The Hindu

CII proposes 10-point roadmap for Ease of Doing Business

Context: Ahead of the Budget, the Confederation of Indian Industry (CII) has suggested a 10-point agenda to drive ease of doing business reforms. While India has remained focused on improving ease of doing business (EoDB), there is a need to maintain the momentum especially in certain specific areas.

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What is Ease of Doing Business?

  • Ease of Doing Business (EoDB) is an index developed by the World Bank Group.
  • What does it do?
    • It measures the regulatory environment of a country and its impact on the ease with which businesses can operate. 
    • It assesses how conducive a country's policies, regulations, and administrative practices are for starting, running, and closing a business.
  • In 2021, the World Bank discontinued the EoDB index following allegations of data irregularities and ethical concerns during its preparation.
    • However, its principles continue to influence global reforms and economic policies.

CII recommendations for Ease of Doing Business Reforms

  • Mandatory Use of National Single Window System (NSWS) for Approvals:
    • Integrating all central ministries into the NSWS within six months, with states to follow in a phased manner. 
    • A dedicated central budget to incentivize states to adopt the system. This will ensure transparency and faster processing.
  • Time-Bound Services with Statutory Backing:
    • A new Act to impose statutory obligations on public authorities to process industry applications and grievances within set timelines. 
    • Provisions for deemed approvals beyond deadlines are also suggested.
  • Strengthening Dispute Resolution Mechanisms:
    • Expanding commercial courts and increasing reliance on Alternative Dispute Resolution (ADR) methods like mediation and arbitration. 
    • Prioritising establishment of the Mediation Council of India and the Arbitration Council of India.
  • Expanding National Judicial Data Grid (NJDG):
    • NJDG’s scope should include tribunal cases to manage and reduce pendency effectively. Tribunals constitute a significant share of unresolved cases.
  • Unified Environmental Compliance Framework:
    • A single framework to consolidate environmental compliance requirements. 
    • Existing laws like the Water Act and Air Act should be incorporated into the Environmental Protection Act to centralise regulations. 
    • Performance-based incentives could reward companies exceeding environmental standards.
  • Facilitating Land Access:
    • States should develop an Online Integrated Land Authority to streamline land records, digitise land banks, and provide dispute information
    • The India Industrial Land Bank (IILB) should evolve into a National Level Land Bank with central budgetary support.
  • Simplified Labour Compliances:
    • Implementation of the four Labour Codes is essential to ease compliance. 
    • Additionally, the Shram Suvidha Portal should become a centralised platform for all labour law compliances across central and state levels.
  • Improving Trade Facilitation:
    • The Authorised Economic Operator (AEO) program should be simplified with enhanced benefits like:
      • extended duty payment periods
      • self-declared renewals
      • easier access for MSMEs.
  • Aligning Metrology Rules with Global Standards:
    • Synchronising allied legal metrology rules with international standards. 
    • Imported equipment certified by OIML labs should be exempt from additional approval processes.
  • Addressing Tax Dispute Pendency: The government should reduce income tax litigation by:
    • Unclogging cases at the Commissioner of Income Tax (Appeals) level. 
    • Improving ADR mechanisms like Advance Pricing Agreements and Dispute Resolution Schemes.

The 10-point agenda can help create a predictable, transparent, and business-friendly environment. By implementing these recommendations, India can strengthen its position as a global investment destination while boosting domestic economic activity.

What are Small Language Models?

 Context: Small Language Models (SLMs) are a perfect artificial intelligence system for a country like India, where the scope of Artificial Intelligence (AI) adoption is immense but resources are constrained. 

Relevance of the Topic:Prelims: Basic understanding of terms like Large Language Models, Small Language Models.  

What is a Language Model?

  • A language model is the core component of modern Natural Language Processing (NLP). It is a statistical model that is designed to analyse the pattern of human language and predict the likelihood of a sequence of words or tokens.
  • Large language models (LLMs) are AI systems capable of understanding and generating human language by processing vast amounts of text data (has at least one billion or more parameters). E.g., ChatGPT (by Open AI), Gemini (Google), Llama (Meta). 
Language Model

What is a Small Language Model (SLM)?

  • Small Language Models (SLMs) are compact AI systems designed for natural language processing tasks
  • SLMs typically have fewer than 1 billion parameters (ranges from millions to a few billion parameters), making them more efficient in terms of computational resources and energy consumption.  
  • SLMs are capable of performing various NLP tasks such as text generation, translation, and sentiment analysis, with potentially reduced capabilities compared to larger models. 

Benefits of Small Language Model:

  • Ideal for specialised tasks: SLMs are cheaper to run and maintain and ideal for specific use cases. For a company that needs AI for a set of specialised tasks, a large AI model is not required.
  • Lesser training time: Training small models requires less time, less computation and smaller training data.
  • High inference speeds: SLMs have faster inference speeds (reduced latency due to fewer parameters) because of their smaller size. This is beneficial for real-time applications where quick responses are crucial. E.g., chatbots or voice assistants.
  • Use fewer resources: Their smaller size allows for deployment on edge devices, can run offline on smaller devices like mobile phones or embedded systems, making them valuable for applications where resources are limited or privacy is a concern.
    • In India, where the scope of AI adoption is immense but resources are constrained, SLMs are perfect.
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Examples of Small Language Model

  • Microsoft Phi (the latest Phi-3-mini has 3.8 billion parameters).
  • LLaMA 3 (by Meta)
  • Gemma (by Google)

Limitations of Small Language Model

  • Less capable of handling complex tasks: Smaller size of SLMs limits their ability to capture and process large amounts of contextual and nuanced information, hence, making them unsuitable for highly intricate tasks, like detailed data analysis or advanced creative writing. 
  • Less accuracy and creativity: Their reduced scale (limited data training) restricts the richness of their outputs, leading to less imaginative or less varied responses, compared to LLMs. 
  • Bias and reduced Performance: Since SLMs operate on fewer parameters and smaller datasets, they are more prone to bias.

Meta Plans to shut down Fact-Checking Program

Context: Recently, Meta’s CEO Mark Zuckerberg announced phasing out fact-checkers in favour of crowdsourced “Community Notes”. Indian fact-checkers remain unsure of the consequences of Facebook parent Meta’s shift from professional to community-driven fact-checking.

Relevance of the Topic:Prelims: A basic idea about developments in Fact Check Ecosystem, especially in India. 

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Major Highlights:

  • Meta and Fact-Checking:
    • After the 2016 U.S. Presidential election, Meta (Facebook) roped in content moderators globally and developed technology to filter harmful content.
    • Meta started its independent fact-checking programme in partnership with the International Fact-Checking Network (IFCN) and the European Fact-Checking Standards Network (EFCSN). 
    • Fact-checkers worked on finding misinformation and rating them based on the seriousness of content violation, Meta followed up with action and informed users of the measures it took. 
  • Community Notes:
    • Meta will be moving towards an X-platform styled content moderation system called ‘Community Notes’. 
    • Under this model, instead of a centralised authority taking action against misinformation, users work together to add additional context that will appear under false or even blatantly illegal content.
  • Impact on Indian fact-checking media:
    • The announcement by Meta could significantly affect India’s media landscape (loss of revenue and jobs), where eleven organisations currently partner with Meta through its third-party fact-checking network (3PFCN), launched in December 2016.

Establishment of Fact Check Units in India: Development

1. Establishment of FCUs:

  • In 2023, the Ministry of Electronics and Information Technology (MEiTY) promulgated the IT (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2023 (2023 Rules), which amended the Information Technology Rules, 2021.
    • The amendment allows the government to constitute a Fact Checking Unit (FCU) under IT Amendment Rules, 2023.
    • The amendment to Rule 3(1)(b)(v) of the IT Rules, 2021 expanded the general term “fake news” to include “government business”. 
  • Under the Amendment Rules, 2023, if the FCU comes across or is informed about any posts that are fake, false, or contain misleading facts pertaining to the business of the government, it would flag it to the social media intermediaries concerned.
  • Online intermediaries would then have to take down such content, if they wanted to retain their “safe harbour” protection under the IT Rules, 2000 (i.e., legal immunity with regard to third-party content published by them).

2. Concerns: 

  • Violation of Fundamental Rights: The Rules raised concerns over free speech and the extent to which the government can regulate it.
    • The amended Rule 3(1)(b)(v) was violative of:
      • Article 14 (equality before law)
      • Article 19(1)(a) (freedom of speech and expression)
      • Article 19(1)(g) (right to practise a profession or trade) of the Constitution. 
    • The Rule curtailed the fundamental rights of citizens beyond the reasonable restrictions prescribed under Article 19(2), which was impermissible through the mode of delegated legislation.
  • Against the Principle of Natural Justice:
    • The FCUs allowed the government to be the “only arbiter” of truth in respect of business concerning itself. 
    • Assigning any unit of the government such arbitrary, overbroad powers to determine the authenticity of online content, bypasses the principles of natural justice, thus, making it an unconstitutional exercise. 
  • Fails the Proportionality Test:
    • The Rule could result in a “chilling effect” on the intermediary due to the “threat of losing safe harbour”, and also on the freedom of speech. 
    • These notified amendments in 2023 were also in gross violation of the Supreme Court ruling in Shreya Singhal vs. Union of India (2013) which laid down strict procedures for blocking content. 

3. Judicial Rulings wrt FCU: 

  • Indian law on fact-checking has been challenged in courts, at least as far as fact-checking with regard to the government is concerned.
    • Supreme Court Ruling, March 2024: The Supreme Court has stayed the notification of a fact-check unit of the Press Information Bureau from having the power to flag posts as misinformation and strip social media platforms’ safe harbour immunity.
    • FCUs are Unconstitutional- Bombay High Court judgement, Sep 2024: The Bombay High Court struck down the amended provision of the Information Technology (IT) Rules, 2021 which empowered the government to identify “fake news” on social media platforms through FCUs, citing it as unconstitutional

Gangasagar Mela

Context: The state government of West Bengal announced new initiatives to attract pilgrims to Gangasagar Mela. 

Relevance of the Topic:Prelims: Key facts about the Gangasagar Mela. 

Major Highlights:

  • The slew of initiatives announced by the state government include:
    • participation certificate for pilgrims participating in the annual pilgrimage.
    • e-Anushandhan (pilgrims can access facilities at the mela ground)
    • e-Parichay (QR code-enabled identity band) to prevent missing people in the mela crowd. 
  • The state government has been pushing for a “national mela” status for the Gangasagar Mela for several years.
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About Gangasagar Mela

  • Gangasagar Mela (Gangasagar Yatra) It is an annual religious festival held on Sagar Island in the state of West Bengal.
  • It is held at the confluence of the Ganga with the Bay of Bengal in West Bengal.
    • Travelling a distance of approximately 2,525 km from Gangotri (the originating place), Ganga ends her journey in Sagar Island where it merges with Bay of Bengal.
  • The festival typically starts a few days before Makar Sankranti and concludes shortly after.
    • Makar Sankranti is a highly auspicious occasion in Hinduism, marked by the transition of the Sun into the zodiac sign of Capricorn (Makara Rashi). 
  • Rituals:
    • Devotees participate in rituals such as taking a holy dip in the Ganga, offering "Arghya" (water) to the Sun God and performing "Deepdan" (lighting lamps), seeking liberation (moksha) and spiritual upliftment.
    • It is considered the second-largest religious gathering in India, following the Kumbh Mela.
  • Religious significance: It is believed that a dip in the Ganga at Sagar Island during this auspicious time is equivalent to the merit of performing 100 Ashwamedha Yagnas (a grand Vedic ritual).

Historical mention of the Fair

  • Gangasagar is mentioned in the Mahabharata's Vana Parva, which provides proof of the existence of the pilgrimage site in 1500–2000 BC.
    • According to the Mahabharata, Kapilmuni - the progenitor of Samkhya philosophy, had an ashram at Gangasagara. 
  • Gangasagar pilgrimage is also mentioned in Raghuvaṃśa, a Sanskrit epic poem written by the great poet Kalidasa in the fifth century AD.
  • King Devapala of the Pala dynasty mentions in an inscription that he performed rituals at the confluence of the Gangasagar. 

India’s Diaspora: Significance and Challenges

Context: The 18th Pravasi Bharatiya Diwas was celebrated on January 9, 2025. India boasts the largest diaspora globally contributing significantly to their host and home countries. India needs to formulate a dynamic and comprehensive migration policy, aligned with national priorities. 

Relevance of the Topic: Mains: India’s Diaspora: Significance and Challenges.

Indian Diaspora

  • According to the UN World Migration Report 2024, India boasts the largest diaspora globally, nearly 18 million.
  • According to India’s Ministry of Foreign Affairs, as of May 2024, the total number of overseas Indians worldwide is approximately 35.42 million, which includes about 15.85 million non-resident Indians (NRIs) and nearly 19.57 million individuals of Indian origin (PIOs).
  • The United States is home to the largest Indian population in the world (totalling 5.4 million people), followed by the United Arab Emirates (UAE). 
  • Indian immigrants have made significant contributions across various sectors, with over 20 CEOs of Indian origin leading Fortune 500 companies as of 2024.
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Significance of the Indian Diaspora

1. Political significance:

  • Pressure group:  Diasporas often mobilise networks and resources to support a certain cause in either their homeland or their host countries. E.g., lobbying for favorable visa policies and the U.S.-India Nuclear Deal.
  • Political position: Many people of Indian origin hold top political positions in foreign countries. E.g., Kamala Harris- USA Vice President. 

2. Economic significance:

  • Remittance: India received remittance of $129 billion in 2024, the highest in the world. 
  • Tackle disguised unemployment: Migration of semi-skilled labour has brought down the disguised unemployment. 
  • Rich source of FDI: FDI from diaspora is strongly influenced by diaspora’s affinity for their culture in the homeland.
  • Transfer of tech and innovation: Indian IT sector is an example of a brain gain effect. The diaspora was instrumental in bringing skills, human and social capital, and networks needed to grow the sector in India.
  • Facilitated trade agreements: Globalisation and strong diaspora communities have facilitated increased stipulation of preferential international trade agreements.

3. Foreign Policy: 

  • Institutionalisation of Diaspora-diplomacy is indicative of prominence of the role played by diaspora in foreign policy formulation. Thus, they act as an instrument of Soft-power and meet the limitations of hard-power. E.g., Senate India Caucus i.e., is a bipartisan coalition that promotes relations between the US and India.
  • Act as a bridge between India and their host countries facilitating trade, investment, and cultural exchange. 

4. Cultural significance:

Spread of Indian culture and tradition- Yoga, Ayurveda, Indian cuisine etc. increases India’s soft-power. 

Challenges faced by Indian Diaspora: 

  • Brain Drain causes India loss of talent in the areas of research and development.
  • Heterogeneous Diaspora: Indian diaspora has different demands from the Indian government. E.g., Low-skilled laborers in Gulf countries seek welfare support while service professionals (in West) look for streamlined visa and taxation policies​. 
  • Issues arising out of Protectionism: Increase in incidences of hate crimes against Indian community and restrictive immigration policies (skilled Indian workers are viewed as taking native jobs). E.g., Denial of H-1B visas in the U.S.; attacks on Indians in Australia.  
  • Geopolitical Instabilities threaten the life and livelihood of the diaspora. E.g., Conflicts in regions like West Asia etc. 
  • Negative impacts: Some sections of India’s diaspora have indulged in negative campaigning and funding separatist groups in India such as Pro-Khalistan groups in Canada and Punjab.
  • Policy and Structural gaps:
    • Lack of dual citizenship provision in India’s constitution forces many of India's diaspora to quit India’s citizenship, despite wanting to be Indian citizens.
    • No clear policy on diaspora despite their socio-economic contributions to India’s development.
    • Lack of updated Database: Ministry of External Affairs does not have updated data on Indian diaspora, as registration with Indian Embassies is voluntary. In the absence of such a database, welfare schemes may not be implemented properly.
    • Emigration Management Bill, 2022 has been under consultation and vetting for a long time. It seeks to establish an emigration framework, liberalise clearances, and strengthen welfare for overseas migrants.
    • NRI Marriages: Increasing cases of women being deserted in NRI marriages. Registration of Marriage of Non-Resident Indian Bill, 2019 has not been enacted yet.
    • Complex grievance redressal mechanism: Several portals such as e-Migrate, and Centralised Public Grievance Redressal and Monitoring System (CPGRAMS) are in place to resolve grievances of Indian nationals abroad. Multiple portals may delay grievance resolution due to duplication of work.
  • Selective engagement: Exclusion of large sections of low-skilled and less wealthy diaspora from forums such as Pravasi Bharatiya Diwas etc.
  • Challenges to Philanthropy: Despite the eagerness of PIOs/OCIs to donate generously, they face challenges such as FCRA, bureaucratic compliance and even hostilities, frustrating their efforts to contribute to the development of India.

Way Forward

  • Formulation of a clear diaspora policy (Emigration Management Act) to serve as a guiding principle for engagement with diaspora. It should emphasise on diaspora welfare, dual citizenship, and streamlined grievance mechanisms like CPGRAMS​.
  • Portal for self-registration of diaspora, which would reflect updated databases and allow the Ministry to effectively implement welfare schemes.
  • Diaspora Engagement: Events like Pravasi Bharatiya Divas should be more inclusive, ensuring representation from low-skilled and marginalised diaspora groups.
  • Comprehensive rehabilitation scheme in coordination with the concerned Ministries, departments, state governments, and stakeholders, to ensure livelihood security for workers, who lost their jobs or are unable to return to their place of employment.
  • Establish overseas One-Stop Centres to help distressed NRI women.
  • Negotiating Standard Labour Export Agreements with the host countries. Monitoring and supervision of our overseas workers by our Missions. Compulsory insurance schemes cover the risks faced by our overseas workers.
  • The government should consider setting up Special Economic Zones, exclusively for projects to be set up by NRIs/PIOs. Consider issuing special infrastructure bonds for attracting NRI/PIO investments, like the Israel Bonds.

The Indian diaspora is a robust asset contributing to India’s soft power and economic growth. India should formulate a new NRI policy, evacuation policy and foster good engagement to address their diverse challenges. 

Greenland: The island of US interest

Context: Recently, the U.S. President-elect Donald Trump said he would not rule out the use of military force to seize control of the Panama Canal and Greenland, as he declared U.S. control of both to be vital to American national security.

Relevance of the Topic:Prelims: Key facts about Greenland. 

About Greenland

  • Greenland is the world’s largest island with a population of 57,000. Almost 80% of it is covered by the ice cap and glaciers.
  • It is surrounded by the Atlantic Ocean on one side and the Arctic Ocean on the other. 
  • It is the location of the northernmost point of land in the world— Kaffeklubben Island.
  • The climate of Greenland is Arctic, modified only by the slight influence of the Gulf Stream in the south-west.
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Political situation in Greenland

  • The Arctic island is an autonomous territory controlled by Denmark. The citizens of Greenland are European Union citizens.
    • It was colonised by the Danes in the 18th century and has been associated with Europe. 
    • Geographically, it is part of the North American continent and closer to the U.S. than Denmark.
  • Most of Greenland’s foreign, monetary and military policies are dictated by Denmark. Greenland has a Parliament which deals with domestic affairs such as business taxes, immigration, and mining. 
  • The calls for complete independence from Denmark have been rising in the island, especially after the contraceptive scandal between the 1960s and 1990s came to light.
    • Almost 4,500 Inuit women (the indigenous people of Greenland) were forced to wear a contraceptive coil without their consent. 
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Significance of Greenland

1. Global aspirations:

  • New Shipping Routes: 
    • Due to climate change and global warming, glaciers and ice sheets in the Arctic Sea are melting, leading to potentially new shipping routes, which could greatly enhance trade.
    • Russia and China have already agreed to develop new trading routes in the Arctic waters. The countries have developed a subcommittee for cooperation on the northern sea route, which spans 5,600 km from the Barents Sea near Scandinavia to the Bering Strait near Alaska. 
  • Critical Minerals: 
    • The island is also rich in minerals. As per a 2025 survey, 25 of 34 critical raw materials, which are used in EVs and batteries, were found in Greenland. 
    • The melting of almost 28,000 square km of Greenland’s ice sheets makes drilling for oil, gas and other critical raw materials easier. 
    • Greenland has not given out certain mining leases since 2021, fearing the possible environmental and ecological harms to the region.

2. U.S. aspirations in Greenland:

  • Historic:
    • During the Second World War, the U.S. briefly occupied the region and defended it, when Denmark was under siege by Nazi Germany.
      • Noting the region’s geopolitical importance, the U.S. in 1946, after the War, had offered to buy it from Denmark
      • Denmark rejected the offer and ever since Greenland has been a part of the Danish realm with home rule granted to the island in 1979. 
  • Contemporary: 
    • Greenland is important for the U.S. security. The U.S. runs and operates an air base on the island. 
    • With the threat of Russia-China cooperation in the region, annexing Greenland could give the U.S. significant control over the area, letting it decide who gets to run and operate in these strategic waters.
  • Concerns:
    • Trump’s calls to buy/annex Greenland breaks the first and fundamental rule of the UN Charter: recognising the sovereignty of nations
    • With respect to Greenland, the U.S. is going against the NATO agreement as well.
    • Further, Arctic waters are a global common under the UN Convention on the Law of the Sea (UNCLOS). 

Read more: Panama Canal 

President’s invitation box includes South Indian Handicrafts

Context: Indian President’s invitation box for “At home” reception during Republic Day will include handicraft items from South India.

Major Highlights:

  • Every year the President of India hosts an ‘At Home’ reception on the eve of Republic Day at Rashtrapati Bhawan. 
  • Unlike traditional invitation card this year invitation includes a bamboo box along with various handicraft items which are GI tagged (Geographical Indicators) from various South Indian states:
    • Box decorated by Kalamkari Art of Andhra Pradesh
    • Pochampally Ikat from Telangana
    • Ganjifa Art from Mysore
    • Kanjivaram cloth pouch from Tamil Nadu
    • Etikoppaka dolls from Andhra Pradesh.
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Facts about mentioned Handicrafts:

1. Kalamkari Art (Andhra Pradesh):

  • Kalamkari is a traditional Indian art form involving hand-painting or block-printing on fabric, often cotton or silk. 
  • Originating in Andhra Pradesh and Telangana, its name combines "kalam" (pen) and "kari" (work). Intricate designs depict mythology, nature, and folk tales, using natural dyes for vibrant, eco-friendly colors.
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2. Pochampally Ikat (Telangana):

  • Pochampally Ikat is a traditional handwoven textile from Telangana, India, known for its geometric patterns and vibrant colors. Artisans use a unique tie-and-dye technique on threads before weaving. 
  • Renowned for its precision and craftsmanship, Pochampally Ikat represents India’s rich heritage and is often crafted into sarees, dupattas, and home décor items.
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3. Ganjifa art (Mysore):

  • Ganjifa art is a traditional Indian craft involving hand-painted playing cards, popular during the Mughal and Deccan eras
  • Made from cloth or paper, the cards feature intricate designs depicting mythology, flora, and geometric patterns. 
  • Often circular or rectangular, Ganjifa cards are painted with natural pigments, showcasing India's rich artistic heritage.
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4. Kanjivaram (Tamil Nadu):

  • Kanjivaram, or Kanchipuram silk, is a luxurious handwoven silk fabric from Tamil Nadu, India. 
  • Renowned for its vibrant colors, intricate zari work, and durability, it is often used for traditional sarees. 
  • Crafted with pure mulberry silk and gold or silver threads, Kanjivaram symbolises elegance and is treasured for weddings and festive occasions.
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5. Etikoppaka dolls (Andhra Pradesh):

  • Etikoppaka dolls are traditional wooden toys crafted in Etikoppaka, a village in Andhra Pradesh, India. 
  • Made from softwood called "Ankudu," these eco-friendly toys are hand-carved and coated with natural, lacquer-based dyes. 
  • Known for their vibrant colors and smooth finish, Etikoppaka dolls showcase India's artisanal heritage and sustainable craftsmanship.
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Scope for Indian Handicrafts:

  • High global demands: Indian handicraft items are unique in their build, history and decorations, making them highly demanded in the global markets E.g., Madhubani print paintings and Jaipur’s blue pottery. 
  • Expansion of e-commerce: Online websites like Amazon are providing a marketplace for these handicrafts by facilitating both artisans and customers.
  • Tourism extension: Indian Tourism industry is seeking expansion with the rise in UNESCO heritage sites. These arts are promoted as tourism extensions.
  • Government schemes: Schemes like ‘One District One Product’ are promoting local handicrafts in both India and abroad. E.g.; Channapatna toys under ODOP receive government support.
  • Sustainability demand: The world is focusing on reducing solid waste and promoting biodegradable goods. Indian Handicrafts like Bamboo craft from Assam and Etikoppaka toys.

Challenges to Handicrafts in India:

  • Limited market integration: Local Artisans often fail to find an adequate marketplace for their goods. E.g., Traditional Bidriware artisans often rely on local markets, reducing profitability.
  • Competition from machine made clothes: Handicraft items like Kanjivaram and Pochampally Ikat face price competition from bulk made products from machines. Also, cheaper goods made of artificial fiber compete with handicraft goods.
  • Reducing artisans: Artisans are changing their professions due to low profitability of handicrafts creating a void in training of new artisans in the family. E.g., Gujarati Rogan art families are migrating to other professions.
  • Dependence on middleman: Artisans depend on the middle man due to the unregulated and fragmented market of goods making profession less attractive. E.g., Channapatna toy makers often receive a fraction of the retail price.
  • Environmental impact on the raw material of goods impacts the future of arts in a negative manner. E.g., Sandalwood used in many handicraft goods is facing the wrath of climate change.

Suggestions to boost handicrafts:

  • Fashion integration: The handicrafts need to be integrated with the fashion industry with help of NIFT centers. E.g., Banarasi silk sarees and Phulkari embroidery in designer collections.
  • Common market place: There should be a free of cost common market place for the traditional goods and handicrafts to facilitate artisans. E.g., Dilli Haat for regular showcasing of crafts such as Pashmina shawls and Madhubani paintings.
  • Promoting traditional learning with schemes like USTAAD to foster a new generation of artisans.
  • Branding and certification: Handicraft goods to be provided with branding of Geographical Indications to promote their value and artisans profitability.

Conclusion: Indian handicrafts embody cultural heritage and economic potential. Addressing challenges with financial aid, e-commerce, branding, and awareness can preserve traditions, empower artisans, and expand global recognition.

Chabahar port

Context: A meeting between India’s Foreign Secretary and Taliban ruled Afghanistan’s Foreign Minister discussed the resolution of security concerns in trade via Chabahar port of Iran.

About Chabahar Port

  • Chabahar port is located on the Makran coast of Sistan and Baluchistan Province of Iran, at the Gulf of Oman's mouth. It is situated to the west of Iran's border with Pakistan.
  • It is Iran's first deepwater port and the only Iranian port with direct access to the Indian Ocean.
  • In May 2024, India signed a landmark 10-year agreement to operate the Chabahar Port in Iran. Under the agreement, India is to invest $120 million in the development of infrastructure in the Shahid Beheshti terminal at the port and extend a $250 million credit line to Iran.
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Significance of Chabhar Port

  • Strategic location of the Port:
    • Sits at the mouth of Strait of Hormuz Area
    • Connects three regions: Central Asia, South Asia and West Asia.
    • Junction of shipping, oil trade routes
      • Estimated 17 billion barrels of crude oil passes this way daily. 
  • For Iran: Iran envisions Chabahar as a gateway to Central Asia, establishing a free trade zone and robust road and rail links between Chabahar and Central Asia. For Iran, it presents a potential shield against the impact of Western sanctions.
  • For India: Regional Connectivity: 
    • Alternative trade route:
      • It provides India with an alternative trade route, circumventing Pakistan's restrictions on land access for trade with Afghanistan and Central Asia.
      • The route can help connect India with energy-rich Azerbaijan, Turkmenistan and other Central-Asian nations. 
      • This route is 40% shorter, 30% less expensive than the trade via Red Sea-Suez Canal-Mediterranean Sea route. 
    • Chabahar port also provides direct access to India's Farkhor Air Base in Tajikistan, contributing to enhanced regional connectivity.
  • Component of INSTC: Chabahar is also a pivotal component of the proposed International North-South Transport Corridor (INSTC), a comprehensive transportation initiative connecting the Indian Ocean and Persian Gulf to the Caspian Sea through Iran. 
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Security Concerns to Trade via Chabahar Port

  • Security Risk: Chabahar port is surrounded by the various conflicting regions which are under influence of terror groups like Taliban, ISIS, and Tehrik-e Taliban (of Pakistan’s Khyber Pakhtun region) leading to threats of terror attacks.
  • Narcotic crimes: Chabahar is at the Golden Crescent, drug trafficking and narcotic crime led violence leads to threats to trade.
  • Afghan-Pakistan nexus: Close ties of Pakistan’s ISI and Taliban makes Indian participation skeptical.
  • Geopolitical rivalries: Growing Chinese influence in Afghanistan creates a geopolitical environment unfavourable to India, diminishing its strategic influence in the region.
  • Radicalisation and ideological spillover: Taliban’s unclear policies on counter-terrorism could inspire radicalisation in the wider region, especially among vulnerable groups that can destabilise trade via Chabhar. 

Challenges in developing/utilising Chabhar Port

  • Strained US-Iran relationship, exacerbated by Iran's inclusion in the ‘axis of evil’ alongside Iraq and North Korea, compelled India to exercise caution in its dealings with Iran.
    • India's investment in the Chabahar–Zahedan railway was affected by US sanctions. 
    • Despite handling 2.1 million tons of cargo in 2015, sanctions impacted the port's expansion, leading to only 10% utilisation of its 8.5-million-ton capacity in 2019.
  • Obstacles to trade via Chabhahar: 
    • Logistical obstacles to trade, such as Iran’s delay in completing two railway lines – Chabahar-Zahedan and Rasht-Astara — which are necessary for moving cargo from the port and connecting to a planned International North–South Transport Corridor (INSTC).
    • Iran’s lack of access to the SWIFT system of electronic international payments. Iran is also barred from conducting transactions in dollars.

Use of Artificial Intelligence in Defence

Relevance of the Topic: Mains: Detailed question on scope, and challenges regarding AI use in the Defence sector

AI and Defence Integration in India

  • India is at the nascent stage of integration of AI with military technology. One such example is the Indrajal drone defence system.
  • Institutional framework: India has launched an institutional framework for inducting AI with the military in 2022.
    • Defence Artificial Intelligence council chaired by the Defence Minister of India to to provide necessary guidance and structural support. 
    • Defence AI Project Agency (DAIPA) has been created under the Chairmanship of Secretary Department of Defence Production (DDP) for enabling AI based processes in defence Organisations.
  • Listing priorities: In 2022, the government published a list of 75 priority projects related to using AI for defence; these focused on data processing and analysis, cyber security, simulation and autonomous systems, particularly drones.
  • AI embedded centers in armed forces: AI-application centres embedded in each of the three armed-service branches – at the Military College of Telecommunication Engineering, Mhow (Army), the INS Valsura (Navy) and Air Force Station Rajokri (Air Force).
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Scope of AI in Defence sector

  • Autonomous systems: 
    • Defence: AI driven autonomous systems can aid armed forces in difficult operations and prevent casualties. E.g., Indrajaal system on drone defence is based on an autonomous AI system; AI-enabled Robot Sentries.
    • Offence: Can be used to conduct precision strikes and support armed forces in offence. E.g., AI-powered killer robots and Armed UAVs; AI-embedded guided missiles (determines target’s range and adjust flight patterns without human intervention).
    • Surveillance: AI-embedded radars, satellites, software-identification systems can aid in geospatial analysis, detection of illegal or suspicious activities and alerting authorities. E.g., Indian Army uses facial recognition system ‘Project Seeker’ for monitoring, surveillance, and garrison security.
  • Cyber-security: AI can be utilised to timely detect and launch a counter attack on cyber attack.
  • Data Analysis: Defence data is complex like intelligence data, enemy movement, previous trends and strategy analysis can be done effectively with use of AI.
  • Predictive maintenance: AI can be utilized for predicting the maintenance needs to prevent failure during crucial operations.
  • Simulations and training: AI can generate multiple and complex hypothetical situations to train soldiers and operatives for unpredictable threats.
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Risks and Challenges Associated:

  • Security risks: AI based defence technologies are susceptible to hacking and cyber attacks leading to catastrophic results.
  • Ethical questions: AI based decision making in defence can cause collateral damage creating questions of accountability in case of unintended harm.
  • Interoperability issue: Integrating AI across diverse military platforms (aircraft, naval ships, ground vehicles) is complex. Existing systems might not be compatible, limiting its effectiveness.
  • Bias and poor data quality: AI systems rely on data for training, and if the data is biased or incomplete, AI models can produce flawed decisions. E.g., biased training data could lead AI inappropriately identifying enemy targets based on incomplete intelligence.
  • Legal issue: AI based operations lack the global consensus, as AI is not subjected to the Geneva convention, unlike traditional wars and conflicts.

Conclusion: AI in the military offers significant potential for enhancing capabilities, including autonomous systems and cybersecurity. However, it also faces challenges such as security risks, ethical concerns, and technical limitations. A balanced approach involving robust research, international cooperation, and ethical considerations will ensure that AI serves as a strategic asset for defense.

Decoding India’s Growth Slowdown

Context: The National Statistics Office (NSO) released the first advance estimates of India’s Gross Domestic Product (GDP) in 2024-25. It shows a decline in the real GDP growth rate to 6.4% from 8.2% registered in 2023-24. The official diminution of India’s projected GDP growth rate may still be an underestimation of the extent of economic slowdown.

Relevance of the Topic: Prelims: Economic Slowdown- Trend Analysis

Data Discrepancies in GDP Estimates

1. Issues with GDP Deflator:

  • GDP deflator is a weighted average of wholesale and retail price indices. It is used for the estimation of real or constant price GDP to estimate values of GDP components in constant prices.
  • The Wholesale Price Index (WPI), 2011-12 series has shown high volatility over the past decade. The WPI volatility leads to inexplicably large divergences between the WPI and CPI inflation rates.
  • This has had serious implications for the accuracy of the GDP deflator and real GDP estimates.
    • For instance, nominal GDP growth rate was at 14.2% in 2022-23 and 9.6% in 2023-24, which indicated a sharp decline in growth.
      • However, the real GDP growth rate was estimated to have grown from 7.0% to 8.2%, indicating growth acceleration
    • This implied that the GDP deflator was only 1.4% in 2023-24, even as retail inflation was at 5.4%
      • This is because the WPI inflation rate was estimated to have fallen from a high of 9.4% in 2022-23 to a negative of -0.7% in 2023-24. 
    • Thus, because of high volatility in the WPI, the nominal GDP estimate showed a growth deceleration in 2023-24 but the real GDP estimate reflected growth acceleration
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  • IMF Observations:
    • IMF has criticised India’s reliance on WPI as a deflator, recommending Producer Price Index (PPI) for better accuracy.
    • The absence of seasonally-adjusted GDP data and discrepancies between GDP by activity and expenditure hinder real-time economic analysis.

2. Elusive Private Investment:

  • Investment Trends:
    • The latest GDP estimates have shown a significant decline in the growth of real gross fixed capital formation from 9% in 2023-24 to 6.4% in 2024-25. 
  • Irrational official expectations:
    • Economic Survey 2023-24 indicated a vigorous expansion of investment by the private-sector. 
    • However, the Chief Economic Advisor highlighted the sluggish corporate investments in machinery and equipment and intellectual property products. 
    • The Union Budget over-relied on private corporate investment for massive job creation through ‘Prime Minister’s Package for Employment and Skilling’.
    • A longer view of India’s growth trajectory over the past decade shows the irrationality of official expectations.
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3. Sectoral Trends:

  • Downward trends in manufacturing, mining, construction, and key services sectors.
  • Only public administration, defence, and other government services show increased growth, emphasizing the role of public expenditure.
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4. Fiscal Challenges:

  • Tax revenue growth has slowed, with only 56% of the annual target achieved by November 2024.
  • Less than half of the budgeted capital expenditure (₹11.11 trillion) was utilised during the same period.
  • Balancing fiscal consolidation with growth-enhancing public spending remains a critical challenge.
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Way Forward: Balancing Growth with Fiscal Discipline

  • Economic slowdown has disrupted budgetary plans by slowing down tax revenue growth. Adhering to the fiscal consolidation path would imply a squeeze on public spending, including capital expenditure. This in turn would further aggravate the slowdown. The way out is to rework the revenue mobilisation strategy by enhancing taxation on wealth and profits in order to enhance capex and welfare spending.

Sedition law: Section 152 of BNS

Context: The Rajasthan High Court, in Tejender Pal Singh v. State of Rajasthan (2024) has raised caution about the misuse of Section 152 of the Bharatiya Nyaya Sanhita (BNS) to stifle legitimate dissent.

Relevance of the Topic: Mains: Challenges posed by Section 152 of BNS to citizens rights and freedom. 

Background:

  • Section 152 of BNS: 
    • Section 152 of BNS criminalises acts related to secession, rebellion, and activities endangering national integrity. 
    • Whoever, purposely or knowingly, by words, either spoken or written, or by signs, or by visible representation, or by electronic communication or by use of financial mean, or otherwise:
      • excites or attempts to excite, secession or armed rebellion or subversive activities
      • encourages feelings of separatist activities or endangers sovereignty or unity and integrity of India indulges in or commits any such act.
    • shall be punished with imprisonment for life or with imprisonment which may extend to seven years, and shall also be liable to fine. 
  • Section 152 of BNS has its genesis in Section 124 A of Indian Penal Code, 1860 (IPC).
  • Despite the Supreme Court’s suspension of sedition trials under Section 124A of the IPC in 2022 and verbal assurances from the government regarding the repeal of sedition, Section 152 of BNS has retained elements that can serve as a proxy for sedition

Problems with Section 152 of BNS

  • Vagueness and expansive interpretation:
    • Section 152 criminalises ‘acts endangering the sovereignty, unity, and integrity of India’ without clearly defining what constitutes such endangerment.
    • This vagueness creates scope for expansive and subjective interpretations by law enforcement. E.g., A speech criticising a political figure or sympathising with a controversial ideology could be construed as endangering unity, leading to legal action.
  • Lower threshold for offence – Use of ‘Knowingly’:
    • The inclusion of the term ‘knowingly’ in Section 152 lowers the threshold for prosecution. 
    • Even if a person does not intend to incite secession or rebellion, merely sharing a post on social media with the knowledge that it might provoke such feelings can result in arrest.
  • Chilling effect on freedom of expression: 
    • Since Section 152 is a cognisable and non-bailable offence, individuals can be arrested without sufficient prima facie evidence, leading to harassment, prolonged detentions, and a chilling effect on free speech.
  • Scope of Misuse: 
    • According to NCRB data, between 2015 and 2020, out of 548 persons arrested under Section 124A IPC, only 12 people were convicted. The broader scope of Section 152 suggests the potential for even higher misuse.
  • Absence of Safeguards Against Misuse:
    • Unlike Section 124A, which had judicial interpretations limiting its misuse, Section 152 lacks clear statutory safeguards as of now.

Argument of Government for Section 152 of BNS: 

  • The government has argued that there is a notable distinction between IPC Section 124A and BNS Section 152.
    • While IPC Section 124A deals with acts against the Government.
    • BNS Section 152 shifts the focus to actions endangering the sovereignty, unity, and integrity of India.
  • Colonial interests have been replaced by needs of the democratic interests in Independent India.
  • Criticism of the Government policies and actions are not punished under the new law. The requirement of ‘intent’ in law further raises the threshold for applicability of the provision.

Judicial approach and precedents in case of Section 124A of IPC:

  • Kedarnath Singh v. State of Bihar (1962): The Supreme Court upheld the validity of sedition law but restricted its application to cases where speech incites violence or public disorder by differentiating between ‘disloyalty to the government’ and ‘strong criticism of government policies’.
  • Balwant Singh v. State of Punjab (1995): The Court acquitted individuals for shouting slogans like “Khalistan Zindabad”, as it found no direct link between the slogans and any actual threat to national integrity.
  • Javed Ahmad Hazam v. State of Maharashtra (2024): The Court ruled that the impact of words must be judged from the perspective of reasonable and courageous individuals, not overly sensitive or weak-minded persons.
  • D.K. Basu v. State of West Bengal (1997): The Supreme Court laid down guidelines for arrest and detention, ensuring personal liberty is not infringed arbitrarily.

Way Forward

  • Judicial guidelines for Section 152: The Supreme Court should frame specific guidelines for the enforcement of Section 152, ensuring clear demarcation of what constitutes an offence.
    • Similar to D.K. Basu v. State of West Bengal, guidelines should focus on protecting personal liberty and preventing arbitrary arrests.
  • Statutory safeguards: Parliament should consider incorporating statutory safeguards in the BNS to prevent abuse regarding:
    • Mandatory judicial oversight before initiating arrests.
    • Requirement for prima facie evidence of incitement or public disorder.
  • Promoting a marketplace of ideas: Drawing on Justice Holmes’ concept of the ‘marketplace of ideas’ (Abrams v. United States), liberal spaces for thoughts, beliefs, and dissent must be preserved. In a democracy, the best way to test the validity of ideas is through free and open discussion.
    • In the age of social media, it is critical to protect speech while maintaining a balance with national security.

While national security is paramount, laws like Section 152 of BNS must not be allowed to become instruments for curtailing free speech. Ensuring checks against misuse and protecting personal liberty are essential in safeguarding democratic values. The judiciary, through its careful interpretation and well-defined guidelines, can play a pivotal role in striking this balance.

Background of Section 124A of IPC: 

  • Section 124A: Sedition: Whoever by words, either spoken or written, or by signs, or by visible representation, or otherwise, brings or attempts to bring into hatred or contempt, or excites or attempts to excite disaffection towards, the Government established by law in India, shall be punished with imprisonment for life, to which fine may be added, or with imprisonment which may extend to three years, to which fine may be added, or with fine. 

Judicial Pronouncements to restrict the application of Section 124A of IPC:

  • Kedarnath Singh v. State of Bihar (1962): The Supreme Court upheld the constitutional validity of Section 124A but limited its application.
    • Criticism of the government, unless it incites violence or public disorder, cannot be considered sedition.
  • Balwant Singh v. State of Punjab (1995): Merely shouting slogans (e.g., "Khalistan Zindabad") without incitement to violence does not constitute sedition.

Criticism of Sedition Law: 

  • Restricts Freedom of expression: The law infringes upon Article 19(1)(a), which guarantees freedom of speech and expression.
    • E.g.: Cartoonist Aseem Trivedi (2012) was charged for depicting political corruption in his cartoons.
  • Vagueness: Phrases like "disaffection" and "visible representation" are vague, leading to subjective interpretation and potential misuse.
    • E.g.: Disha Ravi (2021), a climate activist, was arrested for allegedly sharing a toolkit related to the farmers' protests.
  • Misuse to curb political dissent: Often used as a tool to suppress dissent and target critics of the government.
    • Vinod Dua (2021), a journalist, was charged with sedition for criticizing the handling of the COVID-19 crisis. The Supreme Court later quashed the FIR.
  • Overzealous application of this law to please political masters (important particularly considering the lack of police reforms)

Subsequently, Section 124A of IPC has largely been retained in the form of Section 152 in the new Bhartiya Nyaya Samhita.

Idea of Dual Citizenship in India

Concept of Citizenship in India

  • India follows the single citizenship provision. In the Constitution of India, Part II i.e., from Article 5 to Article 11 deals with the provisions of Citizenship. 
  • Article 11 empowers the Parliament to make statutes and provisions for citizenship. In line with the Article, the Parliament has passed the Citizenship Act 1955 which was amended from time to time.
    • Recent notable amendments of the act were the Citizenship Amendment Act 2003 that introduced the concept of Overseas Citizen of India (OCI), mandatory National Register of Citizens (NRC) and automatic termination in case of dual citizenship.
    • Further, Citizenship Amendment Act 2019, simplified the process and reduced the time for naturalisation for certain minority communities of Pakistan, Bangladesh and Afghanistan who entered India on or before 2014.
Concept of Citizenship in India

Modes to gain Indian Citizenship

  • By Birth: A person born in India, with certain exceptions, is an Indian citizen.
  • By Descent: A person born outside India to Indian citizen parents is eligible for Indian citizenship.
  • By Registration: Persons of Indian origin, spouses of Indian citizens, and minors can apply for citizenship after meeting residency criteria.
  • By Naturalisation: Foreign nationals can acquire citizenship after 12 years of continuous residence in India.
  • By Incorporation of Territory: People from newly incorporated territories in India may acquire citizenship.
  • Under CAA, 2019: Persecuted religious minorities from Pakistan, Bangladesh, and Afghanistan can acquire Indian citizenship after 5 years of residence.

Indian stand on Dual Citizenship

  • Indian Constitution and the Citizenship Act 1955 and following amendments do not allow dual-citizenship for Indians. 
  • Instead of dual citizenship, India offers the Overseas Citizenship of India Card, which provides for lifetime visa-free travel to India, right to work in India, except in government services and rights to own property, except purchase of agriculture property. Also, OCI cards do not ensure political rights like voting and holding public offices. 

Arguments against Dual-Citizenship in India

  • Security of India: Dual citizenship can complicate India’s control over national security, especially if individuals holding citizenship of hostile nations misuse it. 
  • Enforcement of law: There can be a complication to enforcing laws especially criminal laws as there can be a discrepancy between the criminal laws and degree of punishment between two nations.
    • Eg., In a hypothetical situation if a person enjoys citizenship of both India and France then it can be tough to punish such a person with life imprisonment and capital punishment as France does not have provisions for capital punishment.
  • Economic concerns: Dual citizens can exploit provision of subsidies and benefits without being fully participating in the Indian economy.
  • Dilution of loyalty: Dual citizenship can dilute loyalty and identity of a national, restraining one from participating in a nation during a situation of crisis.
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Reasons, India offers OCI instead of Dual-citizenship: 

  • Middle ground: The OCI is a middle ground of having citizenship rights and enjoying liberty to enjoy citizenship of other nations.
  • Ensuring economic control: OCI card holders cannot purchase agricultural land that makes their economic participation under control.
  • Ensuring political stability: OCI card holders do not have voting rights so it makes it feasible for the government to ensure limited political participation of people with India origin.
  • Administrative ease: Clear demarcation of rights and duties of OCI makes law enforcement easy without any complication and conflict with international law.

Conclusion

‘Citizenship is a right for having rights’, While dual citizenship is appealing to many, particularly the Indian diaspora, the government has avoided it due to concerns over sovereignty, security, and administrative challenges. The OCI card is India’s alternative, balancing diaspora connections without compromising national interests. As of now, India’s stance remains cautious, with no immediate plans to allow dual citizenship.