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DAILY CURRENT AFFAIRS, 03 SEPTEMBER 2025

GOVERNOR'S ASSENT TO STATE LAWS 

 
 
 
 
1. Context
 
Three of the five judges on the Presidential Reference Bench on Tuesday orally observed along with the States of Tamil Nadu and West Bengal that Governors cannot sit endlessly over Bills placed before them for assent.
 

2. Conflict Over Governors' Assent to Bills

  • In the ongoing conflict between states governed by opposition parties and their Governors appointed by the President on the Centre's advice, a recent development has emerged.
  • Over the past year, several states, including Kerala, Tamil Nadu, Telangana, and Punjab, have taken legal recourse by approaching the Supreme Court regarding Governors withholding assent to Bills for extended periods.
  • This situation underscores a larger issue concerning the balance of powers and the functioning of state legislatures within India's federal structure.

3. Governor's Role in Lawmaking

  • Article 200 of the Constitution delineates the role of the Governor in the legislative process. After a Bill has been passed by the state legislature, it must be presented to the Governor. Subsequently, the Governor holds three options: to give assent to the Bill, withhold assent, or reserve the Bill for consideration by the President.
  • In cases where assent is withheld, Article 200 allows the Governor to return the Bill to the legislature, accompanied by a message requesting reconsideration of the Bill or specific provisions. If the Bill is passed again by the legislature, with or without amendments, and presented to the Governor for assent, the Governor is obligated to grant assent.
  • However, the absence of a stipulated timeline in the article has led to ambiguity and disputes. Governors have frequently withheld assent to Bills for prolonged periods, leaving them and the state legislature in a state of uncertainty. This lack of clarity has prompted states to seek intervention from the Supreme Court to resolve the issue.
 

4. President's Role in the Legislative Process

  • Article 201 of the Constitution outlines the role of the President in the legislative process, particularly when a Bill is sent for consideration after being passed by a state legislature.
  • If a Bill is sent to the President for consideration, the President can choose to either give assent or withhold assent, as specified in Article 201.
  • In cases where assent is withheld, the President requests the Governor to return the Bill to the state legislature for reconsideration.
  • The state government then has a period of six months to reconsider the Bill; failing to do so results in the Bill lapsing.
  • If the Bill is reconsidered and passed once again by the state legislature, it must be sent back to the President for assessment.
  • Unlike the Governor, the President is not obliged to give assent when reviewing the reconsidered Bill.
  • This scenario represents the only instance where state governments do not have the final say in their own lawmaking process, as the decision ultimately rests with the President.

 

5. Issues Raised by the Kerala Government

The Kerala government has raised significant concerns regarding the actions of Governor Khan and President Murmu, terming them as "manifestly arbitrary" actions that violate fundamental rights and constitutional provisions.

  • The petition filed by the Kerala government argues that the actions of Governor Khan and President Murmu are "manifestly arbitrary," indicating unreasonable and irrational decision-making. This characterization points to a violation of the right to equality, as such actions lack justification and fairness.
  • The Kerala government's petition asserts that the decision to keep Bills pending without making a prompt decision violates Article 200 of the Constitution. The provision mandates that the Governor should decide on Bills "as soon as possible" after presentation. By not adhering to this requirement, the Governor's actions are seen as undermining the functioning of the state legislature and rendering it ineffective.
  • The petition further argues that the prolonged withholding of assent by the Governor has subverted the functioning of the state legislature, rendering it ineffective and serving no practical purpose. This challenges the essence of legislative processes and the role of the Governor in the lawmaking procedure.
  • Regarding President Murmu's decision to withhold assent to four Bills without providing reasons, the Kerala government contends that this action violates Article 201 of the Constitution. Article 201 stipulates that the President should return a Bill with recommended amendments if the assent is withheld, emphasizing the need for transparency and reasons for such decisions.

 

6. Governors' Actions and State Governments' Responses

Several states have encountered challenges related to Governors' actions in withholding assent to Bills and other matters, leading to disputes and legal interventions.

  • Tamil Nadu's Experience: In November last year, the Supreme Court expressed concern over Tamil Nadu Governor R N Ravi withholding assent to 10 Bills enacted by the state legislature, some pending since January 2020. This action was criticized for its prolonged nature and lack of reasons provided. Additionally, disputes between Tamil Nadu's DMK government and Governor Ravi have been ongoing, including disagreements over ministerial appointments.
  • Telangana's Grievance: Similarly, the Telangana government approached the Supreme Court in March 2023 due to former Governor Tamilisai Soundarajan's refusal to give assent to 10 Bills passed by the legislative assembly. Although Soundarajan eventually gave her assent, the delay and disputes highlighted tensions between the state government and the Governor's office.
  • Legal Perspectives and Court Interventions: The issue of elected governments being subject to Governors' decisions, particularly in opposition-led states like Telangana. Despite legal arguments and requests for court directions, the Supreme Court refrained from passing detailed orders, emphasizing the constitutional intent behind timely decision-making as per Article 200.
  • Political Dynamics and Future Implications: It's notable that Soundarajan, previously involved in assent disputes, is now a BJP candidate for the Lok Sabha elections. This political context adds complexity to the relationship between state governments and Governors, highlighting the ongoing challenges and potential implications for governance and constitutional principles.

7. Governor's Authority in Withholding Assent to Bills

  • In November 2023, the Supreme Court deliberated on the issue of whether a Governor could withhold assent to Bills passed by the state legislature if they believed the session where the Bills were passed was convened illegally.
  • This matter arose from Punjab, where Governor Banwarilal Purohit refused to give assent to four Bills passed by the Punjab Assembly, citing legal advice indicating a breach of law and procedure in their passage. Despite this, the Bills were not returned to the Assembly for reconsideration.
  • The Supreme Court ruled that Governors do not possess the authority to obstruct the regular process of lawmaking by state legislatures.
  • It clarified that the phrase "as soon as possible" in Article 200 implies that Governors cannot indefinitely delay action on Bills without any justification.
  • The court emphasized that if a Governor chooses to withhold assent, they must adhere to the procedure outlined in the first proviso of Article 200, which involves returning the Bill to the state legislature for reconsideration.
  • While the court outlined the responsibilities of Governors in the lawmaking process, it refrained from specifying a definitive timeline for Governors to make decisions on Bills.
  • This omission has prompted the Kerala government to approach the Supreme Court seeking clarification on the issue.
 

8. The Way Forward

Addressing the challenges related to the Governor's assent requires a multi-dimensional approach that balances constitutional mandates, legal clarity, political responsibility, and public participation. Collaborative efforts among stakeholders and judicious use of constitutional mechanisms are key to ensuring robust and accountable governance in the legislative domain.

 

For Prelims: Governor, Center-state relations, Article 200

For Mains: 
1. In the context of recent disputes, examine the relationship between Governors appointed by the Centre and state governments led by opposition parties. How can this relationship be strengthened to ensure smooth functioning of the federal structure? (250 Words)
2. Explain the roles of the Governor and the President in the legislative process as outlined in the Constitution of India, focusing on their powers related to assenting to Bills passed by state legislatures. (250 Words)
3. Discuss Ethical Considerations and Constitutional Provisions Regarding Governor Running for Elections.  (250 Words)
 
 
Previous Year Questions
 
1.  With reference to the Legislative Assembly of a State in India, consider the following statements: ( UPSC 2019)
1. The Governor makes a customary address to Members of the House at the commencement of the first session of the year.
2. When a State Legislature does not have a rule on a particular matter, it follows the Lok Sabha rule on that matter.

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 2018)

1. No criminal proceedings shall be instituted against the Governor of a State in any court during his term of office.
2. The emoluments and allowances of the Governor of a State shall not be diminished during his term of office.

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

 
3.Which of the following are the discretionary powers given to the Governor of a State? (2014)
1. Sending a report to the President of India for imposing the President’s rule
Appointing the Ministers
2. Reserving certain bills passed by the State Legislature for consideration of the President of India
3. Making the rules to conduct the business of the State Government

Select the correct answer using the code given below.

 A. 1 and 2 only          B. 1 and 3 only                   C.  2, 3 and 4 only        D. 1, 2, 3 and 4
 
 
4. Which one of the following suggested that the Governor should be an eminent person from outside the State and should be a detached figure without intense political links or should not have taken part in politics in the recent past? (UPSC CSE 2019)
A.First Administrative Reforms Commission (1966)
B.Rajamannar Committee (1969)
C.Sarkaria Commission (1983)
D.National Commission to Review the Working of the Constitution (2000)
 
Answers: 1-C, 2-C, 3-B, 4-C
Source: The Indian Express
 
 

TELANGANA'S KALESHWARAM PROJECT

 
 
 
 
1. Context
 
The Telangana Government has given its consent to the Central Bureau of Investigation (CBI) to probe allegations of irregularities, embezzlement of public funds and corrupt practices in the construction of Medigadda, Annaram and Sundilla barrages of Kaleshwaram project.
 
2. Kaleshwaram Lift Irrigation Project (KLIP)
 
  • The Kaleshwaram Lift Irrigation Project (KLIP), situated on the Godavari River at Kaleshwaram in Bhupalpally district, Telangana, is a massive multi-purpose irrigation initiative.
  • Recognised as the largest multi-stage irrigation project globally, it is located near the confluence of the Pranahita and Godavari rivers.
  • The system spans a canal network exceeding 1,800 km. Conceived under the leadership of K. Chandrasekhar Rao’s BRS government, the project seeks to provide irrigation to more than 16 lakh acres across 13 districts of Telangana, while also stabilising the existing ayacut.
  • It is designed to store and distribute 240 thousand million cubic feet (tmc ft) of Godavari water, with planned allocations of 169 tmc ft for irrigation, 30 tmc ft for Hyderabad’s drinking water needs, 16 tmc ft for industrial and miscellaneous purposes, and 10 tmc ft for drinking water supply to villages along the route
  • The government has constructed barrages across Godavari at Ramadugu, Medigadda, Sundilla and Annaram. The water is stored there to cater to drinking water and irrigation needs.
  • The project was conceived at a cost of ₹71,000 crore initially. The cost escalated to close to over ₹1 lakh crore over a period of time. Finishing works is likely to take few more thousands of crores.
 
3. Controversy around it
 
 
  • The Kaleshwaram project has faced controversies from its inception, primarily due to the relocation of its site from Tummidihatti to Medigadda, despite reportedly securing hydrology clearance for the original location.
  • The official justification for the shift was insufficient water availability at Tummidihatti; however, a later inquiry found that the Central Water Commission had assessed the site’s water availability at over 200 tmc ft.
  • One of the major criticisms during construction was that the barrages were built on permeable foundations instead of robust ones capable of withstanding large volumes of water.
  • The relocation decision also drew flak because nearly 30% of the works under the Pranahita Chevella Sujala Sravanti (PCSS) project—initiated in the erstwhile united Andhra Pradesh in 2008 at Tummidihatti, with costs exceeding ₹11,000 crore—had already been completed.
  • Another allegation against the BRS government was that the project was approved solely by Chief Minister K. Chandrasekhar Rao, without securing the State Cabinet’s consent.
  • Structural flaws in the Kaleshwaram project became evident during the BRS tenure when the piers of the Sundilla barrage sank, supporting claims about the use of permeable foundations. Additionally, two other barrages—Annaram and Sundilla—developed cracks after the government stored large volumes of water against technical recommendations
 
4. River and Irrigation regarding the Kaleshwaram Project
 
  • Primary River: Godavari River – KLIP is located on the Godavari at Medigadda in Bhupalpally district, Telangana.

  • Major Tributary: Pranahita River – The confluence of the Pranahita (formed by Wardha and Wainganga rivers) and the Godavari lies upstream of the project site.

  • Upstream Linkages:

    • Wardha River (Maharashtra)

    • Wainganga River (Madhya Pradesh & Maharashtra)

  • Downstream Impact: KLIP lifts water from the Godavari and channels it through an extensive canal network to various parts of Telangana.

 

Irrigation with the Kaleshwaram Project

  • Irrigation Potential Created: Over 16 lakh acres across 13 districts of Telangana.

  • Purpose:

    • Provide assured irrigation to new areas.

    • Stabilise existing ayacut (land already under irrigation) in command areas of earlier projects.

  • Water Allocation Plan:

    • 169 tmc ft – Irrigation

    • 30 tmc ft – Drinking water for Hyderabad

    • 10 tmc ft – Drinking water for villages en route

    • 16 tmc ft – Industrial and miscellaneous purposes

  • Canal Network: More than 1,800 km, carrying water lifted in multiple stages from the Godavari.

 
 
5. Way Forward
 
Forming a judicial commission to investigate the irregularities in the Kaleshwaram project was one of the Congress party’s poll commitments. Acting on this, Chief Minister A. Revanth Reddy appointed a single-member judicial panel, led by Justice Pinaki Chandra Ghose, to conduct a comprehensive probe. Over the course of 15 months, Justice Ghose examined more than 110 witnesses, including former CM K. Chandrasekhar Rao, ex-Irrigation Minister T. Harish Rao, and former Finance Minister Eatala Rajender of the BRS government, the latter being questioned particularly for releasing funds with what was described as a “negligent and indifferent attitude.” The commission submitted its findings on July 31, after which the Telangana government decided to hold a debate on the Kaleshwaram project in the legislature during the monsoon session. The administration intends to present the lapses in detail to the public and seek inputs from all political parties, including the BRS, on the project’s future course
 
 
 
Previous Year Questions
 
1.Consider the following statements regarding the Kaleshwaram Lift Irrigation Project. (TSPSC Group 1)
 
1. It was originally called the Pranahita-Chevella project.
 
2. It is a multi-purpose irrigation project on the Krishna river.
 
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)
Source: The Hindu
 
 

UNLAWFUL ACTIVITIES (PREVENTION) ACT (UAPA)

 
 
 
1. Context
 
 
The Delhi High Court on Monday dismissed the bail pleas of 10 accused, including former JNU students Sharjeel Imam and Umar Khalid, in the 2020 Delhi riots larger conspiracy case under the Unlawful Activities (Prevention) Act (UAPA)
 
 
2. About Unlawful Activities (Prevention) Act (UAPA)
 

The Unlawful Activities (Prevention) Act (UAPA) is an Indian law that was enacted in 1967 to effectively prevent unlawful activities that pose a threat to the sovereignty and integrity of India.

Key highlights of the UAPA

  • Objective: The primary objective of the UAPA is to provide law enforcement agencies with effective tools to combat terrorism and other activities that threaten the security of the nation.
  • Definition of Unlawful Activities: The act defines unlawful activities to include actions that intend to or support the cession of a part of the territory of India or disrupt the sovereignty and integrity of the country.
  • Powers of Designation: The government has the authority to designate an organization as a terrorist organization if it believes that such an organization is involved in terrorism. This designation has significant legal consequences, including the freezing of assets.
  • Powers of Arrest and Detention: The UAPA provides law enforcement agencies with powers of arrest and detention to prevent individuals from engaging in unlawful activities. The act allows for preventive detention to curb potential threats before they materialise.
  • Banning of Terrorist Organizations: The government can proscribe organizations as terrorist organizations, making their activities illegal. This includes banning these organisations, freezing their assets, and taking other measures to curb their operations.
  • Admissibility of Confessions: The UAPA allows for confessions made to police officers to be admissible in court, subject to certain safeguards. This provision has been a point of contention, with concerns about potential misuse and coercion.
  • Designation of Individuals as Terrorists: In addition to organizations, the UAPA allows the government to designate individuals as terrorists. This designation carries legal consequences, including restrictions on travel and freezing of assets.
  • Amendments and Stringency: Over the years, the UAPA has undergone several amendments to strengthen its provisions and make it more effective in dealing with emerging threats. However, these amendments have also been criticized for potential violations of civil liberties.
  • International Cooperation: The UAPA allows for cooperation with foreign countries in matters related to the prevention of unlawful activities. This includes extradition of individuals involved in such activities.
 

3. Unlawful Activities (Prevention) Act (UAPA) and Human Rights

 

The Unlawful Activities (Prevention) Act (UAPA) and human rights lie in the impact the act can have on various fundamental rights guaranteed by the Constitution of India and international human rights standards.

The key points connecting the UAPA and human rights:

  • The UAPA allows for preventive detention, which means individuals can be detained without formal charges based on suspicions of involvement in unlawful activities. This raises concerns about the right to liberty, as individuals may be deprived of their freedom without the presumption of innocence until proven guilty.
  • The admissibility of confessions made to police officers under the UAPA raises issues related to the right against self-incrimination. There is a risk that such confessions might be obtained under duress or coercion, compromising the fairness of legal proceedings.
  • Designating individuals as terrorists and proscribing organizations without due process may impinge on the right to a fair trial. This includes the right to be informed of charges, the right to legal representation, and the right to present a defense.
  • The UAPA provides authorities with the power to proscribe organizations as terrorist organizations, limiting their activities. Critics argue that this may infringe upon the right to freedom of association, particularly when such designations are made without sufficient evidence or proper legal procedures.
  • The potential for misuse of the UAPA to target individuals or organizations critical of the government raises concerns about freedom of expression. If the act is used to suppress dissent or stifle legitimate political or social activities, it can undermine this fundamental right.
  • The UAPA grants authorities the power to intercept communications and conduct surveillance on individuals suspected of engaging in unlawful activities. This raises concerns about the right to privacy, as individuals may be subjected to intrusive surveillance without adequate safeguards.
  • Human rights standards require that any restrictions on rights, such as those imposed by the UAPA, must be proportionate and necessary for achieving a legitimate aim. Critics argue that the broad scope of the UAPA may lead to disproportionate measures that unduly restrict individual rights.
  • The UAPA's compatibility with international human rights standards, including the International Covenant on Civil and Political Rights (ICCPR), is a critical point of consideration. Ensuring that the act aligns with these standards is essential to upholding human rights principles.
 

4. Unlawful Activities (Prevention) Act (UAPA) and Article 22 of the Constitution

 

The Unlawful Activities (Prevention) Act (UAPA) and Article 22 of the Indian Constitution lie in how the UAPA's provisions for arrest and detention intersect with the constitutional safeguards provided under Article 22. 

  • Article 22 provides certain protections to individuals who are arrested or detained. It outlines the rights of arrested individuals, emphasizing safeguards to prevent arbitrary or unlawful detention.
  • Article 22(1) states that every person who is arrested and detained shall be informed, as soon as may be, of the grounds for such arrest. This provision ensures that individuals are aware of the reasons behind their arrest, preventing arbitrary or secret detentions.
  • Article 22(1) also guarantees the right of an arrested person to consult and be defended by a legal practitioner of their choice. This ensures that individuals have access to legal assistance during the legal process, contributing to a fair and just legal system.
  • The UAPA includes provisions for preventive detention, allowing authorities to detain individuals to prevent them from committing certain offences. However, Article 22(4) allows preventive detention only under specific circumstances, and certain safeguards must be followed, such as providing the detenu with the grounds for detention and an opportunity to make a representation against the detention.
  • Article 22(4) further mandates that a person detained under a law providing for preventive detention must be afforded the earliest opportunity to make a representation against the detention. Additionally, the case of every person detained is required to be placed before an advisory board within three months.
  • The UAPA allows for confessions made to police officers to be admissible in court, subject to certain safeguards. However, this provision has been a point of concern concerning Article 22, as confessions obtained under duress or coercion may violate the right against self-incrimination.
  • Article 22(2) ensures the right to be brought before the nearest magistrate within 24 hours of arrest, excluding the time necessary for the journey. This provision aims to prevent prolonged detention without judicial oversight and contributes to the right to a speedy trial.
 
 
For Prelims: Unlawful Activities (Prevention) Act, Article 22, Terrorism
For Mains: 
1. Discuss the key provisions of the Unlawful Activities (Prevention) Act (UAPA) and analyze how they may impact fundamental human rights. Elaborate on the balance between national security concerns and the protection of individual rights. (250 Words)

 

Previous Year Questions

1. Under Article 22 of the Constitution of India, with the exception of certain provisions stated there in, what is the maximum period for detention of a person under preventive detention? (MPSC 2014)

A. 2 months       B. 3 months         C. 4 months           D. 6 months

 

2. Article 22 of the Constitution ensures (CTET 2016)

A. Right not to be ill-treated during arrest or while in custody

B. Right to Constitutional Remedies

C. Right against Exploitation

D. Right to Education

Answers: 1-B, 2-A

Mains

1. Indian government has recently strengthed the anti-terrorism laws by amending the Unlawful Activities(Prevention) Act, (UAPA), 1967 and the NIA Act. Analyze the changes in the context of prevailing security environment while discussing scope and reasons for opposing the UAPA by human rights organizations. (UPSC 2019)

Source: The Indian Express

 

KUKI-ZOMI TRIBE

 
 
 
1. Context
 
 
Union Home Ministry officials are all set to meet representatives of Kuki-Zo insurgent groups on Wednesday to finalise the extension of the suspension of operations (SoO) agreement that has been in limbo since February 29, 2024 when the Manipur government pulled out of the tripartite pact, a government source told 
 
 
2. About Kuki and Zomi tribes
 

The Kuki-Zomi people are a diverse group of ethnicities inhabiting the mountainous regions of Northeast India, Myanmar, and Bangladesh. They share a common ancestry and cultural heritage, and their name reflects this shared identity: "Kuki" is a more general term encompassing various sub-tribes, while "Zomi" is a relatively recent term adopted by some Kuki communities to emphasize their distinct identity and cultural heritage.

  •  The exact origins of the Kuki-Zomi people remain unclear, but linguistic evidence suggests they migrated from Southeast Asia centuries ago. Today, they are found primarily in the Indian states of Manipur, Mizoram, Assam, Nagaland, and Tripura, as well as in Chin State, Myanmar, and the Chittagong Hill Tracts of Bangladesh.
  •  The Kuki-Zomi people comprise numerous sub-tribes, each with its own distinct dialect and cultural practices. Some of the major sub-tribes include the Hmar, Thadou, Paite, Gangte, Vaiphei, Zou, Aimol, and Anal. These sub-tribes speak various Kuki-Chin languages, which belong to the Tibeto-Burman language family.
  • The Kuki-Zomi people have a rich and vibrant culture characterized by strong communal bonds, traditional music and dance, and colorful handicrafts. Their traditional attire is often adorned with intricate beadwork and embroidery, reflecting their artistic skills and cultural pride.
  •  The Kuki-Zomi people have faced various challenges throughout their history, including displacement, conflict, and marginalization. However, they have demonstrated remarkable resilience and adaptability, preserving their unique culture and traditions despite these hardships.
  • In recent years, the Kuki-Zomi people have made significant strides in education, entrepreneurship, and political representation. They are increasingly active in advocating for their rights and cultural identity, and their contributions to the social and economic development of the regions they inhabit are becoming increasingly recognized.
 

3. Delisting Proposal in Manipur

  • The representation calling for the potential removal of specific Kuki and Zomi tribes from the Scheduled Tribes (ST) list in Manipur stems from the ongoing ethnic conflict that has persisted for eight months.
  • This conflict, initiated on May 3, 2023, arose following an order from the Manipur High Court directing the State government to recommend the inclusion of Meiteis in the ST list to the Centre.
  • As the Centre now requests the State government to examine the representation for the delisting of Kuki and Zomi tribes, there is a risk of exacerbating existing tensions between the valley-based Meitei people and the hills-based Kuki-Zo (ST) people in the State.
  • One significant factor driving the Meiteis' demand for ST status is their inability to own land in the forested hill districts, where only STs are permitted to own land.
  • Notably, this marks the first instance where members of the Meitei community are advocating for their inclusion in the ST list by contending that specific Kuki and Zomi tribes should not be part of it.
  • This development may also have broader implications for the criteria used to designate groups as Scheduled Tribes, a framework that has remained unchanged since its introduction by the Lokur Commission in 1965.

Key Arguments in the Kuki-Zomi Delisting Proposal

  • In Mr. Thounaojam’s representation, objections have been raised against the inclusion of three specific entries in the Scheduled Tribes (ST) list of Manipur namely, “Any Mizo(Lushai) Tribes,” “Zou,” and “Any Kuki Tribes.”
  • The primary argument put forth for the exclusion of these entries is that they are not considered "indigenous" to the land of Manipur.
  • According to the representation, there is no historical mention of these specific tribes residing in Manipur in pre-Independence Censuses.
  • Furthermore, the representation contends that the vagueness surrounding the terms "Any Mizo (Lushai) Tribes" and "Any Kuki Tribes" in the ST list has purportedly facilitated illegal immigrants from Myanmar and Bangladesh in wrongfully obtaining benefits intended for Scheduled Tribes in India.
 
4. About Lokur Commission

The Lokur Commission, officially known as the Advisory Committee on the Revision of Lists of Scheduled Castes and Scheduled Tribes, played a significant role in shaping the landscape of tribal communities in India. Established in 1965 by the Government of India. Chaired by Justice N.N. Lokur, a former Chief Justice of India. Tasked with revising the lists of Scheduled Castes (SCs) and Scheduled Tribes (STs) in a rational and scientific manner.

Criteria for Scheduled Tribes:

  • The Commission established five key criteria for identifying a community as an ST:
    • Primitive Traits and Distinctive Culture
    • Geographical Isolation
    • Shyness of Contact with the Community at Large
    • Backwardness
    • Pre-dominantly Tribal Population

Impact on Tribal Communities

  • The Lokur Commission's recommendations led to the addition of several new communities to the ST list, granting them access to educational and economic benefits reserved for STs.
  • However, the criteria employed, particularly the emphasis on "primitive traits," have been criticized for being outdated, stereotypical, and potentially hindering social progress for tribal communities.

Criticisms and Debates

  • The Commission's classification of certain communities as "primitive" has been challenged for being derogatory and inaccurate.
  • The criteria used have been accused of being subjective and open to misinterpretation, leading to inconsistencies and exclusion of deserving communities.
  • Debates continue regarding the need for revising or even abolishing the existing criteria altogether, with calls for a more nuanced approach based on social, economic, and cultural factors.

Legacy

  • Despite the criticisms, the Lokur Commission's work remains influential in the administration of tribal affairs in India.
  • Its report and recommendations form the basis for the current ST list and continue to be referenced in discussions about tribal inclusion and development.
  • The Commission's legacy highlights the importance of ongoing discussions about the definition of "tribal" identity and the need for criteria that are fair, inclusive, and responsive to the evolving realities of tribal communities in India.
 
 
5. The National Commission for Backward Classes
 

The National Commission for Backward Classes (NCBC) stands as a crucial advocate for the rights and welfare of Other Backward Classes (OBCs) in India. Established in 1993 and elevated to constitutional status in 2018, the NCBC plays a multi-faceted role in ensuring social justice and equality for OBC communities. 

Mandate and Responsibilities

  • The NCBC probes cases of discrimination and denial of rights due to OBC status. It monitors the implementation of various government policies and schemes aimed at OBC development.
  • The Commission regularly assesses the social, educational, and economic advancement of OBCs. It provides recommendations to the government on policies and programs to bridge existing gaps and address emerging challenges.
  • Individuals from OBC communities can approach the NCBC with complaints related to violations of their rights or benefits. The Commission takes necessary action to address these grievances and ensure justice.
  •  The NCBC conducts research on the diverse OBC communities, analyzing their specific needs and vulnerabilities. It promotes awareness about OBC issues and advocates for their inclusive participation in various spheres of Indian society.

Key Achievements

  • The NCBC played a significant role in implementing the Right to Education Act (2009) and ensuring reservation quotas for OBC students in educational institutions.
  •  The Commission has been instrumental in promoting entrepreneurship and skill development programs among OBC communities, leading to greater economic participation and self-reliance.
  •  The NCBC has consistently pushed for legislation and policy changes that benefit OBCs, such as reservations in government jobs and promotions, access to healthcare, and land rights.

Challenges and Future Directions

  • OBCs are a diverse group with varying needs and levels of marginalization. The NCBC faces the challenge of addressing these internal disparities and ensuring inclusivity within its advocacy efforts.
  • The Commission often operates with limited resources, hindering its ability to effectively reach out to remote OBC communities and conduct comprehensive research.
  • Ensuring proper implementation of the NCBC's recommendations on the ground remains a crucial challenge. Stronger collaboration with state governments and local authorities is essential.

6. Examining Claims of Non-Indigeneity and Misuse

 
  • The claim that these communities were not residing in the land of Manipur at the time the first Constitution (Scheduled Tribes) list was published in 1950 is not accurate.
  • The original order listed three tribes for Manipur  "Any Kuki Tribe," "Any Lushai Tribe," and "Any Naga Tribe," encompassing respective sub-tribes. The argument lacks validity, as there is historical evidence to show the presence of these tribes in Manipur at the time.
  • Regarding the assertion that the inclusion of these tribes in the ST list has facilitated organized illegal immigration into Manipur, there is currently no empirical evidence to support this claim beyond individual instances and rhetoric from the Meitei community.
  • However, the First Backward Classes Commission's 1955 report acknowledged that the broad classifications of tribes, including "Any Kuki Tribe," originated under British administration.
  • The Commission recommended adding individual tribe names for Assam and the hills of Manipur instead of umbrella tribes, suggesting a need for redrawing the lists due to outdated information.
  • In the 1956 revision of the ST list for Manipur, 29 entries included individual tribe names, except for "Any Mizo (Lushai) Tribe," which was retained.
  • The representation argues that neither "Zou" nor "Any Mizo (Lushai) Tribe" was specifically recommended by the First Backward Classes Commission.
  • In 1965, the Lokur Commission noted a "splintering tendency" among Kuki tribes, with sub-groups seeking distinct identities. Over the years, communities adopted independent tribe names, but the entry "Any Kuki Tribes" was added in 2002-2003 to address the identity of those who identified as Kukis.
  • The Bhuria Commission Report of 2002-2004 observed confusion arising from this addition and recommended mentioning tribe names in the ST list to address inter-tribe differences.
 
7. The Way Forward
 
The Kuki-Zomi delisting proposal in Manipur raises intricate questions about tribal identity, historical claims, and potential consequences for inter-community relations. Examining the arguments, historical context, and the role of institutions like the NCBC is essential for understanding the complexities of this issue and finding solutions that respect the rights and identities of all involved communities.
 
 
For Prelims: kuki-zomi tribes, manipur, National Commission for Backward classes, STs, Lokur Commission, Other Backward Classes
For Mains: 
1. Discuss the potential political and developmental implications of the proposed delisting. How might it affect land rights, access to resources, and inter-community relations in Manipur? (250 Words)
2. Assess the role of the National Commission for Backward Classes (NCBC) in addressing the complexities of tribal identity and ensuring social justice for marginalized communities. How can the NCBC be strengthened to better address issues like the Kuki-Zomi delisting proposal? (250 Words)
 
Previous Year Questions
 
1. Who was appointed as the head of the OBC Sub-categorisation Commission?
(Maharashtra Talathi 2019) 
A. Justice Geeta Mittal
B. Justice Manjula Chellur
C. Justice Tahilramani
D. Justice G. Rohini
 
 
2. Which of the following pairs of list and contents is/are correctly matched? (UPSC CAPF 2019) 
1. State list                     Public health and sanitation
2. Union list                  Citizenship, naturalisation and aliens
3. Concurrent list          Legal, medical and other
Select the correct answer using the code given below:
A. 1 only             B. 1, 2 and 3          C.  2 and 3 only            D.  3 only
 
Answers:1-D, 2- B
 
Source: The Hindu
 

 

SICKLE CELL DISEASE

1. Context

In March 2024, the Indian government issued revised guidelines under the Rights of Persons with Disabilities (RPWD) Act, 2016. These guidelines provide a framework for assessing the extent of disability of people with two copies of the sickle cell gene, or with both sickle cell and beta thalassaemia, or Hb D.

2. What are Sickle Cell Disease and Thalassaemia?

Sickle cell disease is a group of inherited blood disorders that affect the shape and function of red blood cells. Red blood cells are normally round and flexible, but in people with sickle cell disease, they become sickle-shaped or C-shaped. These sickle-shaped cells can get stuck in blood vessels, blocking blood flow and causing pain, fatigue, and other serious health problems.

Symptoms of sickle cell disease can include:

  • Painful episodes, called crises, that can last for days or even weeks
  • Fatigue
  • Shortness of breath
  • Dizziness
  • Jaundice (yellowing of the skin and eyes)
  • Swelling of the hands and feet
  • Anemia (a lack of red blood cells)
  • Frequent infections

Types of Sickle Cell Disease

There are several different types of sickle cell disease, depending on the specific mutations in the haemoglobin gene. The most common type is sickle cell anaemia (HbSS), which occurs when a person inherits two copies of the gene mutation from each parent. Other types of sickle cell disease include sickle cell-beta thalassemia (HbSB), which occurs when a person inherits one copy of the sickle cell gene mutation and one copy of a beta-thalassemia gene mutation, and sickle cell-C disease (HbSC), which occurs when a person inherits one copy of the sickle cell gene mutation and one copy of a haemoglobin C gene mutation.

Causes of Sickle Cell Disease

Sickle cell disease is caused by a mutation in the haemoglobin gene. Hemoglobin is the protein in red blood cells that carries oxygen. The mutation causes the haemoglobin to be misshapen, which makes the red blood cells sickle-shaped.

2.1. Thalassaemia

Thalassaemia is a group of inherited blood disorders that affect the production of haemoglobin, a protein in red blood cells that carries oxygen. People with thalassaemia have less haemoglobin than normal, which can lead to anaemia and other health problems.

Types of Thalassaemia

There are two main types of thalassaemia:

  • Alpha thalassaemia is caused by a mutation in the gene that produces the alpha globin chain of haemoglobin.
  • Beta thalassaemia is caused by a mutation in the gene that produces the beta globin chain of haemoglobin.

Symptoms of Thalassaemia

The severity of thalassaemia symptoms depends on the type of thalassaemia and the severity of the mutation. Symptoms of thalassaemia can include:

  • Fatigue
  • Pale skin
  • Shortness of breath
  • Dizziness
  • Slow growth
  • Enlarged spleen

Causes of Thalassaemia

Thalassaemia is caused by a mutation in the gene that produces haemoglobin. Haemoglobin is made up of two globin chains, alpha and beta. Alpha thalassaemia is caused by a mutation in the gene that produces the alpha-globin chain, while beta thalassaemia is caused by a mutation in the gene that produces the beta-globin chain.

3. How Does the Therapy Work?

  • Both sickle cell disease and thalassaemia are caused by errors in the gene for haemoglobin, a protein in the red blood cells that carry oxygen to organs and tissues.
  • The therapy uses the patient’s own blood stem cells, which are precisely edited using Crispr-Cas9.
  • A gene called BCL11A, which is crucial for switching from foetal to adult haemoglobin, is targeted by the therapy.
  • Foetal haemoglobin, which is naturally present in everyone at birth, does not carry the same abnormalities as adult haemoglobin.
  • The therapy uses the body’s own mechanisms to start producing more of this foetal haemoglobin, alleviating the symptoms of the two conditions.

 3.1. Trial Results

  • Sickle cell disease: 45 people received Casgevy. Only 29 of these patients had been in the trial long enough for the interim analysis on which the approval is based.
  • All but one of these 29 trial participants had no severe pain crises for at least 12 months after treatment.
  • Thalassaemia: The therapy has been administered to 54 persons with thalassaemia for the trial. Of them, 42 were in the trial long enough for the interim analysis. 3
  • 9 of the 42 patients did not need a transfusion for at least 12 months after the treatment. The need for transfusion dropped by 70% in the other three.

4. Treatment Preparation and challenges

  • Casgevy is a one-time treatment for which the doctor has to first collect blood stem cells from the bone marrow using a process called apheresis used to filter out the blood for different components.
  • The cells are then sent to the manufacturing site where it takes about six months for them to be edited and tested.
  • Before a transplant with the edited cells, the doctor gives a conditioning medicine for a few days to clear the bone marrow of other cells that will be replaced by the modified cells.
  • The patient has to stay in the hospital for at least a month so that the edited cells take up residence in the bone marrow and start making red blood cells with normal haemoglobin.
  • Side effects from the treatment are similar to those associated with autologous stem cell transplants, including nausea, fatigue, fever and increased risk of infection.
  • While the therapy shows tremendous potential, the cost remains a significant challenge, with estimates suggesting it could be as high as $2 million per patient. 
  • This poses accessibility issues, especially for individuals in poorer countries.
  • However, experts believe that with more research and development, prices may decrease, and local manufacturing facilities can enhance affordability.
An estimated 30,000-40,000 children in India are born with sickle cell disease every year. India also has the largest number of children with thalassaemia major in the world about 1-1.5 lakh. Dr Chakraborty’s team is also working on gene therapy for sickle cell disease with the government’s big push. The team is currently working on the pre-clinical studies and are likely to enter clinical trial in the next few years.

5. Conclusion

Casgevy's approval marks a significant milestone in Crispr-based therapy. While challenges exist, including pricing and accessibility, ongoing research and potential reductions in costs indicate a promising future for gene therapies. The working gene therapy for sickle cell disease with upcoming clinical trials in the pipeline.

For Prelims: Sickle Cell Disease, thalassaemia, CrisprCas9, Noble Prize, red blood cells, 
For Mains: 
1. Critically analyze the challenges associated with gene therapy, including cost and accessibility, and discuss potential solutions. (250 Words)
 
Previous Year Questions

1. In the context of vaccines manufactured to prevent COVID-19 pandemic, consider the following statements: (UPSC 2022)

  1. The Serum Institute of India produced COVID-19 vaccine named Covishield using mRNA platform.
  2. Sputnik V vaccine is manufactured using vector-based platform.
  3. COVAXIN is an inactivated pathogen-based vaccine.

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
 
 
2. Sick cell anemia (Sickle cell anemia) is caused by? (UPSSSC Chakbandi Lekhpal 2019)
A. Deficiency of folic acid
B. Abnormal levels of hemoglobin
C. Deficiency of iron
D. Decreased production of red blood cells (RBCs)
 
 
3. What is Cas9 protein that is often mentioned in news? (UPSC 2019)
A. A molecular scissors used in targeted gene editing
B. A biosensor used in the accurate detection of pathogens in patients
C. A gene that makes plants pest-resistant
D. A herbicidal substance synthesized in genetically modified crops
 
 
4. Consider the following pairs: (UPSC 2018)
Terms Sometimes seen in news                 Context/Topic
1. Bell II experiment                                  Artificial
2. Blockchain                                             Digital/Cryptocurrency
3. CRISPR - Cas9                                      Particle Physics
Which of the pairs given above is/are correctly matched?
A. 1 and 3 only            B.  2 only             C. 2 and 3 only          D. 1, 2 and 3
 
 
5. Einstein got the Nobel Prize for (BPSC 64TH CCE 2018) 
A. relativity     
B.  Bose-Einstein condensation
C. mass-energy equivalence
D. photoelectric effect
E. None of the above/More than one of the above
 

6. Who among the following scientists shared the Nobel Prize in Physics with his son? (UPSC CSE 2008)

(a) Max Planck       (b) Albert Einstein          (c) William Henry Bragg         (d) Enrico Fermi

 

7. Nobel Prize winning scientist James D. Watson is known for his work in which area? (UPSC CSE 2008)

(a) Metallurgy         (b) Meteorology            (c) Environmental protection           (d) Genetics

 

8. Nobel Prize for Economics was instituted in the year _______ (Punjab Patwari 2016)

A. 1984        B. 1962           C. 1948          D. 1968

 
9. Red blood cells (RBCs) have (NDA  2017) 
A. no nucleus, no mitochondria, and no endoplasmic reticulum
B. nucleus, mitochondria, and endoplasmic reticulum
C. nucleus, mitochondria but no endoplasmic reticulum
D. no mitochondria but endoplasmic reticulum is present
 
 
10. Which one of the following statements about blood elements is correct? (UPSC CAPF  2018)
A. Red blood cells number is same as that of white blood cells and platelets.
B. The number of white blood cells is more than red blood cells.
C. The number of red blood cells is the highest.
D. The number of red blood cells is lower than platelets.
 
Answers: 1-B, 2-B, 3-A, 4-B, 5-D, 6-C, 7-D, 8-D, 9-A, 10-C
 
Mains
1. What are the research and developmental achievements in applied biotechnology? How will these achievements help to uplift the poorer sections of society? (UPSC 2021)
2. The Nobel Prize in Physics of 2014 was jointly awarded to Akasaki, Amano and Nakamura for the invention of Blue LEDs in the 1990s. How has this invention impacted the everyday life of human beings? (UPSC 2021)
 
Source: Indianexpress
 
 

EARTHQUAKE

 

1. Context

An earthquake of 6.0 magnitude struck north-east Afghanistan on Sunday night (August 31), killing more than 800 people and injuring at least 2,000. The quake’s epicentre was 27 km northeast of Jalalabad in Nangarhar province, and its depth was just eight kilometres

2. What is an Earthquake?

An earthquake is an intense shaking of the ground caused by movement under the earth’s surface. It happens when two blocks of the earth suddenly slip past one another, according to USGS. This releases stored-up ‘elastic strain’ energy in the form of seismic waves, which spreads through the earth and cause the shaking of the ground.

3. How do exactly Earthquakes Occur?

  • As we know, the earth’s outermost surface, crust, is fragmented into tectonic plates. The edges of the plates are called plate boundaries, which are made up of faults.
    The tectonic plates constantly move at a slow pace, sliding past one another and bumping into each other.
  • As the edges of the plates are quite rough, they get stuck with one another while the rest of the plate keeps moving.
  • Earthquake occurs when the plate has moved far enough and the edges unstick on one of the faults.
  • The location below the earth’s surface where the earthquake starts is called the hypocenter, and the location directly above it on the surface of the earth is called the epicenter.”

4. Earthquake waves

The release of energy during an earthquake generates waves which are called Earthquake Waves. Earthquake waves are basically of two types body waves and surface waves.
Body waves: They are generated due to the release of energy at the focus and move in all directions traveling through the body of the earth. Hence, the name body waves. The body waves interact with the surface rocks and generate a new set of waves called surface waves.
Surface waves: These waves move along the surface. The velocity of waves changes as they travel through materials with different densities. The denser the material, the higher the velocity. Their direction also changes as they reflect or refract when coming across materials with different densities.

There are two types of body waves. They are called P and S-waves.

P-waves or ‘primary waves’ move faster and are the first to arrive at the surface. The P-waves are similar to sound waves. They travel through gaseous, liquid, and solid materials.
P-waves vibrate parallel to the direction of the wave. This exerts pressure on the material in the direction of propagation. As a result, it creates density differences in the material leading to stretching and squeezing of the material.
S-waves or secondary waves arrive at the surface with some time lag. They can travel only through solid materials. This characteristic of the S-waves is quite important. It has helped scientists to understand the structure of the interior of the earth.
The direction of vibrations of S-waves is Perpendicular to the wave direction in the vertical plane. Hence, they create troughs and crests in the material through which they pass. Surface waves are considered to be the most damaging waves.

5. Measuring of Earthquakes

  • The earthquake events are scaled either according to the magnitude or intensity of the shock.
  • The magnitude scale is known as the Richter scale. The magnitude indicates the energy released during the quake. It is expressed in absolute numbers 0-10.
  • The intensity scale is named after Mercalli, an Italian seismologist. The intensity scale indicates the visible damage caused by the event. The range of intensity scale is from 1-12.

6. Turkey and Syria lie in a seismically active region

  • The region where the earthquake struck lies along a well-known seismic fault line called the Anatolia tectonic block that runs through northern, central, and eastern Turkey.
  • It is a seismically active zone-though not as active as, say, the Himalayan region which is one of the most dangerous regions in the world from the perspective of earthquakes.
  • Large earthquakes, of magnitude 5 or higher, have not been very frequent in recent years. According to USGS, only three earthquakes of magnitude 6 or more have happened in the region since 1970. The last major quake in this area came in January 2020.
  • The seismicity in this region is a result of interactions between the African, Eurasian, and Arabian plates. The Arabian plate is known to be pushing northward, which results in a slight westward movement for the Anatolian plate, where Turkey is located.
  • The earthquake happened around the near-vertical fault line on the eastern Anatolian block, close to the Syrian border.

7. Shallow Earthquakes cause much greater damage

  • Earthquakes in Turkey emerged from relatively shallow depths which made them devastating. The first earthquake, of magnitude 7.8, originated 17.9 km below the earth's surface.
  • All the subsequent ones, including one of 7.5 magnitudes, emerged from even closer to the surface.
  • Shallow earthquakes are generally more devastating because they carry greater energy when they emerge on the surface.
  • Deeper earthquakes lose much of their energy by the time they come to the surface. The deeper quakes spread farther though- the seismic waves move conically upwards to the surface even as they lose energy while traveling greater distances and hence cause less damage.

8. Can earthquakes be predicted?

  • An accurate prediction of an earthquake requires some sort of a precursory signal from within the earth that indicates a big quake is on the way.
  • Moreover, the signal must occur only before large earthquakes so that it doesn’t indicate every small movement within the earth’s surface. Currently, there is no equipment to find such precursors, even if they exist.
  • Theoretically, it is possible to offer a lead time of a few seconds between the time of the origin of the earthquake and the time it reaches the Earth’s surface.
  • Seismic waves travel significantly slower than the speed of light between 5 and 13 km
    per second. So if the earthquake is detected as soon as it is triggered, information about it can be related a few seconds ahead of it reaching the ground.
  • Such systems are already in use in some locations to issue alerts about earthquakes. However, these are not predictions. The alerts are issued post-event.
  • Attempts to find reliable predictors of earthquakes have not been fruitful so far. Scientists have been able to map the areas that are earthquake-prone, and are likely to generate earthquakes in the future, but there is no way to predict when.

For Prelims & Mains

For Prelims: Earthquake, Tectonic plates, Hypocenter, Epicenter, Body waves, Surface waves, P-waves or ‘primary waves’, S-waves or secondary waves, Richter scale, and Seismic waves.
For Mains: 1. What is an Earthquake? How do exactly Earthquakes Occur? Discuss the effects of Earthquakes.
 
Previous Year Questions
 

1.Consider the following: (2013)

  1. Electromagnetic radiation 
  2. Geothermal energy 
  3. Gravitational force 
  4. Plate movements 
  5. Rotation of the earth 
  6. Revolution of the earth 

Which of the above are responsible for bringing dynamic changes on the surface of the earth? 

(a) 1, 2, 3 and 4 only 
(b) 1, 3, 5 and 6 only 
(c) 2, 4, 5 and 6 only 
(d) 1, 2, 3, 4, 5 and 6 

 
Source: The Indian Express
 
 

REPO RATE

 
 
 
 
1. Context
 
In a somewhat unexpected turn, India’s 10-year benchmark government bond yield has risen by about 26 basis points over the past month, even though the Reserve Bank of India (RBI) has cut its key policy rate — the repo rate — by 100 basis points to 5.50 per cent over the past seven months. As of Monday, the yield, which was at 6.62 per cent last week, was quoted at 6.60 per cent, signalling investor unease and shifting market sentiment.
 
 
2. About the Repo rate
  • The repo rate, short for repurchase rate, is the rate at which the central bank of a country (such as the Reserve Bank of India in India) lends money to commercial banks for a short-term period, typically overnight. It is one of the key tools used by central banks to control monetary policy and regulate the economy.
  • When the central bank wants to stimulate economic growth, it may lower the repo rate. This makes it cheaper for commercial banks to borrow money, which in turn encourages them to lend more to businesses and consumers, stimulating spending and investment. Conversely, when the central bank wants to control inflation or cool down an overheated economy, it may raise the repo rate. This makes borrowing more expensive, which can help reduce spending and inflationary pressures.
  • The repo rate also influences other interest rates in the economy, such as lending rates for consumers and businesses, as well as rates on savings and deposits. Therefore, changes in the repo rate have wide-ranging implications for the overall economy.
  • The repo rate in India is 6.50%. This rate has been unchanged since February 8, 2023, after a series of hikes throughout 2022 to combat inflation.

 

3. What is the Cash Reserve Ratio (CRR) Rate?

  • The Cash Reserve Ratio (CRR) is the portion of a bank's deposits that it is required to maintain as reserves with the central bank, such as the Reserve Bank of India (RBI) in India. It is expressed as a percentage of a bank's total deposits.
  • The CRR rate is set by the central bank as part of its monetary policy tools to regulate the money supply in the economy. By adjusting the CRR rate, the central bank can influence the amount of money available for lending by commercial banks.
  • When the CRR rate is increased, banks are required to hold a higher proportion of their deposits as reserves with the central bank, which reduces the amount of money available for lending. Conversely, when the CRR rate is decreased, banks have more funds available for lending, which can stimulate borrowing and economic activity.
  • The primary objective of adjusting the CRR rate is to control inflation, manage liquidity in the banking system, and ensure the stability of the financial system.

 

4. How this move will impact the overall Economy?

Changes in repo rate and CRR affect various aspects of the economy, including:

  • When the central bank increases the CRR rate, banks are required to hold a larger portion of their deposits as reserves, reducing the amount of money available for lending. This can lead to a decrease in liquidity in the banking system, making it more difficult for businesses and individuals to access credit. Conversely, a decrease in the CRR rate can increase liquidity in the banking system, making credit more readily available.
  • Changes in the CRR rate can also influence interest rates in the economy. When the CRR rate is increased, banks may raise their lending rates to compensate for the higher cost of holding reserves. This can lead to higher borrowing costs for businesses and consumers, potentially dampening investment and spending. Conversely, a decrease in the CRR rate can lead to lower lending rates, stimulating borrowing and economic activity.
  • The CRR rate is one of the tools used by the central bank to control inflation. By adjusting the amount of money available for lending, changes in the CRR rate can impact aggregate demand in the economy. A decrease in the CRR rate can stimulate borrowing and spending, potentially leading to increased demand and inflationary pressures. Conversely, an increase in the CRR rate can reduce borrowing and spending, helping to control inflation.
  • Changes in the CRR rate can have implications for overall economic growth. Higher CRR rates can reduce the availability of credit, which may slow down investment and consumption spending, leading to lower economic growth. Conversely, lower CRR rates can stimulate borrowing and spending, potentially boosting economic activity.

 

5. About the Monetary Policy Framework

A monetary policy framework is the overall structure and set of guidelines that a central bank like the Reserve Bank of India (RBI) uses to achieve its economic objectives. It defines the tools, targets, and communication strategies employed to manage the money supply and influence interest rates, ultimately affecting inflation and economic growth.

Objectives

  • Maintaining low and stable inflation is typically the primary objective.
  • Balancing price stability with promoting economic growth is crucial.
  • Ensuring a stable and efficient financial system is also important.

Instruments

  • Repo rate influences the cost of borrowing for banks and indirectly impacts interest rates in the economy.
  • CRR affects the amount of money banks have available for lending, influencing the money supply.
  • Open market operations The central bank can buy or sell government securities to inject or drain money from the economy.

Targets

  • This framework sets a specific inflation target and uses monetary policy tools to achieve it. India currently follows a flexible inflation-targeting framework.
  • This framework aims to maintain a stable exchange rate, but India does not currently follow this approach.

Communication

  • The central bank clearly communicates its policy decisions and rationale to the public and market participants to ensure transparency and manage expectations.

Benefits of a clear framework

  • It helps the public understand how the central bank makes monetary policy decisions.
  • It holds the central bank accountable for achieving its objectives.
  • It allows businesses and individuals to make informed economic decisions based on expected monetary policy actions.

India's Monetary Policy Framework

  • India currently follows a flexible inflation targeting framework, with a target of 4% inflation ± 2%.
  • The RBI uses a variety of instruments, including the repo rate and CRR, to achieve this target.
  • The RBI regularly communicates its policy decisions and rationale through press releases, speeches, and its website.

 

6. The Way Forward

The RBI's decision to maintain the repo rate highlights its cautious approach to balancing inflation control with economic growth. Analyzing the potential implications within the context of broader monetary policy objectives can help us understand the impact on various economic actors and sectors.

 

For Prelims: Repo rate, RBI, Inflation, Monetary Policy Committee, Cash Reserve Ratio

For Mains:

1. Examine the impact of the RBI's repo rate decision on various sectors of the Indian economy, such as agriculture, manufacturing, and small and medium enterprises. How can the government mitigate the negative consequences on vulnerable sections of the population? (250 Words)
2.  In a globalized world where economic policies are interconnected, how can India collaborate with other countries to address macroeconomic challenges such as inflation and exchange rate volatility? (250 Words)
 
 

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)
  1. Bank rate
  2. Open Market Operations
  3. Public debt
  4. Public revenue

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. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? (UPSC 2020)

(1) Cut and optimize the Statutory Liquidity Ratio
(2) Increase the Marginal Standing Facility Rate
(3) Cut the Bank Rate and Repo Rate

Select the correct answer using the code given below:

A. 1 and 2 only        B. 2 only         C. 1 and 3 only           D. 1, 2 and 3

 

6.  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
 
 
7. Consider the following statements: (UPSC 2020)
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
 
Which of the statements given above is/are correct?
 A. 1 and  2 only       B. 2 only       C. 3 only           D. 1, 2 and 3
 
Answers: 1-C, -C, 3-D, 4-A, 5-B, 6-C, 7-A
 
 Source: The Indian Express

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