GS Analyst: Daily Current Affairs

In Jammu & Kashmir, the efficacy and ethical implications of laws like the Enemy Agents Ordinance, its application remains a critical aspect of security policies. This ordinance, known for its severity, is being highlighted amid ongoing security concerns and legal frameworks in the erstwhile state.

What is the Enemy Agents Ordinance?

• The Enemy Agents Ordinance traces its origins back to 1917, during the Dogra rule in Jammu and Kashmir. Initially termed an 'ordinance,' it was designed to address threats posed by those aiding enemies or engaging in activities detrimental to Indian military operations.
• Legal Framework and Amendments: Over time, the ordinance evolved and was incorporated into Jammu and Kashmir's legal system post-Partition. Despite subsequent legislative changes, it retained its status as a stringent law, with provisions allowing for severe penalties such as life imprisonment or even death sentences.
• Changes Post-Article 370 Repeal: In 2019, with the abrogation of Article 370, significant legal reforms took place in Jammu and Kashmir. While some local laws were retained, others were replaced by Indian statutes. However, laws like the Enemy Agents Ordinance and the Public Safety Act continued to be enforced.
• Trial and Legal Procedures: Trials under the Enemy Agents Ordinance are presided over by specially appointed judges.
  • The accused often face restrictions, including limited access to legal defense unless permitted by the court.
  • Moreover, the ordinance prohibits disclosure of case details without government authorization, reinforcing its stringent nature.
• Historical Cases and Controversies
  • The ordinance has been controversial, with numerous Kashmiris, including prominent figures like Maqbool Bhat, being tried and convicted under its provisions.
  • The lack of appeal provisions and the finality of judicial decisions have sparked debates regarding human rights and legal transparency.

June 25th, 2024 marks the 50th anniversary of the Emergency, a pivotal moment in Indian history when fundamental rights were suspended and political dissent suppressed. This article explores the context, reasons, aftermath, and constitutional provisions related to the Emergency in India.

Reason behind Proclaiming Emergency

• Indira Gandhi, the Prime Minister, faced mounting challenges in the early 1970s, including allegations of electoral malpractice.
• Following a court verdict in June 1975 that found her guilty of electoral malpractice, she faced disqualification from holding any elected office.
• Citing "internal disturbances," President Fakhruddin Ali Ahmed, under Article 352 of the Constitution, declared Emergency on June 25, 1975.
• This decision aimed to curb protests, strikes, and stabilize a nation grappling with economic strain post-war with Pakistan.
• India has witnessed the proclamation of National Emergency three times:
  • 1962 Indo-China War: The first instance was in 1962 during the Indo-China War.
  • 1971 Indo-Pakistan War: The second instance was in 1971 during the Indo-Pakistan War.
  • 1975 Internal Disturbance: The third instance was in 1975, proclaimed by President Fakhruddin Ali Ahmed under advice from Prime Minister Indira Gandhi.

During the Emergency

• The Emergency period from 1975 to 1977 witnessed unprecedented curtailment of civil liberties:
  • Suspension of Fundamental Rights: Freedom of speech, assembly, and movement were suspended.
  • Media Censorship: Strict censorship was imposed on the press.
  • Political Leaders Detained: Opposition leaders and activists were arrested.

Aftermath of the Emergency

• The Emergency was lifted on March 21, 1977, paving the way for General Elections. The Congress Party, led by Indira Gandhi, faced electoral defeat, and the Janata Party, under Morarji Desai, came to power.
• This transition marked a significant shift in Indian politics, emphasizing democratic values and accountability.

Constitutional Provisions: Emergency Types and Legal Framework

The Indian Constitution provides for three types of emergencies under Articles 352 to 360:

Landmark Cases: Judicial Interpretation of Emergency Provisions

• Makhan Singh Vs. State of Punjab: This case dealt with the suspension of Article 19during a National Emergency. The court held that the detention of the petitioner was legal and valid as it was done under a law which was protected by Article 359(1).
• D.M. Jabalpur Vs. Shivkant Shukla: This case is one of the most controversial decisions in the history of the Indian judiciary. The Supreme Court held that during the period of Emergency, a person’s right to not be unlawfully detained (Article 21) can be suspended.
• S.R. Bommai Vs Union of India: This case is a landmark in the history of the Indian Constitution. The Supreme Court laid down the paradigm and limitations within which Article 356 was to operate. It held that the power under Article 356 is a conditioned power and it can be used only when the conditions specified in the Article are existent.

The recent operationalisation of The Public Examinations (Prevention of Unfair Means) Act, 2024 marks a significant step in India's efforts to curb cheating in public examinations.

What is The Public Examinations (Prevention of Unfair Means) Act, 2024?

• Passed by Parliament earlier this year, the Act aims to enhance the integrity of public exams by implementing stringent measures against unfair practices.
• Key Provisions and Rules
• Framework for Computer-Based Tests (CBT): The Act outlines comprehensive guidelines for conducting Computer-Based Tests (CBT).
  • This includes every aspect from candidate registration and allocation of test centers to the secure distribution of question papers and the evaluation process.
  • The National Recruitment Agency, in consultation with stakeholders, will establish norms covering both physical and digital infrastructure requirements for CBT centers. These norms are crucial in ensuring standardized procedures across various examination bodies.
• Appointment of Centre Coordinators: Under the new rules, Centre Coordinators for Public Examinations will be appointed from a pool of serving or retired officials from central and state government bodies, public sector undertakings, and other designated organizations.
  • Their role involves overseeing the coordination of exam activities and ensuring strict adherence to prescribed norms and guidelines at examination centers nationwide.
• Defining Unfair Means: Section 3 of the Act specifies actions that constitute the use of unfair means in public examinations.
  • These include leaking question papers, tampering with answer sheets, and creating fake examination centers or websites to deceive candidates. The rules mandate stringent reporting mechanisms and actions against perpetrators to ensure swift and decisive handling of incidents.

Coverage of Public Examinations:

The Act defines 'public examinations' broadly to encompass tests conducted by designated authorities such as:

• Union Public Service Commission (i.e., for civil service entrance exams)
• Staff Selection Commission (i.e., for posts in union ministries and subordinate offices)
• Railway Recruitment Boards (i.e., for certain kinds of jobs in the Indian Railways)
• Institute of Banking Personnel Selection (i.e., for all public sector banks, except State Bank of India)
• National Testing Agency (i.e., for entrance exams for admission to higher educational institutions)
• Additionally, ministries, departments, and their offices responsible for staff recruitment are also included under its purview.

Rationale for the Law:

• The enactment of this law comes in response to widespread instances of question paper leaks and other malpractices disrupting examination processes across the country.
• The law seeks to restore confidence in the examination system, assuring candidates that genuine efforts will be duly recognized and rewarded.
• It is designed not only to prevent cheating but also to uphold the fairness and credibility of India's public examination systems.

India's journey towards inclusion in the JPMorgan Emerging Market Bond Index marks a significant milestone in global finance. The decision, slated to be completed by March 2025, will integrate Indian Government Bonds (IGBs) into the index, mirroring similar caps set for China, Indonesia, and Mexico. This move is poised to unlock substantial foreign investments and reshape India's bond market dynamics.

What is a bond market index?

• A bond index is used to measure the value of a section of the bond market.
• It can be defined by specific characteristics such as maturity or credit rating to capture a narrower slice of the market.
• Just like an equity index, a bond index is made up from the prices of selected bonds, which are a lot more fluid and often harder to value than equities.
• Key global bond market indices: Bloomberg Aggregate Bond Index, the Merrill Lynch Domestic Master, JP Morgan Bond Index, FTSE Bond Index, and the Citigroup US Broad Investment-Grade Bond Index

What is the JP Morgan bond index?

• It is a US dollar denominated, investment-grade index spanning asset classes from developed to emerging markets.
• The JPM GABI extends the US index to also include multi-currency, investment-grade instruments.
• The JP Morgan Emerging Market Bond Index (EMBI) was formed in the early 1990s after the issuance of the first Brady bond.
  • More recently, JP Morgan led investors towards higher yielding local rates by launching the Government Bond Index-Emerging Markets (GBI-EM) series and the Corporate Emerging Markets Bond Index (CEMBI) series.
  • These have become the new standard for local market and corporate EM benchmarks, respectively.
• This index has three sub-variants:
  • The Emerging Markets Bond Index Plus (EMBI+) tracks total returns for traded external debt instruments in the emerging market.
  • The JP Morgan Emerging Markets Bond Index Global tracks total returns for traded external debt instruments in the emerging markets, and is an expanded version of the JPMorgan EMBI+.
  • The JP Morgan Emerging Markets Bond Global Diversified Index.

Key Details of the Inclusion Process

• Inclusion Timeline: The process begins on June 28, 2024, with an initial 1% weight, gradually increasing monthly to reach a 10% cap by March 2025.
  • Only Indian Govt Bonds (IGBs) issued by the Reserve Bank of India (RBI) under the 'Fully Accessible Route (FAR)' will be included in the indices.
  • JP Morgan identified 23 Indian government bonds with a combined notional value of $330 billion eligible for inclusion.
• Potential Inflows: Foreign investments of approximately $21 billion are anticipated initially, with potential total inflows estimated at $30 billion as India's weight in the index grows.
• Impact on Bond Prices: Analysts predict buoyant bond prices due to increased demand from global investors.

Significance of JPMorgan Emerging Market Bond Index

• Global Reach: The index covers diverse asset classes across developed and emerging markets, totaling over $20 trillion in market value.
• Impact on Emerging Markets: It sets standards for local market and corporate benchmarks, guiding investor strategies globally.
• Implications for India
  • Economic Impact: Inclusion is expected to bolster India's economic prospects by enhancing bond market liquidity and reducing borrowing costs.
  • Bond Yield Trends: Bond yields have seen a decline, indicating investor optimism and potential cost savings for the government.
  • Equity Market Indirect Benefits: While direct impacts on equity markets are limited, lower bond yields could indirectly bolster corporate financing and equity valuations.

Srinagar has earned global acclaim as the fourth Indian city to be designated a ‘World Craft City’ by the World Craft Council (WCC). This prestigious recognition comes three years after Srinagar joined the UNESCO Creative City Network for its rich traditions in crafts and folk arts.

Craft Forms Thriving in Srinagar

• The recognition highlights Srinagar's diverse array of traditional crafts, which contribute significantly to its cultural identity and local economy.
• Here are some of the prominent craft forms celebrated in Srinagar and its suburbs:

World Craft City Designation

• The World Craft City (WCC) initiative, launched in 2014 by the World Crafts Council AISBL, aims to recognize the cultural, economic, and social contributions of local crafts worldwide.
• India now boasts four cities under this prestigious designation, including Jaipur, Mysore, Mamallapuram, and now, Srinagar.
  • Jaipur (Kundan Jadai (Gem setting), Meenakari Jewellery, Lac based craft, Gotta Patti Work)
  • Mysuru (Kinnal paintings, Sandalwood carvings, Rosewood Inlay)
  • Mamallapuram (Stone Carving continuing since Pallava dynasty)
  • AND now Srinagar
• About the World Craft Council (WCC International)
  • The World Craft Council (WCC) International, established in 1964 by Kamaladevi Chattopadhay and Aileen Osborn Webb, operates as a non-profit, non-governmental organization registered in Belgium.
  • It is affiliated with UNESCO and organized into five regional branches, fostering global fellowship among craftspersons and promoting economic development through craft-related activities.
    
    

Front-running has become a significant concern in financial markets, particularly involving mutual funds and large investors. This practice, though illegal, persists as a serious violation that undermines market integrity.

What is Front-Running?

• Front-running occurs when individuals or entities use confidential information about impending trades by large investors to profit from anticipated price movements.
• This unethical practice is typically carried out by insiders or intermediaries who exploit their access to sensitive information.
• Mechanism of Front-Running: Front-running exploits the impact of large trades on stock prices.
  • For instance, if a mutual fund plans to buy Rs 100 crore worth of shares, an insider might buy Rs 1 crore of the same stock beforehand. When the fund's trade pushes up the stock price by, say, 2%, the front-runner profits Rs 1 lakh from the price increase.
• Detection and Regulatory Measures
  • Securities and Exchange Board of India (Sebi) employ sophisticated algorithms and data analytics to detect instances of front-running and insider trading.
• Impact on Mutual Funds and Investors
  • While direct financial losses to mutual fund investors are rare, front-running tarnishes the reputation and credibility of asset managers.
  • It raises concerns about ethical practices within these institutions, potentially eroding investor trust and confidence.

The NEET exam scandal has brought attention to widespread paper leaks across states like Gujarat and Bihar, raising significant concerns about the integrity of India's examination systems and governance.

Systemic Rot and Scale:

• Extent of the Scandal: The scandal spans multiple states, indicating a systemic issue rather than isolated incidents.
• Impact on Students: Nearly three million students are affected, causing psychological distress and uncertainty.
• Political Timing: The scandal broke post-election, sparing the government but leaving a trust deficit at the start of its new tenure

Impact on Democratic Legitimacy:

• Role of Examinations: Examinations and elections are critical legitimizing institutions in India's democracy.
• Societal Trust: Trust in the exam system reflects broader societal trust in fairness and justice.
• Potential Fallout: A collapse in trust could undermine the legitimacy of the entire state apparatus.

Challenges and Reform Imperatives:

• Immediate Concerns: Immediate concerns include the necessity for retests and compensation for affected students.
• Institutional Adaptation: Institutions must navigate the disrupted academic calendar.
• Call for Reforms: The scandal underscores the urgent need for robust safeguards and reforms in India's examination and governance frameworks.

Mains Question:

Q. Discuss the implications of the recent NEET exam scandal on India's democratic institutions and governance. How can robust examination reforms safeguard against such systemic failures in the future?

The GST Council recently convened for the first time under the new Union government, focusing on adjusting tax rates and implementing measures to reduce litigation and enhance taxpayer compliance. While steps have been taken in these areas, several other critical issues demand immediate attention.

Rate Rationalisation and Fiscal Stability:

• Deliberations on Rate Rationalisation: The GST Council has been deliberating on rate rationalisation since the formation of a Group of Ministers (GoM) in September 2021.
• Balancing Act for Revenue Neutrality: Discussions include merging tax slabs while maintaining revenue neutrality, a complex balance crucial for fiscal stability.
• Studies on Revenue-Neutral Rates: Studies show varying perspectives on revenue-neutral rates, necessitating careful consideration to avoid fiscal imbalances.

Challenges of Including Petroleum Products:

• Contentious Inclusion Debate: Bringing petroleum products under GST remains contentious due to their significant revenue contribution to both the Centre and states.
• Complex Taxation Structures: Current taxation structures by states add complexity, requiring strategic coordination and agreement between all stakeholders.
• Importance of Coordination: Addressing this issue is vital for expanding GST coverage while ensuring sustainable revenue streams for all levels of governance.

Future of Compensation Cess and Financial Implications:

• Extension and Repayment: Originally intended to end in June 2022, the compensation cess was extended to March 2026 to aid states in revenue recovery post-pandemic.
• Discontinuation Consideration: Discussions now focus on the potential discontinuation of the cess post-2026, considering fiscal implications and state concerns.
• Need for Consensus-Building: Resolving these issues will require extensive deliberation and consensus-building among all stakeholders to ensure equitable outcomes.

Mains Question:

Q. Discuss the challenges faced by the GST Council in India and the measures needed to address them effectively. How can the Council balance the interests of the Centre and states while reforming the GST framework?

The Union Tribal Affairs Ministry is reviewing forest clearance paperwork for the ?72,000-crore infrastructure project on Great Nicobar Island, highlighting challenges in balancing infrastructure development, biodiversity conservation, and indigenous rights.

Environmental Concerns and Project Scope:

• Scope of the Great Nicobar Project: It includes a trans-shipment port, international airport, township development, and a 450 MVA power plant over 130 sq. km. of pristine forest.
• Environmental Clearance and Controversy: The project received stage-1 environmental clearance despite concerns over its impact on Galathea Bay's biodiversity, including rare species like the leatherback turtle.
• Compensatory Measures: Plans for ‘compensatory afforestation’ in Haryana have sparked criticism due to the ecological disparity with the Nicobar rainforest ecosystem.

Strategic and Economic Justifications:

• Strategic Importance: Positioned 90 km from the Malacca Strait, the project aims to leverage Great Nicobar's strategic location for enhancing maritime trade routes.
• Tourism as a Motive: Critics argue that tourism may be a driving force behind the project alongside strategic interests, contradicting official statements on infrastructure development.
• Secrecy and Transparency Concerns: Environmental clearance details and appraisal processes have been kept confidential, raising transparency issues amidst environmental and tribal rights scrutiny.

Ethical and Legal Challenges:

• Indigenous Rights and Consent: Concerns raised by the National Commission for Scheduled Tribes regarding the consent of local tribes, particularly the Shompen, remain unresolved.
• Government Accountability: The National Green Tribunal's scrutiny and demands for transparency underscore governance challenges in executing large-scale projects.
• Call for Course Correction: With a fresh mandate, there is a growing demand for the government to prioritize transparency, environmental sustainability, and respect for indigenous rights in the project.

Mains Question:

Q. Discuss the ethical and governance challenges associated with the infrastructure project on Great Nicobar Island. How can the government balance economic development with environmental conservation and indigenous rights in such contentious projects?