Saturday, May 3, 2025

Parliamentary Oversight in India – UPSC Polity

 

Parliamentary Oversight in India – UPSC Polity

India's parliamentary democracy is built on the foundational principle of executive accountability to the legislature. At the heart of this structure lies the concept of Parliamentary Oversight—a set of institutional mechanisms and procedures that ensure that the government remains answerable to the people through their elected representatives. However, recent developments have raised concerns about the weakening of this crucial function.

This article delves into the importance of parliamentary oversight, the constitutional provisions enabling it, challenges undermining its efficacy, and the reforms needed to revitalize Parliament’s role as the custodian of public interest. The analysis draws from current affairs, especially editorials in The Hindu, and is aligned with the UPSC CSE Polity syllabus.


What is Parliamentary Oversight?

Definition:
Parliamentary oversight refers to the continuous review, monitoring, and evaluation of executive actions by the legislature. It aims to ensure accountability, transparency, responsiveness, and good governance.

Significance in Indian Democracy:

  • India follows a Westminster-style parliamentary system, where the executive is accountable to the legislature.

  • This system empowers Parliament to act as a check on arbitrary or inefficient governance.

  • Oversight tools such as Question Hour, Zero Hour, Adjournment Motions, and Parliamentary Committees provide mechanisms for holding the government to account.


Constitutional and Institutional Framework

1. Article 75

  • States that the Council of Ministers is collectively responsible to the Lok Sabha, making it a constitutional mandate for Parliament to supervise executive actions.

2. Parliamentary Tools of Oversight

  • Question Hour: MPs ask questions to Ministers to clarify policy decisions and expose inefficiencies.

  • Zero Hour: Informal platform for raising urgent issues without prior notice.

  • Debates and Discussions: Enable deeper deliberation on public issues.

  • Motions and Resolutions: Include adjournment motions, no-confidence motions, and calling attention motions.

  • Parliamentary Committees: Provide in-depth scrutiny of bills, policies, and expenditure.

3. Vision of Dr. B.R. Ambedkar

  • He described parliamentary democracy as a system of "more responsibility, less stability", highlighting the need for daily accountability through Parliament.


Challenges Undermining Parliamentary Oversight

Despite having robust frameworks, the actual practice of parliamentary oversight in India is increasingly fragile.

1. Disruption of Question Hour

  • In the 17th Lok Sabha (2019–24), only 60% of Question Hour sessions were functional, while the Rajya Sabha recorded only 52%.

  • Frequent adjournments, walkouts, and protests reduce meaningful dialogue.

  • Example: During the Pegasus spyware scandal (2021), repeated disruptions prevented MPs from questioning the government on surveillance and data privacy.

2. Underutilisation of Parliamentary Committees

  • Standing Committees produce detailed and technical reports, but these are rarely discussed in Parliament.

  • Annual rotation of committee members reduces subject matter expertise and continuity.

  • Example: The Standing Committee on Environment’s report on Delhi pollution (2021) was a significant document but saw limited legislative action.

3. Absence of Post-Legislative Scrutiny (PLS)

  • There is no structured mechanism to evaluate whether a law achieves its intended objectives.

  • Example: The Companies (Amendment) Act, 2013 aimed at ease of doing business but instead led to a surge in criminal prosecutions due to ambiguities in compliance norms.


Need for Reforms in Parliamentary Oversight

India’s Parliament must adapt to modern governance challenges. The following reforms can revitalize its oversight role:


1. Institutionalize Post-Legislative Scrutiny (PLS)

Global Best Practice: UK Model

  • In the UK, government departments submit implementation reviews of laws within 3–5 years.

Indian Application:

  • A sub-committee under each Department-Related Standing Committee (DRSC) can be formed to evaluate the impact and efficacy of landmark laws like:

    • Insolvency and Bankruptcy Code

    • National Education Policy

    • Forest Conservation Act


2. Revamp Parliamentary Committee System

  • Translate committee reports into regional languages.

  • Use infographics and short videos to improve accessibility and citizen engagement.

  • Mandate floor discussions on major reports to increase visibility and accountability.

Example: The Data Protection Bill report (2022) by the IT Committee was never formally debated before the bill was withdrawn.

  • Technical Support: Provide each committee with data analysts, legal experts, and policy researchers.

Example: The US Congressional Research Service (CRS) is a non-partisan agency that supports American lawmakers—India lacks an equivalent institutional mechanism.


3. Leverage Technology and Artificial Intelligence

  • Develop AI-powered tools to:

    • Track anomalies in budget allocations.

    • Detect misutilisation in welfare schemes.

    • Monitor audit reports and scheme outcomes.

Example: AI could have detected the PM-Kisan scheme misuse, where ineligible farmers received benefits due to data mismatches.


4. Launch a Parliamentary Modernisation Scheme

  • A comprehensive scheme with investment in:

    • Digital tools and dashboards

    • In-house research wings

    • Multilingual dissemination platforms


5. Promote Legislative Cooperation

  • Encourage cross-party consensus during key sessions like Question Hour.

  • Reduce instances of unruly behavior and frequent disruptions.

  • Create a Code of Conduct for MPs to maintain parliamentary decorum.


6. Foster Citizen Participation

  • Launch public feedback portals for bills and committee reports.

  • Conduct public consultations similar to the pre-legislative consultation policies followed in countries like Canada and New Zealand.


7. Encourage DRSCs in State Legislatures

  • Institutionalize Department-Related Standing Committees (DRSCs) at the state level.

  • Foster a federal ecosystem for legislative oversight, enhancing transparency in state governance.


Conclusion

As former President K.R. Narayanan stated in 1993, "Parliamentary oversight is not meant to criticize, but to improve governance." A strong oversight mechanism is vital to uphold the spirit of the Indian Constitution. Revitalizing Parliament’s scrutiny role will restore public trust, enhance accountability, and deliver on the promise of a government that is truly of the people, by the people, and for the people.


UPSC CSE Prelims MCQs

1. Which Article of the Indian Constitution mandates collective responsibility of the Council of Ministers to the Lok Sabha?
a) Article 72
b) Article 75
c) Article 80
d) Article 123
Answer: b) Article 75


2. Which of the following is not a Parliamentary tool of oversight?
a) Zero Hour
b) Calling Attention Motion
c) Judicial Review
d) Adjournment Motion
Answer: c) Judicial Review


3. What is the primary function of Department-Related Standing Committees (DRSCs)?
a) Conducting elections
b) Policy making
c) Detailed examination of bills and budget allocations
d) Judicial appointments
Answer: c) Detailed examination of bills and budget allocations


4. Which foreign institution supports lawmakers with non-partisan research and policy analysis?
a) Interpol
b) Congressional Research Service (CRS), USA
c) European Parliament Library
d) World Bank Parliamentary Forum
Answer: b) Congressional Research Service (CRS), USA


5. The Post-Legislative Scrutiny (PLS) process is prominently followed in which country?
a) Japan
b) India
c) United Kingdom
d) South Africa
Answer: c) United Kingdom


UPSC Mains Question (GS Paper 2)

Q. "Explain the role of Parliamentary Oversight in ensuring executive accountability in India. Discuss the recent challenges to its effectiveness and suggest reforms to strengthen this constitutional function."

Friday, May 2, 2025

Private Sector CAPEX Investment in India: Key Insights for UPSC CSE

 

Private Sector CAPEX Investment in India: Key Insights for UPSC CSE

Introduction

The Ministry of Statistics and Programme Implementation (MoSPI) has launched an important initiative — the first-ever Forward-Looking Survey on Private Sector Capex Investment Intentions. In India’s quest to become a developed economy by mid-century, understanding and tracking private capital expenditure (CAPEX) trends is crucial to assess the nation’s economic health, future readiness, and capacity to sustain long-term growth.


What is Capital Expenditure (CAPEX)?

Capital expenditure (Capex) refers to the investments made by companies in long-term fixed assets such as factories, machinery, infrastructure, and equipment. These assets are essential for expanding production capacity, boosting efficiency, and ensuring economic growth over time. By its nature, CAPEX is different from operational expenses, as it involves the acquisition or upgrading of physical assets that will benefit the business in the long run.


Multiplier Effect of Private Sector Capex

Private sector CAPEX plays a vital role in triggering a multiplier effect throughout the economy. When businesses invest in long-term assets, it results in:

  • Employment Generation: Investments in infrastructure and machinery create jobs in construction, manufacturing, and associated industries.

  • Increased Productivity: Modernized equipment enhances labor productivity and operational efficiency.

  • Consumption and Investment Cycle: Increased production leads to higher income levels, which in turn triggers further consumption and investment.

Private sector CAPEX also acts as a barometer of business confidence, the ease of doing business, and profitability expectations. In India, growth booms have historically been accompanied by spikes in private sector CAPEX, with notable surges seen during the early 2000s.


Challenges Facing Private Sector CAPEX

Despite the historical significance of CAPEX in driving economic growth, there are several challenges that hinder its growth in India. The post-pandemic economic landscape has created volatility in investment sentiments, with private firms appearing reactive to short-term variables rather than committing to long-term investments. Factors influencing private sector CAPEX include:

  • Interest Rates: Fluctuating interest rates can deter investment as companies face higher borrowing costs.

  • Geopolitical Risks: Global tensions, such as the Russia-Ukraine war, increase uncertainty, making businesses cautious about new investments.

  • Global Demand: The slowdown in global demand affects production and capacity expansion plans.


Public vs Private Sector CAPEX Growth

The growth trajectory of public sector versus private sector CAPEX in India has been markedly different. Between FY21 and FY25, public sector CAPEX saw a remarkable surge of 230%, driven by government-led initiatives such as:

  • National Infrastructure Pipeline (NIP)

  • Gati Shakti Master Plan

  • PM Gati Shakti (Logistics and Infrastructure Rationalisation)

In contrast, private sector CAPEX has remained inconsistent and less robust. While the government has ramped up public investments to bridge infrastructure gaps, the lack of sustained private investment raises concerns about the sustainability of this growth model. While public sector investments can create foundational infrastructure, long-term economic growth requires private sector innovation, risk-taking, and investments that cannot be fully substituted by the public sector.


Survey on Private Sector CAPEX Intentions: Strategic Relevance

The Forward-Looking Survey on Private Sector CAPEX Investment holds significant value beyond just the data it collects. By providing insights into the investment plans of private firms, this survey helps:

  1. Predictive Policy Design: The insights gathered from the survey can help the Reserve Bank of India (RBI) and the Ministry of Finance make informed decisions about interest rates, liquidity management, and credit flow to boost economic growth.

  2. Fiscal Planning: The survey enables the alignment of public investments with private sector trends, avoiding redundancy and inefficiencies.

  3. Sectoral Mapping: Disaggregated data from the survey can serve as an early warning tool, helping policymakers identify sectors at risk of overheating or experiencing a slowdown.

  4. Reducing Information Asymmetry: Corporates and investors can access data that offers valuable insights into industry trends, enabling better benchmarking and strategic planning.


Structural Constraints Hindering Private Sector CAPEX

Several structural issues are inhibiting the growth of private sector CAPEX in India:

  • Debt Overhang: Many companies are still recovering from the debt burdens of the 2010s credit cycle. These firms remain hesitant to take on more debt for new investments.

  • Sub-optimal Capacity Utilization: Industry associations have pointed out that many firms are operating below optimal capacity, with industrial capacity utilization often remaining below 75%. This underutilization hampers the incentive to invest in new fixed assets.

  • Policy Uncertainty: Delays in regulatory approvals, environmental clearances, and infrastructure projects due to unclear timelines discourage long-term investment.

  • Global Instability: The supply chain disruptions, rising interest rates in developed economies, and ongoing geopolitical tensions (e.g., China’s economic slowdown) contribute to external investment hesitancy.


The Way Forward: Bridging the Gap

To catalyze private sector CAPEX and ensure sustainable economic growth, India must address several key areas:

  1. Annualise the Survey: The MoSPI should make the survey a regular feature, much like the Index of Industrial Production (IIP) or the Consumer Price Index (CPI), to provide continuous monitoring of investment intentions.

  2. Leverage Technology: Secure digital platforms can be used for corporate reporting to reduce participation barriers and enhance data accuracy.

  3. Enhance Data Disaggregation: The survey should publish sector-specific, regional, and firm-size-based data to provide more granular insights for better decision-making.

  4. Policy Feedback Loop: The results of the survey should be incorporated into budgetary design, policy reforms (like the Production Linked Incentive - PLI), and green investment policies to stimulate the necessary investment in future growth areas.

  5. Building Institutional Trust: To improve response rates and data quality, the government should develop robust data anonymization protocols and enhance corporate outreach.


Conclusion

India's goal of becoming a $5 trillion economy and a developed nation is contingent on the revival of private sector investment. By fostering an environment conducive to long-term CAPEX growth, India can ensure its readiness for the challenges of a globalized economy. The role of private sector CAPEX will be crucial in shaping the resilience and inclusiveness of India’s economic growth model.


UPSC CSE Practice Questions

Multiple-Choice Questions (MCQs)

  1. What is the primary role of private sector capital expenditure (CAPEX) in an economy?

    • A) Generating short-term profits

    • B) Enhancing labor productivity and production capacity

    • C) Reducing government debt

    • D) Increasing unemployment

    Answer: B) Enhancing labor productivity and production capacity

  2. Which of the following is a key challenge facing private sector CAPEX in India?

    • A) Over-optimism about future growth

    • B) Low-interest rates in the market

    • C) Global geopolitical risks and uncertainty

    • D) Excessive public sector investments

    Answer: C) Global geopolitical risks and uncertainty

  3. What is the purpose of the Forward-Looking Survey on Private Sector CAPEX Investment initiated by MoSPI?

    • A) To forecast government investment trends

    • B) To track the future intentions of private sector investments

    • C) To monitor global capital flow into India

    • D) To create new policies for public investments

    Answer: B) To track the future intentions of private sector investments


Mains Question

Despite the surge in public sector capital expenditure, private sector CAPEX continues to lag behind. Analyze the factors contributing to this asymmetry and assess the effectiveness of the government’s initiatives in bridging the investment gap.

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Private Member’s Bills in India: Explained

Private Member’s Bills in India: Explained

🔰 Introduction

In Indian parliamentary democracy, legislative power doesn't belong solely to the executive. Private Member’s Bills (PMBs) allow non-minister Members of Parliament (MPs) to introduce their own legislation, reflecting the participatory nature of our democracy. Inspired by the Westminster model, PMBs promote inclusive governance and provide a platform for alternative voices.

📌 What is a Private Member’s Bill?

A Private Member’s Bill is introduced by an MP who is not a minister. As per Article 107 and 108 of the Indian Constitution, MPs can introduce Bills subject to the Rules of Procedure. Typically introduced on Fridays, PMBs rarely become law but play a critical role in democratic discourse.

🗳️ Importance of Private Member’s Bills

  • Legislative Diversity: PMBs often address neglected issues like LGBTQ+ rights, digital safety, and gig economy workers.
  • Bottom-Up Law-Making: MPs bring constituency and future-facing concerns without executive interference.
  • Checks and Balances: PMBs ensure Parliament retains its legislative primacy and isn't merely an extension of the executive.

📊 Trends and Data

17th Lok Sabha (2019–2024)

  • 729 PMBs introduced in Lok Sabha; 705 in Rajya Sabha
  • Only 2 Lok Sabha and 14 Rajya Sabha Bills discussed

18th Lok Sabha (as of 2024)

  • 20 MPs introduced PMBs; 64 Bills introduced
  • No Bill discussed due to adjournments, debates, and disruptions

These stats show the institutional neglect of Private Member’s Bills.

⚖️ Landmark Examples

  • Right to Disconnect Bill (2019): Though not passed, it sparked a national debate on work-life balance.
  • Rights of Transgender Persons Bill (2014): Passed in Rajya Sabha and influenced the 2019 law.
  • Healthcare for Senior Citizens Bill: Showed PMBs can be used by ruling party MPs too.

🛑 Challenges Faced by Private Member’s Bills

  • Anti-Defection Law (Tenth Schedule): Prevents MPs from freely legislating independently.
  • Executive Control: Government business dominates parliamentary time.
  • Lack of Support: MPs lack research and legal help to draft quality PMBs.
  • Minimal Visibility: Media and electoral systems don't incentivize PMBs.

🌍 Global Best Practices

  • UK: Ten-Minute Rule allows brief PMB introductions with debate flexibility.
  • Canada & New Zealand: Ballot systems ensure fair PMB scheduling and staff support for MPs.

Lesson: Procedural innovations can empower Private Members without disrupting government priorities.

🔄 Suggested Reforms

  • Protect Fridays: Reserve and enforce PMB debates except in emergencies.
  • Standing Committee: Prioritize impactful PMBs for discussion and debate.
  • Extend Hours: Slight extension in working hours to accommodate PMBs.
  • Drafting Support: Offer legal and research assistance to MPs.
  • Promote Autonomy: Encourage MPs to be legislative entrepreneurs.

🧩 Why PMBs Matter for the Future

With future delimitation possibly increasing MPs beyond 900, Parliament must evolve. PMBs will be vital in:

  • Voicing regional diversity
  • Promoting innovative policy
  • Deepening deliberative democracy

Vice President Jagdeep Dhankhar rightly called PMBs a "gold mine" of democratic creativity. It's time we mined it earnestly.

📚 UPSC CSE Prelims MCQs

  1. What is a Private Member’s Bill?
    A. A Bill introduced by the President
    B. A Bill introduced by a Cabinet Minister
    C. A Bill introduced by a Member of Parliament who is not a minister
    D. A Bill passed by Rajya Sabha only
  2. Which of the following Bills was introduced as a Private Member’s Bill?
    A. Right to Education Bill
    B. Goods and Services Tax Bill
    C. Right to Disconnect Bill
    D. National Food Security Bill
  3. When are PMBs typically introduced in Parliament?
    A. Monday
    B. Wednesday
    C. Friday
    D. Saturday
  4. The Anti-Defection Law is part of which Constitutional Schedule?
    A. Fifth
    B. Eighth
    C. Tenth
    D. Twelfth
  5. Which country uses the Ten-Minute Rule for PMBs?
    A. India
    B. United Kingdom
    C. New Zealand
    D. Germany

📝 UPSC Mains Practice Question

Q. Despite their limited legislative success, Private Member’s Bills play a vital role in deepening India’s parliamentary democracy. Discuss. (250 Words).

Also Read:

v

India & Globalisation: Strategy in a Fragmented World

India & Globalisation: Strategy in a Fragmented World

🌐 Introduction: Globalisation and the Indian Economy

Globalisation, marked by the seamless flow of goods, services, capital, and technology across borders, has profoundly shaped India’s economic trajectory. Following the 1991 liberalisation reforms, India transitioned from an inward-looking economy to a globally integrated marketplace.

However, a new world order is emerging—marked by de-globalisation, protectionism, and supply chain nationalism. This necessitates a reassessment of India’s role and readiness in the changing paradigm.

📈 India’s Economic Transformation in the Globalised Era

1. GDP Growth Acceleration

  • India moved from the “Hindu rate of growth” (~3.5%) to an average of 6.5% post-1991.
  • Per capita income surged from $320 (1991) to over $2,500 (2024).

2. Service-Led Growth Model

  • India became a global hub for IT, BPO, and KPO services.
  • Cities like Bengaluru and Hyderabad flourished as global innovation centers.

3. Remittance Economy

  • India receives over $100 billion annually in remittances.
  • This supports the current account balance and rural economy.

4. Foreign Investment Inflows

  • Liberalisation attracted massive FDI and FPI inflows.
  • Startup India and unicorn growth driven by global capital.

🚨 Emerging Global Headwinds

1. Slowing Global Trade

IMF projects 1.7% global trade growth in 2025, far below pre-pandemic trends.

2. Rise of Protectionism

  • US tariff rates are now at a century-high of 28%.
  • Buy American” and retaliatory trade measures are rising.

3. Geoeconomic Fragmentation

Global economy is splintering into US-centric, China-centric, and EU-centric blocs. Strategic technologies like AI and semiconductors are being weaponized.

4. Declining Role of Multilateral Institutions

WTO, IMF, and World Bank are losing influence as countries favor bilateral FTAs and regional pacts.

⚠️ Strategic Risks for India

  • 📉 GDP Impact: Export-reliant sectors may slow down.
  • 💻 IT Threat: Automation and nearshoring reduce India’s cost edge.
  • 📊 Capital Flight: Risk-averse investors shifting to developed markets.
  • 🌍 Geopolitical Tensions: Border and West Asia conflicts threaten trade flow.

🛡️ Macroeconomic Strengths: India’s Buffers

  • Inflation: Under control at 3.3%.
  • 💰 Forex Reserves: Over $686 billion.
  • 📉 Rupee Recovery: From ₹88/USD to ₹85.4/USD.

🛤️ India’s Strategic Way Forward

1. Competitiveness Reforms

  • Improve Ease of Doing Business.
  • Speed up land and environment clearances.
  • Decriminalise minor economic offences.

2. Atmanirbhar Bharat with Global Synergy

  • Focus on semiconductors, defence, pharmaceuticals.
  • Scale up green hydrogen and solar exports.

3. Export Diversification

  • Move into clean tech, defence, and precision pharma.
  • Sign strategic FTAs with EU, UK, EFTA.

4. South-South and Indo-Pacific Cooperation

  • Leverage BIMSTEC, IORA, IPEF for regional influence.

5. Digital Public Infrastructure Diplomacy

  • Promote UPI, Aadhaar, DigiLocker, CoWIN as global digital commons.

🧭 Conclusion

India must not retreat from globalisation but adapt smartly. The focus must shift to building resilient supply chains, enhancing innovation, and leveraging its digital strength.

As the world moves from multilateralism to fragmentation, India has the opportunity to shape a new, inclusive globalisation paradigm.


📘 UPSC CSE MCQs – Practice Time!

  1. What was the average GDP growth post-1991 reforms?
    a) 3.5% b) 4.5% c) 6.5% d) 8.5%
    ✅ Answer: c) 6.5%
  2. India’s major export sector since liberalisation is:
    a) Agriculture b) Manufacturing c) Services d) Real Estate
    ✅ Answer: c) Services
  3. Which nation has the highest tariff rates (2024)?
    a) China b) Germany c) USA d) Japan
    ✅ Answer: c) USA
  4. Which initiative pushes self-reliant production in India?
    a) Digital India b) Skill India c) Atmanirbhar Bharat d) Make in India
    ✅ Answer: c) Atmanirbhar Bharat
  5. Which institution is weakened due to rising bilateralism?
    a) IMF b) WTO c) ADB d) BRICS Bank
    ✅ Answer: b) WTO

✍️ UPSC Mains Practice Question (GS-3)

“The golden era of globalisation is giving way to geoeconomic fragmentation.” In this context, critically examine the implications for India’s economic growth strategy.
(250 words)

Also Read:

Thursday, May 1, 2025

WHO Pandemic Treaty 2024: Global Health Guide

WHO Pandemic Treaty 2024: Global Health Guide

The COVID-19 crisis revealed critical gaps in global health governance, exposing issues like lack of transparency, vaccine nationalism, and unequal access to essential medical resources. In response, over 20 nations and international bodies proposed a global treaty in March 2021 to enhance preparedness for future pandemics. By December 2021, the World Health Organization (WHO) established the Intergovernmental Negotiating Body (INB) to draft this landmark international health framework, now known as the WHO Pandemic Treaty 2024. This treaty aims to foster global cooperation, equity, and resilience in addressing future health crises.


Core Features of the WHO Pandemic Treaty 2024

Adopting the One Health Approach

The treaty embraces the One Health framework, recognizing the intricate link between human, animal, and environmental health. It mandates robust surveillance of zoonotic diseases—pathogens that jump from animals to humans—and promotes strategies to prevent such transmissions. This holistic approach is crucial for early detection and mitigation of potential pandemics.

Pathogen and Data Sharing Mechanisms

A key provision encourages countries to share pathogen samples and genetic sequencing data swiftly. In return, nations contributing data gain priority access to resulting diagnostics and vaccines. This mechanism aims to foster transparency and collaboration in global health research.

Ensuring Equity in Access

The treaty addresses past inequities in vaccine and treatment distribution, particularly for low- and middle-income countries (LMICs). By tying data sharing to fair benefit-sharing, it ensures that the Global South isn’t sidelined during health emergencies, a major concern during the COVID-19 pandemic.

Prioritizing Public Interest Over Intellectual Property

The treaty advocates for equitable access to publicly funded research outcomes. It seeks to reform intellectual property rights (IPR) regimes that previously delayed global health responses, ensuring that life-saving innovations are accessible to all.

Limitations of the Treaty

Despite its ambitions, the treaty lacks a strong enforcement mechanism, relying on voluntary compliance. The United States, although involved in early discussions, is absent from the final draft. Additionally, the treaty’s scope is narrower than initially proposed, limiting its immediate impact.


Geopolitical and Strategic Implications of the Treaty

Reviving Multilateral Cooperation

Ratified by 191 countries, the treaty signals renewed trust in WHO-led global health governance, even without U.S. participation. This collective commitment underscores the importance of multilateralism in tackling global challenges.

Bridging the North-South Divide

The treaty highlights the differing priorities of developed nations (focused on scientific access) and developing ones (emphasizing equity). The resulting compromise reflects the growing influence of the Global South in international negotiations, marking a shift in global health diplomacy.


Scientific and Public Health Benefits

The treaty establishes frameworks for early detection and prevention of emerging diseases. It promotes collaborative research and global disease surveillance networks, ensuring timely responses to health threats. By institutionalizing cross-border pathogen data sharing, it strengthens early warning systems, a critical tool for pandemic preparedness.


Legal and Policy Impacts

The treaty sets non-binding international norms for pandemic readiness, laying the foundation for future legally binding health instruments. It embodies principles of equity, solidarity, and accountability, shaping the evolution of global health law. These norms encourage nations to prioritize collective well-being over individual interests.


Challenges in Implementing the WHO Pandemic Treaty

Lack of Enforcement Mechanisms

Without penalties for non-compliance, the treaty’s effectiveness is uncertain. Voluntary adherence may lead to inconsistent implementation across countries.

Resistance from Pharmaceutical and IPR Lobbies

Pharmaceutical companies and intellectual property advocates may resist reforms that prioritize public access over profits, posing a significant hurdle.

Domestic Ratification Barriers

In countries like the U.S., where international treaties require legislative approval, domestic politics could delay or prevent ratification, undermining global efforts.


Strategies for Effective Implementation

Establish Accountability Frameworks

Introduce periodic reviews, peer assessments, and public reporting to ensure transparency and encourage compliance among member states.

Create a Global Pandemic Equity Fund

Funded by developed nations, pharmaceutical taxes, or sovereign contributions, this fund could support equitable access to vaccines and treatments for LMICs.

Promote Regional Pharma Manufacturing

Encourage the development of pharmaceutical manufacturing hubs in the Global South to reduce dependency on imports and enhance self-sufficiency in health resources.

Raise Community Awareness

Educate communities about zoonotic disease risks and encourage grassroots participation in prevention efforts, fostering a proactive approach to public health.

Engage Major Powers

Actively involve the United States and other non-aligned nations to secure universal ratification and implementation, ensuring the treaty’s global impact.

Leverage International Forums

Use platforms like the G20, G7, BRICS, and Global South Summits to build political momentum and drive collective action on pandemic preparedness.

Strengthen WHO’s Emergency Fund

Enhance the WHO Contingency Fund for Emergencies (CFE) to provide financial support for treaty implementation, ensuring rapid responses to health crises.


Conclusion

The WHO Pandemic Treaty 2024 represents a groundbreaking step toward a unified global framework for pandemic preparedness and response. By emphasizing the One Health approach, equitable access, and data sharing, it draws critical lessons from the COVID-19 crisis. However, its success hinges on political commitment, international solidarity, and future revisions to strengthen enforcement. With concerted efforts, this treaty can pave the way for a more resilient and cooperative global health system, ready to face future challenges.


Multiple Choice Questions (MCQs) for UPSC CSE

  1. What is the primary goal of the WHO Pandemic Treaty 2024?
    • A) To promote vaccine nationalism
    • B) To enhance global pandemic preparedness and equity
    • C) To restrict pathogen data sharing
    • D) To prioritize intellectual property rights
    • Answer: B
  2. What does the One Health approach in the treaty emphasize?
    • A) Focus solely on human health
    • B) Interconnectedness of human, animal, and environmental health
    • C) Promotion of pharmaceutical profits
    • D) Limiting global health cooperation
    • Answer: B
  3. How does the treaty address inequities in vaccine distribution?
    • A) By ignoring the Global South’s concerns
    • B) By linking data sharing with fair benefit-sharing mechanisms
    • C) By restricting access to diagnostics
    • D) By excluding LMICs from negotiations
    • Answer: B
  4. What is a major limitation of the WHO Pandemic Treaty 2024?
    • A) It excludes the Global South
    • B) It lacks a robust enforcement mechanism
    • C) It focuses only on developed nations
    • D) It bans pathogen data sharing
    • Answer: B
  5. What strategy can reduce dependency on imported health resources?
    • A) Establishing regional pharma manufacturing hubs
    • B) Limiting community awareness programs
    • C) Reducing WHO funding
    • D) Ignoring zoonotic disease risks
    • Answer: A

Mains Question for UPSC CSE

"Evaluate the significance of the WHO Pandemic Treaty 2024 in addressing global health inequities and fostering international cooperation. Discuss the challenges in its implementation and suggest measures to ensure its effectiveness in future pandemic preparedness." (250 Words).

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Gold Price Surge 2025: Impact on India’s Economy

 

Gold Price Surge 2025: Impact on India’s Economy

Gold has recently soared to unprecedented heights, surpassing ₹1 lakh per 10 grams in global markets before a slight dip. This dramatic increase stems from a mix of worldwide economic instability, geopolitical tensions, and rising inflation rates, cementing gold’s status as a safe-haven investment. As the second-largest gold consumer globally, India faces both opportunities and significant challenges from this surge, making it a critical topic for economic analysis and policy-making.


Economic Factors Driving the Gold Surge

Global Monetary Uncertainty

The gold price hike is fueled by concerns over U.S. tariff conflicts, potential threats to the Federal Reserve’s independence, and a declining U.S. dollar value. These factors undermine confidence in traditional currencies, pushing investors toward gold. Unlike stocks or bonds, gold offers no yield, yet its appeal grows when interest rates drop or currencies weaken, serving as a shield against inflation and market fluctuations.

Rising Inflation Pressures

With growing fears of imported inflation, especially in emerging economies like India, gold emerges as a dependable store of value. Historical data shows gold prices tend to rise during inflationary periods, reinforcing its reputation as an inflation-resistant asset. This trend is particularly relevant for countries grappling with cost-of-living increases.

Gold’s Role as an Unproductive Asset

Despite its value, gold doesn’t generate income, unlike equities or bonds. India’s heavy reliance on gold imports strains the current account deficit, pressures foreign exchange reserves, and contributes to rupee depreciation. This economic burden highlights the need for strategic management of gold consumption.


Geopolitical Influences on Gold Prices

Global Tensions and Safe-Haven Demand

Ongoing conflicts, such as the Russia-Ukraine war, U.S.-China trade disputes, and the impending U.S. debt ceiling crisis, have heightened global investment risks. Gold’s historical role as a safe haven drives investors to diversify their portfolios, boosting demand and prices.

Central Bank Gold Acquisitions

Nations like China are stockpiling gold to reduce dollar dependency, further elevating prices. This shift signals waning trust in the dollar-dominated financial system, influencing global gold markets.

Environmental Impact of Gold Mining

Rising demand often leads to unsustainable mining practices, harming tribal communities, biodiversity, and ecosystems in regions like the Amazon and Congo Basin. Sustainable mining practices are essential to mitigate these environmental costs.


Gold in the Indian Context

Cultural and Seasonal Significance

In India, gold holds deep cultural importance, symbolizing wealth, prosperity, and security, especially during weddings and festivals. Despite awareness campaigns, rural households continue to hoard gold, driven by tradition and economic uncertainty.

Effects on Consumption and Smuggling

As prices climb, demand from middle- and lower-income groups weakens due to reduced affordability. This may spur smuggling to bypass customs duties, fostering black-market activity and revenue losses for the government.

Budgetary Challenges

High gold prices, amid sluggish economic growth, strain household budgets, curbing discretionary spending. This impacts industries like jewelry and luxury goods, which are vital to India’s economy.


Government Initiatives to Manage Gold Demand

The Indian government has introduced several measures to address the economic challenges posed by gold consumption:

  • Gold Monetization Scheme (2015): This initiative encourages households and temples to deposit idle gold with banks, offering 1–2% annual interest. It aims to formalize gold holdings and reduce hoarding.
  • Sovereign Gold Bonds (SGBs): Issued by the Reserve Bank of India (RBI), SGBs provide a 2.5% annual interest rate and capital gains tax exemptions if held to maturity, promoting investment in financial instruments over physical gold.
  • India International Bullion Exchange (IIBX) at GIFT City: Located in Gujarat, IIBX enables direct participation by jewelers and banks, enhancing price transparency and formal trading.
  • Digital Gold Platforms: Fintech apps are making gold investment accessible, though regulatory oversight is still developing. These platforms aim to reduce physical gold imports and integrate gold into the formal economy.

Together, these efforts seek to minimize gold import dependency, bolster financial markets, and mitigate the economic downsides of hoarding.


Global Best Practices in Gold Management

Countries worldwide offer valuable lessons for India:

  • OECD Due Diligence Guidance: This framework ensures responsible gold sourcing, preventing links to conflict zones or human rights abuses.
  • Switzerland’s Refining Standards: As a leading gold refining hub, Switzerland enforces rigorous audits to trace gold origins, ensuring ethical imports.
  • Dubai Multi Commodities Centre (DMCC): Operating a regulated exchange, DMCC mandates source disclosure to curb illicit gold flows.
  • Shanghai Gold Exchange (SGE) in China: Centralizing trade, SGE promotes price transparency and reduces smuggling, offering a model for market regulation.

Adopting such practices could enhance India’s gold management strategies.


The Path Forward for India

Promoting Financial Literacy

Encouraging a shift to financial instruments like gold bonds and exchange-traded funds (ETFs) can offer investment benefits without the need for physical storage. Public education campaigns can drive this transition.

Effective Import Regulation

Strengthening import duties and improving traceability mechanisms can help control gold inflows, balancing demand with economic stability.

Strengthening Currency and Alternatives

India must bolster the rupee’s value, diversify savings options, and build trust in banking and capital markets to reduce gold reliance. This requires robust economic policies and investor confidence-building measures.


Conclusion

The record-breaking gold prices reflect a complex interplay of global risks, economic psychology, and national policy challenges. For India, harmonizing gold’s cultural significance with macroeconomic stability demands a multifaceted approach. This includes fiscal policies, public awareness initiatives, investment diversification, and regulatory reforms. By leveraging global best practices and domestic innovations, India can navigate this gold surge effectively, ensuring long-term economic resilience.


Multiple Choice Questions (MCQs) for UPSC CSE

  1. What is the primary driver of the recent gold price surge to over ₹1 lakh per 10 grams?
    • A) Increase in gold mining output
    • B) Global economic uncertainty and inflation fears
    • C) Decline in demand for jewelry
    • D) Strengthening of the U.S. dollar
    • Answer: B
  2. How does India’s high gold import affect its economy?
    • A) It reduces the current account deficit
    • B) It pressures foreign exchange reserves and weakens the rupee
    • C) It boosts domestic gold production
    • D) It eliminates the need for financial instruments
    • Answer: B
  3. What is the purpose of the Gold Monetization Scheme launched in 2015?
    • A) To increase gold smuggling
    • B) To mobilize idle gold holdings with interest incentives
    • C) To promote physical gold purchases
    • D) To reduce RBI’s gold reserves
    • Answer: B
  4. Which international practice ensures responsible gold sourcing?
    • A) Shanghai Gold Exchange
    • B) OECD Due Diligence Guidance
    • C) Dubai Multi Commodities Centre
    • D) Swiss Refining Standards
    • Answer: B
  5. How can India reduce its dependence on physical gold?
    • A) By increasing import duties without alternatives
    • B) By promoting gold bonds and ETFs through financial literacy
    • C) By encouraging rural hoarding
    • D) By weakening the rupee value
    • Answer: B

Mains Question for UPSC CSE

"Analyze the socio-economic implications of the recent surge in gold prices on India’s economy, with a focus on its foreign exchange dynamics and household consumption patterns. Propose a comprehensive strategy to address the challenges posed by gold dependency, incorporating global best practices and domestic policy reforms." (250 Words).

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Pahalgam Terror Attack – A Challenge to India's Internal Security

Pahalgam Terror Attack – A Challenge to India's Internal Security

The recent terror attack in Pahalgam, Jammu and Kashmir, left at least 26 civilians dead, reigniting debates on India’s internal security challenges and the urgent need for effective counter-terrorism measures. This brutal act of violence not only shook the nation’s conscience but also marked a turning point in local reactions—Kashmiris themselves called for a bandh, a rare move in over three decades, to protest against terrorism.

Such collective grief, cutting across communities, underscores the importance of national unity, communal harmony in Kashmir, and civil society's resistance against terrorism.


Public and Political Reactions: India Stands United

🇮🇳 Nationwide Outrage and Solidarity

The entire country expressed sorrow and anger over the incident, displaying an unwavering resolve to stand united against terrorism. Citizens organized peace marches and candlelight vigils, reflecting the people’s demand for internal peace and stability.

🏛 All-Party Consensus

An emergency all-party meeting on internal security was convened by the government. Both ruling and opposition leaders set aside political differences to support stronger anti-terror laws, improved border security management, and diplomatic isolation of Pakistan.

🌐 Role of Civil Society

NGOs, students, and spiritual leaders called for restraint and communal harmony, emphasizing that radical ideologies and hate-driven politics have no place in a pluralistic India.


Unfortunate Fallout: Kashmiri Citizens Targeted

While the public response was largely constructive, isolated incidents of harassment against Kashmiri students and traders in various parts of India emerged. Such actions are counterproductive and play into the hands of terror outfits aiming to sow communal discord.

Support for Kashmiri professionals, students, and businesspersons must be a priority to ensure that emotional integration with Kashmir remains strong.


India’s Diplomatic and Strategic Response

💧 Indus Waters Treaty Suspension

India’s decision to suspend parts of the Indus Waters Treaty was a bold move, signaling a strategic shift in using bilateral agreements as diplomatic leverage. It serves as a non-military deterrent to state-sponsored terror.

🚫 Closure of Border Trade Routes

The Wagah-Attari border closure impacted both trade and people-to-people ties, emphasizing India’s zero-tolerance policy toward cross-border terror.

🕊 Downgrading Diplomatic Ties

India also downgraded its diplomatic relationship with Pakistan, recalling senior envoys and tightening visa protocols—reinforcing the policy of strategic isolation of Pakistan at the global level.

📝 Pakistan’s Reaction

Pakistan retaliated by suspending the 1972 Shimla Agreement, exposing its growing desperation on the international stage. However, the move only served to further erode its diplomatic credibility.


Security and Intelligence Failures: A Wake-Up Call

Despite intelligence alerts, the Pahalgam attack was executed successfully, raising concerns over:

  • Coordination gaps among intelligence agencies

  • Operational loopholes in border surveillance

  • Lack of real-time ground intelligence

🔍 Need for Reform

India’s internal security architecture must undergo urgent reforms, including:

  • Real-time intelligence sharing using AI-based surveillance

  • Enhanced community policing in terrorism-prone areas

  • Strengthening the National Investigation Agency (NIA) and other anti-terror cells


Digital Battlefield: Misinformation and Hate Speech

Social media saw a surge of hate speech, jingoism, and fake news post-attack. This unregulated digital narrative poses a significant threat to national cohesion.

📱 What Needs to Be Done

  • Enforce stricter cyber surveillance for national security

  • Introduce social media regulations in India without stifling free speech

  • Penalize digital platforms spreading misinformation


Kashmiris as Victims and Heroes: Countering the False Narrative

A poignant story that emerged from the tragedy was that of Adil Hussain Shah, a local pony ride operator who died trying to save tourists. His act of courage is a stark reminder that Kashmiris themselves are victims of terrorism.

🕊 Breaking the Binary

Such stories must be amplified to counter the false binary of “Kashmir vs India.” The path to peace lies in mainstreaming Kashmiri voices, not sidelining them.


Way Forward: Strategic, Social, and Diplomatic Solutions

📌 Strategic Patience

India must pursue long-term strategic deterrence through international forums like the UN, G20, and FATF to hold Pakistan accountable for harboring terror groups.

🧠 Intelligence Reforms

Investing in technology-led policing, local informant networks, and counter-radicalization programs will enhance grassroots intelligence.

🤝 National Integration

All stakeholders—political leaders, religious scholars, and community heads—must reinforce the message of unity in diversity.

🌐 International Consensus

India should continue to mobilize global opinion against Pakistan’s duplicity by leveraging platforms like the Financial Action Task Force (FATF) and BRICS security forums.


Conclusion

The Pahalgam terror attack is not just a blow to India's internal security, but a test of its democratic resilience and communal harmony. In this battle against terror, India must remain united—not just in grief, but in strategy, empathy, and reform.

Let the nation respond with justice without hate, strength without vengeance, and unity without division.


✅ UPSC CSE Prelims Practice MCQs

1. Which of the following agreements pertains to the sharing of river waters between India and Pakistan?
a) Shimla Agreement
b) Tashkent Agreement
c) Indus Waters Treaty
d) Lahore Declaration
Answer: c)

2. The Financial Action Task Force (FATF) primarily deals with:
a) Environmental crimes
b) Human trafficking
c) Counter-terror financing and money laundering
d) Cybersecurity laws
Answer: c)

3. Which Indian agency is primarily responsible for counter-terror investigations?
a) CBI
b) IB
c) RAW
d) NIA
Answer: d)

4. The Wagah-Attari border is located between:
a) Jammu and Nepal
b) Rajasthan and Pakistan
c) Punjab and Pakistan
d) Gujarat and Afghanistan
Answer: c)

5. What is the primary concern associated with unregulated social media in conflict zones?
a) Low data speed
b) Communal polarization
c) E-commerce disruption
d) Poor user interface
Answer: b)

6. Who among the following sacrificed his life in the Pahalgam attack while saving tourists?
a) Imran Nazir
b) Adil Hussain Shah
c) Tariq Ahmed Dar
d) Mehboob Khan
Answer: b)

7. The Shimla Agreement was signed in the aftermath of which war?
a) 1948
b) 1962
c) 1965
d) 1971
Answer: d)

8. Which of the following is NOT a diplomatic measure?
a) Visa restrictions
b) Treaty suspensions
c) Military strikes
d) Downgrading embassy ties
Answer: c)

9. Strategic patience as a policy implies:
a) Immediate retaliation
b) Long-term international isolation of a threat nation
c) Ignoring hostile actions
d) Media diplomacy
Answer: b)

10. Community policing primarily involves:
a) Army patrolling
b) Civilian militias
c) Law enforcement working with local populations
d) Private security agencies
Answer: c)


📝 UPSC CSE Mains Practice Question (250 words)

Q. India’s diplomatic response to cross-border terrorism has included measures such as suspending treaties and downgrading diplomatic ties. Critically evaluate the effectiveness and risks of such steps, with reference to the suspension of the Indus Waters Treaty.

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