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UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

Table of contents
UNODC Report on Illicit Drugs
What are the Highlights of the Report?
What are the Factors Contributing to Drug Abuse in India?
What are the Various Challenges For India in Drug Trafficking?
Way Forward
Amendments Proposed in MSME Act
What are the Key Facts About MSME?
What are the Key Amendments Proposed in MSME Development Act, 2006?
What are the Key Initiatives Announced by the Ministry of MSME?
What are the Challenges Faced by MSMEs?
Drishti Mains Question
Simla Agreement 1972
What is Simla Agreement?
How India-Pakistan Relations Have Been Over the Years?
Conclusion
High Court Upholds Hijab Ban in Colleges
What were the Key Arguments and Court’s Ruling?
Bombay High Court’s Ruling:
Challenged in Supreme Court:
How Have Courts Ruled so far on the Issue of a Hijab?
What is the Constitutional Framework for Religious Freedom in India?
Foundation Day of Puducherry
What are Key Facts about Puducherry?
Regulating Facial Recognition Technology in India
What are the Proposals to Regulate the Use of FRT in India?
What is Facial Recognition Technology?
What are the Concerns Regarding the Use of FRT Technology?
FATF’s Mutual Evaluation Report on India
What are the Highlights of the MER Report on India?
What is the Significance of the MER Report on the Indian Economy?
What is Money Laundering and Terrorism Financing (ML/TF)?
What are the Concerns and Suggestions Suggested by FATF for India?
Drishti Mains Questions:
Debate Around Education as a ‘State Subject’
What is the Status of Education System in India?
Why Should Education be on the State List?
Why Education Should Not be on the State List?
Nine Years of Digital India Initiative
What is the Digital India Initiative?
What are the Various Digital India Initiatives Taken for Digital India?
What are the Challenges and Way Forward Concerning Digital India?
Issue of Urban Finance and 16th Finance Commission
What are the Financial Sustainability Issues with the Urban Areas?
What are the Major Terms of Reference for the 16 Finance Commission?
What are the Steps Needed for Better Urban Finance?
Global INDIAai Summit
What are the Key Highlights and Outcomes of the Summit?
What is the Artificial Intelligence Preparedness Index (AIPI)?
Drishti Mains Question:
NHRC Notice to Odisha Govt Over Custodial Death
What is Custodial Death?
What are the Ethical Concerns Associated with Custodial Deaths?
What Measures can be Taken to Prevent Custodial Torture?
NITI Aayog Panels to Achieve Net-Zero Goal
What are the Key Focus Areas of the Working Groups Formed by the NITI Aayog?
Expected Outcomes:
What is Net-Zero Target?
What are India's Initiatives to Achieve Net Zero Target?
What Steps can be Taken by India to Achieve Net-Zero Emission Target?

GS3/Environment

UNODC Report on Illicit Drugs

Why in news?

Recently, the United Nations Office on Drugs and Crime (UNODC) released its World Drug Report 2024 drawing global attention to escalating concerns in the international drug landscape.

What are the Highlights of the Report?

  • Rising Drug Use:
    • In 2022, the number of drug users worldwide reached 292 million, representing a 20% increase over the past decade.
  • Drug Preference:
    • Cannabis remains the most popular drug, with 228 million users, followed by Opioids, Amphetamines, Cocaine, and Ecstasy.
  • Emerging Threats:
    • The report warns about nitazenes, a new class of synthetic opioids more potent than fentanyl. These substances are linked to an increase in overdose deaths, particularly in high-income countries.
  • Treatment Gap:
    • Out of 64 million people suffering from drug use disorders, only one in 11 receive treatment.
  • Gender Disparity in Treatment:
    • The report reveals a significant gender gap in treatment access. Only one in 18 women with drug use disorders receive treatment, compared to one in seven men.
  • Drug Use In India:
    • The number of people becoming addicted to drugs has risen sharply. According to data from the Narcotics Control Bureau (NCB), there are currently around 100 million people in the country addicted to various narcotic substances.
    • According to the Ministry of Home Affairs, Uttar Pradesh, Maharashtra, and Punjab are the top three states with the highest number of FIRs registered under the Narcotic Drugs and Psychotropic Substances Act (NDPS Act) in three years between 2019 and 2021.
  • Who are the Major Drug-Producing Regions in the World?
    • The Golden Crescent:
      • It comprises Afghanistan, Iran, and Pakistan, a major global hub for opium production and distribution.
      • It affects Indian states like Jammu and Kashmir, Punjab, Himachal Pradesh, Rajasthan, and Gujarat.
    • The Golden Triangle:
      • It is located at the intersection of Laos, Myanmar, and Thailand notorious for heroin production (Myanmar produces 80% of global heroin).
      • Trafficking routes pass through Laos, Vietnam, Thailand, and India.

UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

What are the Factors Contributing to Drug Abuse in India?

  • Poverty, Unemployment, and Escapism:
    • Individuals in lower-income groups use cheap, readily available drugs to temporarily escape harsh realities like poverty, unemployment, and poor living conditions.
    • A slum rehabilitation program in Chennai reported that 70% of adult drug users cited poverty-related stress as a key factor.
  • Peer Pressure and Social Influences:
    • Teenagers experiment with drugs at parties to fit in or appear cool. Youth emulating celebrities or social media influencers who portray drug use as fashionable.
    • A 2023 cybercrime unit investigation uncovered a network using Instagram to advertise pharma parties in Goa, reaching over 100,000 potential attendees.
  • Legal System Loopholes:
    • Organized crime syndicates exploit legal system loopholes, such as weak border controls, to smuggle drugs. They often misuse trade routes from Africa and South Asia for drug trafficking purposes.
    • In 2023, the Border Security Force reported a 35% increase in drug seizures along the India-Pakistan border, highlighting the ongoing challenges in controlling illicit drug flows through these routes.

What are the Various Challenges For India in Drug Trafficking?

  • Border Vulnerabilities and Public Health Risks:
    • India-Myanmar border, characterized by rough terrain and dense forests, presents security challenges.
    • Illicit drug flows through India threaten both national security and public health.
  • Socio-Economic Factors:
    • Poverty, unemployment, and illiteracy in the North Eastern regions contribute to local involvement in drug-related criminal activities.
    • Some local tribes and residents may participate out of economic necessity or misplaced sympathy.
  • Global Drug Supply Hub:
    • The Golden Crescent and Golden Triangle regions collectively meet about 90% of the world's drug demand.
    • India's proximity to these areas increases its exposure to drug trafficking.
  • Evolving Smuggling Techniques:
    • This technological shift presents new challenges for law enforcement. Recent incidents in Punjab have revealed the use of drones for cross-border drug and weapon smuggling.
  • Emerging Cocaine Market:
    • India has unexpectedly become a popular destination for cocaine, controlled by South American cartels. These cartels have established complex networks involving Non-Resident Indians (NRIs) in countries like Canada, Australia, Singapore, Hong Kong, and various European nations, as well as local drug dealers and gangsters in India.

Way Forward

  • Comprehensive Strategy:
    • Prevention, treatment, and law enforcement as recommended by UNODC for community-based programs to raise awareness.
  • Prevention:
    • A national review and consultation organized by the National Commission for Protection of Child Rights (NCPCR) focused on a 'Joint Action Plan to Prevent Drug and Substance Abuse and Combat Illicit Trafficking'.
    • Media campaigns targeting vulnerable populations.
    • Early intervention strategies in schools and workplaces equipping people with knowledge and skills to resist drug use.
    • Providing comprehensive recovery support services.
  • Law Enforcement:
    • Strengthening border security to intercept drug shipments.
    • Improving intelligence sharing between agencies like Interpol and countries like those in the Golden Crescent and the Golden Triangle.
    • Targeting high-level drug traffickers and their financial networks.
  • Use of Technology:
    • Develop an online reporting system where citizens can report drug abuse and trafficking activities.
    • Utilize Big Data, analytics, and AI to identify and track drug trafficking networks.
    • The new portal 'Prahari' will be launched to conduct quarterly activities for awareness of drugs and substance abuse in schools.
  • Humanitarian Approach:
    • In response to the limitations of punitive measures in addressing drug-related cases, there is a need to amend legislation to adopt more reformative approaches.
    • Viewing drug use through a lens of public health and human rights promotes understanding and empathy towards individuals affected by addiction.
    • Redirecting resources from incarceration towards can lead to better outcomes for individuals and communities.

Drishti Mains Questions:

  • How do drug trafficking challenges intersect with border management issues, particularly in regions like India, and what strategies are being employed to address these complexities?

GS3/Economy

Amendments Proposed in MSME Act

Why in news?

Recently, on the occasion of International MSME Day (27 June), 2024, the Ministry of Micro, Small & Medium Enterprises (MSME) organised the 'Udyami Bharat-MSME Day' event and proposed amendment to MSME Development Act, 2006 to improve dispute resolution for delayed payments and address the changing needs of the MSME sector. The event witnessed the launch of several initiatives by the Union Minister for MSME, including the proposed upgradation of the Samadhan Portal, proposed amendments in the MSME Development Act, 2006, Team Initiative, and the Yashasvini campaign.

What are the Key Facts About MSME?

  • MSME stands for Micro, Small and Medium Enterprises. These are businesses that produce, process, and preserve goods and commodities.
  • MSME Regulation in India: Ministry of Small-Scale Industries, Ministry of Agro and Rural Industries were merged in 2007 to form the Ministry of Micro, Small, and Medium Enterprises. This ministry develops policies, facilitates programs, and monitors implementation to support MSMEs and aid in their growth.
  • Micro, Small, and Medium Enterprises Development Act of 2006 addresses various issues affecting MSMEs, establishes a National Board for MSMEs, defines the concept of "enterprise," and empowers the Central Government to enhance MSME competitiveness.
  • Significance of the MSME Sector:
    • Global: According to the United Nations data, MSMEs account for up to 90% of businesses, 60% to 70% of jobs worldwide, and half of global GDP.
    • GDP Contribution and Employment Generation: MSMEs currently contribute approximately 30% to India's Gross Domestic Product (GDP) playing a crucial role in driving economic growth.
    • Export Promotion: Currently MSMEs contribute nearly 45% of India's total exports.
    • Contribution to Manufacturing Output: MSMEs contribute significantly to the country's manufacturing output, particularly in sectors like food processing, engineering, and chemicals.
    • Rural Industrialization and Inclusive Growth: MSMEs play a pivotal role in driving rural industrialisation and promoting inclusive growth.
    • Innovation and Entrepreneurship: The MSME sector fosters innovation and entrepreneurship, as it is often easier for small businesses to adapt to changing market conditions and introduce new products or services.

What are the Key Amendments Proposed in MSME Development Act, 2006?

  • MSME Development Act, 2006 provides a framework for the promotion and development of micro, small, and medium enterprises (MSMEs) in the country.
  • Objectives:
    • Facilitating the promotion and development of MSMEs.
    • Enhancing the competitiveness of MSMEs.
    • Providing easy access to credit, marketing assistance, and other support services.
    • Promoting entrepreneurship and skill development.
  • Key Amendments Proposed:
    • Faster Payment Resolutions: The Samadhan portal is proposed to upgrade from a grievance tracker to a full-fledged online dispute resolution platform for MSMEs.
    • Strengthened MSME Representation: Will include representatives from all State Secretaries, fostering better policymaking that reflects ground realities and addresses MSME challenges across India.
    • Modernising the Act: The 2006 MSME Act requires updates to address contemporary issues like persistent delayed payments and the evolving support needs of MSMEs. Amendments aim to create a more responsive legal framework for their growth.

What are the Key Initiatives Announced by the Ministry of MSME?

  • MSME Trade Enablement & Marketing (TEAM) Initiative: It aims to facilitate the onboarding of 5 lakh micro and small enterprises onto the Open Network for Digital Commerce (ONDC). The government will provide financial assistance for onboarding, cataloguing, account management, logistics, packaging material, and design. Half of the beneficiary MSEs will be women-owned enterprises.
  • Yashasvini Campaign: This is a series of mass awareness campaigns formalising women-owned informal micro enterprises and providing capacity building, training, handholding, and mentorship to women-owned enterprises. The campaigns will be organised by the Ministry of MSME in collaboration with other Central Ministries/Departments, State Governments, and Women Industry Associations, focusing on Tier 2 and 3 cities.
  • 6 Pillars for the Government's MSME Initiatives:
    • Building a Stronger Foundation: This pillar focuses on formalising businesses and ensuring easier access to credit, vital for the growth and stability of MSMEs.
    • Expanding Market Reach: The government aims to increase access to domestic and international markets for MSMEs, along with encouraging e-commerce adoption to expand their reach further.
    • Technological Transformation: This pillar emphasises leveraging modern technology to boost productivity and efficiency within the MSME sector.
    • Skilling the Workforce: Enhancing skill levels and promoting digitalisation in the service sector are crucial for MSMEs to keep pace with the evolving market.
    • Going Global with Tradition: The government will support traditional industries like Khadi, Village, and Coir to help them compete in the global marketplace.
    • Empowering Entrepreneurs: This pillar prioritises fostering enterprise creation among women and artisans, promoting inclusive growth within the MSME sector.

What are the Challenges Faced by MSMEs?

  • Limited Access to Finance and Credit: MSMEs often struggle to obtain formal financing and credit facilities, hindering their growth and expansion.
  • Technological Deficiency: There is a significant lack of technological advancements and limited digital infrastructure, which restricts their ability to innovate and compete effectively.
  • Market Access and Competition: MSMEs face limited market access and intense competition from large-scale enterprises, which undermines their market share and profitability.
  • Skilled Labour Shortage: Acquiring skilled labour and managing talent is a persistent issue, affecting the quality and efficiency of operations.
  • Economic Vulnerability: MSMEs are particularly vulnerable to economic downturns and market fluctuations, which can significantly impact their stability and growth prospects.
  • Raw Material Shortage: MSMEs struggle with fluctuating raw material prices and limited financial capacity for bulk purchasing.
  • Issues With Current Litigation System: The expensive legal process makes it hard for small businesses to seek justice.

Way Forward

  • Financial Empowerment and Access: Enhance through targeted schemes, collateral relaxation, and promoting alternative financing options like venture capital, angel investors, peer-to-peer lending platforms.
  • Digital Transformation and Market Expansion: Impart digital literacy, technical skills, facilitate e-commerce integration, subsidise investments in digital infrastructure, and establish linkages with large enterprises for subcontracting.
  • Regulatory Reforms and Skilling: Simplify regulations, implement single window clearance systems, conduct regulatory impact assessments, launch targeted skill development programs aligned with industry needs, and promote entrepreneurship education at all levels.
  • Infrastructure, Risk Management, and Policy Awareness: Investing in developing reliable power, transportation, and communication infrastructure for MSMEs to thrive. Develop risk management strategies like insurance schemes and encourage product/market diversification to improve resilience.
  • Global Competitiveness and Quality Enhancement: Promoting the adoption of quality management systems, and developing export-oriented MSME clusters can enhance global competitiveness and quality.

Drishti Mains Question

Analyse the challenges faced by MSMEs in India and evaluate the government's initiatives in addressing these challenges.


GS1/History & Culture

Simla Agreement 1972

Why in news?

Recently, the 52nd anniversary of the agreement, signed on July 1972 by then Prime Minister of India and Pakistan was observed.

What is Simla Agreement?

  • Origins and Context:
    • Post-1971 War Dynamics:
      • The agreement was a direct consequence of the 1971 Indo-Pakistani War, which resulted in the independence of Bangladesh (formerly East Pakistan).
      • India's military intervention played a crucial role in this conflict, significantly altering the geopolitical landscape of South Asia.
    • Key Negotiators:
      • Prime Minister Indira Gandhi and Pakistan’s President Zulfikar Ali Bhutto aimed to establish peace and normalize relations between the two countries after the intense hostilities.
  • Objectives of the Simla Agreement:
    • Resolution of Kashmir Issue:
      • India aimed for a bilateral resolution to the Kashmir dispute, restraining Pakistan from internationalizing the issue.
    • Normalisation of Relations:
      • Hoping for improved relations with Pakistan based on the new regional power balance.
    • Avoiding Humiliation of Pakistan:
      • India chose not to press for turning the ceasefire line into a permanent boundary to prevent further resentment and potential revanchism in Pakistan.
  • Key Provisions:
    • Conflict Resolution and Bilateralism:
      • The agreement emphasized resolving all issues between India and Pakistan through peaceful means, primarily through bilateral negotiations. It aimed to put an end to the conflict and confrontation that had marred their relations.
    • Status of Kashmir:
      • One of the most contentious issues addressed was the Line of Control (LoC) in Kashmir, established after the 1971 war. Both sides agreed to respect this line without prejudice to their respective claims and to refrain from altering its status unilaterally.
    • Withdrawal of Forces:
      • It stipulated the withdrawal of forces to their respective sides of the international border, marking a significant step towards de-escalation.
    • Future Diplomacy:
      • The agreement also laid down provisions for future meetings between the heads of both governments and ongoing discussions to establish durable peace, normalize relations, and address humanitarian issues like the repatriation of prisoners of war.
  • Significance:
    • Geopolitical Tensions:
      • The agreement remains relevant today as the Kashmir issue and broader Indo-Pak relations continue to be a flashpoint in South Asian geopolitics.
    • Legal and Diplomatic Framework:
      • It provides a legal framework for future discussions and negotiations between the two countries, despite its limitations and differing interpretations.
  • Criticism:
    • Unfulfilled Potential:
      • The Simla Agreement fell short of its intended goals of fostering lasting peace and cooperation between India and Pakistan. Deep-seated mistrust and historical grievances continue to hinder progress.
    • Nuclearisation and Strategic Shifts:
      • Both countries conducted nuclear tests post-1998, significantly altering the strategic calculus. This nuclear capability has led to a deterrence-based stability rendering Simla agreement less relevant.
    • Long-term Impact:
      • Despite its intentions, the Simla Agreement did not lead to a sustained peace process or normalization of relations between India and Pakistan.
    • International Perspective:
      • The international community generally respects the Simla Agreement's bilateral approach to resolving issues between India and Pakistan. It has often been cited to discourage international intervention in Kashmir.

How India-Pakistan Relations Have Been Over the Years?

  • Partition and Independence (1947):
    • The partition of British India into India and Pakistan in 1947 was a pivotal moment, resulting in the creation of two separate nations, India a secular nation and Pakistan a theocratic nation.
  • 1965 and 1971 Wars:
    • The 1965 war began with border skirmishes and escalated into a full-scale conflict. It ended with a UN-mediated cease-fire and no major territorial changes.
    • In 1971, India intervened in East Pakistan's struggle for independence, leading to the creation of Bangladesh.
  • Insurgency in Kashmir (1989):
    • Pakistan supported a militant insurgency in Kashmir, leading to widespread violence and human rights abuses.
  • Kargil War (1999):
    • Pakistan-backed forces infiltrated Indian-controlled territory in Kargil, sparking a war that ended with an Indian military victory but strained relations further.
  • Mumbai Attacks (2008):
    • Pakistan-based Lashkar-e-Taiba militants launched coordinated attacks in Mumbai, killing 166 people. This event severely strained relations and led to international pressure on Pakistan to act against terrorism.
  • Current Situation (2023-2024):
    • Continued political instability in Pakistan, coupled with ongoing militant activities and cross-border tensions, perpetuate the cycle of violence and distrust between the two nations.
  • Geopolitical Dimensions:
    • China's growing influence in the region, including its strategic partnership with Pakistan and territorial disputes with India, adds another layer of complexity to the Indo-Pakistani dynamic.

Conclusion

Overall, the India-Pakistan conflict remains a complex and volatile issue with deep historical roots, intertwined with geopolitical rivalries, domestic politics, and aspirations for regional dominance. Efforts towards lasting peace face significant challenges amid recurring episodes of violence, militant activities, and mutual distrust. While the Simla Agreement of 1972 represented a significant effort towards peace between India and Pakistan after the 1971 war, its limitations and controversies underscore the complex and enduring nature of Indo-Pakistani relations. Its legacy remains pivotal in understanding the dynamics and challenges of South Asian diplomacy and security.

Read more:

Celebrating Vijay Diwas

Drishti Mains Question:

Q. Discuss the relevance of the Simla Agreement of 1972 in shaping contemporary India-Pakistan relations.


GS2/Polity

High Court Upholds Hijab Ban in Colleges

Why in news?

Recently, the Bombay High Court dismissed a plea by 9 students who have challenged the college's new dress code that banned the wearing of hijabs, burqas, niqabs, and any other religious identifiers inside the college premises. The court held that the dress code was decided in the "larger academic interest" of the students.

What were the Key Arguments and Court’s Ruling?

  • Arguments of Students:
    • Students argued that the college dress code infringes on their religious freedom and right to education. They believe the college doesn't have the authority to impose such restrictions, especially since it hinders access to education for minority communities.
    • They claim the restrictions violate specific articles of the constitution Article 19(1)(a) (Right to Freedom of Expression) and Article 25 (Right to Freedom of Religion).
    • They also claimed the decision was in violation of University Grants Commission (Promotion of Equity in Higher Educational Institutions) Regulations, 2012 meant to increase access to higher education for SC,ST, OBC, and minority communities.
  • Arguments of College Administration:
    • The college administration argued that the dress code was applicable to all students, across religious and community lines. It said that the objective behind the rules was to not reveal students’ religion.
    • They relied on the 2022 judgment of Karnataka High Court which stated that donning the hijab or niqab was "not an essential religious practice" for women professing Islam.
    • The college also said that this was an internal matter, a part of its right to maintain discipline.

Bombay High Court’s Ruling:

  • The Bombay HC rejected the students' argument that wearing the hijab is an "essential religious practice" emphasizing the dress code was applicable uniformly to all students, irrespective of their "caste, creed, religion, or language” which did not violate the UGC regulations on promoting equity in higher education.
  • It held that between the competing rights of a student's choice of dress and the institution's right to maintain discipline, "larger rights" of the college must prevail, as students are expected to attend the institution for academic advancement.
  • The court relied on and expressed "full agreement" with the 2022 judgment of the Karnataka High Court (HC) on Resham v. State of Karnataka, 2022 which had validated the state government's ban on hijabs in government colleges.

Challenged in Supreme Court:

  • However, the Karnataka HC judgment on hijab ban is itself currently under challenge in the where a 2-judge bench delivered a split verdict in October 2022. The case has now been referred to a larger bench of the Supreme Court.
  • This Bombay HC verdict is also likely to be contested in the

How Have Courts Ruled so far on the Issue of a Hijab?

  • Bombay High Court, 2003:
    • In Fathema Hussain Sayed v Bharat Education Society, the court held that the Quran does not prescribe the wearing of a headscarf, and a girl student not wearing a headscarf cannot be seen as violating Islamic injunctions.
  • 2015 Kerala High Court Cases:
    • Two petitions challenged the dress code for the All India Pre-Medical Entrance, which prescribed light clothes with half sleeves and slippers instead of shoes.
  • Central Board of School Education (CBSE) argued that the dress code was to prevent unfair practices.
  • The Kerala HC directed the CBSE to implement additional measures for students wishing to wear religious attire.
  • Amna Bint Basheer v CBSE, 2016:
    • The Kerala HC ruled that wearing a hijab is an essential religious practice but upheld the CBSE dress code, allowing additional measures and safeguards as in 2015.
  • Kerala High Court, 2018:
    • In Fathima Thasneem v State of Kerala, the court ruled in favor of a Christian missionary school's decision to deny permission to wear headscarves, stating that the "collective rights" of the school must take precedence over individual student rights.
  • Supreme Court Split Verdict on Hijab Ban:
UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

What is the Constitutional Framework for Religious Freedom in India?

  • Right to Freedom of Religion: Articles 25-28
    • Part-3 (Fundamental Rights of the Constitution confers the right to freedom of religion to all persons.
    • Article 25(1): This article grants the "freedom of conscience and the right to freely profess, practice, and propagate religion." It establishes a negative liberty, wherein the state cannot obstruct the exercise of this right.
    • Article 26: This article provides the "freedom to manage religious affairs" subject to public order, morality, and health. It allows religious denominations to establish and maintain institutions for religious and charitable purposes.
    • Article 27 prohibits the state from compelling any citizen to pay taxes for the promotion or maintenance of any particular religion. It upholds the principle of secularism.

Way Forward

  • Judicial Consensus & Supreme Court's Role:
    • Aligning High Court judgments can indicate an emerging judicial view. The Supreme Court's verdict will be crucial for a clear legal framework.
  • Balancing Rights & Institutional Needs:
    • The challenge lies in balancing individual religious freedom with institutions' autonomy to implement dress codes. This needs careful consideration in each educational context.
  • Comprehensive Guidelines & Inclusivity:
    • Lack of national-level dress code guidelines necessitates clear policies from the UGC ensuring uniformity and protecting fundamental rights.
    • Formulating dress codes through a consultative process involving all stakeholders is needed to foster inclusivity and address concerns regarding diverse religious practices.

Conclusion

The Bombay HC verdict is a significant development in the hijab controversy, reaffirming the courts' position on the permissibility of dress code regulations in educational institutions. However, it requires a balanced approach that upholds the fundamental rights of students while also preserving the autonomy and academic interests of educational institutions.

Drishti Mains Question:

Discuss the potential impact of the Bombay High Court's judgment on the ongoing legal and social debates surrounding the hijab controversy in India.


GS1/History & Culture

Foundation Day of Puducherry

Why in News?

Every year, the 1st July is marked as the foundation day of Puducherry as on this day the Government of Union Territories Act 1963 providing Legislative Assemblies and Council of Ministers came into force.

What are Key Facts about Puducherry?

About:

  • The present UT of Puducherry was formed in 1962 out of the four former colonies of French (Puducherry, Karaikal, Mahe, and Yanam).
  • The regions are surrounded by the state of Tamilnadu while Yanam is surrounded by the state of Kerala and Andhra Pradesh.
  • To accommodate the diverse culture, due to its multi-state location, Puducherry has been recognized as a Union Territory.

UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

History of Pondicherry:

Ancient History:

  • Puducherry has a flourishing maritime history and excavations at Arikamedu show that Romans came here to trade in the Century AD.
  • In around the fourth century A.D., Puducherry area was part of the Pallava Kingdom of Kanchipuram after which Chola took over it.

Colonial History:

  • The foundation of modern Puducherry was laid in the year 1673 after the French East India Company successfully obtained firman from the Qiladar of Valikondapuram under the Puducherry was captured by the Dutch in 1693 but was returned to the French company by the Treaty of Ryswick in 1699.
  • In 1674, Francois Martin was appointed as the first Governor which undertook the ambitious project to transform Pondicherry from a small fishing village into a flourishing port town.

Post Independence:

  • On 1 November 1954, Puducherry became a UT after the French possessions in India were transferred to the Indian Union and 280 years of French rule came to an end.
  • Puducherry became officially an integral part of India after the French Parliament in Paris ratified the Treaty with India in 1963.

Political Status of Pondicherry:

  • In accordance with Article 239 of the Constitution of India and the Government of Union Territories Act 1963, the President of India has framed the Business of the Government of Puducherry (Allocation) Rules 1963 elected legislatures with the Lieutenant Governor being guided by the The Puducherry Assembly can legislate on any issue under the Concurrent and State Lists The name of was changed to The Pondicherry (Alteration of Name) Act 2006.
  • Puducherry has long demanded statehood to gain greater powers for attracting industries, creating employment opportunities, and enhancing infrastructure for tourism.

Culture:

  • Sri Aurobindo Ashram (a well-planned town with Franco Tamil architecture) and Auroville (an experimental township) was an attempt to implement Sri Aurobindo's vision of new forms of individual and collective life, preparing the way towards a brighter future for the whole earth.
  • Puducherry is an Indian Union Territory that offers a taste of France in India (due to its colonial history).

Read more:

  • Statehood Demand by Puducherry
  • Bills for Women’s Quota in J&K and Puducherry

Drishti Mains Question:

  • Q. The political and administrative reorganization of states and territories has been a continuous ongoing process. Discuss this in the context of the statehood demand of Puducherry.

GS2/Polity

Regulating Facial Recognition Technology in India

Why in news?

Recently, the NITI Aayog, the premier public policy think-tank of the Government of India, has called for comprehensive policy and legal reforms to regulate the use of Facial Recognition Technology (FRT) in the country. This step is considered a major development amid growing worries about privacy, transparency, accountability.

What are the Proposals to Regulate the Use of FRT in India?

  • Status of Regulation in India:
  • Currently, there is an absence of any comprehensive legal framework present to regulate the use of Facial Recognition Technology (FRT) in India.
  • Need For Regulating FRT:
  • FRT presents distinct challenges compared to other technologies due to its ability to capture and process sensitive biometric data remotely. Existing regulations might not adequately address these specific concerns.
  • Ensuring Responsible Development:
  • The objective is to create a comprehensive governance framework that can ensure the responsible development and deployment of FRT in India. This is crucial to mitigate the risks and ethical concerns associated with the use of FRT, such as privacy violations, algorithmic bias, and abuse of surveillance powers.
  • International Thought Leadership:
  • Proactive regulation will allow India to emerge as a global thought leader on FRT governance, shaping international discourse and policies.
  • Promoting Public Trust:
  • Effective regulation will build public trust in the technology and facilitate its widespread adoption across various sectors.
  • Balancing Innovation and Safeguards:
  • The reforms seek to strike a balance between promoting FRT innovation and putting in place necessary safeguards to protect individual rights and societal interests.

Key Proposals:

  • Standardising Liability:
  • Establishing a framework that imposes liability and defines the extent of damages for harms caused by FRT malfunctions or misuse. This would incentivize responsible development and deployment.
  • Ethical Oversight:
  • Creating an independent ethical committee with diverse expertise to oversee FRT implementation. This committee would address issues of transparency, accountability, and potential bias within the algorithms.
  • Transparency in Deployment:
  • Mandating clear and transparent guidelines on the systems. This would include informing the public about the use of FRT in specific areas and obtaining consent where necessary.
  • Legal Compliance:
  • Ensuring FRT systems comply with the Supreme Court's established legal principles in its judgment given in Justice K. S. Puttaswamy (Retd) Vs Union of India case. These principles include legality (adherence to existing laws), reasonability (proportionality to the objective), and balancing the need for security with individual rights.

What is Facial Recognition Technology?

  • About:
  • Facial recognition is an algorithm-based technology which creates a digital map of the face by identifying and mapping an individual’s facial features, which it then matches against the database to which it has access.
  • Working:
  • The facial recognition system works primarily by capturing the face & its features through the camera and then using various kinds of software to reconstruct those features.
  • Uses:
  • Verification:
  • The facial map is obtained for the purpose of matching it against the person’s photograph on a database to authenticate their identity. For example, it is used to unlock phones.
  • Identification:
  • The facial map is obtained from a photograph or video and then matched against the entire database to identify the person in the photograph or video. For example, law enforcement agencies usually procure FRT for identification.
UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

What are the Concerns Regarding the Use of FRT Technology?

  • Inaccuracy, Misuse and Privacy Concerns:
  • FRT's limitations include misidentification, particularly across racial and gender demographics. This can lead to wrongful disqualification of legitimate candidates.
  • Racial and Gender Biases:
  • Studies reveal disparities in FRT accuracy based on race and gender, potentially excluding deserving candidates and reinforcing societal biases.
  • Exclusion from Essential Services:
  • Failures in biometric authentication, such as under the Aadhaar system, have led to the exclusion of individuals from accessing essential government services.
  • Ethical Concerns:
  • It also raises ethical questions about the balance between public safety and individual rights, as well as the potential for misuse and abuse of the technology. There are concerns about the erosion of anonymity and the potential for FRT to be used for social control and suppression of dissent.

Way Forward

  • Robust Legal Framework:
  • Establish dedicated laws or regulations governing FRT deployment by both public and private actors. These laws should clearly define lawful purposes for FRT use, emphasize proportionality, and establish clear lines of accountability.
  • Ethical Oversight and Governance:
  • There is a need for creation of independent ethical oversight committees to assess the ethical implications of FRT deployments, prescribe codes of practice, and ensure compliance.
  • Transparency and Data Protection:
  • Make public disclosure of FRT deployments mandatory for both government and private entities and aligning FRT governance with India's upcoming data protection framework to ensure robust data protection safeguards.
  • Addressing Bias:
  • There is a need to develop clear guidelines promoting fair and non-discriminatory use of FRT, particularly in high-stakes applications.
  • Global Leadership:
  • Actively participate in international discussions on FRT governance to shape global standards. Leverage India's position as a technological leader to champion responsible AI development on the world stage.

Drishti Mains Question:

Discuss the major concerns associated with the deployment of FRT systems and suggest measures to ensure transparency, accountability, and address potential biases.


GS3/Economy

FATF’s Mutual Evaluation Report on India

Why in News?

Recently, the Financial Action Task Force (FATF) issued a Mutual Evaluation Report (MER) on India, approved during their plenary session in Singapore. The MER report specifically assessed India's efforts in combating Money Laundering (ML), Terrorist Financing (TF), and proliferation financing.

UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

What are the Highlights of the MER Report on India?

Regular Follow-Up Category:

India has been classified into the 'regular follow-up' category, joining Russia, France, Italy, and the UK, also designated in this category. Under the 'regular follow-up' category, India is required to submit a progress report on recommended actions by October 2027. FATF categorises member countries into four groups: regular follow-up, enhanced follow-up, grey list, and black list. Regular follow-up is the top category amongst 4, and only 5 countries G20, including India, have been placed in regular follow-up after the Mutual evaluation report. India has achieved strong results and a high level of technical compliance, yet it must address delays related to prosecutions for money laundering and terrorist financing.

Digital Economy Through JAM Trinity:

India's transition to a digital economy, facilitated by the JAM (Jan Dhan, Aadhaar, Mobile) Trinity and stricter cash transaction regulations, has successfully mitigated risks associated with ML, TF, and proceeds from crimes such as corruption.

What is the Significance of the MER Report on the Indian Economy?

Enhanced Global Financial Reputation:

The positive FATF evaluation demonstrates India's robust financial system, boosting international confidence. This could support initiatives like the Gujarat International Finance Tec-City (GIFT City) in attracting more international financial institutions. This improved reputation can lead to better credit ratings, potentially lowering borrowing costs for Indian entities in global markets.

Increased Foreign Investment:

A trustworthy financial system is likely to attract more foreign direct investment (FDI) in sectors like fintech and e-commerce where financial integrity is crucial.

Expansion of Digital Payment Systems:

The report's endorsement supports the global expansion of India's Unified Payments Interface (UPI). This could lead to wider acceptance of UPI in international markets as UPI is already operational in countries like Singapore and UAE, with plans for expansion to more nations.

Boost to India's Fintech Industry:

The positive evaluation could accelerate the growth of India's Fintech sector. Fintech Paytm and PhonePe could find it easier to expand internationally. It may attract more venture capital and encourage innovation in areas like blockchain and digital currencies.

Enhanced Remittance Flows:

With improved financial systems, remittances from Non-Resident Indians (NRIs) could become more efficient and cost-effective and can increase the volume of remittances, which are a significant contributor to India's foreign exchange.

What is Money Laundering and Terrorism Financing (ML/TF)?

Money Laundering (ML):

Money laundering is concealing or disguising the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources. It is frequently a component of other, much more serious crimes such as drug trafficking, robbery, or extortion. According to the IMF, global Money Laundering is estimated between 2 to 5% of World GDP.

Terrorism Financing (TF):

Terrorism financing is the act of providing financial support to terrorists or terrorist organizations to enable them to carry out terrorist acts or to benefit any terrorist or terrorist organization. While funds may come from criminal activities, they may also be derived from legitimate sources, for example, through salaries, revenue from legitimate business, or donations including through non-profit organizations. There are generally three stages in terrorism financing: raising, moving, and using funds.

UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

What are the Concerns and Suggestions Suggested by FATF for India?

Vulnerability of Non-financial Sectors:

Non-financial sectors may be vulnerable to money laundering and terrorist financing due to weaker oversight. For example, the real estate sector in India, which has been known to be susceptible to illicit financial activities. There is a need for stronger due diligence processes for high-value property transactions or improved reporting mechanisms for suspicious activities in non-financial sectors as well as enhancing the capacity of India's Financial Intelligence Unit (FIU-IND) to analyze and disseminate high-quality financial intelligence.

Prolonged Legal Processes:

Prolonged legal processes may hinder the effectiveness of AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) efforts and potentially allow criminals to evade justice. For instance, cases related to high-profile economic offenders who have fled the country have faced significant delays in prosecution and asset recovery. It requires a multi-faceted approach, potentially including judicial reforms, capacity building for law enforcement and judicial officers in financial crime matters, and enhanced use of technology in the judicial process.

Virtual Asset Risks and Transnational Organized Crimes:

The growing use of virtual assets (cryptocurrencies) poses new challenges for AML/CFT regimes. Ineffective international cooperation hinders efforts to combat cross-border financial crimes. India needs to develop more comprehensive regulations and supervision mechanisms for virtual asset service providers to prevent their misuse for money laundering or terrorist financing and to improve its mechanisms for sharing information and cooperating with other countries in cases involving transnational organized crime or cross-border money laundering schemes.

Drishti Mains Questions:

Assess India's progress in enhancing its anti-money laundering and counter-terrorist financing regime. What key challenges and measures should India prioritize to effectively address these identified issues?


GS2/Polity

Debate Around Education as a ‘State Subject’

Why in news?

Recently, controversies surrounding exams like NEET-UG and UGC-NET have reignited the debate on whether education should be transferred back to the state list.

What is the Status of Education System in India?

  • History:

    The ‘Gurukul’ was a type of education system in ancient India with shishya (students) living with the guru in the same house.

    Nalanda, possessing the world's oldest university system, drew students globally to Indian knowledge traditions.

    British Government brought various reforms in the education system through Macaulay Committee recommendations, Woods’ Despatch, Hunter Commission Report, and Indian University Act, 1904 which had a profound impact on society.

  • Current Status of Education in India:

    Gender gap in literacy in India began narrowing in 1991, with an accelerated pace of improvement. However, the current female literacy rate (65.46%-Census 2011) in India still significantly lags behind the global average of 87%, as reported by UNESCO in 2015.

    Furthermore, India's overall literacy rate of 74.04% is below the world average of 86.3%. A significant number of states in India fall within the average range, just slightly above the national literacy level.

  • Different Legal and Constitutional Provisions:

    Legal Provisions:

    The government has implemented the Sarva Shiksha Abhiyan (SSA) as part of the Right to Education (RTE) Act, 2009 for primary level (6-14 years).

    At the secondary level (age group 14-18), the government has extended the SSA to secondary education through the Rashtriya Madhyamik Shiksha Abhiyan.

    Higher education, encompassing undergraduate (UG), postgraduate (PG), and MPhil/PhD levels, is addressed by the government through the Rashtriya Uchhattar Shiksha Abhiyan (RUSA) to meet the requirements of higher education.

    All these schemes have been subsumed under the umbrella scheme of Samagra Shiksha Abhiyan.

    Initially, Article 45 DPSP aimed to provide free and compulsory education for children up to 14 years, later amended to include early childhood care, and eventually made a fundamental right (Article 21A 86th Constitutional Amendment Act of 2002 due to unfulfilled objectives.

    Entry 64 and 65 of the Union List Schedule 7 of the constitution lists Institutions for scientific or technical education financed by the Government of India, professional, vocational or technical training etc.

    Education as a ‘State’ Subject:

    Government of India Act, 1935, created a federal structure, placing education under the provincial list.

    In post-independence India, education remained a state subject.

    However, during the emergency Swaran Singh Committee recommended moving education to the concurrent list, implemented through the 42 constitutional amendment in 1976.

    44 was an attempt to correct the changes to a certain extent.

Why Should Education be on the State List?

  • Original Constitution Design:

    Education was initially placed on the State List by the framers of the Constitution, recognising that local governments are better equipped to handle educational needs.

  • Amendment Impact:

    The unilateral shift of education to the Concurrent List during the Emergency undermined the Allowing states to have exclusive control over education would restore the balance of power envisioned by the framers of the Constitution.

  • State-Specific Policies:

    States can tailor their educational policies to their unique cultural, linguistic, and socio-economic contexts. This ensures that education is relevant and responsive to the needs of the local population and can be crucial for improving literacy rates and educational outcomes.

    For example under Article 350A endeavour should be made to provide primary education in the mother tongue.

  • Divergent Policies:

    The central government's policies, such as the National Education Policy (NEP) National Eligibility cum Entrance Test (NEET), often conflict with state policies, leading to inefficiencies and disenfranchisement.

Why Education Should Not be on the State List?

  • Poor Status of Primary Education:

    As per the ASER 2023 Report, most rural kids of 14-18 can’t do Class 3 math while over 25% can’t read. This reflects the poor governance of education in the states.

  • National Integration and Mobility:

    Kothari Commission (1964-66) emphasized the importance of a common educational framework across states to foster national integration and cultural exchange.

  • Ensuring Minimum Standards and Equity:

    Right to Education Act (RTE), 2009, guarantees a minimum level of education across India. Keeping education concurrent allows the Centre to monitor implementation, ensuring disadvantaged sections have access to quality education irrespective of their state.

  • Standardisation of Skills and Employability:

    Reports by FICCI (Federation of Indian Chambers of Commerce and Industry) highlight the need for a standardised national curriculum to ensure graduates have the skills required by a pan-India job market.

Way Forward

  • Collaborative Federalism:

    Focus should be on a "Collaborative Federalism" approach as suggested by the Kothari Commission (1964-66). This ensures national minimum standards set by the Centre while allowing states flexibility in curriculum, language, and pedagogy.

  • Outcome-based Funding:

    Implement outcome-based funding mechanisms as recommended by the NITI Aayog in its Strategy for New India @ 75 document. This allocates resources based on learning outcomes, incentivizing states to improve educational quality.

  • Decentralized School Management:

    Promote decentralised school management structures as envisioned in the Right to Education Act (RTE) 2009. This empowers School Management Committees (SMCs) with community participation, fostering local ownership and responsiveness.

  • Teacher Training & Transfer Policy Reforms:

    Advocate for reforms based on the recommendations of the TSR Subramanian Committee Report (2009). This includes improved teacher training programs, transparent transfer policies, and performance-based incentives to create a more motivated and effective teaching force.


GS3/Economy

Nine Years of Digital India Initiative

Why in news?

Recently, the Prime Minister highlighted the significant impact of Digital India initiatives, commemorating its successful nine-year journey. He portrayed Digital India as a symbol of national empowerment, enhancing living standards and promoting transparency.

What is the Digital India Initiative?

  • About: Digital India was launched on 1 July 2015 by the Indian Government. This initiative builds on earlier e-governance endeavors that commenced in the mid-1990s but lacked coherence and interactivity.
  • Objective:
    • Narrowing the Digital Divide: The initiative aims to bridge the gap between tech-savvy individuals and those with limited digital access.
    • Promoting Digital Participation: It strives to ensure fair access to digital technology benefits for all citizens, encompassing domains like education, healthcare, and government services.
    • Stimulating Economic Development: By leveraging technological advancements and innovative solutions, Digital India seeks to propel economic growth across the nation.
    • Elevating Living Standards: The program aims to enhance the overall quality of life for citizens through the strategic application of technology in various aspects of daily life.
  • Nine Pillars of Digital India Initiative:
    • Broadband Highways: Focused on constructing extensive high-speed broadband networks nationwide to enhance connectivity and digital empowerment.
    • Universal Access to Mobile Connectivity: Extending mobile coverage to remote areas to enable all citizens to engage with mobile services and participate in the digital economy.
    • Public Internet Access Programme: Establishing Common Service Centres in underserved areas to provide affordable internet access, addressing the digital divide and promoting digital literacy.
    • E-Governance, Utilize Technology to Streamline Government Services: Enhancing accessibility, efficiency, and transparency while boosting citizen engagement.
    • E-Kranti: Platforms like MyGov.in facilitate the electronic delivery of government services to citizens, prioritizing accessibility and operational efficiency.
    • Information for All: Digitizing government records for online accessibility and promoting open data initiatives to drive innovation and development.
    • Electronics Manufacturing: Encouraging local electronics manufacturing to reduce imports, create jobs, and support digital economic growth through manufacturing clusters and investment incentives.
    • Information Technology (IT) for Jobs: Enhancing youth IT skills to meet growing industry demands through programs like Digital Literacy Mission and Skill India, focusing on skill enhancement and IT sector employment.
    • Early Harvest Programs: Including specific projects addressing immediate digital needs, such as online access to school certificates, digital attendance, and Wi-Fi in public spaces.

What are the Various Digital India Initiatives Taken for Digital India?

  • Aadhaar: A biometric identification system that assigns unique 12-digit identity numbers to residents.
  • BharatNet: A project aimed at providing high-speed broadband connectivity to villages, enabling digital services in rural areas.
  • Startup India: An initiative to promote entrepreneurship and support startups through incentives, funding, and mentoring.
  • e-NAM: An online trading platform connecting agricultural markets, facilitating efficient sale of produce.
  • Digital Locker: A cloud-based platform for securely storing and accessing important documents digitally.
  • BHIM UPI: A digital payment system enabling secure peer-to-peer transactions using smartphones.
  • eSign Framework: Allows online signing of documents using digital signatures.
  • MyGov: A citizen engagement platform facilitating participation in governance and policy discussions.
  • e-Hospital: Digitized hospital services, including online registration and access to health records.
  • SWAYAM
  • UMANG App
  • Smart Cities Mission
  • Digital India Act (DIA), 2023: The proposed act aims to replace the outdated IT Act of 2000, adapting to India's growing internet user base, technological advancements, and new digital challenges. The DIA provides guidelines for the responsible adoption of emerging technologies like AI and blockchain, encouraging innovation while upholding ethical standards.

What are the Challenges and Way Forward Concerning Digital India?

  • Bridging the Digital Divide:
    • Implement initiatives like the PM-WANI scheme to establish public Wi-Fi networks, targeting 2 million hotspots by 2024.
    • Invest in 5G infrastructure, aiming for 40% population coverage by 2025.
  • Digital Literacy:
    • Low digital literacy remains a challenge. A 2021 report by IAMAI revealed that only 34% of India's population is considered digitally literate.
    • Enhance digital literacy programs through initiatives like the Pradhan Mantri Gramin Digital Saksharta Abhiyan to train 60 million rural households by 2023.
    • Integrate digital literacy programs into school curricula, aiming to raise the digitally literate population from 34% to 50% by 2025.
  • Cybersecurity And Data Privacy Concerns:
    • India faced over 1.1 million cybersecurity incidents in 2020 according to CERT-In.
    • The India Digital Personal Data Protection Act 2023 (DPDPA) is a significant legislation aiming to safeguard individuals' privacy in the digital age.
    • Strengthen cybersecurity through the implementation of the National Cyber Security Strategy, targeting a 50% reduction in cybercrime incidents by 2026.
  • E-Governance Challenges:
    • Implement a unified digital identity system for all government services by 2024.
    • Increase the number of services available through the UMANG app from 1,251 to 2,500 by 2025.
  • Skills Gap:
    • The NASSCOM FutureSkills report suggests that 20% of Indian tech professionals lack the required digital skills for future jobs.
    • Address the skills gap through a national digital skills program, aiming to upskill professionals in emerging technologies to meet the demand for 30 million digitally skilled professionals by 2026.

Drishti Mains Questions:

Examine the Digital India initiatives, including the challenges they face and the corresponding measures required to address these challenges effectively.

UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

GS3/Economy

Issue of Urban Finance and 16th Finance Commission

Why in News?

Recently, developments concerning the Finance Commission (FC) in India highlight critical issues regarding fiscal decentralisation, particularly focusing on urban areas and their financial sustainability within the federal structure. The World Bank has estimated that USD 840 billion is needed for basic urban infrastructure in the next decade.

What are the Financial Sustainability Issues with the Urban Areas?

  • Urbanisation Challenges: India's urban areas, which contribute 66% of India’s GDP and about 90% of total government revenues, face immense infrastructure and financial challenges. Despite being crucial economic hubs, cities receive inadequate fiscal support intergovernmental transfers (IGTs) constituting only 0.5% of GDP impacting their ability to provide essential services and maintain infrastructure.
  • Financial Devolution Issues: The devolution of funds to Urban Local Bodies (ULBs) is significantly lower than other developing nations. For instance, South Africa allocates 2.6%, Mexico 1.6%, the Philippines 2.5%, and Brazil 5.1% of their GDPs to their cities. This shortfall affects urban productivity and quality of life, exacerbated by the introduction of the Goods and Service Tax (GST) which has reduced ULBs' own tax revenues.
  • Draining Resources: An RBI survey of 221 municipal corporations (2020-21) revealed that more than 70% of these corporations saw a decline in revenues while in contrast, their expenditure rose by almost 71.2%. The RBI report also highlights the limited coverage of property tax and its failure in shoring up municipal corporation revenues.
  • Decline in Grants: Experts argue that GST not only ended octroi but also severely impacted the businesses of many small entrepreneurs, resulting in a significant decline in tax revenue for urban local bodies. Previously almost 55% of the total revenue expenditure of urban centres was met by octroi which has now significantly reduced.
  • Other Issues: Census Data Concerns: The absence of updated census data (since 2011) poses a challenge in accurately assessing the urban population and its needs. Policy Distortions: Parallel agencies and schemes, such as MP/MLA Local Area Development Funds, undermine the financial autonomy of local governments, distorting the intended federal structure and complicating urban governance and service delivery.

What are the Major Terms of Reference for the 16 Finance Commission?

  • Division of Tax Proceeds: Recommending the distribution of taxes between the Union Government and the States under Chapter I of the Constitution. This includes the allocation of shares among the States from these tax proceeds.
  • Principles for Grants-in-Aid: Establishing the principles governing grants-in-aid to the States from the Consolidated Fund of India. This encompasses determining the amounts to be provided to the States as grants-in-aid, specifically under Article 275 of the Constitution.
  • Enhancing State Funds for Local Bodies: Identifying measures to enhance the Consolidated Fund of a State. This is aimed at supplementing the resources available to Panchayats and Municipalities within the State, based on recommendations made by the State's own Finance Commission.
  • Evaluation of Disaster Management Financing: The Commission may review the current financing structures related to Disaster Management initiatives. This involves examining the funds created under the Disaster Management Act, 2005, and presenting suitable recommendations for improvements or alterations.

What are the Steps Needed for Better Urban Finance?

  • Strengthening Municipal Revenue: All Finance Commissions have recognized the need to augment property tax revenue to improve municipal finances. For example, the 12 Finance Commission encouraged the use of the Geographical Information System (GIS) and digitization to improve property tax administration.
  • Modernize Tax Administration: Outdated systems lead to inefficiencies and leakages. Local bodies can implement digital platforms for property tax assessment, e-filing, and online payments, which improves transparency, convenience for citizens, and boosts collection rates.
  • Explore User Charges for Specific Services: Instead of a blanket tax structure, some services can have user charges. This can apply to parking, waste collection for bulk generators, or recreation facilities.
  • Strategic Property Management: Local bodies often hold underutilized properties. These can be monetized through public-private partnerships (PPP) for developing commercial spaces, markets, or parking lots.
  • Promote Local Businesses and Economic Development: A thriving local economy translates to higher tax revenue for local bodies. Initiatives can include streamlining business licenses, offering tax breaks for startups, or creating innovation hubs.

Conclusion

The ongoing work of the 16 Finance Commission is pivotal in addressing these challenges by revisiting fiscal devolution principles, updating methodologies based on current urbanization dynamics, and recommending substantial increases in IGTs to urban areas. The implications of these recommendations will be far-reaching, impacting India's economic growth trajectory, social equity goals, and environmental sustainability efforts in its urban centers. Effective implementation will require concerted efforts from Union and State governments to align policies and ensure sustainable urban development in the country.


GS2/International Relations

Global INDIAai Summit

Why in news?

The Global INDIAai Summit, held at Bharat Mandapam in New Delhi, has concluded successfully. This landmark event brought together experts, policymakers, and enthusiasts to discuss the future of Artificial Intelligence (AI) in India and globally. In another development, the International Monetary Fund (IMF) has launched an Artificial Intelligence Preparedness Index (AIPI) Dashboard, tracking the AI readiness of 174 economies globally.

What are the Key Highlights and Outcomes of the Summit?

Global AI Discourse:

  • India emphasized making AI accessible to all, irrespective of socio-economic background.
  • Discussions focused on India's unique needs in AI development, aiming for global leadership.
  • The summit provided a platform for Global South countries to express their AI-related concerns and aspirations, acknowledging India's role in bridging the gap with the Global North.

INDIAai Mission Focus:

  • The summit showcased India's commitment to building an inclusive AI ecosystem through the INDIAai Mission.
  • Sessions highlighted core areas like compute capacity, foundational models, datasets, application development, future skills, startup financing, and safe AI.
  • Discussions covered aspects such as developing multi-Large Language Models (LLM) models, platformization of AI-ready data, and creating a partner ecosystem.

Global Partnerships:

  • Collaborative AI on Global Partnership (CAIGP) and Global Partnership on Artificial Intelligence (GPAI) members worked to bridge the global AI divide.
  • GPAI, with 29 member countries including India, aims to support research and activities on AI-related priorities.
  • India, as GPAI's Lead Chair in 2024, is convening global AI experts to discuss key issues and promote trustworthy AI.

Startup Ecosystem Support:

  • Rs. 2,000 crore from the INDIAai Mission's budget was allocated to support Indian startups developing AI solutions.
  • Plans were made to provide subsidized GPU infrastructure access for startups.
  • Strategies to address key issues faced by AI startups, including access to datasets and skill development, were highlighted.

AI Education:

  • The summit stressed the need for age-appropriate AI learning environments to promote widespread AI literacy.

Sector-Specific Insights:

  • Discussions explored AI applications in AgriStack, data-driven credit disbursement, and AI's role in improving government services.
  • Emphasis was placed on legal frameworks, dataset platforms, and data management in governance.

Ethical and Human-Centric AI:

  • The summit reiterated commitments to fostering trustworthy and human-centric AI development.
  • Participants recognized risks posed by AI systems and emphasized responsible development.
  • The summit recalled commitments to OECD and UNESCO Recommendations on AI ethics.

What is the Artificial Intelligence Preparedness Index (AIPI)?

  • AIPI evaluates countries based on digital infrastructure, human capital, labor policies, innovation, integration, and regulation.
  • Countries with advanced digital infrastructure tend to score higher on the Index.
  • The AIPI categorizes countries into Advanced Economy (AE), Emerging Market Economy (EM), and Low-Income Country (LIC).

UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Read more: Global Partnership on Artificial Intelligence (GPAI) Summit

Drishti Mains Question:

Q. Discuss the importance of global partnerships, such as the Global Partnership on Artificial Intelligence, in overcoming the global AI divide. What role does India play in these partnerships?


GS4/Ethics

NHRC Notice to Odisha Govt Over Custodial Death

Why in news?

Recently, the National Human Rights Commission (NHRC) has issued a notice to the Odisha government, requiring an explanation as to why the Commission should not recommend a payment of monetary compensation to the next of kin of a person, who allegedly died in police custody.

What is Custodial Death?

Custodial death refers to a death that occurs while a person is in the custody of law enforcement officials or a correctional facility. It can occur due to various causes such as the use of excessive force, neglect, or abuse by the authorities.

Judicial Pronouncements on Custodial Death:

  • Kishore Singh Vs. State of Rajasthan (1981): The Supreme Court held that the use of third degree by the police is violative of Article 21 of the Constitution of India.
  • Nilabati Behera vs. State of Orissa (1993): State is liable to pay compensation for custodial deaths resulting from police negligence or brutality, recognizing the state's responsibility for protecting the right to life.
  • Joginder Kumar v. State of Uttar Pradesh (1994): The Supreme Court dealt with violation of human rights because of indiscriminate arrests. They referred to the recommendations made in the Third Report of the National Police Commission that police should avoid arrest provided only in heinous offence.
  • D.K. Basu vs. State of West Bengal (1997): The Supreme Court laid down specific guidelines to prevent custodial torture and deaths, including requirements for arrest memos, the right to medical examination, and access to legal counsel.

What are the Ethical Concerns Associated with Custodial Deaths?

  • Violates Human Rights and Dignity: Every person possesses inherent dignity and deserves to be treated with respect and fairness. Custodial violence violates this fundamental principle by inflicting physical and psychological harm, stripping individuals of their dignity, and denying them basic human rights.
  • Undermines Rule of Law: It undermines the core principles of the rule of law and due process. Law enforcement officers are tasked with upholding and enforcing the law, yet engaging in violence directly contradicts the fundamental principles of justice, equality, and the safeguarding of human rights.
  • Presumption of Guilt: It undermines the foundational principle of "innocent until proven guilty". Subjecting individuals to torture before they have been convicted of a crime violates their fundamental rights to a fair trial and due process.
  • Opposing Professionalism and Integrity: Police officers and authorities are expected to maintain high ethical standards, which include professionalism, integrity, and a commitment to respecting human rights. Custodial violence breaches these ethical principles and stains the reputation of the profession overall.

What Measures can be Taken to Prevent Custodial Torture?

  • Strengthening Legal Systems: Strengthen laws against torture and ensure that they are strictly enforced.
  • Ensuring prompt and impartial investigations into allegations of custodial torture.
  • Holding perpetrators accountable through fair and expeditious trials.
  • Police Reforms and Sensitisation: Improving police training programs to uphold human rights and dignity.

Empowering Civil Society and Human Rights Organisations:

  • Active advocacy by civil society organizations for victims.
  • Providing support and legal aid to victims and their families.
  • Collaborating with international human rights bodies and organisations to seek redress and justice.
UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly
UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

Drishti Mains Question:

Q. What are the Ethical concerns associated with Custodial Deaths? Discuss the measures that can be taken to prevent them.


GS3/Environment

NITI Aayog Panels to Achieve Net-Zero Goal

Why in news?

Recently, NITI Aayog has formed dedicated multi-sectoral committees to prepare a policy design and create a roadmap for achieving its goal of becoming a net-zero economy by 2070. This initiative comes three years after India declared its ambition to become a net-zero economy by 2070.

What are the Key Focus Areas of the Working Groups Formed by the NITI Aayog?

About: NITI Aayog has formed 6 working groups focusing on developing policy formats, working models, and transition pathways for core sectors such as macroeconomic implications, climate finance, critical minerals, and social aspects of energy transition. Additionally, it will establish sectoral committees for transport, industry, buildings, power, and agriculture.

The 6 Net-Zero Working Groups:

  • Macroeconomic Implications:
    • Examine the implications of net-zero pathways on macroeconomic indicators and propose aligned monetary and fiscal policies.
  • Climate Finance:
    • Estimate India's needs for mitigation and adaptation, and identify potential sources of finance.
  • Critical Minerals:
    • Research and develop strategies for domestic manufacturing and supply chain management of critical minerals.
  • Social Aspects of Energy Transition:
    • Assess the social impacts of the energy transition and suggest strategies to mitigate them.
  • Policy Synthesis:
    • Compile reports from sectoral committees and create a consolidated policy handbook.
  • Sectoral Committees:
    • Devise transition pathways for power, industry, buildings, transport, and agriculture sectors.

Expected Outcomes:

The deadline for all the working groups to submit their action plans is October 2024. The NITI Aayog report is anticipated to serve as a policy handbook for all central ministries to formulate climate-resilient and adaptive policies in line with India's net-zero target by 2070.

What is Net-Zero Target?

Net Zero pertains to achieving a balance between carbon emissions produced and carbon removed from the atmosphere. This equilibirum, often referred to as carbon neutrality, does not entail reducing emissions to zero. Increasing absorption of emissions can be achieved by creating more carbon sinks like forests. Implementing futuristic technologies such as carbon capture and storage is essential. Over 70 countries have pledged to reach net-zero emissions by 2050.

UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

What are India's Initiatives to Achieve Net Zero Target?

National Action Plan on Climate Change aims to raise awareness among various stakeholders on climate change threats and countermeasures. India has committed to achieving net zero emissions by 2070 at COP-26 Glasgow Summit through its 'Panchamitra' climate action plan, which includes goals like reaching 500 GW of non-fossil energy capacity by 2030 and reducing carbon intensity by 45%.

UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly

What Steps can be Taken by India to Achieve Net-Zero Emission Target?

  • Enhancing Carbon Sequestration:
    • Expanding forest and tree cover, restoring degraded lands, and adopting low-carbon farming practices.
  • Building Climate Resilience:
    • Strengthening disaster management systems, investing in climate-proof infrastructure, and empowering local communities.
  • Driving India's Green Transportation Revolution:
    • Promoting electric vehicles, establishing charging infrastructure, and introducing innovative public transportation solutions.
  • Climate Smart Agriculture:
    • Promoting sustainable farming practices and integrating technology-driven solutions for optimal resource utilization.
  • International Collaboration:
    • Leveraging international partnerships for acquiring clean technologies and securing climate finance.

Drishti Mains Question:

Discuss India's commitment to achieve net zero emissions by 2070, along with the key policy measures and implications for sustainable development priorities in India.


The document UPSC Daily Current Affairs - 8th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly is a part of the UPSC Course Current Affairs & Hindu Analysis: Daily, Weekly & Monthly.
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