14-November-2024-Daily-Current-Affairs

DELIMITATION AND FEDERALISM IN INDIA

TOPIC: (GS2) INDIAN POLITY: THE HINDU

With the delimitation freeze ending in 2026, the issue has re-emerged as critical for India’s federal structure and ethno-linguistic balance. Concerns are growing over how recalibration could affect the representation of non-Hindi states, potentially shifting political influence toward Hindi-speaking regions.

What is Delimitation?

• Delimitation is the process of setting the number and boundaries of constituencies in each state for Lok Sabha and Legislative Assembly elections.
• It also designates seats for Scheduled Castes (SC) and Scheduled Tribes (ST) in these legislative bodies.
• This task is carried out by the Delimitation Commission, created by an Act of Parliament.

History of Delimitation in India

• Delimitation Commissions have been formed four times: in 1952, 1963, 1973, and 2002, based on the respective Delimitation Acts.
• The first delimitation exercise was conducted in 1950-51 by the President, assisted by the Election Commission.
• The last significant change to state-wise Lok Sabha seats was completed in 1976, based on the 1971 Census.

Key Amendments Related to Delimitation

• 42nd Amendment (1976): Froze the allocation of seats in the Lok Sabha to each state at 1971 levels until the year 2000. This prevented states with high population growth from gaining more seats.
• 84th Amendment (2001): Allowed adjustments of territorial constituencies based on the 1991 Census, without changing the total number of seats per state.
• 87th Amendment (2003): Updated delimitation based on the 2001 Census instead of the 1991 Census.

Constitutional Provisions for Delimitation

• Article 82: Allows Parliament to pass a Delimitation Act after each Census to adjust Lok Sabha constituencies.
• Article 170: Allows states to adjust their legislative assembly constituencies according to the Delimitation Act after every Census.

• Recent Developments: The current government has indicated it may reinitiate delimitation before 2029, sparking concerns about its impact on federalism.

Delimitation Concerns and Demographic Shifts

• Disparities in Total Fertility Rate (TFR): Non-Hindi states like Tamil Nadu, Kerala, and West Bengal have lower TFRs, while Hindi-speaking states such as Uttar Pradesh and Bihar maintain higher rates.
• Impact on Representation: As Hindi-speaking states grow faster in population, recalibration could decrease non-Hindi states’ representation, from 25% to 17% in Parliament, concentrating power in Hindi-speaking regions.

Federal Financial Disparities

• Resource Contribution vs. Allocation: States like Tamil Nadu and Maharashtra contribute more in taxes but receive a lower share of central funds, while less prosperous states like Uttar Pradesh receive a larger share.
• 16th Finance Commission Decision: Recent shifts to using the 2011 Census for fund allocation may further disadvantage developed, non-Hindi states in resource distribution.

Risks of Increased Discrimination

• Ethno-Linguistic Federalism: India’s federalism is based on diverse ethno-linguistic groups, each forming their own states. A shift in population balance risks altering this arrangement, increasing dominance by Hindi-speaking states.
• Potential for Layered Discrimination: Recalibration may reduce political influence for non-Hindi states, while these states continue to contribute more revenue to the Union, risking an imbalance in representation versus taxation.

Proposals to Address Delimitation Issues

• Extend the Freeze: Similar to past governments, extend the freeze on delimitation for another 25 years.
• Permanent Freeze: Avoid future reallocation of seats between states to maintain the current balance.
• Decentralized Federal Compact: Implement delimitation but balance it with decentralization by expanding state control over various subjects and limiting Union powers to defence, foreign policy, and currency.
• Proportional Seat Expansion: Keep the state-wise seat distribution the same but increase the number of seats per state to partially address population-based representation gaps.

Conclusion

India’s unity relies on maintaining a delicate federal balance, respecting each state’s identity within a pluralistic framework. Delimitation could disrupt this balance, favoring Hindi-speaking states and undermining India’s unique federal structure.

MANIPUR’S ONGOING CRISIS AND THE ROLE OF THE CENTRE

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The ethnic conflict in Manipur between the Meitei and Kuki-Zo communities has severely affected the state since May 2023, resulting in significant loss of life and displacement. This situation highlights the importance of proactive intervention by the central government to bring about stability and resolution.

Background of the Conflict

• The conflict, primarily between the Meitei and Kuki-Zo communities, began in May 2023.
• Over 250 people have lost their lives, and around 60,000 have been displaced.
• The violence is rooted in complex ethnic tensions in the northeast, which have historically flared up over various issues.

Recent Incidents

• On November 11, a clash in Jiribam district led to the death of ten armed militants in an encounter with CRPF and police.
• Violence has particularly impacted vulnerable groups, with women, children, and the elderly bearing much of the suffering.
• Reports surfaced of an attack where three women and three children, including an infant, were allegedly abducted, and two elderly people were killed.
• Two of the ten weapons seized from the militants had been looted from the police, highlighting serious governance challenges.

Role of the State Government

• The Manipur state government, led by Chief Minister N. Biren Singh, has struggled to control the violence.
• Many in the Kuki community view the government as biased, affecting the administration’s credibility in peace-building efforts.

Central Government’s Responsibility

• The Ministry of Home Affairs (MHA) conducted peace talks with representatives of both communities in October, but no significant progress was achieved.
• The Kuki groups have requested a separate Union Territory with its own legislature, which would involve a division of Manipur.
• The Kuki community places its trust in central forces and the Indian Army for security, despite recent incidents involving the CRPF.

Need for a Political Solution

• The border areas in Manipur are challenging to police due to the presence of multiple armed groups.
• Sustainable peace can only be achieved through a political solution that fosters coexistence among communities.
• The central government, with its resources and influence, is in a unique position to mediate and encourage both communities to work toward peace.

Conclusion

The ongoing crisis in Manipur demands urgent attention and action from the central government. While recent violence marks a setback, the Centre must take decisive steps to foster dialogue and understanding between the Meitei and Kuki communities. Only a balanced and inclusive approach can create a path toward lasting peace in the region.

RISE IN MUNICIPAL CORPORATIONS’ TAX REVENUE SHARE

TOPIC: (GS3) INDIAN ECONOMY: THE HINDU

Municipal corporations in India have recently boosted revenue generation from their own taxes, fees, and charges. An RBI report notes this shift towards financial self-reliance, especially in states like Karnataka, Telangana, and Tamil Nadu.

Revenue Sources of Municipal Corporations

• Primary Sources of Revenue: In FY24, about 50% of municipal corporations’ income comes from their own sources, such as taxes, user fees, and service charges.
• An additional 25% of revenue is obtained through grants provided by the Central and State governments. The remainder is from rentals, compensations, and investment income.
• Improvements in Self-Generated Revenue: The recent RBI report examines fiscal trends of 232 municipal corporations from 2019-20 to FY24. The report notes a rise in revenue from municipal taxes and fees since FY20, with a corresponding decrease in dependency on government grants.

Short-Term Revenue Trends

• Revenue Components from FY20 to FY24: Since FY20, municipal corporations have increased their own tax revenue from 27.3% to 30%. Fees and charges also grew from 18.7% to 20.2%. Government grants, contributions, and subsidies saw a decline from 27.9% to 24.9%.
• Stability in Other Revenue Streams: Compensation and rental income have remained constant at 13% and 6%, respectively. Interest from loans and investments contributes around 1-2% of the total revenue.
• Long-Term Revenue Trends: Before GST, 43% of municipal corporations’ revenue was from their own tax sources. In FY24, this declined to 30%, indicating a reduced capacity for generating tax revenue over the long term.
• Although there’s been a short-term improvement, the long-term decline suggests challenges in maintaining revenue independence.

State-Wise Revenue Share

• In FY24, Karnataka (53.8%), Telangana (50.3%), and Tamil Nadu (44.3%) led in terms of own tax revenue, with Jharkhand following at 44%.
• States with the lowest ratios include Rajasthan, Odisha, and Uttarakhand.

Expenditure Quality

• Shifts in Expenditure Focus: Municipal corporations have increasingly focused on capital expenditure. The share of revenue expenditure decreased from 43.9% in 2019-20 to 38.5% in FY24.
• Capital expenditure has risen, from 56.1% to 61.5%, indicating enhanced investment in infrastructure and development projects.

Taxing Powers and Revenue-Generating Capacity of Municipalities in India

·       Taxing Powers: Municipalities have authority to levy local taxes, such as property tax, water tax, and local entertainment tax, which contribute significantly to their revenue.

·       Revenue from Property Tax: Property tax is the primary source of revenue for most municipalities, often generating a substantial portion of their own revenue due to its broad applicability.

·       User Charges and Fees: Municipalities collect fees for services like water supply, waste management, and public infrastructure usage, boosting their revenue alongside taxes.

·       Dependence on Grants: While municipalities generate revenue independently, they still rely on grants from the State and Central governments, especially through schemes and Finance Commission recommendations.

Constitutional Provisions Related to Municipal Taxation in India

·       Article 243X: Empowers state legislatures to authorize municipalities to levy, collect, and appropriate taxes, duties, tolls, and fees. It provides the legal basis for municipalities’ taxing powers and allows states to specify which taxes they can impose.

·       Article 246 (Seventh Schedule): Specifies the powers to levy taxes distributed between the Union and State Lists. The State List includes certain taxes (like property tax and entertainment tax) that state governments can delegate to municipalities.

Measures to Strengthen Municipalities

• Expanding Revenue Sources: Municipalities should diversify their revenue by optimizing property taxes, implementing user charges for services like water and waste management, and introducing newer taxes such as vacant land tax or green cess.

• Enhanced Grants and State Support: Regular, targeted grants from the Central and State Finance Commissions, along with increased budget allocations, can stabilize municipal finances and incentivize effective governance.
• Encouraging Public-Private Partnerships (PPPs): By partnering with private entities, municipalities can attract investment in urban infrastructure, reducing dependence on state and central funds.

Conclusion

Municipal corporations in India are gradually building fiscal independence by increasing revenue from local sources. Southern states lead in self-generated revenue, although challenges in the long term require continued efforts to maintain this growth trend.

INDIA’S AGRICULTURAL EXPORTS AND SUSTAINABILITY CONCERNS

TOPIC: (GS3) AGRICULTURE: THE HINDU

India has experienced rapid growth in agricultural exports, significantly contributing to its economy. However, the increasing focus on exports, especially for commodities like tea and sugar, raises concerns about ecological and social sustainability.

Growth in Agricultural Exports

• India’s agricultural exports surged from $8.7 billion in 2004-05 to $53.1 billion in 2022-23, a six-fold increase.
• Export growth enhances revenue, foreign exchange reserves, and trade options, supporting India’s economic development.

Defining Sustainability in Agriculture

• True sustainability in agriculture includes ecological, economic, and social dimensions, backed by effective policies.
• Sustainability considerations should apply throughout the supply chain, including pre-sowing, on-farm production, and post-harvest stages.

Commodity-Specific Sustainability Issues

Tea Industry

• Export and Production: India is a leading tea producer and the world’s fourth-largest exporter, with major markets in the UAE, Russia, Iran, the U.S., and the U.K.
• Ecological Challenges: Tea plantations often border forests, causing human-wildlife conflicts, particularly with elephants. Chemical pesticide use is high, posing risks to both the environment and human health due to residual chemicals in tea.
• Labor Concerns: Over half of tea plantation workers are women, often facing low wages, unsafe working conditions, and inadequate protective gear despite labor regulations like the Plantations Labour Act.

Sugar Industry

• Production and Export: India is the second-largest sugar producer globally, with exports growing by nearly 300% from FY 2013-14 to FY 2021-22.
• Water-Intensive Crop: Sugar cane requires extensive water, using 1,500-2,000 liters per kilogram of sugar. It consumes 60% of India’s total irrigation water, impacting other crops and straining groundwater.
• Social Challenges: Workers in the sugar industry face harsh working conditions, long hours, and debt cycles. Rising temperatures in regions like peninsular India add to the physical and mental strain on workers.

Millet as a Sustainable Alternative

• Resilient Crop: Millets are hardy crops that require minimal water and inputs, promoting soil health and nutritional security.
• Growing Export Market: India’s millet exports reached $75.45 million in 2022-23, indicating their potential as a sustainable alternative in the global market.

Conclusion

India’s agricultural export growth presents both opportunities and sustainability challenges. Addressing the ecological impacts, improving labour conditions, and promoting resilient crops like millets are vital steps towards a sustainable agricultural economy. Ensuring that the economic benefits reach local producers while safeguarding natural resources is essential for sustainable growth in both domestic and global markets.

DOMESTIC SYSTEMICALLY IMPORTANT BANKS (D-SIBS)

TOPIC: (GS3) INDIAN ECONOMY: INDIAN EXPRESS

The Reserve Bank of India (RBI) has retained three major Indian banks as Domestic Systemically Important Banks (D-SIBs) for the year 2024. These banks are the State Bank of India (SBI), HDFC Bank, and ICICI Bank.

What are D-SIBs?

• Definition: D-SIBs are banks that are deemed to have a significant impact on the financial system. If these banks fail or experience financial distress, it could cause disruptions in banking services and economic activities.
• Key Banks: The RBI has identified SBI, HDFC Bank, and ICICI Bank as D-SIBs. These banks continue to hold their positions under the same classification as the 2023 list.

Why are D-SIBs Important?

• Systemic Importance: Some banks become systemically important due to their size, interconnectedness, and role in cross-jurisdictional activities. These banks provide essential services to the economy, and their failure could have widespread consequences.
• “Too Big to Fail”: D-SIBs are often seen as too large to fail, with the expectation that the government would intervene to prevent their collapse during a crisis.
• Policy Considerations: The RBI monitors these banks closely, requiring them to maintain higher capital reserves to ensure they can withstand financial stress without impacting the economy.

Classification and Capital Requirements for D-SIBs

• Bucketing System: Based on their systemic importance score, D-SIBs are divided into different buckets. Each bucket reflects the bank’s level of importance and determines the additional capital requirements.
  • SBI: Placed in Bucket 4 with the highest systemic importance.
  • HDFC Bank: Placed in Bucket 3.
  • ICICI Bank: Placed in Bucket 1.
• Capital Surcharge: D-SIBs are required to maintain additional capital as a safeguard against potential financial instability.
  • SBI: Additional common equity requirement of 0.80% of Risk Weighted Assets (RWA).
  • HDFC Bank: Additional requirement of 0.40%.
  • ICICI Bank: Additional requirement of 0.20%.

• The surcharge for SBI and HDFC Bank will increase from April 1, 2025, to 0.60% and 0.20%, respectively.

Process of Identifying D-SIBs

• Sample Selection: Only the larger banks, based on size and economic significance, are considered for the assessment. Smaller banks are typically excluded from the evaluation.
• Systemic Importance Score: Banks are assigned a systemic importance score based on various factors, including their size, complexity, and interconnectedness in the financial system. If a bank’s score exceeds a certain threshold, it is classified as a D-SIB.

• Graded Capital Requirements: The higher the systemic importance, the larger the capital surcharge a bank must maintain. This additional capital helps ensure that the bank can absorb losses without affecting the broader financial system.

Importance of D-SIBs in the Financial System

• Financial Stability: The functioning of D-SIBs is crucial for maintaining financial stability. These banks provide essential banking services, such as credit, deposits, and payment systems, which are vital for the smooth functioning of the economy.
• Government Support: The perception of these banks as “Too Big to Fail” means that in times of crisis, there is an expectation of government intervention to protect them. However, this also creates moral hazard risks, as these banks might take on higher risks, believing they will be bailed out if needed.

Global Systemically Important Banks (G-SIBs)

• Global List: In addition to domestic systemically important banks, there are global systemically important banks (G-SIBs) identified by the Financial Stability Board (FSB). As of 2023, 29 G-SIBs have been identified, including global giants such as JP Morgan Chase, Bank of America, and HSBC.
• Capital Buffer for G-SIBs: G-SIBs are also subject to additional capital requirements based on their global activities and their impact on the global financial system.

Conclusion

D-SIBs play a significant role in India’s banking system, with their stability directly impacting the economy. The RBI’s regulation of these banks through higher capital requirements ensures that they remain resilient in times of financial stress, safeguarding the economy and its essential banking

INDIA SUCCESSFULLY TESTS LONG RANGE LAND ATTACK CRUISE MISSILE (LRLACM)

TOPIC: (GS3) SEQURITY: PIB

The Defence Research and Development Organisation (DRDO) recently achieved a significant milestone by successfully conducting the maiden flight test of its Long-Range Land Attack Cruise Missile (LRLACM).

Key Features and Capabilities:

• Complex Flight Manoeuvres: Capable of traveling at different speeds and altitudes, allowing it to adapt to a wide range of operational needs.
• Terrain-Hugging Flight Path: The missile follows low-level flight paths, making it difficult for enemy radar systems to detect and intercept.
• Precision Targeting: Ensures high accuracy in striking targets over long distances.
• Advanced Technology: Equipped with state-of-the-art avionics and software to ensure reliability and performance in combat situations.

• Purpose: LRLACM is designed for launch from both mobile ground-based systems and frontline naval ships, offering versatile deployment options across various platforms.

Development and Collaboration:

• Developed by DRDO: Created by DRDO’s Aeronautical Development Establishment in Bengaluru.
• Industry Collaboration: Involved partnerships with Bharat Dynamics Limited (BDL) in Hyderabad and Bharat Electronics Limited (BEL) in Bengaluru for development and production.
• Mission Mode Project: The missile’s development was fast-tracked as a Mission Mode initiative, approved under the Defence Acquisition Council (DAC) through the Acceptance of Necessity (AoN) procedure.

Strategic Significance:

• Enhanced Defence Capabilities: The successful flight test marks a major step in strengthening India’s defence, particularly in long-range precision missile technology.
• Strategic Advantage: Increases India’s deterrence capabilities by enabling high-accuracy strikes at long distances, bolstering security against potential threats.

Conclusion

The successful testing of the Long Range Land Attack Cruise Missile is a testament to India’s growing technological prowess in defence. With its innovative design, operational flexibility, and advanced capabilities, the LRLACM will significantly bolster India’s ability to carry out precision strikes, strengthening national security and defense preparedness.

GOTTI KOYA TRIBE

TOPIC: (GS2) INDIAN POLITY: PIB

Recently, the National Commission for Scheduled Tribes (NCST) has requested the Union Home Ministry, along with the governments of Chhattisgarh, Maharashtra, Andhra Pradesh, and Odisha, to submit a detailed report on the status of the Gotti Koya tribal community.

Key Facts About the Gotti Koya Tribe:

• Ethnicity: The Gotti Koya are a unique multi-racial and multi-lingual tribal group in India, with a diverse cultural background.
• Geographical Distribution: They primarily live in Telangana, Andhra Pradesh, Chhattisgarh, and Odisha.

Language:

• The Gotti Koya people speak Koya, a Dravidian language closely related to Gondi. Their language has also been significantly influenced by Telugu.

Occupation:

• The Koya practice Podu, a traditional form of shifting cultivation, often associated with forest areas. This method has raised concerns about its environmental impact versus its role in the economic survival of the tribe.
• They also engage in animal husbandry and gather minor forest produce for their livelihood.

Cultural Practices:

• Festivals: The most important festival celebrated by the Koya tribe is the Sammakka Saralamma Jatra, held once every two years during the full moon of Magha Masam (usually January or February). This event takes place at Medaram village in Warangal district, Telangana.

Social Structure:

• The Gotti Koya are divided into five sub-groups known as gotrams. Every member is born into a specific clan and remains part of it for life.
• The Koya community follows a patrilineal and patrilocal family structure. This means family lineage is traced through the father, and the family lives near the husband’s family after marriage.
• The nuclear family is the most common family type among the Koya.
• Monogamy is the predominant practice within the Koya community.

Issues of Recognition:

• While the Gotti Koya are recognized as Scheduled Tribes (ST) in Chhattisgarh, they have not been granted ST status in states like Telangana, where many have migrated over time.

VOYAGER 2 SPACECRAFT

TOPIC: (GS3) SCIENCE AND TECHNOLOGY: INDIAN EXPRESS

NASA’s Voyager 2 spacecraft, launched in 1977, continues to provide groundbreaking data on the outer planets, including recent insights into Uranus’ magnetic field, four decades after its historic flyby.

Key Information about Voyager 2:

• Launch Date: August 20, 1977, just weeks before its sister spacecraft, Voyager 1.
• Primary Mission: Study the outer planets of the solar system—Jupiter, Saturn, Uranus, and Neptune—and their moons. After completing its planetary exploration, it continued its journey into interstellar space.

Notable Achievements:

• Only Spacecraft to Visit Uranus and Neptune: Voyager 2 remains the only spacecraft to have flown past both Uranus and Neptune.
• Golden Record: It carries a phonograph record containing sounds and images from Earth, meant to communicate with potential extraterrestrial civilizations.

First Discoveries and Achievements:

• Study of Four Giant Planets: Voyager 2 is the only spacecraft to have studied all four of the solar system’s giant planets—Jupiter, Saturn, Uranus, and Neptune—up close.
• Jupiter: It discovered Jupiter’s 14th moon.
• Uranus: It discovered 10 new moons and two new rings around Uranus.
• Neptune: It discovered five moons, four rings, and the “Great Dark Spot” on Neptune.

Post-Primary Mission:

• After completing its planetary mission, Voyager 2 continued to travel into interstellar space.
• Interstellar Journey: It is the second spacecraft to enter interstellar space, joining Voyager 1 in 2018 as the only human-made objects to reach this vast, uncharted region between the stars.
• Current Position: Voyager 2 is the second most distant human-made object from Earth, following Voyager 1.

Voyager 2’s continued transmission of data offers valuable insights into the outer reaches of our solar system and beyond, solidifying its place in space exploration history.