MINIMUM SUPPORT PRICE
1. Context
In order to increase domestic production of pulses, encourage farmers and reduce dependence on imports, the government has approved procurement of tur, urad (black gram), and lentil under Price Support Scheme at 100% of State production for the procurement year 2024-25
2. What is Minimum Support Price (MSP)?
- MSP is the minimum price a farmer must be paid for their food grains as guaranteed by the government. They are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs.
- The CACP submits its recommendations to the government in the form of Price Policy Reports every year.
- After considering the report and views of the state governments and also keeping in view the overall demand and supply situation in the country, the central government takes the final decision.
- Food Corporation of India (FCI) is the nodal agency for procurement along with State agencies, at the beginning of the sowing season.
The minimum support price (MSP) is set for 23 crops every year. They include:
- 7 cereals (paddy, wheat, maize, bajra, jowar, ragi, and barley)
- 5 pulses (chana, tur/arhar, moong, urad, and Masur)
- 7 oilseeds (rapeseed-mustard, groundnut, soya bean, sunflower, sesamum, safflower, and nigerseed) and
- 4 commercial crops (sugarcane, cotton, copra, and raw jute).
3. How MSP is Cauclated?
- MSP, presently, is based on a formula of 1.5 times the production costs.
- The CACP projects three kinds of production costs for every crop, both at state and all-India average levels.
- A2 covers all paid-out costs directly incurred by the farmer — in cash and kind — on seeds, fertilizers, pesticides, hired labor, leased-in land, fuel, irrigation, etc.
- A2+FL includes A2 plus an imputed value of unpaid family labor.
- C2: Estimated land rent and the cost of interest on the money taken for farming are added to A2 and FL.
- Farm unions are demanding that a comprehensive cost calculation (C2) must also include capital assets and the rentals and interest forgone on owned land, as recommended by the National Commission for Farmers.
4. The issue with the calculation of MSP
- To calculate MSP, the government uses A2+FL cost. The criticism of A2+FL is that it doesn’t cover all costs and that a more representative measure, C2, needs to be used.
- For example, in the 2017-18 rabi season, CACP data shows that C2 for wheat was 54% higher than A2+FL.
- The Swaminathan Commission also stated that the MSP should be based on the comprehensive cost of production, which is the C2 method.
5. Key Points about the Farmer's Demand
- After the recent decision to repeal three contentious farm laws, protesting farmer unions are now pressing for their demand of the legalization of the Minimum Support Price (MSP).
- They want a legal guarantee for the MSP, which at present is just an indicative or a desired price.
- Legalising MSP would put the government under a legal obligation to buy every grain of the crops for which MSPs have been announced.
- At present, the PM has announced the formation of a committee to make MSP more transparent, as well as to change crop patterns and to promote zero-budget agriculture which would reduce the cost of production.
- The entire issue of enforcing MSP legally is a tricky, complicated, and multidimensional one, involving lots of factors.
- Core demand: MSP based on a C2+50% formula should be made a legal entitlement for all agricultural produce. This would mean a 34% increase in the latest MSP for paddy and a 13% increase for wheat. MSP should also be extended to fruit and vegetable farmers who have been excluded from benefits so far.
6. The rationale behind the demand for legislation of MSP
- Farmers receive less than MSP: In most crops grown across much of India, the prices received by farmers, especially during harvest time, are well below the officially-declared MSPs. And since MSPs have no statutory backing, they cannot demand these as a matter of right.
- Limited procurement by the Govt: Also, the actual procurement at MSP by the Govt. is confined to only about a third of wheat and rice crops (of which half is bought in Punjab and Haryana alone), and 10%-20% of select pulses and oilseeds. According to the Shanta Kumar Committee’s 2015 report, only 6% of the farm households sell wheat and rice to the government at the MSP rates.
7. Why has the committee been set up?
- It has been constituted by the Ministry of Agriculture and Farmers Welfare as a follow-up to an announcement by the Prime Minister when he declared the government’s intention to withdraw the three farm laws.
- The protesting farm unions had demanded a legal guarantee on MSP based on the Swaminathan Commission’s ‘C2+50% formula’ (C2 is a type of cost incurred by farmers;). This was in addition to their demand for repeal of the three farm laws.
8. Committee on MSP, Natural Farming and Crop Diversification
On Minimum Support Price (MSP)
- To suggest measures to make MSP available to farmers by making the systems more effective and transparent,
- Give more autonomy to Commission for Agricultural Costs and Prices (CACP).
On Natural Farming: To make suggestions for programs and schemes for value chain development, protocol validation, and research for future needs and support for area expansion under the Indian Natural Farming System.
On Crop diversification:
To provide suggestions related to crop diversification including
- Mapping of existing cropping patterns of agro-ecological zones of producer and consumer states,
- Strategy for diversification policy to change the cropping pattern according to the changing needs of the country and
- A system to ensure remunerative prices for the sale of new crops.
9. Why have the protesting farm unions opposed this committee?
- Firstly, this committee includes members who supported the now-repeated farm laws.
- Secondly, the terms and references of the committee do not mention the legal guarantee to MSP. Instead, it mentions making MSP more effective and transparent.
10. Challenges associated with MSP
- Protest by Farmers: Farm unions have been protesting for more than six months on Delhi's outskirts, demanding legislation to guarantee MSP for all farmers for all crops and a repeal of three contentious farm reforms laws.
- MSP and Inflation: When announcing the MSP, inflation should be taken into account. But often the price is not increased up to the mark. For example, this time MSP for Maize has not even considered inflation then how it will benefit farmers! Also, frequent increases in the MSPs can lead to inflation too.
- High Input Costs: The input costs have been rising faster than sale prices, squeezing the meager income of the small farmers and driving them into debt.
- Lack of Mechanism: There is no mechanism that guarantees that every farmer can get at least the MSP as the floor price in the market. So proper mechanisms need to be fixed for all times to come.
- Restriction in Europe: Even after producing surplus grains, every year a huge portion of these grains gets rotten. This is due to the restrictions under WTO norms, that grain stocks with the FCI (being heavily subsidized due to MSP) cannot be exported.
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For Prelims: Minimum Support Price (MSP), World Trade Organisation (WTO), Commission for Agricultural Costs and Prices (CACP), Cabinet Committee on Economic Affairs, Food Corporation of India (FCI).
For Mains: 1. The Minimum Support Price (MSP) scheme protects farmers from price fluctuations and market imperfections. In light of the given statement, critically analyze the efficacy of the MSP. (250 Words)
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| Previous year Question
1. Consider the following statements: (UPSC CSE 2020)
1. In the case of all cereals, pulses, and oil seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: D
2.Which of the following factors/policies were affecting the price of rice in India in the recent past? (UPSC CSE, 2020)
(1) Minimum Support Price (2) Government’s trading (3) Government’s stockpiling (4) Consumer subsidies Select the correct answer using the code given below: (a) 1, 2 and 4 only (b) 1, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4 Answer (d)
3.In India, which of the following can be considered as public investment in agriculture? (UPSC GS1, 2020)
(1) Fixing Minimum Support Price for agricultural produce of all crops (2) Computerization of Primary Agricultural Credit Societies (3) Social Capital development (4) Free electricity supply to farmers (5) Waiver of agricultural loans by the banking system (6) Setting up of cold storage facilities by the governments. In India, which of the following can be considered as public investment in agriculture? Select the correct answer using the code given below: (a) 1, 2 and 5 only (b) 1, 3, 4 and 5 only (c) 2, 3 and 6 only (d) 1, 2, 3, 4, 5 and 6 Answer (c)
4.The Fair and Remunerative Price (FRP) of sugarcane is approved by the (UPSC CSE, 2015)
(a) Cabinet Committee on Economic Affairs (b) Commission for Agricultural Costs and Prices (c) Directorate of Marketing and Inspection, Ministry of Agriculture (d) Agricultural Produce Market Committee Answer (a)
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Source: The Indian Express
THREE LANGUAGE POLICY
1. Context
Evidence-based policymaking relies on data, research, and statistical analysis — not ideology, untested assumptions or political convenience. It ensures that policies address real needs, maximise effectiveness, and avoid unnecessary burdens. By this standard, the National Education Policy (NEP) 2020’s push for a third language in schools fails to meet the mark.
2. What is a three language policy?
- The NEP 2020 continues with the three-language formula, originally introduced in the 1968 NEP. However, a key distinction is that while the earlier policy mandated Hindi as a compulsory language nationwide, NEP 2020 adopts a more flexible approach.
- Under the 1968 policy, Hindi-speaking states were required to teach Hindi, English, and a modern Indian language—preferably one from southern India—whereas non-Hindi-speaking states had to include their regional language, Hindi, and English in their curriculum.
- In contrast, the NEP 2020 does not impose any particular language on states. Instead, it allows states, regions, and students to choose their three languages, provided that at least two of them are Indian languages.
- This implies that while students must learn their state’s language, the additional Indian language does not have to be Hindi. The policy also highlights the importance of bilingual education, particularly in the home language or mother tongue alongside English.
- Additionally, Sanskrit is given notable emphasis as an optional choice within the three-language framework
3.Significance of the Three-Language Formula
The Three-Language Formula is an educational policy in India designed to promote multilingualism and linguistic harmony in a country with immense linguistic diversity. It was first proposed by the Kothari Commission in 1968 and has since been adopted by many states, with variations based on regional needs. The formula aims to balance the learning of regional, national, and international languages to foster unity, cultural preservation, and global competitiveness.
Key Objectives of the Three-Language Formula:
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Promote National Integration:
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By encouraging the study of Hindi (the official language of the Union) and English (an associate official language), the formula seeks to bridge communication gaps between states and promote national unity.
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It also respects regional languages, ensuring that local cultures and identities are preserved.
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Preserve Linguistic Diversity:
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India is home to hundreds of languages and dialects. The formula ensures that students learn their mother tongue or regional language, helping to sustain linguistic heritage.
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Enhance Global Competence:
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The inclusion of English, a global lingua franca, prepares students for higher education and professional opportunities in an increasingly interconnected world.
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Facilitate Communication:
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The formula aims to equip students with proficiency in multiple languages, enabling them to communicate effectively across different regions and cultures within India.
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Structure of the Three-Language Formula:
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First Language: The mother tongue or regional language of the state.
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Second Language: Hindi (in non-Hindi-speaking states) or another Indian language (in Hindi-speaking states).
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Third Language: English or a modern Indian language (depending on the state's policy)
4. Challenges
- Tamil Nadu has historically opposed the imposition of Hindi. In 1937, when the C. Rajagopalachari-led government in Madras sought to make Hindi a compulsory subject in secondary schools, the Justice Party strongly resisted the move.
- During the protests, two young activists, Thalamuthu and Natarajan, lost their lives and became symbols of the anti-Hindi movement. Following widespread opposition, Rajaji resigned, and the British administration repealed the order.
- In 1965, as the deadline for making Hindi the sole official language of India approached, large-scale protests erupted in Tamil Nadu, resulting in the deaths of at least 70 people due to police action or self-immolation.
- The issue resurfaced when Parliament passed the Official Languages (Amendment) Act, 1967, and the Official Language Resolution, 1968, which mandated Hindi instruction under the three-language formula.
- In response, the C.N. Annadurai-led DMK government passed a resolution in January 1968, advocating for the abolition of the three-language policy and the removal of Hindi from Tamil Nadu's school curriculum.
- Since then, the state has consistently adhered to a two-language system, offering instruction only in Tamil and English. Both the ruling DMK and the opposition AIADMK have steadfastly resisted any attempts to modify this approach. In 2019, widespread opposition led the Kasturirangan Committee to drop the mandatory Hindi clause from the draft National Education Policy (NEP
5.Why is the three-language policy seen as an attempt to impose Hindi?
- Political parties and activists in Tamil Nadu perceive the three-language policy as a covert attempt to introduce Hindi under the guise of linguistic diversity. They argue that, in reality, implementing this policy would inevitably result in Hindi being taught, as there are limited resources available for recruiting teachers and developing learning materials for other languages.
- Additionally, the Union Government and key BJP leaders have consistently advocated for the expansion of Hindi. In 2019, the Union Budget allocated ₹50 crore for hiring Hindi teachers in non-Hindi-speaking states.
- Critics argue that the Centre’s actions contradict its stated commitment to promoting regional languages, pointing to the insufficient recruitment of regional language teachers in Kendriya Vidyalayas and the lack of efforts to introduce South Indian languages in schools north of the Vindhyas
6. Way Forward
The most effective way forward is through meaningful dialogue and a balanced compromise between the Centre and the State, particularly on education—a subject that was moved to the Concurrent List during the Emergency. Tamil Nadu, which has adhered to its two-language policy for decades, has consistently achieved higher performance than many other states in crucial areas like Gross Enrolment Ratio and reducing school dropout rates. Disputes over introducing a third language should not be allowed to hinder funding for Samagra Shiksha, a comprehensive education programme
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For Prelims: NEP 2020, National Curriculum Framework, Sustainable Development Goals, University Grants Commission, Kothari Commission, Sarva Shiksha Abhiyan, Rashtriya Madhyamik Shiksha Abhiyan,
For Mains:
1. Discuss the key provisions and objectives of the National Education Policy (NEP) 2020. How does it aim to transform the Indian education system, and what are its implications for inclusive development? (250 Words)
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Previous Year Questions
1. Consider the following statements: (UPSC CSE 2018)
1. As per the Right to Education (RTE) Act, to be eligible for appointment as a teacher in a State, a person would be required to possess the minimum qualification laid down by the State Council of Teacher Education concerned.
2. As per the RTE Act, for teaching primary classes, a candidate is required to pass a Teacher Eligibility Test conducted in accordance with the National Council of Teacher Education guidelines.
3. In India, more than 90% of teacher education institutions are directly under the State Governments.
Which of the statements given above is/are correct?
(a) 1 and 2 (b) 2 only (c) 1 and 3 (d) 3 only
Answer: B
2. Consider the following statements: (UPSC CSE 2016)
1. The Sustainable Development Goals were first proposed in 1972 by a global think tank called the 'Club of Rome'.
2. The Sustainable Development Goals have to be achieved by 2030.
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
3. The objective(s) of Rashtriya Madhyamik Shiksha Abhiyaan is/are: (UKSSSC Forest Guard 2021)
A. To provide quality based education to all children from 14 to 18 years
B. Universal standstill till the year 2020
C. To provide residential school for the students of remote areas
D. All of the above
Answer: D
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Source: The Hindu
AADHAAR
1. Context
Going forward, a voter declining to share their Aadhaar number with the Election Commission (EC) may have to make a personal appearance before the Electoral Registration Officer (ERO) to show cause for not providing this information.
2. About Aadhaar
- The Aadhaar card is a 12-digit unique number issued by the Unique Identification Authority of India (UIDAI).
- It contains biometric information, such as fingerprints and iris scans, along with demographic information, including individuals' addresses and date of birth.
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The Aadhaar card serves as proof of identity and is valid anywhere in India for identification purposes. Having an Aadhaar card is compulsory while applying for a new PAN card or filing Income tax returns.
- However, it can be used as a single identification document. Banks, financial institutions and telecom companies can also use it as a Know-Your-Customer (KYC) verification
mode and maintain profiles.
Eligibility criteria for an Aadhaar card
- Any Indian resident irrespective of his/her gender and age can enroll for an Aadhaar card.
- As per the Aadhaar Act 2016, Indian citizens need to reside in the country for 182 days or more in the year preceding the date of enrolment.
- Non-resident Indians (NRIs) and Overseas Citizens of India (OCI) are not eligible for an Aadhaar card. If NRIs and foreigners satisfy the minimum duration of stay as per the aforementioned Act, they can apply for an Aadhaar card.
- Minors, too, can apply for an Aadhaar card. Children under the age of 5 will get the Blue Colour Aadhaar, which needs to be updated after they become 5 years old.
What is Masked Aadhaar?
- Masked Aadhaar is similar to a regular Aadhaar with the difference that the Aadhaar number is partially hidden.
- Only the last four digits of the Aadhaar number are visible and the rest are crossed.
- It means replacing the first eight digits with some characters like 'xxxx-xxxx' while only the last four digits of the original number are visible.
- Other details on the Aadhaar card remain the same such as the name, date of birth, gender, address, and QR code.
- One can download an Aadhaar card easily online.
3. Aadhaar Made Mandatory for Various Schemes
The Supreme Court ruled that Aadhaar cannot be mandatory for welfare schemes, and the government has announced its implementation for several programs, causing confusion and raising concerns.
Schemes Where Aadhaar is Mandatory
Welfare Schemes
- Beedi/Iron Ore/Limestone workers' house subsidy
- Supplementary nutrition program
- Crop insurance and subsidized foodgrains/cash subsidy for farmers
- Integrated Dept. of Horticulture, National Apprenticeship Promotion Scheme, and Janani Suraksha Yojana benefits
- Training under Integrated Child Development Services
- Grih Kalyan Kendra scheme benefits
- National Mission for Empowerment of Women, Scheme for Adolescent Women, Central scholarships, and National Means-cum-Merit Scholarship
- e-Panchayat training benefits and central college scholarships
- Soil Health Management and Card Schemes
- Supplementary meals at creches
- Maternity Benefit Programme and Integrated Child Protection Scheme
- Vocational training, loans, and other schemes for women
- Water and social services benefits under Research and Development in Water Sector and National Social Assistance Program
- Mid Day meal benefits (including cooks-cum-helpers)
- Deendayal Antyodya Yojana and National Rural Livelihoods Mission
- Benefits for disabled children under Sarva Shiksha Abhiyan
Non-Welfare Schemes
- Booking tickets on the Indian Railways online platform (IRCTC)
- Filing Income Tax returns or applying for PAN (linking PAN with Aadhaar mandatory)
4. Concerns and Implications
- This contradicts the Supreme Court's ruling, raising concerns about legal challenges and potential violation of individual rights.
- Exclusion of beneficiaries who lack Aadhaar or face difficulties registering could defeat the schemes' intended purpose.
- Privacy and data security issues remain, as Aadhaar integration expands.
5. The Way Forward
Clear communication and transparency regarding Aadhaar's role in each scheme are crucial. Addressing concerns around accessibility, data security, and potential exclusion is necessary. Finding a balance between leveraging Aadhaar's benefits and upholding individual rights and liberties is key.
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For Prelims: Aadhaar, Aadhaar-enabled Payment Services, RBI, welfare schemes
For Mains:
1. Discuss the impact of Aadhaar on financial inclusion and digital transactions in India. What are the challenges and opportunities for further improving financial accessibility using Aadhaar-based systems? (250 words)
2. Discuss the potential of Aadhaar in enhancing internal security and countering terrorism. How can this be achieved while safeguarding individual liberties and preventing misuse of the system? (250 words)
3. Imagine you are tasked with leading a public outreach campaign on Aadhaar in a rural community. How would you address concerns, clarify misconceptions, and ensure informed participation? (250 words)
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Previous Year Questions
1. Consider the following statements: (UPSC 2017)
1. National Payments Corporation of India (NPCI) helps in promoting financial inclusion in the country.
2. NPCI has launched RuPay, a card payment scheme
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
2. Consider the following statements: (UPSC 2020)
1. Aadhaar metadata cannot be stored for more than three months.
2. State cannot enter into any contract with private corporations for sharing of Aadhaar data.
3. Aadhaar is mandatory for obtaining insurance products.
4. Aadhaar is mandatory for getting benefits funded out of the Consolidated Fund of India.
Which of the statements given above is/are correct?
A. 1 and 4 only B. 2 and 4 only C. 3 only D. 1, 2, and 3 only
3. Consider the following statements: (UPSC 2018)
1. Aadhaar card can be used as proof of citizenship or domicile.
2. Once issued, the Aadhaar number cannot be deactivated or omitted by the Issuing Authority.
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
Answers: 1-C, 2-B, 3-D
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Source: The Indian Express
FINANCIAL BILL VS MONEY BILL
1. Context
The new Income Tax Bill will be taken up for discussion in the Monsoon Session of Parliament, Finance Minister Nirmala Sitharaman
2. About Finance Bill and Money Bill
- A Finance Bill is a type of Financial Bill that deals with revenue and expenditure matters.
- A Money Bill, as defined in Article 110, exclusively pertains to specific subjects like taxes, borrowing, and expenditure from the Consolidated Fund of India.
- The President's recommendation is required to introduce a Finance Bill that deals with matters specified in Article 110(1) (a) to (f), and it can only be introduced in the Lok Sabha.
3. Difference Between Money Bills and Financial Bills
- Origin: Money Bills can only be introduced in the Lok Sabha, while ordinary Financial Bills can be introduced in either House.
- President's Recommendation: Money Bills require the President's recommendation for introduction, while ordinary Financial Bills do not need such recommendation.
- Rajya Sabha's Role: For Money Bills, the Rajya Sabha has a recommendatory role and must return the Bill with recommendations within 14 days. The Lok Sabha can reject these recommendations. In contrast, ordinary Financial Bills can be rejected or amended by the Rajya Sabha.
- Joint Sitting: A joint sitting of both Houses can be summoned by the President to resolve differences over an ordinary Bill, but no such provision exists for Money Bills.
4. Court's Views on Money Bills
- In November 2019, a five-judge Constitution Bench struck down amendments to the 2017 Finance Act, passed as a Money Bill, for altering the structure and functioning of tribunals.
- The court directed the formulation of fresh norms for appointing tribunal members.
- The court referred the issue of whether the amendments could have been passed as a Money Bill to a seven-judge bench for consideration.
5. Doubts Over Aadhaar Act Passed as a Money Bill
- The 2018 verdict upholding the 2016 Aadhaar Act, passed as a Money Bill, came under scrutiny.
- The Bench expressed doubts over the correctness of the previous ruling and its application to the present case.
- CJI Chandrachud, a dissenting judge in the 2018 Aadhaar ruling, criticized the government for passing the Act as a Money Bill, calling it a "fraud on the Constitution."
- Petitions seeking a review of the Aadhaar Act ruling are still pending in the Supreme Court.
6. The Way Forward
- Understanding the distinctions between Money Bills and other Financial Bills is crucial in the Indian legislative process.
- While Money Bills have a restricted role for the Rajya Sabha, other Financial Bills require agreement from both Houses.
- The Supreme Court's recent views on the Aadhaar Act and the Finance Act have added further complexity to the discussion on the appropriate use of the Money Bill route for specific legislation.
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For Prelims: Money Bill, Financial Bill, Aadhaar Act, Lok Sabha, Rajya Sabha, Finance Act, Supreme Court,
For Mains:
1. What are the constitutional safeguards in place to prevent misuse of the Money Bill? Critically assess the mechanisms to ensure that only appropriate bills are categorized as Money Bills. (250 Words)
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Previous Year Questions
1. Regarding Money Bill, which of the following statements is not correct? (UPSC 2018)
1. A bill shall be deemed to be a money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax.
2. A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
3. A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India.
4. A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.
Answer: 3
2. Consider the following statements: (UPSC 2018)
1. Aadhaar card can be used as a proof of citizenship or domicile.
2. Once issued, the Aadhaar number cannot be deactivated or omitted by the Issuing Authority. Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: D
3. Consider the following statements: (UPSC 2015)
1. The Rajya Sabha has no power either to reject or to amend a Money Bill.
2. The Rajya Sabha cannot vote on the Demands for Grants.
3. The Rajya Sabha cannot discuss the Annual Financial Statement.
Which of the statements given above is/are correct?
A. 1 only B. 1 and 2 only C. 2 and 3 only D. 1, 2 and 3
Answer: B
4. 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 judgement 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: C
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Source: The Indian Express
GLOBAL WARMING
1. Context
Soaring temperatures are leading to rapid and largely irreversible changes in the mountain ranges of the world, according to a new UNESCO report. In several regions, higher elevations seem to be warming faster than lower ones; glaciers are melting at an accelerated rate; permafrost is thawing at an increased rate; snow cover has declined; and snowfall patterns have become more erratic.
2. The difference in Temperature rise
- Temperature rises over land is much higher than over oceans. Overland the annual mean temperatures have risen by as much as 1.59 degree Celsius since preindustrial times, according to the latest report of the Intergovernmental Panel on Climate Change.
- Oceans, in contrast, have warmed by about 0.88 degree Celsius. The warming trends over the Indian region are very different.
- An assessment of climate change over the Indian subcontinent, published by the Ministry of Earth Sciences in 2020, said annual mean temperatures had risen by 0.7 degree Celsius from 1900.
- This is significantly lower than the 1.59 degree Celsius rise for land temperatures across the world. It could give the impression that the problem of climate change in India was not as acute as in other parts of the world. But that is not entirely accurate.
3. Why is warming over India is lower?
- The relatively lower rise in temperatures over India is not a surprise. Also, India is not a special case. The increase in temperatures is known to be more prominent in the higher altitudes, near the polar regions, than near the equator.
- This is attributable to a complex set of atmospheric phenomena, including heat transfers from the tropics to the poles through prevailing systems of air circulation. India happens to be in the tropical region, quite close to the equator.
- A substantial part of the difference between the temperature rise over India and that over the entire world can be explained by understanding what the different numbers represent.
- The planet as a whole has warmed by 1.1 degree Celsius compared with preindustrial times.
- But, as mentioned earlier, this is just the average. Different regions have seen very different levels of warming.
- The polar regions, particularly the Arctic, have seen significantly greater warming. The IPCC report says the Arctic region has warmed at least twice as much as the world average.
- Its current annual mean temperatures are about 2 degrees Celsius higher than pre-industrial times. Some other studies suggest the Arctic could be warming even faster.
- Again, this happens because of a variety of reasons, including the processes mentioned earlier. Another prominent cause is what is known as the albedo effect, or how much sunlight a surface reflects. The ice cover in the Arctic is melting, because of which more land or water is getting exposed to the Sun.
- Ice traps the least amount of heat and reflects most of the solar radiation when compared with land or water.
- More recent research suggests that the higher warming in the polar region could be attributed to a host of factors, including the albedo effect, changes in clouds, water vapour, and atmospheric temperatures.
- The warming in the polar regions accounts for a substantial part of the 1.1-degree Celsius temperature rise over the entire globe.
4. Higher warming over land than oceans
- However, the 0.7 degree Celsius temperature rise over India has to be compared with the warming seen over land areas, not the entire planet.
- As mentioned, land areas have become warmer by 1.59 degree Celsius. Land areas tend to get heated faster and by a larger amount, than oceans.
- Daily and seasonal variations in heating over land and oceans are usually explained in terms of their different heat capacities. Oceans have a higher capacity to cool themselves down through the process of evaporation.
- The warmer water evaporates, leaving the rest of the ocean relatively cooler. However, longer-term enhanced heating trends over land have to be attributed to other, more complicated, physical processes involving land-ocean-atmospheric interactions.
5. Impact of Aerosols
- Aerosols refer to all kinds of particles suspended in the atmosphere. These particles have the potential to affect the local temperature in multiple ways.
- Many of these scatter sunlight back, so that lesser heat is absorbed by the land. Aerosols also affect cloud formation.
- Clouds, in turn, have an impact on how much sunlight is reflected or absorbed.
Aerosol concentration in the Indian region is quite high, due to natural as well as man-made reasons. - Due to its location in the tropics and the arid climate, India is no stranger to dust. But it also happens to be experiencing heavy pollution right now.
- Emissions from vehicles, industries, construction, and other activities add a lot of aerosols to the Indian region. A reduction in warming could be an unintended but positive side effect.
| For Prelims: Global Warming, Intercontinental Panel on Climate Change (IPCC), Aerosols, Albedo, Climate change, and land-ocean-atmospheric interactions. |
Previous year Questions
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1. In the context of mitigating the impending global warming due to anthropogenic emissions of carbon dioxide, which of the following can be the potential sites for carbon sequestration? (UPSC 2017)
1. Abandoned and uneconomic coal seams
2. Depleted oil and gas reservoirs
3. Subterranean deep saline formations
Select the correct answer using the code given below:
A. 1 and 2 only
B. 3 only
C. 1 and 3 only
D. 1, 2, and 3 only
Answer: D
2. Consider the following statements: (UPSC 2017)
1. Climatic and Clean Air Coalition (CCAC) to Reduce Short-Lived Climate Pollutants is a unique initiative of the G20 group of countries.
2. The CCAC focuses on methane, black carbon, and hydrofluorocarbons.
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
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Source: The Indian Express
EQUILISATION LEVY
1. Context
As part of amendments to the Financial Bill, 2025, the central government has proposed to remove the 6 per cent equilisation levy (EL) charges imposed on digital ads from April 1, 2025. The move came in response to President Donald Trump’s announcement of imposing a reciprocal tax on India. Experts believe that it remains to be seen whether this step, coupled with ongoing diplomatic measures, would lead to any softening of the US stance
2. Google Tax
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The Equalisation Levy, commonly referred to as the ‘Google tax,’ is imposed to create a level playing field between domestic and foreign e-commerce companies in terms of taxation. Introduced in 2016, this levy stands at 6% and applies to e-commerce firms generating revenue from Indian customers despite lacking a physical presence in the country.
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The levy is applicable only when annual payments to a non-resident service provider for online advertisements exceed ₹1 lakh. However, it is not imposed if the service is availed for personal purposes rather than business or professional use.
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In 2020, the government amended the Finance Act, 2020, broadening the scope of the Equalisation Levy to include non-resident e-commerce entities engaged in selling goods or providing services online. Under this revision, a 2% levy was imposed on such transactions.
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The United States strongly opposed this tax, labeling it as “unreasonable and discriminatory,” as it exempted Indian companies while targeting foreign firms. Due to these concerns, India decided to withdraw the 2% levy in 2024, although the 6% levy remained in place.
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Apart from the Equalisation Levy, India also introduced the concept of Significant Economic Presence (SEP) to define a business connection for non-residents. SEP applies to foreign businesses with a considerable digital or economic footprint in India, even in the absence of a physical establishment, provided their transactions exceed a specified threshold
3. Changes in Financial bill 2025
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Modifications have been introduced regarding the assessment of undisclosed income uncovered during search and seizure operations. A new term, ‘Total Undisclosed Income,’ has been added to specify that such proceedings aim solely at identifying and penalizing unreported earnings.
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The Bill provides a definition for virtual digital space, describing it as any digital environment that enables users to interact, communicate, and conduct activities using computer technology. This includes email servers, social media platforms, online trading and investment accounts, remote or cloud servers, and digital application platforms.
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Virtual digital assets, such as cryptocurrencies, have been classified as property, making them part of an individual’s capital assets, alongside existing categories such as immovable property.
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The updated Bill grants tax authorities the power to override access controls of computer systems and virtual digital spaces, including online trading and investment accounts, cloud servers, and other digital platforms, during search and seizure operations
4. Base Erosion and Profit Shifting (BEPS)
The government states that both the Equalisation Levy and Significant Economic Presence (SEP) are in line with India’s commitment to the Base Erosion and Profit Shifting (BEPS) Action Plan formulated by the Organisation for Economic Co-operation and Development (OECD).
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As per the OECD’s official website, Base Erosion and Profit Shifting (BEPS) refers to tax strategies employed by multinational corporations to exploit gaps in tax regulations, shifting their profits to jurisdictions with little or no taxation, thereby reducing their tax liabilities.
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The OECD/G20 BEPS Project provides governments with frameworks and tools to curb tax avoidance, ensuring that corporate profits are taxed in the countries where the underlying economic activities occur and where value is actually generated.
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BEPS Action 1 addresses the significant challenges posed by the digital economy, aiming to develop a globally accepted solution. According to the OECD’s policy paper, an ‘Equalisation Levy’ is suggested as a potential approach to mitigate direct tax concerns arising from digital business models.
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In October 2021, India, the United States, and other members of the OECD/G20 Inclusive Framework reached an agreement to implement a two-pillar strategy to manage tax complexities linked to the expansion of the digital economy.
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The global tax deal’s two-pillar solution comprises:
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Pillar One, which involves reallocating a portion of profits to the jurisdictions where businesses operate.
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Pillar Two, which introduces a minimum tax and a subject-to-tax rule to ensure fair taxation
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5. Organisation for Economic Co-operation and Development (OECD)
The Organisation for Economic Co-operation and Development (OECD) is an international organization that works to promote economic growth, trade, and global development through policy coordination among member countries. Established in 1961, the OECD has 38 member countries, primarily from North America, Europe, and the Asia-Pacific region.
Key Functions of OECD:
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Policy Analysis & Recommendations: Provides research-based insights on economic policies, taxation, education, and trade.
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International Taxation Standards: Leads initiatives like Base Erosion and Profit Shifting (BEPS) to prevent corporate tax avoidance.
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Global Economic Monitoring: Publishes reports such as the OECD Economic Outlook and Better Life Index to assess economic trends.
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Sustainable Development & Governance: Supports environmental policies, digital economy frameworks, and corporate governance standards
Though India is not a member, it actively engages with the OECD as a key partner in areas like taxation, economic reforms, and trade regulations. India also participates in the OECD/G20 Inclusive Framework on BEPS to ensure fair international taxation practices
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For Prelims: Organisation for Economic Co-operation and Development (OECD), Base Erosion and Profit Shifting (BEPS)
For Mains: GS III - Economy
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Previous Year Questions
1.With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct? (UPSC CSE 2018)
1. It is introduced as a part of the Income Tax Act. 2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”. Select the correct answer using the code given below : (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
Source: Indianexpress
DEEPFAKES
1. Context
DEEPFAKES TARGETING women during state elections, a rise in scam content using AI, better enforcement rather than new laws, and lack of uniform definition for “deepfake” — these are some of the key concerns raised by stakeholders, according to a status report submitted by the Ministry of Electronics and Information Technology (MeitY) to the Delhi High Court
2. What are Deepfakes
- Deepfake is a type of synthetic media in which a person in an already-existing video or image is replaced with another person. It manipulates the audio/video, which has the propensity to the device, using machine learning and artificial intelligence.
- Due to the ease with which bogus news, celebrity pornographic content, etc. get shared online, it has drawn attention.
- It makes a fake version of original or real audio-visual content by superimposing a new audio or image over an existing media file.
- In September 2019, the AI company Deeptrance discovered 15,000 deep fakes videos online-nearly tripling in just nine months. A starting 96% of them were pornographic, and 99% of them matched the faces of famous women to porn actors.
- Deepfakes can be used to damage reputation, fabricate evidence, defraud the public, and undermine trust in democratic institutions.
- All this can be achieved with fewer resources, with scale and speed, and even microtargeted to galvanize support.
3. How did Deepfakes Work?
- Deepfake content is created by using two competing AI algorithms- one is called the generator and the other is called the discriminator.
- The discriminator is tasked with determining if the fake multimedia content produced by the generator is real and manufactured.
- A generative adversarial network is created when the generator and discriminator work together (GAN). Every time the discriminator correctly recognizes the content as being fake, it gives the generator important insights into how to make the next deep fakes better.
- The first step in establishing a GAN is to identify the desired output and create a training dataset for the generator.
- Video clips can be supplied to the discriminator after the generator starts producing output at a level that is acceptable.
4. Who are the Victims?
- The first case of malicious use of deep fake was detected in pornography. According to sensity.ai, 96% of deepfakes are pornographic videos, with over 135 million views on pornographic websites alone. Deepfake pornography exclusively targets women.
- Pornographic deepfakes can threaten, intimidate, and inflict psychological harm. It reduces women to sexual objects causing emotional distress, and in some cases, leading to financial loss and collateral consequences like job loss.
- Deepfake could act as a powerful tool by a malicious nation-state to undermine public safety and create uncertainty and chaos in the target country. Deepfake can undermine trust in institutions and diplomacy.
5. Challenges with Deepfake
- Deepfake causes financial fraud, which poses problems for the entire financial system.
- In the era of the threat of fake news, it also poses a threat to the security of cyber systems and the validity of online registration.
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Deepfakes in phishing efforts would make it more challenging for people to recognize a hoax.
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In any nation, deep fakes can be used to sabotage democratic procedures like elections.
- The potential for harm to people, organizations, and societies is enormous since it can be used to generate phony pornographic videos and make politicians appear to say things they did not.
- Any genuine evidence of a crime can be easily discounted as false because the public is so distrustful due to the prevalence of deep fakes.
- Fake movies are likely to become more popular outside the world of celebrities as new technology enables unskilled people to create deep fakes with just a few images. This will feed the growth of revenge porn.
- The use of fake identities and impostor frauds in cybercrime is rising.
6. What is the Solution?
- Media literacy efforts must be enhanced to cultivate a discerning public. Media literacy for consumers is the most effective tool to combat disinformation and deep fakes.
- We also need meaningful regulations with a collaborative discussion with the technology industry, Civil society, and policymakers to develop legislative solutions to disincentivize the creation and distribution of malicious deepfakes.
- Social media platforms are taking cognizance of the deepfake issue, and almost all of them have some policy or acceptable terms of use for deepfakes.
- We also need easy-to-use and accessible technology solutions to detect deepfakes, authenticate media, and amplify authoritative sources.
For Prelims & Mains
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For Prelims: Artificial Intelligence (AI), Deepfake Technology, and AI algorithms.
For Mains: 1. What are deepfakes and explain the challenges with deep-fake technology in the present technological world.
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Source: The Hindu
