Weekly Current Affairs (22nd to 30th November 2024) Part - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

GS2/Governance

Comptroller and Auditor General of India

Why in news?

K Sanjay Murthy has been appointed as the new Comptroller and Auditor General (CAG) of India, succeeding Girish Chandra Murmu.

What are the Key Facts About the Comptroller and Auditor General?

• About: The CAG of India, according to Article 148 of the Constitution, leads the Indian Audit and Accounts Department (IA-AD).
• Responsibilities include protecting public finances and supervising the financial systems at both central and state levels.
• The CAG is a vital component of India's democratic framework, alongside the Supreme Court and other institutions.
• Governed by the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971, with updates in 1976, 1984, and 1987.

Appointment and Term:

• The CAG is appointed by the President of India through a formal warrant.
• Serves a term of six years or until the age of 65, whichever comes first.
• Must take an oath to uphold the Constitution and perform duties without bias.
• Removal requires a special majority resolution in both Houses of Parliament for proven misbehavior or incapacity.
• Can resign at any time by submitting a resignation letter to the President.

Independence:

• The CAG can only be removed by the President following a constitutional procedure.
• Ineligible for any further government position post-tenure.
• Salary determined by Parliament, equal to that of a Supreme Court judge.
• The President, in consultation with the CAG, sets the service conditions for the CAG's staff.
• Administrative expenses are charged to the Consolidated Fund of India and are not subject to Parliamentary vote.
• No minister can represent the CAG in Parliament or be held accountable for his actions.

Duties and Powers:

• The CAG audits accounts related to government expenditures from central and state funds.
• Conducts audits for government corporations and public sector undertakings.
• Provides certificates on tax and duty proceeds and audits transactions related to debts and advances.
• Submits audit reports to Parliament, examined by the Public Accounts Committee.

Role:

• Acts as an agent of accountability, ensuring legal and efficient use of public money.
• Reviews whether funds were legally available and correctly utilized, ensuring conformity to governing authority.
• Responsible for protecting taxpayers' money, ensuring it is spent lawfully and for intended purposes.
• Can conduct propriety audits to assess the wisdom and economy of government spending.
• Unlike legal audits, propriety audits are discretionary and not obligatory.
• Unlike the CAG in Britain, the CAG in India does not control fund issuance.

International Audits:

• IAEA (2022-2027): CAG acts as the External Auditor for the International Atomic Energy Agency, promoting safe nuclear technology use.
• FAO (2020-2025): Engages with the Food and Agriculture Organization for global food security initiatives.

How Does the CAG Strengthen Democracy?

• Ensures accountability within India's democratic framework through robust governance mechanisms.
• Supports local governance by assisting Panchayati Raj Institutions (PRIs) and urban local bodies.
• Maintains balance of power by ensuring executive financial activities align with legislative intent.
• Places citizens at the center of audit processes, ensuring government programs reflect public aspirations.

What Major Scandals Has the CAG Uncovered?

• 2G Spectrum Allocation Scam: CAG reported a loss of Rs 1.76 lakh crore due to undervalued allocation of spectrum licenses.
• Coal Mine Allocation Scam: Estimated wrongful gains of Rs 1.85 lakh crore from irregular allocation of coal blocks.
• Fodder Scam: Uncovered fraudulent withdrawals of Rs 940 crore in Bihar's Animal Husbandry Department.

What are the Criticisms Regarding the Functioning of the CAG in India?

• Declining Reports: Audit reports tabled in Parliament dropped from 53 in 2015 to 18 in 2023, raising concerns about oversight.
• Post-Facto Audits: CAG conducts audits after expenditures, limiting proactive financial oversight.
• Limited Importance: The role of auditors is necessary but often limited in scope, lacking pre-audit capabilities.
• Insufficient Expertise: Declining staffing may hinder thorough audits, affecting transparency and accountability.
• Delay in Reporting: Delays in document submission and report tabling can impede timely accountability.

What Reforms are Needed for CAG?

• Amendments to the CAG Act: Update the 1971 Act to meet contemporary governance needs.
• Selection Process: Form a collegium for CAG appointments to ensure impartiality and transparency.
• Adaptation to New Challenges: CAG should focus on auditing emerging areas like climate change and critical technologies.
• Capacity Building: Enhance training for CAG staff in specialized areas to improve audit quality.
• Feedback Mechanism: Establish a system for constructive feedback from audited entities to improve audits.

Conclusion

The CAG serves as a crucial guardian of financial propriety and democratic accountability. While it has made progress in governance and corruption exposure, further reforms are needed to ensure its relevance. By modernizing its operations, the CAG can continue to uphold public trust in India's democracy.

Mains Question

Q: Examine the role of the Comptroller and Auditor General of India in safeguarding public financial accountability.

GS1/History & Culture

Raja Raja I and Chola Administration

Why in news?

Recently, the birth anniversary of Chola emperor Raja Raja Chola I was celebrated during the Sadhaya Vizha festival (mid-October to mid-November) in Thanjavur, Tamil Nadu. He was born as Arulmozhi Varman in 947 CE and adopted the title "Rajaraja," meaning "King among Kings."

What are Key Facts About Rajaraja Chola I?

• About: Raja Raja Chola I was the third child of Parantaka Chola II and Vanavan Mahadevi. The Thiruvalangadu inscription credits Uttama Chola (his predecessor) with appointing Arunmozhi (Rajaraja I) as his successor, recognizing his extraordinary potential.
• Reign: He ruled from 985 to 1014 CE, a period noted for military strength and a remarkable administrative vision.
• Notable Military Conquests:
• Battle of Kandalur Salai (988 CE): This naval battle against the Cheras in Kerala marked Rajaraja I's first military success, leading to the defeat of Chera naval forces and the destruction of their ports.
• Conquest of Kerala and the Pandyas: The Senur inscription notes that he destroyed the Pandya capital of Madurai and conquered Kollam, earning the title "Pandya Kulashani" (thunderbolt to the Pandyas) and renaming the region “Rajaraja Mandalam.”
• Victory in Sri Lanka (993 CE): He invaded Sri Lanka, capturing its northern half and establishing Jananathamangalam as a provincial capital. His son, Rajendra Chola I, completed the conquest in 1017.
• Conflict with the Chalukyas: He achieved victories in Karnataka, annexing regions like Gangavadi and Nolambapadi, and strengthened alliances through strategic marriages, such as his daughter Kundavai's marriage to Vimaladitya of Vengi.
• Chola Navy: Raja Raja Chola I significantly enhanced the navy, leading to the Bay of Bengal being referred to as "Chola Lake." Nagapattinam became a major port, facilitating successful campaigns in Sri Lanka and the Maldives.
• Administration: He replaced hereditary lords with appointed officials, exercising direct control over provinces. Raja Raja I strengthened local self-governance and implemented a system of audits to monitor public bodies.
• Art & Culture: A devoted Shaivite, he built several temples, including the grand Brihadeshwara temple (Rajarajeshwaram temple) at Thanjavur in 1010 CE, which exemplifies Dravidian architecture and is recognized as a UNESCO World Heritage site. The temple is one of the "Great Living Chola Temples," alongside Gangaikonda Cholapuram and Airavateshvara temple. Notably, the sculpture of Nataraja in the Tandava dance posture is a significant piece of Chola art.
• Coinage: Raja Raja Chola I introduced new coins featuring a standing king on one side and a seated goddess on the other, replacing the older tiger-emblem coins. His coinage was influential, even inspiring kings in Sri Lanka.

What are Key Facts About the Chola Administration?

• Centralised Governance: At the peak of the Chola administrative system was the king, whose powers were balanced by a council of ministers. The central government was organized with higher officials (Peruntaram) and lower officials (Siruntaram).
• Provincial Administration: The Chola Empire was divided into nine provinces, known as Mandalams, which were further subdivided into Kottams and Valanadus, eventually leading to Nadus (districts) and Urs (villages).
• Revenue System: Land revenue constituted the main source of income, typically collected at a rate of 1/6th of the land yield, in cash or kind. Additionally, taxes were levied on customs, tolls, mines, forests, salt pans, and professional and house taxes.
• Local Administration: The Chola administration is noted for its local governance system, which afforded significant autonomy to local entities. Villages served as vital administrative units, each led by a Nattar, with an assembly known as Nattavai. The Grama Sabha at the village level was responsible for maintaining public infrastructure and regulating markets, supported by various Variyams (committees) managing different aspects of governance.
• Local Trade: Internal trade flourished during the Chola Empire, facilitated by mercantile corporations and organized guilds known as "nanadesis," which were powerful, autonomous merchant bodies. Major trade centers like Kanchipuram and Mamallapuram had local merchant organizations called "nagaram," coordinating trade and market activities.
• Maritime Trade: The Chola dynasty established trade relations with regions including West Asia, China, and Southeast Asia, engaging in lucrative trade of spices, precious stones, textiles, and other sought-after goods.

Conclusion

Raja Raja Chola I's reign marked a pivotal era of military, cultural, and maritime advancements. His contributions to administration, temple architecture, and naval power, alongside the expansion of the Chola maritime empire, underscore its profound influence on South Asia and beyond, particularly in promoting trade and cultural exchanges.

Mains Question:

Q: Discuss the Chola administration and aspects of its local administration.

GS2/Polity

Constitution Day 2024

Why in news?

On Constitution Day, 26th November 2024, the Prime Minister of India participated in celebrations organized by the Supreme Court of India, marking 75 years since the adoption of the Indian Constitution. He highlighted the Constitution as a living document essential for socio-economic progress and justice. The event also honored the victims of the 26/11 Mumbai attacks, emphasizing India's resilience.

What is Constitution Day?

• Constitution Day commemorates the adoption of the Indian Constitution on 26th November 1949.
• This day celebrates India's democratic values and promotes awareness about justice, liberty, equality, and fraternity.
• In 2015, the Ministry of Social Justice and Empowerment designated 26th November as Constitution Day to enhance citizens' connection with the Constitution, which was previously observed as National Law Day.
• The day pays tribute to the vision of the Constituent Assembly in drafting the Constitution and recognizes Dr. B.R. Ambedkar as the Chairman of the Drafting Committee, earning him the title "Father of the Indian Constitution."

Key Highlights of the Constitution Day 2024

• Constitution Day Celebrations in Jammu and Kashmir: For the first time in 74 years, Jammu and Kashmir celebrated Constitution Day, symbolizing a new chapter in its integration with India's legal and political framework post the abrogation of Article 370 in 2019.
• Hamara Samvidhan, Hamara Samman: The Minister of Labour and Employment took part in the "Hamara Samvidhan, Hamara Samman" campaign, launched on 24th January 2024. This year-long initiative aims to enhance citizens' understanding of the Constitution and its role in shaping Indian society, including regional events, workshops, and seminars.
• Women of India's Constituent Assembly: The President of India acknowledged the contributions of 15 women members of the Constituent Assembly, highlighting figures such as Sarojini Naidu, Sucheta Kripalani, and Vijaya Lakshmi Pandit, along with lesser-known members like Ammu Swaminathan, Annie Mascarene, Begum Qudsia Aizaz Rasul, and Dakshayani Velayudhan.

What Makes the Indian Constitution a "Living Document"?

• Amendability: The Indian Constitution can be amended to meet the evolving needs and circumstances of society, allowing it to adapt over time while upholding its core principles.
• Provision for Amendments: Article 368 in Part XX grants Parliament the authority to amend the Constitution by adding, varying, or repealing provisions, following established procedures.
• Judicial Interpretation: The judiciary, especially the Supreme Court, plays a vital role in interpreting the Constitution, ensuring it remains relevant through landmark judgments and evolving interpretations.
• Federal Structure: The Constitution maintains a balance of power between central and state governments, addressing regional diversity through Article 246, which outlines Union, State, and Concurrent lists.
• Responsive to Social Change: The Constitution includes provisions that allow it to respond to social changes, such as laws protecting marginalized communities and promoting social justice.

What are the Key Facts about the Constitution of India?

• The Constituent Assembly took nearly three years (2 years, 11 months, and 17 days) to draft the Constitution.
• Initially, it had 389 members, with 292 elected from Provincial Legislative Assemblies, 93 from Princely States, and 4 from Chief Commissioners' Provinces; later reduced to 299 after the partition of India in 1947.
• Original Structure (1949): The Constitution originally contained a Preamble, 395 Articles (across 22 Parts), and 8 Schedules.
• Current Structure: It now includes a Preamble, over 450 Articles (across 25 Parts), and 12 Schedules.
• As of September 2024, there have been 106 amendments to the Constitution since its enactment in 1950.
• The Constitution of India is the longest written Constitution in the world, handwritten by Prem Behari Narain Raizada, with artistic contributions from Shantiniketan under Nandalal Bose's guidance.
• The detailed nature of the Constitution reflects India's vastness and diversity, necessitating a comprehensive document.
• It incorporates elements from various global sources, including American, Irish, British, Canadian, Australian, and German constitutions.

Criticisms of the Indian Constitution

• Debunking Borrowed Constitution: Critics argue that the framers merely adapted borrowed features; however, they modified these to suit Indian conditions, avoiding inherent faults.
• Carbon Copy of the Government of India Act, 1935: While some provisions were borrowed, the Constitution is not a mere replica, as it includes significant changes and additions.
• Un-Indian or Anti-Indian: Critics claim it does not reflect Indian values, but it aligns with Indian aspirations despite its foreign influences.
• Un-Gandhian: Although not explicitly Gandhian, many principles in the Constitution resonate with Gandhi's ideals, particularly in the Directive Principles of State Policy.
• Elephantine Size: The Constitution's detailed nature is essential for managing the diversity and complexity of India.
• Paradise of the Lawyers: The legal language employed is necessary for clarity and enforceability.

Mains Question:

Q: The Indian Constitution is often referred to as a 'living document.' Analyse its ability to adapt to changing circumstances.

GS2/Governance

Design Law Treaty (DLT)

Why in News?

Recently, member states of the World Intellectual Property Organization (WIPO), including India, adopted the Design Law Treaty (DLT) during a Diplomatic Conference held in Riyadh, Saudi Arabia.

• The Design Law Treaty (DLT) is introduced as a comprehensive framework aimed at enhancing the protection of industrial designs globally. 
• Its primary aim is to establish a predictable and user-friendly system that removes unnecessary bureaucratic obstacles, thereby providing greater ease for designers to safeguard their intellectual property.

Key Provisions

Streamlining Design Application Procedures:

• Clear Application Requirements: The treaty sets uniform and transparent guidelines for all design applications.
• Flexibility in Representation: Applicants can present their designs using various formats, including drawings, photographs, and videos.
• Multiple Use: It allows for the inclusion of multiple designs in a single application, maintaining the original filing date even if some designs are rejected.

Improving the Filing Process:

• Filing Date Simplicity: Applicants can secure a filing date by initially submitting essential components, with the complete application to be processed later.
• Grace Period for Public Disclosure: A grace period of six to twelve months is provided to protect the novelty of designs disclosed prior to filing.

Post-Registration Procedure and Protection:

• Publication Control: Applicants can manage the publication of their designs for six months after filing, ensuring confidentiality and competitive advantage.
• Relief Measures for Missed Deadlines: Measures will be in place to assist applicants who miss deadlines, preventing the loss of rights.
• Clear Post-Grant Transactions: Procedures following registration (such as transfers and licensing) will be clearly defined for better management and enforcement.
• Two-Tier Structure: The treaty consists of articles outlining the main provisions and rules governing implementation, which can be amended by the Assembly of Contracting Parties to adapt to changing design laws and technologies.

What is Industrial Design?

• An industrial design refers to an original creation with an ornamental aspect that, when applied to a product, gives it a distinctive appearance. This could relate to its shape, lines, outline, configuration, color, texture, or materials. Designs can be three-dimensional, like the shape of a product, or two-dimensional, such as surface patterns.

Application:

• Industrial designs are applied across a vast range of products, including packaging, furniture, clothing, electronic devices, medical equipment, handicrafts, and jewelry.

Importance:

• Industrial designs are valuable business assets that can enhance a product's market value and offer a competitive edge. By making products visually appealing, designs influence consumer choices. Designers must adhere to the filing procedures established by the intellectual property (IP) office in the country where protection is sought. It is important to note that design rights are territorial; protection obtained in one country is confined to that location.

Industrial Design In India:

• From 2014 to 2024, there has been a threefold increase in design registrations in India, with domestic filings surging by 120% in the last two years. Notably, applications for designs increased by 25% in 2023.

What are Protection Provisions under the Design Act, 2000?

• Eligibility: Designs are eligible for protection if they are aesthetic in nature and applied to articles. Protection applies solely to the article's appearance, not its functional parts.
• Novelty and Originality: The design must be new and significantly different from existing designs.
• Non-Disclosure: The design must not have been publicly disclosed in India or abroad prior to registration.
• Not Functional: Designs must not be primarily functional; those driven by functionality do not qualify for protection.
• Not Offensive: Designs should not violate public morals, security, or integrity.
• Duration of Protection: Protection lasts for a minimum of ten years, as stated in the TRIPS Agreement, and can be extended for an additional five years through a renewal application.
• Infringement and Enforcement: Owners of registered designs can prevent others from making, selling, or importing products that replicate their designs.
• Excluded Designs from Protection: Certain items, such as stamps, calendars, books, flags, and layout designs of integrated circuits, are not protected under industrial design rights. Additionally, designs cannot include trademarks, property marks, or any artistic rights defined under the Copyright Act of 1957.

Conclusion

The design Law Treaty aims to simplify the global protection of industrial designs, making it more accessible for designers to protect their intellectual property. The treaty ensures a streamlined process, featuring provisions for multiple designs, grace periods, and clear post-registration procedures, thereby enhancing international design protection.

Mains Question

Q: What is Industrial Design? How the newly adopted Design Law Treaty (DLT) aims to protect it.

GS2/Polity

SC Upholds EVM and VVPAT System

Why in news?

Recently, the Supreme Court (SC) dismissed a Public Interest Litigation (PIL) that called for the re-introduction of traditional ballot papers instead of the current Electronic Voting Machines (EVMs) and Voter Verifiable Paper Audit Trail (VVPAT) system. The court emphasized that concerns regarding EVMs often arise only after electoral defeats and reaffirmed its confidence in the integrity and safeguards of the existing electoral mechanism.

What is the Controversy Regarding EVMs?

• Political parties have voiced allegations of EVM tampering, particularly after electoral defeats, questioning the reliability of these machines.
• In 2009, a political party that lost the General Elections raised doubts about EVM reliability.
• Following the 2019 Lok Sabha elections, opposition parties again highlighted concerns regarding the integrity of EVMs.
• The issue resurfaced in 2020 after assembly elections in five states, leading to renewed scrutiny.

Election Commission's Response:

• The Election Commission has continuously defended EVM reliability, referencing studies by technical experts that assert the machines cannot be hacked or manipulated.

Supreme Court Response:

• The SC stated that numerous technical safeguards and administrative protocols have been established to prevent EVM tampering and deemed the call for reverting to ballot papers as unfounded.

What are EVMs and VVPATs?

• About EVMs: EVMs are portable devices used for conducting elections at various levels, including parliamentary, state legislature, and local bodies like panchayats and municipalities. They are microcontroller-based instruments designed for single posts and single votes.
• Components of EVMs: An EVM consists of two primary units: the control unit and the ballot unit, connected by a cable to ensure the polling officer can verify voter identity.
• Control Unit: This unit is managed by the presiding or polling officer.
• Ballot Unit: Kept inside the voting compartment, it is where voters cast their votes.

Evolution of EVMs in India

• About VVPAT: VVPAT allows voters to verify that their votes are recorded as intended. Upon casting a vote, a slip displaying the serial number, candidate's name, and symbol is printed, visible for 7 seconds through a transparent window before being cut and stored in a sealed box.

What are the Various Safeguards to Ensure EVM Integrity?

Technical Safeguards:

• Functionality: EVMs comprise a Control Unit (CU), Ballot Unit (BU), and VVPAT, which allows for visual verification of votes.
• Microcontroller Security: The microcontrollers are One-Time Programmable (OTP) and cannot be modified post-manufacturing. Any physical tampering attempts disable the machine permanently.
• Manufacturing: EVMs are produced exclusively by trusted Public-Sector Undertakings (PSUs) like Bharat Electronics Limited (BEL) and Electronics Corporation of India Limited (ECIL).
• Standalone Operation: EVMs function without any wired or wireless connections, minimizing the risk of remote manipulation.
• Advanced M3 EVMs (Post-2013): These feature tamper detection to disable the machine if unauthorized access is attempted, along with mutual authentication to prevent unauthorized devices.
• EVM Management System (EMS 2.0): This system tracks and manages EVM movements, ensuring security during transportation and storage.

Administrative Protocols:

• First-Level Check (FLC): Engineers from BEL/ECIL conduct visual inspections, cleaning, and functionality tests, including mock polls to verify performance.
• Randomised EVM Allocation: EVMs are allocated randomly to assembly constituencies and polling stations to prevent predetermined assignments, with randomization done using the EMS 2.0 system in the presence of observers.
• Candidate Setting: Candidate details are loaded into EVMs only after the final candidate list is available, ensuring transparency.
• Mock Polls: Conducted at various stages, including before polling day, to ensure the machines' accuracy.
• Counting Day Procedures: EVMs are taken to counting tables under CCTV surveillance, where cross-verification of VVPAT slips from 5 polling stations per assembly constituency is performed.
• EVM Storage Protocols: EVMs are stored in strongrooms with controlled entry/exit points, monitored by CCTV and armed police, with double-lock systems and separate officials holding keys. GPS-tracked vehicles are used for EVM transport post-polling.
• Periodic Inspections: District Election Officers carry out monthly inspections of EVM warehouses to ensure secure storage conditions.

What are Advantages of the EVM-VVPAT Over Ballot Papers?

• No External Input: EVMs operate on batteries or power packs, making them functional in remote areas, unlike paper ballots that require proper lighting for manual counting.
• Elimination of Invalid Votes: Voting on EVMs is by pressing a button, which prevents invalid votes—a common issue with mis-marked or damaged paper ballots.
• Prevention of Booth Capturing: EVMs are programmed to allow a maximum of four votes per minute, making rapid fraudulent voting highly improbable. Once the 'Close' button is pressed on the control unit, no further votes can be cast.
• Accurate Counting and Voter Verification: EVMs enable rapid and error-free counting, eliminating manual counting errors and delays. Voters receive immediate confirmation via a beep and can verify their vote through the VVPAT slip.
• Transparency in Vote Count: The Control Unit's 'Total' button displays the total votes cast without revealing individual candidate results, ensuring transparency while maintaining vote secrecy.
• Prevention of Pre-Programming Manipulation: The EVM's software, which is neutral to all parties and candidates, is embedded during manufacturing, preventing any advance knowledge of candidate serial numbers, thus making pre-programming impossible.

Conclusion

EVMs along with VVPAT have transformed Indian elections, providing a more efficient, accurate, and transparent voting process compared to traditional ballot papers. Despite lingering skepticism, robust technical safeguards and administrative measures uphold their integrity. The Supreme Court and Election Commission continue to endorse EVMs as secure, bolstering trust in India's democratic framework.

Mains Question

Q: Discuss the role of Electronic Voting Machines (EVMs) in ensuring free and fair elections in India. Highlight the technical and administrative safeguards in place to prevent tampering.

GS3/Environment

India and the High Seas Treaty

Why in News?

India signed the High Seas Treaty, officially known as the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement, in September 2024, representing a significant advancement in global ocean governance. Nonetheless, concerns regarding its implementation and geopolitical challenges could undermine its effectiveness.

What is the High Seas Treaty?

About

• The BBNJ Agreement, developed under the United Nations Convention on the Law of the Sea (UNCLOS), aims to protect and sustainably manage marine biological diversity in ocean areas beyond national jurisdiction, which extend beyond the 200 nautical miles (370 km) of Exclusive Economic Zones (EEZs). Upon coming into effect, this agreement will serve as the third implementing agreement, alongside:
• 1994 Part XI Implementation Agreement (focused on mineral resource exploration in the international seabed).
• 1995 UN Fish Stocks Agreement (focused on conserving and managing straddling and migratory fish stocks).
• The agreement supports the achievement of Sustainable Development Goals (SDGs), particularly SDG 14 (Life Below Water).

Need

• The high seas account for 64% of the ocean surface and 43% of the Earth's area, harboring approximately 2.2 million marine species and up to a trillion microorganisms.
• These regions are not owned by any nation, promoting equal rights for navigation, economic activities, and scientific research.
• In 2021, an estimated 17 million tonnes of plastic entered the oceans, a figure projected to rise without intervention. The absence of accountability leads to overexploitation, biodiversity loss, pollution, and ocean acidification.
• The treaty is essential for ensuring sustainable resource utilization, safeguarding biodiversity, and holding polluters accountable.

Objectives of the Treaty

• Marine-Protected Areas (MPAs): The treaty emphasizes the establishment and management of zones where marine ecosystems, including biodiversity, are threatened by human activities or climate change, similar to national parks and wildlife reserves on land.
• Marine Genetic Resources: It aims to ensure equitable sharing of benefits from marine genetic resources, including drug development, while promoting open access to knowledge derived from these resources.
• Environmental Impact Assessments (EIA): The treaty mandates prior EIAs for activities that may harm marine ecosystems, including those within national jurisdictions that could impact the high seas, requiring public disclosure of these assessments.
• Capacity Building and Technology Transfer: It focuses on aiding small island states and landlocked countries in their conservation efforts, enabling them to benefit from sustainable marine resource use through capacity building and technology transfer.

Signing and Ratification

• The treaty will become international law 120 days after at least 60 countries submit their formal ratification documents. 
• As of November 2024, 105 countries have signed the treaty, but only 15 have ratified it.

What is the Significance of the High Seas Treaty for India?

• Economic Benefits from Blue Economy: India’s blue economy contributes 4% to its GDP, with eco-tourism, fisheries, and aquaculture providing millions of jobs, particularly in coastal regions like Kerala. Countries such as India and those in Africa, which primarily operate in international waters, are susceptible to exploitation by foreign fleets. The treaty could facilitate the regulation of fishing, ensuring sustainable practices.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY): This initiative aims to enhance the fisheries sector. Signing the High Seas Treaty will help safeguard fisheries and unlock new revenue opportunities in sustainable marine industries.
• Addressing Climate Change: The treaty's emphasis on marine ecosystems as carbon sinks is crucial in the fight against climate change. Healthy marine environments serve as buffers against coastal erosion, extreme weather, and rising sea levels. The treaty promotes nature-based solutions (NbS), such as seascape restoration and MPAs, which are vital for protecting coral reefs at risk due to global warming. India's support for the treaty could be instrumental in reversing coral reef decline.
• Alignment with SDGs and Global Commitments: Ratifying the High Seas Treaty would align India with SDGs 13 (Climate Action) and 14, reinforce its Nationally Determined Contributions (NDCs) under the Paris Agreement, and support initiatives like Mission LiFE (Lifestyle for Environment) and SAGAR. It would position India as a global leader in sustainable development and marine biodiversity protection.

What Challenges Does the High Seas Treaty Face?

• Lack of Ratification: The treaty faces significant hurdles, including slow ratification, with only 15 out of 105 signatories having approved it, largely due to geopolitical concerns. Territorial disputes, such as those in the South China Sea, complicate the establishment of MPAs.
• Concerns over Sovereignty: Nations in Southeast Asia and those bordering the Bay of Bengal worry that MPAs may infringe on their sovereignty and national economic interests, making it challenging to balance conservation efforts with national priorities.
• Equity in Benefit Sharing: The treaty's provisions for sharing benefits from marine genetic resources raise accountability issues, with fears that wealthier countries may dominate profits, marginalizing less-developed nations and exacerbating existing inequalities.
• Overlap with Existing Frameworks: The High Seas Treaty may conflict with the Convention on Biological Diversity (CBD) due to overlapping provisions regarding area-based management tools and EIAs, potentially fragmenting ocean governance and complicating enforcement.
• Lack of Clarity in Implementation: While the treaty outlines broad objectives, it lacks specific implementation guidelines, which could hinder consistent application and effectiveness, especially in areas with limited capacities. It also does not adequately address ongoing environmental degradation from activities like oil and gas exploration.
• Capacity-Building and Technology Transfers: The treaty lacks enforceable mechanisms for technology transfer, potentially excluding low- and middle-income countries from its benefits and perpetuating inequalities. Many regions also lack strong institutions to monitor and enforce treaty provisions.

How Can the High Seas Treaty Address its Implementation Gaps?

• Integration of Coastal and High-Seas Governance: There is a need to create a unified framework that connects high-seas management with coastal regulations. Coastal states should align their domestic laws with international norms for better synergy.
• Incentivizing Compliance: Providing technical and financial support to nations in the Global South for capacity-building efforts is essential. Wealthier countries should ensure equitable resource sharing and contribute to developmental initiatives.
• Strengthening Enforcement Mechanisms: Establishing strong monitoring and accountability frameworks is crucial. Enhancing transparency through international oversight of EIAs and profit-sharing mechanisms will improve compliance.
• Building Political Consensus: Resolving geopolitical tensions, particularly in disputed areas, is vital. Fostering multilateral cooperation will be key to the treaty’s success.

Mains Question

Q: How does the High Seas Treaty align with India’s commitment to Sustainable Development Goals, and what impact could it have on India’s blue economy?

GS3/Economy

Insurance Sector in India

Why in News?

Recently, the heads of several general insurance companies convened to discuss the challenges facing the insurance sector in the country and shared their insights on the future trajectory of the industry.

What is the Current State of Insurance Sector in India?

Global Market Position: India ranks as the 10th largest insurance market globally and holds the 2nd largest position among emerging markets, with an estimated market share of 1.9%.

• Potential: According to the Insurance Regulatory and Development Authority of India (IRDAI), India is projected to become one of the largest insurance markets within a decade, surpassing Germany, Canada, Italy, and South Korea.
• The insurance market in India is expected to reach USD 222 billion by 2026.
• Insurance Density: This metric has increased significantly, rising from USD 11.1 in 2001 to USD 92 in 2022. This includes a life insurance density of USD 70 and a non-life insurance density of USD 22, which measures the average insurance premium per person.
• Insurance Penetration: This has steadily increased from 2.7% in 2000 to 4% in 2022, indicating the proportion of premiums relative to GDP.
• Foreign Direct Investment (FDI): Between 2014 and 2023, the insurance sector attracted nearly Rs. 54,000 crore (approximately USD 6.5 billion). Currently, 74% FDI is permitted in the insurance sector.
• Market Composition: Life Insurance Corporation of India (LIC) is the only public sector life insurer, commanding a 62.58% market share in new business premiums for FY23. The private sector’s market share in general and health insurance increased from 48.03% in FY20 to 62.5% in FY23.

What are the Challenges in India’s Insurance Sector?

• Low Insurance Penetration: The insurance penetration rate in India remains low compared to global standards, with India at 6.5% globally.
• Affordability Concerns: Many individuals perceive insurance premiums as high, particularly due to GST rates of 18%, which deters potential buyers.
• Distribution Inefficiencies: Reaching underserved regions, especially in rural and semi-urban areas, poses a significant challenge. Although rural areas house 65% of India’s population (over 90 crore people), only 8%-10% have life insurance coverage.
• Lack of Customization: The absence of tailored insurance options that meet specific consumer needs makes health insurance less appealing to potential policyholders.
• Fraud and Risk Evaluation Challenges: Issues such as fraudulent claims and ineffective risk evaluation procedures inflate costs, leading to leakages that diminish overall savings in the insurance ecosystem.
• Digital Transformation Hurdles: The digitization of insurance processes heightens cybersecurity risks, making the sector vulnerable to malicious actors seeking sensitive customer data.
• Limited Financial Literacy: The general public's lack of financial literacy hampers informed decision-making regarding insurance products; for instance, 1 in 5 policy owners are unaware of basic terms associated with their policies.

Way Forward

• Product Simplification: Developing straightforward and comprehensible insurance products can attract a wider audience and ensure affordability, especially for rural and under-penetrated demographics.
• Enhancing Accessibility: Expanding initiatives like Bima Sugam, Bima Vahak, and Bima Vistaar can improve distribution channels, particularly in remote regions. These initiatives are part of the Bima Trinity, an IRDAI project aimed at increasing insurance product accessibility.
• Bancassurance Expansion: Encouraging corporate agents to forge partnerships with banks and microfinance institutions can enhance insurance distribution.
• Leveraging Government Schemes: Utilizing existing programs such as Pradhan Mantri Jan Dhan Yojana, Atal Pension Yojana, and Suraksha Bima Yojana can help include vulnerable populations in the insurance framework.
• Technology Adoption: Implementing AI-driven tools for hyper-personalization, claims processing, and fraud detection can lead to quicker and more efficient service delivery. Additionally, adopting advanced encryption methods to comply with the Digital Personal Data Protection (DPDP) Act, 2023 can further enhance customer trust.

Mains Question

Q: Analyze the main challenges faced by the insurance sector in India. What strategies can be adopted to overcome these challenges?