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15th July 2022

  • Published
    15 July 2022

Current Account Deficit, expected to deteriorate due to rising trade deficits

Context

India's current account deficit is expected to deteriorate in the current fiscal on account of costlier imports and decreased merchandise exports.

About

Key Facts:

  • The recently released data by the government showed that the trade deficit had widened in June to an all-time high and the imports have surged past $66 billion.
  • Retail inflation moderated slightly to 7.01% in June, and the ministry attributed it to measures taken by the government and the central bank as well as fears of a global recession that dragged oil prices lower.


The Current Account Deficit (CAD) is the shortfall between the money received by selling products to other countries and the money spent to buy goods and services from other nations.

Positives:

  • The agricultural sector is picking up with the long-range forecast for the monsoon season.
  • Recovery in rural demand
  • Double-digit growth of bank credit in recent months
  • Economic activity is showing an upward trend despite the ongoing geopolitical tensions
  • The services sector is showing signs of robust recovery
  • Strong economic activity is evident in robust GST collection

Concerns:

  • Food inflation hovers around 8.0%. But if compared with many other countries, it is very much under control in India. Import of essential commodities is getting costlier.
  • Retail inflation in India continues to be higher than RBI’s tolerance level of 6%, stabilization policy measures. This is the sixth successive month in which retail inflation has been above the RBI's tolerance level of 6%.
  • Fears of a recession are hovering globally and it may hurt India’s exports and push down Indian Rupee. Small Businesses Face High Inflation and Fear of Recession.

What can be done?

  • The MPC (Monetary Policy Committee) is expected to hike policy repo rates to control the inflationary pressures.

Management of Inflation:

  • The Reserve Bank of India (RBI) is mandated to keep inflation at 4 per cent, plus-minus 2 percent (Stabilization Policy).
  • To control the price rise, the government had in 2016 given a mandate to the RBI to keep the retail inflation at 4 per cent with a margin of 2 per cent on either side
  • Reserve Bank of India is the authority to control inflation through monetary policies which it does by increasing bank rates, repo rates, cash reserve ratio, buying dollars, regulating the money supply, and availability of credit.
  • An increase in customs duties and the imposition of windfall tax are expected to boost government revenues and assist in keeping the fiscal deficit to GDP ratio unchanged from its budgeted level.
  • Little moderation in the international prices of food items, industrial metals, and crude oil global has been observed. But the reason for the same may be driven by the fear of setting of recession
  • India has also diversified its crude imports, increasing its sourcing from Russia.

 

Government points out ‘delay’ in framing labour codes

Context

Recently, Government said that only a few States have not yet framed the rules. According to a recent report, 24 States have so far published draft rules for all four codes.

About

Reasons behind the delay

  • The government says the delay in implementing the four labour codes is due to the delay in framing rules by the States.
    • The States are publishing draft rules and inviting comments from stakeholders on those draft rules.
    • The Centre had also published draft rules for certain sections of the four codes.

Labour Code:

  • A labour code is a codification of labour laws in legislative form.
  • One of the first labour codes was first introduced in 1918 in the Russian Soviet Federative Socialist Republic, as a legal framework underlying the requirement to ensure the right to work declared in the first Soviet Constitution.
  • All Passed bills but have not been implemented yet by the government:
    • The Code on Wages (August 2019)
    • The Industrial Relations Code
    • The Code on Social Security
    • The Code of Occupational Safety
    • Health and Working Conditions

Background (Labour Codes)

  • There are more than 50 crore workers in the organized and unorganized sectors of the country.
  • A majority of these workers i.e. around 90 percent are in the unorganized sector.
  • Through these four Labour Codes, it has been ensured that all these workers will get the benefit of Labour Laws.
  • Now all workers of the organized and unorganized sectors will get the minimum wages and a large section of workers in the unorganized sector would also get social security.

Recommendation:

  • The Second National Commission of Labour submitted its report in 2002 which said that there was a multiplicity of Labour Laws in India and therefore, recommended that at the Central level multiple Labour Laws should be codified in 4 or 5 Labour Codes.

New 4 Labour Codes are beneficial for all

  1. Wage Code 2019: All workers have got the Right to Minimum Wages.
  2. Social Security Code 2020: To ensure security for all workers, the Central Government has amalgamated 9 Labour Laws into the Social Security Code in order to secure the right of workers for insurance, pension, gratuity, maternity benefit, etc.
  3. OSH Code (Occupational, Safety, Health, and Working Conditions Code) 2020: For providing a better and safe environment along with occupational health and safety to workers at the workplace.
  4. Industrial Relations (IR) Code, 2020: The Central Government has taken steps for safeguarding the interests of Trade Unions as well as the workers. In this Code, all possible steps have been taken for industrial units and workers so that disputes do not arise in the future.

Benefits of Codification:

  • Single Registration
  • Single License
  • Single Statement
  • Minimum Forms
  • Common definitions
  • Reduction of Committees
  • Web-based surprise inspection
  • Use of technology – Electronic registration and licensing.
  • Reduction of compliance cost disputes

Concern:

  • The employers’ associations like the Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) had expressed reservation on the proposal for increasing the minimum wages and expanding the social security network by involving the employers too.
  • The employers are worried that a further increase in the salary bill will hamper their profits in a recession-hit economy and they expect the government to hold more discussions.a

Conclusion:

The empowerment of workers is necessary for an empowered, prosperous, and Aatmanirbhar India.

Patna HC exceeded its jurisdiction: SC

Context

The Supreme Court decided that the Patna High Court exceeded its jurisdiction.

Analysis

Definitions of Jurisdiction:

  • Jurisdiction is the legal term for the authority granted to a legal entity to enact justice.
  • The extent of the power to make legal decisions and judgements.

High Courts of India:

  • The High Courts of India are the highest courts of appellate jurisdiction in each State and Union Territory of India.
  • However, a high court exercises its original civil and criminal jurisdiction only if the subordinate courts are not authorized by law to try such matters for lack of pecuniary, territorial jurisdiction.

These are the ten main types of the jurisdiction of Indian courts:

  • Pecuniary Jurisdiction: This jurisdiction is based upon the valuation of the subject matter of the suit.
  • Territorial Jurisdiction: It refers to the power of the court to inquire and proceed with the trial of a matter that is presented before it.
  • Subject Matter Jurisdiction: It is the authority of a court to hear cases of a particular type or cases relating to a specific subject matter. For instance, the bankruptcy court only has the authority to hear bankruptcy cases.
  • Exclusive Jurisdiction: It exists in civil procedure if one court has the power to adjudicate a case to the exclusion of all other courts.
  • Concurrent Jurisdiction: It exists where two or more courts from different systems simultaneously have jurisdiction over a particular case.
  • Appellate Jurisdiction: The power of the higher court to review the decision or change the result of the decisions made by the lower courts is called appellate jurisdiction.
  • Original Jurisdiction: A court's power to hear and decide a case before any appellate review.
  • Special Jurisdiction: It is the court's jurisdiction only on certain types of cases such as bankruptcy, and family matters.
  • Legal Jurisdiction: Jurisdiction is the power that a court of law or an official has to carry out legal judgments or enforce laws.
  • Extending Jurisdiction: Parliament may by law extend the jurisdiction of a High Court.

What determines the jurisdiction of a court?

  • A legal case's jurisdiction depends on personal and subject matter jurisdiction.
  • A court must have both subject matter jurisdiction and personal jurisdiction over the matter to hear a case.
  • Jurisdiction is important because if a court does not have jurisdiction over a case, it does not have the legal authority to pass judgment on the case.

Who has the authority to determine the jurisdiction of the court?

  • The Supreme Court has also a very wide appellate jurisdiction over all Courts and Tribunals in India.
  • It may discretion to grant special leave to appeal under Article 136 of the Constitution from any judgment, decree, determination, sentence, or order in any cause or matter passed or made by any Court.

Forest Conservation Rules

Context

The Ministry of Environment, Forest and Climate Change (MoEFCC) notified the Forest Conservation Rules, 2022, which will replace the earlier rules notified in 2003.

About

About Provisions of Forest (Conservation) Rules,2022:

  • The Forest Conservation Rules deal with the implementation of the Forest Conservation Act (FCA), 1980.
  • They prescribe the procedure to be followed for forest land to be diverted for non-forestry uses such as road construction, highway development, railway lines, and mining.
  • For forest land beyond five hectares, approval for diverting land must be given by the Central government. This is via a specially constituted committee, called the Forest Advisory Committee (FAC).

Forest Advisory Committee:

  • It is a regional empowered committee at each of the integrated regional offices and a screening committee at the State/Union Territory (UT) government level.
  • This committee examines whether the user agency (applicants for diverting forest land) or those who have requested forest land, have made a convincing case for the upheaval of that specific parcel of land.
  • It also examines whether they have a plan in place to ensure that the ensuing damage from the felling of trees in that area, denuding the local landscape will be minimal and the said piece of land doesn’t cause damage to wildlife habitat.
  • If convinced the committee then forwards the proposal to the concerned State government where the land is located, which then has to ensure that provisions of the Forest Right Act, 2006, a separate Act that protects the rights of forest dwellers and tribals over their land, are complied with.

What do the updated rules say?

  • The new rules, “streamline” the process of approvals. The rules make a provision for private parties to cultivate plantations and sell them as land to companies who need to meet compensatory forestation targets.
  • It will help India increase forest cover.
  • It will also solve the problems of the States of not finding land within their jurisdiction for compensatory purposes.
  • The concerned update sought to limit the necessity for consent from the gram Sabha. Accordingly, the States will ensure “settlement” of Forest Rights Acts applicable.

How will the new rules affect tribal rights?

  • Missing elements of tribals and forest-dwelling communities: The updated Forest Conservation Rules don’t talk about the tribals and forest-dwelling communities whose land would be hived off for developmental work.
  • The new rules allow the Union government to permit the clearing of a forest for a project before prior consent of the forest dwellers, as mandated under the 2006 Act.
  • Earlier the state bodies would forward documents to the FAC that would also include information on the status of whether the forest rights of locals in the area were settled.
  • Earlier such proposals would not be entertained by the FAC unless there was approval from the State specifying that the forest rights in the place had been “settled” and the Gram Sabha, or the governing body in villages in the area, had given their written consent to the diversion of the forest.
  • The new rules will dilute the Forest Right Act, of 2006.
  • It will disempower forest tribals and may displace them: The update will limit the necessity for consent from the gram Sabha. Many forestry experts say it may imply that the consent of the resident tribals and forest dwellers may not remain a deciding factor.

Government’s position:

  • The purpose of updating the rules is to “streamline the approval process.”
  • Fulfilling and complying with the FRA, 2006 was an independent process and it will not dilute or infringe on the provisions of the Forest Rights Act, 2006.
  • It could be undertaken by States “at any stage” of the forest clearance process and it also talks about the compliance with provisions of the FRA before States order diversion of the land.

Ensure testing for Monkey-Pox: Health Ministry

Context

Recently, the Health Ministry said that the States should aware, alert, and ready to tackle other public health threats such as monkey-pox which is on the rise globally.

Background
  • Monkey-pox (MPX) was first discovered in 1958 in colonies of monkeys kept for research, hence the name ‘monkey-pox.’
  • The first human case of monkey-pox was reported in the Democratic Republic of the Congo (DRC) in 1970.
  • Recently, an ongoing outbreak of the viral disease monkey-pox was confirmed in May 2022.

About Monkey-Pox:

  • Monkey-pox (MPX) is a viral zoonotic disease with symptoms similar to smallpox, although with less clinical severity.
  • It is a potentially serious viral illness that typically involves flu-like symptoms, swelling of the lymph nodes, and a rash that includes bumps that are initially filled with fluid before scabbing over.
  • Illness could be confused with a sexually transmitted infection like syphilis or herpes, or chickenpox.

Mode of transmission:

  • Human-to-human transmission is known to occur primarily through large respiratory droplets generally requiring prolonged close contact.
    • It can also be transmitted through direct contact with body fluids or lesion material, and indirect contact with lesion material, such as through contaminated clothing or linens of an infected person.

Case fatality ratio

  • The case fatality ratio of monkey-pox has historically ranged from 0 to 11% in the general population and has been higher among young children.
  • In recent times, the case fatality ratio has been around 3-6%.
  • Animal-to-human transmission: may occur by bite or scratch of infected animals like small mammals including rodents (rats, squirrels) and non-human primates (monkeys, apes) or through bush meat preparation.

What causes monkey-pox?

  • It is a rare disease that is caused by infection with the monkey-pox virus.
  • This virus belongs to the Ortho-pox-virus genus.
  • It includes the variola (smallpox) virus as well as the vaccinia virus, which is used in the smallpox vaccine.

What are the symptoms of monkey-pox?

  • Swollen lymph nodes
  • Fever
  • Headache
  • Body aches
  • Profound weakness

What is the treatment for monkey-pox?

  • While there are no specific treatments for monkey-pox infections, antiviral drugs licensed for smallpox use are effective and can be used against monkey-pox.
  • Monkey-pox is usually a self-limited disease with symptoms lasting from 2 to 4 weeks.
  • Severe cases occur more commonly among children and are related to the extent of virus exposure, patient health status, and nature of complications.
  • The extent to which asymptomatic infection occurs is unknown.

 What is the monkey pox vaccine?

  • Two vaccines licensed by the S. Food and Drug Administration (FDA) are available for preventing monkey-pox infection - JYNNEOS (also known as Imvamune or Imvanex) and ACAM2000.

 

 

Missing element of Political participation in the draft disability policy

Context

The Department of Empowerment of Person with Disabilities (DoEPwD) recently released the draft of the national policy for persons with disabilities.

About
  • In 2006, India adopted its first National Policy on Disability.
  • In line with its obligation to harmonise all of its laws and policies with the UN Convention on the Rights of Persons with Disabilities (CRPD), India constituted a committee in 2019, which finalised the draft policy in October 2021.

Assessing good and bad points

Good points

Misses

  • Ensuring disabled people are not called more than twice for disability certification to offices;
  • Sign language interpreters at district hospitals;
  • Training in disability rights as disability competencies (only for medical personnel);
  • dedicated sports centres;
  • Making cinema halls, museums and tourist places accessible to disabled people;
  • Guidelines to modify personal vehicles;
  • Maintaining data regarding crimes against disabled people;
  • Indigenisation of motorised wheelchairs; and
  • Maintaining year-wise data of employees with disabilities.
  • lacks inter-ministerial coordination.
  • does not provide pathways to mandate health professionals to acquire the right medical diagnostic equipment.
  • It does little to ensure that accessibility requirements are included in public procurement laws and policies for goods and services.
  • The policy is silent on repealing all types of guardianship that affect deafblind people and persons with intellectual or psychosocial disabilities.
  • Lack of way forward to provide high-support needs; prohibit insurance-based discrimination; and a national suicide prevention strategy.

Why the new policy is needed?

  • It is aimed to showcase the Government’s commitment to the inclusion and empowerment of persons with disabilities by providing a mechanism that ensures their full participation in society.
  • India’s signing of the United Nations Convention on Rights of Persons with Disabilities requires a policy change.
  • Enactment of new disability legislation (Rights of Persons with Disabilities Act 2016) which increased the number of disabilities has been increased from the existing 7 to 21 and it authorized the Central Government to add more types of disabilities.

The issue of lack of political participation

  • There is a glaring omission in the absence of any commitment to the political uplift of persons with disabilities.
  • The inaccessibility of the voting process, barriers to participation in party politics, or a lack of representation at the local, state, or national levels have all aggravated the marginalization of the disabled.
  • It has changed the discourse around disability by shifting the focus from the individual to society,e., from a medical model of disability to a social or human rights model of disability.
  • The documents fail to take cognizance of such mandates such as provided in the Rights of Persons with Disabilities Act 2016 which is committed to the anti-discrimination of differently-abled people.
  • The exclusion of disabled people from the political space happens at all levels of the political process in the country, and in different ways. India does not have any policy commitment that is aimed at enhancing the political participation of disabled people.

Inadequate Representation:

  • Disabled people are not represented enough at all three levels of governance.
  • The lack of rigorous and comparable data and statistics further hinders the inclusion of persons with disabilities.
  • The first visually disabled Member of Parliament in independent India, Sadhan Gupta, hardly finds mention in our political or disability discourse.
  • We have often failed to acknowledge disabled political personalities.

About political participation:

  • Article 29 of the Convention on Rights of Persons with Disabilities mandates that state parties should “ensure that persons with disabilities can effectively and fully participate in political and public life on an equal basis with others, directly or through freely chosen representatives.
  • The Incheon goals also promote participation in political processes and in decision-making.
  • The Rights of Persons with Disabilities Act 2016: The anti-discrimination commitment under this Act recognizes the political domain wherein disabled people should be allowed to realize their human rights and fundamental freedoms.

Make Functional Rights:

  • Inclusiveness and empowerment of the disabled cannot be achieved without political inclusion.
  • The policy can follow a four-pronged approach:
  • building the capacity of disabled people’s organizations and ‘empowering their members through training in the electoral system, government structure, and basic organizational and advocacy skills;
  • the creation, amendment, or removal of legal and regulatory frameworks by lawmakers and election bodies to encourage the political participation of the disabled;
  • inclusion of civil societies to ‘conduct domestic election observation or voter education campaigns;
  • and a framework for political parties to ‘conduct a meaningful outreach to persons with disabilities when creating election campaign strategies and developing policy positions.

Constitutional Provisions:

Article 41 of the Directive Principles of State Policy (DPSP) states that State shall make effective provisions for securing the right to work, to education, and to public assistance in cases of unemployment, old age, sickness, and disablement, within the limits of its economic capacity and development.

The subject of ‘relief of the disabled and unemployable’ is specified in the state list of the Seventh Schedule of the constitution

Municipal Corporation of Delhi (MCD)- uniform tax rates for trade

Context

The Municipal Corporation of Delhi (MCD) has announced uniform rates for general trade and storage licenses for establishments across the city.

Details:

  • Revised rates are aimed at curbing “disparities” in the earlier fee rates under three erstwhile municipal corporations.
  • As the Municipal governments rely heavily on property tax revenue to fund their operations and the new license rates are higher in comparison to the rates under the erstwhile municipal corporations.
  • There will be an increase of 15% in the license fee for all categories every three years from the date of implementation, starting from April 1, 2025.
About

What is a Municipal Corporation?

  • In India, the Municipal Corporation is the urban local government that is responsible for the development of any Metropolitan City having a population of more than one million people.
  • Mahanagar Palika, Nagar Palika, Nagar Nigam, City Corporation, and so on are some of the other names for it.

The Municipal Corporations are established in the states by the acts of the state legislatures, whereas in the Union Territories through the acts of the Parliament.

  • Municipal governments rely heavily on property tax revenue to fund their operations.
  • The first municipal corporation in India was created in Madras in 1688, followed by municipal corporations in Bombay and Calcutta in 1726.

The necessity for the creation of a Municipal Corporation:

  • The growing population and urbanization in India's cities necessitated the establishment of a local governing body.
  • A body is needed for collecting the property taxes and fixed grants from the state government in order to provide essential community services such as health care, education, housing, and transportation.

Constitutional Provisions:

  • In the Constitution of India, no provision was made for the establishment of local self-government, except the incorporation of Article 40 in the Directive Principles of State Policy.
  • The 74th Amendment Act, 1992 has inserted a new Part IX-A into the Constitution which deals with the administration of Municipalities and Nagar Palikas.
  • It consists of Articles 243P to 243ZG. It also added a new twelfth schedule to the Constitution. The 12th Schedule of the Indian Constitution deals with the provisions that specify the powers, authority, and responsibilities of Municipalities. It has 18 matters. Urban planning includes town planning.

Editorial

Fasal Bima Yojana

Context:

The Union Agriculture Ministry announced that Andhra Pradesh has decided to rejoin the crop insurance scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) from the ongoing kharif season.

Constituents of the Scheme:

  • It is a crop Insurance Scheme launched in 2016.It is administered by the Ministry of Agriculture. It replaced previous insurance schemes National Agricultural Insurance Scheme (NAIS) as well as the Modified NAIS.
  • Objective: Aims to provide insurance coverage and financial support to the farmers in the event of crop failure, stabilizing the income of farmers to ensure their continuance in farming. Scheme also helps to encourage farmers to adopt innovative and modern agricultural practices along with ensuring flow of credit to the agriculture sector.
  • Premium: 2% for all Kharif crops, 1.5% for all Rabi crops and 5% for annual commercial and horticultural crops are to be paid by the farmers, remaining premium will be shared by centre and states.
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ThinkQ

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QUIZ - 15th July 2022

Mains Question:

Q1. India unorganized sector have increased many folds post-independence, but it still faces serious issues. In the light of this statement, suggest remedial measures to provide unorganized workers with adequate social security benefits, who are at the forefront of driving the economy’s rampant growth. (150 words)

 

Approach 

  • Introduction- Brief about India’s unorganized sector
  • List major issues 
  • Loopholes 
  • Required measures 
  • Government intervention (Social Security Code)
  • Concluding thoughts 
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