MAJOR SETBACK FOR TRUMP AS U.S. COURT BLOCKS TARIFFS
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
The U.S. Court of International Trade recently blocked most of President Donald Trump’s broad tariffs, stating he had exceeded his authority under the International Emergency Economic Powers Act (IEEPA).
Background:
- President Trump had imposed widespread tariffs on imported goods, citing a “national emergency” due to trade deficits and drug influx.
- These tariffs affected almost all trade partners, including China, the EU, Canada, and Mexico.
Court Ruling:
- The three-judge panel declared that the IEEPA does not give the President unlimited authority to impose tariffs globally.
- The court stated that interpreting IEEPA to allow unrestricted tariffs would be unconstitutional.
- As a result, the court invalidated most of the tariffs introduced since Trump took office.
Reasons for Court Decision:
- The IEEPA was never intended to grant unrestricted tariff power to the President.
- The judges emphasized that Congress holds the constitutional authority to impose tariffs, not the executive branch.
- The ruling upheld the principle of separation of powers and checked executive overreach.
White House Reaction:
- The administration called the ruling “blatantly wrong” and filed an appeal.
- Officials argued that the judges misused their authority and that it’s the President’s right to respond to national emergencies.
- The White House also stated that discussions were underway with foreign counterparts about the implications of the ruling.
Broader Implications:
- The ruling represents a major blow to Trump’s trade policy, which aimed to use tariffs as leverage in international negotiations.
- The decision effects trade talks with key partners like China and the EU.
- Markets reacted positively, with Asian stocks rising and European markets showing mixed responses.
- China, which faced steep tariffs, urged the U.S. to remove the levies following the court’s decision.
Legal and Trade Impact:
- Businesses and several state governments challenged the President’s authority, arguing that he bypassed Congress’s role in trade policy.
- The court’s ruling also highlighted concerns about balancing executive power with legislative oversight in trade matters.
- The judgment may influence future Presidents’ use of emergency powers for economic measures.
Conclusion:
The court’s ruling underscores the importance of checks and balances in trade policymaking. It highlights the constitutional limits on executive authority, especially concerning tariffs that affect international trade.
MOTHER TONGUE IN CBSE CLASSROOMS: CHALLENGES AND CONCERNS
TOPIC: (GS2) INDIAN POLITY: THE HINDU
Recently, CBSE issued guidelines promoting the use of the mother tongue or the dominant local language at the primary level, in line with the NEP 2020. This move has sparked debates among parents and educators regarding its practicality and impact on students’ aspirations in a globalized economy.
Parental Concerns about Language Choice
Many parents at school meetings prefer foreign languages like French, German, or Spanish over Hindi from Class X onwards.
- They believe foreign languages improve job prospects and help secure higher marks compared to Hindi.
- Parents view English and foreign languages as gateways to socioeconomic advancement.
Implementation Challenges
Diverse linguistic backgrounds in cities like Delhi complicate the choice of a “mother tongue.”
- Many children speak multiple dialects or languages at home.
Recruiting and training teachers for different languages is logistically difficult.
- Schools need extra resources and funds to cater to various language demands.
- CBSE’s mandate to map languages and train teachers by July 2025 poses a significant challenge.
Language and Knowledge Economy
English dominates knowledge production in India, from primary education to higher research.
- Technical and scientific fields largely operate in English.
- Past attempts, such as engineering education in Hindi, faced setbacks due to reliance on English terms.
National Translation Mission aims to address translation needs, but translated textbooks still contain English words.
- Example: CBSE textbooks in Telugu and Gujarati often use English words like “project,” “pen,” and “notebook,” reducing the impact of vernacular education.
Complexities in Language Identity
- Families with parents from different regions or with migrant backgrounds face challenges identifying a single mother tongue.
- Some languages lack a formal script or are purely oral.
- Students may struggle to adapt when schools impose one language.
Socioeconomic Aspirations
For many students, English proficiency is crucial for upward mobility and accessing global opportunities.
- English-medium schools are growing in popularity, even in rural areas.
- AI and digital literacy trends further strengthen the preference for English education.
Conclusion
CBSE’s well-intentioned push for mother tongue education needs careful planning and sensitivity to student aspirations. Without addressing infrastructure, teacher training, and diverse language backgrounds, this initiative risks widening existing educational gaps.
KANNADA AND TAMIL: THE HISTORICAL CONNECTION
TOPIC: (GS1) HISTORY: THE HINDU
Recently, actor Kamal Haasan claimed that Kannada “was born out of Tamil,” sparking debates about linguistic heritage in South India. Experts have clarified that Kannada and Tamil share a common ancestry but one did not originate from the other.
Background
- The Dravidian language family includes major South Indian languages like Tamil, Kannada, Telugu, and Malayalam.
- These languages evolved from a common ancient language called Proto-South Dravidian.
- Modern linguistic research suggests that Kannada and Tamil branched off separately from a shared parent language.
DRAVIDIAN LANGUAGES:
- Origins & Family: Dravidian languages form a major language family primarily spoken in southern India and parts of eastern and central India, with Tamil being the oldest recorded.
- Key Languages: The four major Dravidian languages are Tamil, Telugu, Kannada, and Malayalam, each with its own rich literary tradition and regional prominence.
- Cultural Importance: These languages are deeply tied to the culture, literature, and identity of the Dravidian-speaking populations, influencing arts, music, and social structures.
Historical Evidence
- The earliest literature in Tamil (like Sangam poetry) dates back to around 300 BCE to 300 CE.
- Kannada literature’s earliest works are from around the 6th century CE.
- However, this difference in recorded literature does not mean Tamil is “older” as a language than Kannada—just that Tamil has older literary records.
Linguistic Development
- Linguists call the ancestral language of Tamil and Kannada Proto-Tamil-Kannada.
- Both languages split from this common root and developed independently over time.
- It’s incorrect to say Kannada “came from” Tamil or vice versa—both have separate but related evolutions.
Cultural and Linguistic Identity
- Medieval texts sometimes grouped languages like Tamil, Malayalam, and Kannada under “Dravidian,” but acknowledged their differences.
- Some records from the 12th century refer to rulers from different regions as Tamil or non-Tamil, showing complex linguistic and ethnic identities.
- Malayalam, for instance, emerged from Old Tamil but was still called “Tamil” in some medieval texts.
Modern Misunderstandings
- Kamal Haasan’s statement highlights ongoing confusion about the relationship between Dravidian languages.
- While Tamil might have retained some ancient features, both languages have changed over time.
- For example, the word for “ear” is cevi in Tamil and kivi in Kannada—the latter preserving the older Dravidian pronunciation.
Unresolved Questions
- The origin of languages like Brahui (spoken in Pakistan) remains debated—whether it’s a recent arrival or an ancient Dravidian remnant.
- The deeper origins of Proto-Dravidian itself, and any possible links to other ancient languages, remain areas for research.
Conclusion
The Kannada-Tamil relationship reflects the rich and complex linguistic heritage of South India. Instead of competing claims, it’s better to appreciate the shared cultural and linguistic legacy these languages represent.
ANDHRA PRADESH’S DEMAND FOR SPECIAL FISCAL SUPPORT
TOPIC: (GS3) ECONOMY: THE HINDU
Duvvuri Subbarao, former RBI Governor, argues for special financial assistance to Andhra Pradesh due to its structural fiscal challenges. Andhra Pradesh is facing severe financial stress, and the need for a special fiscal package to compensate for its economic loss after bifurcation.
Present situation
- Andhra Pradesh was bifurcated in 2014 to create Telangana.
- Hyderabad, the primary tax generator (around 52% of ap revenue), became part of Telangana, significantly impacting Andhra Pradesh’s revenues.
- An assurance was given by the then Prime Minister in Parliament to grant Andhra Pradesh special category status, but the Reorganisation Act didn’t provide for it.
The Challenge of Special Category Status
- After bifurcation, Andhra Pradesh sought special category status to offset the loss of revenue.
- The NDA government, citing the 14th Finance Commission’s recommendation, declined this status, saying the special category scheme was discontinued.
- Current Chief Minister N. Chandrababu Naidu faces fiscal difficulties worsened by populist spending by the previous government and his own campaign promises.
Why Special Category Status Alone Isn’t Enough
- Special category status today is less beneficial than before, offering only external loans on slightly easier terms rather than substantial grants.
- Hence, granting Andhra Pradesh just this status may not adequately address its fiscal distress.
A Better Solution: Special Fiscal Package
- A more meaningful solution is a tailor-made financial package that directly compensates for Andhra Pradesh’s fiscal loss.
- Precedents exist, such as:
- Odisha’s Koraput-Balangir-Kalahandi special plan.
- Bundelkhand package for Madhya Pradesh and Uttar Pradesh.
- Bihar’s pre-election package in 2015.
- However, politically driven, one-off packages can undermine the federal structure.
The Role of the Finance Commission
- An alternative is for the Finance Commission to recommend a special package based on objective criteria.
- Being a constitutional, apolitical body, the Finance Commission’s recommendation would carry more weight and credibility.
Fiscal Capacity Loss: A Justification
- Historical data shows that post-bifurcation, residual states often lose significant fiscal capacity: Bihar and Andhra Pradesh were hit hardest compared to other states like Uttar Pradesh and Madhya Pradesh.
- A benchmark could be set: if a state’s fiscal capacity falls by more than 10% due to division, it should receive compensatory aid over a period.
- Both Bihar and Andhra Pradesh qualify under this criterion.
Special Package
A Special Package refers to a set of specific measures or benefits announced by the government (or any authority) to address particular issues, challenges, or needs in a certain sector, region, or group of people.
Examples:
- Financial relief to farmers during droughts.
- Special package for industries to boost production and employment.
- Assistance to rebuild after natural disasters.
Conclusion
The Finance Commission should ensure states like Andhra Pradesh are not left to manage alone. It should develop a transparent, formula-based mechanism to support states facing structural fiscal loss due to bifurcation, ensuring India’s fiscal federalism remains strong and equitable.
OPERATION SINDOOR AND AUTONOMOUS WARFARE
TOPIC: (GS3) DEFENCE: THE HINDU
Recently, India and Pakistan engaged in a four-day conflict (Operation Sindoor) where autonomous drones and unmanned aerial systems (UAS) were heavily used for the first time in South Asia.
Use of Drones in the Conflict
- Both countries used drones extensively for real-time intelligence gathering, electronic warfare, and targeted strikes.
- India deployed Israeli Heron MK-II and indigenous TAPAS-BH-201/ Rustom-II UAVs for ISR (Intelligence, Surveillance, Reconnaissance) missions.
- Drones helped identify enemy positions like radar sites, missile batteries, and troop clusters.
India’s Drone Strategy
- India used GPS-guided loitering munitions (Nagastra-1) and Harop drones to destroy enemy radar systems.
- Swarm drones, developed by DRDO, were used to confuse Pakistan’s radar and air defence.
- Decoy drones were deployed first to exhaust enemy air defences.
- Follow-up attacks with precision loitering munitions and armed UAVs struck priority targets.
- Quadcopters relayed live data to frontline troops via the Integrated Battle Management System.
Drone
- A drone is a broad term used to describe any unmanned vehicle that can operate in the air, on the ground, on water, or underwater.
- Drones can be remotely controlled or autonomous and may be used for various civilian and military purposes.
- The term is often used informally to refer to aerial vehicles but can technically include all types of unmanned systems.
Unmanned Aerial Vehicle (UAV)
- A UAV is a specific type of drone that operates in the air without a human pilot on board.
- UAVs can be remotely controlled from the ground or fly autonomously using onboard computers and sensors.
- UAVs are often used for surveillance, reconnaissance, combat, and civilian applications like photography, agriculture, and delivery.
Key Difference:
- Drone is a generic term for all unmanned systems.
- UAV is a subcategory of drones that fly specifically in the air.
Pakistan’s Drone Response
- Pakistan launched its Operation Bunyan-um-Marsoos, using Shahpar-II, Bayraktar TB2, and Chinese-made drones.
- Pakistan’s loitering munitions targeted India’s radar stations and air bases but were mostly neutralised by India’s strong air defence.
- Key Indian cities like Jammu, Pathankot, Amritsar, Bikaner, and Bhuj were targeted but sustained little damage.
India’s Air Defence Network
- India’s Integrated Air Command and Control System (IACCS) linked radars, satellites, and fighter jets for quick detection and interception.
- The Akashteer system helped coordinate Army Air Defence units to engage drones rapidly.
- Older systems like the Pechora, OSA-AK, and Shilka guns were modernised to counter low-flying threats.
- Modern systems like SPYDER, Akash, Akash-NG, Barak-8, and S-400 provided layered defence against UAVs.
Counter-Drone Systems:
- SPYDER, Akash, and Barak-8: Integrated air defence systems capable of neutralizing drones.
- Directed Energy Weapons: Lasers and microwave-based systems to disable drones.
- Private Sector Involvement: Start-ups and defence industries are collaborating with DRDO and the armed forces to develop advanced drone technology.
Conclusion
Operation Sindoor revealed a new era of drone-centric, algorithm-driven conflict in South Asia. This highlights the importance of integrating technology and traditional defences in modern warfare.
SUPREME COURT JUDGES APPOINTMENT
TOPIC: (GS2) INDIAN POLITY: THE HINDU
Recently, the Centre appointed three new judges to the Supreme Court, filling all 34 sanctioned posts. This move follows recommendations by the Supreme Court Collegium.
New Appointments
The President of India, in consultation with the Chief Justice of India (CJI), appointed:
- Justice N.V. Anjaria — Chief Justice of the Karnataka High Court.
- Justice Vijay Bishnoi — Chief Justice of the Gauhati High Court.
- Justice Atul S. Chandurkar — Judge at the Bombay High Court.
These appointments complete the Supreme Court’s sanctioned strength of 34 judges.
Supreme Court Collegium’s Role
- The Supreme Court Collegium recommended the names of these judges three days before the Centre’s approval.
- The Collegium comprises the Chief Justice of India and four senior-most judges, who collectively recommend appointments and transfers.
Appointment Procedure and Constitutional Provisions
Constitutional Basis
- Article 124 of the Constitution deals with the appointment of Supreme Court judges.
- It states that the President appoints judges after consultation with the Chief Justice of India.
Procedure
- Recommendation: The Supreme Court Collegium recommends names for appointment.
- Presidential Appointment: The President, after consulting the CJI, formally appoints the judges.
- Oath of Office: The appointed judge takes an oath administered by the Chief Justice of India or the senior-most judge available.
Supreme Court Collegium System
The Supreme Court Collegium is a group of senior judges (headed by the Chief Justice of India and the four senior-most judges) responsible for recommending appointments and transfers of judges in the higher judiciary.
- It evolved through judicial interpretations rather than being explicitly stated in the Constitution.
First Judges Case (S.P. Gupta v. Union of India, 1981)
- The Supreme Court ruled that the executive, led by the President, had the primacy in appointing judges, with the CJI’s opinion being only consultative.
- The President could consider but was not bound by the CJI’s advice.
Second Judges Case (Supreme Court Advocates-on-Record Association v. Union of India, 1993)
- The Court overruled the First Judges Case, giving the judiciary primacy in judicial appointments through the Collegium system.
- The CJI’s opinion, formed in consultation with the two senior-most judges, would be binding on the President.
- The President was expected to accept the recommendation unless there were exceptional reasons.
Third Judges Case (1998, Presidential Reference)
- The President sought the Supreme Court’s opinion under Article 143 (advisory jurisdiction) on the Collegium’s functioning.
- The Court expanded the Collegium to include the CJI and the four senior-most judges to ensure broader consultation and collective decision-making.
- The President’s role remained to formally appoint judges based on the Collegium’s recommendation, maintaining the constitutional balance.
Conclusion
The appointment of the three judges completes the Supreme Court’s sanctioned strength, which is vital for timely delivery of justice and reducing the pendency of cases.
INITIAL PUBLIC OFFERING (IPO)
TOPIC: (GS3) ECONOMY: THE HINDU
OpenAI has indicated that it may consider launching an IPO in the future, depending on its readiness and market conditions. This move highlights the growing interest among private companies in exploring public fundraising avenues.
What is an IPO?
- An Initial Public Offering (IPO) is a process by which a privately held company, or even a government enterprise, raises funds by selling shares to the public for the first time.
- This step converts a private company into a publicly traded entity, enabling its shares to be bought and sold on a stock exchange.
Purpose of an IPO
- Companies choose to go public mainly to raise capital for business expansion, paying off debt, or funding new projects.
- An IPO also helps diversify and expand the shareholder base.
- Listing on the stock exchange improves transparency and requires regular disclosures, benefitting investors.
- It also provides an exit route for early investors or promoters.
Procedure to List an IPO in India
- Companies planning to launch an IPO must first prepare a detailed offer document that includes information about the company’s business, financials, promoters, and the purpose of raising funds.
- This offer document is submitted to the Securities and Exchange Board of India (SEBI), the market regulator, for approval.
- After SEBI’s clearance, the company can proceed with marketing and listing its shares on the stock exchange.
Eligibility Criteria for IPO
- The company must have net tangible assets of at least ₹3 crore in each of the previous three years.
- It must also have a net worth of ₹1 crore each year in the last three years.
- Additionally, it should have a minimum average pre-tax profit of ₹15 crore in at least three of the past five years.
How are IPO Prices Determined?
- The share price in an IPO is decided by the company (the issuer) in consultation with its merchant bankers.
- They calculate the overall valuation of the company based on assets, revenue, profits, and future projections.
- The total valuation is then divided by the number of shares available post-issue to set the price per share.
- SEBI does not decide or approve the IPO price.
Who Can Invest in an IPO?
- Anyone aged 18 or above can invest, provided they have a brokerage account.
- Investors are classified into:
- Qualified Institutional Buyers (QIBs): Includes mutual funds, banks, insurance companies, pension funds, and FPIs.
- Retail Investors: Individuals investing up to ₹2 lakh.
- High Net Worth Individuals: Individuals investing above ₹2 lakh.
Conclusion
An IPO is an important step for a private company to raise capital and expand its investor base, but it also brings increased regulatory requirements and transparency obligations.
MODIFIED INTEREST SUBVENTION SCHEME (MISS)
TOPIC: (GS3) ECONOMY: THE HINDU
Recently, the Union Cabinet extended the Interest Subvention component under the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26. This scheme ensures that farmers continue to receive short-term credit at affordable interest rates through Kisan Credit Cards (KCC).
About the Scheme
- The Modified Interest Subvention Scheme (MISS) is a Central Sector Scheme aimed at providing affordable short-term loans to farmers.
- It plays a key role in supporting agricultural credit and financial inclusion.
Features
- Under this scheme, farmers can avail of short-term crop loans of up to Rs. 3 lakh through Kisan Credit Cards (KCC) at a subsidized interest rate of 7% per annum.
- To make credit even more accessible, an interest subvention of 1.5% is given to the banks providing these loans.
- Farmers who repay their loans on time are eligible for a Prompt Repayment Incentive (PRI) of up to 3%, effectively reducing their interest rate to 4% per annum.
- For loans taken exclusively for animal husbandry and fisheries, the interest subvention is applicable up to Rs. 2 lakh.
Implementation and Monitoring
- The scheme is implemented by the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD).
- These institutions ensure that the interest subvention benefits reach farmers efficiently.
Institutional Support
- Public Sector Banks, Regional Rural Banks (RRBs), Cooperative Banks, and Private Sector Banks operating in rural and semi-urban areas are involved in distributing the subsidized loans.
- This ensures that a broad network of financial institutions is accessible to farmers across the country.
Benefits to Farmers
- The scheme helps farmers access affordable credit for their agricultural activities.
- It incentivizes timely repayment, thereby promoting financial discipline.
- The scheme also encourages livestock and fisheries activities, expanding the scope beyond crop loans.
Continuity and Future Outlook
- The Union Cabinet has not proposed any changes in the structure or other components of the scheme for the financial year 2025-26.
- This ensures continuity in the support provided to farmers under the scheme.
Conclusion
The Modified Interest Subvention Scheme remains a vital support system for farmers, making credit more affordable and accessible, thus strengthening the rural economy.