29 Jun 2024: UPSC Exam Comprehensive News Analysis

29 June 2024 CNA
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A. GS 1 Related
B. GS 2 Related
INTERNATIONAL RELATIONS
1. India slams ‘deeply biased’ U.S. report on religious freedom
2. India achieves ‘outstanding outcome’ in evaluation conducted by FATF
C. GS 3 Related
D. GS 4 Related
E. Editorials
ECONOMY
1. A fresh start
F. Prelims Facts
1. Make world governance more effective and balanced, China’s Xi Jinping tells Global South
2. Russia warns of ‘response’ against U.S. drones over Black Sea
3. Polavaram project in limbo, says A.P. CM
4. Botanical institute sets out to revive rare flowers used in Puri’s Jagannath Temple
G. UPSC Prelims Practice Questions
H. UPSC Mains Practice Questions

Syllabus: Effect of policies and politics of developed and developing countries on India’s interests.

Mains: India- US relations

Context​: The Indian government recently criticized the U.S. State Department’s 2023 report on International Religious Freedom, calling it “deeply biased” and a “one-sided projection of issues”. The report, which highlights concerns over religious freedom in various countries, including India, has been met with strong opposition from Indian authorities.

Key Points from the U.S. Report:

• Anti-Conversion Laws: The report notes an increase in anti-conversion laws in India.
• Hate Speech and Demolitions: It mentions incidents of hate speech and demolitions of homes and places of worship belonging to minority faith communities.
• Complicity of Law Enforcement: The report alleges a relationship between law enforcement agencies and majoritarian groups, implicating the authorities in failing to protect minority rights.
• Campaign for Uniform Civil Code (UCC): The report flags the UCC campaign as a factor influencing religious freedom.
• Hindu Rashtra Campaign: It also mentions the campaign for creating a “Hindu Rashtra” in India.

Indian Government’s Response:

• Selective Incident Reporting: External Affairs Ministry spokesperson Randhir Jaiswal criticized the report for selectively picking incidents to advance a pre-conceived narrative.
• Questioning Legal Judgments: The Indian government argued that the report questions the integrity of Indian court judgments.
• Highlighting U.S. Law and Order Issues: India pointed out the U.S.’s own issues with hate crimes and racial attacks, emphasizing the crimes against Indians and other minorities in the U.S.

Issues

Bias and Misrepresentation:

• One-Sided Projection: The report is accused of being one-sided and biased, relying on selective facts and sources.
• Imputations and Misrepresentations: India claims the report misrepresents constitutional provisions and duly enacted laws.

Interference in Domestic Affairs:

• Intrusion into Legislative Affairs: The report is seen as interfering with India’s legislative processes and questioning the validity of its laws and regulations.

Impact on Bilateral Relations:

• Diplomatic Tensions: Such reports can strain diplomatic relations between India and the U.S., affecting cooperation on various fronts.

Significance

Domestic Implications:

• Public Perception: The report may influence public perception and debate within India regarding religious freedom and minority rights.
• Policy Making: It could impact policy decisions and legislative actions, especially concerning religious laws and minority protections.

International Repercussions:

• Global Image: The report affects India’s global image concerning human rights and religious freedom.
• Bilateral Relations: It may lead to diplomatic dialogues and negotiations between India and the U.S. to address the concerns raised.

Solutions

Engagement and Dialogue:

• Bilateral Discussions: Engage in constructive dialogue with the U.S. to address the issues raised in the report.
• Clarifications and Rebuttals: Provide detailed clarifications and rebuttals to the allegations made in the report.

Domestic Measures:

• Strengthening Legal Framework: Ensure that the legal framework effectively protects religious minorities and addresses genuine concerns.
• Transparency and Accountability: Enhance transparency and accountability in law enforcement agencies to build trust among all communities.

International Cooperation:

• Human Rights Collaboration: Collaborate with international bodies to improve human rights practices and address global concerns.
• Promoting Religious Harmony: Initiate programs and policies that promote religious harmony and tolerance within the country.

Nut Graf: The U.S. State Department’s report on International Religious Freedom has drawn strong criticism from India for its perceived bias and selective reporting. While addressing the concerns raised, India must engage in constructive dialogue with the U.S. and ensure robust protection of religious freedoms domestically.

2. India achieves ‘outstanding outcome’ in evaluation conducted by FATF

C. GS 3 Related

Nothing here for today!!!

Syllabus: GS-3, Taxes in the economy

Mains: Significance of GST

Context:​ The Goods and Services Tax (GST) Council convened for the first time in nearly nine months, marking a new beginning with 11 new State Ministers and a new government at the Centre. The Council faced a loaded agenda of clarifications, procedural changes, and industry feedback-based amendments. Despite the extensive agenda, significant decisions were made to ease taxpayers’ burden, reduce litigation, and provide tax relief.

Key Decisions and Measures:

• Hostel Accommodation and Railway Services: Exemption from GST for hostel accommodations costing up to ₹20,000 per month and railway services for passengers.
• Uniform Tax Rates: Approval of a uniform 12% rate for packing cartons, milk cans, and solar cookers.
• Waiver of Interest and Penalty: Waiver on tax dues for the first three years of GST, provided they are paid by March 2025.
• Appeal Deposits and Correction Forms: Reduction in pre-deposits for filing appeals and approval of a new form for correcting errors in previous returns.
• Anti-profiteering Clause: Ending the requirement for firms to pass on tax cut gains to customers.
• Biometric-based Aadhaar Authentication: Phased implementation across India for GST registrations.

Issues

Implementation Challenges:

• Complex Procedures: The registration process has become cumbersome for some, potentially hindering the ease of doing business.
• Fine Print Dependencies: The effectiveness of the new measures depends heavily on the detailed guidelines and rules that will follow.
• Multiple-rate GST Structure: The plan to rationalize the multiple-rate GST structure from 2021 remains in cold storage, needing urgent attention.
• Excluded Items: Significant sectors like petroleum and electricity are still outside the GST net, complicating the tax structure.

Significance

Impact on Taxpayers and Businesses:

• Tax Relief and Simplification: The measures aim to provide immediate relief to taxpayers, simplify tax procedures, and reduce litigation.
• Industry-specific Benefits: Specific industries will benefit from retrospective measures, enhancing their operational efficiency.
• Fraud Prevention: Biometric-based Aadhaar authentication aims to curb fraud through fake invoicing.

Long-term Reforms:

• Rate Rationalization: Addressing the multiple-rate GST structure could lead to a more straightforward tax regime.
• Inclusion of Petroleum and Electricity: Bringing these sectors into the GST net would streamline the tax structure and potentially lower costs for consumers and businesses.

Solutions

Road Map for Reforms:

• Expedited Rate Rationalization: Revive and expedite the plan to rationalize the multiple-rate GST structure.
• Inclusion of Excluded Items: Develop a strategic plan to incorporate petroleum and electricity into the GST framework.
• Simplified Procedures: Continue to refine and simplify GST procedures, making registration and compliance easier for businesses.
• Effective Implementation: Ensure clear, detailed guidelines for new measures to maximize their positive impact.

Nut Graf: The GST Council’s recent meeting marks a significant step towards simplifying India’s indirect tax regime. By addressing immediate taxpayer concerns and laying the groundwork for broader reforms, the Council has demonstrated a commitment to improving the GST system.

F. Prelims Facts

1. Make world governance more effective and balanced, China’s Xi Jinping tells Global South

Context: Chinese President Xi Jinping emphasized the need for the Global South to play an active role in reforming and developing the global governance system to make it more balanced and effective. His remarks, made at the event marking the 70th anniversary of the Five Principles of Peaceful Coexistence, underscored China’s commitment to peaceful development and its opposition to hegemonic practices.

Historical Context:

• Five Principles of Peaceful Coexistence: Introduced during the Cold War era, these principles aimed to safeguard sovereignty and promote economic growth among newly independent countries. They include mutual respect for sovereignty and territorial integrity, mutual non-aggression, mutual non-interference in internal affairs, equality and mutual benefit, and peaceful coexistence.
• Global Influence: Initially adopted in Asia, these principles were embraced by the Non-Aligned Movement in the 1960s and have since become fundamental norms for international relations and law.

Xi Jinping’s Key Messages:

• Commitment to Peaceful Development: Xi reiterated China’s dedication to peaceful development, rejecting colonialism and hegemony.
• Role of the Global South: He highlighted the significant role of the Global South in promoting human progress and called for greater openness, inclusivity, and cooperation to build a community with a shared future for mankind.
• Force for Peace: Emphasizing the importance of peaceful settlement of disputes, Xi urged the Global South to be a staunch force for peace and to participate constructively in resolving international and regional issues.

Advocacy for Open Development:

• Development as a Central Agenda: Xi called for the restoration of development as the central international agenda item and the deepening of South-South and North-South cooperation.
• Non-Interference and Multilateralism: He stressed the importance of upholding non-interference, opposing bloc confrontations, and strengthening the authority and central role of the United Nations.

Issues

Hegemony and Colonialism:

• Western Dominance: Xi’s remarks included a critique of Western colonial and hegemonic practices, advocating for a more balanced global governance system.
• Sovereignty and Non-Interference: Emphasis on respecting sovereignty and non-interference in internal affairs as fundamental principles.

Global South Challenges:

• Economic Disparities: Persistent economic disparities between the Global North and South.
• Political Instability: Ongoing political instability and conflicts in many Global South countries.

Significance

Global Governance Reform:

• Balanced Governance: Advocating for a more balanced global governance system where the interests of developing countries are adequately represented.
• Strengthened Multilateralism: Reinforcing the role of the United Nations and promoting true multilateralism in global affairs.

Promotion of Peace and Development:

• Peaceful Coexistence: Encouraging peaceful coexistence and the peaceful settlement of disputes.
• Inclusive Development: Highlighting the need for inclusive development and cooperation between the Global North and South.

Solutions

Strengthening Cooperation:

• South-South Cooperation: Enhancing cooperation among developing countries to address common challenges and promote mutual development.
• North-South Dialogue: Fostering dialogue and partnerships between developed and developing countries to bridge economic and development gaps.

Upholding International Norms:

• Non-Interference: Adhering to the principle of non-interference and opposing practices that undermine sovereignty.
• Multilateral Engagement: Actively participating in multilateral platforms to advocate for the interests of the Global South.

Promoting Inclusive Development:

• Economic Partnerships: Developing economic partnerships that prioritize sustainable and inclusive development.
• Capacity Building: Investing in capacity-building initiatives to empower developing countries and enhance their governance capabilities.

2. Russia warns of ‘response’ against U.S. drones over Black Sea

Context: Tensions between Russia and the United States have escalated due to increased U.S. drone activity over the Black Sea. Russia’s Defence Minister has instructed officials to prepare a response to these flights, signalling potential forceful actions.

Recent Developments:

• Increased U.S. Drone Activity: The Russian Defence Ministry has observed a rise in U.S. drone operations over the Black Sea. These drones are believed to conduct intelligence and targeting operations for precision weapons provided to Ukraine by Western nations.
• Russian Concerns: Moscow views these flights as a sign of increased U.S. and NATO involvement in the Ukraine conflict, which Russia perceives as supporting the Kyiv regime against Russian interests.

Potential Risks:

• Risk of Incidents: The increased drone activity raises the likelihood of incidents involving Russian military aircraft, potentially leading to direct confrontations between NATO and Russia.
• Historical Precedents: In 2023, a Russian fighter jet damaged a U.S. drone over the Black Sea, causing it to crash. Similar incidents could exacerbate tensions and lead to further conflicts.

Russian Response:

• Defence Minister’s Directive: Russian Defence Minister Andrei Belousov has instructed the General Staff to propose measures for an operative response to what Moscow terms as provocations by U.S. drones.
• Potential Actions: While specific measures were not detailed, the directive suggests possible military actions to deter or neutralize U.S. drone flights over the Black Sea.

Issues

Escalation of Tensions:

• The increased drone activity and Russia’s potential military response could lead to a significant escalation of tensions between NATO and Russia.
• The risk of direct military confrontations in the Black Sea region could increase, potentially involving other NATO allies.

International Security Concerns:

• The conflict in Ukraine, already a point of significant international concern, could see broader implications if tensions between major powers like the U.S. and Russia escalate further.
• The potential for incidents involving military aircraft raises the stakes for international peace and security.

NATO’s Role:

• NATO’s involvement in supporting Ukraine with intelligence and precision weapons is viewed by Russia as direct interference, complicating diplomatic efforts to de-escalate the situation.
• The responsibility and response of NATO allies in the event of a confrontation remain a critical issue.

Significance

Impact on Ukraine Conflict:

• The involvement of U.S. drones and potential Russian responses could influence the dynamics of the conflict in Ukraine, affecting both strategic and tactical operations.
• Any escalation might impact the support provided to Ukraine by Western nations, altering the balance of power in the region.

Global Military and Diplomatic Relations:

• The situation reflects the broader geopolitical tensions between NATO and Russia, influencing global military and diplomatic relations.
• The outcome of this standoff could set precedents for future interactions between major powers in contested regions.

International Law and Norms:

• The incident raises questions about the legality and norms surrounding the use of drones in contested airspaces and international waters.
• How international law addresses such confrontations will be crucial in managing similar situations in the future.

3. Polavaram project in limbo, says A.P. CM

Context: The Polavaram Irrigation Project (PIP) in Andhra Pradesh, a multipurpose venture aimed at providing irrigation, drinking water, and hydroelectric power, has faced significant setbacks. 

Background:

• Project Scope: The PIP is designed to irrigate 2.91 lakh hectares, supply drinking water to 540 villages, and generate 960 MW of hydroelectric power.
• Significance: It is crucial for flood control and interlinking river systems in the region.

Key Issues:

• Change of Contractor: The sudden replacement of the project’s contractor at a critical stage has been cited as a primary cause of the project’s delays and damages.
• Ignored Advice: The decision to change the contractor was made despite recommendations from the Polavaram Project Authority and the Ministry of Jal Shakti to maintain continuity.
• Delays in Mobilization: The new contractor faced significant delays in mobilizing the necessary workforce and machinery, further hindering progress.
• Damage to Diaphragm Wall: The failure to plug two crucial gaps in the upstream cofferdam led to severe damage to the diaphragm wall, a critical component of the project.
• Relief and Rehabilitation (R&R): The previous administration’s failure to complete R&R work in affected villages has compounded the challenges, leaving many without adequate support.

Issues

• Financial Overruns: The project now requires an additional ₹12,157 crore to complete Phase I due to delays and damages.
• Project Delays: The shift in contractors and subsequent delays have pushed the project timeline back significantly, impacting its intended benefits.
• Government Inefficiency: Accusations of ignorance and inefficiency in decision-making have marred the project’s progress and credibility.
• Social Impact: The incomplete R&R work has left many affected communities in limbo, exacerbating social tensions and hardships.

Significance

• Regional Development: The completion of the PIP is vital for the agricultural and economic development of Andhra Pradesh.
• Water Security: The project aims to address water scarcity issues in the region, providing a stable water supply for multiple uses.
• Flood Control: Effective flood management through the PIP can mitigate flood risks in the region, protecting lives and property.
• Political Accountability: The project’s setbacks highlight the need for accountability and efficiency in large-scale public projects.

4. Botanical institute sets out to revive rare flowers used in Puri’s Jagannath Temple

Context: The National Botanical Research Institute (NBRI) in Lucknow, part of the Council of Scientific and Industrial Research (CSIR), has embarked on a mission to revive endangered flower species used in the rituals of the Shree Jagannath Temple in Puri, Odisha. This initiative follows a Memorandum of Understanding (MoU) signed between NBRI and the Shree Jagannath Temple Administration (SJTA).

Project Background:

• Historical Significance: The Shree Jagannath Temple, a 12th-century shrine, has a rich tradition of using specific flowers and leaves in its rituals.
• MoU with SJTA: NBRI signed an MoU with SJTA to address the temple’s floral needs and to revive rare flower species crucial for temple rituals.

Key Activities:

• Study of Scriptures: NBRI researchers are studying ancient scriptures to understand the traditional use of various flowers and leaves in temple rituals.
• Flower Supply: NBRI has supplied Maurya and Davana (Dayana) flowers, among other species, to the temple.
• Gardening Initiatives: Quality planting materials for flowers like marigold, tuberose, tulsi, jasmine, and davana have been introduced in the temple’s Matitota garden.
• Training for Gardeners: Periodic training sessions are conducted for gardeners on agro-practices to ensure the successful cultivation of these plants.
• Poly-house Establishment: A poly-house has been set up in the Matitota garden to facilitate year-round cultivation.

Introduction of Lotus Variety:

• Namoh 108 Lotus: The Namoh 108 variety of lotus, developed by CSIR-NBRI, has been introduced in the Koili Baikuntha garden of the temple. This lotus variety is in high demand for daily rituals due to its aromatic properties.

Issues

• Endangered Species: Many flower species used in temple rituals are rare and endangered, making their procurement challenging.
• Cultivation Challenges: Ensuring the successful cultivation and continuous supply of these plants requires specialized knowledge and infrastructure.
• Tradition Preservation: Maintaining the temple’s rich floral traditions while reviving endangered species poses a significant challenge.

Significance

• Cultural Preservation: Reviving and ensuring the availability of these sacred flowers helps preserve the temple’s rich cultural and religious traditions.
• Biodiversity Conservation: The project aids in the conservation of endangered floral species, contributing to overall biodiversity preservation.
• Scientific Collaboration: The initiative showcases the importance of scientific collaboration in addressing cultural and ecological challenges.

H. UPSC Prelims Practice Questions

Q1. Consider the following statements with respect to the Keshava Temple of 
Somanathapur:

1. It is a Trikuta temple dedicated to Lord Krishna in three forms.
2. It is a UNESCO world heritage site.
3. It is a Hoysala monument.

How many of these statements is/are incorrect?

1. Only one
2. Only two
3. All three
4. None

CHECK ANSWERS:-

Answer: d

Explanation: All three statements are correct. 

Q2. The Polavaram Project is a multi-purpose irrigation project being constructed 
on the River:

1. Narmada
2. Kaveri
3. Godavari
4. Mahanadi

CHECK ANSWERS:-

Answer: c

Explanation: The Polavaram Project is an under-construction multi-purpose irrigation project on the Godavari River in the Eluru District and East Godavari District in Andhra Pradesh.

Q3. Consider the following statements:

1. The Five Principles of Peaceful Coexistence was first propounded in the Sino-Indian Agreement of 1964.
2. India called it the ‘Panchsheel Agreement’.

Which of these statements is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

CHECK ANSWERS:-

Answer: b

Explanation: Statement 1 is incorrect. The Five Principles of Peaceful Coexistence was first propounded in the Sino-Indian Agreement of 1954.

Q4. How many of these G20 nations share the distinction of being in the FATF 
‘regular follow-up’ category?

1. France
2. India
3. Germany
4. Russia

Choose the correct answer using the code given below:

1. Only one
2. Only two
3. Only three
4. All four

CHECK ANSWERS:-

Answer: c

Explanation: The FATF ‘regular follow-up’ category status is shared by only five G20 nations — India, the UK, France, Italy, and Russia.

Q5. Consider the following statements with respect to MQ-9 Reaper:

1. It is an unmanned aerial vehicle (UAV) capable of remotely controlled or autonomous flight operations.
2. It is developed by General Atomics Aeronautical Systems (GA-ASI), primarily for the United States Air Force (USAF).
3. The US uses the MQ-9 Reaper for surveillance only.

How many of these statements is/are incorrect? 

1. Only one
2. Only two
3. All three
4. None

CHECK ANSWERS:-

Answer: a

Explanation: The US uses the MQ-9 Reaper for both surveillance and strike.

I. UPSC Mains Practice Questions

1. Explain the structure of GST and analyse the need for major reforms related to it. (15 marks, 250 words) [GS-3, Economy]
2. FATF has helped in preventing illegal trade, money transfer and terror financing in the world. In light of this statement, discuss India’s role in this task. (10 marks, 150 words) [GS-2, International Relations]

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