obtaining benefits intended for Scheduled Tribes in India.
4. About Lokur Commission
The Lokur Commission, officially known as the Advisory Committee on the Revision of Lists of Scheduled Castes and Scheduled Tribes, played a significant role in shaping the landscape of tribal communities in India. Established in 1965 by the Government of India. Chaired by Justice N.N. Lokur, a former Chief Justice of India. Tasked with revising the lists of Scheduled Castes (SCs) and Scheduled Tribes (STs) in a rational and scientific manner.
Criteria for Scheduled Tribes:
- The Commission established five key criteria for identifying a community as an ST:
- Primitive Traits and Distinctive Culture
- Geographical Isolation
- Shyness of Contact with the Community at Large
- Backwardness
- Pre-dominantly Tribal Population
Impact on Tribal Communities
- The Lokur Commission's recommendations led to the addition of several new communities to the ST list, granting them access to educational and economic benefits reserved for STs.
- However, the criteria employed, particularly the emphasis on "primitive traits," have been criticized for being outdated, stereotypical, and potentially hindering social progress for tribal communities.
Criticisms and Debates
- The Commission's classification of certain communities as "primitive" has been challenged for being derogatory and inaccurate.
- The criteria used have been accused of being subjective and open to misinterpretation, leading to inconsistencies and exclusion of deserving communities.
- Debates continue regarding the need for revising or even abolishing the existing criteria altogether, with calls for a more nuanced approach based on social, economic, and cultural factors.
Legacy
- Despite the criticisms, the Lokur Commission's work remains influential in the administration of tribal affairs in India.
- Its report and recommendations form the basis for the current ST list and continue to be referenced in discussions about tribal inclusion and development.
- The Commission's legacy highlights the importance of ongoing discussions about the definition of "tribal" identity and the need for criteria that are fair, inclusive, and responsive to the evolving realities of tribal communities in India.
5. The National Commission for Backward Classes
The National Commission for Backward Classes (NCBC) stands as a crucial advocate for the rights and welfare of Other Backward Classes (OBCs) in India. Established in 1993 and elevated to constitutional status in 2018, the NCBC plays a multi-faceted role in ensuring social justice and equality for OBC communities.
Mandate and Responsibilities
- The NCBC probes cases of discrimination and denial of rights due to OBC status. It monitors the implementation of various government policies and schemes aimed at OBC development.
- The Commission regularly assesses the social, educational, and economic advancement of OBCs. It provides recommendations to the government on policies and programs to bridge existing gaps and address emerging challenges.
- Individuals from OBC communities can approach the NCBC with complaints related to violations of their rights or benefits. The Commission takes necessary action to address these grievances and ensure justice.
- The NCBC conducts research on the diverse OBC communities, analyzing their specific needs and vulnerabilities. It promotes awareness about OBC issues and advocates for their inclusive participation in various spheres of Indian society.
Key Achievements
- The NCBC played a significant role in implementing the Right to Education Act (2009) and ensuring reservation quotas for OBC students in educational institutions.
- The Commission has been instrumental in promoting entrepreneurship and skill development programs among OBC communities, leading to greater economic participation and self-reliance.
- The NCBC has consistently pushed for legislation and policy changes that benefit OBCs, such as reservations in government jobs and promotions, access to healthcare, and land rights.
Challenges and Future Directions
- OBCs are a diverse group with varying needs and levels of marginalization. The NCBC faces the challenge of addressing these internal disparities and ensuring inclusivity within its advocacy efforts.
- The Commission often operates with limited resources, hindering its ability to effectively reach out to remote OBC communities and conduct comprehensive research.
- Ensuring proper implementation of the NCBC's recommendations on the ground remains a crucial challenge. Stronger collaboration with state governments and local authorities is essential.
6. Examining Claims of Non-Indigeneity and Misuse
7. The Way Forward
The Kuki-Zomi delisting proposal in Manipur raises intricate questions about tribal identity, historical claims, and potential consequences for inter-community relations. Examining the arguments, historical context, and the role of institutions like the NCBC is essential for understanding the complexities of this issue and finding solutions that respect the rights and identities of all involved communities.
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For Prelims: kuki-zomi tribes, manipur, National Commission for Backward classes, STs, Lokur Commission, Other Backward Classes
For Mains:
1. Discuss the potential political and developmental implications of the proposed delisting. How might it affect land rights, access to resources, and inter-community relations in Manipur? (250 Words)
2. Assess the role of the National Commission for Backward Classes (NCBC) in addressing the complexities of tribal identity and ensuring social justice for marginalized communities. How can the NCBC be strengthened to better address issues like the Kuki-Zomi delisting proposal? (250 Words)
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Previous Year Questions
1. Who was appointed as the head of the OBC Sub-categorisation Commission?
(Maharashtra Talathi 2019)
A. Justice Geeta Mittal
B. Justice Manjula Chellur
C. Justice Tahilramani
D. Justice G. Rohini
2. Which of the following pairs of list and contents is/are correctly matched? (UPSC CAPF 2019)
1. State list Public health and sanitation
2. Union list Citizenship, naturalisation and aliens
3. Concurrent list Legal, medical and other
Select the correct answer using the code given below:
A. 1 only B. 1, 2 and 3 C. 2 and 3 only D. 3 only
Answers:1-D, 2- B
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Source: The Hindu
LINE OF ACTUAL CONTROL (LAC)
1.Context
The government’s decision to offer statements on China, suo motu, in both Houses of Parliament and to brief a parliamentary panel are positive but long overdue steps. Since 2020, following the Chinese transgression along the Line of Actual Control (LAC) and the deadly Galwan clashes, it has avoided divulging details of the negotiations with China over the actions of the People’s Liberation Army (PLA)
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:
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The eastern sector which spans Arunachal Pradesh and Sikkim,
The middle sector in Uttarakhand and Himachal Pradesh, and the western sector in Ladakh
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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.
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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 |
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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
RETAIL INFLATION
1. Context
India’s retail inflation is likely to have eased to around 5% in November from October’s 14-month high of 6.2%, with some cooling of food prices on a month-on-month basis though vegetable, pulses and edible oil prices remained elevated compared to last November, and home cooked vegetarian meal costs rose 7%, according to two price tracking reports
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: Inflation, MPC, CPI, WPI, food Inflation, RBI, Headline inflation, Core inflation For Mains:
1. Explain the concept of inflation and its impact on an economy. Discuss the various causes of inflation and the measures that can be taken to control it, with specific reference to India. (250 Words)
2. What are the challenges and opportunities associated with managing inflation in India? Evaluate the effectiveness of recent policy measures in addressing inflationary pressures and maintaining price stability. Suggest strategies for sustainable economic growth while managing inflation risks. (250 Words)
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Previous Year Questions
1. Consider the following statements: (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
2. Concerning the Indian economy, consider the following: (UPSC 2015)
Which of the above is/are component(s) of Monetary Policy? (a) 1 only (b) 2, 3 and 4 (c) 1 and 2 (d) 1, 3 and 4
3. An increase in Bank Rate generally indicates: (UPSC 2013) (a) Market rate of interest is likely to fall.
(b) Central bank is no longer making loans to commercial banks.
(c) Central bank is following an easy money policy.
(d) Central bank is following a tight money policy.
4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below: A. 1 only B. 1 and 2 only C. 3 only D. 2 and 3 only 5. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
6. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
7. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
8. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
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
Answers: 1-C, 2-C, 3-D, 4-A, 5-D, 6-B, 6-C, 7-B
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Source: The Hindu
MICRO SMALL MEDIUM ENTERPRISES (MSME)
1. Context
Commerce and Industry Minister Piyush Goyal urged the industry to share specific issues they are facing in accessing bank credit and suggested the government is open to exploring alternate financing models for Micro, Small, and Medium Enterprises (MSMEs)
2. Definition of 'MSME'
Micro, Small, and Medium Enterprises (MSMEs) are businesses that are characterized by their relatively small size in terms of employees, assets, and revenue. These enterprises play a crucial role in economies around the world, contributing to employment generation, economic growth, and innovation. The definitions of MSMEs can vary from country to country, but there are general guidelines provided by international organizations like the World Bank and the United Nations.
The definition of MSME varies from country to country. In India, an MSME is defined as a business with:
- Micro enterprise: Up to 10 employees and an investment of up to INR 1 crore (approximately USD 130,000)
- Small enterprise: Up to 50 employees and an investment of up to INR 10 crore (approximately USD 1.3 million)
- Medium enterprise: Up to 200 employees and an investment of up to INR 50 crore (approximately USD 6.5 million)
3. Importance of MSME's
The importance of MSMEs in an economy includes:
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Employment Generation: MSMEs are significant contributors to employment, especially in economies with limited opportunities for large-scale industrial employment.
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Local Economic Development: MSMEs often operate at a local level, contributing to the development of local communities and economies.
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Innovation and Entrepreneurship: Many innovative ideas and entrepreneurial ventures start as MSMEs. They have the flexibility to adapt quickly to changing market demands and experiment with new business models.
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Diversity and Resilience: A diverse ecosystem of MSMEs can contribute to a more resilient economy by reducing dependence on a few large corporations.
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Contributions to GDP: The combined contributions of MSMEs to a country's Gross Domestic Product (GDP) can be significant, even if individual businesses are relatively small.
4. New Criteria for MSME's
The new criteria for the classification of micro, small and medium enterprises (MSMEs) in India was notified by the Ministry of Micro, Small and Medium Enterprises (MSME) on June 1, 2020. The new criteria are based on the investment in plant and machinery or equipment and the annual turnover of the enterprise.
The following are the new criteria for the classification of MSMEs:
- Micro enterprise: An enterprise with:
- Investment in plant and machinery or equipment not more than Rs.1 crore (approximately USD 130,000)
- Annual turnover not more than Rs. 5 crore (approximately USD 650,000)
- Small enterprise: An enterprise with:
- Investment in plant and machinery or equipment not more than Rs.10 crore (approximately USD 1.3 million)
- Annual turnover not more than Rs. 50 crore (approximately USD 6.5 million)
- Medium enterprise: An enterprise with:
- Investment in plant and machinery or equipment not more than Rs.50 crore (approximately USD 6.5 million)
- Annual turnover not more than Rs. 250 crore (approximately USD 3.25 million)
5. Challenges faced by MSME's
Micro, small, and medium enterprises (MSMEs) play a vital role in the Indian economy, accounting for over 90% of all enterprises and employing over 40% of the workforce. However, MSMEs face a number of challenges, including:
- Access to finance: MSMEs often find it difficult to obtain loans from banks and other financial institutions due to their lack of collateral and track record. This can make it difficult for them to expand their businesses or invest in new technologies.
- Lack of skills: MSMEs often lack the skills and knowledge needed to compete in the global market. This can make it difficult for them to develop new products and services, or to adopt new technologies.
- Competition from large businesses: MSMEs often face competition from large businesses, which have more resources and economies of scale. This can make it difficult for MSMEs to compete on price or quality.
- Bureaucracy: MSMEs often face a number of bureaucratic hurdles, such as obtaining licenses and permits. This can be time-consuming and costly, and can discourage entrepreneurs from starting or expanding their businesses.
- Infrastructure constraints: MSMEs often face infrastructure constraints, such as poor roads and electricity supply. This can make it difficult for them to transport their goods and services, or to operate their businesses efficiently.
- Unstable government policies: MSMEs are often affected by unstable government policies, such as changes in tax rates or import duties. This can make it difficult for them to plan for the future and make investment decisions.
6. Government Schmes for MSME's
Here are some of the prominent schemes and programs for MSMEs by the Union Government of India:
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Micro Units Development and Refinance Agency (MUDRA) Yojana:
- MUDRA Yojana aims to provide financial support to small and micro enterprises by offering loans through various financial institutions. It consists of three categories: Shishu, Kishor, and Tarun, based on the loan amount.
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Pradhan Mantri Mudra Yojana (PMMY):
- PMMY is a scheme to provide financial assistance for the establishment, expansion, and modernization of MSMEs. It offers loans without collateral security up to a certain limit.
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Credit Linked Capital Subsidy Scheme (CLCSS):
- CLCSS provides capital subsidy to MSMEs for technology upgradation, modernization, and replacement of their plant and machinery to improve competitiveness.
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Zero Defect Zero Effect (ZED) Certification Scheme:
- ZED certification encourages MSMEs to adopt best practices and quality standards to enhance product quality while minimizing environmental impact.
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Make in India Initiative:
- The Make in India campaign encourages domestic and foreign companies to manufacture products in India, fostering the growth of the manufacturing sector and MSMEs.
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Stand Up India Scheme:
- This scheme aims to promote entrepreneurship among women and Scheduled Caste/Scheduled Tribe communities by providing loans for starting new enterprises.
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Technology Upgradation Support for MSMEs (TEQUP):
- TEQUP focuses on supporting MSMEs in adopting modern technology and upgrading their production processes to improve quality and competitiveness.
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National Manufacturing Competitiveness Programme (NMCP):
- NMCP includes various components such as Lean Manufacturing Competitiveness Scheme, Design Clinic Scheme, and more, aimed at enhancing the competitiveness of the manufacturing sector, including MSMEs.
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Entrepreneurial and Managerial Development of SMEs (EMD-SME):
- EMD-SME focuses on providing training, capacity-building, and skill development to entrepreneurs and managers of MSMEs.
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Skill India Initiative:
- While not exclusively for MSMEs, the Skill India program aims to provide skill training to individuals, including those in the MSME sector, to improve employability and entrepreneurship.
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Export Promotion Capital Goods (EPCG) Scheme:
- The EPCG scheme allows MSMEs to import capital goods for the purpose of upgrading technology and enhancing export competitiveness with certain duty benefits.
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Udyog Aadhaar Registration:
- The Udyog Aadhaar registration process simplifies the process of registering and obtaining various benefits for MSMEs, such as easier access to credit and government schemes.
7. Way forward
Addressing these challenges often requires a combination of government support, industry initiatives, access to finance, skill development programs, technology adoption, networking opportunities, and tailored solutions that take into account the unique needs of MSMEs.
Previous year Questions1. Consider the following statements with reference to India: (UPSC 2023)
1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.
2. All bank loans to the Micro, Small, and Medium Enterprises qualify under the priority sector.
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: B
2. Which of the following can aid in furthering the Government's objective of inclusive growth? (UPSC 2011)
1. Promoting Self-Help Groups
2. Promoting Micro, Small and Medium Enterprises
3. Implementing the Right to Education Act
Select the correct answer using the codes given below:
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: D
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Source: The Hindu
EARTHQUAKE
1. Context
A magnitude 5.3 earthquake on Richter Scale that originated 40 km below ground in the Eturnagaram forest area of Telangana was felt in central and northern India at 7.27 a.m.
2. What is an Earthquake?
An earthquake is an intense shaking of the ground caused by movement under the earth’s surface. It happens when two blocks of the earth suddenly slip past one another, according to USGS. This releases stored-up ‘elastic strain’ energy in the form of seismic waves, which spreads through the earth and cause the shaking of the ground.
3. How do exactly Earthquakes Occur?
- As we know, the earth’s outermost surface, crust, is fragmented into tectonic plates. The edges of the plates are called plate boundaries, which are made up of faults.
The tectonic plates constantly move at a slow pace, sliding past one another and bumping into each other. - As the edges of the plates are quite rough, they get stuck with one another while the rest of the plate keeps moving.
- Earthquake occurs when the plate has moved far enough and the edges unstick on one of the faults.
- The location below the earth’s surface where the earthquake starts is called the hypocenter, and the location directly above it on the surface of the earth is called the epicenter.”
4. Earthquake waves
The release of energy during an earthquake generates waves which are called Earthquake Waves. Earthquake waves are basically of two types body waves and surface waves.
Body waves: They are generated due to the release of energy at the focus and move in all directions traveling through the body of the earth. Hence, the name body waves. The body waves interact with the surface rocks and generate a new set of waves called surface waves.
Surface waves: These waves move along the surface. The velocity of waves changes as they travel through materials with different densities. The denser the material, the higher the velocity. Their direction also changes as they reflect or refract when coming across materials with different densities.
There are two types of body waves. They are called P and S-waves.
P-waves or ‘primary waves’ move faster and are the first to arrive at the surface. The P-waves are similar to sound waves. They travel through gaseous, liquid, and solid materials.
P-waves vibrate parallel to the direction of the wave. This exerts pressure on the material in the direction of propagation. As a result, it creates density differences in the material leading to stretching and squeezing of the material.
S-waves or secondary waves arrive at the surface with some time lag. They can travel only through solid materials. This characteristic of the S-waves is quite important. It has helped scientists to understand the structure of the interior of the earth.
The direction of vibrations of S-waves is Perpendicular to the wave direction in the vertical plane. Hence, they create troughs and crests in the material through which they pass. Surface waves are considered to be the most damaging waves.
5. Measuring of Earthquakes
- The earthquake events are scaled either according to the magnitude or intensity of the shock.
- The magnitude scale is known as the Richter scale. The magnitude indicates the energy released during the quake. It is expressed in absolute numbers 0-10.
- The intensity scale is named after Mercalli, an Italian seismologist. The intensity scale indicates the visible damage caused by the event. The range of intensity scale is from 1-12.
6. Turkey and Syria lie in a seismically active region
- The region where the earthquake struck lies along a well-known seismic fault line called the Anatolia tectonic block that runs through northern, central, and eastern Turkey.
- It is a seismically active zone-though not as active as, say, the Himalayan region which is one of the most dangerous regions in the world from the perspective of earthquakes.
- Large earthquakes, of magnitude 5 or higher, have not been very frequent in recent years. According to USGS, only three earthquakes of magnitude 6 or more have happened in the region since 1970. The last major quake in this area came in January 2020.
- The seismicity in this region is a result of interactions between the African, Eurasian, and Arabian plates. The Arabian plate is known to be pushing northward, which results in a slight westward movement for the Anatolian plate, where Turkey is located.
- The earthquake happened around the near-vertical fault line on the eastern Anatolian block, close to the Syrian border.
7. Shallow Earthquakes cause much greater damage
- Earthquakes in Turkey emerged from relatively shallow depths which made them devastating. The first earthquake, of magnitude 7.8, originated 17.9 km below the earth's surface.
- All the subsequent ones, including one of 7.5 magnitudes, emerged from even closer to the surface.
- Shallow earthquakes are generally more devastating because they carry greater energy when they emerge on the surface.
- Deeper earthquakes lose much of their energy by the time they come to the surface. The deeper quakes spread farther though- the seismic waves move conically upwards to the surface even as they lose energy while traveling greater distances and hence cause less damage.
8. Can earthquakes be predicted?
- An accurate prediction of an earthquake requires some sort of a precursory signal from within the earth that indicates a big quake is on the way.
- Moreover, the signal must occur only before large earthquakes so that it doesn’t indicate every small movement within the earth’s surface. Currently, there is no equipment to find such precursors, even if they exist.
- Theoretically, it is possible to offer a lead time of a few seconds between the time of the origin of the earthquake and the time it reaches the Earth’s surface.
- Seismic waves travel significantly slower than the speed of light between 5 and 13 km
per second. So if the earthquake is detected as soon as it is triggered, information about it can be related a few seconds ahead of it reaching the ground. - Such systems are already in use in some locations to issue alerts about earthquakes. However, these are not predictions. The alerts are issued post-event.
- Attempts to find reliable predictors of earthquakes have not been fruitful so far. Scientists have been able to map the areas that are earthquake-prone, and are likely to generate earthquakes in the future, but there is no way to predict when.
For Prelims & Mains
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For Prelims: Earthquake, Tectonic plates, Hypocenter, Epicenter, Body waves, Surface waves, P-waves or ‘primary waves’, S-waves or secondary waves, Richter scale, and Seismic waves.
For Mains: 1. What is an Earthquake? How do exactly Earthquakes Occur? Discuss the effects of Earthquakes.
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Source: The Indian Express
