Current Affairs

Govt. to expand definition of ‘political risk’ under export guarantee scheme

Context: The Foreign Trade Policy (FTP) of 2023 allows exporters to get insurance coverage for losses caused by sudden trade barriers, and addresses grievances of exporters through a ministerial panel. 

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The new Foreign Trade Policy (FTP) for India in 2023 intends to broaden the scope of "political risk" covered under the export guarantee scheme, enabling exporters to receive insurance coverage for losses incurred due to the sudden imposition of non-tariff barriers by importing nations after the shipment has left India.

The policy also proposes the establishment of a ministerial panel to address the concerns of small exporters and an inter-ministerial committee to investigate trade-related grievances of micro, small, and medium enterprises (MSMEs).

This is expected to provide greater support to Indian exporters and improve their ability to navigate challenges posed by trade barriers.

Export Credit Guarantee Scheme

  1. It is a scheme to provide enhanced export credit risk insurance cover to the extent of 90% to support small exporters under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIB- WTPC & PS).  
  2. It is expected to benefit a number of small-scale exporters availing of export credit with banks which hold the ECGC WT-ECIB covers. 
  3. This will also enable the small exporters to explore new markets/new buyers and diversify their existing product portfolio competitively.
  4. Enhanced Cover to Banks 
    • The enhanced cover shall be available for manufacturer- exporters availing fund-based export credit working capital limit up to ₹ 20 crore (i.e., total Packaging Credit and Post Shipment limit per exporter/exporter-group) excluding the Gems,  Jewellery & Diamond sector and merchant exporters/traders.
    • This new scheme will enable the banks holding ECGC’s WT-ECIB cover to explore the possibility of reducing interest rates further so that all the stakeholders are benefitted. 

Export Credit Guarantee Corporation (ECGC)

  • Established in 1957 and fully owned by the government of India, the Export Credit Guarantee Corporation of India Ltd. (ECGC) was created to boost exports from the country by offering credit risk insurance and associated services for exports. 
  • ECGC manages the National Export Insurance Account (NEIA) Trust, which caters to project exports of national and strategic importance. 
  • ECGC provides (i) a range of insurance covers to Indian exporters against the risk of non-realization of export proceeds due to commercial or political risks (ii) different types of credit insurance covers to banks and other financial institutions to enable them to extend credit facilities to exporters and (iii) Export Factoring facility for MSME sector which is a package of financial products consisting of working capital financing, credit risk protection, maintenance of sales ledger and collection of export receivables from the buyer located in overseas country.

Why Bedaquiline patent decision could hold key to 2025 TB goal

Context: The Indian Patent Office has recently denied Johnson & Johnson's (J&J) request to extend their patent on Bedaquiline, a tablet-form drug used for treating drug-resistant tuberculosis (TB), beyond July 2023. This decision paves the way for other drug manufacturers to produce generic versions of Bedaquiline, which is anticipated to be more economical and aid India in achieving its target of eradicating TB by 2025.

What is drug-resistant TB?

  • Drug-resistant tuberculosis (TB) occurs when the bacteria causing TB become resistant to the medications used to treat it. There are different types of drug-resistant TB, including multi-drug-resistant (MDR) TB and extensively-drug-resistant (XDR) TB, which are much harder to treat than regular TB.
  • MDR TB is resistant to at least two of the most commonly used drugs for TB treatment, while XDR TB is resistant to even more medications, making it much harder to treat. The incidence of drug-resistant TB is a major obstacle to eliminating TB in India and globally, and efforts are needed to strengthen TB prevention and control measures, increase awareness, and improve access to effective treatments.
  • Drug-resistant tuberculosis (TB) is a serious global health challenge that occurs when the bacteria causing TB become resistant to the medications used to treat it. 
  • India has a high burden of drug-resistant TB, including MDR TB and XDR TB. According to the World Health Organization (WHO), India accounted for around a quarter of the world's cases of MDR TB and XDR TB in 2019.

How is drug-resistant TB treated?

  • Drug-resistant TB is a form of TB caused by bacteria that have become resistant to the medications used to treat it. Treatment for drug-resistant TB is more complex and longer than for regular TB.
  • TB is typically treated by following a strict schedule of drug doses and frequencies prescribed by a physician. Failure to adhere to this schedule can lead to drug-resistant TB. However, deviations from the schedule can occur due to drug side effects that decrease quality of life or inadequate access to necessary drugs.
  • One of the primary drugs used to treat pulmonary MDR TB is Bedaquiline. In 2018, the World Health Organization recommended an oral regimen that included Bedaquiline, replacing two injectable drugs for MDR TB.
  • Although Bedaquiline had not completed phase III trials, the recommendation was based on smaller trials, outcomes in TB elimination programs, and the difficulty of treating MDR TB. Patients receiving the drug were closely monitored.

How effective is Bedaquiline in treating drug-resistant TB?

  • Bedaquiline is typically prescribed for a period of six months, with a higher dose in the first two weeks followed by a lower dosage for 22 weeks. This is shorter than the treatment routines for pulmonary MDR TB, which can last between 9 to 24 months.
  • Results from a phase II clinical trial showed that Bedaquiline was effective in converting a patient's sputum culture from positive to negative, with durable results observed at 24 weeks and a high likelihood of response at 120 weeks.
  • Compared to other second-line treatment options that are injected and can have severe side effects like permanent hearing loss, Bedaquiline is available in tablet form and is less harmful. However, it has potential side effects of its own, such as toxicity to the heart and liver. As such, it is recommended only when other treatment options for MDR TB have failed.
  • In India, Bedaquiline use is governed by guidelines under the Programmatic Management of MDR TB as part of the National TB Elimination Program.
  • However, the WHO's decision to recommend Bedaquiline before it completed its phase III trials raised ethical questions about the safety threshold for pharmaceutical companies producing drugs for desperate patients and the use of insufficiently tested drugs on compassionate grounds.

Why was the patent application for Bedaquiline production rejected?

  • Johnson & Johnson (J&J) filed a patent application for the production of a fumarate salt compound to create Bedaquiline tablets, but it was opposed by two groups:
    • 1) Network of Maharashtra people living with HIV and 
    • 2) TB survivors Nandita Venkatesan and Phumeza Tisile, supported by Médecins Sans Frontières.
  • The groups argued that J&J's method to produce a "solid pharmaceutical composition" of Bedaquiline was obvious and didn't require an inventive step. The Indian Patent Act 1970 requires an invention to be "not obvious to a person skilled in the art" to be granted a patent.
  • In addition, they claimed that J&J's application lacked information about foreign patent applications, their specifications, and priority dates, among other details required under Section 8 of the Act.
  • They also argued that the current application drew heavily from a previous patent, WO 2004/011436, which discussed a similar compound on which Bedaquiline is based, and whose priority date (2002) preceded the new application.
  • The Patent Office rejected the application on several grounds, including Sections 3d and 3e of the Act, which state that a "new form of a known substance which does not result in the enhancement of the known efficacy of that substance" and "a substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof" are not patentable."

Why is the rejection notable?

The rejection of J&J’s patent application for the production of the fumarate salt of Bedaquiline tablets is notable for several reasons. India has the world's largest population of people living with drug-resistant TB, and J&J's patent enabled them to charge $400 (Rs 33,000) for the six-month treatment, in addition to the cost of other drugs. With the rejection of the patent, the cost of Bedaquiline is expected to drop by up to 80%.

The Indian government has directly procured and distributed the drug through state-level TB programs, and since 2016, India has also received free donations of Bedaquiline from J&J and the US Agency for International Development.

The rejection of the patent application is also significant as it addresses the issue of 'evergreening,' where patent owners continuously extend their rights and apply multiple patents for the same product.

The rejection of the patent application was due to various grounds, including the fact that J&J's method for producing the solid pharmaceutical composition of Bedaquiline was deemed "obvious" and did not require an "inventive step."

In addition, the application did not provide the necessary information about foreign patent applications and their specifications, and it was found to be significantly based on a previous patent, WO 2004/011436. Furthermore, the application violated Indian law, which disallows "evergreening." J&J's current patent is set to expire in July 2023.

Govt. vows swifter nod for exporters

Context: Ministry of Commerce has unveiled a New Trade Policy, 2023.

About Foreign Trade Policy (FTP):

  • It is a set of rules and procedures for facilitating imports into, augmenting exports from India and creating favourable balance of payment position. 
  • Department of Commerce looks in formulation and monitoring of FTP.
  • Powers to formulate a FTP policy or EXIM policy lies under the Foreign Trade Development and Regulation Act, 1992.
  • Director General of Foreign Trade implements FTP

Foreign Trade Policy - 2015-2020:

Goals: 

  • Increase India’s exports of merchandise and services to USD 900 billion by 2019-20
  • Raise India’s share in world exports from 2% to 3.5%.

Objectives:

  1. Stable and sustainable policy environment 
  2. Export Promotion Mission for India; 
  3. Diversification of India’s export basket 
  4. Achieve global competitiveness 
  5. Better integration with major regions and countries, 
  6. Provide boost to Make in India initiative; 
  7. To rationalize imports 
  8.  Reduce the trade imbalance.

Features:

  • FTP 2015-20 introduces two new schemes, namely ‘Merchandise Exports from India Scheme (MEIS)’ for export of specified goods to specified markets and ‘Services Exports from India Scheme (SEIS)’ for increasing exports of notified services.
  • Duty credit scrips issued under MEIS and SEIS and the goods imported against these scrips are fully transferable.
  • For grant of rewards under MEIS, the countries have been categorized into 3 Groups, whereas the rates of rewards under MEIS range from 2 per cent to 5 per cent. Under SEIS the selected Services would be rewarded at the rates of 3 per cent and 5 per cent.
  • Measures have been adopted to nudge procurement of capital goods from indigenous manufacturers under the EPCG scheme by reducing specific export obligation to 75per cent of the normal export obligation.
  • Measures have been taken to give a boost to exports of defense and hi-tech items.
  • E-Commerce exports of handloom products, books/periodicals, leather footwear, toys and customised fashion garments through courier or foreign post office would also be able to get benefit of MEIS (for values up to INR 25,000).
  • Manufacturers, who are also status holders, will now be able to self-certify their manufactured goods in phases, as originating from India with a view to qualifying for preferential treatment under various forms of bilateral and regional trade agreements. This ‘Approved Exporter System’ will help manufacturer exporters considerably in getting fast access to international markets.
  • A number of steps have been taken for encouraging manufacturing and exports under 100 per cent EOU/EHTP/STPI/BTP Schemes. The steps include a fast track clearance facility for these units, permitting them to share infrastructure facilities, permitting inter unit transfer of goods and services, permitting them to set up warehouses near the port of export and to use duty free equipment for training purposes.
  • 108 MSME clusters have been identified for focused interventions to boost exports. Accordingly, ‘Niryat Bandhu Scheme’ has been galvanised and repositioned to achieve the objectives of ‘Skill India’.
  • Trade facilitation and enhancing the ease of doing business are the other major focus areas in this new FTP. One of the major objective of new FTP is to move towards paperless working in 24x7 environment.

Why do we need a new Trade policy?

  • Policy of 2015 is old now and has been on extension for two years.
  • New sectors are making their mark: E-commerce, IT, mobile apps etc.
  • India’s export growth has not been very promising (missed last targets)
  • India’s trade deficit is ever widening.
  • Poor diversification of exports with respect to destinations and composition.
  • Poor performance of Free Trade agreements signed with partner nations.
  • New policies and schemes are not in line with Policy of 2015: Development of Enterprise and Service Hubs (DESH) Bill, One District One Product, etc.
  • Previous policy missed on the skill development with respect to external sector. 
  • India needs to take advantage of Transition goods and network goods. 

New Trade Policy 2023:

Target: to take India's exports to 2 trillion dollars by 2030. 

4 pillars of FTP 2023: Incentive to Remission, Export promotion through collaboration, Ease of doing business and Emerging Areas.

Provisions:

1. Process Re-Engineering and Automation: The policy emphasizes export promotion and development, moving away from an incentive regime to a regime which is facilitating, based on technology interface and principles of collaboration.

2. Towns of Export Excellence: Four new towns, namely Faridabad, Mirzapur, Moradabad, and Varanasi, have been designated as Towns of Export Excellence (TEE) in addition to the existing 39 towns. The TEEs will have priority access to export promotion funds under the Market Access Initiative scheme and will be able to avail Common Service Provider (CSP) benefits for export fulfilment under the EPCG Scheme. This addition is expected to boost the exports of handlooms, handicrafts, and carpets.

3. Recognition of Exporters: Exporter firms recognized with 'status' based on export performance will now be partners in capacity-building initiatives on a best-endeavor basis. Similar to the 'each one teach one' initiative, 2-star and above status holders would be encouraged to provide trade-related training based on a model curriculum to interested individuals.

4. Promoting export from the districts: The FTP aims at building partnerships with State governments and taking forward the Districts as Export Hubs (DEH) initiative to promote exports at the district level and accelerate the development of grassroots trade ecosystem. Efforts to identify export worthy products & services and resolve concerns at the district level will be made through an institutional mechanism – State Export Promotion Committee and District Export Promotion Committee at the State and District level, respectively.

5. Streamlining SCOMET Policy: A robust export control system in India would provide access of dual-use High end goods and technologies to Indian exporters while facilitating exports of controlled items/technologies under SCOMET from India.

6. Facilitating E-Commerce Exports:  FTP 2023 outlines the intent and roadmap for establishing e-commerce hubs and related elements such as payment reconciliation, book-keeping, returns policy, and export entitlements. As a starting point, the consignment wise cap on E-Commerce exports through courier has been raised from ₹5Lakh to ₹10 Lakh in the FTP 2023. Depending on the feedback of exporters, this cap will be further revised or eventually removed. Extensive outreach and training activities will be taken up to build capacity of artisans, weavers, garment manufacturers, gems and jewellery designers to onboard them on E-Commerce platforms and facilitate higher exports.

7. Facilitation under Advance authorization Scheme: Special Advance Authorisation Scheme extended to export of Apparel and Clothing sector under para 4.07 of HBP on self-declaration basis to facilitate prompt execution of export orders – Norms would be fixed within fixed timeframe. Benefits of Self-Ratification Scheme for fixation of Input-Output Norms extended to 2 star and above status holders in addition to Authorised Economic Operators at present.

8. Merchanting trade: FTP 2023 has introduced provisions for merchanting trade. Merchanting trade of restricted and prohibited items under export policy would now be possible. Merchanting trade involves shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary.

9. Amnesty Scheme: government is strongly committed to reducing litigation and fostering trust-based relationships to help alleviate the issues faced by exporters. In line with "Vivaad se Vishwaas" initiative, which sought to settle tax disputes amicably, the government is introducing a special one-time Amnesty Scheme under the FTP 2023 to address default on Export Obligations. All pending cases of the default in meeting Export Obligation (EO) of authorizations mentioned can be regularized on payment of all customs duties that were exempted in proportion to unfulfilled Export Obligation.

To watch in-depth analysis on New Foreign Trade Policy 2023, watch the Daily New Simplified dated 01, April 2023. Follow the link given below:

ISRO’s Reusable Launch Vehicle landing test successful

Context: Indian Space Research Organisation (ISRO) has successfully conducted landing experiment of Reusable Launch Vehicle – Technology Demonstration (RLV - TD) programme.

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For the first time in the world, a winged body has been carried to an altitude of 4.5 km by a helicopter (Chinook) and released for carrying out an autonomous landing on a runway. The release of the RLV was autonomous, as it performed approach and landing manoeuvres using Integrated Navigation, Guidance and Control System and completed the landing on the airstrip.

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RLV – TD

ISRO's RLV-TD is a technology demonstrator for a fully reusable launch vehicle, featuring hypersonic flight, autonomous landing, and powered cruise flight technologies. It has a winged aircraft-like configuration with a fuselage, double delta wings, twin vertical tails, and active control surfaces. It was boosted to Mach no: 5 by a solid booster and will be scaled up to become India's first stage of a reusable two-stage orbital launch vehicle. 

Objectives of RLV – TD

  1. Hypersonic aero thermodynamic characterisation of wing body
  2. Evaluation of autonomous Navigation, Guidance and Control (NGC) schemes 
  3. Integrated flight management 
  4. Thermal Protection System Evaluation

Indian Space Research Organisation (ISRO)

  • It is the space agency of India which is involved in science, engineering and technology to harvest the benefits of outer space for India and the mankind. 
  • ISRO was previously the Indian National Committee for Space Research (INCOSPAR), set up by the Government of India in 1962, as envisioned by Dr. Vikram Ambalal Sarabhai. 
  • ISRO was formed on August 15, 1969 and superseded INCOSPAR with an expanded role to harness space technology. 
  • Department of Space (DOS) was set up and ISRO was brought under DOS in 1972. 
  • ISRO has its headquarters in Bengaluru. 
  • The activities of ISRO are guided by its Chairman, who would also be the secretary of DOS and Chairman of Space commission – the apex body that formulates the policies and overseas the implementation of the Indian Space Programme.
Centres & Units of ISROActivities
Vikram Sarabhai Space Centre (VSSC), ThiruvananthapuramBuilding of Launch Vehicles
U R Rao Satellite Centre (URSC), BengaluruDevelopment and designing of Satellites
Satish Dhawan Space Centre (SDSC), SriharikotaIntegration and launching of satellites and launch vehicles
Liquid Propulsion Systems Centre (LPSC), Valiamala & BengaluruDevelopment of liquid stages including cryogenic stage
Space Applications Centre (SAC), AhmedabadSensors for Communication and Remote Sensing satellites and application aspects of the space technology
National Remote Sensing Centre (NRSC), Hyderabad. Remote Sensing satellite data reception processing and dissemination

Chinook Helicopter

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  • The Boeing CH-47 Chinook is a tandem rotor helicopter developed by American rotorcraft company Vertol and manufactured by Boeing Vertol. 
  • The Chinook is a heavy-lift helicopter that is among the heaviest lifting Western helicopters.
  • It has a top speed of 310 km per hour and is one of the fastest helicopters in the world.
  • It is also very effective in rescue and relief missions during national disasters, due to capability to carry heavy loads.
  • The Indian Air Force operates a fleet of 15 Boeing made Chinook helicopters, which were acquired from the US in 2015 and were inducted into service in 2019.

India needs a national programme on autism

Context: World Autism Awareness Day was celebrated on 2nd April Which highlights the fact that more than one crore Indians are affected with autism which requires the intervention of the government.

What is autism? 

Autism is a developmental disorder with symptoms that appear within the first three years of life. Its formal diagnostic name is autism spectrum disorder (ASD). The word “spectrum” indicates that autism appears in different forms with varying levels of severity. That means that each individual with autism experiences their own unique strengths, symptoms, and challenges.

How autism spectrum disorders are described?

Psychiatrists and other clinicians rely on the fifth edition of the Diagnostic and Statistical Manual of Mental Disorders (DSM-5) to define autism and its symptoms. The DSM-5 definition recognizes two main symptom areas: 

  • Deficits in social communication and interaction Restricted, 
  • Repetitive behaviours, interests, or activities.

These symptoms appear early in a child’s development—although diagnosis may occur later. Autism is diagnosed when symptoms cause developmental challenges that are not better explained by other conditions. 

Autism symptoms and behaviours 

Individuals with autism may present a range of symptoms, such as: 

  • Reduced eye contact 
  • Differences in body language 
  • Lack of facial expressions 
  • Not engaging in imaginative play 
  • Repeating gestures or sounds 
  • Closely focused interests 
  • Indifference to temperature extremes 

These are just a few examples of the symptoms an individual with autism may experience. Any individual could have some, all, or none of these symptoms. 

Keep in mind that having these symptoms does not necessarily mean a person has autism. Only a qualified medical professional can diagnose autism spectrum disorder. 

Each person with autism has their own strengths, likes, dislikes, interests, challenges, and skills, just like you do. 

How autism is diagnosed? 

There is no known biological marker for autism. That means that no blood or genetic test can diagnose the disorder. Instead, clinicians rely on observation, medical histories, and questionnaires to determine whether an individual has autism. Physicians and specialists may use one or several of the following screening tools: 

  • Modified Checklist for Autism in Toddlers, Revised (M-CHAT), a 20-question test designed for toddlers between 16 and 30 months old. 
  • The Ages and Stages Questionnaire (ASQ), a general developmental screening tool with sections targeting specific ages used to identify any developmental challenges a child may have. 
  • Screening Tool for Autism in Toddlers and Young Children (STAT), an interactive screening tool, comprising 12 activities that assess play, communication, and imitation. 
  • Parents’ Evaluation of Developmental Status (PEDS) is a general developmental parent interview form that identifies areas of concern by asking parents questions. 

In rare cases, individuals with autism reach adulthood before receiving a diagnosis. However, most individuals receive an autism diagnosis before the age of 8. 

Autism Prognosis 

Autism is a lifelong condition, and a wide variety of treatments can help support people with ASD. The symptoms and comorbidities—conditions occurring in the same individual—are treatable. 

  • Early intervention delivers the best results. Parents and caregivers should seek out the advice of a qualified medical professional before starting any autism treatment. 
  • Advances in understanding autism, its symptoms, and comorbidities have improved outcomes for individuals with autism. 

Co-occurring conditions 

When a person has more than two or more disorders, these conditions are known as comorbidities. Several comorbidities are common in people with autism. These include: 

  • Anxiety 
  • Depression 
  • Epilepsy 
  • Gastrointestinal and immune function disorders 
  • Metabolic disorders 
  • Sleep disorders 

Identifying co-occurring conditions can sometimes be a challenge because their symptoms may be mimicked or masked by autism symptoms. However, diagnosing and identifying these conditions can help avoid complications and improve the quality of life for individuals with autism. 

Why India needs a national programme on autism?

  • Cultural differences and diagnosis: The majority of children with an autism spectrum diagnosis within the United States and the United Kingdom are likely to be verbal, with average or higher than average IQ, and attend mainstream schools. In contrast, a significant majority of children in India who get a clinical diagnosis of autism often also have an intellectual disability and limited verbal ability. 

Autism is assessed behaviourally, and behavioural assessment tools (i.e., questionnaires or interviews with professionals) are the starting point for all research and clinical work on autism. Yet, most of the widely used autism assessment tools have limited availability in Indian languages.

  • Poor supply of specialists in India: According to the latest estimates, India has less than 10,000 psychiatrists, a majority of whom are concentrated in big cities. 

While the number of mental health professionals continues to grow, the current gap between demand and supply cannot be met directly by the specialists alone. 

This gap is not relevant for behavioural assessments alone but also for providing psychological interventions. Parallel efforts to widen the reach of diagnostic and intervention services by involving non-specialists (e.g., Accredited Social Health Activist (ASHA)/Anganwadi workers, parents/caregivers) and the appropriate digital technology (e.g., apps, smartphones) that can capture both self/caregiver report as well as observational data.

What should be the components of the all-India programme on autism?

A national programme on autism should aim at:

  • linking researchers, clinicians, and service providers to the end-users in the autism community in India. 
  • Assessment, 
  • Intervention, and 
  • Awareness. 
  • Promoting R&D in the Autism
  • Expansion of clinical and support service workforce by training non-specialists such that a stepped-care model can be rolled out effectively across the nation. 
  • Consultation with different stakeholders

For judiciary, the red lines are bright and clear

Context: The role of constitutional courts in shaping the social, cultural and traditional values of a society has become a subject of intense debate in recent years. Public interest litigants and civil society groups often approach courts seeking their intervention when the legislature or executive fail to address issues related to tradition, culture and society. However, courts must be careful to consider whether such a role falls within their constitutional mandate, given the principle of separation of powers. This article explores the limits of the judiciary's role as societal arbiters and the importance of respecting the institutional independence and competence of the legislature and executive.

Constitutional courts have been thrust into the spotlight in recent years as the line between judicial and legislative roles has become blurred. While the judiciary has the power of review over the other two organs, it must exercise this power with restraint, respecting the separation of powers and the institutional independence and competence of the legislature and executive. This article examines the fundamental principles of constitutional morality that guide the exercise of judicial review and emphasizes the importance of preserving the sanctity of the doctrine of separation of powers to ensure participative democracy in letter and spirit.

The Indian judiciary has played a pivotal role in shaping the country's legal landscape, especially in the context of judicial activism and judicial overreach. These two concepts are highly debated in India and are an essential topic for the UPSC aspirants to understand. If we look at the General Studies- II: Governance, Constitution, Polity, Social Justice and International relation: Structure, organization and functioning of the Executive and the Judiciary. 

Judicial activism refers to the proactive role played by the judiciary in protecting fundamental rights and promoting social justice, whereas judicial overreach occurs when the judiciary goes beyond its constitutional mandate and encroaches upon the authority of the legislative or executive branches of government. 

In this article, we will discuss examples of judicial activism and instances of judicial overreach in India, examine the causes behind these two concepts, and explore the concerns over judicial overreach. Understanding the nuances of these issues is crucial for the UPSC aspirants to navigate India's legal and constitutional landscape and to uphold the principles of justice and the rule of law.

So we are going to cover: 

Let us first understand the two: 

Judicial activism refers to a judge's willingness to use their power to shape or even create law, rather than simply interpreting existing laws. This approach can involve using constitutional provisions to strike down laws that the judge believes are unconstitutional, or interpreting laws in a broad or expansive way to achieve a particular outcome. Proponents of judicial activism argue that it can be an important tool for protecting individual rights and promoting social justice.

Some examples of judicial activism in India include:

  • The Vishaka case: In 1997, the Supreme Court of India laid down guidelines to prevent sexual harassment of women in the workplace, even though there was no specific law in place to address the issue.
  • The Delhi Vehicular Pollution case: In 1998, the Supreme Court banned the use of old and polluting vehicles in Delhi to control air pollution, even though the government had not taken adequate measures to address the problem.
  • The Narmada Bachao Andolan case: In 2000, the Supreme Court ordered a halt to construction of the Sardar Sarovar Dam on the Narmada River until rehabilitation measures for displaced villagers were completed.
  • The Right to Information case: In 2005, the Supreme Court ruled that the right to information is a fundamental right under the Constitution and directed all public authorities to disclose information to citizens under certain conditions.
  • The Section 377 case: In 2018, the Supreme Court struck down Section 377 of the Indian Penal Code, which criminalized homosexuality, on the grounds that it violated the fundamental rights of individuals.

These are just a few examples of judicial activism in India. The judiciary has played a vital role in shaping and protecting the rights of citizens in the country.

Judicial overreach refers to situations where a judge goes beyond the bounds of their authority or role in the legal system. This can happen when a judge makes decisions that are not supported by the law, or when they exceed their constitutional authority. Critics of judicial overreach argue that it can undermine the rule of law and the separation of powers between the different branches of government.

Instances of judicial overreach in India

  • The National Judicial Appointments Commission (NJAC) case: In 2015, the Supreme Court struck down the NJAC Act, which aimed to replace the collegium system of appointment of judges with a new commission. The court ruled that the NJAC Act was unconstitutional as it violated the independence of the judiciary. However, some legal experts criticized the court for going beyond its jurisdiction and interfering with the legislative process.
  • The Sabarimala Temple case: In 2018, the Supreme Court allowed women of all ages to enter the Sabarimala Temple, which had previously banned women of menstruating age from entering the temple. The court's decision was based on the principles of gender equality and non-discrimination. However, the decision was controversial as it was seen as interfering with the religious practices of the temple.
  • The Aadhaar case: In 2018, the Supreme Court upheld the constitutional validity of the Aadhaar scheme, which required citizens to link their biometric data with their government identification numbers. However, the court struck down some provisions of the scheme, such as the mandatory linking of bank accounts and mobile phone numbers with Aadhaar. Some experts criticized the court for interfering with the policy decisions of the executive branch.
  • The Delhi Government vs. Lieutenant Governor case: In 2018, the Supreme Court ruled that the Lieutenant Governor of Delhi does not have absolute powers and must work with the elected government of Delhi. The court's decision was seen as interfering with the power dynamics between the executive and legislative branches of the government.

While the judiciary has a vital role to play in protecting the rights of citizens and upholding the Constitution, it is important to ensure that the judiciary does not exceed its constitutional mandate and interfere with the functioning of democracy.

In summary, while both judicial activism and judicial overreach involve judges taking an active role in shaping the law, the key difference between the two is that judicial activism is seen by some as a legitimate and necessary part of the judicial process, while judicial overreach is viewed as a violation of the proper limits of judicial authority. Contrary to the requirement of judicial activism, the intention of judicial overreach is not genuine. Overreach impedes the functioning of a healthy democracy’s institutions.

Judicial overreach occurs when the judiciary exceeds its constitutional mandate and interferes with the functions of the executive and legislative branches of the government. While judicial activism can be seen as a positive development, judicial overreach can have negative consequences for the functioning of democracy and the separation of powers.

Causes of Judicial activism and Judicial Overreach

  • Asymmetry of power: Supreme Court is the most powerful branch of governance. It’s every judgment is binding on the other two branches (legislature and executive) and it can strike down their actions as well as their laws. 
  • Public Interest Litigation (PIL): PIL permitted any member of the society to file a case for appropriate directions against any injustice. Consequently, the expectations of the public went high for judicial intervention to improve the administration. 
  • Lackadaisical approach of other organs: Lax functioning of the legislature and executive may result in corruption, delay, non-responsiveness, or inefficiency in the governance. These things create a vacuum in governance. Most of the time such vacuums are filled by the judiciary. 
  • Other factors: Growing consciousness of people for their rights, globalization, active media and civil society organizations, concerns for the environment among others are also considered important reasons for judicial activism and judicial overreach.

Concerns over Judicial overreach

Through, judicial activism the Supreme Court has done a tremendous amount of good. However, in many cases; the judiciary has used excess powers which can never be treated as judicial adjudication and even within the normal bounds of judicial activism. Such judicial overreach has given rise to the following concerns: 

  • Undermining the doctrine of the separation of power: The power vested in the Supreme Court through Article 142 of the Constitution is extraordinary. Frequent use of this power, to issue judicial decrees, is considered as a violation of the doctrine of the separation of power.
  • Negligence of the challenges faced by legislature and Executive: Sometimes the judiciary passes the order without keeping in mind Fund, function, framework, and functionary (4 F) that limit the work of Legislature and executive. For example, cancelling of coal blocks allocations and spectrum allocations led to the poor health of the financial institutions of the country.
  • Lack of accountability towards people: Judiciary as an institution is not accountable to the people in the same way as the legislature and the executive. Further, the judiciary also has the power to punish for ‘Contempt of court.’ This way the judiciary may evade public criticism for many of its actions.

Threat to the credibility of the judiciary: Entry into the legislative domain and inability to uphold the law may diminish the image of the judiciary.

So according to the author contends

  • The power of judicial review must not be interpreted as judicial supervision or superintendence over the legislature or executive. This position is especially applicable in matters of policy where domain expertise is called for, and in matters of societal experimentation where the festival of democracy must play itself out through the process of interaction and consultation between the electorate and the elected.
  • The power of judicial review is not meant to be wielded in such a way that judicial wisdom replaces the will of the majority by infantilising it since the Constitution does not envisage replacing democracy with judicial paternalism. On the contrary, the Constitution recognises that sometimes a good policy decision may be unconstitutional, and an otherwise bad policy decision may be constitutional. Only an instance of unconstitutionality warrants the intervention of the judiciary as the watchdog of the Constitution, if sought by the aggrieved parties.

Rising Antarctic ice melt will dramatically slow global ocean flows study says

Context: New research published in the journal Nature, has found that rapidly melting Antarctic ice is dramatically slowing down the flow of water through the world’s oceans, and could have a disastrous impact on global climate, the marine food chain and even the stability of ice shelves.

What is overturning circulation?

  • The “overturning circulation” of the oceans, driven by the movement of denser water towards the sea floor, helps deliver heat, carbon, oxygen and vital nutrients around the globe.
  • Ocean overturning allows nutrients to rise up from the bottom.

What the study found

  • As temperatures rise, freshwater from Antarctica’s melting ice enters the ocean, reducing the salinity and density of the surface water and diminishing that downward flow to the sea’s bottom.
  • According to a study, deep ocean water flows from the Antarctic could decline by 40% by 2050.
  • Disrupting the base of the food chain: The slow flow of water near Antarctica will slow down the whole circulation and will reduce the number of nutrients that get returned from the deep ocean back up to the surface.
  • Leaving more CO2 in the atmosphere: The ocean would not be able to absorb as much carbon dioxide as its upper layers become more stratified, leaving more CO2 in the atmosphere. 
  • The study showed that warm water intrusions in the western Antarctican ice shelf would increase.

About Antarctica

Definition of Antarctica: All the Land and ice shelves to the south of 60-degree latitude.

Antarctica Treaty

  • It was signed in Washington on 1 December 1959 by the twelve countries whose scientists had been active in and around Antarctica during the International Geophysical Year (IGY) of 1957-58. 
  • It entered into force in 1961 and has since been acceded to by many other nations. 
  • The total number of Parties to the Treaty is now 56 (Including India).

Provisions:

  • Antarctica should be used only for peaceful purposes.  No country should build military bases.
  • Freedom of scientific investigation in Antarctica.
  • No country should claim sovereignty over Antarctica based on setting up of Research stations.
  • No Nuclear explosions or disposal of radioactive wastes
  • Countries to take appropriate efforts to abide by the provisions of the treaty.

India and Antarctica:

  • India signed the Antarctic Treaty in 1983.
  • India ratified the Convention on the Conservation of Antarctic Marine Living Resources in 1985.
  • India signed Protocol on Environmental Protection to the Antarctic Treaty in 1998. (Madrid Protocol)
  • India's research stations in Antarctica: Dakshin Gangotri (De-commissioned now); Maitri and Bharati. Managed by National Centre for Polar and Ocean
  • Research (NCPOR), Goa under the Ministry of Earth Sciences.
  • Nov 2021: India launched its 41st Scientific Expedition to Antarctica.

European Commission grants GI tag for Himachal’s Kangra tea

Context: Recently, Himachal Pradesh’s famous Kangra Tea has been awarded a protected Geographical Indication (GI) tag by the European Union (EU), opening up new opportunities for the tea to enter the European market.

The EC notified granting PGI on March 22 and this will come into effect from April 11, 2023.

The key characteristics of 'Kangra tea’

  • It is produced in the slopes of the Dhauladhar mountain ranges of the Western Himalayas. The tea is cultivated in various areas, including Palampur, Baijnath, Kangra, Dharmshala, Jogindernagar, and Bhatiyat.
  • It is grown at an elevation ranging from 900 to 1,400 metres above sea level with the annual rainfall being 270-350 cm.  
  • This unique tea is derived from the leaves, buds, and tender stems of the Camellia sinensis species cultivated in the Kangra Valley of Himachal Pradesh, India.
  • It is available in green, oolong, white, and orthodox black types. While the black tea has a sweet lingering after-taste, the green tea has a delicate woody aroma. 
  • The tea has a light colour, high body in liquor, and leaves that contain up to 13% catechins, 3% caffeine, and amino acids such as theanine, glutamine, and tryptophan.
  • Kangra tea is a little milder than Darjeeling tea in terms of flavour and has more body and liquor.
  • Kangra Tea previously received an Indian Geographical Indication tag in 2005, and since 1999, the cultivation and development of the tea have steadily improved in the Kangra region.

About geographical indication

  • A geographical indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. In order to function as a GI, a sign must identify a product as originating in a given place.

In India

Geographical Indications registration is administered by the Geographical Indications of Goods (Registration and Protection) Act, 1999 which came into force with effect from September 2003.The Act would be administered by the Controller General of Patents, Designs and Trade Marks- who is the Registrar of Geographical Indications under Department for Promotion of Industry & Internal Trade, which is in turn under the Ministry of Commerce & Industry

  • The term “geographical indications”, in its broad sense, includes a variety of concepts used in international treaties and national/regional jurisdictions, such as: appellation of origin (AO), protected designation of origin (PDO) and protected geographical indication (PGI). 

For instance

  • “Appellation of origin” is defined in the Lisbon Agreement for the Protection of Appellations of Origin and their International Registration and in the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications.
  • “Protected Designation of Origin (PDO)” and “Protected Geographical Indication (PGI)” are terms used within the European Union.
  • Protected designation of origin (PDO): Product names registered as PDO are those that have the strongest links to the place in which they are made.

Specifications: Every part of the production, processing and preparation process must take place in the specific region.

Products: food, agricultural products and wines.

  • Protected geographical indication (PGI): PGI emphasises the relationship between the specific geographic region and the name of the product, where a particular quality, reputation or other characteristic is essentially attributable to its geographical origin.

Products: food, agricultural products and wines.

Specifications: For most products, at least one of the stages of production, processing or preparation takes place in the region. 

Revamped Credit Guarantee Scheme for Micro & Small Enterprises Scheme (CGTMSE Scheme)

Context: Ministry of MSME has issued guidelines for revamping of Credit Guarantee Scheme for Micro & Small Enterprises with effect from 1st April 2023. CGTMSE created a landmark by touching the milestone approving guarantees worth Rs 1 lakh crore during FY 2022-23. 

Revamped Credit Guarantee Scheme for Micro & Small Enterprises Scheme

  • Objective of CGTMSE Scheme: Aims to encourage first generation entrepreneurs to venture into self-employment opportunities by facilitating credit guarantee support for collateral free/third party guarantee free loans to Micro & Small enterprises (MSEs), especially in absence of collateral. To operationalise the scheme, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
  • Guarantee coverage ranges from 85% for Micro enterprises up to Rs 5 lakhs to 75% for others. 50% coverage for retail activity. 
Screenshot 2023 04 01 at 5.41.42 PM
  • Corpus of Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) has been infused with a sum of Rs 8,000 crore to enable additional collateral free guaranteed credit of Rs 2 lakh crore and reduction in cost of credit by 1%.
  • Reduction of Annual Guarantee Fee for loans up to Rs 1 crore from a peak rate of 2% p.a. to as low as 0.37% per annum. This will reduce overall cost of credit to Micro & Small Enterprises to a great extent.
  • Limit on ceiling for guarantees has been enhanced from Rs 2 crore to 5 crores. Hence, under the scheme provides credit guarantee for loans up to Rs 5 crore, without collateral and third-party guarantee. 
  • No legal proceedings up to Rs 10 lakhs: For settlement of claims in respect of guarantees for loan outstanding up to Rs 10 lakh, initiation of legal proceedings will no longer be required.
  • Lending Institutions through which CGTMSE Scheme is eligible: Scheduled Commercial Banks including private banks, select Regional Rural Banks, Selected NBFCs and Small Finance Banks, NSIC, NEDFI, SIDBI and The Tamil Nadu Industrial Investment Corporation(TNIIC).

Poll bonds on sale for 10 days starting from April 3

Electoral Bonds

  • Electoral Bonds are bearer instrument, sort of a Promissory Note and are an interest free banking instrument. 
  • Electoral Bond shall be issued for any value, in multiples of Rs 1000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore from the Specified Branches of the State Bank of India (SBI). 
  •  The purchaser would be allowed to buy Electoral Bonds only on due fulfilment of all the extant KYC norms and by making payment from a bank account. It will not carry the name of payee.
  •  The Electoral Bonds would have a life of only 15 days during which it can be used for making donation only to political parties which has secured not less than one per cent of the votes polled in the last general election to the House of the People or to Legislative Assembly.
  • Every political party in its returns will have to disclose the amount of donations it has received through electoral bonds to the Election Commission.

Concerns associated with electoral bonds

  • Identity of Donor remains unknown goes against transparency of electoral funding
  • No Upper Limit for Donation Increases Corruption and red tapism through undisclosed identity.
  • Exemption allowed under RTI Act – Section 8(1)(e) , Results in Frivolous Donations from unaccounted source. Further it strengthens Corporate-Political Nexus and results in quid pro quo scenario post elections.
  • Prohibition of donation to be provided by companies older than 3 years removed. This will lead to formation of Shell Companies to route funds as part of electoral finance.
  • Restrictions on corporates for donating more than 7.5% of their average net profit over the previous 3 years to the Political parties removed. FCRA Amendment enables political parties to accept donations from foreign companies – Indian elections may have foreign influence.

Unified Tariff Regime for National Gas Grid System

Context: Petroleum & Natural Gas Regulatory Board has amended PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate regulations pertaining to Unified Tariff for natural gas pipelines with a mission of 'One Nation, One Grid & One Tariff). National Gas Grid System means network of all such natural gas pipelines within India which are fully interconnected with each other (including those which are partly commissioned and so interconnected)

Salient Features of Unified Tariff Regime for Natural Gas Pipelines

  • Levelised Unified Tariff: PNGRB has notified a levelized Unified Tariff of Rs 73.93 per MMBTU additional GST tax will be Rs. 0.19/MMBTU. All entities part of National Gas Grid will get the tariff as per their entitlement while customers would pay Unified Tariff applicable for different zones. Difference between the entitlement tariffs to be earned by pipeline companies and unified tariffs paid by customers will be settled between pipeline entities by a settlement mechanism. 
  • Tariff zones for unified tariff:
    • First Tariff zone for unified tariff: Length of 300 km from the entry point on either side of national gas grid system.
    • Second Tariff zone for unified tariff: length between 300 to 1200 km on either side of the first tariff zone on national gas grid
    • Third Tariff zone for unified tariff: Remaining length of national gas grid system on either side of second tariff zone. 
UNIFIED ZONETARIFF (Rs./MMBTU on GCV basis)
Zone 139.45
Zone 274.97
Zone 399.90
  • Companies covered: National Gas Grid covers all interconnected pipeline networks owned and operated by following entities: Indian Oil Corporation, Oil & Natural Gas Corporation (ONGC), GAIL (India), Pipeline Infrastructure ltd., Gujarat State Petronet Ltd, Gujarat Gas, Reliance Gas Pipelines, GSPL India Gasnet & GSPL India Transco. All these entities will be members of Industry Committee. 
  • Settlement mechanism: The settlement mechanism will be applicable to all the entities including shippers availing transportation services through natural gas pipelines forming part of National Gas Grid System. Out of the members of the Industry Committee 5 members will be selected to form a part of Settlement Committee will decide the ratio of settlement among different entities part of National Gas Grid System. 

Significance of Unified Price for National Gas Grid System

  • Expansion of National Gas Grid: With commissioning of newer interconnected gas pipelines, the national gas grid will keep expanding for Union tariff.
  • Affordable access to natural gas in far-flung areas: This reform will specially benefit consumers located in far-flung areas by making natural gas available at competitive and affordable rates. In the current regime, additive rates are applicable for gas consumers in these areas. 
  • Transition to gas economy: India plans to raise the share of gas in the economy to about 15% by 2030 from 6.4% in 2022. The uniform price mechanism for transportation will aid in this regard. 

About Petroleum & Natural Gas Regulatory Board (PNGRB)

PNGRB is a statutory body formed under the Petroleum & Natural Gas Regulatory Board Act, 2006.

The Board is headed by a Chairperson, a Member (legal) and three other members to be appointed by Central Government.

Functions of PNGRB are:

  1. Protect interests of consumers by fostering fair trade and competition among entities.
  2. Register entities related to:
  3. Authorise entities to:
    • Lay, build, operate or expand a common carrier or contract carrier.
    • Lay, build, operate or expand city or local natural gas distribution network. (CNG networks)
  1. Declare pipelines as common carrier or contract carrier.
  2. Regulate
    • Access to common carrier or contract carrier to ensure fair trade and competition amongst entities.
    • Transportation rates for common carrier or contract carrier.
    • Access to city or local natural gas distribution network to ensure fair trade and competition.
  3. In respect of petroleum, petroleum products and natural gas:
    • Ensure adequate availability.
    • Ensure display of information about maximum retail prices
    • Monitor prices and take corrective measures to prevent restrictive trade practices by the entities.
    • Secure equitable distribution for petroleum and petroleum products
    • Provide and enforce retail service obligations for retail outlets and marketing service obligations for entities.
    • Monitor transportation rates and take corrective actions to prevent restrictive trade practices by entities.
    • Levy fees and other charges
    • Maintain a data bank of information on activities related to petroleum, petroleum products & natural gas.
    • Lay down technical standards, specifications & safety standards related to petroleum, petroleum products, natural gas, pipeline construction, operation & maintenance related to downstream petroleum and natural gas.
  4. Adjudicate and decide disputes arising amongst entities and receive complaints. 

FTP moots setting up e-com export hubs

Context: Union Minister of Commerce and Industry  has  launched the Foreign Trade Policy 2023 saying that it is dynamic and has been kept open ended to accommodate the emerging needs of the time.

More on news:

India's Foreign Trade Policy expands export benefits to e - commerce overseas shipments, with the aim to increase exports to $200 - $300 billion annually by 2030. There is a plan to create hubs for exports with designated zones for warehousing. These hubs will help e-commerce aggregators to undertake everything from stocking to customs clearances and processing of returned orders. These hubs would also include a processing facility for last mile activities like labelling, testing and repackaging. 

Foreign Trade Policy (FTP) 2023

  • It aims at process re-engineering and automation to facilitate ease of doing business for exporters. 
  • It also focuses on emerging areas like dual use high end technology items under SCOMET (Special Chemicals, Organism, Materials, Equipment and Technologies), facilitating e-commerce export, collaborating with States and Districts for export promotion.
  • It is introducing a one-time Amnesty Scheme for exporters to close the old pending authorizations and start afresh. 
  • It encourages recognition of new towns through “Towns of Export Excellence Scheme” and exporters through “Status Holder Scheme”. 
  • It will facilitate exports by streamlining the popular Advance Authorization and Export Promotion Capital Goods (EPCG) schemes, and enabling merchanting trade from India.
  • To develop India into a merchanting trade hub, it has introduced provisions for merchanting trade. Merchanting trade of restricted and prohibited items under export policy would now be possible. (Merchanting trade involves shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary). 

Key pillars of FTP 2023

  1. Incentive to Remission
  2. Export promotion through collaboration - Exporters, States, Districts, Indian Missions
  3. Ease of doing business, reduction in transaction cost and e-initiatives
  4. Emerging Areas – E - Commerce Developing Districts as Export Hubs and streamlining SCOMET policy

Status of exports in India

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India’s Exporters

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