THE INABILITY TO DEFINE THE LAC
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
Despite several agreements since the 1990s, India and China have failed to clearly define the Line of Actual Control (LAC), leading to repeated tensions. The issue remains in focus due to recurring border stand-offs, most notably in Eastern Ladakh in 2020.
Background
- India and China share a long and disputed boundary with no mutually accepted demarcation.
- Rajiv Gandhi’s 1988 visit to Beijing helped restart dialogue, but domestic political instability in India delayed progress.
- By 1992, both countries realized peace along the border was essential for economic reforms and global engagement.
Steps Towards Engagement (1988–1993)
- Six rounds of the Joint Working Group (JWG) talks were held from 1988 to 1993.
- Military officers were involved in discussions to prevent clashes.
- Border trade resumed in 1992 after 30+ years; consulates reopened in Mumbai and Shanghai.
- Defence Minister Sharad Pawar’s 1992 visit to Beijing initiated cooperation in military and scientific fields.
Border Peace and Tranquillity Agreement (BPTA), 1993
- Signed during PM Narasimha Rao’s visit to Beijing in September 1993.
- First official recognition of the Line of Actual Control (LAC) by both sides.
- Key provisions:
- Border dispute to be resolved through peaceful talks, not force.
- Troops not to cross the LAC; if done, withdrawal on caution.
- Joint verification in areas with differing perceptions of the LAC.
- Maintain minimal forces; future reductions based on “mutual and equal security,” considering difficult Indian terrain versus Chinese road access.
- Aim: Freeze the border situation and expand cooperation in other areas.
1996 Agreement on Confidence-Building Measures (CBMs)
- Signed during Chinese President Jiang Zemin’s India visit.
- Major elements:
- No use of force; respect the LAC until final settlement.
- Reduction of troops and heavy weaponry (tanks, missiles, artillery).
- Restrictions on large-scale military exercises near the LAC.
- Exchange of maps to clarify perceptions of the LAC.
- However, progress stalled as maps exchanged in 2000–2002 revealed wide differences.
Failure to Define the LAC
- Attempts to finalize maps failed due to maximalist positions from both sides.
- Differences persisted at Depsang, Pangong Tso, Chumar, Demchok, and other points.
- By 2005, both sides abandoned efforts to clarify the LAC.
- This ambiguity led to repeated border face-offs, including the violent clashes in 2020.
Conclusion
The 1993 and 1996 agreements aimed to maintain peace but left the LAC undefined. The absence of a clear boundary remains the root cause of recurring India–China border tensions.
GST 2.0 AND ITS ROLE IN EMPOWERING YOUNG INDIA
TOPIC: (GS3) ECONOMY: THE HINDU
The government has introduced GST 2.0 reforms, aiming to simplify tax rates, cut levies on essentials, and exempt services such as insurance. The move is expected to boost youth-driven consumption and economic growth.
India’s Demographic Advantage
- Nearly two-thirds of India’s population is below 35 years.
- Young Indians drive growth through consumption, entrepreneurship, and aspirations.
- GST 2.0 aligns fiscal reforms with the needs of this demographic group.
Impact on Household Spending
- Private consumption forms over 60% of India’s GDP — higher than in many other major economies.
- Lower taxes on essentials increase disposable income.
- Small savings across millions of families create a multiplier effect on demand.
- Helps households balance EMIs, health care, and education costs.
Insurance Exemption: A Key Reform
- Health and life insurance premiums are now GST-free.
- Earlier, cost was a barrier to insurance uptake in India.
- Exemption makes insurance affordable, encouraging financial protection and planning.
- Leads to greater insurance penetration, stronger household security, and reduced vulnerability to shocks.
Benefits for MSMEs and Young Entrepreneurs
- MSMEs employ 110+ million people and contribute significantly to GDP.
- GST 2.0 reduces compliance burden and simplifies tax procedures.
- Formalisation encourages: Easier access to credit. Stronger integration in supply chains. Confidence for young entrepreneurs to scale businesses.
Importance of Predictability and Trust
- A simplified two-tier GST structure ensures transparency and stability.
- Predictability in taxes helps young professionals plan finances.
- Builds trust between citizens and the tax system.
Way Forward
- GST 2.0 is more than a tax reform, it is a foundation for inclusive growth.
- By empowering households, boosting insurance, and supporting MSMEs, it makes India’s youth central to the growth story.
- Harnessing the demographic dividend requires such reforms to translate aspiration into opportunity.
CONSTITUTIONAL BASIS OF GST
- Inserted by 101st Constitutional Amendment Act, 2016.
- Articles added/modified:
- Article 246A → Special power to Union & States to make laws on GST.
- Article 269A → Levy and collection of GST on inter-state trade (IGST) by the Union, with sharing between Union & States.
- Article 279A → Creation of GST Council.
- Concurrent jurisdiction: Both Union and States can legislate on GST, except IGST where Union has exclusive power.
- Exclusions: Alcohol for human consumption kept outside GST. Petroleum products are temporarily excluded (can be brought in by GST Council decision).
GST Council – Composition
- Chairperson: Union Finance Minister.
- Members:
- Union Minister of State for Finance/Revenue.
- Finance/Taxation Ministers of all States and UTs with legislatures.
GST Council – Voting & Weightage
- Decision-making:
- Quorum requires at least 50% of members
- Each decision needs 75% majority of weighted votes of members present and voting.
- Weightage system:
- Union Government → 1/3rd of total votes.
- All States together → 2/3rd of total votes.
- This ensures that no single side (Centre or States) can decide unilaterally; both must agree for a decision to pass.
Conclusion:
GST 2.0 strengthens purchasing power, supports young entrepreneurs, and builds trust in governance. By making everyday life more affordable and predictable, it channels India’s youth potential into long-term, consumption-driven growth.
THE MAKING OF AN ECOLOGICAL DISASTER IN GREAT NICOBAR
TOPIC: (GS3) ENVIRONMENT: THE HINDU
The Great Nicobar mega infrastructure project has raised serious concerns over environmental harm, displacement of native tribes, and risks in an earthquake-prone region.
About the Project
- A multi-component development plan including a port, township, airport, and power plant.
- Located in Great Nicobar Island, which is home to unique biodiversity and two indigenous tribes. Project cost estimated at ₹72,000 crore.
Threats to Indigenous Communities
- Nicobarese Tribe: Their ancestral villages fall in the project zone. Already displaced during the 2004 tsunami, the project will permanently prevent their return.
- Shompen Tribe (PVTG): The Shompen Policy mandates protection of their welfare and lands. A large portion of their reserve has been denotified. Forest destruction and population influx may endanger their way of life.
Violation of Safeguards
- National Commission for Scheduled Tribes (NCST) not consulted, violating Article 338-A.
- The Tribal Council’s consent was taken under pressure and later revoked.
- Social Impact Assessment (SIA) ignored tribal concerns.
- Forest Rights Act, 2006 provisions were bypassed.
Ecological Concerns
- Massive Deforestation: Government estimates: cutting of 8.5 lakh trees. Independent estimates: between 32–58 lakh trees may be felled.
- Flawed Compensatory Afforestation: Planned in Haryana, far from Nicobar’s ecosystem. A quarter of the land earmarked was auctioned for mining. Cannot replace old-growth, biodiversity-rich forests.
- Coastal and Marine Risks: Part of the port site falls under CRZ 1A (protected turtle nesting and coral reef zone). National Green Tribunal flagged concerns, but a high-powered committee reclassified the zone.
Biodiversity and Wildlife Impact
- Nicobar long-tailed macaque and sea turtles face severe habitat disruption.
- Surveys on turtle nesting done in the off-season, making data unreliable.
- Dugong population assessment used drones unsuitable for deeper waters.
- Concerns raised by experts were disregarded.
Natural Disaster Vulnerability
- Earthquake-prone zone with high seismic risk.
- The 2004 tsunami caused land subsidence of 15 feet.
- A recent 6.2 magnitude earthquake (July 2025) shows ongoing risks.
- Building massive infrastructure here endangers people, investment, and ecology.
Way Forward
- Ensure transparent consultations with tribal councils and NCST.
- Respect legal safeguards under FRA and SIA processes.
- Rethink large-scale construction in fragile, disaster-prone zones.
- Prioritise eco-sensitive and community-friendly development models.
Conclusion:
The Great Nicobar project, while presented as a development initiative, threatens to displace vulnerable tribes, destroy biodiversity, and expose the region to natural disaster risks. True progress must balance infrastructure with ecological and social justice.
A COMPLEX TURN IN INDIA’S FDI STORY
TOPIC: (GS3) ECONOMY: THE HINDU
India’s foreign investment inflows have increased, but growing disinvestments and rising outward investments by Indian firms highlight concerns about the strength of the domestic investment climate.
What is FDI?
- Foreign Direct Investment (FDI): It is when an overseas investor invests in India with the intention of gaining a long-term business interest and management control.
- Example: A foreign company setting up a factory, acquiring a stake in an Indian firm, or building infrastructure projects.
Classification of FDI in India
- Equity Capital – Direct investment in shares of Indian companies.
- Reinvested Earnings – Profits earned by foreign companies in India that are reinvested instead of being taken back.
- Other Capital – Loans, debt instruments, and intra-company transfers between foreign investors and their Indian businesses.
What is FPI?
- Foreign Portfolio Investment (FPI): It refers to overseas investors buying financial assets like shares, bonds, or mutual funds in India for short-term gains.
- Example: Foreign investors purchasing shares in the Indian stock market without seeking management control.
Importance of FDI in India
- FDI has been central to India’s growth since the 1991 reforms, supporting: Modernisation of industries. Technological upgradation. Better integration with global markets.
- E-commerce, IT hardware and software sectors benefited significantly from foreign capital.
Current Trends in FDI
- Gross inflows reached $81 billion in FY 2024-25, a 13.7% rise.
- Between 2011–2021, inflows grew steadily, peaking in FY 2021-22.
- Post-COVID recovery in inflows is slow (0.3% annual growth) compared to sharp growth in outflows (18.9% annually).
Divergence between Inflows and Outflows
- Total inflows (post-pandemic period): $308.5 billion.
- Withdrawals/repatriations: $153.9 billion.
- Net inflows (after accounting for outflows and loan repayments) fell sharply to just $0.4 billion in FY 2024-25.
- Disinvestments rose 51% in FY 2023-24 to $44.4 billion and further to $51.4 billion in FY 2024-25.
Sectoral Shift
- Manufacturing sector, once a major FDI destination, now attracts only 12% of inflows.
- Investments are moving towards services, financial markets, hospitality, and energy distribution, which have limited multiplier effects on job creation and industrial growth.
Rising Outward FDI by Indian Firms
- Outflows increased from $13 billion in FY 2011-12 to $29.2 billion in FY 2024-25.
- Regulatory hurdles and policy uncertainty. Infrastructure bottlenecks. Better opportunities in developed economies (tax benefits, stability, resources).
- This weakens domestic job creation, innovation, and industrial expansion.
Structural Concerns
- Dependence on tax-haven routes like Singapore and Mauritius suggests tax-driven inflows rather than genuine productive investments.
- Traditional FDI contributors such as the U.S., U.K., and Germany have reduced their engagement.
- RBI has cautioned that declining net inflows affect external stability, balance of payments, and monetary policy flexibility.
Way Forward
- Focus on quality and durability of investments, not just gross figures.
- Simplify regulatory processes and ensure policy predictability.
- Upgrade infrastructure and strengthen institutional trust.
- Promote human capital and skills to attract high-value sectors (advanced manufacturing, clean energy, technology).
- Encourage long-term, strategic capital aligned with national priorities.
Conclusion:
While India continues to attract large inflows, rising disinvestments and outward FDI point to deeper structural challenges. Sustainable growth requires long-term, stable, and productive investments that strengthen domestic capabilities.
RECUSALS BY JUDGES
TOPIC: (GS2) INDIAN POLITY: THE HINDU
A Supreme Court judge recently stepped aside from hearing a bail plea after several adjournments, without explaining the reason. This has revived debates about the absence of formal rules on judicial recusals in India.
What is Recusal?
- Recusal means when a judge withdraws from hearing a case to avoid any perception of bias or conflict of interest.
- Aim: To ensure judicial independence and impartiality. To strengthen public faith in the fairness of justice.
- Based on the principle: “Justice must not only be done but must also be seen to be done.”
Position in Indian Law
- No formal law or written rules on recusals exist in India.
- Judges can step aside voluntarily, without giving reasons.
- Two types:
- Self-recusal: Judge himself withdraws.
- Requested recusal: A party raises doubt of bias and seeks judge’s withdrawal.
- The final choice rests with the judge; no party can force recusal.
- Once a judge recuses, the Chief Justice reassigns the case to another Bench.
Key Judicial Pronouncements
- Ranjit Thakur v. Union of India (1987): Even a “reasonable fear of bias” is enough for withdrawal.
- State of West Bengal v. Shivananda Pathak (1998): Presence of bias makes justice meaningless.
- SC Advocates-on-Record Association v. Union of India (2015): If there is financial interest, no need to check for further bias; recusal is automatic.
International Practices
- United States: Law (Title 28, U.S. Code) lists grounds like financial interest, prior involvement as lawyer/witness, or close relation to a party.
- United Kingdom: Through judgments, the “real danger test” was adopted in R v. Gough case — withdrawal is required when concrete evidence shows real risk of bias.
Issues with Current System in India
- No codified rules → judges withdraw without explanation.
- Risk of misuse → lawyers may push for recusals to get a favorable bench or delay proceedings.
- Public suspicion → lack of reasons can create doubts about hidden pressures.
- Case delays → sudden withdrawals after many hearings waste judicial time and hurt litigants.
Recommendations
- Frame clear guidelines on when recusal is needed.
- Judges should state brief reasons to enhance transparency.
- Uniform standards such as financial conflict, family ties, prior association, or political influence.
- Committee of judges and lawyers to draft balanced rules.
Conclusion
Recusal is crucial to maintain fairness and credibility of the judiciary. But in India, the absence of codified norms and unexplained recusals weaken its effectiveness. A transparent framework balancing independence with accountability is the way forward.
EXEMPTIONS FOR MINERAL EXPLORATION DRILLING ON FOREST LAND
TOPIC: (GS3) ENVIRONMENT: THE HINDU
The Forest Advisory Committee (FAC) of the Union Environment Ministry has approved broader exemptions for mineral and coal exploration in forest regions. The move aims to boost India’s mineral security but has raised concerns about ecological impacts and rights of local forest-dwelling communities.
Background
- The Forest Conservation Act, 1980 was amended in 2023 to exempt exploratory drilling from seeking prior clearance.
- The latest decision expands these relaxations, considering that many mineral-rich deposits fall inside forest zones.
- It is linked to India’s push for energy security, infrastructure growth, and transition to clean technologies.
Key Policy Provisions
- Borehole Limit: Permission for up to 62–80 boreholes (6-inch diameter) per 10 sq km, depending on mineral type.
- Earlier Norms: Only 25 boreholes per 10 sq km were allowed, with felling of up to 100 trees.
- Definition: Boreholes are narrow shafts drilled to identify mineral or energy deposits.
Environmental Safeguards
- Drilling only between 9 a.m.–5:30 p.m., keeping in mind wildlife movement.
- Sites must be restored after exploration; boreholes to be cement-sealed.
- No-drilling zones include: Breeding or nesting habitats. Riparian zones and water sources. Sacred groves or culturally significant forest sites.
Objectives and Rationale
- Critical minerals push: Forests hold resources like lithium, cobalt, rare earths vital for defence, electronics, and renewable energy.
- Ease of Doing Business: Minimises repeated central clearances for short-term surveys.
- Attracting investments: Encourages private sector participation in exploration.
- Economic growth: Minerals support construction, manufacturing, defence, and green transition industries.
Concerns Raised
- Wildlife disturbance: Drilling vibrations and noise disrupt animal movement.
- Ecological risks: Pollution of streams by oil, debris, or grease.
- Compensation gaps: Afforestation cannot replace biodiversity loss or old-growth forest.
- Community rights bypassed: Forest Rights Act, 2006 ensures tribal consent, but “exploration” as forest activity may weaken this safeguard.
- Weaker oversight: Earlier, such projects required central scrutiny under FCA, which is now diluted.
Way Forward
- Enforce strict site restoration and independent monitoring (via satellites, third-party audits).
- Adopt modern technologies like drones, remote sensing, and geophysical mapping to cut down excessive drilling.
- Prepare no-go biodiversity maps for ecologically fragile zones.
- Strengthen compensatory measures by valuing ecosystem services and ensuring long-term ecological monitoring.
Conclusion
The new exemptions aim to accelerate mineral exploration for economic and strategic needs, but they risk undermining ecological balance and tribal rights. A balanced framework combining resource security, community participation, and strong environmental safeguards is essential to ensure sustainable growth.
UNDERUTILIZED RENEWABLE ENERGY POTENTIAL IN THE HINDU KUSH HIMALAYA (HKH)
TOPIC: (GS3) ENVIRONMENT: THE HINDU
A new report by the International Centre for Integrated Mountain Development (ICIMOD), released during the Asia-Pacific Clean Energy Week in Bangkok, has underlined the huge but untapped renewable energy resources in the Hindu Kush Himalayan region and the risks that climate change poses to this sector.
About the Hindu Kush Himalaya (HKH)
- Stretches for nearly 3,500 km across Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal, and Pakistan.
- Source of 10 major Asian river systems, including the Ganga, Brahmaputra, Indus, Mekong, and Yangtse.
- Supports nearly 240 million people directly through water, ecosystem services, and livelihoods.
Key Findings of the Report
- Low Clean Energy Share: Renewable energy accounts for only a small portion of the region’s total primary energy use.
- Hydropower Potential: Out of the vast hydropower capacity, less than half is currently being used. A large share lies in rivers shared between countries.
- Solar and Wind Energy: Potential exceeds 3 terawatts, but current national targets fall short of this capacity.
- Country-Wise Dependence: Bhutan and Nepal generate all their electricity from renewable sources. Other countries like Bangladesh, India, Pakistan, China, and Myanmar continue to depend heavily on fossil fuels.
- Traditional Fuels: Biofuels and waste remain major rural energy sources in Nepal, Bhutan, Pakistan, and Myanmar, but they worsen air pollution and health problems.
Climate Risks to Energy
- Hydropower projects face increasing risks from climate change, such as fluctuating water flows, extreme weather, and melting glaciers.
- Many projects are threatened by glacial lake outburst floods (GLOFs) and related disasters.
- Disaster risk reduction and resilience planning are crucial for sustainable energy development.
Barriers to Renewable Energy Growth
- High cost of renewable projects and limited financing.
- Low private investment and insufficient technical expertise.
- Land acquisition challenges and lack of modern regulations.
- Weak research and development in clean energy technologies.
Recommendations
- Enhance regional cooperation in energy planning and investments.
- Use platforms like SAARC Energy Centre and BIMSTEC for joint initiatives.
- Strengthen south-south technology sharing and attract international financial support.
- Encourage India and China to take a leadership role in green energy transition, linking it to poverty reduction, economic growth, and emission reduction goals.
- Ensure social and environmental safeguards for local communities.
Conclusion
The HKH region holds enormous renewable energy potential, but poor utilization, financial gaps, and climate risks slow progress. A cooperative, climate-resilient, and inclusive approach is vital to harness these resources for sustainable development.
MISSION MAUSAM
TOPIC: (GS1) GEOGRAPHY: THE HINDU
The India Meteorological Department (IMD) has announced the installation of new radars in Jammu & Kashmir under Mission Mausam to deliver more accurate and district-specific weather forecasts. This step highlights India’s growing focus on climate resilience and early warning systems.
About Mission Mausam
- Launched in 2024 by the Ministry of Earth Sciences (MoES).
- Implemented jointly by IMD, National Centre for Medium-Range Weather Forecasting (NCMRWF), and Indian Institute of Tropical Meteorology (IITM).
- Aims to make India a “Weather-ready and Climate-smart nation.”
Objectives
- Upgrade forecasting ability for short-term, medium-term, and seasonal weather events.
- Develop high-resolution models for better prediction of monsoon patterns.
- Expand and modernize observation systems with radars, satellites, and automated weather stations.
- Provide sector-specific advisories for agriculture, energy, water resources, health, and disaster management.
- Encourage collaborations in climate research at national and global levels.
Significance
- Enhances India’s preparedness against extreme weather events and disasters.
- Helps farmers, policymakers, and industries make timely decisions.
- Protects infrastructure and supports sustainable development.
- Strengthens India’s role in global climate science and forecasting.
Conclusion
Mission Mausam is a major step towards improving India’s weather forecasting and climate services, ensuring timely information to safeguard lives, livelihoods, and the economy.