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SC to Hear Challenge on Designation of Bills as Money Bills

For Prelims: Supreme Court of India, Money Bills, Consolidated Fund of India, Types of Bills

For Mains: Indian Constitution, Features, Amendments, Significant Provisions, Judicial Review

Source: TH

Why in News?

A seven-judge Bench of the Supreme Court of India, led by the Chief Justice of India, addresses a request for priority to a reference concerning the manner in which the Centre got crucial amendments passed in the Parliament as Money Bills.

What are the Challenged Amendments Passed as Money Bills?

  • Prevention of Money Laundering Act (PMLA) Amendments:
    • Amendments made from 2015 onwards to the Prevention of Money Laundering Act (PMLA) granted the Enforcement Directorate extensive powers, including the authority to make arrests and conduct raids.
      • The primary concern is the passage of these amendments as Money Bills, raising questions about their legality and constitutionality.
      • Legal experts and petitioners question whether these significant changes should have followed the standard legislative process involving both houses of Parliament.
  • Finance Act of 2017:
    • The Finance Act of 2017 was categorized and passed as a Money Bill, raising concerns about the proper use of this legislative procedure.
    • Allegations that the Act aimed to alter appointments to 19 key judicial tribunals, including the National Green Tribunal and Central Administrative Tribunal.
      • Accusations that categorizing the 2017 Act as a Money Bill was a deliberate attempt to extend executive control over these tribunals.
    • The Act's passage was accompanied by changes that substantially downgraded the qualifications and experience required to staff these key judicial bodies.
  • Aadhaar Act, 2016:
    • The Supreme Court in 2018, had ruled in favor of the government and had cleared the Aadhaar Act as a valid money bill under Article 110 of the Constitution.
      • The government had argued that since the subsidies distributed through Aadhaar flows from the Consolidated Fund of India, the law is validly categorized as a Money Bill. which raised legal and procedural questions.
        • Money Bills are exclusive to the Lok Sabha and limit the Rajya Sabha's influence.
    • Recently, the CJI, asked for a more comprehensive review.

What will be the Implications of the Larger Bench?

  • Clarity on the constitutionality of the PMLA, Aadhaar Act, and Tribunal reforms.
    • Determination of whether these laws were rightly categorized as money bills or used to circumvent Rajya Sabha scrutiny.
  • Resolution of whether these classifications were legally sound or strategic manoeuvres to avoid oversight.
  • The discussions within the larger bench might offer additional insights into the level of scrutiny that the judiciary can exercise over the Speaker's determinations in classifying bills as money bills.

What is a Money Bill?

  • Definition:
    • A Money Bill is a financial legislation that contains provisions exclusively related to revenue, taxation, government expenditures, and borrowing.
  • Constitutional Basis:
    • Article 110(1), a Bill is deemed to be a money Bill if it deals only with matters specified in Article 110 (1) (a) to (g) — taxation, borrowing by the government, and appropriation of money from the Consolidated Fund of India, among others.
      • Article 110(1)(g) adds that “any matter incidental to any of the matters specified in Articles 110(1)(a)-(f)” can also be a Money Bill.
    • Article 110 (3) of the Constitution, “If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final.
  • Procedure:
    • Money Bills must be introduced in the Lok Sabha and cannot be introduced in the Rajya Sabha (the upper house).
    • The Rajya Sabha can only make recommendations on a Money Bill but does not have the power to amend or reject it.
    • President can either accept or reject a money bill but cannot return it for reconsideration.
    • There is no provision for Joint sitting.

Legal Insights

Money Bill

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Prelims

Q1. Regarding the Money Bill, which of the following statements is not correct? (2018)

(a) A bill shall be deemed to be a Money Bill if it contains only provisions relating to the imposition, abolition, remission, alteration or regulation of any tax.

(b) A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.

(c) A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India.

(d) A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.

Ans: (c)

Q2. What will follow if a Money Bill is substantially amended by the Rajya Sabha? (2013)

(a) The Lok Sabha may still proceed with the Bill, accepting or not accepting the recommendations of the Rajya Sabha.

(b) The Lok Sabha cannot consider the Bill further.

(c) The Lok Sabha may send the Bill to the Rajya Sabha for reconsideration.

(d) The President may call a joint sitting for passing the Bill.

Ans: (a)


China’s Belt and Road Initiative

For Prelims: Belt and Road Initiative (BRI), China-Pakistan Economic Corridor (CPEC)

For Mains: China-Pakistan Economic Corridor and its implications on India.

Source: TH

Why in News?

China's ambitious Belt and Road Initiative (BRI) is celebrating its 10th anniversary. This colossal project, in 2013, aims to reshape global trade and infrastructure development.

What is the Belt and Road Initiative?

  • About:
    • The BRI, represents a multifaceted development strategy aimed at enhancing global connectivity and cooperation.
    • It was launched in 2013 and aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes.
      • The project was first named the ‘One Belt, One Road’ but renamed as the BRI to convey a more open and inclusive initiative as opposed to a Chinese-dominated one.
    • The initiative includes two principal components: the Silk Road Economic Belt and the Maritime Silk Road.
  • Routes of BRI:
    • Silk Road Economic Belt:
      • This segment of the BRI is dedicated to improving connectivity, infrastructure, and trade links across Eurasia through a network of overland transportation routes.
    • Maritime Silk Road:
      • This component emphasizes maritime connections and cooperation in the form of ports, shipping routes, and maritime infrastructure projects.
  • Objective:
    • The primary goal of the BRI is to boost international connectivity by enhancing infrastructure, trade, and economic cooperation.
      • The initiative encompasses a wide range of projects, including railways, ports, highways, and energy infrastructure.
  • Geographic Corridors:
    • The land-based Silk Road Economic Belt envisions six key corridors for development:
      • China-Pakistan Economic Corridor (CPEC).
      • New Eurasian Land Bridge Economic Corridor.
      • China-Indochina Peninsula Economic Corridor.
      • China-Mongolia-Russia Economic Corridor.
      • China-Central Asia-West Asia Economic Corridor.
      • China-Myanmar Economic Corridor.

Note

Initially BRI included the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor. Later India refrained from joining the BRI, voicing its opposition to the CPEC that runs from Xinjiang in China’s west, through Pakistan-occupied Kashmir (PoK), to the Arabian Sea port of Gwadar. With India staying out, the BCIM corridor has also stalled, and has been replaced by a later launched China-Myanmar Economic Corridor.

  • Economic Impact:
    • Countries participating in the BRI have witnessed growth in trade and investments with China, leading to preferential treatment and policy benefits.
    • Trade with BRI partners registered an annual growth rate of 6.4%, reaching USD 19.1 trillion between 2013 and 2022.

What is India’s Stance on BRI?

  • India opposes the project on the grounds of sovereignty and transparency. India has boycotted the BRI summits held by China in 2017, and 2019 and has not endorsed the BRI joint statements issued by the Shanghai Cooperation Organisation (SCO).
    • India's main objection to the BRI is that it includes the China-Pakistan Economic Corridor (CPEC), which passes through the Pakistan-occupied Kashmir (PoK), a territory that India claims as its own.
  • India also argues that the BRI projects should respect the international norms, rule of law, and financial sustainability, and should not create debt traps or environmental and social risks for the host countries.
  • India has instead promoted other connectivity initiatives, such as the Partnership for Global Infrastructure and Investment (PGII) , a G7 initiative to fund infrastructure projects in developing countries.

What are the Issues Concerned with the BRI?

  • Debt Burden:
    • The debt sustainability and transparency of the BRI projects, especially in countries with weak governance, high corruption, and low credit ratings.
      • Some critics have accused China of engaging in “debt-trap diplomacy” by lending money to countries such as Sri Lanka and Zambia that ultimately find themselves unable to repay and then seizing their strategic assets or extracting political concessions in return.
  • Multilateral Governance:
    • The BRI is not a multilateral initiative but rather a collection of mostly bilateral projects. This decentralized approach can lead to coordination and governance challenges.
  • Political Tensions:
    • Geopolitical rivalries and disputes, such as the India-China border dispute, have affected the implementation of BRI projects in certain regions. These political tensions can undermine the initiative's progress.
  • Environmental and Social Concerns:
    • Infrastructure development projects under the BRI have faced criticism for their potential environmental and social impacts. Ensuring that BRI projects are environmentally sustainable and consider the well-being of local communities is a challenge.
  • Geostrategic Concerns:
    • The BRI has raised geopolitical concerns, particularly regarding China's growing influence and control over critical infrastructure in partner countries. These concerns have led some countries to reevaluate their participation in the initiative.

UPSC Civil Services Examination Previous Year Question (PYQ)

Prelims

Q. Belt and Road Initiative’ is sometimes mentioned in the news in the context of the affairs of (2016)

(a) African Union
(b) Brazil
(c) European Union
(d) China

Ans: (d)


Mains

Q1. The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (2018)

Q2. “China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia”. In the light of this statement, discuss its impact on India as her neighbour. (2017)


Disabled Population and Disaster Preparedness

Source: DTE

Why in News?

A recent survey by the United Nations Office for Disaster Risk Reduction (UNDRR), released just ahead of the International Day for Disaster Risk Reduction observed on October 13, reveals a lack of progress in government policies for protecting people with disabilities during natural disasters over the last decade.

What are the Findings of the UNDRR’s Survey ?

  • Findings of Survey:
    • The 2023 survey, covering 6,000 respondents from 132 countries, shows that 84% of people with disabilities are not informed about evacuation routes, shelter homes, or personal preparedness plans, compared to 71% in 2013.
    • Only 11% of respondents are aware of disaster management plans in their local areas, down from 17% in 2013, and less than half are aware of accessible disaster risk information.
  • Concerns of Disabled:
    • People with disabilities are at greater risk during disasters, with up to 16% of the global population having disabilities and being two-four times more likely to be killed by disasters.
    • Despite increased interest in participating in community-level disaster planning, 86% of respondents still feel excluded, emphasizing the need for inclusion.
  • Suggestions of Survey:
    • The report emphasizes the interconnectedness of disasters and inequality, with unequal access to services increasing the vulnerability of the most at-risk groups.
    • The Sendai Framework for Disaster Risk Reduction 2015-2030 calls for disability inclusion, accessible disaster risk information, and inclusive early warning systems.
    • Strengthening early warning systems is crucial, as half of the countries lack these mechanisms, and timely warnings can significantly improve evacuation rates.
    • Immediate action is needed to address these challenges and ensure meaningful inclusion of people with disabilities in community disaster risk reduction planning.

What is Sendai Framework for Disaster Risk Reduction 2015-30 ?

  • About:
    • It was adopted at the Third United Nations World Conference on Disaster Risk Reduction, 2015 in Sendai, Japan.
    • The present Framework applies to the risk of small-scale and large-scale, frequent and infrequent, sudden and slow-onset disasters caused by natural or man-made hazards, as well as related environmental, technological and biological hazards and risks.
    • It aims to guide the multi hazard management of disaster risk in development at all levels as well as within and across all sectors.
    • It is the successor instrument to the Hyogo Framework for Action (HFA) 2005-2015: Building the Resilience of Nations and Communities to Disasters.

  • Actions to be taken in four Priority Areas:
    • Understanding Disaster Risk:
      • To promote the collection, analysis, management and use of relevant data and practical information and ensure its dissemination.
      • To systematically evaluate, record, share and publicly account for disaster losses and understand the economic, social, health, educational, environmental impacts.
    • Strengthening Disaster Risk Governance to Manage Disaster Risk:
      • To carry out an assessment of the technical, financial and administrative disaster risk management capacity to deal with the identified risks at the local and national levels.
      • To encourage the establishment of necessary mechanisms and incentives to ensure high level of compliance with the existing safety-enhancing provisions of sectoral laws and regulations.
    • Investing in Disaster Risk Reduction for Resilience:
      • To allocate the necessary resources, including finance and logistics, as appropriate, at all levels of administration for the development and the implementation of disaster risk reduction strategies, policies, plans, laws and regulations in all relevant sectors.
    • Recovery, Rehabilitation and Reconstruction:
      • To establish community centres for the promotion of public awareness and the stockpiling of necessary materials to implement rescue and relief activities.
      • To train the existing workforce and voluntary workers in disaster response and strengthen technical and logistical capacities to ensure better response in emergencies.

What are the Initiatives to Empower the Persons with Disabilities (PwD)?

  • Global:
    • UN Convention on the Rights of Persons with Disabilities:
      • The UN Convention on the Rights of PwD (UNCRPD), which was adopted in 2006, defines persons with disabilities as those “who have long-term physical, mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective participation in society on an equal basis with others”.
      • India ratified the Convention in 2007.
        • The Indian Parliament enacted the Rights of Persons with Disabilities Act, 2016 with a view to fulfilling the obligations under the UNCRPD.
  • Indian Efforts for Persons with Disability:
    • Constitutional Provisions:
      • Article 41 of the Directive Principles of State Policy (DPSP) states that the State shall make effective provision for securing 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.
    • Legislation for Disabled - Right of Persons with Disabilities Act, 2016:
      • The Right of Persons with Disabilities Act, 2016 replaces the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.
      • The types of disabilities have been increased from 7 to 21. The Act added mental illness, autism, spectrum disorder, cerebral palsy, muscular dystrophy, chronic neurological conditions, speech and language disability, thalassemia, hemophilia, sickle cell disease, multiple disabilities including deaf blindness, acid attack victims and Parkinson’s disease which were largely ignored in earlier Act.
      • It increases the quantum of reservation for people suffering from disabilities from 3% to 4% in government jobs and from 3% to 5% in higher education institutes.
      • Every child with benchmark disability between the age group of 6 and 18 years shall have the right to free education.
    • Accessible India Campaign (Creation of Accessible Environment for PwDs):
      • A nation-wide flagship campaign for achieving universal accessibility that will enable persons with disabilities to gain access for equal opportunity and live independently and participate fully in all aspects of life in an inclusive society.
      • The campaign targets at enhancing the accessibility of the built environment, transport system and Information & communication ecosystem.

UPSC Civil Services Examination Previous Year Question (PYQ)

Mains:

Q 1. Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. (2020)

Q 2. Vulnerability is an essential element for defining disaster impacts and its threat to people. How and in what ways can vulnerability to disasters be characterized? Discuss different types of vulnerability with reference to disasters. (2019)

Q 3. Describe various measures taken in India for Disaster Risk Reduction (DRR) before and after signing ‘Sendai Framework for DRR (2015-30)’. How is this framework different from ‘Hyogo Framework for Action, 2005’? (2018)


Electoral Bonds

For Prelims: Electoral Bonds, Supreme Court (SC), Representation of the People Act, 1951, Election Commission of India (ECI), Finance Act 2017, Articles 19, 14, and 21.

For Mains: Electoral Bonds and challenges associated with it, Salient features of the Representation of People’s Act, Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Source: TH

Why in News?

Recently, the Supreme Court (SC) has referred petitions challenging the 2018 Electoral Bonds Scheme to a five-judge Constitution Bench.

  • While the Centre has termed the scheme “a big step towards electoral reform” which “will ensure transparency” and “accountability”, petitioners have contended that it affects transparency in political funding.

Note

The court has agreed to focus primarily on two critical issues related to the electoral bonds scheme:

  • The legality of anonymous donations to political parties and the infringement of citizens' right to information about political party funding, potentially promoting corruption.
  • These issues relate to the violation of constitutional Articles 19, 14, and 21.

What are Electoral Bonds?

  • About:
    • The electoral bonds system was introduced in 2017 by way of a Finance bill and it was implemented in 2018.
    • They serve as a means for individuals and entities to make donations to registered political parties while maintaining donor anonymity.
  • Features:
    • State Bank of India (SBI) issues the bonds in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore.
    • Payable to the bearer on demand and interest-free.
    • Purchased by Indian citizens or entities established in India.
    • Can be bought individually or jointly with other individuals.
    • Valid for 15 calendar days from the date of issue.
  • Authorized Issuer:
    • SBI is the authorized issuer.
    • Electoral Bonds are issued through designated SBI branches.
  • Eligibility of Political Parties:
  • Purchase and Encashment:
    • Electoral Bonds can be purchased digitally or through cheques.
    • Encashment only through an authorized bank account of the political party.
  • Transparency and Accountability:
    • Parties must disclose their bank account with the Election Commission of India (ECI).
    • Donations are made through banking channels, ensuring transparency.
    • Political parties are obligated to explain the utilization of the funds received.
  • Benefits:
    • Enhanced transparency in political party funding.
    • Accountability in disclosing donation utilization.
    • Discouragement of cash transactions.
    • Preservation of donor anonymity.

What are the Concerns Related to the Electoral Bond Scheme?

  • Contradicting its Basic Idea:
    • The central criticism of the electoral bonds scheme is that it does the exact opposite of what it was meant to do i.e. to bring transparency to election funding.
      • For example, critics argue that the anonymity of electoral bonds is only for the broader public and opposition parties.
  • Possibility of Extortion:
    • The fact that such bonds are sold via a government-owned bank (SBI) leaves the door open for the government to know exactly who is funding its opponents.
      • This, in turn, allows the possibility for the government of the day to either extort money, especially from the big companies, or victimise them for not funding the ruling party — either way providing an unfair advantage to the party in power.
  • A Blow to Democracy:
    • Through an amendment to the Finance Act 2017, the Union government has exempted political parties from disclosing donations received through electoral bonds.
      • This means the voters will not know which individual, company, or organization has funded which party, and to what extent.
    • However, in a representative democracy, citizens cast their votes for the people who will represent them in Parliament.
  • Favoritism towards Rich Corporates:
    • The Electoral Bonds Scheme has opened the floodgates to unlimited corporate donations to political parties and anonymous financing by Indian as well as foreign companies which can have serious repercussions on the Indian democracy.
      • Donations made under this scheme by corporate and even foreign entities enjoyed a 100% tax exemption, benefiting wealthy corporations.
  • Compromising Right to Know:
    • The Indian Supreme Court has long held that the “right to know”, especially in the context of elections, is an integral part of the right to freedom of expression (Article 19) under the Indian Constitution.
      • The Centre had made multiple amendments by way of two Finance Acts— Finance Act, 2017 and Finance Act, 2016, both passed as money bills.
        • The petitioners challenged the amendments as being “unconstitutional”, “violative of doctrines of separation of powers” and violative of an array of fundamental rights.
  • Against Free & Fair Elections:
    • Electoral bonds provide no details to the citizens.
    • The said anonymity does not apply to the government of the day, which can always access the donor details by demanding the data from the State Bank of India (SBI).
    • This implies that the government in power can leverage this information and disrupt free and fair elections.
  • Crony Capitalism:
    • The electoral bonds scheme removes all pre-existing limits on political donations and effectively allows well-resourced corporations to fund elections subsequently paving the way for crony capitalism.
    • Crony Capitalism: An economic system characterized by close, mutually advantageous relationships between business leaders and government officials.

Way Forward

  • There is a need for effective regulation of political financing along with bold reforms to break the vicious cycle of corruption and erosion of quality of democratic polity.
  • It is crucial to plug the loopholes in the current laws to make the entire governance machinery more accountable and transparent.
  • Voters can also help bring in substantial changes by demanding awareness campaigns.
    • If voters reject candidates and parties that overspend or bribe them, democracy would move a step higher.

Legal Insights

Electoral Bonds


China’s Aid to Sri Lanka

For Prelims: Export-Import (EXIM) Bank of China, International Monetary Fund (IMF), Line of credit (LoC), Extended Fund Facility (EFF), Haircut, Inflation, Belt and Road Initiative (BRI), Debt-Trap Diplomacy

For Mains: Impact of China’s aid to Sri Lanka and the Belt and Road Initiative (BRI) on India’s ties with the island country.

Source: IE

Why in News?

More than a year after Sri Lanka plunged into an economic crisis, it has reached an agreement with the Export-Import (EXIM) Bank of China to cover about USD 4.2 billion of its outstanding debt.

  • For India, China’s assistance to Sri Lanka will be seen as another means through which it is investing in deepening its ties with the island nation.

What is the Context of China’s Present Aid to Sri Lanka ?

  • Sri Lanka's Economic Crisis Causes and Response:
    • In April 2022, Sri Lanka declared its inability to repay its debt of over USD 83 billion, with more than half owed to foreign creditors.
    • Factors contributing to the crisis include large tax cuts in 2019, the impact of the coronavirus pandemic on the tourism industry, and fuel shortages due to the war in Ukraine.
    • Sri Lanka sought assistance from China and India, where India extended USD 500 million credit line for fuel and a USD 1 billion credit line for importing essentials.
  • Concerns and Challenges in Debt Negotiations:
    • Sri Lanka initiated negotiations with bondholders and key bilateral creditors, including China, Japan, and India, to meet IMF conditions.
      • Sri Lanka received a USD 2.9 billion IMF Extended Fund Facility, but had to secure financing assurances for debt sustainability from its creditors through debt restructuring.
        • For instance, Sri Lanka asked foreign investors for a 30% reduction in outstanding debt and hopes to reduce its overall debt by USD 16.9 billion.
    • The Paris Group attempted to bring China and India into negotiations as a whole, ensuring no nation receives preferential terms.
    • China has traditionally pursued bilateral negotiations with confidential terms, while India had concerns about joining a common platform that does not include China as it may have implications for military and strategic interests in the Indian Ocean Region.

How Strong are China-Sri Lanka Ties ?

  • Largest Creditor to Sri Lanka:
    • China is the largest bilateral creditor to the country.
    • Sri Lanka heavily relies on Chinese credit to address its foreign debt burden.
    • Investment in Infrastructure Projects:
      • China has invested about USD 12 billion in Sri Lanka’s infrastructure projects between 2006-19.
  • China’s Pursuit in the Indian Ocean:
    • China enjoys friendlier waters in South Asia and the Indian Ocean than it does in Southeast Asia and the Pacific.
    • China faces opposition from Taiwan, territorial disputes in the South China Sea and East Asia, and myriad frictions with the US and Australia.
    • Shifting Interests of Smaller Nations:
      • Sri Lanka’s economic crisis may further push it to align its policies with China’s interests.
  • India’s Concerns:
    • Opposition to SAGAR Initiative: The Chinese-proposed “Forum on the Development of Indian Ocean Island Countries” sounded in opposition to India’s SAGAR (Security and Growth for All in the Region) initiative.
    • Issues Emanating from Two Engines of Growth: China has formal control over Sri Lanka’s Hambantota port as a part of a 99-year lease.
      • Sri Lanka has decided to establish a Special Economic Zone around the Colombo port city and a new economic commission, to be funded by China.
      • Leasing of Hambantota and the Colombo Port City project makes it almost certain for the Chinese navy to have a permanent presence in the Indian Ocean which will be worrisome for India’s national security.
      • This Chinese strategy to encircle India is referred to as the Strings of Pearls Strategy.
  • Influencing India’s Neighbours: Other South Asian nations like Bangladesh, Nepal and the Maldives have also been turning to China to finance large-scale infrastructure projects.

How have Relations Between India and Sri Lanka Been?

  • Historical Ties: India and Sri Lanka have a long history of cultural, religious, and trade ties dating back to ancient times.
    • There are strong cultural ties between the two countries, with many Sri Lankans tracing their heritage to India. Buddhism, which originated in India, is also an important religion in Sri Lanka.
  • Financial Assistance from India: India provided approximately USD 4 billion worth of aid to Sri Lanka during an unprecedented economic crisis, which was crucial for the country to survive the crisis.
    • India became the first country to hand over its letter of support for financing and debt restructuring of Sri Lanka.
  • Regional and Indian Ocean Context: Both countries are significant Indian Ocean countries, and their relations are viewed in the broader regional and Indian Ocean context.
  • Economic and Technology Cooperation Agreement (ETCA): Both countries are exploring the possibility of an ETCA to integrate their economies and foster development.
  • Agreement on a Multi-Project Petroleum Pipeline: Both India and Sri Lanka have agreed to establish a multi-product petroleum pipeline from the southern part of India to Sri Lanka.
  • Adoption of India's UPI: Sri Lanka has now adopted India's UPI service, which is a significant step towards enhancing fintech connectivity between the two countries.
  • Economic Ties: India is Sri Lanka’s third largest export destination, after the US and UK. More than 60% of Sri Lanka’s exports enjoy the benefits of the India-Sri Lanka Free Trade Agreement. India is also a major investor in Sri Lanka.
  • Defence: India and Sri Lanka conduct joint military (Mitra Shakti) and Naval exercise (SLINEX).
  • Participation in Groupings: Sri Lanka is also a member of groupings like BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) and SAARC in which India plays a leading role.

Note

The Indian Prime Minister and Sri Lankan President recently resumed the ferry service, nearly four decades after it was canceled due to the Civil war in Sri Lanka.

  • The ferry links Nagapattinam in Tamil Nadu (India) to Kankesanthurai in Sri Lanka's Jaffna, aiming to bring both nations closer through enhanced connectivity and shared cultural and historical ties.
  • It will cover the 60-nautical mile journey in approximately 3.5 hours.

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Prelims

Q1. Elephant Pass, sometimes seen in the news, is mentioned in the context of the affairs of which one of the following? (2009)

(a) Bangladesh
(b) India
(c) Nepal
(d) Sri Lanka

Ans: (d)


Mains

Q2. In respect of India-Sri Lanka relations, discuss how domestic factors influence foreign policy. (2013)

Q3. ‘India is an age-old friend of Sri Lanka.’ Discuss India's role in the recent crisis in Sri Lanka in the light of the preceding statement. (2022)


Foreign Contribution Regulation Act

For Prelims: Foreign Contribution Regulation Act, Emergency in 1976 ,

For Mains: FCRA Act and its Significance, Foreign Contribution (Regulation) Amendment Act, 2020

Source: TH

Why in News?

Recent data from the Ministry of Home Affairs has revealed a concerning trend related to the registration of non-governmental organizations (NGOs) under the Foreign Contribution (Regulation) Act (FCRA), 2010 in India.

  • The data suggests that NGOs are not accurately depicting their operational areas in their FCRA registrations and are involved in activities that deviate from their stated objectives.

What is the Foreign Contribution Regulation Act?

  • About:
    • The FCRA was enacted in 1976 during the Emergency period due to concerns about foreign interference in India's affairs through financial support to independent organizations.
    • FCRA was designed to regulate foreign donations to individuals and associations, ensuring that they operate in a manner consistent with the values of a sovereign democratic republic.
  • Amendments to FCRA:
    • 2010 Amendment:
      • Enacted to consolidate the law to regulate the acceptance and utilization of foreign contribution by certain individuals or associations and to prohibit acceptance and utilization of foreign contribution for any activities detrimental to the national interest.
    • 2020 Amendment:
      • Prohibiting the transfer of foreign contribution to any other person or organization.
      • Reducing the limit of usage of foreign contribution for administrative expenses from 50% to 20%.
  • FCRA Registration:
    • Registration under the FCRA is essential for receiving foreign donations in India.
      • It's granted to individuals or associations engaged in various areas of work, including cultural, economic, educational, religious, or social programs, among others.
      • The FCRA regulates foreign contributions in these defined areas to ensure transparency and compliance with the law.
    • Entities can register under multiple categories based on their programs, allowing for diverse activities.
    • Applicants need to open a bank account for the receipt of the foreign funds at a specified branch of State Bank of India in New Delhi.
  • Prohibitions of Activities Under FCRA Registration:
    • The applicant must not represent fictitious entities.
    • The applicant should not have been involved in religious conversion activities, either directly or indirectly.
    • The applicant should not have a history of prosecutions related to communal tension or disharmony.
    • The applicant must not be engaged in activities related to sedition.
    • The FCRA prohibits candidates, journalists, media companies, judges, government servants, politicians, and political organizations from receiving foreign funds.
  • Validity and Renewal:
    • FCRA registration is valid for five years, and NGOs are required to apply for renewal within six months of the registration's expiry.
    • The government has the authority to cancel an NGO's FCRA registration for various reasons, including violations of the Act or a lack of reasonable activity in their chosen field for two consecutive years.
      • Once canceled, an NGO is ineligible for re-registration for three years.
  • FCRA 2022 Rules:
    • In July 2022, the MHA introduced changes to FCRA rules. These changes included increasing the number of compoundable offences from 7 to 12.
    • The rules also raised the limit for contributions from relatives abroad that do not require government intimation from Rs 1 lakh to Rs 10 lakh and extended the time limit for intimation of the opening of bank accounts.

What are the Concerns of NGOs Regarding the FCRA?

  • Strict Compliance:
    • The FCRA registration process demands extensive documentation and involves strict compliance, which can pose challenges for NGOs.
    • The FCRA's interpretive ambiguity can be exploited by authorities to target and restrict NGOs.
  • Administrative Delays:
    • Lengthy administrative procedures for FCRA registration and renewal delay NGOs' operations and funding access.
  • Lack of Transparency:
    • Some NGOs have been criticized for lacking transparency in their utilization of foreign funds received under the FCRA.
      • Concerns often arise when the specific purposes and beneficiaries of these funds are not clearly disclosed.
  • Uneven Access to Funding:
    • The complex FCRA registration process poses challenges for organizations, with high denial rates affecting their ability to receive foreign contributions.
  • Potential for Political Influence:
    • Some have raised concerns about political influence in the FCRA registration and regulation process, which may impact the approval or denial of FCRA registrations.

Way Forward

  • Strengthen the oversight mechanisms to prevent any potential misuse of foreign contributions.
  • Simplify and expedite the FCRA registration process to promote greater access to funding for legitimate NGOs.
  • Ensure that the FCRA registration and regulation processes are free from political influence and are based on objective criteria.
  • NGOs should be encouraged to provide clear and detailed reports on the utilization of foreign funds, ensuring that purposes and beneficiaries are explicitly disclosed.

Quantum Engine

Source: TH

Why in News?

Researchers have made a groundbreaking discovery by developing a quantum engine, referred to as the 'Pauli engine,' which can convert the energy difference between two quantum states of a group of atoms into useful work.

  • This innovation has the potential to advance our understanding of quantum thermodynamics and could have applications in the development of more efficient quantum computers.

What are Quantum States and Quantum Engines?

  • Quantum State:
    • A Quantum state is a mathematical description of the physical properties of a quantum system.
      • In quantum mechanics, the fundamental theory that describes the behavior of matter and energy at the smallest scales, quantum states provide a complete specification of a system's properties, including its position, momentum, energy, spin, and other observable quantities.
    • Quantum phenomena often defy our common sense and challenge our classical understanding of the world.
      • One of these phenomena is the difference between two types of quantum particles: bosons and fermions.
        • Fermions are the building blocks of matter, bosons are particles that carry the forces acting between them.
      • Bosons are particles that can share the same quantum state, while fermions are particles that obey the Pauli exclusion principle, which forbids them from occupying the same quantum state.
        • At low temperatures, bosons can behave very differently than fermions because an unlimited number of them can occupy the same lowest energy level, while fermions have to fill up higher energy states.
    • This energy difference between bosons and fermions has inspired researchers to design and build a novel quantum engine that can convert this difference into useful work.
  • Quantum Engine:
    • The quantum engine or Pauli’s engine consists of a gas of lithium-6 atoms that are trapped in a combined optical and magnetic trap.
      • The gas can be tuned to behave like bosons or fermions by changing the magnetic field around it.
        • This is possible because the atoms can pair up into bosonic molecules or dissociate into individual fermionic atoms depending on the strength of the magnetic field.
    • The engine operates in a four-step cycle and it opens up new possibilities for studying quantum thermodynamics and its implications for other fields of physics.

Conclusion

  • While the quantum engine is still in the proof-of-concept stage. One application of the quantum engine could be in cooling the particles used in quantum computers. Quantum computers require extremely low temperatures to operate effectively, and the quantum engine could potentially serve as a cooling mechanism for these particles, similar to how an air-conditioner cools a room.

UPSC Civil Services Examination, Previous Year Questions (PYQs)

Q. Which one of the following is the context in which the term "qubit" is mentioned? (2022)

(a) Cloud Services
(b) Quantum Computing
(c) Visible Light Communication echnologies
(d) Wireless Communication Technologies

Ans: (b)


Regional Comprehensive Economic Partnership

Source: TH

Why in News?

Four years after India's exit, neighboring nations Sri Lanka and Bangladesh are considering joining the Regional Comprehensive Economic Partnership (RCEP).

What is a Regional Comprehensive Economic Partnership?

  • About:
    • The RCEP is a significant economic agreement between ASEAN members and Free Trade Agreement (FTA) partners.
    • RCEP is the world's largest trading bloc. It is designed to promote economic integration, trade liberalization, and cooperation among member nations.
    • The RCEP negotiations began in 2012. It was officially signed in November 2020, marking a major milestone in regional trade. It was entered into force on January 1, 2022.
  • Member Countries:
    • 15 member countries, such as China, Japan, New Zealand, South Korea, Australia, and ASEAN nations( Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam).
  • Coverage Areas:
    • The RCEP negotiation includes: trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement, e-commerce, small and medium enterprises (SMEs) and other issues.
  • Objectives of RCEP:
    • Facilitate trade and investment among member nations.
    • Reduce or eliminate tariffs and non-tariff barriers to trade.
    • Enhance economic cooperation and regional supply chains.
  • Benefits of RCEP:
    • Promotes economic growth and regional stability.
    • Streamlines trade procedures and regulations.
    • Encourages foreign investment.
    • Enhances competitiveness and innovation.
  • Trade Volume:
    • RCEP member nations represent over 30% of the global Gross Domestic Product(GDP).
    • The trading bloc covers about one-third of the world's population.
    • It has the potential to significantly impact global trade.
  • RCEP's Role in Global Trade:
    • RCEP strengthens the influence of the Asia-Pacific region in international trade.
    • The agreement can serve as a model for future trade deals and regional cooperation.
  • India and RCEP:
    • India was a founding member of the RCEP. In 2019, India decided to withdraw from the RCEP negotiations.
    • India's decision to exit the RCEP was based on concerns about the impact on its domestic economy.
      • Primary concerns included fears of an influx of Chinese goods into the Indian market, affecting local industries.
      • Issues related to mobility in services and reservations from the agriculture sector and small businesses were contributing factors.

UPSC Civil Services Examination Previous Year Question (PYQ)

Q. The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as (2016)

(a) G20
(b) ASEAN
(c) SCO
(d) SAARC

Ans: (b)


IndiaSkills 2023-24

Source: PIB

Why in News?

Recently, the Ministry of Skill Development and Entrepreneurship has launched IndiaSkills 2023-24 and commended the World Skills Competition (WSC) 2022 winners.

What is IndiaSkills 2023-24?

  • About:
    • IndiaSkills 2023-24 is a skill development competition which aims to foster and enhance the skills of individuals in various domains, preparing them for national and international skill competitions.
    • IndiaSkills is the precursor to the WorldSkills competition. Participants who will excel in IndiaSkills at the national level will take part in the global event WorldSkills.
  • Objectives:
    • Promotion of Employable Skills: The program underlines the importance of developing employable skills that align with market needs, increasing the acceptance of the workforce within the industry.
    • Addressing Skill Gaps: It aims to identify and bridge skill gaps by emphasizing the mapping of skills needed in the industry, reducing the disparity between degrees earned and practical skills acquired.
    • Integration of Competencies and Knowledge: Equal emphasis is placed on competencies, applied knowledge, and hands-on training to prepare individuals to lead effectively in the 21st century.

What is the World Skills Competition?

  • About:
    • The WorldSkills Competition, organized by WorldSkills International is held biennially and involves 86 member countries.
    • These competitions serve as a benchmark for high performance and offer an objective means to evaluate vocational excellence.
  • India’s Performance in WSC 2022:
    • India participated in 50 skills and secured its best-ever ranking, 11th position, with 2 Silver Medals, 3 Bronze Medals, and 13 Medallions for Excellence.
    • The participation included a diverse range of skills such as hotel receptionist, mechatronics, Mobile Robotics, Water Technology, bakery, web technologies, and more.
      • Indian competitors were selected through the IndiaSkills Competition 2021 and were trained under WorldSkills India Experts and trainers.

Rapid Fire Current Affairs

Bathukamma Festival

The nine-day-long annual festival of flowers Bathukamma began on a colorful note across Telangana.

  • It is a colorful floral festival celebrated by women with exotic local flowers.
    • The festival coincides with the monsoon, bringing water to ponds and wildflowers in vibrant colors.
    • Local flowers like 'gunuka,' 'tangedu,' 'banti,' and 'nandi-vardhanam' are abundantly used.
  • The festival begins a week before the ‘Saddula Bathukamma’ (the grand finale of the Bathukamma festival) which falls two days before Dussehra.
    • During the entire preceding week, women make ‘boddemma’ (a deity of Gowri – mother Durga – made with earthly mud) along with Batukamma and immerse it in the pond.
    • This helps reinforce the ponds and helps it retain more water.
  • The festival reinforces the bond between humans, the earth, and water, with rituals aimed at preserving natural resources.

Pain as a Warning System

  • Pain is subjective and psychological, primarily associated with tissue damage, and serves as a warning system.
    • Pain receptors in the skin and body tissues are activated by chemical stimuli during potential damage.
  • Acute pain has effective treatment options, but chronic pain (long-standing pain) is complex, and influenced by psychological factors.
  • Pain thresholds, which provide an indirect measure of pain, can be evaluated using a range of techniques.
    • Among these methods, a commonly employed one is the dolorimeter, which utilizes heat sources and precise timing mechanisms. Additionally, pressure algometers offer a safer alternative for measuring pain thresholds by applying pressure to a flat bony surface.
  • Some individuals lack the ability to feel pain or feel it minimally, leading to higher risks and shorter life expectancies.

Estivation

Recently, estivation, an intriguing animal survival strategy during hot and dry summers, has gained recognition for its remarkable adaptations to extreme conditions.

  • Estivation is a biological phenomenon whereby the animal enters a long period of dormancy, or inactivity, in response to high temperature or maybe even drought-like conditions to conserve energy and water in a difficult time.
    • It helps animals avoid desiccation, a condition characterized by extreme dryness of the skin and shields them from the risk of predation.
  • Examples of Estivation:
    • West African lungfish (Protopterus annectens) burrows into the mud of a drying water body and secretes a cocoon of mucus around itself during a drought.
    • Desert tortoises (Gopherus agassizii) dig burrows and retreat into them in hot summer months.

Maiden Test Flight of Gaganyaan

The Gaganyaan mission’s Flight Test Vehicle Abort Mission-1 (TV-D1) will take place on 21st October 2023 from the Satish Dhawan Space Centre in Sriharikota.

  • TV-D1 will demonstrate the performance of the Crew Escape System.
  • The ultimate aim of Gaganyaan project is to demonstrate human spaceflight capability by launching a crew of 3 members to an orbit of 400 km for a 3 days mission and bring them back safely to earth, by landing in Indian sea waters.

Read more: Gaganyaan mission


69th National Film Awards

Recently, the President of India presented 69th National Film Awards in various categories in New Delhi.

  • As a part of the event, the Dadasaheb Phalke Lifetime Achievement Award for the year 2021 was presented to Ms. Waheeda Rehman.
  • Dadasaheb Phalke, also known as the "Father of Indian Cinema," was a prominent film director, producer, and screenwriter who is credited with making India's first full-length feature film, Raja Harishchandra, in 1913.
    • Phalke was a pioneer in Indian cinema and made over 100 silent films during his career.

Read more: Dadasaheb Phalke Award