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27th January 2025 (11 Topics)

27th January 2025

QUIZ - 27th January 2025

5 Questions

5 Minutes

Mains Issues

Context

The role of the Governor as Chancellor of State universities has been a topic of debate in India. While it's often thought to protect universities from political influence, this role is actually a colonial legacy that has led to several challenges in modern India.

Colonial Legacy of the Chancellor Role (Background)

  • The British established India’s first universities in 1857 (Calcutta, Bombay, and Madras), appointing Governors as their Chancellors to keep control over university affairs.
  • Powers of the Chancellor: As Chancellor, the Governor had powers like appointing Vice-Chancellors, nominating members to university bodies, and overseeing university decisions. These powers were meant to limit university autonomy.
  • Post-Independence: After independence, India inherited this system. Although it was designed to ensure academic freedom, in practice, it led to political interference, especially as Governors were appointed based on political loyalty.

Political Role of Governors

  • From Ceremonial to Political: From 1947 to 1967, Governors were largely ceremonial, with the real power lying with Chief Ministers. However, after 1967, Governors started playing more active, often politically motivated, roles, especially when States had opposition governments.
  • Political Appointments: Governors often came from political backgrounds, which led to conflicts between the Centre and State governments. This politicisation undermined the credibility of the office.
  • Conflicting Roles: The Governor’s dual role — as both a constitutional figure (under Article 163) and a statutory authority (Chancellor of universities) — allowed them to act independently, often bypassing State governments, especially in Opposition-ruled States.

Problems Arising from the Governor as Chancellor

  • Lack of Accountability: Governors have significant power in university governance but no direct accountability to the elected State governments.
  • Delays and Administrative Issues: Governors’ power often results in delays, particularly in the appointment of Vice-Chancellors and other university positions, causing administrative paralysis.
  • Political Interference: Instead of protecting universities from politics, Governors sometimes bring political influence into university affairs, undermining autonomy.
Comparisons with the President’s Role
  • President as Visitor of Central Universities: The President of India acts as the Visitor for Central universities. Unlike Governors, the President works with the Ministry of Education, ensuring more transparency and oversight.
  • Governor vs. President: The key difference is that the President’s role involves consultation and legislative oversight, while the Governor has unilateral powers in State universities, often bypassing State governments.
Reforms and Alternative Models

Several commissions, like the Sarkaria Commission and M.M. Punchhi Commission, have recommended reforms, such as:

  • Governor as Ceremonial Chancellor: Some States (e.g., Gujarat, Maharashtra) have proposed making the Governor a purely ceremonial Chancellor, reducing their discretionary powers.
  • Chief Minister as Chancellor: In States like West Bengal and Punjab, the Chief Minister may act as Chancellor, though this requires Presidential approval.
  • State-appointed Chancellor: Telangana has adopted a model where the State appoints a Chancellor, usually an academician or a respected public figure, instead of the Governor.
  • University-elected Chancellor: In models like those of Oxford and Cambridge, the Chancellor is elected by the university itself, ensuring independence and academic freedom.

Prelims Articles

Context

India celebrated its 76th Republic Day on January 26, 2024, with a grand parade at Kartavya Path in New Delhi. The event showcased India’s rich cultural diversity, military strength, and international ties.

Key-highlights of the Parade

  • President Droupadi Murmu’s Traditional Arrival: For the first time since 1984, President Droupadi Murmu arrived at the Republic Day parade in a traditional black horse-drawn buggy.
    • ?        The buggy, gold-plated and with the national emblem, was previously used until 1984 but was discontinued after the assassination of Prime Minister Indira Gandhi.
  • Cultural Tableaux Representing India’s Diversity
    • UP Tableau – Kumbh Mela and Samudra Manthan: Uttar Pradesh’s tableau featured depictions of the ongoing Kumbh Mela and the legendary ‘Samudra Manthan’ (churning of the ocean) from Hindu mythology.
    • Madhya Pradesh Tableau – Cheetah Revival: Madhya Pradesh showcased its cheetah revival project, with cheetahs from the state’s Kuno wildlife sanctuary being highlighted.
    • Andhra Pradesh Tableau – Eco-Friendly Wooden Toys: Andhra Pradesh’s tableau focused on ‘Etikoppaka Bommalu,’ traditional eco-friendly wooden toys that represent the state’s cultural heritage.
  • First Tri-Services Tableau: Theme - ‘Shashakt aur Surakshit Bharat’: The first-ever Tri-services tableau highlighted India’s military integration with the theme of a "strong and secure India."
    • Key Features: The tableau displayed the synergy between the Army, Navy, and Air Force, featuring elements like the Arjun Main Battle Tank, Tejas MKII fighter aircraft, Advanced Light Helicopter, INS Visakhapatnamdestroyer, and a Remotely Piloted Aircraft.
    • Joint Operations Room: The tableau symbolized a coordinated operation between the three services, showcasing India’s defense capabilities in land, air, and water.
  • First Indonesian Contingent at the Republic Day Parade
    • Indonesian Participation: This year marked the first time Indonesia participated with a military contingent. A 352-member marching contingent and band from Indonesia took part in the parade, marking a historic moment.
    • Foreign Contingents Tradition: The tradition of inviting foreign contingents to the Republic Day parade started in 2016, and this year’s Indonesian contingent followed this custom. Previously, foreign contingents from countries like France had also participated.
  • First Woman Officer’s Salute: Captain Dimple Singh Bhati became the first woman Army officer to present a salute to President Droupadi Murmu during the Republic Day parade.
    • She achieved this feat while standing on a 12-foot ladder mounted on a moving motorcycle, setting a world record.
    • Bhati's salute symbolized the courage, precision, and excellence of the Indian Army, particularly the Corps of Signals, also known as "The Dare Devils."

Prelims Articles

Context

The Defence Research & Development Organisation (DRDO) displayed some of its latest innovations in national security during the Republic Day Parade 2025 on January 26. This included both cutting-edge technologies and defence systems developed by DRDO to make India more self-reliant in its defence capabilities.

Key Systems to be Displayed:

  • The theme for the DRDO tableau is 'Raksha Kavach – Multi-layer Protection against Multi-domain Threats'.
  • The tableau will showcase a variety of advanced defence systems that DRDO has developed, highlighting India’s growing self-reliance in the defence sector.
    • Laser-Based Directed Energy Weapon: A new technology that uses lasers for defence. It could be a significant advancement in modern warfare.
    • Pralay Tactical Missile System: A surface-to-surface missile that is designed to strike targets quickly and accurately.
    • Quick Reaction Surface-to-Air Missile: A missile system designed to quickly intercept incoming threats from the air.
    • 155mm/52 Caliber Advanced Towed Artillery Gun System: A long-range artillery gun.
    • Drone Detect, Deter & Destroy System: A system that detects and destroys hostile drones.
    • Medium Power Radar 'Arudhra': A radar system for detecting threats at medium ranges.
    • Airborne Early Warning & Control System: A radar system placed on aircraft to detect threats over large areas.
    • Advanced Lightweight Torpedo: A torpedo for use against submarines.
    • Electronic Warfare System 'Dharashakti': A system designed to disrupt enemy communication and radar.
    • Indigenous Unmanned Aerial System: Drones designed and developed in India.
    • UGRAM Assault Rifle: A new indigenous assault rifle.
  • Other systems displayed may include satellite surveillance systems, air defence systems, and missiles like BrahMos, Pinaka, and Akash. These systems are designed for various purposes like air defence, anti-tank strikes, and long-range attacks.

DRDO's Achievements in 2024

DRDO will also showcase its recent milestones from 2024:

  • Long Range Hypersonic Anti-Ship Missile: A missile capable of traveling at extremely high speeds to strike ships.
  • Light Weight Bullet Proof Jacket 'ABHED': A lighter and more efficient bulletproof jacket.
  • 'Zorawar' Light Tank: A small, mobile tank designed for various combat situations.
  • Divyastra: A missile system designed to carry multiple warheads to hit multiple targets.

Fact Box:

Pralay Missile

  • Developed by: Defence Research and Development Organisation (DRDO).
  • Pralay' is a short-range surface-to-surface missile with a payload capacity of 500 to 1,000 kg.
  • The missile, with a range of 150 to 500 kms, is capable of carrying conventional warheads.
  • The missile is powered with a solid propellant rocket motor and is equipped with advanced technologies.
  • The missile guidance system includes state-of-the-art navigation system and integrated avionics, making it capable of striking deep into enemy territory.
  • It has been developed for deployment along the Line of Actual Control (LAC) and Line of Control (LoC). 

Pinaka System

  • The Pinaka is a powerful multi-barrel rocket launcher developed by DRDO’s Armament Research and Development Establishment (ARDE). It can launch a rapid series of 12 rockets in just 44 seconds, covering an area of 700x500 meters.
  • Originally built with a 37.5 km range, the Pinaka has been upgraded over time to deliver greater range and effectiveness.
    • o   Pinaka Mk-I: The basic version has a range of 38 km and offers various warhead options.
    • o   Pinaka Mk-II: An enhanced model that extends the range to 60 km.
    • o   Extended Range Pinaka: The latest version reaches targets up to 75 km.

Akash Air Defence Missile system

  • AKASH is a Short Range Surface to Air Missile System to protect vulnerable areas and points from air attacks.
  • Akash Weapon System (AWS) can simultaneously engage Multiple Targets in Group Mode or Autonomous Mode.
  • It has built-in Electronic Counter-Counter Measures (ECCM) features. The entire weapon system has been configured on mobile platforms.
  • Range of Operation : 4.5 km to 25 km

BrahMos Missile

  • The BrahMos is a ramjet supersonic cruise missile of a short-range developed by the Defence Research and Development Organisation (DRDO) and the Russian Federation's NPO Mashinostroyeniya (NPOM).
  • It is named after two major rivers of India and Russia: Brahmaputra and Moskva.
  • The use of BrahMos missiles for land as well as anti-ship attacks. 
  • They can be launched from land, air and sea, and all three variants are in service in the Indian armed forces.
  • It is a two-stage (solid propellant engine in the first stage and liquid ramjet in second) missile.
  • It operates on the "Fire and Forgets" principle i.e. it does not require further guidance after launch.

Prelims Articles

Context

The Indian Army showcased its robotic dogs ‘Sanjay’, known as 'MULE' (Multi Utility Legged Equipment) during the Republic Day parade in Kolkata.

About Robotic Dog

  • The robotic dogs, nicknamed 'Sanjay', are all-weather machines capable of performing various tasks such as:
    • Explosives detection and disposal
    • Surveillance and perimeter security
    • Asset protection
    • Operations in chemical, biological, and nuclear warfare environments
  • The sniffer-cum-combat dogs work efficiently, and have their own sets of benefits in the combat zones.
  • Each of them have nocturnal vision systems, heat-sensing cameras, unmanned aerial vehicles and a multi-functional mechanical arm.
  • The Indian Army has already inducted 100 such robotic dogs into its units.

Prelims Articles

Context

A cluster of GBS cases has been reported in Pune, with 73 confirmed cases and 14 patients on ventilator support. The Maharashtra government and the Union Health Ministry have launched investigations to understand the cause behind the rise in infections.

What is Guillain-Barré Syndrome (GBS)?

  • GBS is a rare autoimmune neurological disorder where the immune system mistakenly attacks the body’s peripheral nerves.
  • This leads to muscle weakness, which can progress to paralysis.
  • GBS can develop over a few days to weeks, and while it affects people of all ages, it’s more common in adults and men
  • Impact of body:
  • In GBS, the immune system damages the myelin sheath, the protective layer around nerve cells.
  • This hampers the nerves' ability to transmit signals to the brain, causing weakness and, in severe cases, paralysis.
  • It primarily impacts the peripheral nervous system (nerves outside the brain and spinal cord), affecting muscle control, temperature regulation, and sensations of touch and pain.
  • Symptoms of GBS:
  • Early symptoms: Tingling or weakness starting in the feet and legs, gradually spreading to the arms, face, and upper body.
  • Other symptoms:
    • Pins and needles sensation in toes, fingers, wrists, or ankles
    • Back pain and pain in the legs
    • Difficulty walking or climbing stairs
    • Facial weakness and double vision
    • Severe cases can lead to paralysis, especially of the legs, arms, or face.
    • Breathing difficulties may arise if the chest muscles are affected, making it a potentially life-threatening condition.
  • Causes of GBS: GBS often follows a viral or bacterial infection, most commonly Campylobacter jejuni (bacteria causing gastroenteritis). It can also follow infections like the flu, cytomegalovirus, Epstein-Barr virus, and the Zika virus.
  • Treatment for GBS: Plasma exchange (plasmapheresis), Intravenous immunoglobulin (IVIG) therapy.
  • GBS can be life-threatening, so early treatment is critical.

Prelims Articles

Context

In Assam, particularly in tea plantation areas, tuberculosis (TB) has been a significant health issue. A new study has highlighted a life-threatening fungal infection, chronic pulmonary aspergillosis (CPA), that affects TB survivors.

About Chronic pulmonary aspergillosis (CPA)

  • Chronic pulmonary aspergillosis (CPA) is caused by a fungus called Aspergillus fumigatus, which affects people with weakened immune systems, especially those who’ve had TB.
  • It causes gradual scarring of the lungs for months and years.
  • It is a debilitating condition that causes severe tiredness, weight loss, breathlessness, and coughing up blood.
  • While exposure to Aspergillus is harmless to most people, it may affect those with lung damage.
  • Symptoms: CPA shares similar symptoms with TB, such as chronic cough, coughing up blood, weight loss, and fatigue. It’s more common in tea workers, especially those who have had TB.
  • The disease is more common in middle-aged male workers, likely due to factors like smoking.
  • Epidemic Dropsy and Nutrition Concerns
    • A separate study on epidemic dropsy in tea workers linked low-grade cooking oils to the condition.
    • Epidemic dropsy is caused by consuming oil contaminated with Argemone mexicana, a toxic plant.
    • The toxic alkaloids in argemone oil cause heart failure and blindness. A study on 38 patients with epidemic dropsy found that most were male and died from cardiogenic shock (heart failure).

Prelims Articles

Context

The Indian Space Research Organisation (ISRO) is poised to make history with its 100th rocket launch (GSLV-F15 mission), marking a significant milestone in India's space journey. The GSLV-F15 rocket with indigenous cryogenic stage will place NVS-02 satellite in a Geosynchronous Transfer Orbit.

Key Features of the NVS-02 Satellite:

  • Weight: 2,250 kg
  • NVS-02 satellite is the second of five second-generation satellites designed to enhance India’s Indian Regional Navigation Satellite System (IRNSS), also known as NavIC.
  • NVS-02 is part of a new generation of satellites designed to replace older ones in the Indian navigation constellation.
    • NVS or Navigation Satellite is part of the Navigation with Indian Constellation (NavIC) - India's version of a Global Navigation Satellite Systems (GNSS) - similar to the Global Positioning System (GPS) often used worldwide.
  • Lifespan: These second-generation satellites have a longer lifespan of 12 years compared to older satellites, which were designed for 10 years.
  • Atomic Clocks: NVS-02 is equipped with indigenously developed, more accurate atomic clocks, improving the satellite's navigation precision.
  • L1 Frequency: The satellites use the L1 frequency, commonly used by the US GPS, which will help expand the system’s use in smaller devices like fitness trackers and smartphones.
  • Rocket: The GSLV-F15 rocket will carry the NVS-02 satellite into a Geostationary Transfer Orbit (GTO), which has a perigee (lowest point) of 170 km and an apogee (highest point) of 36,577 km.
IRNSS (NavIC) System:
  • IRNSS, or Navigation with Indian Constellation (NavIC), is a 7-satellite system that provides navigation and timing services across India and up to 1,500 km in its neighborhood.
  • The first satellite, IRNSS-1A, was launched in 2013.
  • Replacements: The constellation has faced challenges, including issues with atomic clocks on some satellites, which required replacements before their mission life ended.
  • Issues Faced in the Past: In the past, some satellites had issues with their atomic clocks, causing a delay in the expected timeline of replacements.
  • A satellite, IRNSS-1H, failed to reach orbit due to a malfunctioning heat shield during launch.

Prelims Articles

Context

The third Sundarban Bird Festival was held from January 22 to January 26, 2025.

Key Highlights:

  • Bird Species Count: A total of 154 bird species were recorded, with 51 migratory species and 103 resident species.
    • 12 threatened bird species were also spotted, including rare species like the Eurasian Curlew and Brown-winged Kingfisher.
  • Participation: 40 birders from 6 teams spotted a total of 31,926 birds during the festival.
  • Key Areas: Birdwatching was done across various areas, with notable species counts in:
    • Matla Forests: 108 species
    • Kalas: 95 species
    • Sajnekhali: 64 species (lowest count)
    • Core Area of Sundarban Tiger Reserve: 100 species
    • Buffer Zone: 90 species
    • Outside Protected Areas: 129 species
  • Types of Birds Recorded:
    • 45 species of waders, mudflat, and shore birds
    • 8 species of raptors
    • 91 species of forest birds
    • 3 species of waterfowls
    • 7 species of other birds

Sundarban Forest

  • The Sundarban forest spans 4,000 sq. km and is known for having the largest population of Royal Bengal tigers.
  • The Sundarbans is a mangrove forest, a unique habitat for both wildlife and migratory birds, offering rich biodiversity.
  • The Sundarbans mangrove forest is situated at the delta of the Ganges, Brahmaputra, and Meghna rivers, along the Bay of Bengal.
  • Spanning over 140,000 hectares, it is one of the largest mangrove forests in the world.
  • Ecological Significance: The region features a complex network of tidal waterways, mudflats, and salt-tolerant mangrove forests, showcasing ongoing ecological processes.
  • Biodiversity: Known for its rich fauna, the Sundarbans is home to 260 bird species, Bengal tigers, estuarine crocodiles, and Indian pythons, with many of these species being threatened.
  • UNESCO World Heritage Site: The area is adjacent to the Sundarbans World Heritage Site, which was inscribed in 1987.
  • Sundarban Bird Festival is an annual event held in the Sundarban Tiger Reserve to promote avifauna conservation and showcase the rich bird biodiversity of the region.
    • The festival focuses on documenting migratory and resident bird species, drawing attention to the importance of preserving habitats like the Sundarbans, which is home to several threatened and endemic species.

Editorials

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Context

On January 27, 2025, the world marks the 80th anniversary of the liberation of Auschwitz-Birkenau by Soviet soldiers in 1945. This day not only commemorates the lives lost in the Holocaust but also renews the global pledge to prevent future genocides. The ongoing suffering in Gaza, and the International Criminal Court’s investigation into potential genocide, brings the need for this pledge into sharp focus once again.

The Holocaust and the Beginning of "Never Again"

  • Liberation of Auschwitz: On January 27, 1945, Soviet forces liberated Auschwitz, uncovering the remains of approximately 1.1 million victims, primarily Jews. The Nazis had destroyed their records, but the horrors of the Holocaust remain a significant moment in human history.
  • Post-War Pledge of "Never Again": The phrase "Never Again" was coined after the Holocaust, symbolizing a global commitment to preventing future genocides. The 1948 Genocide Convention recognized genocide as a crime and called for measures to prevent it, acknowledging its lasting stain on human history.
  • Worsening of the Refugee Crisis: Despite the knowledge of Nazi atrocities, the international community failed to take decisive action in the years leading up to and during the Holocaust. Many Jewish refugees faced bureaucratic obstacles, xenophobia, and restrictive immigration policies, which compounded their suffering.

Post-War Genocides and the International Response

  • Cambodia (1975-1979): The Khmer Rouge regime in Cambodia killed over two million people through execution, starvation, and forced labor. International response was minimal, heavily influenced by Cold War politics, with both China and the West supporting factions that were part of the conflict.
  • Rwanda Genocide (1994): The Rwanda genocide saw the mass murder of up to 1 million Tutsis and moderate Hutus within 100 days. Despite warnings, the UN peacekeepers were unable to stop the killings, highlighting the failure of the international community to intervene in a timely manner.
  • Bosnia and Darfur Genocides: In 1995, more than 8,000 Bosnian Muslim men were executed in Srebrenica despite it being a UN safe zone. Similarly, the Darfur genocide (2003-2005) led to 200,000 deaths, but the international response was weak and delayed in both cases, illustrating the recurring failure of global governance mechanisms.

The Gaza Crisis and the Question of Genocide

  • Ongoing Conflict in Gaza (2023): As of 2023, violence in Gaza has raised the question of whether Israel’s actions in response to Hamas attacks amount to genocide. With more than 47,000 deaths, primarily women and children, and the destruction of homes and infrastructure, international concerns about potential genocide are growing.
  • ICC Investigation into Israel and Hamas: The International Criminal Court (ICC) has opened investigations into whether Israeli actions in Gaza and Hamas’ attacks may constitute genocide. Arrest warrants have been issued for leaders of both sides, but international responses, particularly from Western countries, have been defensive of Israel’s self-defense rights.
  • Global Inaction and Selective Responses: Despite the mounting evidence of atrocities, many in the international community have failed to intervene effectively in Gaza. The West, particularly the U.S. and Europe, has continued to supply arms to Israel, further complicating the international response to the crisis.
Practice Question

Q. Despite the pledge of ‘Never Again’ made after the Holocaust, the world has witnessed repeated genocides. Critically examine the failures of international mechanisms to prevent genocides in the post-WWII era, with specific reference to Cambodia, Rwanda, Bosnia, and Gaza.

Editorials

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Context

The inauguration of Donald Trump as the 47th President of the United States marks a significant moment for global geopolitics, with the Indo-Pacific region being central to his foreign policy. His renewed focus on strengthening defense, economic, and technological cooperation with key Quad partners—India, Japan, and Australia—signals a more assertive U.S. posture in the Indo-Pacific. This approach aims to counter China’s growing influence while ensuring regional stability.

U.S. Shift to Indo-Pacific Framework

  • Recalibration of Geopolitical Focus: Under Trump’s leadership, the U.S. replaced the term 'Asia-Pacific' with 'Indo-Pacific,' expanding the strategic narrative to include the Indian Ocean region, focusing on securing sea lanes and countering China's maritime influence.
  • Structural Changes in U.S. Defense: The U.S. renamed the Pacific Command to the Indo-Pacific Command in 2018, restructuring defense units to prioritize Indo-Pacific allies, signaling a stronger operational focus on this region.
  • Quad Revival and Institutionalization: Trump pushed to institutionalize the Quad (India, Japan, Australia, U.S.), elevating it to the ministerial level, marking a significant move to deepen cooperation in maritime security, supply chains, and technological standards.

Biden Administration's Continuity and Expansion

  • Strategic Continuity Under Biden: Despite a change in leadership, the Biden administration inherited and maintained the Indo-Pacific strategy, reinforcing its centrality in U.S. foreign policy.
  • Expansion of Quad Agenda: Biden expanded the Quad's focus to include vaccines, climate change, and infrastructure development, complementing the strategic and security dimensions established by Trump.
  • Introduction of Indo-Pacific Economic Framework: Biden launched the Indo-Pacific Economic Framework (IPEF) in 2022 to complement the strategic engagement, ensuring economic collaboration alongside defense and technological cooperation in the region.

Prospects of Trump’s Second Term

  • Bipartisan Consensus on Indo-Pacific: There is a bipartisan consensus on the strategic importance of the Indo-Pacific, ensuring continuity in U.S. engagement and support for key regional alliances like the Quad.
  • Assertive Stance on China: Trump’s second term is expected to see a more assertive U.S. approach towards China, strengthening regional security frameworks and relying on Indo-Pacific allies to share the burden.
  • Focus on Hard Power and Rules-Based Order: While focusing on hard power dynamics, Trump is likely to bolster security frameworks that protect the rules-based order, enhancing regional maritime, economic, and technological security.
Practice Question

Q. Discuss the strategic significance of the Indo-Pacific region in U.S. foreign policy, particularly in the context of U.S.-China rivalry, with a focus on the role of the Quad and the evolution of Indo-Pacific strategies under the Trump and Biden administrations.

Editorials

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Context

The 55th GST Council's recommendations reflect a worrying return to problematic practices, including retrospective tax amendments. The proposed retrospective change to nullify a Supreme Court ruling raises concerns over legal instability, affecting India's investment climate.

Retrogressive Tax Policies and Governance Failures

  • Retrospective Tax Amendments: The GST Council’s proposed retrospective tax amendment to counter a Supreme Court judgment undermines legal stability and signals to investors that judicial decisions can be overridden at will.
  • Impact on Business Confidence: The retrospective amendments reduce investor confidence, as seen in the Vodafone case, where India had to pay an Rs 8,000 crore arbitration award, highlighting the damage to legal integrity and predictability.
  • High Tax Rates and Economic Consequences: Excessive taxes suppress demand, encourage tax evasion, and foster the black economy, with no effort to simplify rates or remove arbitrary decisions, ultimately harming businesses.

Flawed Taxation System and Its Negative Impact

  • Focus on Revenue Maximization Over Growth: The emphasis on revenue collection over growth results in exaggerated reports of tax evasion and a failure to simplify the system or address unfair tax policies.
  • Inequities in GST Implementation: GST on lease rentals and joint development rights, which are not goods or services, increases costs in real estate and housing, making essential sectors less affordable.
  • Empirical Studies Needed on Tax Impact: Empirical research is needed to assess the effect of high taxes on consumption. Lowering tax rates, such as a single 12% GST on hotels, could boost demand and India’s global competitiveness.

Path to Growth-Oriented Tax Reforms

  • Reforms to Stimulate Growth: India must shift from revenue maximization to growth-oriented policies, making taxes a result of economic expansion, as part of a broader "Reforms 2.0" agenda.
  • Structural Challenges and Opportunities: The current tax system has led to lower manufacturing and rising imports, particularly from China. Urgent reforms are needed to foster domestic production and reduce reliance on foreign goods.
  • Focus on Long-Term Fiscal Policy: India needs a long-term fiscal policy (2025-2030) focused on encouraging investment and fostering sustainable growth, moving beyond short-term tax maximization to growth and job creation.
Practice Question

Q. Critically evaluate the shift towards revenue-maximization in India’s current tax system and its implications for long-term economic growth. How can India adopt growth-oriented tax reforms?

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