31 Dec 2022: UPSC Exam Comprehensive News Analysis

C. GS 3 Related

Category: ECONOMY

1. Most small savings plans to yield more in new quarter; PPF, Sukanya rates static

Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth and development

Prelims: Various small savings schemes

Mains: Government’s move to increase the interest rates on small savings schemes and its associated concerns

Context: The Union government has increased the interest rates on multiple small savings schemes.

Details:

• The government has raised the interest rates by 20 to 110 basis points for the January-to-March quarter FY 2022-23 for eight out of the 12 small savings schemes.
  • 100 basis points are equal to one percentage point.
• Small savings schemes are savings instruments managed by the government to encourage its citizens to save regularly.
• This is the second successive quarter that the Union government has made increases in the interest rates of small savings schemes.
• The returns on time deposits for one, two and three years, have been accorded the highest increase of 110 basis points which has increased the returns to 6.6%, 6.8% and 6.9%, respectively.
• The interest rates on small savings schemes are to be reviewed every quarter by the Union Government. 
• The formula to fix the interest rates of small savings schemes was provided by the Shyamala Gopinath Committee.
  • The committee had recommended that the interest rates of different schemes must be about 25 to 100 basis points more than that of the yields of the government bonds of similar maturity.
• For the ongoing quarter (October to December), the interest rates were increased for the first time since January 2019 by a marginal of 10 to 30 basis points for five out of the 12 small savings schemes. 

Read more about – Various Small Savings Instruments

Key concerns

• As per the calculation of the Reserve Bank of India (RBI), the current rate of interest on various small savings was found to be about 44 to 77 basis points less than their formula-implied rates for nine out of the 12 schemes in the ongoing quarter (October to December). 
  • Example: The return on Public Provident Fund (PPF) according to the formula, should have been 7.72% instead, the existing rate for October to December quarter was 7.1%.
    • Similarly, the returns on the Sukanya Samriddhi account should have been 8.22% instead of the existing rate of 7.6%.
• Economists feel that the increases made in interest rates were less than expected considering the rising interest rates and increasing inflation.
  • The returns on schemes such as Kisan Vikas Patra (KVP) and the National Savings Certificate were raised by only 20 bps each.
• Further, the interest rates on the Public Provident Fund (PPF), which is one of the most popular schemes, were kept unchanged at 7.1% for the 11th quarter in a row. 
  • The interest rate on the Sukanya Samriddhi Account scheme was also kept unchanged at 7.6% which has been the same since April 2020.

Nut graf: The government has hiked interest rates on various small savings schemes for the January-to-March quarter of FY 2023. However, economists feel that the size of the increase in interest rates is smaller than what was anticipated considering the high inflation in recent times.

E. Editorials

Category: ENVIRONMENT

1. The other side of the sanctuary

Syllabus: Conservation of Environment.

Mains: Eco-Sensitive Zones and associated concerns.

Prelims: Eco-Sensitive Zone.

Context: The Supreme Court’s direction to have a mandatory Eco-sensitive Zone.

Details:

• The Supreme Court (SC) has directed that every protected forest, national park, and wildlife sanctuary in India should have a compulsory eco-sensitive zone (ESZ) of 1 km beginning from their demarcated boundaries.
• This has raised fears for farmers living on the fringes of protected areas. A large crowd from Muthukad (near Kozhikode, Kerala) has raised slogans against the government as a mark of protest.
• These protests are similar to the protest held against the recommendations of the Western Ghats Ecology Expert Panel (WGEEP) led by Madhav Gadgil to conserve the fragile ecology of the mountain chain (between 2012 and 2014).
• There are apprehensions that the regulations accompanying the ESZ delineation would make farming impossible and consequently result in eviction from their holdings.

Also read: Gadgil Report & Kasturirangan Report on Western Ghats

Similarity to Protests against WGEEP:

• The major players in these protests are the same – the Catholic Church and the settler farmers. Moreover, the Kerala Independent Farmers Association, a pressure group established in 2020, is also at the forefront of mobilizing public opinion.
• During the 2012-14 protests, the Left Front, the Communist Party of India (Marxist), the Communist Party of India, and a few other constituents, supported the settlers and the High Range Samrakshana Samithi and reaped political dividends. This time, the United Democratic Front (UDF) is supporting the agitation.
• Idukki district of Kerala, which protested against Gadgil’s report, is also vociferous against ESZ demarcation. 

Background Details:

• Before the Supreme Court order, the government of Kerala has already prepared a buffer zone regime for its 24 protected areas, including 18 wildlife sanctuaries and six national parks. 
• Due to public resistance, the Kerala government submitted proposals to the Union Ministry for Environment, Forest and Climate Change (MoEFCC) delineating the buffer as zero in the case of the protected areas with human settlements in the vicinity beginning in 2020. 
• However, Supreme Court came out with an order on June 3, 2022. The court directed that the Principal Chief Conservator of Forests of each State and Union Territory (UTs) should formulate a list of subsisting structures and other relevant information and furnish a report within three months. 
• It was also indicated that the States/UTs could take the help of any governmental agency for satellite imaging using drones. The Kerala government involved the Kerala State Remote Sensing and Environment Centre (KSRSEC) in this work. 
• It was further warned in the case of failure to submit a proposal, an area of 10 km would be considered the buffer zone. 
• The KSRSEC report didn’t find traction with the general public. The major findings of the report are: 
  • It was reported that nearly 115 villages in Kerala would come under the buffer zone of the protected areas of the State. 
  • Moreover, a total area of 1,588.709 sq. km would come under ESZs. 
  • It was found during the assessment that 83 tribal settlements were located within the ESZs.
• As a result, various complaints were filed alleging the report to be faulty.
• There were also allegations that the main aim behind the survey was to relocate people from the forest fringes and thus expand forest cover in the State.
• However, surveyors say that the scientific study was carried out as per the prescribed guidelines of the SC. The detailed work was done by using the cadastral maps and the present land use/land cover pattern of the boundary-sharing villages from satellite data.
• The state government was compelled to appoint an expert committee chaired by Thottathil Radhakrishnan, for field verification of the report.
• It should also be noted that the price of land surged after the release of the aerial survey report.

Present scenario in the State:

• The protests have not fully subsided.
• The state government is trying to cool the public sentiment. Moreover, Chief Minister Pinarayi Vijayan has distanced himself from the report.
• It is further assured that the government will protect the interests of the farmers and several measures have been introduced in this regard. For instance, setting up help desks in the 115 panchayats of the State for physical verification of the holdings.
• Kerala has also moved the Central Empowered Committee (CEC) and MoEFCC.
• It is further suggested during the hearing of the case on January 11, Kerala would reiterate its original proposal to exclude human habitations and settlements from the ambit of the buffer zone.

Also read: Environment Protection Act, 1986

Nut Graf: The orders of the Supreme Court regarding the Eco-Sensitive Zones have once again flared the issue of dealing with the fragile ecology of the state and the livelihood interests of its residents. It should also be noted that any attempt to alter or fine-tune the ecological regulatory mechanism has the potential to trigger protests and thus should be dealt with cautiously.

Category: SOCIAL JUSTICE

1. A strong case exists for marriage equality

Syllabus: Welfare schemes for the vulnerable section of the population.

Mains: Homosexuality and issues related to the marriage of same-sex couples.

Context: A statement by a Member of Parliament against same-sex marriage.

Details:

• It was stated by a Member of Parliament (MP) that same-sex marriages are against the cultural ethos of India. This has once again flared up the debate on marriage equality. 
• A petition for marriage rights of same-sex couples under the ambit of the Special Marriage Act, 1954 is already pending before the apex court of the country. 
• One of the major concerns in the case is the legitimacy of the institution. This means whether courts should interfere in marriage rights or leave it to the Parliament. 
• However, the Court can urge to intervene on the grounds of the previously decriminalized homosexuality aspect on the basis of the ‘right to equality’ and not merely the ‘right to privacy’. 
• An aspect of the LGBTQ community’s legal battle has been whether the law criminalizing sexual conduct has been violative of the right to privacy or the right to equality. 
  • In the right to privacy aspect, an individual’s sexual orientation and choice of a sexual partner were held intrinsic to privacy and personal liberty. 
  • And, in the right to equality context, equal treatment of same-sex couples with those of heterosexual couples was considered dominant. 
  • As per the lawyer Jonathan Berger, this makes a distinction as a privacy analysis requires a complete ‘hands-off’ approach from the state where it should not interfere. On the other hand, an equality analysis mandates the state to take positive steps to ensure equal treatment in all spheres of life. 
• It is argued that once equal treatment with heterosexual persons is established, it would be easier to seek other associated rights like equalizing the age of consent, prohibiting employment discrimination, rights in marriage, adoption, etc.

Also read: Section 377 of the Indian Penal Code (IPC)

Comparative legal procedures:

• EUROPE:
  • The European Court of Human Rights in the Dudgeon vs UK (1981) case struck down the offence of buggery in Northern Ireland as violative of Article 8 of the European Convention on Human Rights as it unevenly hampered personal and family life. The court adopted a privacy approach in this case.
  • This thus made it difficult for a same-sex couple (in Oliari vs Italy) to seek marriage rights in Italy. It was reasoned that the state is not obliged to grant marriage equality. 
  • Furthermore, many European countries had not yet granted marriage rights.

• SOUTH AFRICA:
  • The lawyers and activists in South Africa resorted to rights based on ‘equality’. This ensured that they can win successive cases like constitutional protection of ‘sexual orientation’ and judicial recognition of marriage, adoption, etc.
  • In National Coalition for LGBTQ (1998), Justice Ackermann compared privacy and equality and suggested that the latter enabled greater protection for homosexual persons. 
  • In Fourie (2005), it was observed that the exclusion in marriage was antithetical to equality and dignity. Moreover permitting this exclusion would mean that the marriage of a homosexual couple was inferior. This was constitutionally impermissible.

• UNITED STATES:

• • The U.S. decriminalized same-sex relations (Lawrence vs Texas 2003) and granted marriage equality (Obergefell 2015).
  • Both cases were considered under the due process clause of the Fourteenth Amendment of its Constitution. This prohibits the state from taking away personal liberties without substantive and procedural fairness. 
  • The U.S. thus focussed on personal liberty.

Decriminalization of Homosexuality:

• In the Navtej Singh case (2018), India employed the South African approach. It ruled on the basis that an unreasonable classification was created for same-sex persons under Article 14, apart from being violative of bodily autonomy under Article 21.
•  It was observed that any classification that perpetuated stereotypes was violative of Article 15.
• Even in NALSA’s judgment (2014), the importance of sequential rights arising from ‘gender identity’ (employment, health care, education, equal civil and citizenship rights) was also acknowledged.

Way Ahead:

• The foundation of equal treatment would pave the way for marriage equality in India. It should not be left to the vagaries of the legislature.
• It would also be significant in the Indian context where marriage holds a special cultural and religious value. It should be noted that denial might reinforce the stigma faced by same-sex couples.
• It would also ensure a dignified living thus overcoming prejudices.

Related Link: Sansad TV Perspective: Legalising Same-Sex Marriage

Nut Graf: Different countries have adopted different approaches to dealing with same-sex relationships. Courts across the world have either based their decision on the Right to privacy or the Right to equality. It should be noted that the right-to-equality approach has the potential to solve other consequential issues like marriage, adoption, etc.

Category: HEALTH

1. Precipice of shame

Syllabus: Issues related to health.

Mains: Concerns of deaths related to pharmaceutical exports from India.

Context: Accusations from Uzbekistan and The Gambia about the deaths of children after consuming cough syrup exported from India.

Details:

• In December 2021, India’s pharmaceutical industry was praised for developing vaccines that inoculated billions against the coronavirus. As a result, India earned the moniker of the ‘pharmacy of the world’.
• However, in December 2022, two Indian drug manufacturers were accused by the two countries of producing toxic cough syrup that was associated with the deaths of children. The two incidents were:
  • Almost 66 children died in The Gambia which was highlighted by the World Health Organization (WHO).
  • In Uzbekistan, almost 18 died as reported by the Uzbek Health Ministry. 
• It should be noted that it is not yet conclusively established that consumption of the syrup has led to deaths. 
• It was observed that the batches were spiked with ethylene glycol or diethylene glycol. These are industrial chemicals that should not be mixed with cough syrup. 
• The Union government of India has adopted a different stance after the scandal in The Gambia. It has revoked the export licence of the Haryana-based Maiden Pharmaceuticals Ltd. (that supplied the syrup to the Gambia).
• Furthermore, instead of investigating the case, India questioned the WHO’s assessment. It was further suggested through a letter that the Drugs Controller General of India’s (DCGI) tests of ‘control samples’ of the Maiden Pharma product showed them to be free of contaminants. 
• It should be noted that the Gambian panel’s tests found the contaminants.
• It is accused both by the DCGI and the Health Ministry that the Gambian scandal was part of a conspiracy to “malign” India’s reputation as a supplier of pharmaceutical goods.
• In the case of the Noida-based Marion Biotech, which made the Dok-1 Max cough syrup associated with the deaths in Uzbekistan, the export licence of the company was revoked.
• The government has also ordered a freeze on its production facilities.
• India should proactively investigate the core issue. 
• Mistakes are acceptable but ignoring the issue and not taking corrective measures threatens India’s image and undermines trust in Indian industry.

Related Link: Spurious Drug Menace: Sansad TV Perspective

Nut Graf: To maintain the trust of the countries in India as the pharmacy of the world, it is important that India should proactively look into the matters of pharmaceutical goods export. It should collaborate with both the World Health Organization and the respective governments of the country and take appropriate measures.

Q1. Consider the following statements: (Level - Difficult)

Q2. Consider the following statements with respect to Adi Shankaracharya: (Level-Medium)

Q3. Arrange the following Islands/reef formations in the South China Sea from North 
to South: (Level - Difficult)

Q4. Yuktdhara Portal is associated with which of the following schemes? (Level-Medium)

Q5. He wrote biographies of Mazzini, Garibaldi, Shivaji and Shrikrishna; stayed in 
America for some time; and was also elected to the Central Assembly. He was
(Level - Easy) PYQ-2019

I. UPSC Mains Practice Questions

1. There is a growing need for the Government to grant legal recognition to same-sex marriages. Discuss. (10 Marks; 150 Words) (GS-2; Polity)
2. Cough syrup deaths will impact India’s reputation of being ‘pharmacy of the world’. In the light of the statement, how do we hold pharma companies responsible? Examine. (10 Marks; 150 Words) (GS-2; International Relations)

Read the previous CNA here.