Important topics and their relevance in UPSC CSE exam for December 20, 2023. If you missed the December 19, 2023 UPSC CSE exam key from the Indian Express, read it here FRONT PAGE Opposition benches are almost empty: 49 more MPs suspended, total now 141 Syllabus: Preliminary Examination: Indian Polity and Governance Main Examination: General Studies II: Parliament and State legislatures—structure, functioning, conduct of business, powers & privileges and issues arising out of these Key Points to Ponder: • What’s the ongoing story-A day after 78 Opposition MPs were suspended from Parliament in the highest single-day suspensions so far, another 49 Lok Sabha members were suspended for the rest of the session on Tuesday, taking the total to 141 – 95 from Lok Sabha and 46 from Rajya Sabha — since last Thursday. • Why the suspensions? • The Opposition accused the government of trying to “demolish democracy” and bulldoze key legislation in an “Opposition-less” Parliament-Discuss • What is Opposition in a democracy? • What is the role of opposition in the Parliament? • Opposition in India-What you know in this regard? • Do you think that autocracy of government has increased over a period of time? • “The Lok Sabha on Tuesday passed three key Bills without any participation from Opposition members”- What are those three key Bills? • For Your Information-The Lok Sabha on Tuesday passed three key Bills without any participation from Opposition members who protested outside the House over suspension of over 140 of their colleagues. The House passed The National Capital Territory of Delhi Laws (Special Provisions) Second (Amendment) Bill, 2023; Central Goods and Services Tax (Second Amendment) Bill; and the Provisional Collection of Taxes Bill, 2023 with a voice vote following brief discussions where only MPs from the BJP and its allies participated. The National Capital Territory of Delhi Laws (Special Provisions) Second (Amendment) Bill, 2023 aims to protect unauthorised colonies from demolition or sealing for three more years. The GST Bill aims to bring certain sections of the CGST Act dealing with appellate tribunals in consonance with the Tribunal Reforms Act-2021. The Provisional Collection of Taxes Bill-2023 will give immediate effect to the changes in customs and excise duties announced in the Budget. It seeks to obtain the authority from Parliament to provisionally levy and collect the newly imposed or increased duties of customs and excise for 75 days. • What is the importance of debate in parliamentary procedure? • “The standoff in Parliament is not new, but this time it is unique”-Do you agree with the given statement? • Do You Know-The regular disruption of our parliamentary proceedings by MPs started in the 1960s. These were by individual MPs who felt that the presiding officer was not giving them adequate opportunity to highlight matters they considered important. MPs like Ram Sewak Yadav and Mani Ram Bagri, members of the third Lok Sabha (1962-67), were routinely warned by the Speaker to adhere to parliamentary norms. On different occasions, their repeated disruptions led the House to suspend them for seven days. They were, perhaps, the first parliamentarians that the Lok Sabha excluded from its proceedings. Towards the end of its term, the third Lok Sabha suspended eight MPs together, indicating that disruptions were going to become the norm in our parliamentary discourse. Since then, there have been numerous occasions when MPs have disrupted the national legislature and have been disciplined for it. But with time, parliamentary disruptions slowly transitioned into a political tool. Multiple presiding officers of Parliament have highlighted this changing trend. Speaker of the 14th Lok Sabha Somnath Chatterjee remarked that “on many occasions, there are disruptions in the proceedings of the House which take place not spontaneously but because of the deliberate acts of stalling the proceedings by shouting and trooping into the well of the House, only intended not to allow the Houses of Parliament to function.” And while the nature of the disruption evolved, Parliament’s institutional response remained simplistic and unchanged. It still views disruptions as a disciplinary problem that can be addressed by penalising MPs. Part of the problem lies in the way we view our Parliament. Our Constitution framers designed our national legislature as an institution that was meant for the government to transact its business. They gave the government the power to convene Parliament. The rules of parliamentary procedure strengthened this thought process. These rules were based on the pre-independence British template. Their purpose was to ensure the colonial government’s business had primacy in the legislature. Adding to this notion, was the Westminster parliamentary principle that the smooth functioning of the legislature was the responsibility of the government. This is a flawed way of looking at the highest law-making, accountability and representative institution in the country. This gives the government the power to decide the legislature’s agenda and control what issues get debated in it. Legislatures are collaborative spaces, where both the treasury and the Opposition should work together for a better outcome for the country. An elected government’s role should be to set legislative and fiscal priorities. The opposition’s responsibility should either be to oppose those ideas or to strengthen them by suggesting alternatives or pointing out gaps. And if the government is not swayed then to respect the will of the people. But our parliamentary system does not provide adequate space for Opposition parties in Parliament. They can suggest and demand the raising of specific issues in the legislature. But it is up to the government whether to accept them or not. And therein lies the crux of the problem. If Opposition MPs are not able to have a say in the House, it invariably leads to disruptions. So far, the institutional response has been to penalise disrupting MPs. As recent events have shown, this approach has become unworkable. In 2005, Speaker Chatterjee had remarked that it was not possible for a presiding officer to run the House “… if a group of members is adamant on not allowing the Houses to function, it is extremely difficult, if not impossible, to regulate the proceedings in a smooth manner.” For Parliament to work effectively, penalising MPs will not be enough. It will require a change in its procedures so that the Opposition can also set the agenda for debate in the two Houses. Currently, only private members get two-and-a-half hours every Friday to discuss important legislative and policy issues. However, there is no mechanism where a group of MPs can require that a specific discussion take place in Parliament. The only mechanism available to them to force a debate is through a no-confidence motion. Perhaps, it is time that Parliament thought about incorporating specific days for the Opposition in its calendar of sittings. Like the House of Commons, these days could be reserved for deliberating on issues that the Opposition considers important. • “The recent disruptions and en masse suspension of MPs should be a wake-up call for our national legislature”-Discuss Other Important Articles Covering the same topic: 📍Most Opposition members absent, Lok Sabha passes three key Bills 📍Let them speak 📍BREACH & STAIN Gyanvapi: HC orders speedy trial, says 1991 suit not barred by law Syllabus: Preliminary Examination: Current events of national and international importance and History of India Mains Examination: General Studies II: Structure, organization and functioning of the Executive and the Judiciary Key Points to Ponder: • What’s the ongoing story- Setting a six-month deadline for completion of proceedings before a Varanasi court in a 1991 suit by Hindu plaintiffs seeking possession of the Gyanvapi mosque complex, the Allahabad High Court has dismissed five petitions by the UP Sunni Central Waqf Board and the mosque committee, saying the 1991 original suit is not barred by provisions of The Places of Worship (Special Provisions) Act, 1991 • What exactly has the Allahabad High Court said? • What is the title suit of 1991? • Quick Recall-This is the original title suit in the Gyanvapi issue filed on behalf of the deity Adi Vishweshwar, like in the Ayodhya case. In 1995, Civil Judge (Senior Division), Varanasi, had framed eight key issues to be adjudicated in the plea. Among these was the crucial aspect of whether the suit would be barred under the Places of Worship Act, 1991. In a civil suit, averments made by the petitioners are to be prima facie accepted. The Code of Civil Procedure (CPC) bars a strict scrutiny of the claims made in a plaint at the initial stage. Once the plea is accepted, only then petitioners are called upon to bring evidence to the table. The only way to challenge a suit is under Order 7 Rule 11 of the CPC, which provides for rejection of a plaint where the suit appears from statement to be barred by any law. If a Court decides that there is no bar under any law or by limitation (where time to file a suit has expired), then the Court has to hear the claims, however flimsy they might be. The trial court initially decided that the suit was barred under the 1991 Act. However, the Hindu side filed a revision application, and the revisional court set aside the trial court order and directed that the suit had to be decided on merits. On appeal, the Allahabad High Court on October 13, 1998 stayed the revision order and effectively the suit, which meant that the proceedings were stalled. This prompted the petitioners to file several new pleas in 2021 to revive their claim over the Gyanvapi mosque. These pleas have been filed on behalf of other deities, including Maa Shringar Gauri, seeking the right to worship. • How has the suit now been revived? • What are the claims in the 1991 petition? • What is the Muslim side’s counter? • What is the Places of Worship (Special Provisions) Act, 1991? • For Your Information-The Places of Worship (Special Provisions) Act, 1991 mandates that the nature of all places of worship, except the one in Ayodhya that was then under litigation, shall be maintained as it was on August 15, 1947. The Act, brought in by the P V Narasimha Rao-led Congress government during the height of the Ram temple movement, was also meant to apply to the disputed Kashi Vishwanath temple-Gyanvapi mosque complex in Varanasi and the Krishna Janmabhoomi temple-Shahi Idgah mosque in Mathura. Even the Supreme Court, in its landmarking November 2019 ruling on the Ram Janmabhoomi-Babri Masjid title suit which went in favour of the Hindu parties, had underlined that the Act is “a legislative intervention which preserves non-retrogression as an essential feature of our secular values”. The PLACES of worship Act, enacted during the height of the Ayodhya movement, mandates that the nature of all places of worship, except the Ram Janmabhoomi-Babri Masjid that was then under litigation, shall be maintained as it existed on August 15, 1947. Other Important Articles Covering the same topic: 📍Gyanvapi mosque case: What is the 1991 suit, why it was revived Citing cost, time overrun, Uttarkashi project said no to separate rescue tunnel Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: General Studies III: Disaster and disaster management and Conservation, environmental pollution and degradation, environmental impact assessment. Key Points to Ponder: • What’s the ongoing story- For 17 days last month, 41 workers remained trapped inside the partially collapsed Silkyara-Barkot tunnel in Uttarkashi district of Uttarakhand before they were rescued. This situation may not have arisen had the project not ruled out the option of a separate escape tunnel, according to a late and rapid environmental impact assessment (EIA) report reviewed by The Indian Express, due to escalation in construction time and cost, and low volume of anticipated traffic. • What exactly environmental impact assessment (EIA) report said? • “This situation may not have arisen had the project not ruled out the option of a separate escape tunnel, according to a late and rapid environmental impact assessment (EIA) report”-Examine • Why a separate escape tunnel was ignored? • What is separate escape tunnel? • For Your Information- Weighing options for the “best-suited cross-section” of the tunnel, the EIA report also rejected — as “not recommended at all and ignored” — what resembles the layout described by Minister for Road Transport and Highways Nitin Gadkari in Rajya Sabha on December 6: A “separation wall” at the centre of the tunnel’s carriageway along with “egress openings” for “escape” during an emergency. What was recommended instead was the original project plan: A dedicated 3.5m escape channel separated by a concrete barrier from a 7m carriageway meant for two-way traffic inside a D-shaped tunnel. But, as reported by The Indian Express, this design was later modified during the construction, apparently for better space utilisation and traffic safety. “Instead of leaving an escape channel on the left, we put the divider in the middle of the tunnel for single-way traffic on either side. This created more space for traffic and eliminated the risk of head-on collisions,” a senior project engineer said. A tunnelling expert involved in the rescue operation last month pointed out that a total blockage of the Silkyara tunnel made “the positioning of the divider” immaterial and only a separate evacuation tunnel could have helped. “A situation like this (collapse) requires a separate evacuation duct running next to the main tunnel with access at regular intervals, or a few lateral inclined escape adits rising to the ground surface. Having an escape passage in the same tunnel helps during traffic or fire incidents, but not if there is a total blockage,” the expert said. The rapid EIA report considered only vehicular accidents under “Various Scenarios of Risks and Disaster”. It rejected the option of constructing “two parallel tunnels about 18m apart” apart and connected at suitable intervals. “The construction time and cost required is more for two tunnels, two portals and two sets of ventilation systems. This system is best suited in case of heavy traffic volume but at current location, the traffic volume is only 2000 PCU. Hence this proposal is also not recommended,” it said — PCU stands for passenger car unit. The 208-page rapid EIA report was submitted by the Ministry of Road Transport and Highways (MoRTH) to a Supreme Court panel in September 2020 when the Silkyara tunnel was “already under construction and more than 15% of the work has already been completed”. “Since work was already on, the rapid EIA report reflected the project plan. For the rescue channel, too, it rejected the options not on the card. It could not have predicted that the project would go on to drop the escape channel altogether,” a consultant involved in the EIA process said. Sanjeev Sharma, Director (Technical) of Enviro Infra Solutions, the company that conducted the EIA, declined to comment. Project developer National Highways & Infrastructure Development Corporation Ltd (NHIDCL), owned by the MoRTH, did not respond to requests for comments. The Silkyara-Barkot tunnel is part of the 889-km Char Dham project which was broken down into “53 civil works” to avail the exemption from environmental clearance offered to all linear projects under 100 km since 2013. As a result, no segment of the mega highway project was required to conduct an EIA, otherwise mandatory under the Environment Act. Other Important Articles Covering the same topic: 📍400 hours and many setbacks later, Uttarakhand tunnel rescue op is a success 📍Express View: Triumphs and lessons of the Uttarkashi tunnel rescue IN PARLIAMENT Gap in Lumpy Skin Disease data from dept: House panel Syllabus: Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc. Mains Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Key Points to Ponder: • What’s the ongoing story- Expressing doubts over the figures of cattle deaths by Lumpy Skin Disease (LSD), a Parliamentary Standing Committee has said that there was a gap or mismatch in the data relating to number of cattle affected as furnished by the Department of Animal Husbandry and Dairying (DAHD) and the ground reality. • What exactly Parliamentary Standing Committee said? • What is the Lumpy Skin Disease? • Have such outbreaks occurred earlier; and are humans at risk? • How can the spread of the disease be prevented? • For Your Information-According to a report by GAVI, the Global Alliance for Vaccines and Immunisation, the Lumpy Skin Disease (LSD) disease is caused by a virus called the Capripoxvirus and is “an emerging threat to livestock worldwide”. It is genetically related to the goatpox and sheeppox virus family. LSD infects cattle and water buffalo mainly through vectors such as blood-feeding insects. Signs of infection include the appearance of circular, firm nodes on the animal’s hide or skin that look similar to lumps. Infected animals immediately start losing weight and may have fever and lesions in the mouth, along with a reduced milk yield. Other symptoms include excessive nasal and salivary secretion. Pregnant cows and buffaloes often suffer miscarriage and in some cases, diseased animals can die due to it as well. The first outbreak of LSD was reported in Odisha in September 2019, which in subsequent years acquired pandemic scale. As on October 30, 2.87 lakh animals were affected and 22,313 animals died during year 2023, as per the report. Questioning the accuracy of the data, the Standing Committee on Agriculture, Animal Husbandry and Food Processing noted that the country faced a devastating outbreak of the disease in 2021-22 resulting in large scale death and emaciation of cattle. “The Committee, however, expresses doubt on the data relating to death of the cattle in the country as a result of the Lumpy Skin Disease and also noted with anguish that there was a gap/mismatch in data relating to number of cattle affected and died as furnished by the Department and the actual ground realities,” it said. “The Department had apprised the Committee that it is totally dependent on State Governments/UTs for data regarding infected, vaccinated, treated and dead cattle in country and they (States/UTs) are following proper mechanism/system for ensuring compilation of accurate data,” said the committee in its report titled ‘Spread of Lumpy Skin Disease in Cattle in the Country and Issues Related Therewith’, which was tabled in the Lok Sabha on Tuesday. The committee said, “Further, during the visits of central teams comprising Departmental Veterinarians and ICAR-NISHAD scientists to the affected states, no such mismatch between the cumulative data for spread of LSD infection, mortality and recovery rate in state and UTs and that of the actual situation of the ground are noticed.” “The Committee are of considered view that the data regarding infection, mortality, recovery of cattle from LSD should have been accurate as it would not have only helped in understanding the gravity of the situation, but would also have helped in controlling and containing the disease and its further spread. The Committee, therefore, recommends the department to ensure proper compilation of data relating to spread of infection and mortality of cattle from LSD so that cases of the infection and mortality do not remain unreported and underreported,” said the committee, which is headed by BJP’s PC Gaddigoudar. According to the report, “The Committee noted that the country battled the devastating Lumpy Skin Disease (LSD) outbreak among cattle in 2021-22, which killed and emaciated large number of cattle, hurting milk production and farm income.” “The Committee also recommends the department to make comprehensive efforts to ramp up disease surveillance, treatment and diagnostic infrastructure, improve veterinary services, build capacity of animal health professionals, etc to address animal pandemic in a holistic manner in future,” stated the report. Other Important Articles Covering the same topic: 📍Explained: What is Lumpy Skin Disease, the viral infection killing cattle in Gujarat, Rajasthan House panel to Govt: Ensure N-E consumers feel assured of rights Syllabus: Preliminary Examination: Current events of national and international importance. Mains Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Key Points to Ponder: • What’s the ongoing story-HIGHLIGHTING lack of proper functioning of State Consumer Protection Council (SCPCs) in the northeastern states, a Parliamentary Standing Committee has asked the Centre to see that the mandates of the Consumer Protection Act, 2019 are fulfilled in each state in the region so that the consumers feel assured of their rights and have a sense of belonging with the rest of the country. • The Consumer Protection Act, 2019-Key Highlights • What is State Consumer Protection Council? • What exactly Standing Committee on Food, Consumer Affairs and Public Distribution said? • What is the Central Consumer Protection Authority? • Central Consumer Protection Authority constituted under which act? • Central Consumer Protection Authority-know Composition, Powers and Functions • What Does Regulatory Authority Mean? • What can a consumer do in case of a violation of these guidelines? • Why did the Central Consumer Protection Authority (CCPA) issue the guidelines? • Do You Know-In its report, the Standing Committee on Food, Consumer Affairs and Public Distribution said, “The Committee note that Section 6 (3) of Consumer Protection Act, 2019 stipulates that the State Consumer Protection Council (SCPCs) shall meet as and when necessary but not less than two meetings per year. They also note that Section 8 of the Act prescribes that District Consumer Protection Councils (DCPCs) should be established in each and every district. The Committee note that the State of Arunachal Pradesh has constituted the State Consumer Protection Council (SCPC) but held no meeting. However, 18 District Consumer Protection Councils have been constituted in that state. Formation of the commission at state and district levels is nil in Tripura, Mizoram and Sikkim. Manipur and Nagaland have one and eleven district commissions each without having constituted the SCPC. As regards the State of Assam, it has constituted the SCPC but not held any meeting yet. It is only the State of Meghalaya that has constituted the SCPC and held meetings.” “The Committee, therefore, desire that the Central Government should see that the mandates of Section 6(3) and 8 of the Consumer Protection Act, 2019 are fulfilled in each of the states of the North East so that consumers in the region feel assured of their rights and have a sense of belonging with the rest of the country,” the committee said in its report on “Initiatives in the North East in the Field of Consumer Rights Protection”, tabled in the Lok Sabha on Tuesday. Other Important Articles Covering the same topic: 📍Explained: Govt to establish Central Consumer Protection Authority; what is it? EXPRESS NETWORK WHO tags JN.1 strain as ‘variant of interest’ as Covid cases rise Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: General Studies II: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. Key Points to Ponder: • What’s the ongoing story-With cases of the Covid-19 sub-variant JN.1 on the rise across several countries, the World Health Organization (WHO) on Tuesday designated it as a “variant of interest” separate from its ancestor BA.2.86 that is commonly referred to as Pirola. • What is “variant of interest”? • What is JN.1? • What do we know about JN.1? • Do You Know-The sub-variant JN.1 is a descendant of the BA.2.86 variant, commonly referred to as Pirola, and is not exactly new. The first cases of this variant were detected in the United States in September and the first case globally was detected as early as January this year. While JN.1 contains only one additional mutation on the spike protein as compared with Pirola, it has been on the watch-list of researchers because Pirola contains more than 30 mutations on the spike protein. Mutations on the spike protein of Sars-CoV-2 matter because they are the ones that attach to receptors on a human cell and allow the virus to enter it. “Due to its rapidly increasing spread, WHO is classifying the variant JN.1 as a separate variant of interest (VOI) from the parent lineage BA.2.86,” said a statement from the inter-government body. It was previously considered to be a VOI as a part of Pirola sub-lineages. WHO maintained that there was no evidence to suggest any additional public health risk posed by the variant. “Despite this, with the onset of winter in the Northern Hemisphere, JN.1 could increase the burden of respiratory infections in many countries,” the statement said. It also said that the current vaccines continue to protect against severe disease and death due to JN.1. A variant is designated as VOI by WHO if it shows a growth advantage over other circulating variants — meaning its proportion increases along with any increase in the total number of cases. A variant can be designated as VOI also if it is predicted to or known to change characteristics such as transmissibility, virulence, antibody evasion, or susceptibility to therapies and diagnostics. Once designated as VOI, the WHO monitors and tracks its global spread. The body also keeps assessing its public health risk and facilitate sharing of isolates. Member states have to report cases of VOI, monitor it, and conduct field investigations to study the potential impact of the variant. India has so far recorded at least one case of JN.1 from Kerala and around 15 cases from Goa. • Can it lead to a surge, or more severe symptoms? • What has led to the current concerns? • Do you need additional shots? • How can you protect yourself? Other Important Articles Covering the same topic: 📍Covid cases up, states told to ramp up testing EXPLAINED Telecom Bill: what it says, what concerns it raises Syllabus: Preliminary Examination: Current events of national and international importance. Mains Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Key Points to Ponder: • What’s the ongoing story- On Monday (December 18), the Centre introduced the Telecommunications Bill, 2023, in Parliament. The proposed law attempts to bring in a slew of structural changes to current regulatory mechanisms in the sector, ranging from simplification of the licensing regime, clarity on spectrum assignment, and a stringent requirement of user verification, among other things. • Telecommunications Bill, 2023-Know its key highlights • Key Highlights-The Bill seeks to simplify the current licensing regime for telecom networks by moving towards an authorisation system. Currently, the telecom department issues more than 100 types of licences, registrations, and permissions, and the Bill seeks to club many of those in a single authorisation process. While auctions will continue to be the preferred norm of assigning spectrum to entities, but outside of satellite communications, administrative allocation will be done for sectors like metro rails, community radio, defence, railways, and police, among others. The Bill also allows the government to take back spectrum that is unutilised for insufficient reasons and also opens the door for sharing, trading, and leasing of spectrum. Entities will be able to surrender unused spectrum, but will not receive payment from the government for it. A voluntary undertaking mechanism to facilitate voluntary disclosure of inadvertent lapses and to facilitate compliance has been introduced. A tiered structure for settling disputes arising out of breach of terms and conditions involving an adjudicating officer, designated committee of appeals and the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on top. Entities have been mandated to carry out biometric authentication of their users as a measure to curb fraud. The provision has raised concerns about the privacy of users. The Bill empowers the central and state governments or a specially authorised officer to seek interception, disclosure, and suspension powers in case of a public emergency or interest or safety. Press messages, meant for publication in India and of correspondents accredited to state or central governments, have been exempted from interception, although they can be intercepted for national security reasons. The Bill, which was a surprise addition to the Parliament’s list of business late Sunday evening, also empowers the Centre to take over control and management of telecommunication services and networks in the interest of national security, or in the event of a war. The Bill tabled in Parliament also lays down eligibility requirements for the chairperson of the Telecom Regulatory Authority of India (TRAI) to be appointed from the private sector. The Indian Express had first reported about this in September. • How is spectrum allocated in India? • What is administrative allocation of spectrum? • What is auction allocation of spectrum? • ‘The assignment of spectrum whether through an auction or administrative allocation for satellite communications was at the heart of a debate between the government and a divided industry’-Why? • Telecommunications Bill, 2023-What this bill says about spectrum allocation? • ‘The big debate over allocation and auction of spectrum, and overhang of the 2012 SC ruling’-What you know so far? • What was the Supreme Court’s 2012 ruling in the 2G case? • How Supreme Court’s 2012 ruling in the 2G case will impact spectrum allocation now? Other Important Articles Covering the same topic: 📍Telecommunications Bill, 2023: The changes it seeks in the telecom sector, why some have raised concerns 📍Telecom Bill 2023: What powers it gives the government for ‘national security’ Illegal Delhi colonies protected for another 3 years: what the law says Syllabus: Preliminary Examination: Current events of national and international importance. Mains Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Key Points to Ponder: • What’s the ongoing story- No punitive action such as demolitions or sealing can be taken against certain categories of slum dwellers, hawkers, and unauthorised colonies in Delhi for another three years. Both Houses of Parliament on Tuesday passed The National Capital Territory of Delhi Laws (Special Provisions) Second (Amendment) Bill, 2023 to extend the protection, which would have ended with this year, until December 31, 2026. Housing and Urban Affairs Minister Hardeep Puri told Lok Sabha that it was necessary to extend the provision to protect the 40 lakh residents of unauthorised colonies in Delhi from “inhumane” orders. • What is the background of this law (and its amendments)? • What does the amendment passed on Tuesday say? • So what happens here onward? Other Important Articles Covering the same topic: 📍Only 4 lakh registrations: Why Delhi’s unauthorised colonies lag behind ECONOMY ‘Exchange rate flexibility is a key shock absorber for India’ Syllabus: Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc. Main Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. Key Points to Ponder: • What’s the ongoing story- At a time when capital inflows have started rising and the economy is revving up, the International Monetary Fund’s (IMF) directors have agreed that India’s exchange rate flexibility should remain the first line of defense in absorbing external shocks, with foreign exchange interventions limited to addressing disorderly market conditions, the IMF said. • How is the exchange rate a shock absorber? • Does India follow flexible exchange rate? • What are the benefits of flexible and floating exchange rates? • What IMF said on India’s foreign exchange rate regime? • What the Government of India said about foreign exchange rate regime? • What are the Key findings of IMF on India’s economy? • For Your Information-India’s foreign exchange reserves touched $ 606.8 billion last week following a surge in capital inflows. IMF directors welcomed that the financial sector remains stable and resilient, as reflected in sustained growth in bank credit, low levels of non-performing assets, and adequate capital and liquidity buffers. The Executive Board of the IMF concluded the Article IV consultation with India, it said. “India’s economy showed robust growth over the past year. Headline inflation has, on average, moderated although it remains volatile,” the IMF said. Employment has surpassed the pre-pandemic level and, while the informal sector continues to dominate, formalisation has progressed. The financial sector has been resilient—strongest in several years—and largely unaffected by global financial stress in early 2023, IMF said. The current account deficit in the FY2022-23 (FY23) widened as the post-pandemic recovery of domestic demand and transitory external shocks outweighed the impact of robust services exports and proactive diversification of critical oil imports. While the budget deficit has eased, public debt remains elevated and fiscal buffers need to be rebuilt. Globally, India’s 2023 G20 presidency has demonstrated the country’s important role in advancing multilateral policy priorities. “While acknowledging declining systemic financial risks, directors broadly called for continued supervision and the use of prudential tools to preserve financial stability and manage emerging vulnerabilities, including rapid growth in unsecured personal loans. They advised further strengthening of regulatory and supervisory standards and encouraged public banks to continue building capital buffers,” the IMF added. The IMF said growth is expected to remain strong, supported by macroeconomic and financial stability. Real GDP is projected to grow at 6.3 per cent in FY24 and FY25, IMF said. The IMF said its headline inflation is expected to gradually decline to the target although it remains volatile due to food price shocks. The current account deficit is expected to improve to 1.8 per cent of GDP in FY24 as a result of resilient services exports and, to a lesser extent, lower oil import costs, the IMF said. “Directors commended the Reserve Bank of India’s proactive monetary policy actions and strong commitment to price stability. They agreed that the current neutral monetary policy stance, anchored on a data dependent approach, is appropriate and should gradually bring inflation back to target,” it said. The IMF said its directors welcomed that the financial sector remains stable and resilient, as reflected in sustained growth in bank credit, low levels of non-performing assets, and adequate capital and liquidity buffers. “While acknowledging declining systemic financial risks, Directors broadly called for continued supervision and the use of prudential tools to preserve financial stability and manage emerging vulnerabilities, including rapid growth in unsecured personal loans,” it said. They advised further strengthening of regulatory and supervisory standards and encouraged public banks to continue building capital buffers, it said. Directors noted that continuing with comprehensive structural reforms can help further leverage India’s favorable demographics and encouraged the authorities to promote job-rich, inclusive, and greener growth, the IMF said. Other Important Articles Covering the same topic: 📍Why India needs stable capital flows For any queries and feedback, contact priya.shukla@indianexpress.com The Indian Express UPSC Hub is now on Telegram. Click here to join our channel and stay updated with the latest Updates. Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.
