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UPSC Key: Minority rights, Debroy committee, and Rupee’s exchange rateSubscriber Only

UPSC Key: Minority rights, Debroy committee, and Rupee’s exchange rateSubscriber Only

UPSC Key: Minority rights, Debroy committee, and Rupee’s exchange rateSubscriber Only

Important topics and their relevance in UPSC CSE exam for November 9, 2024. If you missed the November 8, 2024 UPSC CSE exam key from the Indian Express, read it here

Syllabus:

Preliminary Examination: Current events of national importance; Indian Polity and Governance- Constitution, Rights Issues

Mains Examination: Constitution of India —historical underpinnings, evolution, features, amendments, significant provisions and basic structure.

What’s the ongoing story: Underlining that that the determination of the “minority character” of an institution is not a rigid concept, the Supreme Court, in a narrow 4-3 majority verdict, overruled its 1967 ruling which had held that Aligarh Muslim University (AMU) was not a minority institution.

Key Points to Ponder:

• Read about the article 30 of Constitution of India.

• What is the history behind the establishment of Aligarh Muslim University (AMU)?

• What are the rights provided to minorities under constitution of India?

• Read about the court’s verdict in S Azeez Basha vs Union of India, 1967 case.

• What does the minority status mean?

• What are the criteria an institution must meet to be considered a minority educational institution?

Key Takeaways:

• “The view taken in Azeez Basha… that an educational institution is not established by a minority if it derives its legal character through a statute, is overruled,” the majority verdict, authored by Chief Justice of India D Y Chandrachud stated.

• The SC laid down the law with a “holistic and realistic” two-fold test to determine if an educational institution has a “minority character”. However, it left the factual determination of AMU’s status to a regular bench.

• The broad test which opposes a “formalistic” reading of the law essentially clears the decks for AMU to secure its minority tag.

• The Court specifically negated the government’s argument that the 1920 legislation establishing AMU did not seek to establish a minority institution at all — rather it established “an institution of national non-minority character”.

• Article 30(1) grants “all minorities, whether based on religion or language”, the right to “establish and administer” educational institutions of their choice.

• In the first limb of the test, the Court’s criteria is a determination of who established the institution, the purpose behind its establishment and whether the steps for the implementation of the idea must have been taken by the minority community.

• In the second part of the test, the Court said that the administrative-set up of the educational institution “must elucidate and affirm the minority character of the educational institution” and “that it was established to protect and promote the interests of the minority community”.

• In the Azeez Basha case, the SC constitution bench, while interpreting Article 30(1), had held that to be a minority institution, it should have been both established and administered by the minority.

• Friday’s verdict, however, said the word “established” in Article 30(1) must be given a broad meaning and emphasised that establishment is more crucial than “administration.”

• In the Azeez Basha case, the SC Constitution bench had held that AMU is not a minority institution and to enjoy the status, it should have been both established and administered by the minority.

From Editorial Page- “A special right”

• On Friday, the Supreme Court stopped short of designating the Aligarh Muslim University (AMU) as a minority institution. But its 4:3 verdict has provided a firm jurisprudential backing for clearing the controversy around AMU’s status. It lays the ground for satisfying the university’s longstanding quest to define itself as a minority institution.

• Friday’s verdict draws on a more liberal reading of Article 30 to point out that the “minority character of institutions cannot be rejected if they are conferred legal character by government statutes.”

• Friday’s verdict draws on constitutional debates and the SC’s earlier jurisprudence to arrive at an expansive and inclusive interpretation of Article 30 to insulate the university from the push and pull of the dominant politics of the day. 

•  The purpose of the Article is “to guarantee a ‘special right’ to religious and linguistic minorities that have established educational institutions. This special right is the guarantee of limited State regulation in the administration of the institution. The State must grant the minority institution sufficient autonomy to enable it to protect the essentials of its minority character,” CJI Chandrachud, who authored the majority verdict, said. Friday’s verdict should give AMU the autonomy to frame its recruitment and academic policies.

From Explained ‘SC’s test of a minority institution’

Protections for minority educational institutions (MEIs)

• Under Article 30(1), all minorities have the right to establish and administer educational institutions of their choice. 

• Under Article 15(5), MEIs are exempt from providing reservations for SCs and STs.

•  Minority status also allows educational institutions to exercise greater control over their day-to-day administration — from student admissions (they can reserve up to 50% seats for minority students) to the hiring of teaching and non-teaching staff.

Other Important Articles Covering the same topic:

????AMU verdict in top court today: the case and what’s at stake

????What Supreme Court ruled in AMU minority status case

????‘Minority character of an institution not a rigid concept’: SC overrules 1967 verdict that removed AMU’s minority tag

Previous year UPSC Prelims/Mains Question Covering similar theme:

Prelims 

(1) In India, if a religious sect/community is given the status of a national minority, what special advantages it is entitled to? (UPSC CSE 2011)

1. It can establish and administer exclusive educational institutions.

2. The President of India automatically nominates a representative of the community to Lok Sabha.

3. It can derive benefits from the Prime Minister’s 15-Point Programme.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Mains

Whether the National Commission for Scheduled Castes (NCSC) can enforce the implementation of constitutional reservation for the Scheduled Castes in the religious minority institutions? Examine. (UPSC CSE 2018)

Syllabus:

Preliminary Examination: Current events of national and international importance

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

What’s the ongoing story: Highlighting the ongoing transition and conflicts in the world, External Affairs Minister S Jaishankar Friday stressed the need for having resilient supply chains, trusted partners and diversified production.

Key Points to Ponder:

• Know about Association of Southeast Asian Nations (ASEAN)

• What is India’s Act East Policy?

• What is the history of  India-ASEAN relations?

• What are the areas of cooperation between India and ASEAN?

• Read about the Mekong Ganga cooperation and Indonesia-Malaysia-Thailand growth triangle.

• What are the common challenges faced by India and ASEAN countries?

• What is the significance of ASEAN for India?

• Map Work: Member countries of ASEAN 

Key Takeaways:

• Addressing the ASEAN-India Network of Think-Tanks in Singapore, he said, “India and ASEAN are major demographies whose emerging demands can not only support each other, but become larger productive forces in the international economy.”

• At the roundtable themed on ‘Navigating a World in Transition: Agenda for ASEAN-India Cooperation’, he said, “Collaboration can also be crucial in addressing contemporary challenges. In an era of extreme climate events, ensuring food security is a major concern. Similarly, with the experience of global pandemics, preparing for health security is no less vital.”

• East is seeing long standing issues and fissures exploding beyond expectations,” he said. Without naming China, Jaishankar said, “In our own continent, territorial disputes and challenges to international law have become a significant recurring source of instability.”

• Jaishankar said there are, and there will be political challenges in the shared region like Myanmar that India and ASEAN will have to address together. “A prime example today is the situation in Myanmar. The interest and I dare say perspective of those who are proximate… is always difficult,” he said. “We do not have the luxury of distance or indeed of time. This is increasingly the case of HADR (humanitarian assistance and disaster relief) situations as well and also maritime safety and security,” he stressed.

• He called for a stronger culture of self-help which will only arrive by “putting our heads and our time together”. “Bilateral and trilateral engagements have contributed to our closeness,” he said, citing the example of Mekong Ganga cooperation and Indonesia-Malaysia-Thailand growth triangle.

Do You Know:

• ASEAN is central to India’s Act East policy, which focuses on the extended neighbourhood in the Asia-Pacific region. 

• India’s Act East policy was originally conceived as an economic initiative but has gained political, strategic and cultural dimensions including the establishment of institutional mechanisms for dialogue and cooperation.

• India is part of the ASEAN Plus Six grouping. The other countries in this grouping includes China, Japan, South Korea, New Zealand and Australia as well.

• In 2010, a Free Trade Agreement was also signed and entered into force between India and ASEAN. While India was part of negotiations to join the Regional Comprehensive Economic Partnership (RCEP) in 2020, it ultimately decided not to do so. However, in the past eight  years, trade has grown in terms of value, barring the pandemic years of 2020 and 2021.

• India and ASEAN started to hold summits together in 2002 — a decade after the country established formal engagement with the group.

Other Important Articles Covering the same topic:

????What is ASEAN?

????ASEAN Summit 2024: PM Modi unveils 10-point plan to strengthen India-ASEAN relations

????Knowledge nugget of the day: ASEAN

Previous year UPSC Prelims/Mains Question Covering similar theme:

(2) India is a member of which among the following? (UPSC CSE 2015)

1. Asia-Pacific Economic Cooperation

2. Association of South-East Asian Nations

3. East Asia Summit

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 3 only

(c) 1, 2 and 3

(d) India is a member of none of them

(3) Consider the following countries: (UPSC CSE 2018)

1. Australia

2. Canada

3. China

4. India

5. Japan

6. USA

Which of the above are among the ‘free-trade partners’ of ASEAN?

(a) 1, 2, 4 and 5

(b) 3, 4, 5 and 6

(c) 1, 3, 4 and 5

(d) 2, 3, 4 and 6

(4) In the Mekong-Ganga Cooperation, an initiative of six countries, which of the following is/are not a participant/ participants? (UPSC CSE 2015)

1. Bangladesh

2. Cambodia

3. China

4. Myanmar

5. Thailand

Select the correct answer using the code given below:

(a) 1 only

(b) 2, 3 and 4 only

(c) 1 and 3 only

(d) 1, 2 and 5 only

 

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: GS-I and GS II: Indian culture, Agreements involving India and/or affecting India’s interests.

What’s the ongoing story: With great cultural diversity and projected economic might on its side, India will stake a formidable claim to hosting the 2036 Olympics. But the country will also need to convince the International Olympic Committee that it can deliver a seamless Games. 

Key Points to Ponder:

• Know about the Olympics games.

• Read about the International Olympic Committee (IOC)?

• What is the process for an Olympics bid?

• What would be the benefits of hosting the Olympics for India?

• Know about the Sports Authority of India’s Mission Olympic Cell (MOC).

• Where will the Olympics 2028 and 2032 be organised?

Key Takeaways:

• The letter of intent submitted last month will be scrutinised not merely for the capacity to translate on the ground fancy stadium designs, but also on India’s ability to wear the cosmopolitan garb with ease, making the country feel welcoming to athletes and spectators around the world. India has a magnificent opportunity to get its house in order, and make bold strides.

• India will need to acquire and hone the professional abilities to host the best levels of competition in various sports. The logistics of athlete accommodations, equipment quality controls, transport systems, upskilling of technical officials, besides raising athletes’ performance in near-alien sports, will be a massive challenge. 

• Every Games is judged on the ability of hosts to stay invisible and efficient, and India will need serious repairing of its poor reputation on punctuality and cleanliness. Its record in ensuring comfort for spectators has been suspect in cricket, and that aspect will need to be upgraded drastically. 

• Climate change poses large challenges for any host, but more so for India where quality of roads and construction will need tighter quality checks, given how flooding lashed top cities and wreaked havoc earlier this year, for instance. 

• India’s leadership in promoting a multipolar world has been exemplary, and it holds a unique place as a big country not reviled by the under-developed world, or resented by the big powers. But ultimately, Olympics will be about that wooden floor board not coming undone and the roof not leaking onto the field of play, and athletes reaching the venues on time. India can pull off the fancy, but it will also need to ace the basics.

Do You Know:

• India is likely to face stiff competition to its bid as IOC president Thomas Bach has said that the number of countries interested in hosting the 2036 edition is in “double digits”.

• Over the past year, the countries that have shown serious interest in hosting the 2036 Games have been Saudi Arabia, Qatar, Indonesia, Chile, and Turkey.

•  India’s main competitors are likely to be Saudi Arabia and Qatar as there is an unwritten rule of rotation of continents with the 2036 Games earmarked as Asia’s turn after Paris 2024 (Europe), Los Angeles 2028 (Americas) and Brisbane 2032 (Oceania). That being said, it’s still an unwritten rule so no candidate can be discounted.

Other Important Articles Covering the same topic:

???? 2036 Olympics: India makes hosting bid with ‘Letter of Intent’ to International Olympic Committee

???? India’s Olympic bid: Saudi Arabia, Qatar, Turkey, Indonesia among major competitors

????In 2036 Olympics bid, India underlines its religious diversity, silk and spices routes

Previous year UPSC Prelims/Mains Question Covering similar theme:

(5) Consider the following statements in respect of the 32nd Summer Olympics: (UPSC 2021)

1. The official motto for this Olympics is “A New World”.

2. Sport: Climbing, Surfing, Skateboarding, Karate and Baseball are included in this Olympics.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

Syllabus:

Preliminary Examination: Current events of national importance and Economic  Development

 Mains Examination: GS-III: Indian Economy, Effects of liberalisation on the economy.

What’s the ongoing story:  Rajeswari Sengupta writes– “Recently, there have been several reports about the stability of the rupee against the US dollar. This is typically described as a positive development. But the central bank’s decision to control the exchange rate is deeply problematic.”

Key Points to Ponder:

• What is the exchange rate? What are the types of exchange rate regimes?

• What are foreign exchange reserves and their components?

• What determines the rupee’s demand and supply vis-a-vis other currencies?

• How does the rupee’s exchange rate fluctuate?

• What are the benefits of a flexible exchange rate policy?

• Read about the Reserve Bank of India (RBI) and its role in the Indian economy.

• What are the reasons behind the RBI’s intervention in the foreign exchange market?

• What are the issues associated with the intervention of the RBI in the foreign exchange market?

Key Takeaways:

• “Admittedly, the Reserve Bank of India (RBI) has always intervened in the foreign exchange market to smooth out fluctuations of the rupee. However, since 1991, the intervention has never been as great as it is today. “

•  “The rupee’s recent stability, however, has not been driven by market forces. It has come about due to an apparent change in the RBI’s currency policy. Since late 2022, the RBI has decided to actively intervene on both sides of the foreign exchange market, on some days buying dollars to prevent the rupee from appreciating and on other days selling dollars to prevent depreciation.”

•  “There are several fundamental problems with this change in currency policy. It goes against basic economic principles.

•  “The previous flexible exchange rate policy had two practical advantages. First, the exchange rate moved up or down over the business cycle which in turn helped smooth out output fluctuations.”

•  Second, because these ups and downs balanced each other out, over long periods there was stability in the real exchange rate, that is the exchange rate adjusted for the difference in inflation between India and its trading partners. 

•  In contrast, the new inflexible system has already led to a significant real exchange rate appreciation, thereby making India’s exports more costly to foreigners, and potentially undermining the Make in India drive.

• All these bring us to the final problem — the lack of transparency. The central bank seldom communicates about its currency policy. Consequently, private sector participants in the foreign exchange market are confused. They need to guess when they see imbalances in the market, such as capital flows exerting pressure on the exchange rate.

• The exchange rate is the most important price in a market economy. If India wants to become a high-income economy, the exchange rate needs to respond freely to market forces, sending appropriate signals to market participants. If, instead, the market gets distorted merely to stabilise the currency, this may prove costly in the long run.

Do You Know:

•  The rupee’s exchange rate vis-a-vis a particular currency, say the US dollar, tells us how many rupees are required to buy a US dollar. To buy (import) a US product or service, Indians need to first buy the dollars and then use those dollars to buy the product. 

•  In a free-market economy, the exchange rate is decided by the supply and demand for rupees and dollars.

• However, in India, the exchange rate is not fully determined by the market. From time to time, the RBI intervenes in the foreign exchange (forex) market to ensure that the rupee “price” does not fluctuate too much or that it doesn’t rise or fall too much all at once.

Other Important Articles Covering the same topic:

????Explained: Making sense of exchange rate

Previous year UPSC Prelims Question Covering similar theme:

(6) Which of the following has/have occurred in India after its liberalization of economic policies in 1991? (UPSC CSE 2017)

1. Share of agriculture in GDP increased enormously.

2. Share of India’s exports in world trade increased.

3. FDI inflows increased.

4. India’s foreign exchange reserves increased enormously.

Select the correct answer using the codes given below:

(a) 1 and 4 only

(b) 2, 3 and 4 only

(c) 2 and 3 only

(d) 1, 2, 3 and 4

 

Syllabus:

Preliminary Examination: Economic and Social Development

Mains Examination: GS-II, GS-III: Government policies and interventions, Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

What’s the ongoing story: The landmark report of the 2015 expert committee on Railway Reforms, headed by the late economist Bibek Debroy, did clear the decks for a complete overhaul of the national transporter to achieve economic viability in operational terms and recover its loss of competitiveness in the transportation market.

Key Points to Ponder:

• Read about the Debroy committee and its recommendations.

• What are the challenges faced by the Indian railways?

• What initiatives have been taken by the government for the development of Indian railways?

• What is KAVACH?

• What are the various committees formed with regard to the railways?

• Read about the Gati Shakti Vishwavidyalaya.

• What are the steps taken by the government to reduce train accidents?

(Thought process: Mention Rashtriya Rail Sanraksha Kosh (RRSK), various technological upgradations that have been carried out by the Railways, ultrasonic flaw detection, mechanization of Track Maintenance, and more.)

Key Takeaways:

• While some of the recommendations have been taken on board: including the phasing out of the separate Rail Budget, the redesignation of the Chairman of Railway Board as Chief Executive Officer (CEO) and a plan to accord more powers to General Managers (GMs) and Divisional General Managers (DRMs) to take decisions “independently”, the overarching recommendation on “liberalisation” of Indian Railways has not been taken on board yet.

• Ashwini Vaishnaw, Minister for Railways, Information & Broadcasting, Electronics & Information Technology, told The Indian Express that the government also partially acted upon the recommendation for decentralisation to the division level of the mega organisation, the treatment of divisions as independent business units and DRMs being empowered to handle all types of tenders of the division.

• “The Major recommendation of the Debroy committee was to empower field officers. General Managers (GMs) and Divisional Railway Managers (DRMs) and Branch officers have been empowered. Along with this the committee had recommended to integrate and synergise technology in the railways. This is being implemented with Vande Bharat Trains and KAVACH systems. On the line of the expert committee, the Gati Shakti Vishwavidyalaya was established.” Vaishnaw told The Indian Express.

• At the top of the recommendation was liberalisation of Indian Railways. While clarifying that by the term “liberalisation”, it does not mean “privatization”, the committee said that the entry of new operators into railways will be a viable option for encouraging growth and improving services. 

Do You Know:

• Debroy committee was constituted on September 22, 2014, which submitted its final report in June 2015. The committee had made a total of 40 recommendations, out of which, 19 were fully accepted, 7 were partially accepted and 14 recommendations were rejected.

• The committee dealt with a range of issues related to the Indian Railways from decision-making structure, accounting system, human resource management & employee costs, multiplicity of different channels of entry into the IR, high revenue expenditure and low capital expenditure, financial status to setting up an Independent Regulator etc.

• Kavach, an indigenously developed, automatic train protection system, has been deployed on 1,465 route km and 139 locomotives on South Central Railway as on February 2024. Kavach tenders have also been awarded for several thousand route kilometers.

Other Important Articles Covering the same topic:

????On the growth track: How Dedicated Freight Corridors are adding to GDP, boosting Rail revenues

Previous year UPSC Mains Question Covering similar theme:

The setting up of a Rail Tariff Authority to regulate fares will subject the cash strapped Indian Railways to demand subsidy for obligation to operate nonprofitable routes and services. Taking into account the experience in the power sector, discuss if the proposed reform is expected to benefit the consumers, the Indian Railways or the private container operators. (UPSC CSE 2014)

Syllabus:

Preliminary Examination: Currentevents of national and international importance; Economic development 

Mains Examination: GS-III: Indian economy, Effects of liberalisation on the economy.

What’s the ongoing story: The US Federal Reserve cut interest rates Thursday by 25 basis points (or one quarter of a percentage point), the second reduction of 2024, while continuing to signal that inflation is coming under control. The Fed’s move comes less than 48-hours after America elected Donald Trump as its next president.

Key Points to Ponder:

• In what ways might US Fed rate cuts or hikes affect foreign investment inflows into India?

• How might changes in the US dollar effect India’s forex reserves and currency stability?

• What are the potential consequences of a change in leadership in the U.S. on the India?

• How would Trump’s proposed tax cuts and tariff obstacles effect Indian exports and trade relations?

Key Takeaways:

• Analysts have been predicting that borrowing costs in the US will fall further in the months ahead, but have warned that Trump’s impending tax cuts plans, tariff hike proposals and immigration control measures could stoke inflation and drive up government borrowing, thereby potentially driving a conflict with the American central bank. Interest rates on US debt have already surged this week, reflecting those concerns.

• The Trump presidency is being viewed as being positive for American stocks, good for the dollar, but somewhat negative for treasuries with a risk of fiscal profligacy.

• For India, the Trump presidency could mean a challenge towards balancing its growth ambitions amid disruptions to supply chains, trade wars and tariff barriers and heightened forex volatility. Delayed cuts by the Fed would also impact the trajectory of the Indian monetary policy as the Reserve Bank of India may first try to resolve the uncertainties before undertaking any significant rate cut action.

• While Trump’s promised tax cuts and tariff barriers could stimulate the American economy initially, analysts predict this could lead to higher inflation and could likely force the US Fed to end its rate-cutting cycle sooner than otherwise. That could have implications for the monetary easing plans of other countries, including India.

Other Important Articles Covering the same topic:

????As US Fed cuts rates amid unclear outlook, its impact on markets, including India

Previous year UPSC Prelims Question Covering similar theme:

(7) Indian Government Bond Yields are influenced by which of the following? (UPSC CSE 2021)

1. Actions of the United States Federal Reserve

2. Actions of the Reserve Bank of India

3. Inflation and short-term interest rates

Select the correct answer using the code given below.

(a) 1 and 2 only

(b) 2 only

(c) 3 only

(d) 1, 2 and 3

 

 For your queries and suggestions write at roshni.yadav@indianexpress.com

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