COLLEGIUM
1. Context
2. Collegium System
- The Collegium system is not rooted in the Constitution. Instead, it has evolved through judgments of the Supreme Court.
- Under the system, the Chief Justice of India along with four senior-most Supreme Court judges recommend appointments and transfers of judges.
- A High Court Collegium, meanwhile, is led by the incumbent Chief Justice and the two senior-most judges of that court.
- In this system, the government’s role is limited to getting an inquiry conducted by the Intelligence Bureau (IB) if a lawyer is to be elevated as a judge in a High Court or the Supreme Court.
- The government can also raise objections and seek clarifications regarding the Collegium’s choices, but, if the Collegium reiterates the same names, the government is bound, under Constitution Bench judgments, to appoint them to the post.
3. Evolution of Collegium System
- In the First Judges case, the court held that the consultation with the CJI should be "full and effective".
- The Second Judges Case introduced the collegium system in 1993, as they ordered the CJI to consult a collegium of his two senior judges in the apex court on judicial appointments, such a "collective opinion" of the collegium would have primacy over the government.
- The Third Judges case in 1998, expanded the judicial collegium to its present composition of the CJI and four of its senior-most judges.
4. Constitutional Provisions for Appointment of Judges
5. Procedure for replacement of Collegium System
- Replacing the Collegium system calls for a Constitutional Amendment Bill.
- It requires a majority of not less than two-thirds of MPs (Members of Parliament) present and voting in Lok Sabha as well as Rajya Sabha.
- It also needs the ratification of legislatures of not less than one-half of the states.
6. What are the concerns associated with the Collegium system?
- Constitutional Status: The Collegium is not prescribed in the Constitution. Article 124 mentions consultation, which the SC interpreted as ‘concurrence’ in Second Judges Case (1993). During the hearing against the NJAC, the then SC Bar President had argued that the Constituent Assembly had considered a proposal for making Judges’ appointment ‘in concurrence’ with the CJI but had eventually rejected it.
- Transparency: There is no official procedure for selection or any written manual for the functioning of the Collegium. The parameters considered for selection (or rejection) are not available in the public domain.
- Accountability: The selection of Judges by the Judges is considered undemocratic. Judges are not accountable to the people or any other organ of the State (Legislature or Executive). It can add an element of arbitrariness in functioning.
- Criticism by Judges: Many retired Judges have criticized the working of the Collegium, especially the lack of transparency. Several controversial appointments have been made despite objections by the member-Judges of the Collegium.
- No Checks: There are no checks on the process. Nor has there been any review regarding the effectiveness of the process. Critics of the system argue the phenomena of ‘Uncle Judges’ wherein near relatives, kith, and kin of sitting Judges are appointed to the higher judiciary leading to nepotism. Law Commission in its 230th Report (2012) recommended that that the Judges, whose kith and kin are practicing in a High Court, should not be appointed in the same High Court. The absence of transparency, accountability, and external checks creates space for subjectivity and individual bias in appointments. In some cases, the principle of seniority has been ignored.
- No Reforms: The Supreme Court did not amend the contentious provisions of the NJAC Act or added safeguards to the Act. Instead, it struck down the whole Act. The Supreme Court reverted to the old Collegium System. However, the Court did not take any steps to address the concerns associated with the Collegium System.
7. What is National Judicial Appointments Commission (NJAC)
- The Constitution (99th Amendment) Act, which established the NJAC and the NJAC Act, was passed by Parliament in 2014 to set up a commission for appointing judges,
replacing the Collegium system. - This would essentially increase the government’s role in the appointment of judges.
- The laws were repealed in October 2015 after the Supreme Court struck them down.
7.1 Composition of NJAC
- The Chief Justice of India as the ex officio Chairperson.
- Two senior-most Supreme Court Judges as ex officio members.
- The Union Minister of Law and Justice as ex officio members.
- Two eminent persons from civil society (one of whom would be nominated by a committee consisting of the CJI, Prime Minster, and the Leader of Opposition in the Lok Sabha, and the other would be nominated from the SC/ST/OBC/minority communities or women.
For Prelims: Collegium system, National Judicial Appointments Commission (NJAC), Supreme court, High court, Intelligence Bureau (IB), First Judges case, Second Judges Case, Third Judges Case, Article 124(2), Article 217, Law Commission, and 99th Constitutional Amendment Act.
For Mains: 1. What are the two systems of the appointment of Judges that has triggered the fresh debate on the Judicial system in India? (250 Words).
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Previous year Question
1. With reference to the Indian judiciary, consider the following statements: (UPSC 2021)
1. Any retired judge of the Supreme Court of India can be called back to sit and act as a Supreme Court judge by the Chief Justice of India with the prior permission of the President of India.
2. A High Court in India has the power to review its own judgment as the Supreme Court does.
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: A
2. In India, Judicial Review implies (UPSC 2017)
A. the power of the Judiciary to pronounce upon the constitutionality of laws and executive orders
B. the power of the Judiciary to question the wisdom of the laws enacted by the Legislatures
C. the power of the Judiciary to review all the legislative enactments before they are assented to by the President
D. the power of the Judiciary to review its own judgments given earlier in similar or different cases
Answer: A
3. Consider the following statements:
1. The motion to impeach a Judge of the Supreme Court of India cannot be rejected by the Speaker of the Lok Sabha as per the Judges (Inquiry) Act, 1968.
2. The Constitution of India defines and gives details of what constitutes 'incapacity and proved misbehavior' of the Judges of the Supreme Court of India
3. The details of the process of impeachment of the Judges of the Supreme Court of India are given in the Judges (Inquiry) Act, of 1968.
4. If the motion for the impeachment of a Judge is taken up for voting, the law requires the motion to be backed by each House of the Parliament and supported by a majority of the total membership of that House and by not less than two-thirds of total members of that House present and voting.
Which of the statements given above is/are correct?
A. 1 and 2
B. 3 only
C. 3 and 4 only
D. 1, 3 and 4
Answer: C
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DEOXYRIBONUCLEIC ACID (DNA)
1. Context
Just like the government uses an Aadhaar number to uniquely identify an individual for social security purposes, a person’s DNA fingerprint can be used for biological purposes. This is why DNA analysis is such a big deal. Today, it is most often (but not exclusively) used together with technologies like PCR, capillary electrophoresis, and fingerprinting
2. Deoxyribonucleic Acid (DNA)
- Deoxyribonucleic acid (abbreviated DNA) is the molecule that carries genetic information for the development and functioning of an organism.
- DNA is made of two linked strands that wind around each other to resemble a twisted ladder a shape known as a double helix.
- Each strand has a backbone made of alternating sugar (deoxyribose) and phosphate groups.
- Attached to each sugar is one of four bases: adenine (A), cytosine (C), guanine (G), or thymine (T).
- The two strands are connected by chemical bonds between the bases: adenine bonds with thymine, and cytosine bonds with guanine.
- The sequence of the bases along DNA’s backbone encodes biological information, such as the instructions for making a protein or RNA molecule.

3. DNA Structure and Function
- DNA is the information molecule. It stores instructions for making other large molecules, called proteins.
- These instructions are stored inside each of your cells, distributed among 46 long structures called chromosomes.
- These chromosomes are made up of thousands of shorter segments of DNA, called genes. Each gene stores the directions for making protein fragments, whole proteins, or multiple specific proteins.
- DNA is well-suited to perform this biological function because of its molecular structure, and because of the development of a series of high-performance enzymes that are fine-tuned to interact with this molecular structure in specific ways.
- The match between DNA structure and the activities of these enzymes is so effective and well-refined that DNA has become, over evolutionary time, the universal information-storage molecule for all forms of life.
- Nature has yet to find a better solution than DNA for storing, expressing, and passing along instructions for making proteins.
3.1 Molecular structure of DNA
- In order to understand the biological function of DNA, you first need to understand its molecular structure.
- This requires learning the vocabulary for talking about the building blocks of DNA, and how these building blocks are assembled to make DNA molecules.
3.2 DNA Molecules are Polymers
- Polymers are large molecules that are built up by repeatedly linking together smaller molecules, called monomers.
- Think of how a freight train is built by linking lots of individual boxcars together, or how this sentence is built by sticking together a specific sequence of individual letters (plus spaces and punctuation).
- In all three cases, the large structure of a train, a sentence, and a DNA molecule is composed of smaller structures that are linked together in non-random sequences boxcars, letters, and, in the biological case, DNA monomers.
3.3 DNA Monomers are called Nucleotides
- Just like the sentence “polymer” is composed of the letter “monomers,” a DNA polymer is composed of monomers called nucleotides.
- A molecule of DNA is a bunch of nucleotide monomers, joined one after another into a very long chain.
4. Four Nucleotide Monomers
- The English language has a 26-letter alphabet. In contrast, the DNA “alphabet” has only four “letters,” the four nucleotide monomers.
- They have short and easy-to-remember names: A, C, T, G. Each nucleotide monomer is built from three simple molecular parts: a sugar, a phosphate group, and a nucleobase. (Don’t confuse this use of “base” with the other one, which refers to a molecule that raises the pH of a solution; they’re two different things.)
5. The sugar and acid in all four monomers are the same
- All four nucleotides (A, T, G, and C) are made by sticking a phosphate group and a nucleobase to a sugar.
- The sugar in all four nucleotides is called deoxyribose. It’s a cyclical molecule most of its atoms are arranged in a ring structure.
- The ring contains one oxygen and four carbons. A fifth carbon atom is attached to the fourth carbon of the ring.
- Deoxyribose also contains a hydroxyl group (-OH) attached to the third carbon in the ring.
6. Four Nucleotide Monomers are distinguished by their bases
- A nucleotide contains adenine
- A nucleotide contains thymine
- G nucleotide contains guanine
- C nucleotide contains cytosine
7. DNA Fingerprinting
- It is known that every individual has unique fingerprints. These occur at the tips of the fingers and have been used for identification for a long time but these can be altered by surgery.
- A sequence of bases on DNA is also unique for a person and information regarding this is called DNA fingerprinting. It is the same for every cell and cannot be altered by any known treatment.
- DNA fingerprinting is now used (i) in forensic laboratories for the identification of criminals. (ii) to determine the paternity of an individual. (iii) to identify the dead bodies in any accident by comparing the DNAs of parents or children. (iv) to identify racial groups to rewrite biological evolution.
8. Recombinant DNA
- Recombinant DNA (rDNA) molecules are DNA molecules formed by laboratory methods of genetic recombination (such as molecular cloning) to bring together genetic material from multiple sources, creating sequences that would not otherwise be found in the genome.
- Recombinant DNA is possible because DNA molecules from all organisms share the same chemical structure. They differ only in the nucleotide sequence within that identical overall structure.
- In most cases, organisms containing recombinant DNA have apparently normal phenotypes. That is, their appearance, behavior, and metabolism are usually unchanged.
For Prelims: Deoxyribonucleic acid (DNA), adenine (A), cytosine (C), guanine (G), or thymine (T), RNA molecule, Polymers, Nucleotide, Nucleotide Monomers, DNA Fingerprinting and Recombinant DNA (rDNA).
For Mains: 1. What is Deoxyribonucleic acid (DNA)? Discuss the structure and function of the Deoxyribonucleic acid (DNA) and explain how it is different from RNA.(250 Words)
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1. Recombinant DNA technology (Genetic Engineering) allows genes to be transferred (UPSC 2013)
1. across different species of plants
2. from animals to plants
3. from microorganisms to higher organisms
Select the correct answer using the codes given below.
A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: D
2. With reference to the recent developments in science, which one of the following statements is not correct? (UPSC 2019)
A. Functional chromosomes can be created by joining segments of DNA taken from cells of different species.
B. Pieces of artificial functional DNA can be created in laboratories.
C. A piece of DNA taken out from an animal cell can be made to replicate outside a living cell in a laboratory.
D. Cells taken out from plants and animals can be made to undergo cell division in laboratory Petri dishes.
Answer: A
3. Consider the following statements: (UPSC 2022)
DNA Barcoding can be a tool to:
1. assess the age of a plant or animal.
2. distinguish among species that look alike.
3. identify undesirable animal or plant materials in processed foods.
Which of the statements given above is/are correct?
A. 1 only
B. 3 only
C. 1 and 2
D. 2 and 3
Answer: D
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SMALL INDUSTRIES
Classification of Industries |
Classification/ Industry type | Micro | Small | Medium |
Investment | Not more than Rs.1 crore | Not more than Rs.10 crore | Not more than Rs.50 crore |
Annual Turnover | Not more than Rs. 5 crore | Not more than Rs. 50 crore | Not more than Rs. 250 crore |
- Expansion of Entrepreneurial Activities: The innovative approaches adopted by small industries have contributed to the growth of entrepreneurial ventures. This expansion has brought more economic sectors into the fold, offering a broader range of goods and services that cater to both domestic and international markets.
- Industrialization of Rural and Underdeveloped Areas: Small industries have helped reduce regional disparities, promoting a more equitable distribution of wealth and income throughout the nation.
- Employment Creation: Small industries are crucial to India's economic development, as they generate significant employment opportunities at a much lower capital investment compared to large-scale industries
Village Small Industries (VSI)
The term "Village and Small Industry (VSI)" is commonly used to refer to unorganized traditional sectors and small-scale industries. The VSI sector is composed of seven sub-sectors: handicrafts, handlooms, Khadi and Village Industries, coir, sericulture, power looms, and small-scale industries
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- Prime Minister’s Employment Generation Programme (PMEGP): The aim of this program is to create employment opportunities by establishing new micro-enterprises, projects, and self-employment initiatives across rural and urban areas of the country. The Khadi and Village Industries Commission (KVIC) serves as the national nodal agency responsible for implementing the scheme, while its execution at the state level is managed by State KVIC offices, State Khadi and Village Industries Boards (KVIB), District Industries Centres (DIC), Coir Board (for coir-related activities), and Banks.
- Collateral-Free Credit Provision for MSMEs: Banks and other financial institutions, including NBFCs, are mandated to provide collateral-free credit to Micro and Small Enterprises. The scheme ensures that up to ₹5 crore (effective from April 1, 2023) per borrowing unit is covered for collateral-free credit facilities (term loans and/or working capital) extended to micro and small enterprises by eligible lending institutions.
- A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship (ASPIRE): The ASPIRE program has been approved for continuation from 2021-2022 to 2025-2026 with a budget allocation of ₹194.87 crore. Updated guidelines issued on January 28, 2022, focus on the following objectives:
- Reducing unemployment and generating jobs,
- Promoting an entrepreneurial culture in India,
- Encouraging innovation to enhance the competitiveness of the MSME sector.
- Entrepreneurship and Skill Development Programmes (ESDP): This program is designed to inspire youth from diverse social backgrounds, including women, SC/ST communities, disabled individuals, ex-servicemen, and those below the poverty line, to consider careers in self-employment or entrepreneurship.
- Scheme of Fund for Regeneration of Traditional Industries (SFURTI): The scheme aims to create competitive, sustainable employment opportunities for traditional industries and artisans by organizing them into clusters. It also seeks to enhance the marketability of products produced by these clusters, upgrade the skills of traditional artisans, provide better tools and equipment, strengthen cluster governance with active stakeholder participation, and foster innovative products, advanced technologies, processes, market intelligence, and new models of public-private partnerships.
- MSME Champions Scheme: This program, set to run from 2021-2022 to 2025-2026, is divided into three components:
- MSME-Sustainable (ZED) Certification Scheme
- MSME-Competitive (Lean) Scheme
- MSME-Innovative (for Incubation, IPR, and Design) Scheme
- Greening MSME: SIDBI has introduced the "Greening MSME" initiative, which offers financial assistance up to a maximum of ₹20 crore to MSMEs for adopting energy-efficient and environmentally sustainable technologies
- Access to Finance: Access to funding is a major challenge for Indian MSMEs, with the total financing gap expected to reach $400 billion. While closing this gap will take time, targeted green finance initiatives in areas like waste management, electric vehicles, energy efficiency, and renewables can support MSME growth in these sectors.
- Interest Rates: The Central Government should lower interest rates and make consumer finance, housing loans, and vehicle loans more accessible to stimulate market demand.
- Climate Commitments and Transitioning to Low-Carbon: Small enterprises are limited to adhering to environmental regulations, while global supply chains increasingly shift to greener processes and products. There is currently no strategic plan to help MSMEs manage the risks associated with this transition.
- Unorganized Nature: Due to its fragmented structure and the predominance of micro-sized businesses, the MSME sector is one of the most vulnerable in the Indian economy. The COVID-19 pandemic has highlighted this vulnerability, with millions of MSMEs facing closure due to decreased demand caused by lockdowns.
- Green Transition of MSMEs: MSMEs are more exposed to policy and demand uncertainties, often with greater downside risks. Even if they recognize the benefits of going green, most lack the financial and technical capacity to invest in new initiatives. However, certain government programs can help address these barriers.
- Incentives and Penalties: Encouraging Small and Medium Enterprises (SMEs) to exceed mere compliance can be achieved by taxing negative externalities and offering subsidies or tax breaks for green investments. Updating environmental legislation should also consider the risks posed by different industries, and these policies should be assessed for their impact on MSMEs before widespread implementation
MSMEs should embrace best practices like implementing low-energy strategies, adopting renewable energy sources, improving waste management, ensuring women's safety, and making timely wage payments.
Governments, business associations, civil society organizations, and other stakeholders can play a proactive role in promoting awareness, sharing best practices, and providing training and resources. Financial incentives, such as tax breaks, subsidies, grants, and low-interest loans, can be offered by governments and investors to encourage MSMEs to adopt sustainable practices or invest in sustainable technologies.
Larger companies can support MSMEs in adopting sustainable practices by offering training, technical support, and financial assistance
For Prelims: Current events of national and international importance For Mains: GS III - Indian Economy |
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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RENEWABLE ENERGY
1. Context
2. Why use Renewable energy
- Today we primarily use fossil fuels to heat and power our homes and fuel our cars.
- It’s convenient to use coal, oil, and natural gas for meeting our energy needs, but we have a limited supply of these fuels on Earth.
- We’re using them much more rapidly than they are being created. Eventually, they will run out.
- And because of safety concerns and waste disposal problems, the United States will retire much of its nuclear capacity by 2020.
- In the meantime, the nation’s energy needs are expected to grow by 33 per cent during the next 20 years.
- Renewable energy can help fill the gap
- Even if we had an unlimited supply of fossil fuels, using renewable energy is better for the environment.
- We often call renewable energy technologies “clean” or “green” because they produce few if any pollutants.
- Burning fossil fuels, however, sends greenhouse gases into the atmosphere, trapping the sun’s heat and contributing to global warming.
- Climate scientists generally agree that the Earth’s average temperature has risen in the past century.
- If this trend continues, sea levels will rise, and scientists predict that floods, heat waves, droughts, and other extreme weather conditions could occur more often.
- Other pollutants are released into the air, soil, and water when fossil fuels are burned.
- These pollutants take a dramatic toll on the environment—and humans.
- Air pollution contributes to diseases like asthma.
- Acid rain from sulfur dioxide and nitrogen oxides harms plants and fish. Nitrogen oxides also contribute to smog.
- Renewable energy will also help us develop energy independence and security.
- Replacing some of our petroleum with fuels made from plant matter, for example, could save money and strengthen our energy security.
- Renewable energy is plentiful, and the technologies are improving all the time.
- There are many ways to use renewable energy.
- Most of us already use renewable energy in our daily lives.
2.1.Hydropower
- Hydropower is our most mature and largest source of renewable power, producing about 10 per cent of the nation’s electricity.
- Existing hydropower capacity is about 77,000 megawatts (MW). Hydropower plants convert the energy in flowing water into electricity.
- The most common form of hydropower uses a dam on a river to retain a large reservoir of water. Water is released through turbines to generate power.
- “Run of the river” systems, however, divert water from the river and direct it through a pipeline to a turbine.
- Hydropower plants produce no air emissions but can affect water quality and wildlife habitats.
2.2.Bioenergy
- Bioenergy is the energy derived from biomass (organic matter), such as plants. If you’ve ever burned wood in a fireplace or campfire, you’ve used bioenergy.
- But we don’t get all of our biomass resources directly from trees or other plants.
- Many industries, such as those involved in construction or the processing of agricultural products, can create large quantities of unused or residual biomass, which can serve as a bioenergy source.
2.3.Geothermal Energy
- The Earth’s core, 4,000 miles below the surface, can reach temperatures of 9000° F.
- This heat—geothermal energy—flows outward from the core, heating the surrounding area, which can form underground reservoirs of hot water and steam.
- These reservoirs can be tapped for a variety of uses, such as to generate electricity or heat buildings.
- By using geothermal heat pumps (GHPs), we can even take advantage of the shallow ground’s stable temperature for heating and cooling buildings.
2.4.Solar Energy
- Solar technologies tap directly into the infinite power of the sun and use that energy to produce heat, light, and power.
2.5. Wind Energy
- For hundreds of years, people have used windmills to harness the wind’s energy.
- Today’s wind turbines, which operate differently from windmills, are a much more efficient technology.
- Wind turbine technology may look simple: the wind spins turbine blades around a central hub; the hub is connected to a shaft, which powers a generator to make electricity.
- However, turbines are highly sophisticated power systems that capture the wind’s energy using new blade designs or airfoils.
- Modern, mechanical drive systems, combined with advanced generators, convert that energy into electricity.
- Wind turbines that provide electricity to the utility grid range in size from 50 kW to 6
- Wind energy has been the fastest growing source of energy since 1990.
2.6.Ocean Energy
- The ocean can produce two types of energy: thermal energy from the sun’s heat, and mechanical energy from the tides and waves.
- Ocean thermal energy can be used for many applications, including electricity generation.
- Electricity conversion systems use either the warm surface water or boil the seawater to turn a turbine, which activates a generator.
- The electricity conversion of both tidal and wave energy usually involves mechanical devices.
- A dam is typically used to convert tidal energy into electricity by forcing the water through turbines and activating a generator.
- Meanwhile, wave energy uses mechanical power to directly activate a generator or to transfer to a working fluid, water, or air, which then drives a turbine/generator.
2.7.Hydrogen
- Hydrogen is high in energy, yet its use as a fuel produces water as the only emission.
- Hydrogen is the universe’s most abundant element and also its simplest.
- A hydrogen atom consists of only one proton and one electron.
- Despite its abundance and simplicity, it doesn’t occur naturally as a gas on the Earth.
- Today, industry produces more than 4 trillion cubic feet of hydrogen annually.
- Most of this hydrogen is produced through a process called reforming, which involves the application of heat to separate hydrogen from carbon. Researchers are developing highly efficient, advanced reformers to produce hydrogen from natural gas for what’s called Proton Exchange Membrane fuel cells.
3. Steps were taken by the government to promote Renewable energy
The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020.
3.1.Distribution of prominent renewable energy Hubs
- Rajasthan
- Gujarat
- Andhra Pradesh
- Karnataka
- Telangana
- Tamil Nadu

3.2.Steps taken
- Permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route,
- Waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
- Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
- Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug-and-play basis,
- Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc,
- Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power,
- Setting up of Project Development Cell for attracting and facilitating investments,
- Standard Bidding Guidelines for tariff-based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
- Deployment of large-scale renewable energy (RE) has the potential to create numerous employment opportunities in rural India in the coming decades. By 2030, it is projected that the clean-energy sectors could provide jobs for around one million individuals in the country.
- However, the expansion of RE may have significant impacts on communities reliant on the land, involving changes in land use, modifications to ecosystems, shifts in livelihoods, and overall effects on land productivity.
- As India progresses in scaling up RE, striking a balance between these interests may result in project commissioning delays, contributing to a waning interest among developers in RE tenders.
- In 2020, wind developers, facing setbacks such as delays in land allocation, sought to terminate power-purchase agreements for approximately 565 MW wind capacity signed with the Solar Energy Corporation of India (SECI), prompting a decline in developers' enthusiasm for RE projects. Commissioning delays not only pose substantial financial risks but also jeopardize the reputation of RE developers.
- In the pursuit of responsible RE deployment and the enhancement of communities in and around project sites, many developers actively support local development activities and community-led programs through corporate social responsibility (CSR) initiatives.
- As an illustration, Tata Power Solar has established integrated vocational training programs for women and youth in multiple project sites.
- Given the pivotal role of project developers in interacting with communities during land acquisition, construction, and operational phases, they play a crucial role in driving responsible practices. Additionally, regulators and investors prioritize assessing the responsible practices of new projects.
- To encourage all developers to contribute to the rapidly growing RE ecosystem and promote responsible practices, two essential prerequisites need to be addressed
INDIA'S TRADE WITH CHINA
1. Context
2. Key takeaways
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As per the IBEF website, trade between India and China in FY24 reached $118.40 billion, reflecting a 4% increase from $113.83 billion in FY23.
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According to data from the Global Trade Research Initiative (GTRI), China reclaimed its position as India's largest trading partner in FY24, surpassing the United States after a gap of two years. During this period, China accounted for 15% of India’s total imports. Out of India’s total imports worth $675.42 billion, imports from China amounted to $101.74 billion.
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In FY24, China contributed 15.06% to India’s total imports. India’s global imports stood at $675.42 billion, with Chinese imports comprising $101.74 billion.
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There is a prevailing opinion in India that engaging in a structured dialogue with China to normalize trade relations could send a strategic signal to the United States and serve as a balancing measure. Discussions are ongoing regarding the possibility of easing some trade and investment restrictions imposed after the 2020 Galwan conflict.
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Despite high trade volumes, China ranks only 22nd in terms of Foreign Direct Investment (FDI) equity inflows into India, with cumulative investments of $2.5 billion from April 2000 to September 2024. While bilateral trade has expanded significantly, investment growth has lagged. Reports suggest that China is keen to increase investments, and India may show some flexibility in this regard.
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While trade between the two nations has surged since 2020, India faces its largest trade deficit with China. The trade imbalance has been widening annually, surpassing $83 billion in 2023. This deficit is primarily due to India's limited export basket—dominated by primary commodities—and the lack of market access for various Indian goods, including agricultural products, pharmaceuticals, and IT/ITeS, where India has a competitive edge.
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The Economic Survey 2023-24 recommended that India encourage investments from China while limiting imports of finished goods that offer minimal scope for domestic value addition.
3. India's trade with China
- Till 20 years ago, China figured at the 10th position (2001-12) or lower (12th in 2000-01; 16th in 1999-00; 18th in 1998-99).
- However, from 2002-03, it started an upward march and became India's top trading partner in 2011-12.
- In the next year, the UAE dislodged it to second place.
- However, China bounced back and again became India's top trading partner in 2013-14 and remained there till 2017-18.
- For the next two years (2018-19 and 2019-20), the US was at the top but in 2020-21, China again became India's number trading partner.
- While China and the US have both been India's top trading partners in recent years, there is a big difference between the trade with the world's two largest economies.
- While with the US, India had a trade surplus of $ 32.85 billion during 2021-22, with China, it had a trade deficit of $ 73.31 billion, the highest for any country.
- India's trade deficit with China during 2021-2022 was double the previous year's level ($44.02 billion) and it was an all-time high.
Apart from the US and China, the other eight countries and regions among India's top-10 trading partners during 2021-22 were UAE, Saudi Arabia, Iraq, Singapore, Hong Kong, Indonesia, South Korea and Australia. |
4. India's trade deficit
- India's trade deficit with China has increased from $1 billion to $73 billion in the past 21 years.
- Data show that imports from China have skyrocketed since the beginning of this century from $ billion in 2001-02 to $ 94.57 billion in 2021-20.
- However, during this period, India's exports to China have increased at a snail's pace from about $ 1 billion to $21 billion.
- Due to this surge in imports, India's trade deficit with China increased from about $1 billion in 2001-02 to $ 73 billion.
- It is expected to rise further this year.
- During the first seven months (April-October) of the current financial year (2022-23), India's trade deficit with China stood at $ 51 billion, which was 39 per cent higher than the figure ($37 billion) recorded in the corresponding period of the last fiscal.
- China alone accounted for over one-third of India's total trade deficit ($ 191 billion) during 2021-22.
- The rising gap between imports and exports from China is evident from the fact that two decades ago, India's imports accounted for about 60 per cent of the total bilateral trade between the two countries, but now it is over 80 per cent.
5. India's Imports
- An analysis of the trade data shows that the recent spike in trade with China is due to an unprecedented surge in imports from the neighbouring country in recent years.
- The monthly figure for imports from China, which hit a low of $ 3.32 billion in June 2020 during the Covid lockdown, started rising soon after the easing of restrictions and rose to $ 5.58 billion in the following month (July 2020).
- Since then, it continued rising and scaled a new peak of $ 10.24 billion in July this year.
- The figure for average monthly imports from China has increased from $ 5.43 billion in 2020-21 to $ 7.88 billion in 2021-22.
- In the first seven months (April-October) of the financial year 2022-23, the figure reached $ 8.61 billion.
- In the pre-Covid times, the average monthly import figure stood at $ 5.43 billion during 2019-20.
- For the first time since June 2020, there has been a slight dip in imports from China in October 2022, with the figure coming down to $ 7.85 billion from $ 8.69 billion a year ago.
5.1. Commodities that India imports from China
- During 2021-22, 15.42 per cent ($94.57 billion) of India's total imports ($613.05 billion) came from China.
- Electrical machinery and equipment and parts thereof;
- Sound recorders and reproducers, television image and sound recorders and reproducers and parts
- Nuclear reactors, boilers, machinery and mechanical appliances and parts thereof
- Organic chemicals
- Plastic and plastic articles and
- Fertilisers.
- A look at the item-wise list of imports shows that the most-valued Chinese item in the Indian import basket was the personal computer (laptop, palmtop etc), which accounted for $5.34 billion in 2021-22.
- It was followed by "Monolithic integrated circuits digital ($4 billion), lithium-ion ($1.1 billion), solar cells ($ 3 billion) and urea ($1.4 billion).
- As far as the US is concerned, India imported petroleum crude, coking coal, LNG, diamonds, almonds, turbo-jets, etc.
6. India's exports to China
- Ores, slag and ash ($ 2. 5 billion);
- Organic chemicals ($ 2.38 billion), mineral fuels, mineral oils and products of their distillation, bituminous substances, mineral waxes ($1.87 billion)
- Iron and steel ($1.4 billion)
- Aluminium and articles of thereof ($1.2 billion) and
- cotton ($1.25 billion).
- Among single items, light Naphtha ($ 1.37 billion) was India's most valued export item to China during 2021-22.
As far as the United States is concerned, diamonds, gold jewellery set with diamonds vannamei shrimp and turbo-jets were among the top items imported from India. |
For Prelims & Mains
For Prelims: India-China trade, Galwan, US
For Mains:
1. What are the reasons for the trading spike between India and China even though both countries have longstanding border disputes? (250 Words)
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WAQF ACT
- In Islamic law, a waqf refers to property dedicated to God for religious or charitable purposes. This can include any type of property, either movable or immovable, that is set aside for the benefit of the public, serving as an act of piety that enables Muslims to continue their charitable contributions even after death.
- A waqf can be created through a formal document, or property may be recognized as waqf if it has been consistently used for religious or charitable purposes over time. The income generated from such properties is usually directed towards the upkeep of mosques, funding educational institutions, or aiding the needy.
- Once a property is designated as waqf, it cannot be inherited, sold, or given away. Non-Muslims are also permitted to establish a waqf, provided the purpose aligns with Islamic values.
- In India, waqfs are governed by the 1995 Act. The identification and delineation of waqf properties are carried out by a survey conducted by the State government.
- A survey commissioner, appointed under this Act, identifies these properties through local inquiries, witness statements, and examination of public records. Once identified, the properties are listed in the State’s official gazette, and a record is maintained by the State Waqf Board.
- Each waqf is managed by a mutawalli (caretaker) responsible for its administration. While waqfs are similar to trusts under the Indian Trusts Act of 1882, unlike trusts, waqfs cannot be dissolved by a Board
- The 1995 Act creates Waqf Boards in each State, responsible for overseeing the management of waqf properties within their respective areas. These Boards are legally recognized entities, enabling them to initiate or face legal action.
- Each State Waqf Board is led by a chairperson and includes one or two representatives from the State government, Muslim legislators, acknowledged Islamic scholars, and mutawallis (caretakers) of the waqfs.
- The Act also requires the appointment of a full-time Chief Executive Officer for each Board, who must be a practicing Muslim and hold a rank equivalent to at least a Deputy Secretary in the State government.
- The Waqf Board is empowered to manage waqf properties and undertake actions to reclaim lost assets. It also has the authority to approve the transfer of immovable waqf properties through sale, gift, mortgage, exchange, or lease, but such transactions require the consent of at least two-thirds of the Board members.
- The 2013 amendments to the 1995 Act further enhanced the Board's powers, making it almost impossible to sell waqf properties, as neither the mutawalli nor the Board is permitted to sell such property.
- In addition to the State Waqf Boards, the legislation also establishes the Central Waqf Council, a national advisory body under the Ministry of Minority Affairs.
- This Council ensures consistent administration of waqf properties across the country and is chaired by the Union Minister of Minority Affairs.
- The Council also advises the Union government on waqf-related matters, including policy formulation, implementation of waqf laws, and the resolution of inter-state disputes
- The definition of ‘waqf’ has been revised under the new Bill. Now, only lawful property owners who have practiced Islam for at least five years are permitted to establish waqf properties through formal deeds.
- This change eliminates the concept of ‘waqf by use,’ which allowed a property to be considered waqf based on its usage, even if the original deed was contested. Historically, waqf properties were often designated orally until formal documentation became more common.
- To prevent fraudulent claims of waqf status, the Bill stipulates that any government property identified or declared as waqf, either before or after the enactment of this Act, will not be recognized as waqf property. The law also allows widows, divorced women, and orphans to benefit from waqf proceeds.
- The responsibility for surveying waqf properties, previously handled by survey commissioners under the 1995 Act, will now be transferred to district collectors or officers of equivalent rank under the new Bill.
- To enhance the accuracy of waqf property records, the Bill proposes the establishment of a centralized registration system. All information regarding waqf properties must be uploaded to this portal within six months of the law’s enactment, and any new waqf property registrations must be submitted through this portal to the Waqf Boards.
- Additionally, the Bill removes section 40, which previously allowed waqf tribunals to determine whether a property qualifies as waqf. Instead, the district collector is now designated as the final authority on such matters.
- Once a decision is made, the collector must update the revenue records and report to the State government. Importantly, the Bill states that the disputed property cannot be treated as waqf property until the collector submits a final report, meaning the Waqf Board cannot take control of the land until the government resolves the issue.
- One of the most debated provisions in the Bill is the proposal to include non-Muslims in key waqf institutions, such as the Central Waqf Council, State Waqf Boards, and waqf tribunals.
- The Bill authorizes the Centre to appoint three Members of Parliament (two from the Lok Sabha and one from the Rajya Sabha) to the Central Waqf Council without requiring them to be Muslims. Previously, under the 1995 Act, these MPs had to be from the Muslim community.
- The new Bill also mandates that State Waqf Boards must include two non-Muslims and two women as members. The composition of waqf tribunals has been altered from a three-member body to a two-member body, consisting of a district judge and an officer of joint secretary rank to the State government.
- The proposed law requires tribunals to resolve disputes within six months, with a possible six-month extension.
- Furthermore, the Bill gives the Centre the authority to “direct the audit of any waqf at any time by an auditor appointed by the Comptroller and Auditor-General of India, or by any officer designated by the Central Government for that purpose.”
- The Waqf Boards are required to audit their accounts annually, selecting auditors from a panel formed by the State governments. Mutawallis who fail to maintain proper accounts will face penalties.
- The proposed law also allows courts to intervene in waqf disputes by removing the finality of waqf tribunal decisions, enabling aggrieved parties to appeal directly to the relevant High Court. This measure aims to increase judicial oversight and reduce instances of arbitrary power exercised by Waqf Boards or tribunals
For Prelims: Waqf board, Amendment process in Parliament
For Mains: GS II - Indian Governance
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