UPSC Key: Sree Narayana Guru, Chabahar Port and 44th Constitutional Amendment Act

Iran minister in Delhi for talks to boost ties, trade via Chabahar

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: Days before Donald Trump returns to the Oval Office, Majid Takht-Ravanchi, Iran’s Deputy Foreign Minister, has reached New Delhi for talks Friday with External Affairs Minister S Jaishankar and Foreign Secretary Vikram Misri.

Key Points to Ponder:

• India and Iran bilateral relations-know in detail

• Importance of Iran for India and India for Iran-Discuss

• Map Work-Chabahar Port

• How does the Chabahar Port enhance India’s geopolitical influence in the region?

• What is the strategic significance of the Chabahar Port for India’s foreign policy?

• Iran occupies a pivotal position in India’s regional strategy-How?

• What are the challenges and opportunities in strengthening India-Iran relations, particularly in the context of Chabahar Port and the INSTC?

• Compare the strategic importance of the Chabahar Port and Pakistan’s Gwadar Port in the context of regional geopolitics.

• How can India leverage its investment in Chabahar to counterbalance China’s influence in the region?

• The Chabahar Port is often viewed as a gateway for India’s outreach to Afghanistan and Central Asia—What are the potential challenges in realizing this vision?

Key Takeaways:

• Iran is looking at increasing bilateral trade with India, including via the Chabahar port.

• From tourism to agriculture, Tehran wants to boost ties with Delhi and bilateral talks will take place before the Trump administration takes charge on January 20.

• Iran would also like to get a sense from Indian officials on dealing with sanctions — India has stopped buying oil from Iran due to the threat of sanctions, but has continued to buy oil from Russia despite sanctions.

• For Tehran, which has suffered from the economic sanctions imposed during Trump’s first term, increasing trade with India is “very important”. Tehran hopes to diversify to other areas, including agriculture and petrochemical products through the Chabahar port.

• Iran is also looking at an increase in Indian tourist travel to Iran, and wants to facilitate that. While it’s a people-to-people exchange, it increases economic activity. Tehran also wants an increase in the number of Iranians travelling to India.

• The regional situation is also going to be discussed with the Indian government. The Iranian source expressed “concern” over the turn of events in Gaza, Lebanon and Syria.

• Iran is also building ties with Russia, and officials said that they are going to sign a major partnership pact with Russia at the end of January. Tehran also views China as a “very important” partner which has “economic power” spread across the world.

Do You Know:

• Chabahar, which sits at the mouth of the Gulf of Oman, is Iran’s first deepwater port that puts the country on the global oceanic trade route map. The port lies to the west of Iran’s border with Pakistan, about as far as Gwadar, a competing port developed by China in Pakistan, lies to the east of the border.

Chabahar port location

• Chabahar is of strategic importance to both Iran and India. It can potentially help Tehran ward off the effect of Western sanctions, and offers New Delhi an alternative route that bypasses Pakistan, which does not allow India land access for trade with Afghanistan and Central Asia.

• The port is also part of the proposed International North-South Transport Corridor (INSTC), a multi-modal transportation project linking the Indian Ocean and Persian Gulf to the Caspian Sea via Iran, and onward to northern Europe via St Petersburg in Russia.

• India’s involvement in the development of the port began in 2002, when Hassan Rouhani, then National Security Advisor to President Syed Mohammad Khatami, held discussions with his Indian counterpart, Brajesh Mishra.

• There are two distinct ports in the Chabahar project, Shahid Beheshti and Shahid Kalantari. India’s investment is restricted to the Shahid Beheshti port, according to the paper, ‘Geopolitics of Chabahar port for Iran, India and Afghanistan’, by Ali Omidi and Gauri Noolkar-Oak of the University of Isfahan (Iran).

• India, Iran, and Afghanistan signed a trilateral agreement in April 2016, after which the Indian Shipping Ministry worked at a rapid pace towards developing the port. In December 2017, the first phase of Shahid Beheshti port was inaugurated, and India sent its first consignment of wheat to Afghanistan through Chabahar that same year.

Other Important Articles Covering the same topic:

📍The history of Iran’s Chabahar port, and its imperative for India

📍What are India’s stakes in Iran’s Chabahar port?

UPSC Previous Year Prelims Question Covering similar theme:

1. What is the importance of developing Chabahar Port by India? (UPSC CSE, 2017)
(a) India’s trade with African countries will enormously increase.
(b) India’s relations with oil-producing Arab countries will be strengthened.
(c) India will not depend on Pakistan for access to Afghanistan and Central Asia.
(d) Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India.

GOVT & POLITICS

Why 20th-century reformer Narayana Guru is caught in a very contemporary row

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies I: Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues.

What’s the ongoing story: The ruling CPI(M) in Kerala and BJP have locked horns now over Sree Narayana Guru. Under contention are Chief Minister Pinarayi Vijayan’s remarks that the towering social reformer and spiritual leader was not a proponent of “Sanatan Dharma”.

Key Points to Ponder:

• Discuss the contributions of Narayana Guru to social reform in Kerala.

• How Narayana Guru’s teachings challenge the prevailing caste-based inequalities of his time?

• How political interpretations of historical figure such as Narayana Guru can reshape the legacy of social reformers?

• Discuss “One caste, one religion, one God for mankind” significance in addressing modern-day social divisions.

• Kerala’s socio-political development owes much to the efforts of reformers like Narayana Guru—What are the impact of his teachings on the state’s socio-economic and cultural transformation?

• How can India ensure that the legacy of social reformers like Narayana Guru is preserved and interpreted in a way that promotes national integration and harmony?

Key Takeaways:

• Speaking at a gathering in connection with the Sivagiri pilgrimage to Narayana Guru’s samadhi in Varkala, Kerala, Vijayan said there was an organised effort to portray Guru as the face of Sanatan Dharma.

• Vijayan added that the essence of Sanatan Dharma lies in its Varnashrama system, which Guru explicitly challenged. “Guru was someone who stood against casteism. His new age dharma was not something defined by religion but rooted in the betterment of people, irrespective of their religion… Tying (him) within the framework of Sanatan Dharma would be a sin against Guru.”

• Vijayan’s remarks followed his support to the suggestion by Sivagiri Mutt president Swami Sathchidananda that temples end the practice of making male devotees remove their shirts before entering temples.

• The BJP accused Vijayan of “disrespecting” Hindu faith, and of exploiting Guru’s legacy for political gain. Former Union minister and BJP leader V Muraleedharan said the CM had insulted the entire ‘Sree Narayaneeya’ community, a reference to the OBC Ezhavas, who are traditionally pro-Left and comprise about 23% of Kerala’s population.

Do You Know:

• Highly regarded across Kerala for blending spiritualism with a commitment to social reform, Guru’s teachings and philosophy – dating back to the early part of the last century – have come to be known as Advaita Vedanta.
—It is a doctrine of “non-duality”, in which Guru says that the “ultimate reality” or “Brahman” is singular and indivisible, and that the “individual self” or “Atman” is one with this universal essence.
—It is “ignorance” or “Maya” that creates an illusion of “duality”, leading to divisions based on caste, religion and other superficial identities, Guru said.
—His teachings call for individuals to turn inwards, recognise their “divine nature”, and embrace “the interconnectedness of all beings”.

• His simple, but revolutionary, proclamation was “One Caste, One Religion, One God for Man”, and he encouraged throwing open of consecrated temples to all castes.

• At Ardhanareeswara Temple in Karamukku, for example, Guru installed in 1927 a ‘Belgium mirror’ purchased from Kochi, inscribed with the word “OM” and virtues like “Sathyam (truth)”, “Dharmam (righteousness)”, “Daya (compassion)”, and “Shanthi (peace)”, instead of a conventional idol. This underlined his belief that spirituality lay in self-reflection, not in ritualistic idol worship.

• While he died in 1928, nearly a century ago, Guru’s influence can be seen in his statues across Kerala, the same as for B R Ambedkar in other parts.

• For the Ezhavas, he is a revered figure, with the community’s main outfit, Sree Narayana Dharma Paripalana Yogam (SNDP), carrying a lot of political heft.

• For long, the SNDP headed by Vellappalli Natesan has been supportive of the ruling regimes in Kerala. However, his son Thushar Vellappally, the national president of the SNDP’s political wing BDJS (Bharath Dharma Jana Sena), backs the BJP.

Other Important Articles Covering the same topic:

📍On Gandhi Jayanti, let’s revisit Mahatma Gandhi and Narayana Guru’s ideas of non-violence

UPSC Practice Prelims Question Covering similar theme:
2. Consider the following statements regarding Narayana Guru:
1. Narayana Guru was a 20th-century social reformer from Kerala.
2. He strongly advocated for the abolition of the caste system.
3. Narayana Guru’s teachings were primarily centered on promoting education among women.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3

THE IDEAS PAGE

Quick-fix populism, no panacea

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes

What’s the ongoing story: Himanshu Writes: They can supplement and expand social safety nets but cannot substitute for greater state investment in reforms

Key Points to Ponder:

• What is “Freebies”?

• Is there any definition of the term “freebies” given in the existing legal/policy framework?

• Discuss the pros and cons of cash transfer schemes as a policy instrument for poverty alleviation.

• Cash transfer schemes have been criticized as tools of quick-fix populism. Critically analyze this statement

• Compare and contrast the effectiveness of direct cash transfers and in-kind welfare programs (e.g., PDS and MGNREGS) in addressing poverty and inequality in India.

• The idea of Universal Basic Income (UBI) has gained traction in recent years. Evaluate its feasibility and potential impact on India’s socio-economic framework.

• Discuss the potential economic and social consequences of replacing subsidies with cash transfer schemes in India. How can governments ensure that cash transfers do not exacerbate existing inequalities?

• Direct cash transfers provide immediate relief but may not be a panacea for structural poverty. Suggest a holistic approach to addressing poverty and unemployment in India.

Key Takeaways:

Himanshu in “Quick-fix populism, no panacea” Writes:

• In India, one of the oldest national cash transfer schemes is the National Social Assistance Programme (NSAP), which provides pensions to the elderly, widowed and disabled who are unable to participate in economic activities. But cash transfers have now become the new magic wand that can be used for any problem.

• For political parties, it is the go-to solution for anything from women empowerment to agrarian distress to unemployment to poverty alleviation. Whether these actually deliver on the issues at hand is hardly a consideration as long as they deliver on the political front.

• The success of incumbent parties in Maharashtra and Jharkhand appears to be the result of such cash-transfer schemes directed towards women.

• In almost all cases, the schemes were initiated just before the elections and led to the incumbent governments returning to power in the state legislative elections.

• While women may have emerged as the new political constituency, the idea of throwing cash at problems that are difficult to resolve has become an accepted principle. This was successfully used by states such as Telangana and Odisha to deal with agrarian distress. It was then adopted by the central government by expanding the scheme to all farmers in the run-up to the 2019 general elections as PM-KISAN.

• States have now tried using cash transfers as a solution to the unemployment problem with several of them either promising or actually implementing schemes for the unemployed.

• It may be too early to examine the impact of cash transfers in the short run. However, the issue is not the success of these individual schemes but the basic premise that cash transfers can resolve all problems.

Do You Know:

• The term ‘freebie’ in the dictionary refers to an item or service that is offered or delivered without any cost. In a bulletin published in June 2022, the Reserve Bank of India (RBI) issued a definition for the term ‘freebies’ as a form of public welfare programme that is offered without any cost. The Reserve Bank of India (RBI) asserts that freebies can be differentiated from public or merit goods, such as education and healthcare, as well as other state expenditures that yield broader and enduring advantages.

• Nevertheless, discerning between welfare goods, often referred to as ‘merit’ goods, and freebies or ‘non-merit’ products poses a significant challenge. Scholars have underscored the significance of merit goods, such as free or subsidised food, education, shelter, and healthcare, in expediting human development and subsequently fostering national economic progress.

• According to N K Singh, the former chairman of the 15th Finance Commission, it is imperative to express concern against the prospect of emulating the culture of competitive freebie politics. This apprehension is supported by a comprehensive analysis consisting of seven distinct causes. To begin with, the provision of freebies undermines the fundamental structure of macroeconomic stability. The allocation of resources is distorted by the political practise of providing free goods or services.

Other Important Articles Covering the same topic:

📍Election monitor does well to refrain from stepping into debate on freebies. That discussion must remain in the political domain

UPSC Practice Prelims Question Covering similar theme:
3. Which of the following is an example of a direct cash transfer scheme in India?
(a) Mid-Day Meal Scheme
(b) Public Distribution System (PDS)
(c) Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
(d) Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

Cash transfers can change lives

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes

What’s the ongoing story: Jasmine Shah Writes—There is enough evidence of their positive impact, especially on lives of marginalised groups like women

Key Points to Ponder:

• How freebies Impact Union and State budgets?

• Why the word ‘Freebie’ is almost sounds pejorative especially in political and policy circle?

• The political dialogue built around freebies is fraught with danger. What ‘danger’ is associated with Freebies scheme?

• “Cash transfers are not freebies.” Critically analyse this statement in the context of Indian welfare policies.

• Discuss the impact of direct cash transfers on poverty alleviation and economic empowerment in India. Support your argument with examples.

• Discuss the role of technology in ensuring transparency and efficiency in the implementation of direct cash transfer schemes in India.

Key Takeaways:

Jasmine Shah in “Cash transfers are not freebies” Writes

• India ranks poorly in most global indices of women empowerment. The 2023 Global Gender Gap report by the World Economic Forum ranked India at 129 out of 146 countries.

• India is among the few countries globally to see decreasing participation of women in the workforce in the first two decades of this century, despite stellar economic growth.

• Cash and in-kind transfers to women directly allow them to tackle the multiple barriers they face in accessing education and job opportunities, besides living a life of dignity.

• The other yardstick for determining the limit of direct transfers should be their implications on the state’s finances.

• The Delhi Model stands out again by ensuring that, Delhi’s budget consistently remained in revenue surplus over the past decade and Delhi’s overall debt-to-GDP ratio reduced from 7 per cent to 4 per cent – among the lowest for any Indian state.

• Critics of such transfers rarely blink at the true freebies. Over the last decade, Indian banks have written off nearly Rs 15 lakh crore of bad loans of rich corporates with seemingly few consequences for over 12,000 wilful defaulters.

Do You Know:

• The Directive Principles of State Policy, enshrined in Part IV of the Indian Constitution reflect that India is a welfare state. More specifically, Article 38 in the Constitution says that: The State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the national life; and the State shall, in particular, strive to minimize the inequalities in income, and endeavour to eliminate inequalities in status, facilities and opportunities, not only among individuals but also amongst groups of people residing in different areas or engaged in different vocations.

• Establishment of a welfare state is a conscious policy which entails the outflow of public resources for improving the quality of life for all citizens, including those who are unable to avail themselves of the bare necessities of life

Other Important Articles Covering the same topic:

📍The 360° UPSC Debate | Are Freebies a Gateway to Financial Disaster?

UPSC Practice Prelims Question Covering similar theme:
4. The term “universal basic income (UBI)” often discussed in economic policy debates, is most closely associated with:
Which among the following could be considered a “freebie” in economic terms?
(a) Subsidized food under PDS
(b) Waiver of electricity bills for select consumer categories
(c) Mid-day meal schemes in schools
(d) Payment under MGNREGA for work done

EXPRESS NETWORK

No one can be deprived of property without adequate compensation: SC

Syllabus:

Preliminary Examination: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.

Main Examination: General Studies II: Indian Constitution—historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

What’s the ongoing story: The right to property is a human right and a constitutional right and no person can be deprived of his or her property without being paid adequate compensation, the Supreme Court ruled Thursday while also holding that in exceptional circumstances of inordinate delay in disbursement of compensation, the date of fixing the valuation can be shifted to a more recent one.

Key Points to Ponder:

• ‘The Supreme Court of India recently reaffirmed that no one can be deprived of property without adequate compensation’-What is the issue exactly?

• Discuss the evolution of the right to property in India, highlighting the implications recent Supreme Court ruling?

• What is the significance of the 44th Constitutional Amendment Act, 1978, in redefining property rights in India.

• How 44th Constitutional Amendment Act, 1978 balanced individual rights and state interests?

• The principle of “adequate compensation” for property acquisition is a cornerstone of justice—Evaluate the challenges and controversies associated with its implementation in India.

• Discuss the doctrine of eminent domain in the Indian context. How does the recent Supreme Court ruling on compensation strengthen or challenge its application?

• Analyse the role of judiciary in balancing the right to property with developmental priorities of the state. How does this impact governance and citizen-state relations?

Key Takeaways:

• “Right to Property ceased to be a Fundamental Right by the Constitution (Forty-Fourth Amendment) Act, 1978, however, it continues to be a human right in a welfare State, and a constitutional right under Article 300-A of the Constitution. Article 300-A of the Constitution provides that no person shall be deprived of his property save by authority of law. The State cannot dispossess a citizen of his property except in accordance with the procedure established by law,” a bench of Justices B R Gavai and K V Viswanathan said in its judgement.

• The decision came on an appeal against the November 22, 2022 judgement of a Division Bench of the Karnataka High Court dismissing the challenge to the judgement of a single judge of the HC on the question of acquisition of land for the Bengaluru-Mysuru Infrastructure Corridor Project in 2003.

• Writing for the SC bench, Justice Gavai said: “We do not find any error in the approach adopted by the learned Single Judge of the High Court in holding that the SLAO could not have shifted the date and it could have been done only by this Court in exercise of powers under Article 32/142 of the Constitution of India or by the High Court under Article 226 of the Constitution of India.

• The court said that “if the compensation to be awarded at the market value as of the year 2003 is permitted, it would amount to permitting a travesty of justice and making the constitutional provisions under Article 300-A a mockery”.

• The SC directed the SLAO to “determine the compensation to be awarded to the appellants herein on the basis of the market value prevailing as on 22nd April 2019. The appellants shall also be entitled to all the statutory benefits as are available to them under the 1894 Land Acquisition Act”.

Do You Know:

• On a plea by some of the land owners who said they had not been given compensation, the Special Land Acquisition Officer (SLAO), Bengaluru, by order dated April 22, 2019, decided to postpone the date of Preliminary Notification for acquisition from January 29, 2003 to 2011 and accordingly ordered the rates for that year. An amount of Rs 32,69,45,789 was awarded for 11 acre 1.25 guntas of land.

• The project proponents challenged this before the HC and a single-judge bench quashed the award and directed that fresh awards be passed in accordance with the law. The Division Bench dismissed the appeal against this following which the land owners moved the SC.

• Falling under Part IV of the Constitution titled “Directive Principles of State Policy” (DPSP), Article 39(b) places an obligation on the state to create policy towards securing “the ownership and control of the material resources of the community are so distributed as best to subserve the common good”.

• DPSP are meant to be guiding principles for the enactment of laws, but are not directly enforceable in any court of law.

Other Important Articles Covering the same topic:

📍Acquisition of pvt property not valid if proper procedure not followed, says Supreme Court

UPSC Previous Year Prelims Question Covering similar theme:
5. What is the position of the Right to Property in India? (UPSC CSE, GS1, 2021)
a) Legal right available to citizens only
b) Legal rights available to any person
c) Fundamental Right available to citizens only
d) Neither Fundamental Right nor legal right

EXPLAINED

FREESTYLE CHESS

Syllabus:

Preliminary Examination: Current events of national and international importance.

What’s the ongoing story: The world of chess had a rather tumultuous end to 2024, with top players like Magnus Carlsen and Hikaru Nakamura taking on FIDE, the global governing body of chess.

Key Points to Ponder:

• What is freestyle chess?

• What is the Freestyle Chess Grand Slam Tour?

• What did Carlsen and Nakamura allege?

• Who will be playing in the Freestyle Events this year?

Key Takeaways:

• Freestyle chess is a variant of chess that was popularised by the legendary Bobby Fischer way back in 1996. It’s chess with a twist.

• In regular chess, positions of chess pieces on the back ranks are fixed: the rooks are stationed on the corners, the knights start on the b and g files, the bishops on the c and f files. Both kings are on d file squares while the queens start on e squares.

• But in freestyle chess, the positions of these pieces are randomised at the start of the game, although the eight pawns in front of these pieces start where they usually do. This format is meant to promote creativity from players. The unique opening position in each game eliminates all the opening theories which players like Fischer and Carlsen say make chess very theoretic and bookish in the first phase.

• Players are forced to navigate uncharted territory from the first move itself rather than having the luxury of playing out the first series of moves based on preparation cooked by their team. In total, there are 960 possible starting positions on the board when the minor and major pieces at the back ranks are shuffled.

Do You Know:

• Freestyle Chess Grand Slam Tour is a series of five chess events, started by Germany’s Jan Henric Buettner, which will be held in 2025 in cities like Weissenhaus, Paris, New York, New Delhi, and Cape Town.

• The time control used at the five Freestyle Chess Grand Slam Tour events will be the same as in classical chess rather than the rapid or blitz formats.

• Last year, Carlsen won the Freestyle Chess tournament and had called the event “a dream come true” — a sentiment he rarely expresses after winning other chess events.

• For Carlsen, the combination of the umpteen possibilities provided by freestyle chess, and classical time controls — 90 minutes for the first 40 moves, followed by 30 minutes for the rest of the game in addition to an extra 30 seconds for each move — is an exciting prospect.

Other Important Articles Covering the same topic:

📍Everyday Sport: Who is a chess Grandmaster?

UPSC Practice Prelims Question Covering similar theme:
6. Consider the following statements in respect of the 44th Chess Olympiad: (2022)
1. It was the first time that Chess Olympiad was held in India.
2. The official mascot was named ‘Thambi’.
3. The trophy for the winning team in the open section is the Vera Menchik Cup.
4. The trophy for the winning team in the women’s section is the Hamilton-Russell Cup.
How many of the statements given above are correct?
a) Only one
b) Only two
c) Only three
d) All four

High credit card interest is not ‘unfair trade practice’, here’s why

Syllabus:

Preliminary Examination: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.

Mains Examination: General Studies II: Important aspects of governance, transparency and accountability, e-governance applications, models, successes, limitations, and potential; citizens charters, transparency & accountability and institutional and other measures.

What’s the ongoing story: If you have a credit card or are considering getting one, a recent Supreme Court ruling has given you another reason to think twice before defaulting on a payment. A Bench of Justices Bela M Trivedi and Satish Chandra Sharma last week held that the interest rate charged by banks could not be challenged as an “unfair trade practice”.

Key Points to Ponder:

• What is National Consumer Disputes Redressal Commission (NCDRC)?

• Why did the NCDRC place such a limit?

• What were the SC’s reasons for striking it down?

• Discuss the legal and regulatory limitations faced by credit cardholders in challenging high-interest rates in consumer courts in India.

• Analyse the role of the Consumer Protection Act, 2019, in safeguarding the rights of financial service consumers in India.

• Examine the effectiveness of the Reserve Bank of India’s regulatory framework in ensuring transparency and fairness in the credit card industry.

• “Credit cardholders are consumers, yet they face challenges in redressal mechanisms.” evaluate this statement in light of existing judicial and regulatory frameworks.

• Evaluate the balance between consumer protection and the autonomy of financial institutions in determining credit card interest rates.

Key Takeaways:

• In doing so, the SC overruled a 2008 decision by the National Consumer Disputes Redressal Commission (NCDRC) which held that banks could not charge interest above 30% per annum. The SC also held that the Reserve Bank of India (RBI) is the only authority that can impose limits on interest rates.

• In the case of “Awaz” Punita Society & Ors v. Reserve Bank of India & Ors (2007), the petitioners had filed a complaint stating that certain banks were levying “usurious” (excessive) rates of interest — in the range of 36-49% per annum — for delays or defaults on credit card payments.

• This, they claimed, amounted to an unfair trade practice under the Consumer Protection Act, 1986 (CPA). (The old CPA was repealed and replaced by the new CPA in 2019). They also claimed that the RBI was required to issue a circular restricting banks from charging interest above a specific rate.

• The RBI, however, argued that although it had already directed banks not to charge excessive rates of interest, its policy was to leave it to the banks to determine the specific rates of interest without directly regulating the subject.

• Section 21A states that, “a transaction between a banking company and its debtor shall not be re-opened by any Court on the ground that the rate of interest charged by the banking company in respect of such transaction is excessive”. Further, they also cited Section 35A which gives the RBI the power to give binding directions to banking companies in certain circumstances.

Do You Know:

• The Commission held that banks could be ordered to discontinue an “unfair trade practice” as this term has been defined widely under the CPA to include the use of deceptive or unfair practices “for the purpose of promoting the sale, use or supply of any goods or for the provision of any service”. This, the NCDRC held, could cover the activities of banking companies.

• Comparing interest rates with several countries including the US, UK, Australia, and the Philippines, the Commission concluded that 36-49% interest rates were indeed excessive.

• It also referred to the Supreme Court’s decision in Central Bank Of India vs Ravindra And Ors (2001) which stated “The power conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 is coupled with duty to act (by issuing directives)” and that “Any interest charged and/or capitalised in violation of RBI directives…shall be disallowed and/or excluded from capital sum and be treated only as interest and dealt with accordingly”.

• With this in mind, the NCDRC held that “there is no justifiable ground for not controlling the banks which exploit the borrowers by charging exorbitant rates of interest varying from 36 per cent to 49 per cent per annum, in case of default by the credit card holders to pay amount before the due date”.

• The court then set a 30% per annum cap on the maximum interest rate that banks could charge. On appeal, this decision was stayed by the SC in 2009.

Other Important Articles Covering the same topic:

📍Supreme Court sets aside NCDRC order barring banks from levying more than 30% interest rate on credit card dues

UPSC Practice Prelims Question Covering similar theme:
7. As per Indian law, which body primarily regulates the interest rates charged by credit card issuers?
(a) National payments corporation of India (NPCI)
(b) Reserve Bank of India (RBI)
(c) Public sector bank
(d) Competition Commission of India (CCI)

How in-flight Internet works

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Science and Technology- developments and their applications and effects in everyday life.

What’s the ongoing story: Air India rang in the new year by announcing the rollout of Wi-Fi Internet connectivity services on board domestic and international flights serviced by select aircraft in its fleet. This makes the airline the first in India to offer Internet connectivity on domestic flights.

Key Points to Ponder:

• Which Air India planes currently have the onboard Wi-Fi offering?

• What are the technologies available to provide in-flight Internet connectivity?

• How does in-flight Wi-Fi work?

• How expensive is this technology for airlines and passengers?

Key Takeaways:

• Wi-Fi will be offered free of charge on domestic flights operated by the select aircraft for a limited introductory period. Over time, Air India plans to progressively offer the service on other aircraft in its fleet.

• On-board internet services are fast becoming a standard offering, particularly among major full-service carriers (FSCs) globally. Air India, which returned to the Tata Group three years ago, has big ambitions to be counted among the world’s foremost airlines.

• For now, Wi-Fi will be available on the airline’s Airbus A350, Boeing 787-9, and select Airbus A321neo aircraft. The airline was already offering Internet connectivity on board international flights operated by these aircraft as part of an ongoing pilot programme.

Do You Know:

• In-flight connectivity systems primarily use two kinds of technologies — ground-based cellular towers, also known as air-to-ground (ATG) technology, and satellite-based connectivity. Both require special antennae and other equipment to be installed on the aircraft.

—In the former, an antenna — usually placed around the plane’s belly, picks up signals from the nearest tower on the ground, or ground receiver, to provide connectivity on board the aircraft. In some senses, this is similar to how our devices access wireless Internet on the ground.

Explained: How in-flight Internet works

• Multiple Wi-Fi antennae are located inside the aircraft cabin, which get signals from passengers’ devices. From these in-cabin antennae, the signals are sent to an on-board server. Till this point, the process is the same for both ATG and satellite-based connectivity.

• In the case of a satellite-based connectivity system, the signals are then transmitted through an antenna on top of the aircraft to a satellite, which relays them to a ground station or teleport.

• In response, signals are sent from the ground station to the satellite, which relays them to the aircraft. In ATG technology, the signals from the server on board the aircraft are transmitted directly to on-land cellular towers using the antenna underneath the aircraft. The towers then respond with signals to the aircraft.

Other Important Articles Covering the same topic:

📍Air India first airline to roll out Wi-Fi for select domestic flights

UPSC Practice Prelims Question Covering similar theme:
8. Which of the following technologies is primarily used for in-flight internet connectivity?
1. Terrestrial cell towers
2. Satellite communication
3. Fiber-optic cables
4. Microwave radio transmission
What is correct option given below?
a) 1 and 2 only
b) 2 only
c) 1, 2, and 3
d) 2 and 4 only

Why Uttarakhand government is promoting the winter Char Dham circuit       

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

What’s the ongoing story: The Uttarakhand government on December 8 inaugurated the winter Char Dham circuit, aimed at drawing tourists to the state in the off-season winter months.

Key Points to Ponder:

• Discuss the concept of the Winter Char Dham and its significance for promoting sustainable tourism in Uttarakhand.

• How does Winter Char Dham will benefit the local economy and preserve the traditional Char Dham pilgrimage?

• Analyse the opportunities and challenges associated with religious tourism in regional development initiative.

• Sustainable tourism is critical for ecologically fragile regions like Uttarakhand. Evaluate the role of initiatives like Winter Char Dham in achieving a balance between tourism development and environmental conservation.

• The relocation of deities to Winter Char Dham sites reflects a unique cultural tradition in Uttarakhand. Discuss the importance of such traditions in preserving regional identity and heritage.

Key Takeaways:

• The Uttarakhand government on December 8 inaugurated the winter Char Dham circuit, aimed at drawing tourists to the state in the off-season winter months.

• Nestled in the Garhwal Himalayas in Uttarakhand, are four revered Hindu shrines or dhams — Gangotri, Yamunotri, Kedarnath, and Badrinath — collectively known as Char Dham.

• Each year, from May to November, lakhs of pilgrims visit these shrines. According to Government of Uttarakhand data, more than 48 lakh pilgrims and 5.4 lakh vehicles visited Char Dham this year, accounting for roughly 8.4 per cent of Uttarakhand’s annual domestic tourist footfall.

• The Char Dham yatra (pilgrimage) thus drives the state’s economy. But during the winter months, heavy snowfall leaves these shrines inaccessible, and their gates are shut.

• During the winter months, the presiding deities of these temples are brought to shrines at lower altitudes — Mukhba in Uttarkashi is the winter seat of Gangotri Dham; Kharsali in Uttarkashi is the winter seat of Yamunotri Dham; Kedarnath’s winter abode is the Omkareshwar Temple in Rudraprayag’s Ukhimath; and Badrinath’s is at Pandukeshwar in Chamoli.

• The winter Char Dham is aimed at drawing pilgrims to these shrines, and thus attract tourist footfall to Uttarakhand during off-season months. As of December 30, the shrines recorded a footfall of 15,314 pilgrims with the Omkareshwar Temple seeing the highest footfall of 6,482 pilgrims followed by Pandukeshwar (5,104 pilgrims), Mukhba (3,114 pilgrims), and Kharsali (614 pilgrims).

Do You Know:

• According to the Uttarakhand tourism department, the Char Dham nets the state more than Rs 200 crore daily. However, the inflow during the winter season is yet to take off, although officials remain hopeful of more footfall as the yatra progresses this year.

• Ravi Chopra, the former chairman of the Supreme Court appointed High Powered Committee on the Char Dham project, said that during winter, rare and threatened animals on the high mountain slopes and crests come down for food and water. “In the final report of the HPC to the SC, we had specifically made a mention that the traffic during winters can cause disturbance for wildlife like snow leopard and mountain sheep as these are shy animals,” Chopra said.

• In July last year, the National Green Tribunal asked the state government to ascertain the carrying capacity of the Char Dham, and the Uttarakhand Pollution Control Board tasked the Wildlife Institute of India with assessing it and submitting a report within a year.

Other Important Articles Covering the same topic:

📍Explained: Why the Char Dham Yatra is a risky pilgrimage

UPSC Practice Prelims Question Covering similar theme:
9. The traditional Char Dham pilgrimage in Uttarakhand includes which of the following temples?
1. Kedarnath
2. Yamunotri
3. Badrinath
4. Gangotri
Select the correct answer using the codes below:
(a) 1 and 2 only
(b) 1, 2, and 3 only
(c) 2, 3, and 4 only
(d) 1, 2, 3, and 4

ECONOMY

Quality control orders hurting jobs in textile sector: Industry tells ministry

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

What’s the ongoing story: The Quality Control Order (QCO) on key input materials for the domestic textile industry is harming jobs due to the declining competitiveness of the downstream industry and is acting as a barrier to accessing raw materials, the Confederation of Indian Textile Industry (CITI) said in its pre-Budget memorandum to the Finance Ministry.

Key Points to Ponder:

• Discuss the role of Quality Control Orders (QCOs) in ensuring consumer safety and product quality in India.

• What is the impact of Quality Control Orders on the employment scenario in the Indian textile sector?

• While QCOs ensure product quality, they impose additional compliance costs.” Critically evaluate this statement in the context of the MSME sector in the textile industry.

• Examine the challenges faced by the textile sector in India due to the stringent implementation of Quality Control Orders.

• Discuss how Quality Control Orders can influence the Make in India initiative and promote Atmanirbhar Bharat.

Key Takeaways:

• The QCO blocks the import and sale of items that do not bear a Bureau of Indian Standards (BIS) mark. However, the industry said that the BIS certification process is cumbersome for micro, small, and medium enterprises (MSMEs) and is enabling the creation of monopolies in the country due to stronger lobbying by large businesses.

• “While competitors like Bangladesh and Vietnam have free access to such raw materials, India has imposed QCO on man-made fibre (MMF) fibre/yarn, which is acting as a non-tariff barrier (NTB) on the import of such raw materials, thereby affecting their free flow. This has resulted in a shortage of specialised fibre/yarn varieties, which has also impacted domestic prices,” CITI said.

• CITI emphasised the importance of ensuring the ample availability of all raw materials at globally competitive prices. To achieve this, it recommended that the government liberalise import policies and reduce the basic customs duty (BCD) on all MMF fibres, filaments, and essential chemicals such as PTA and MEG, which are critical for the production of these raw materials.

Do You Know:

• Quality Control Orders (QCOs) are government-initiated regulations aimed at establishing mandatory quality standards for specific products or categories. These measures ensure that products comply with defined requirements for quality, safety, and performance before they are manufactured, imported, stored, or sold in the country. The primary goal of QCOs is to prevent the influx of substandard and low-cost goods into the domestic market, providing consumers with access to products that meet established quality benchmarks.

• QCOs are protected from challenges at the World Trade Organization (WTO) when they are implemented for reasons such as health, safety, environmental protection, prevention of deceptive trade practices, or national security. The Bureau of Indian Standards (BIS) plays a key role in overseeing and ensuring adherence to the quality standards mandated by these orders.

Other Important Articles Covering the same topic:

📍Quality control orders now cover 732 products helping curb cheap quality imports: Goyal

UPSC Practice Prelims Question Covering similar theme:
10. What is a potential negative impact of Quality Control Orders on the textile sector?
(a) Increase in employment opportunities
(b) Reduction in raw material availability
(c) Job losses due to increased compliance costs
(d) Rise in export volumes of textiles

 

PRELIMS ANSWER KEY

1. (c)  2. (a) 3. (c) 4. (b) 5. (b) 6. (b) 7. (b) 8. (b) 9.(d) 10. (c)

For any queries and feedback, contact priya.shukla@indianexpress.com

Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.