16 Mar 2024: UPSC Exam Comprehensive News Analysis

B. GS 2 Related

Category: Polity

1. SC to hear pleas seeking stay on CAA, its rules on March 19

Syllabus: Important Amendments of the Indian Constitution

Prelims: CAA provisions

Mains: Issues with CAA implementation

Context​: The controversy surrounding the Citizenship (Amendment) Act (CAA) and its rules has prompted a series of petitions seeking a stay on its implementation. The Supreme Court of India has agreed to hear these petitions on March 19, 2024. The CAA, enacted in 2019, aims to fast-track Indian citizenship for non-Muslim migrants from Afghanistan, Bangladesh, and Pakistan. However, its legality has been challenged on grounds of discrimination based on religion.

Issues

• Legal Challenge: The primary contention is that the CAA discriminates in granting citizenship based on religion, which is a violation of constitutional principles.
• Challenges to CAA: The Indian Union Muslim League (IUML) is the primary petitioner challenging the legality of CAA, arguing that it discriminates in granting citizenship based on religion. The Democratic Youth Federation of India (DYFI) has also filed an application seeking an interim stay on the implementation of the law.
• Timing of Implementation: Concerns have been raised regarding the timing of notifying the rules just ahead of elections, raising suspicions about political motivations.
• Irreversible Process: Once the citizenship process under the CAA begins, it is argued that it cannot be reversed, potentially leading to long-term implications.

Significance

• Constitutional Implications: The outcome of these petitions holds significant constitutional implications regarding citizenship rights and equality before the law.
• Political Ramifications: The controversy surrounding the CAA has political ramifications, impacting public discourse and perceptions.
• Human Rights Concerns: There are broader concerns regarding the protection of minority rights and the principles of secularism enshrined in the Indian Constitution.

Solutions

• Judicial Review: The Supreme Court’s review of the CAA petitions offers a legal avenue to address concerns regarding its constitutionality.
• Legislative Amendments: If deemed necessary, amendments to the CAA could be proposed to address the issues raised and ensure non-discriminatory citizenship criteria.
• Public Discourse and Awareness: Continued public discourse and awareness campaigns can foster understanding of the issues at stake and their implications for Indian society.

Nut Graf: The Supreme Court’s decision to hear petitions seeking a stay on the CAA and its rules reflects the significance of the legal and constitutional challenges posed by this legislation. The outcome of these proceedings will not only shape citizenship policies but also have broader implications for India’s democratic values and commitment to inclusivity and equality.

Category: GOVERNANCE

1. Many top electoral bond donors were under scanner of ED, I-T Department

Syllabus: Government policies and interventions for the development of various sectors

Mains: Issues with electoral bonds

Context​: The revelation that many top electoral bond donors were previously under scrutiny by agencies such as the Enforcement Directorate (ED) and the Income Tax (I-T) Department raises significant concerns about transparency and integrity in political funding. Patterns emerge where companies made substantial purchases of electoral bonds either before or after facing investigations, suggesting potential links between political donations and regulatory actions.

Issues

• Questionable Timing of Donations: The timing of electoral bond purchases by companies, either preceding or following investigations by enforcement agencies, raises suspicions of potential motives behind political contributions.
• Potential Influence on Regulatory Actions: The correlation between donations and regulatory scrutiny suggests the possibility of influence exerted through political funding, raising concerns about the integrity of regulatory processes.
• Opaque Nature of Electoral Bonds: The opacity surrounding electoral bonds, including the anonymity of donors and lack of disclosure requirements, exacerbates concerns about accountability and transparency in political funding.

Data:

• Future Gaming and Hotel Services PR: This company was the largest donor to political parties through the electoral bond route, despite being investigated by the ED for a lottery scam. They made significant purchases of electoral bonds both before and after ED searches.
• Kolkata-based Companies with Common Director: Keventer Food Park Infra Ltd., MKJ Enterprises Ltd., and Madanlal Ltd. are three firms registered at the same address and sharing a common director. They collectively donated a substantial amount through electoral bonds, with notable purchases made in specific batches.
• Controversy Surrounding Keventer Agro: Keventer Agro faced controversy after the West Bengal government’s sale of its stake in Metro Dairy to Keventer Agro. The ED investigated the divestment but the investigation lost steam after legal proceedings.
• Yashoda Super Speciality Hospital Group: This group donated a significant amount through electoral bonds after their premises were searched by the Income Tax Department.
• Aurobindo Pharma: Following the arrest of Aurobindo Pharma’s director, the company purchased electoral bonds. The company continued purchasing bonds even after the arrest.
• Shirdi Sai Electricals Ltd. and Kalpataru Projects International: Both companies faced Income Tax searches. Shirdi Sai Electricals purchased electoral bonds after the searches, while Kalpataru Projects International bought bonds before and after similar searches.

Significance

• Threat to Democratic Principles: Instances of potential quid pro quo between corporate entities and political parties undermine the democratic principles of accountability and fair representation.
• Public Distrust: Revelations about the nexus between political donations and regulatory actions contribute to public distrust in the political system and erode confidence in governance.
• Need for Reforms: The exposure of such patterns underscores the urgency for reforms in political funding mechanisms to enhance transparency and accountability.

Solutions

• Strengthen Regulatory Oversight: There is a need to strengthen regulatory oversight mechanisms to prevent undue influence on political processes and ensure impartiality in regulatory actions.
• Transparency in Political Funding: Implementing measures to enhance transparency in political funding, including comprehensive disclosure requirements for electoral bonds and public access to donor information, can promote accountability and deter illicit practices.
• Legal Reforms: Reviewing existing laws and regulations governing political funding to address loopholes and vulnerabilities that facilitate undue influence by corporate entities.

Nut Graf: The revelation of electoral bond donations by companies under the scanner of enforcement agencies underscores the urgent need for reforms in India’s political funding landscape.

C. GS 3 Related

Category: ECONOMY

1. India woos Tesla by slashing import duty on EVs to 15% from 70-100%

Syllabus: Economic Development in India

Mains: Electric vehicles policy of India

Context​: India’s move to slash import duties on electric vehicles (EVs) from 70-100% to 15% is aimed at attracting global players like Tesla to establish manufacturing facilities within the country. The policy incentivizes EV makers to invest in local production, thereby promoting domestic manufacturing and technological advancement in the electric vehicle sector.

Issues

• High Import Duties: The previously high import duties on CBUs of electric vehicles posed a barrier to the entry of global players into the Indian market, hindering technological advancement and competition.
• Need for Local Manufacturing: India aims to boost domestic manufacturing capabilities in the electric vehicle sector to reduce dependency on imports and promote self-reliance.
• Balancing Domestic Concerns: The government faces the challenge of balancing the interests of domestic manufacturers to attract foreign investment and technology transfer.

Significance

• Attracting Global Players: Lowering import duties makes India a more attractive destination for global EV manufacturers, fostering competition and innovation in the domestic market.
• Boost to Electric Vehicle Adoption: The policy incentivizes the adoption of electric vehicles by facilitating the entry of technologically advanced and globally recognized brands like Tesla, thereby contributing to India’s efforts to combat air pollution and reduce carbon emissions.
• Economic Growth and Job Creation: Establishing local manufacturing units by global players can stimulate economic growth, create employment opportunities, and enhance technological capabilities in the electric vehicle ecosystem.

Solutions

• Conditional Duty Reduction: Linking the import duty reduction to conditions such as minimum investment, local manufacturing, and domestic value addition ensures that the benefits are tied to the development of the domestic electric vehicle industry.
• Promotion of R&D: Encouraging research and development collaborations between foreign and domestic firms can facilitate knowledge transfer and technological innovation in the electric vehicle sector.
• Support for Domestic Players: While attracting global players is important, providing support and incentives for domestic manufacturers to upgrade technology and enhance competitiveness is crucial for a balanced growth trajectory.

Nut Graf: India’s decision to slash import duties on electric vehicles demonstrates the government’s commitment to promoting sustainable mobility and fostering a conducive environment for investment and innovation in the electric vehicle sector.

Category: SECURITY

1. Technology combined with behavioural analysis can prevent financial frauds: Das

Syllabus: Internal Security Challenges in India

Mains: Steps to prevent financial fraud

Context​: Reserve Bank of India (RBI) Governor Shaktikanta Das highlighted the potential of technology combined with behavioural analysis in preventing financial fraud during his address at the annual conference of RBI Ombudsman in Mumbai. While acknowledging the effectiveness of such technologies in detecting suspicious consumer behaviour, he also cautioned against the risks of compromising customer data and privacy.

Issues

• Detection of Anomalies: Identifying irregularities in consumer behaviour, such as transactions during odd hours or deviations from usual patterns, is crucial in preventing financial frauds.
• Risk of Data Compromise: The utilization of technology for behavioural analysis raises concerns about the invasion of privacy and potential manipulation of consumer data, necessitating appropriate safeguards.
• Nascent Stage of AI Deployment: While Artificial Intelligence (AI) holds promise in fraud prevention, identity verification, and data protection, its current deployment in these areas remains at a nascent stage, posing challenges in effective implementation.

Significance

• Enhanced Fraud Prevention: Leveraging technology for behavioural analysis can significantly enhance fraud detection capabilities, thereby safeguarding financial institutions and consumers against fraudulent activities.
• Customer Experience: Personalized interaction through AI-driven chatbots and virtual assistants enhances customer service experience, improving overall satisfaction and loyalty.
• Trust in Financial Institutions: Upholding trust and confidence in the banking sector is essential for maintaining stability and fostering economic growth, highlighting the importance of effective grievance redressal mechanisms like the Ombudsman framework.

Solutions

• Data Protection Measures: Implementing robust data protection measures and privacy safeguards are essential to mitigate the risks associated with the utilization of technology in behavioural analysis.
• Ethical Use of AI: Ensuring the ethical use of AI technologies involves transparent practices, responsible data handling, and adherence to regulatory guidelines to prevent misuse and manipulation.
• Continuous Monitoring and Improvement: Regular monitoring and continuous improvement of AI capabilities are necessary to address emerging threats and enhance the effectiveness of fraud prevention measures.

Nut Graf: Shaktikanta Das’s emphasis on the potential of technology combined with behavioural analysis in preventing financial fraud underscores the importance of innovation and adaptation in the banking sector.

Q1) With reference to electric vehicles (EVs), consider the following statements:

Q2) Consider the following statements about Antimicrobial Resistance (AMR):

Q3) Consider the following statements about Bioethanol:

Q4) Consider the following statements about the Atmospheric Research Testbed 
(ART) near Bhopal:

Q5) “The experiment will employ a trio of spacecraft flying in formation in the 
shape of an equilateral triangle that has sides one million kilometres long, with 
lasers shining between the craft.” The experiment in question refers to