GS Analyst: Daily Current Affairs

The issue of curbing "fake news" and misinformation on social media has once again come to the forefront in India. Following the Bombay High Court's decision to strike down a provision in the amended Information Technology (IT) Rules, 2021, which granted the government the authority to identify and flag fake news, a Parliamentary Panel on Communications and Information Technology has called for a review of mechanisms to tackle fake news.

What is Fake News?

• "Fake news" refers to information that is deliberately fabricated or manipulated to deceive the public, often spread through social media platforms or digital news outlets.
• While “fake news” lacks a legal definition in Indian law, the Information Technology Rules of 2021, amended in 2022, require intermediaries to prevent “misinformation or information which is patently false and untrue or misleading in nature” on their platforms. However, “misinformation” also remains undefined in law.
• It includes misleading content, false claims, and disinformation designed to sway public opinion, create confusion, or disrupt social and political harmony.
• Forms: Completely fabricated stories, doctored images or videos, and manipulated headlines.
• Impact: Fake news is of particular concern due to its potential to influence elections, fuel social unrest, and challenge public trust in institutions.

Causes for the Rise in Fake News:

• Internet and Social Media: The rise of social media platforms has made it easier for people to access news, but also harder to determine its credibility. Social media networks amplify the reach of fake news stories, often without adequate fact-checking mechanisms in place.
• Lack of Authenticity Checking: Many individuals share, like, or comment on news items without verifying their authenticity. This lack of scrutiny allows false or misleading information to spread quickly and widely.
• Absence of Codes of Practice for Social Media: Traditional news sources adhered to strict editorial guidelines and journalistic standards. In contrast, the internet and social media platforms often lack regulation and editorial oversight, enabling anyone to publish and share news without accountability.
• Stratified Organization of Fake News: Fake news is no longer an isolated issue but is increasingly organized and strategically disseminated. Political groups or influential organizations may intentionally spread fake news to manipulate public opinion, often targeting specific demographics.
• Vernacular Social Media Platforms: The growing popularity of vernacular social media platforms in India is another factor driving the spread of fake news. These platforms often lack the checks and balances necessary to filter out misinformation, contributing to the problem.

Threats Posed by Fake News:

• Political Threat: Fake news is often used by political parties to polarize voters, which can deepen social divisions and exacerbate tensions. This manipulation of public sentiment can disrupt the democratic process and destabilize societies.
• Economic Threat: Fake news can divert attention from critical economic issues and development priorities. When communal issues become the focus of political debate, economic growth is sidelined, and essential problems are ignored by the government.
• Societal Threat: Fake news has the potential to fragment the social fabric of society. It can foster long-lasting tensions between communities, leading to violence, enmity, and a breakdown in inter-community cooperation.
• International Threat: Deepfake technology, often used in misinformation campaigns, can target foreign governments or organizations to create political chaos. Countries like China and Russia have been accused of using such tactics to influence elections, disrupt political stability, or gain trade advantages.
• Loss of Faith in Media: The proliferation of fake news erodes trust in traditional media, including print, broadcast, and digital outlets. This undermines the role of the media as the "fourth estate" of democracy, weakening its power to hold governments accountable and reducing the public's access to accurate information.

Constitutional provisions in India:

• There is no specific law in India to deal with fake news but there are statutory and self-regulatory bodies to act against dissemination of misinformation. Free publication or broadcast of news in India flows from the fundamental right to freedom of expression as enshrined under Article 19 of the Constitution. However, there are certain legal recourses available for people affected by fake news.
• News Broadcasters Association (NBA): Complaints can be lodged with the News Broadcasters Association (NBA) which represents the private television news and current affairs broadcasters. It is funded by its over 60 members.
• The NBA is the credible voice of news broadcasters to the government.
• It is self-regulatory in nature and probes complaints against news broadcasters in a fair manner.
• Indian Broadcast Foundation (IBF):  IBF was created in 1999 to look into the complaints against contents aired by 24x7 channels.
• Over 650 news channels are in operation today in the country.
• Complaint against any broadcaster can be filed in English or Hindi to IBF online or offline for promoting smoking, abuse or any violent action.
• Broadcasting Content Complaint Council (BCCC): A complaint relating to objectionable TV content or fake news can be filed to the Broadcasting Content Complain Council if a broadcaster incites communal hatred, encourages violence against women or child abuse, airs contents having gory scenes of violence, promotes superstition or consumption of drugs and other contraband substances.

• Amended IT Rules, 2021: The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023, brought significant changes to the existing IT Rules, 2021. A key provision in the amendment (Rule 3(1)(b)(v)) expanded the definition of "fake news" to include content related to "government business."
  • Under these provisions, if the government’s Fact Check Unit (FCU) flagged any content that was deemed to be fake, false, or misleading regarding government-related information, social media platforms would be required to take action against the content.

• Defamation: Defamation suit is also a legal tool available in the case of fake news. If a person finds a fake news defamatory s/he can file a civil or criminal case for defamation.
• IPC Section 499 makes defamation a criminal offence. Section 500 provides for punishment for criminal defamation that can extend upto a jail term of two years with or without fine.

Tamil Nadu, one of India's pioneering states in wind energy generation, has long been a leader in installing wind turbines. However, many of its wind turbines, some over 30 years old, are becoming less efficient, prompting the state government to introduce the “Tamil Nadu Repowering, Refurbishment and Life Extension Policy for Wind Power Projects - 2024” to address the issue. However, the policy has faced opposition from wind energy generators, who have approached the Madras High Court, highlighting concerns that the policy does not adequately promote wind energy generation.

Wind Energy Capacity and Potential in India

• India is one of the leading countries in the world for wind energy, ranking fourth globally for installed wind energy capacity.
• According to the National Institute of Wind Energy (NIWE), India has the potential to generate up to 1,163.86 GW of wind power at 150 meters above ground level.
  • At the more typical turbine height of 120 meters, the wind energy potential stands at 695.51 GW, of which 68.75 GW is from Tamil Nadu.
• Currently, India is harnessing only about 6.5% of its wind potential at the national level, with Tamil Nadu utilizing around 15% of its own wind energy potential.
  • The states of Gujarat, Tamil Nadu, Karnataka, Maharashtra, Rajasthan, and Andhra Pradesh collectively contribute 93.37% of India’s installed wind energy capacity.
  • Tamil Nadu, in particular, has been a major contributor to India’s wind energy capacity.
    • With over 10,600 MW of installed wind energy capacity, it holds the second-largest installed wind power capacity in the country, behind Gujarat.
    • However, much of the state's wind capacity consists of small turbines (less than 1 MW), some of which are over 30 years old.

What Is Repowering and Refurbishing?

• Wind turbines have a finite lifespan, and many older turbines, particularly those installed before 2000, are becoming inefficient. To address this, the wind energy sector employs two key processes:
• Repowering: This involves replacing old, small-capacity turbines with newer, larger-capacity ones. For example, turbines that are less than 2 MW in capacity can be replaced with turbines that have a capacity of 2 MW or more. Repowering can increase the power output of a site and improve efficiency.
• Refurbishing: This process involves upgrading existing turbines without replacing them entirely. Refurbishment can include replacing blades, increasing the height of the turbines, or installing more powerful gearboxes, thus enhancing the energy generated.
• Life Extension: Older turbines that are still operational but have reduced efficiency can be given a life extension by updating components or improving safety measures to extend their operational lifespan.
• The Ministry of New and Renewable Energy (MNRE) and National Institute of Wind Energy (NIWE) have estimated that repowering has the potential to generate an additional 25.4 GW if smaller, underperforming turbines (less than 2 MW) are replaced or refurbished.

The 192-day Char Dham Yatra in Uttarakhand, comprising Badrinath-Kedarnath-Gangotri-Yamunotri shrines located about 3,000 metres above sea level, witnessed death of 246 pilgrims this year because of health-related complications.

About

• Char Dham, is a four-part pilgrimage tour of Hindu religious sites in India.
• The Chardham Yatra Uttarakhand includes four holiest destinations of the Hindus:
  • Badrinath: Badrinath, home to the sacred Badrinarayan Temple, is dedicated to Lord Vishnu. 
  • Kedarnath: Situated approximately 11758 feet (3584 metres) above sea level, it is part of Uttarakhand's Rudraprayag district. Amidst the snow-covered, towering mountains close to Chorabari Glacier, the Mandakini River flows in front of the Kedarnath shrine. 
  • Gangotri: The temple of Gangotri is located close to the "Bhagirath Shila," the sacred rock where King Bhagiratha offered prayers to Lord Shiva. The Ganga river's true source is 19 kilometres from Gangotri, at Gaumukh in the Gangotri glacier, which is only reachable by trek. 
  • Yamunotri: Yamunotri is situated at an altitude of 3,293 meters above sea level and is the source of the Yamuna River, one of the most important rivers in northern India. The temple dedicated to the goddess Yamuna is the main attraction of the town and is surrounded by natural hot water springs and beautiful mountain ranges.

Government Initiatives

• Char Dham Pariyojana: The Ministry has taken up separate programme for connectivity Improvement for Char-Dham (Kedarnath, Badrinath, Yamunothri & Gangothri) in Uttarakhand. 
• eSwasthya Dham portalis a portal which helps in monitoring the Char Dham Yatra pilgrim's health parameters. As a result, it ensures the smooth journey of pilgrims visiting Yamunotri, Gangotri, Kedarnath, and Badrinath.

The Securities and Exchange Board of India (SEBI), the regulator for the securities market in India, has proposed the introduction of a new investment product. This product aims to cater to a specific group of investors who are looking for a product with a higher risk-return profile than traditional Mutual Funds (MFs) but are unable to afford the high minimum investment required by Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs).

About the new product

• This new product will be a regulated investment vehicle designed to fill the gap between Mutual Funds and PMS/AIFs, offering more flexibility for investors while maintaining necessary safeguards to manage risks.
• Need for This New Investment Product: Currently, investment vehicles in India are classified primarily into three categories based on the amount of investment required:
  • Mutual Funds (MFs): These are designed for retail investors with a low minimum ticket size, typically Rs 500. MFs are low-risk investments that are regulated by SEBI and provide relatively safer returns.
  • Portfolio Management Services (PMS): These are targeted at High Net-Worth Individuals (HNIs) who can afford a minimum investment of Rs 50 lakh. PMS generally involves personalized investment strategies with more flexibility and higher risk.
  • Alternative Investment Funds (AIFs): These funds require a minimum commitment of Rs 1 crore and are typically focused on providing high returns through investments in non-traditional assets such as private equity or venture capital.
• The gap between MFs and PMS/AIFs has left a group of investors who want higher returns than MFs but cannot afford the high entry threshold of Rs 50 lakh for PMS or Rs 1 crore for AIFs. To address this need, SEBI is proposing the creation of a new product that sits between these two categories in terms of risk and ticket size.

Mutual Funds (MFs), Portfolio Management Services (PMS), and Alternative Investment Funds (AIFs)

• Mutual Funds (MFs): Mutual Funds are investment vehicles where a pool of money from multiple investors is gathered and managed by a professional fund manager. These funds are invested in a diversified portfolio of stocks, bonds, or other securities, depending on the type of Mutual Fund (e.g., equity funds, debt funds, hybrid funds).
• Types of Mutual Funds:
  • Equity Funds: Primarily invested in stocks of companies.
  • Debt Funds: Invest in bonds or fixed income securities.
  • Hybrid Funds: Invest in both stocks and bonds.
• Portfolio Management Services (PMS): Portfolio Management Services (PMS) are tailored investment services provided by professional fund managers for individual investors.
• Types of PMS:
  • Discretionary PMS: The fund manager makes investment decisions on behalf of the investor.
  • Non-Discretionary PMS: The investor makes the final decision on the investment choices, but the portfolio manager provides recommendations.
  • Ideal For: High-net-worth individuals (HNIs) or investors who want personalized investment strategies and have a significant amount of capital to invest.
• Alternative Investment Funds (AIFs): Alternative Investment Funds (AIFs) are investment vehicles that invest in non-traditional assets such as private equity, venture capital, hedge funds, real estate, commodities, and other alternative assets.

• Types of AIFs:
• Category I: Focus on investments in startups, social ventures, or infrastructure projects (e.g., venture capital funds).
• Category II: Funds that are not specified under Category I or III, and may include private equity or debt funds.
• Category III: Hedge funds that seek to generate high returns by using complex strategies like leverage, derivatives, etc.

Key Differences Between MFs, PMS, and AIFs

India has been rapidly scaling up its defence manufacturing capabilities, emerging as a growing player in the global defence market. One of the most notable successes in this area has been the Pinaka Multi-Barrel Rocket Launcher (MBRL), a sophisticated weapon system developed by the Defence Research and Development Organisation (DRDO).

What is Pinaka MBRL?

• The Pinaka MBRL is a powerful artillery weapon system designed to deliver a large volume of fire in a short time, targeting critical enemy positions with high accuracy.
• Developed by the DRDO, this rocket system is produced by a consortium of Indian companies, including Solar Industries, Larsen & Toubro, Tata, and Ordnance Factory Board.
• The system is capable of hitting targets up to 75 kilometers and beyond, with various variants catering to different battlefield requirements.
• The Pinaka system's impressive range, firepower, and precision have earned it the nickname "India’s HIMARS" (High Mobility Artillery Rocket System), drawing comparisons to the advanced artillery systems used by the U.S. Army.
• Key Features of the Pinaka System
  • Battle-Proven Accuracy: The Pinaka system offers precision, delivering heavy firepower with high positioning accuracy. It maintains one milliradian accuracy in both azimuth and elevation, allowing for pinpoint strikes on time-sensitive targets.
  • Speed and Efficiency: The system’s "shoot and scoot" capability enables it to quickly move after launching rockets, thus minimizing the risk of counter-battery fire. In just 44 seconds, it can fire 12 rockets, making it an effective tool for saturating enemy positions in a short time.
  • Advanced Features: The Pinaka rocket launcher is equipped with auto-levelling and stabilization mechanisms, ensuring it remains steady during firing. Its inertial navigation system allows for rapid and accurate targeting, programming all 12 rockets within 20 seconds.
  • Indigenous Components: One of the key strengths of the Pinaka system is its reliance on indigenous subsystems, developed within India. This not only enhances the system's operational reliability but also supports the country’s strategic goals of self-reliance in defence manufacturing.
• The Pinaka System vs. HIMARS
  • The Pinaka system is often compared to the High Mobility Artillery Rocket System (HIMARS), a similar weapon used by the U.S. Army.
  • While both systems are designed for long-range artillery fire, the Pinaka’s key differentiators lie in its cost-effectiveness and indigenous design, which make it an attractive option for countries seeking to modernize their artillery capabilities without incurring exorbitant costs.
• Comparative Features:
  • Range: Both systems offer long-range capabilities, but the Pinaka can strike targets up to 75 kilometers, while HIMARS can target areas even farther, depending on the specific ammunition used.
  • Flexibility: HIMARS is known for its modular design, capable of launching multiple types of rockets and missiles, including ATACMS (Army Tactical Missile System). The Pinaka, while highly versatile in its own right, focuses on multiple variants of rocket-based artillery for different battlefield needs.
  • Indigenous Development: While HIMARS is manufactured by Lockheed Martin, the Pinaka is 100% indigenous, developed by DRDO and produced by several Indian private sector companies, demonstrating India's growing capabilities in high-tech defence production.

In 2023, the Central government imposed a ‘Net Borrowing Ceiling’ (NBC) on the State of Kerala, limiting its borrowing capacity to 3% of the projected Gross State Domestic Product (GSDP) for FY 2023-24. This ceiling includes all borrowing avenues, such as open market loans, loans from financial institutions, and liabilities from the public account. Kerala has challenged this move in the Supreme Court, citing encroachment on its fiscal autonomy under Article 293 of the Constitution, leading to a significant legal and political dispute between the Centre and the State.

Borrowing Powers and Constitutional Provisions

• Article 293 of the Constitution: This article empowers States to borrow on the security of the Consolidated Fund of the State. While the Centre can regulate the extent of borrowing by States through law, it cannot arbitrarily restrict their borrowing power.
• Financial Responsibility and Budget Management (FRBM): The FRBM Act, 2003, along with its amendments, imposes a target of 3% of GDP as the fiscal deficit for both the Centre and States. The FRBM aims to curb borrowing to ensure fiscal discipline.
• Kerala’s Legal Challenge: Kerala argues that the Central government's imposition of borrowing restrictions violates the financial autonomy guaranteed under Article 293, undermining its ability to manage its finances effectively.

Implications of the Central Government's Action

• Fiscal Autonomy and Cooperative Federalism: Kerala’s legal battle highlights a key issue regarding fiscal decentralization and the balance of power between the Centre and the States. The imposition of borrowing limits by the Centre could undermine States' fiscal autonomy, hampering their ability to meet expenditure and invest in development.
• Need for a Commission: As suggested by Ananthasayanam Ayyangar, a commission similar to the Finance Commission should be established to examine and determine the borrowing limits of States, considering their financial health and needs.
• Improving Fiscal Framework: There is a call for strengthening the provisions of Article 293 to ensure a more consultative, transparent, and equitable process in the Centre's exercise of borrowing powers, promoting cooperative federalism without arbitrary decision-making.

Practice Question:

Q. The imposition of a Net Borrowing Ceiling (NBC) by the Centre on Kerala has sparked a legal and political dispute regarding the fiscal autonomy of States under Article 293 of the Constitution. Discuss the implications of this issue for the fiscal federalism in India and suggest measures to ensure a balanced fiscal framework between the Centre and States.

India’s demographic dividend has been the subject of much discussion, especially after liberalisation, which promised an economic growth boost from the country’s youthful workforce. However, recent trends indicate that this “dividend” may not be as enduring as expected, and there are concerns that India’s shrinking fertility rate, stagnant manufacturing sector, and insufficient job creation could lead to the country falling into the middle-income trap. With the demographic advantage narrowing, experts warn that India must act quickly to leverage its youth population.

The Demographic Dividend and Its Decline

• Declining Fertility Rate: India’s total fertility rate (TFR) has dropped significantly, from 2.6 in 2010 to 1.99 today, indicating a rapid population ageing. This trend, particularly in southern states like Andhra Pradesh and Karnataka, signals the impending end of India’s demographic dividend, which has been vital for its economic growth.
• Challenges of Low-Productivity Employment: A significant portion of India’s working-age population remains employed in low-productivity agricultural jobs or is unemployed, preparing for competitive exams. Despite liberalisation, only 17% of India’s workforce has shifted out of agriculture, lagging behind China’s progress.
• Middle-Income Trap: With a stagnating manufacturing sector and slow job creation, India risks falling into the middle-income trap, a scenario where the economy grows slowly after reaching middle-income status without achieving high-income levels.

Focus on Manufacturing for Economic Growth

• Importance of Manufacturing: Historically, economic growth has been driven by the transition of workers from agriculture to manufacturing. However, India’s manufacturing sector has stagnated, and addressing this is essential to create more jobs. Sectors like textiles and apparel employ millions and could be a major contributor to employment, especially for women, yet this sector faces several hurdles.
• Challenges in the Manufacturing Sector: Indian manufacturers face significant obstacles, including complex business licensing processes, land acquisition issues, and trade regulations. These issues are limiting the growth of labor-intensive industries, which have a much higher potential for job creation compared to services.
• Policy Reforms for Growth: To stimulate manufacturing, India must improve the business environment by lowering tariffs, finalising free trade agreements, and pushing for labor reforms that provide greater flexibility in hiring and working conditions.

The Way Forward for Leveraging the Demographic Dividend

• Improving the Business Environment: For India to capitalise on its demographic dividend, it must create an enabling environment for businesses, including reforms in land, labor, and regulatory frameworks. This will foster large-scale job creation, especially in manufacturing.
• Learning from China: India can learn from China’s experience in transitioning millions from agriculture to manufacturing, which was pivotal in its rapid economic growth.
• Urgency to Act: The window to fully benefit from the demographic dividend is closing. India must shift from complacency to active policymaking to ensure that its youthful workforce is productively employed in sectors that can sustain long-term growth.

Practice Question:

Q. India's demographic dividend, once seen as a key driver of economic growth, is now facing significant challenges, including a declining fertility rate and stagnation in manufacturing. Discuss the reasons for this trend and suggest policy measures to leverage India’s demographic advantage before it diminishes.

In October 2023, women gig workers in India organized a nationwide digital strike, called "Black Diwali," to protest against exploitative labor practices in the gig economy. This movement has highlighted the systemic issues of labor exploitation and the absence of proper labor rights and protections in the gig economy, which has become a growing concern across the globe.

Exploitation in the Gig Economy

• Discounted Offers and Worker Exploitation: Gig workers argue that the festive discounts offered by platform companies come at the expense of their wages, as these platforms push workers to meet unrealistic targets under exploitative conditions.
• Consumer Indifference: Consumers and governments often overlook these realities, focusing instead on the narrative that platform companies create jobs, ignoring the fact that their growth is sustained by exploiting vulnerable labor.
• Venture Capital and Profit Model: The rapid expansion of gig platforms is fueled by venture capitalists, who are more concerned with growth than the sustainability of the business or the well-being of workers, perpetuating a cycle of labor exploitation.

Challenges Faced by Women Gig Workers

• Patriarchal Structures in Gig Work: Women gig workers often face age-old patriarchal norms, being assigned jobs traditionally designated for women, like beauticians or housekeepers, and subjected to exploitative "auto-assigned" jobs.
• Vulnerable Worker Demographics: Many women gig workers are from marginalized backgrounds, such as single mothers or survivors of domestic violence, and their vulnerability is exploited by platform companies that view them as a cheap labor force.
• Hidden Pressures of 'Freedom': While gig platforms promise flexibility and autonomy, women often face pressures to meet unrealistic targets, resulting in financial burdens that prevent them from benefiting from the alleged 'freedom' of gig work.

The Need for Change and Grassroots Organizing

• Lack of State Regulation: The government lacks effective systems to regulate anti-labor practices in the gig economy, allowing platform companies to exploit workers, especially women, without accountability.
• Feminization of Labor: The gig economy perpetuates a form of digital patriarchy, where women are pushed into lower-paying, insecure work with little to no social security or labor rights.
• Grassroots Organizing for Change: GIPSWU’s digital strike is a significant step towards empowering women gig workers, showing the power of grassroots movements in advocating for better labor laws and fairer working conditions.

Practice Question:

Q. The recent digital strike by women gig workers in India has highlighted the exploitative practices within the gig economy. Discuss the challenges faced by gig workers, especially women, and suggest measures to ensure fair labor practices and social security for gig workers in India.