COMPTROLLER AUDITOR GENERAL (CAG)
1. Context
The Comptroller and Auditor-General of India (CAG) flagged lapses worth ₹573 crore in the Railways as detailed in the ‘Union Government (Railways) – Compliance Audit Report’ tabled in Lok Sabha on Monday
2. About CAG
- Article 148 of the Indian Constitution provides for an Independent Office of Comptroller Auditor General (CAG)
- Head of the Indian Audits and Account Department
- It is an apex authority for external and internal audits of the expenses of the National and State governments
3. Appointments, Term & Removal
- The CAG is appointed by the President, they should take oath before the president or before someone from the President's office
- CAG holds Office for six years or up to the age of 65 years whichever is early
- CAG can resign by addressing their resignation to the President
- CAG can be removed by the President from Office in the same manner as a Supreme court Judge or Resolution passed by the President in both houses of the Parliament with a special majority, either on the ground of misbehaviour or incapacity
- CAG is not eligible to join any Central Government Post or any State government Post
- Expenses, allowances, and salaries are drawn from the Consolidated Fund of India.
4. Duties of CAG
Articles 148,149,150 and 151 of the Constitution of India describe the function and power of the CAG office
- CAG will conduct all expenses from Consolidated Fund in all the states and UT has a legislative assembly
- CAG Audits all the expenses from the Contingency Fund of India and Public accounts of India as well as the Contingency Fund of State and Public Accounts of a State
- CAG Audits all trading accounts, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central and State Governments
- CAG Audits the receipts and expenditures of all bodies and Authorities which are financed by the Central and State Government revenues
- CAG Submits audit reports relating to the Central Government to President and State Governments to Governor, they will furnish these reports in parliament as well as in-state assemblies
- CAG submits three reports to the President 1-Report on Appropriation accounts, a report on financial accounts, a report on public undertakings
5. CAG Audit and Financial Irregularities
The Comptroller and Auditor General (CAG) of India conducted an audit of expenses in nine BMC departments between November 28, 2019, and October 31, 2022.
The audit was initiated by the state government, which highlighted alleged irregularities amounting to Rs 12, 000 crores in 76 projects, primarily undertaken during the pandemic.
Obstacles Faced by CAG The CAG's audit covered Rs 8, 500 crores of the total expenditure, as the BMC objected to auditing the remaining amount. The BMC issued a legal notice to halt the audit of any acts, works or decisions related to Covid management and expenditure amounting to Rs 3, 538.73 crores, citing provisions of the Epidemic Act, 1897 and the Disaster Management Act 2005.
Project Audits and Findings The CAG report, spanning 146 pages, highlighted weaknesses in internal control mechanisms within the BMC. It revealed instances where work orders were awarded without tenders, contractual documents were not executed and third-party auditors were not appointed to assess the quality of work.
Departments Under Scrutiny Various BMC departments were found to have financial irregularities. The Development Plan Department was flagged for overvaluation of expenditure during land acquisition and delays in acquiring land for public amenities. The Bridges Department awarded work orders without registering private contractors with the BMC. The report also mentioned cost escalations, delayed clearances and irregularities in various other projects and departments.
Financial Transactions During the Pandemic While the ED is investigating financial transactions during the Pandemic period, the CAG report sheds light on the wide-ranging financial irregularities across multiple BMC departments.
6. The way forward
The ED raids and the CAG report have brought to light alleged financial irregularities in the BMC's operations. Investigations and further actions will be taken to determine the extent of the scam and hold those responsible accountable.
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For Prelims: Enforcement Directorate, Brihanmumbai Municipal Corporation, Special Investigation Team, Comptroller Auditor General, Consolidated Fund of India, Contingency Fund of India, Report on Appropriation accounts, a report on financial accounts, a report on public undertakings,
For Mains:
1. Examine the constitutional provisions and powers of the CAG in conducting audits of government expenses at both the central and state levels. Discuss the significance of the CAG's role in upholding financial discipline and promoting good governance. (250 Words)
2. Explore the role of technology and digital platforms in improving financial oversight and preventing irregularities in government projects. Discuss the potential benefits and challenges associated with the implementation of digital auditing mechanisms. (250 Words)
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Previous Year Questions
1. Which one of the following is not correct in respect of Directorate of Enforcement? (CDS 2021)
A. It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.
B. It enforces the Foreign Exchange Management Act, 1999.
C. It enforces the Prevention of Money Laundering Act, 2002.
D. It enforces the Prohibition of Benami Property Transaction Act, 1988.
Answer: D
2. The Comptroller and Auditor-General (CAG) of India can be removed from office only by the: (UPSC CAPF 2015)
A. President on the advice of the Union Cabinet.
B. Chief justice of the Supreme Court.
C. President of India after an address in both Houses of Parliament.
D. President on the advice of Chief Justice of India.
Answer: C
3. With reference to the Union Government, consider the following statements: (UPSC 2015)
1. The Department of Revenue responsible for the preparation of Union Budget that is presented to the Parliament.
2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India
3. All the disbursements made from Public Account also need authorization from the Parliament of India.
Which of the statements given above is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 2 only D. 1, 2 and 3
Answer: C
4. The Contingency Fund of India is placed at whose disposal? (SSC CGL 2017)
A. The Prime Minister
B. Judge of Supreme Court
C. The President
D. The Finance Minister
Answer: C
5. In India, other than ensuring that public funds are used efficiently and for their intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)? (UPSC 2012)
1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares a national emergency/financial emergency.
2. CAG reports on the execution of projects or programs by the ministers are discussed by the Public Accounts Committee.
3. Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances.
4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.
Which of the statements given above is/are correct?
A. 1, 3 and 4 only B. 2 only C. 2 and 3 only D. 1, 2, 3 and 4
Answer: C
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Source: The Indian Express
FREE TRADE AGREEMENT
1. Context
As the United Kingdom and India move steadily toward signing of their historic Free Trade Agreement (FTA), there is growing recognition of the FTA’s potential to redefine bilateral economic engagement. Among the most promising areas of collaboration is the rapidly evolving ecosystem of Global Capability Centres (GCCs) — a sector where India leads, and the U.K. can be a pivotal partner.
2. About the Free Trade Agreement
- A Free Trade Agreement (FTA) is an agreement between two or more countries to reduce or eliminate barriers to trade, such as tariffs, quotas, and subsidies.
- FTAs can also include provisions on other issues, such as investment, intellectual property, and labour standards.
- The goal of an FTA is to promote trade and economic growth between the signatory countries.
- By reducing or eliminating trade barriers, FTAs can make it easier for businesses to export their goods and services to other countries, which can lead to increased production, employment, and innovation.
3. Types of Free Trade Agreement
- Bilateral Free Trade Agreement (BFTA) involves two countries, aiming to promote trade and eliminate tariffs on goods and services between them. It establishes a direct trade relationship, allowing for a more focused and tailored agreement between the two nations.
- Multilateral Free Trade Agreement (MFTA) Involving three or more countries, an MFTA seeks to create a comprehensive trade bloc, promoting economic integration on a larger scale. It requires coordination among multiple parties, addressing diverse economic interests and fostering a broader regional economic landscape.
- Regional Free Trade Agreement (RFTA) involves countries within a specific geographic region, aiming to enhance economic cooperation and integration within that particular area. It focuses on addressing regional economic challenges and fostering collaboration among neighbouring nations.
- Preferential Trade Agreement (PTA) involves a reciprocal reduction of tariffs and trade barriers between participating countries, granting preferential treatment to each other's goods and services. It allows countries to enjoy trading advantages with specific partners while maintaining autonomy in their trade policies with non-participating nations.
- Comprehensive Economic Partnership Agreement (CEPA) is a broad and advanced form of FTA that goes beyond traditional trade barriers, encompassing various economic aspects such as investment, intellectual property, and services. It aims for a more comprehensive economic partnership, encouraging deeper integration and collaboration between participating countries.
- Customs Union While not strictly an FTA, a Customs Union involves the elimination of tariffs among member countries and the establishment of a common external tariff against non-member nations. It goes beyond standard FTAs by harmonizing external trade policies, creating a unified approach to trade with the rest of the world.
- Free Trade Area (FTA) with Trade in Goods (TIG) and Trade in Services (TIS): Some FTAs specifically emphasize either trade in goods or trade in services, tailoring the agreement to the specific economic strengths and priorities of the participating countries. This approach allows nations to focus on areas where they have a comparative advantage, fostering specialization and efficiency.
4. India's Free Trade Agreements
India is a member of several free trade agreements (FTAs) and is currently negotiating others. India's FTAs have helped to reduce trade barriers and promote trade and economic growth. They have also helped to attract foreign investment and create jobs.
- The South Asian Free Trade Agreement (SAFTA) was signed in 1995 by the seven countries of the South Asian Association for Regional Cooperation (SAARC). SAFTA aims to reduce or eliminate tariffs on trade between the member countries.
- The India-Bangladesh FTA was signed in 2010 and came into force in 2011. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Sri Lanka FTA was signed in 1999 and came into force in 2000. It is a comprehensive FTA that covers goods, services, and investments.
- The India-ASEAN Free Trade Agreement was signed in 2002 and came into force in 2010. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Korea Comprehensive Economic Partnership Agreement (CEPA) was signed in 2010 and came into force in 2011. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Japan Comprehensive Economic Partnership Agreement(CEPA) was signed in 2022 and came into effect in 2023. It is a comprehensive FTA that covers goods, services, and investments.
- The India-UAE Comprehensive Partnership Agreement (CEPA) was signed in 2022 and came into effect in 2022. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Australia Economic Cooperation and Trade Agreement (ECTA) was signed in 2022 and came into effect in 2022. It is a comprehensive FTA that covers goods, services, and investments.
- The India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) was signed in 2010 and aims to enhance economic ties by addressing trade in goods and services, as well as investment and other areas of economic cooperation.
- The India-Thailand Free Trade Agreement was signed in 2003 and focuses on reducing tariffs and promoting trade in goods and services between India and Thailand.
- The India-Singapore Comprehensive Economic Cooperation Agreement (CECA) has been operational since 2005, this agreement covers trade in goods and services, as well as investment and intellectual property.
- The India-Nepal Trade Treaty While not a comprehensive FTA, India and Nepal have a trade treaty that facilitates the exchange of goods between the two countries.
- The India-Chile Preferential Trade Agreement was signed in 2006 and aims to enhance economic cooperation and reduce tariffs on certain products traded between India and Chile.
5. India - UK Free Trade Agreement
5.1. Background
- Both countries have agreed to avoid sensitive issues in the negotiations.
- The interim (early harvest agreement) aims to achieve up to 65 per cent coverage for goods and up to 40 per cent coverage for services.
- By the time the final agreement is inked, the coverage for goods is expected to go up to "90 plus a percentage" of goods.
- India is also negotiating a similar early harvest agreement with Australia, which is supposed to set the stage for a long-pending Comprehensive Economic Cooperation Agreement that both countries have been pursuing for nearly a decade.
- While the commencement of negotiations does mark a step forward in the otherwise rigid stance adopted and when it comes to trade liberalisation, experts point to impediments and the potential for legal challenges going ahead.
5.2. GATT (General Agreement on Trade and Tariffs)
- The exception to the rule is full-scale FTAs, subject to some conditions.
- One rider, incorporated in Article XXIV.8 (b) of GATT, stipulates that a deal should aim to eliminate customs duties and other trade barriers on "Substantially all the trade" between the WTO member countries that are signatories to an FTA.
- For this Agreement, a free-trade area shall be understood to mean a group of two or more customs territories in which the duties and other restrictive regulations of commerce are eliminated on substantially all the trade between the constituent territories in products originating in such territories.
- It is often beneficial to negotiate the entire deal together, as an early harvest deal may reduce the incentive for one side to work towards a full FTA.
- These agreements are not just about goods and services but also issues like investment.
- If you are trying to weigh the costs and benefits, it is always better to have the larger picture in front of you.
- In the case of the early harvest agreement inked with Thailand, automobile industry associations had complained that relaxations extended to Bangkok in the early harvest had reduced the incentive for Thailand to work towards a full FTA.
- Early harvest agreements may serve the function of keeping trading partners interested as they promise some benefits without long delays, as India becomes known for long-drawn negotiations for FTAs.
- Government emphasis on interim agreements may be tactical so that a deal may be achieved with minimum commitments and would allow for contentious issues to be resolved later.
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For Prelims: Free Trade Agreement, India-U.K, Bilateral Free Trade Agreement, G-20 Summit, Agenda 2030, Covid-19 Pandemic, SAARC, General Agreement on Trade and Tariffs, Comprehensive Economic Partnership Agreement, Multilateral Free Trade Agreement, Regional Free Trade Agreement, Preferential Trade Agreement, Customs Union,
For Mains:
1. Evaluate the potential impact of the India-UK FTA on the Indian economy, considering both positive and negative aspects (250 Words)
2. Critically evaluate the significance of Free Trade Agreements (FTAs) in promoting trade and economic growth, considering their potential benefits and drawbacks. (250 Words)
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Previous Year Questions
1. Consider the following countries:
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the free-trade partners' of ASEAN? (UPSC 2018)
A. 1, 2, 4 and 5 B. 3, 4, 5 and 6 C. 1, 3, 4 and 5 D. 2, 3, 4 and 6
Answer: C
2. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (UPSC 2018) (a) Industrial output fails to keep pace with agricultural output. Answer: C 3. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following: (2010)
Which of the above are the objectives of this Act? (a) 1 and 2 only (b) 3 only (c) 2 and 3 only (d) 1, 2 and 3 Answer: A 4. A “closed economy” is an economy in which (UPSC 2011) (a) the money supply is fully controlled Answer: D 5. With reference to the “G20 Common Framework”, consider the following statements: (UPSC 2022)
1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer: C
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Source: The Hindu
RIGHT TO VOTE
1. Context
The Supreme Court is hearing cases filed against the Special Intensive Revision (SIR) of electoral rolls in Bihar. One of the questions that has arisen during this debate has been the legal status of the ‘right to vote.’
2. Background of the latest Controversy
- Electoral rolls in India are regularly updated by the Election Commission to ensure that all eligible citizens are included and ineligible names (such as those of deceased individuals or people who have moved away) are removed. Usually, this happens through Annual Summary Revisions.
- However, sometimes, a Special Intensive Revision (SIR) is conducted, particularly when there are reports of major discrepancies in the electoral rolls or if there have been significant demographic changes.
- In Bihar, the Election Commission of India (ECI) ordered a Special Intensive Revision of the voter list, which involved house-to-house verification by booth-level officers (BLOs). This revision began in June 2024 and was set to continue till August, with the final roll expected to be published later
- The revision has been ordered after the conclusion of the 2024 Lok Sabha elections and just months before the scheduled 2025 Bihar Assembly elections. Opposition parties, particularly the Rashtriya Janata Dal (RJD), have raised concerns that the exercise might be used to manipulate voter lists in a way that could favor the ruling party at the state or central level.
- Opposition leaders and civil society groups have warned that the SIR could result in mass deletion of voters, especially among marginalised communities like Dalits, minorities, and migrant labourers who might not be present at home during the verification period.
- These groups are often the most vulnerable during such exercises due to lack of documentation or frequent change of residence.
Supreme Court response
- On July 10, the Supreme Court instructed the Election Commission (EC) to accept Aadhaar cards, voter ID cards, and ration cards as valid identity documents for the ongoing Special Intensive Revision (SIR) of electoral rolls in Bihar.
- The Court also scheduled the next hearing on the group of petitions challenging the EC’s move for July 28. In doing so, the Court emphasized that the 'right to vote' lies at the heart of India’s democratic structure, drawing national attention to the core mechanisms behind the country’s electoral system and the origin of its policy of universal adult suffrage (UAS).
- India’s approach to the right to vote, as enshrined in its Constitution, stands in marked contrast to the historical trajectory seen in many Western nations. Influenced by thinkers such as J.S. Mill, who argued that voting should be reserved for the “educated” and denied to the “uninformed,” several countries began with a highly exclusive franchise.
- For instance, in the United Kingdom, voting was initially limited to male property holders. It wasn't until 1918 that all men gained voting rights, and women had to wait until 1928 to be included.
- Similarly, in the United States, while constitutional amendments—the 15th in 1870 and the 19th in 1920—technically extended voting rights to African Americans and women respectively, practical obstacles like poll taxes and literacy tests kept many citizens disenfranchised for decades
3. Universal Adult Suffrage in India
- Unlike many other countries that took a gradual approach to granting voting rights—often limiting them to elite sections and undergoing long, sometimes violent struggles—India adopted a bold and inclusive strategy from the very beginning.
- Instead of restricting suffrage, India chose universal adult franchise at the time of independence, embracing the principle of democratic equality from the outset. Article 326 of the Indian Constitution guaranteed every adult citizen the right to vote, regardless of their gender, caste, religion, education, or economic status.
- This was a progressive move, especially when compared to other nations that were still cautiously expanding voting rights. Initially, the voting age was set at 21, but it was later lowered to 18 by the 61st Constitutional Amendment in 1989.
- The nation’s strong commitment to inclusive democracy was further underlined by several landmark Supreme Court rulings, starting with the Kesavananda Bharati v. State of Kerala case in 1973, which declared democracy a core feature of the Constitution’s ‘basic structure’.
- For democracy to thrive, it is essential that citizens retain the unchallenged right to choose their government freely—an essential pillar that must remain inviolable.
- This vision of inclusivity was implemented through two foundational laws: the Representation of the People Act of 1950, which oversees the creation and updating of electoral rolls, and the 1951 Act, which deals with the conduct of elections, eligibility of candidates, and electoral offences.
- The Election Commission of India (ECI) has consistently worked to fulfil this constitutional promise by introducing several administrative reforms. A notable example is the innovation introduced by Sukumar Sen, India’s first Chief Election Commissioner.
- Faced with the enormous task of registering 173 million mostly illiterate voters, he introduced the use of visual symbols for political parties—transforming a logistical challenge into a democratic milestone.
- In India, the ECI bears the crucial responsibility of ensuring that every eligible citizen, no matter how remote their location, can exercise their right to vote. As Winston Churchill aptly put it, “At the bottom of all tributes paid to democracy is the little man, walking into a little booth, with a little pencil, making a little cross on a little bit of paper…” His words serve as a powerful reminder that the legitimacy of any democracy ultimately hinges on protecting and upholding the sanctity of the vote
4. Is Voting a Fundamental right in India?
- The nature of the ‘right to vote’ in India has been a topic of legal and constitutional debate for decades. During the framing of the Constitution, both Dr. B.R. Ambedkar and K.T. Shah had advocated for its inclusion as a fundamental right.
- However, the Constituent Assembly’s Advisory Committee ultimately decided against this proposal. This position was later affirmed by the Supreme Court in the Kuldip Nayar v. Union of India case (2006), where a Constitution Bench ruled that the ‘right to elect’ is not a fundamental or constitutional right, but rather a statutory one derived from Section 62 of the Representation of the People Act (RPA), 1951.
- Although a two-judge bench in Rajbala v. State of Haryana (2016) referred to voting as a constitutional right, the earlier and more authoritative decision in Kuldip Nayar remains the guiding precedent.
- Again, in the 2023 Anoop Baranwal v. Union of India case, the Supreme Court refrained from revisiting this issue, reaffirming that it had already been conclusively addressed in the Kuldip Nayar ruling.
- Justice Ajay Rastogi, however, in a dissenting opinion, argued that the right to vote stems from Article 19(1)(a) of the Constitution (freedom of expression) and embodies the spirit of Article 21 (right to life and personal liberty).
- Despite his reasoning, this remains a minority viewpoint, and under current jurisprudence, voting continues to be classified as a statutory entitlement.
- Still, courts have consistently emphasised that, even if not fundamental in a legal sense, the right to vote is deeply embedded in the democratic framework of the country.
- It serves as a vital mechanism through which citizens participate in governance and decision-making, making it essential to the functioning and legitimacy of the Indian Republic.
- As philosopher John Dewey aptly observed, democracy extends beyond a governmental system—it represents a broader social and ethical ideal
5. Significance of accuracy of electoral roll
- The foundation of free and fair elections lies in the accuracy of electoral rolls, as mandated by the Representation of the People Act, 1950. When these rolls contain significant flaws—such as widespread omissions, inclusion of ineligible individuals, duplicate entries, or factual errors—it threatens the principle of “one person, one vote.”
- Such discrepancies open the door to impersonation, voter exclusion, or vote dilution, ultimately skewing the democratic verdict.
- To maintain the credibility of the electoral process, Section 21 of the 1950 Act grants the Election Commission (EC) the authority to compile and update electoral rolls as necessary.
- Although errors in voter lists are sometimes inevitable, the judiciary has consistently maintained that only major, systematic flaws that have a tangible impact on election results can call the validity of an election into question.
- Minor irregularities or isolated cases of disenfranchisement are not sufficient grounds for overturning results. Allegations of errors, such as those recently reported in Bihar, merit investigation.
- At the same time, it's important to recognise that cleansing voter rolls is essential—excluding a rightful voter weakens democracy, but so does allowing someone who is ineligible to remain on the list.
- Therefore, rather than obstructing the process, attention should be directed toward strengthening and refining it. The Supreme Court’s recommendation to accept a broader range of identity documents helps ensure that all legitimate voters retain their right to participate in elections.
- While the legal right to challenge or seek inclusion in the electoral rolls rests with individual citizens rather than political parties, the Supreme Court in Lakshmi Charan Sen v. A.K.M. Hassan Uzzaman (1985) emphasised that in a society with widespread illiteracy and limited political awareness, political parties have a responsibility to assist in ensuring that eligible voters are registered and ineligible names are removed.
- In a party-driven parliamentary system like India’s, such proactive engagement is essential for maintaining the credibility and integrity of elections
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Qualification for an Ordinary resident
Under Article 324 of the Constitution, the Election Commission (EC) acts as the constitutional authority responsible for overseeing and managing the electoral process. One of its fundamental responsibilities is the preparation of reliable electoral rolls. This task is carried out in accordance with Section 19 of the Representation of the People Act, 1950, which stipulates that every Indian citizen who is at least 18 years old, ordinarily resides in a particular constituency, and is not otherwise disqualified, is eligible for registration as a voter. The term “ordinarily resident” refers to someone who has a genuine and continuous presence in a location, rather than a brief or temporary stay. For instance, a student residing in a hostel may not meet the criteria if their permanent residence is elsewhere and they intend to return there. However, simply being away from one’s usual place of residence temporarily does not disqualify someone from being considered an ordinary resident of that place. This standard helps prevent fake or misleading entries in the voter list and ensures that electors have a meaningful connection to the constituency they vote in, thereby reinforcing the principle of accountable and representative democracy |
6. Way forward
The controversy surrounding the Special Intensive Revision (SIR) in Bihar and the wider discussions on electoral reforms underscore a fundamental principle of democracy: the strength of India’s democratic system relies on electoral rolls that are precise, inclusive, and easy to access. As the Supreme Court prepares to continue hearings on July 28, it is essential for the Election Commission to carry out the revision exercise with both diligence and inclusivity, ensuring the process remains fair and credible.
At the same time, it is crucial for citizens to be made aware of their role in the process—by checking and correcting their voter information, they become active participants in safeguarding electoral accuracy. Protecting the right to vote goes beyond fulfilling a legal mandate; it is a collective democratic duty that demands alert institutions, engaged and informed citizens, and progressive legal frameworks
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For Prelims: Election Commission of India (ECI), Representation of the People Act (RPA), 1951
For Mains: GS II - Polity and Governance
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Previous Year Questions
1. The Voter Verifiable Paper Audit Trail (VVPAT) system was used for the first time by the Election Commission of India in (UPSC CAPF 2019)
North Paravur Assembly Constituency, Kerala
B.Noksen Assembly Constituency, Nagaland
C.Mapusa Assembly Constituency, Goa
D.Nambol Assembly Constituency, Manipur
Answer (B)
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Source: The Hindu
NATIONAL FLAG
1. Context
On July 22, 1947, the Constituent Assembly of India adopted the National Flag. The adoption of the tricolour marked a pivotal moment in India’s journey towards establishing itself as an independent nation free from colonial rule. In this context, let’s know about the Indian national flag in detail through 10 must-know facts about it.
2. History of National Flag
- The national flag of India, commonly known as the Tiranga, is a horizontal tricolour flag. It features three colours: saffron, white, and green, with a navy blue 24-spoke wheel at the center, known as the Ashoka Chakra.
- The Indian Constituent Assembly adopted the flag on July 22, 1947, and it officially became the flag of the Union of India on August 15, 1947. It was later retained as the flag of the Republic of India. In India, the term 'tricolour' is synonymous with the national flag.
- The design of the tricolour is largely inspired by the Swaraj flag, which was the flag of the Indian National Congress and was adopted by Mahatma Gandhi after significant modifications to a design proposed by Pingali Venkayya. In 1947, Jawaharlal Nehru replaced the charkha (spinning wheel) with the Ashoka Chakra on the national flag.
- Originally, the national flag was made from Khadi, a hand-spun cloth or silk made popular by Mahatma Gandhi. However, an amendment in 2021 allowed flags to be made from polyester or produced by machines.
- The new regulations permit the Tricolour to be made from hand-spun, hand-woven, or machine-made cotton, polyester, wool, silk, or Khadi fabric.
- The Bureau of Indian Standards oversees the manufacturing process and specifications of the national flag. The manufacturing rights are held by the Khadi Development and Village Industries Commission, which assigns them to regional groups. Currently, only four units in India are licensed to manufacture the national flag
- The Flag Code of India regulates the usage of the national flag and originally restricted its use by private citizens to specific national holidays like Independence Day and Republic Day.
- In 2002, the Supreme Court instructed the Government of India to amend the code to permit private citizens to use the national flag. The Union Cabinet later revised the law to allow limited use by individuals, and in 2005, further amendments were made to permit additional uses, including its incorporation into certain types of clothing.
- The Flag Code also outlines the protocol for flying the national flag alongside other national and non-national flags
3. Evolution of National Flag
- The Indian National Flag has undergone multiple changes before taking on its present form. According to knowindia.gov.in, the first national flag was hoisted on August 7, 1906, in the Parsee Bagan Square (Green Park) in Calcutta, now Kolkata.
- Madame Cama and her band of exiled revolutionaries hoisted the flag for the second time in 1907. That was very similar to the national flag, but the lotus was replaced by stars denoted the Saptarishi.
- The flag was hoisted for the third time by Dr Annie Besant and Lokmanya Tilak in 1917. This national flag was very different from the previous two as it has red and green horizontal stripes, seven stars in the saptarishi configuration, a white crescent and star, and the Union Jack.
- The fourth flag was hoisted in 1921 which was prepared by Andhra youth who took it to Mahatma Gandhi during the All India Congress Committee session. It has red and green colours representing Hindu and Muslim communities in India. Mahatma Gandhi added a white strip representing the remaining communities and a spinning wheel that symbolises national growth.
- The present-day flag was adopted in 1931 and used in the battle ensign of the Indian National Army. The moment when the resolution was passed to adopt the national flag holds special significance. It has saffron, white and green bands and Gandhi's spinning wheel at the centre.
- Later, when India gained Independence, the colours of our flag remained the same but Gandhi's spinning wheel was replaced with the Dharma Charkha of Emperor Asoka
4. National Flag Designers
- Pingali Venkayya, originally from a village in Andhra Pradesh, was a freedom fighter and an exceptionally bright student from a young age. After completing high school in Madras, he went abroad to pursue his graduation at the University of Cambridge.
- A true scholar, he developed interests in geology, education, agriculture, and languages. While serving as a British Army soldier during the Anglo Boer War in South Africa, he met Mahatma Gandhi and was inspired by his principles, forming a close bond with him that lasted over 50 years.
- During his service as a British soldier, Venkayya had to salute the Union Jack, which deeply conflicted with his patriotic feelings.
- After his interaction with Gandhi, he experienced a turning point and decided to dedicate himself to the Indian freedom struggle.
- Upon returning to India, he focused on designing a national flag that could unite the country and resonate with all communities. In 1916, he even published a booklet on flags, which included twenty-four different designs
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The Indian National Flag, also known as the Tiranga, has a rich history of design contributions, primarily attributed to the following key figures:
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For Prelims: Indian Constituent Assembly, National Flag
For Mains: GS I - Modern Indian History
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Source: Business Standard
SOIL HEALTH CARDS SCHEME
1. Context
Only when soils receive the nutrients do they produce food that nourishes rather than merely fills stomachs. This is no longer just an agricultural issue; it’s a public health imperative.
2. About the Soil Health Cards Scheme
- The Ministry of Agriculture and Farmers’ Welfare introduced the scheme on December 5, 2015.
- Soil Health Card (SHC) is a printed report which contains nutrient status of soil concerning 12 nutrients: pH, Electrical Conductivity (EC), Organic Carbon (OC), Nitrogen (N), Phosphorus (P), Potassium (K), Sulphur (S), Zinc (Zn), Boron (B), Iron (Fe), Manganese (Mn) and Copper (Cu) of farm holdings.
- SHC is provided to all farmers in the country at an interval of 3 years to enable the farmers to apply recommended doses of nutrients based on soil test values to realize improved and sustainable soil health and fertility, low costs and higher profits. Farmers can track their soil samples and also obtain their Soil Health Card report.
- It is a field-specific detailed report of soil fertility status and other important soil parameters that affect crop productivity.
3. The Essence of Soil Health Cards
- At its core, the Soil Health Card serves as a potent tool, equipping farmers with invaluable insights into their soil's nutrient composition.
- More than a simple report, it offers bespoke recommendations, guiding farmers toward optimal nutrient application to enhance soil health and fertility.
4. Technological Advancements
- The once-familiar Soil Health Card portal underwent a comprehensive rejuvenation, converging with a cutting-edge Geographic Information System (GIS).
- This fusion empowers a comprehensive visualization, effectively capturing and displaying test results on a geographical canvas.
5. Revamped Mobile Application
- To streamline implementation and ensure unfettered access to soil health information, the mobile application underwent a substantial upgrade.
- Enhanced functionalities include region restrictions for Village Level Entrepreneurs/ Operators conducting soil sample collection, automated latitude and longitude selection, and the ingenious generation of QR codes.
- This linkage seamlessly bridges sample data with test results, a process executed without manual intervention.
6. Rollout and Implementation
- In April 2023 the revamped system was unveiled. A revolutionary shift transpired as samples were collected through a user-friendly mobile application.
- The resultant Soil Health Cards are now generated within the refurbished portal.
- To facilitate this transition, an impressive tally of 56 training sessions were diligently conducted, catering to various states.
7. Soil Health Card and RKVY
- The Soil Health Card scheme has woven its essence into the fabric of the Rashtriya Krishi Vikas Yojana (RKVY), confluence under the banner of 'Soil Health & Fertility' since the fiscal year 2022-23.
- This synergistic approach envisions a holistic agricultural transformation.
8. Village Level Soil Testing Labs (VLSTLs)
- A remarkable stride was taken with the issuance of guidelines for Village Level Soil Testing Labs (VLSTLs) on June 22, 2023.
- These labs can be envisioned by dynamic individuals such as rural youth or collective entities like Self Help Groups (SHGs), Schools, and Agriculture Universities.
9. Nurturing Village-Level Entrepreneurs
- Eligibility criteria for VLSTLs carve a path for aspiring young minds, with beneficiaries or village-level entrepreneurs falling within the age bracket of 18 to 27 years.
- Self Help Groups and Farmer's Producers Organisations (FPO) seamlessly integrate into this narrative, with their eligibility overseen by the District Level Executive Committee (DLEC).
10. Application Process and Training
- Initiating the journey involves applying for essential documents like qualification certificates, PAN Cards, and Aadhar Cards to the office of the Deputy Director/District Agriculture Officer.
- The training realm is further navigated as manufacturers and state governments orchestrate comprehensive guidance sessions on soil sampling, testing, and the meticulous generation of soil health cards.
11. Detailed Soil Mapping
- The landscape unravels further as Detailed Soil Mapping unfurls at a 1:10000 scale, orchestrated through a fusion of high-resolution satellite data and ground surveys.
- Prioritized areas undergo meticulous scrutiny by the Soil & Land Use Survey of India, Department of Agriculture & Farmers’ Welfare.
- This bountiful repository of Soil Resource Information, presented in digital format, stands distinct from the SHC endeavour.
12. The Way Forward
- The metamorphosis of the Soil Health Card Scheme signifies a resolute stride toward nurturing India's agricultural growth.
- Infusing technology with traditional wisdom, this narrative exemplifies the nation's steadfast commitment to fostering a resilient and sustainable farming ecosystem.
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For Prelims: Soil Health Card Scheme, District Level Executive Committee, Geographic Information System, Rashtriya Krishi Vikas Yojana, Village Level Soil Testing Labs, Self Help Groups,
For Mains:
1. Assess the challenges and opportunities in the implementation of the Soil Health Card Scheme. How can the scheme effectively address nutrient deficiencies and contribute to sustainable agricultural growth in India? (250 words)
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Previous Year Questions
1. Consider the following statements: (UPSC 2017)
The nation-wide ‘Soil Health Card Scheme’ aims at
1. expanding the cultivable area under irrigation.
2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
3. checking the overuse of fertilizers in farmlands.
Which of the above statements is/are correct?
A. 1 and 2 only B. 3 only C. 2 and 3 only D. 1, 2 and 3
Answer: B
2. Soil Health Card is related with (MPPSC AE Civil Engineering 2021)
A. Use of balanced fertilizer
B. High yields
C. Soil test
D. All of the above
Answer: D
3. Which of the following might be considered as the fourth dimension in GIS? (SSC Scientific Assistant Computer Science 2017)
A. Time B. Location C. Scale D. Space
Answer: A
4. For which of the following purposes can the Geographic Information System not be used? (CIL MT Civil 2017)
A. Studying the relative motions of planets
B. Disaster and business continuity planning
C. Deforestation
D. Development of public infrastructure facilities
Answer: A
5. Rashtriya Krishi vikas Yojana is a scheme of Government of India launched for the benefit of: (RRC Group D 2018)
A. School teachers
B. Agriculture & farmers
C. Industries
D. Hospitals
Answer: B
6. Consider the following statements: (MPSC Subordinate Services Prelims 2021)
a. Rashtriya Krishi Vikas Yojana was launched during the 11th Five Year Plan.
b. The Mission for Integrated Development of Horticulture was launched during the 12th Five Year Plan.
c. National Food Security Mission was launched in 2009-10.
Which of the above statements is/are incorrect?
1. All the three are incorrect
2. Only b
3. Only c
4. Only a
Answer: 3
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Source: PIB
INFLATION
1. Context
At 2.1% year-on-year, India’s consumer price index inflation in June was below the 2.7% of the United States and 3.6% of the United Kingdom. That gap was wider in food, with the annual price increases at 3% for the US, 4.5% for the UK and minus 1.1% for India
2. What is Inflation?
- It is the rise in prices of goods and services within a particular economy wherein consumers' purchasing power decreases, and the value of the cash holdings erodes.
- In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.
- Some causes that lead to inflation are demand increases, reduction in supply, demand-supply gap, excess circulation of money, increase in input costs, devaluation of the currency, and rise in wages, among others.
3. How is Food Inflation measured in India?
Food inflation in India is measured using various indices and indicators. The primary indices used to measure food inflation in India include the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). Both indices provide insights into the overall price movements of goods and services, including food items, but they differ in terms of their coverage and methodology.
Consumer Price Index (CPI)
- The CPI is a key indicator used by the Government of India and the Reserve Bank of India (RBI) to monitor inflation, including food inflation.
- The CPI measures the average change over time in the prices paid by urban and rural consumers for a basket of goods and services, including food items, housing, clothing, transportation, and more.
- Within the CPI, food and beverages form a significant component, and food inflation is specifically derived from the changes in food prices within the CPI basket.
- The CPI is released monthly by the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation.
Wholesale Price Index (WPI)
- The WPI is another important index that tracks price changes at the wholesale level for a selected group of commodities, including food products, manufactured goods, fuel, and more.
- The WPI measures price changes from the perspective of producers and wholesalers, providing insights into inflationary pressures in the production and distribution stages.
- Food articles, such as cereals, pulses, vegetables, fruits, and edible oils, are included in the WPI basket for monitoring food inflation.
- The WPI is released weekly by the Office of Economic Adviser under the Ministry of Commerce and Industry.
In addition to these indices, other indicators such as the Food Sub-Index within the CPI and specific price indices for essential food items (like vegetables, pulses, and cereals) are also used to gauge food inflation more accurately. The RBI closely monitors food inflation trends as part of its monetary policy framework to make informed decisions regarding interest rates and economic stability. Overall, the combination of CPI, WPI, and specific food-related indices provides a comprehensive assessment of food inflation in India.
4. Headline and Core Inflation
Inflation is a key economic indicator that measures the rate at which prices of goods and services rise over time. In India, two important measures of inflation are headline inflation and core inflation.
- Headline Inflation: Headline inflation refers to the overall rate of inflation in an economy, taking into account the price changes across all goods and services included in the consumer basket. It reflects the broad-based movement in prices, including food, fuel, housing, transportation, and other essential and non-essential items. Headline inflation is typically measured using indices such as the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). Fluctuations in headline inflation can be influenced by various factors, including changes in global commodity prices, government policies, supply chain disruptions, and demand-side pressures.
- Core Inflation: Core inflation, on the other hand, excludes volatile items such as food and energy from the basket of goods used to calculate inflation. By excluding these volatile components, core inflation provides a more stable measure of underlying inflationary trends in the economy. Core inflation is often considered a better gauge of long-term inflationary pressures and helps policymakers in making informed decisions regarding monetary policy. The Reserve Bank of India (RBI), for example, closely monitors core inflation to assess the underlying inflationary trends and formulate appropriate monetary policy responses.
Understanding the distinction between headline and core inflation is essential for policymakers, businesses, and consumers alike. While headline inflation provides a comprehensive view of overall price movements, core inflation offers insights into the underlying inflationary pressures, helping to distinguish between temporary fluctuations and sustained inflation trends. By closely monitoring both measures of inflation, policymakers can effectively manage inflationary risks and maintain price stability, contributing to sustainable economic growth and stability.
5. Monetary Policy Committee (MPC)
The Monetary Policy Committee (MPC) is a crucial institutional framework established by the Reserve Bank of India (RBI) to formulate and implement monetary policy decisions in India.
Role
- Formulating Monetary Policy: The primary role of the MPC is to formulate and implement monetary policy in India. This includes setting the key policy interest rates, such as the repo rate, reverse repo rate, and marginal standing facility (MSF) rate, to achieve the objectives of price stability and economic growth.
- Targeting Inflation: The MPC's main objective is to maintain price stability, which is primarily achieved by targeting a specific inflation rate. In India, the RBI has adopted a flexible inflation targeting framework, where the MPC aims to keep the Consumer Price Index (CPI) inflation within a specified target range over the medium term. Currently, the inflation target is set at 4% with a tolerance band of +/- 2%.
- Evaluating Economic Conditions: The MPC assesses various economic indicators, such as GDP growth, inflation expectations, fiscal policy measures, global economic developments, and financial market conditions, to make informed decisions about monetary policy.
- Communication: The MPC communicates its monetary policy decisions, rationale, and outlook for the economy through periodic press releases, statements, and the publication of meeting minutes. This transparency enhances predictability and credibility in monetary policy.
Composition
- Members: The MPC consists of six members, including three members nominated by the Government of India and three members from the Reserve Bank of India. The Governor of the RBI serves as the ex-officio Chairperson of the MPC.
- Appointment: The members of the MPC are appointed by the Central Government based on their expertise and experience in economics, banking, finance, or related fields. The RBI Governor and Deputy Governor (in charge of monetary policy) are automatic members of the MPC.
- Voting Rights: Each member of the MPC, including the RBI Governor, has one vote in the decision-making process. Decisions are made by a majority vote, with the Governor having the casting vote in case of a tie.
- Terms: Members of the MPC serve fixed terms, typically for four years, with eligibility for reappointment. This ensures continuity and stability in monetary policy formulation.
6. The Way Forward
By implementing the measures and fostering collaborative efforts among policymakers, regulators, and stakeholders, India can effectively manage inflationary pressures, maintain price stability, and promote sustainable economic growth and development.
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For Prelims: Inflation, MPC, CPI, WPI, food Inflation, RBI, Headline inflation, Core inflation For Mains:
1. Explain the concept of inflation and its impact on an economy. Discuss the various causes of inflation and the measures that can be taken to control it, with specific reference to India. (250 Words)
2. What are the challenges and opportunities associated with managing inflation in India? Evaluate the effectiveness of recent policy measures in addressing inflationary pressures and maintaining price stability. Suggest strategies for sustainable economic growth while managing inflation risks. (250 Words)
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Previous Year Questions
1. Consider the following statements: (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
2. Concerning the Indian economy, consider the following: (UPSC 2015)
Which of the above is/are component(s) of Monetary Policy? (a) 1 only (b) 2, 3 and 4 (c) 1 and 2 (d) 1, 3 and 4
3. An increase in Bank Rate generally indicates: (UPSC 2013) (a) Market rate of interest is likely to fall.
(b) Central bank is no longer making loans to commercial banks.
(c) Central bank is following an easy money policy.
(d) Central bank is following a tight money policy.
4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.
Select the correct answer using the code given below: A. 1 only B. 1 and 2 only C. 3 only D. 2 and 3 only 5. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
6. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
7. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
8. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only B. 2 only C. 2 and 3 only D. 1, 2 and 3
Answers: 1-C, 2-C, 3-D, 4-A, 5-D, 6-B, 6-C, 7-B
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Source: The Indian Express
BRICS
1. Context
The recent 2025 BRICS summit, held in Brazil, did not appear dramatic on the surface. There were no loud declarations or confrontations. However, the agenda was quietly ambitious, and the message it sent was unmistakable – the West no longer has a monopoly on how the world should work
2. BRICS
- The BRICS alliance, composed of Brazil, Russia, India, China, and South Africa, has evolved from an economic consortium to a multifaceted geopolitical force.
- Emerging economies with considerable potential, these countries together form a collective that challenges traditional power dynamics and fosters cooperation in an increasingly interconnected world.
Formation and Evolution
- BRICS was officially established in 2006, with the objective of fostering economic growth, development, and cooperation among member nations.
- Over time, it has transformed into a platform for addressing a broader spectrum of global challenges, encompassing political, security, and social concerns alongside economic issues.
3.Push back against liberal international order
- A core principle in international relations is the absence of a central global authority. While nations may come to agreements on certain rules, there’s no global body with the power to universally enforce them. Scholars often refer to this as an “anarchic system”—not because it's chaotic, but because there is no supreme governing structure overseeing international conduct.
- States primarily pursue their national interests. Although collaboration between countries is possible, it tends to be unstable. Power dynamics are crucial—stronger nations usually assert their will, while weaker ones often have limited choices, echoing themes from the Melian Dialogue in Thucydides’ History of the Peloponnesian War. Global power is unevenly shared, and those who hold more influence often shape international norms to benefit themselves.
- Following World War II, the Western powers—led by the United States—established the liberal international order. This system, built through institutions like the IMF, World Bank, and WTO, mirrored Western ideals such as market liberalism, democratic governance, and the central role of the US dollar in global finance.
- This framework functioned effectively for the Western world for decades. However, in the current century, many countries are beginning to question the relevance of a system rooted in the post-1945 era.
- While rising nations like China, India, Brazil, and South Africa once accepted this order, they are now challenging it due to shifting economic power and the emergence of a multipolar world. The BRICS group has become the most prominent symbol of this growing resistance
4. De-dollarisation and global power shift
- One of the strongest themes to emerge from the BRICS summit in Brazil was the push toward de-dollarisation. While the term may sound technical, its implications are heavily political.
- This concept has been gaining momentum over the years, but recent developments—particularly the use of financial systems as tools for sanctions—have made it more urgent. Currently, global trade and finance rely heavily on the US dollar.
- For example, India typically pays in dollars when importing oil from Russia, Brazil often borrows in dollars, and China's overseas investments usually pass through dollar-based networks like SWIFT. This entrenched dependence grants the US both economic power and political influence.
- During the Brazil summit, BRICS nations revisited the proposal of creating a common currency—not as an immediate goal, but as a statement of direction. In the short term, they are encouraging trade using their own national currencies.
- Russia and China now conduct the majority of their bilateral trade in roubles and yuan. India has started settling some payments with countries like Iran and Sri Lanka in rupees, and has begun conducting oil transactions with the UAE in rupees and dirhams.
- The New Development Bank, established by BRICS, is also moving toward issuing loans in local currencies to minimize reliance on the dollar. This shift is not just about cutting transaction fees—it's about gaining independence from a financial system that many nations in the Global South feel is skewed against their interests.
- The path toward de-dollarisation will be challenging. The US dollar continues to dominate global finance due to its stability, global trust, and the strength of America’s financial infrastructure.
- However, the repeated calls by BRICS for alternatives reflect a growing dissatisfaction. While this transition won’t happen quickly, the direction is clear: reduce dependency on a system largely controlled by Washington
5. South-South Cooperation
- BRICS positions itself as a collective voice for nations that were excluded from shaping the global order established after World War II. It portrays itself as an advocate for the Global South, promoting equitable development, more inclusive trade frameworks, and the restructuring of major international institutions.
- Unlike the IMF or World Bank, the New Development Bank (NDB) provides financing without the usual political conditions. BRICS members are also collaborating on joint ventures in sectors like infrastructure and renewable energy.
- There have also been discussions about setting up a BRICS-led credit rating agency to reduce reliance on dominant Western agencies. The group consistently calls for changes to institutions such as the UN Security Council and the World Bank, aiming to amplify the influence of emerging economies.
- Within BRICS, countries like Brazil, India, and South Africa act as intermediaries. As democratic nations with expanding economies, they are often seen as relatable leaders among developing states.
- China contributes significant financial resources and geopolitical clout, while Russia, increasingly distanced from Western alliances, is seeking closer ties with non-Western countries.
- This drive to create new systems and mechanisms stems from a common dissatisfaction with a global order that many feel does not account for the realities and needs of the developing world. BRICS is not only advocating for policy reforms but also striving to reshape global perceptions of development and leadership
6. Geopolitical Relevance
- Counterbalance to Western Influence: BRICS serves as a counterweight to the dominance of Western powers. The coalition's diverse representation from different regions empowers non-Western countries to assert their interests on the global stage.
- Global South Unity: BRICS resonates with many countries in the Global South that seek a voice in international affairs. It presents an alternative to the traditional Western-dominated institutions, offering a platform for collaboration and advocacy.
7. Economic Cooperation and Growth
- Economic Powerhouses: Collectively, BRICS nations account for a substantial portion of the world's population and GDP. Their economic potential has led to discussions on reforming global financial institutions to better reflect contemporary realities.
- Intra-BRICS Trade: Trade among BRICS members has grown significantly. Initiatives like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) bolster financial cooperation and stability within the group.
8. Geopolitical Challenges and Opportunities
- Diverse Interests: As BRICS expands and diversifies, differing geopolitical interests may arise, potentially leading to internal divisions. However, this diversity also presents opportunities for creative solutions to global challenges.
- Diplomatic Outreach: BRICS engages with other regional and international organizations, strengthening its influence. The expansion of the group's membership underscores its growing geopolitical relevance.
9. India's Role and Beyond
- India's Diplomacy: India has played an active role within BRICS, emphasizing issues such as counter-terrorism, cybersecurity, and climate change. Its strategic partnerships contribute to the coalition's expansion and its influence in shaping its direction.
- Global Impact: BRICS expansion into a broader coalition incorporating West Asian countries like Egypt, Iran, Saudi Arabia, and the UAE signifies a deliberate shift towards greater global political relevance. This expansion highlights BRICS' adaptability to changing geopolitical dynamics.
10. BRICS New Members Dynamics
- Unanimous Decisions: BRICS decisions require unanimous agreement, reflecting collective decision-making.
- Geopolitical Partnerships: While Russia and China confront West-related challenges, Brazil, South Africa, and India maintain significant partnerships with the US and Europe.
- China's Expansion Drive: China spearheads BRICS expansion, prioritizing membership growth.
- Inclusion of Iran: China and Russia's influence is seen in Iran's inclusion, showcasing their collaboration.
- Mediation Efforts: China's role reconciles rivals Saudi Arabia and Iran within the alliance.
- Saudi Arabia's Shift: Saudi Arabia's entry signifies a move towards an independent foreign policy, diverging from the US alliance.
- Global Significance for Russia and Iran: BRICS membership elevates Russia and Iran's global partnerships, challenging Western dominance.
11. Implications for India
- Strategic Role: India played a lead role in drafting BRICS membership criteria, demonstrating its strategic influence within the alliance.
- Expanded Influence: The inclusion of new members who are strategic partners of India enhances its influence within BRICS.
- Geopolitical Balancing: BRICS expansion allows India to navigate between its ties with the West and its position within this non-Western coalition.
- Global Advocacy: With more representation and diverse members, India can push for UN reforms and increased Global South representation.
- Diplomatic Challenges: India might need to exert more effort to assert its influence in an alliance with a wider range of members and potential competing interests.
- Economic Opportunities: Collaboration with economically strong members like China can lead to enhanced trade and investment prospects for India.
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For Prelims: BRICS, Global South Unity, Western Influence, New Development Bank (NDB), and Contingent Reserve Arrangement (CRA).
For Mains: 1. Discuss the Implications of BRICS' Expansion for India's Geopolitical Positioning and Influence within the Alliance.
2. Analyze India's Role in Shaping BRICS' Membership Criteria and Its Strategic Significance in the Expanded Coalition.
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Previous year Questions1. With reference to a grouping of countries known as BRICS, consider the following statements: (UPSC 2014)
1. The First Summit of BRICS was held in Rio de Janeiro in 2009.
2. South Africa was the last to join the BRICS grouping.
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. With reference to BRIC countries, consider the following statements: (UPSC 2010)
1. At present, China's GDP is more than the combined GDP of all three other countries.
2. China's population is more than the combined population of any two other countries.
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
3. The 'Fortaleza Declaration', recently in the news, is related to the affairs of (UPSC 2015)
A. ASEAN
B. BRICS
C. OECD
D. WTO
Answer: B
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Source: The Hindu
