UPSC Key | Direct Seeding of Rice, Mifepristone, RoDTEP scheme and more

NDA, INDIA try to reach consensus on Speaker, Opp wants Dy Speaker Post

UPSC Syllabus:

Preliminary Examination: Indian Polity

Mains Examination: GS-II: Governance, Constitution and Polity

What’s the ongoing story- With the new Lok Sabha set to choose a Speaker on June 26, the ruling and Opposition coalitions are trying to reach a consensus on the post of the presiding officer.

Prerequisites: 

— What are the constitutional provisions related to the Speaker?

— How are a Speaker and Deputy Speaker elected?

— What are the duties of the pro-tem Speaker?

Key takeaways: 

— According to sources, the NDA is pitching for a consensus candidate and the Opposition parties agree but are pointing out that according to convention the Opposition should be offered the post of Deputy Speaker.

— Wednesday, June 26, is scheduled for the election of the Speaker if there is a contest. In case of a consensus candidate, the new Speaker will take charge without any contest the same day.

— The newly elected MPs will be sworn in by the pro-tem Speaker. According to convention, the most senior MP will be appointed as pro-tem Speaker. 

For Your Information: 

— The Constitution of India provides for the offices of the Speaker and Deputy Speaker who, according to Article 93, are to be elected “as soon as may be” after the commencement of the House.

— The Constitution neither sets a time limit nor specifies the process for these elections. It leaves it to the legislatures to decide how to hold these elections. In Lok Sabha and state legislatures, the President/Governor sets a date for the election of the Speaker, and it is the Speaker who decides the date for the election of the Deputy Speaker. The legislators of the respective Houses vote to elect one among themselves to these offices.

— The Speaker is elected by a simple majority in the House. The term ends with the dissolution of the House, unless the Speaker resigns or is removed from office before that. 

— A motion of no-confidence can be moved against the Speaker with notice of 14 days as per Article 94 of the Constitution.

Points to Ponder: 

— What are the roles and responsibilities of the Speaker and Deputy Speaker?

— What are the powers of the Speaker?

— What is the process for the removal of the Speaker?

— What are the issues associated with the office of the Speaker and its functioning?

Post Read Question:

With reference to the Speaker of Lok Sabha, consider the following statements: (UPSC CSE 2024)

While any resolution for the removal of the Speaker of the Lok Sabha is under consideration

1. He/She shall not preside.

2. He/She shall not have the right to speak.

3. He/She shall not be entitled to vote on the resolution in the first instance.

Which of the statements given above is/are correct?

(a) 1 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Other Important Articles Covering the same topic:

Explained: How are a Speaker and Deputy Speaker elected?

Economy

‘Nearly 60 times jump in silver imports from UAE unusual’

UPSC Syllabus:

Preliminary Examination: Economy

Mains Examination: GS-III: Economy

What’s the ongoing story- A near 60 times jump in silver imports during the last financial year from United Arab Emirates (UAE) is unusual since the West Asian country does not produce silver and the import jump may be indicative of a breach in rule of origin finalised by India and UAE under the free trade agreement that came into force in May 2022, a report by think tank Global Trade Research Initiative (GTRI).

Prerequisites: 

— What are the major silver-producing countries?

— What is the Most Favoured Nation (MFN) status?

— What is a Comprehensive Economic Partnership Agreement (CEPA)?

— Map work: Locate important silver mines on the world map. (Refer Atlas)

Key takeaways: 

— The think tank headed by former trade officer Ajay Srivastava said that Silver imports from the UAE increased by 5.853 per cent, from $29.2 million in FY23 to $1.74 billion in FY24, due to India charging an 8 per cent duty under UAE trade deal versus a 15 per cent MFN tariff on imports from other countries.

— “However, this trade is unusual because the UAE does not produce silver; it imports large silver bars, melts & converts these into silver grains. A check with global refiners will show that value addition in such a process is much less than 1 per cent as opposed to 3 per cent required under the FTA. Despite this, traders claim and the UAE authorities certify a 3 per cent value addition to meet CEPA rules of origin,” Srivastava said.

— GTRI said a robust monitoring mechanism should be established to track import volumes and values, ensuring quick policy responses to unusual spikes and rigorous verification of the claimed value addition by Dubai based refiners in gold and silver imports to ensure compliance with rules of origin under the trade deal.

For Your Information:

— Most Favoured Nation is a treatment accorded to a trade partner to ensure non-discriminatory trade between two countries vis-a-vis other trade partners. The importance of MFN is shown in the fact that it is the first clause in the General Agreement on Tariffs and Trade (GATT). Under WTO rules, a member country cannot discriminate between its trade partners. If a special status is granted to a trade partner, it must be extended to all members of the WTO.

— The WTO rules allow discrimination in certain cases like in cases when a country signs free trade agreements in a region. In that situation, a country may grant special favours and trade concessions to a country as compared to non-member countries of that group.

Points to Ponder: 

— What is the volume of trade between India and UAE?

— What are the benefits of MFN status?

— What are the disadvantages of MFN?

Post Read Question:

What is the Most Favoured Nation status? What are its advantages and disadvantages?

Other Important Articles Covering the same topic:

Explained: What is Most Favoured Nation status?

US, EU anti-subsidy action: Mechanism to verify tax refunds in the pipeline

UPSC Syllabus:

Preliminary Examination: Economy

Mains Examination: GS-II: Indian economy

What’s the ongoing story- The Finance Ministry and the Commerce and Industry Ministry are working on an institutional mechanism to verify tax refunds given to exporters under the government’s key duty remission scheme to steer clear of countervailing duties imposed by top importing countries such as the European Union and the US, a government official said.

Prerequisites: 

— What are countervailing duties (CVDs)?

— What is the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme?

Key takeaways: 

— This comes after the US and EU last year imposed countervailing duties (CVDs) on paper file folders, common alloy aluminium sheet and forged steel fluid following an anti-subsidy investigation. CVDs are tariffs on imported goods that are imposed to offset subsidies given by the exporting country’s government, aimed at protecting the domestic industry.

— The need for a new verification method emerged after the US sought clarity on India’s method for verification of the rates provided to the exporters under the government’s RoDTEP Scheme. The RoDTEP rates are decided by the commerce ministry based on the recommendation made by a committee headed by former Commerce and Home Secretary GK Pillai.

— The RoDTEP scheme, announced in January 2021, refunds embedded duties and taxes, such as VAT on fuel used in transportation, mandi tax and duty on electricity. It replaced the WTO-incompatible Merchandise Exports from India Scheme (MEIS) scheme, which had faced several challenges from WTO members.

— The RoDTEP scheme operates under a budgetary framework and for FY 23-24, Rs 15,070 crore was allocated to boost exports of items such as pharmaceuticals, organic and inorganic chemicals and articles of iron and steel among other items.

— Europe and the US are among India’s largest trade partners. India’s exports to the US in FY24 stood at $77 billion and about $86 billion to Europe.

Points to Ponder: 

— What are the issues associated with the RoDTEP Scheme?

— What are the initiatives taken by the government to promote the export?

— What is the WTO’s Agreement on Subsidies and Countervailing Measures?

Post Read Question:

With reference to the international trade of India at present, which of the following statements is/are correct? (UPSC CSE 2020)

1. India’s merchandise exports are less than its merchandise imports.

2. India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.

3. India’s exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit.

Select the correct answer using the code given below:

(a) 1 and 2 only 

(b) 2 and 4 only

(c) 3 only

(d) 1, 3 and 4 only

Other Important Articles Covering the same topic:

No relook at duty remission scheme needed due to US, EU action: Official

The Ideas Page

Let’s do 1991 without crisis

UPSC Syllabus:

Preliminary Examination: Economy

Mains Examination: GS-III: Economy

What’s the ongoing story- Rajat Kathuria writes- “More than three decades after liberalisation, India continues to harbour protectionist tendencies. At a time when the country is positioning itself as a leading player in geopolitics, its reluctance to integrate with global value chains doesn’t work.”

Prerequisites: 

— What were the economic crises of 1991 and the economic liberalisation reforms?

— What is protectionism?

— Check the list of countries with whom India has signed an FTA.

Key takeaways: 

— “The Global Financial Crisis of 2008, the Euro Zone struggles of 2010 and the economic downturn as a result of the Covid-19 pandemic recently, all in close succession, have prompted many governments to rethink global engagements”

— “India faces a two-pronged challenge in this regard. One is to promote its ambition of an Atmanirbhar Bharat, to make India self-reliant by being “vocal for local”, that is, prioritising domestic goods over imports. This narrative sits uneasily with India’s other ambition of attaining $1 trillion worth of exports.”

— “India’s export ambition cannot be achieved without integrating with global value chains (GVC), which in turn requires a healthy prescription of openness, foreign direct investment (FDI) and import competition. An import tariff or rise in protection is akin to an export tax. India’s hard-earned lesson that export promotion and import substitution are conflicting policies looms large over its trade policy and economic agenda. The country needs to create a balance.”

— “India’s journey towards free trade and multilateralism has been fraught with challenges. It pursued an aggressive import substitution policy during the 1980s but found import substitution and export promotion to be quite contradictory. So, during and beyond the 1991 crisis, it adopted a liberal trade policy but subsequently remained reluctant to embrace second- or third-generation trade reforms.”

— “India’s economic isolationism strategy has since changed for the better. We have signed several FTAs including four FTAs since 2021 after nine years of no agreements.”

— “Despite this, we are ambiguous about regional trade agreements (RTAs), mainly the Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Trans-Pacific Partnership (CPTPP)….There is no doubt that we now recognise the importance of deepening penetration in global markets, as reflected in flagship programmes like Make in India. Such initiatives could be helped by bilateral trade agreements, but are likely to be adversely affected by India’s reluctance to join RTAs, underlining the enduring reluctance to embrace trade for its strategic advantage.”

— “ In April 2024, an RBI bulletin underscored strong investment demand and positive business and consumer sentiments as key drivers of economic growth. We urgently need to recognise that from an economic perspective, we need open global markets more than ever for exports and for creating efficiency and competition in domestic markets. But this is often couched in obscure language. Simply put, even after 25 years of the 1991 reforms, we are humouring protectionist tendencies. Counter to the dominant narrative, openness will also aid labour-intensive manufacturing and speak to one of India’s stubborn problems of productive job creation or lack thereof.”

Points to Ponder: 

— What is the significance of the economic reforms of 1991?

— What is the Regional Comprehensive Economic Partnership (RCEP)?

— What measures should be taken for the better integration of the Indian economy with global value chains?

Post Read Question:

How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased in formalization detrimental to the development of the country? (UPSC CSE 2016)

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