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In a controversial move, the Union government introduced a Bill to remove the Chief Justice of India (CJI) from a panel to select the Chief Election Commissioner and Election Commissioners.
Instead of the CJI, the three-member panel would now have a Union Cabinet Minister, besides the Leader of the Opposition in the Lok Sabha and the Prime Minister, who would head it.
The Chief Election Commissioner and other Election Commissioners (Appointment, Conditions of Service and Term of Office) Bill, 2023, was introduced by Law Minister Arjun Ram Meghwal in the Rajya Sabha amid din over Manipur.
The Opposition was quick to point out that this will put a question mark on the neutrality of the Election Commission (EC) as the selection panel would effectively have two members of the BJP — the Prime Minister and the Cabinet Minister.
The EC would see a vacancy in February next year when Election Commissioner Anup Chandra Pandey demits office, possibly days before the announcement of dates for the 2024 Lok Sabha election.
States
ISRO gears up for soft landing of Chandrayaan-3 (Page no. 4)
(GS Paper 3, Science and Technology)
Ahead of the soft landing of Chandrayaan-3 on the lunar surface, Indian Space Research Organisation (ISRO) has released two images taken by the spacecraft.
The first image is of the earth as viewed by the Lander Imager (LI) camera. The photo was taken on July 14, when the Chandrayaan-3 mission was launched from the Satish Dhawan Space Centre in Sriharikota.
The second image is of the moon captured by the Lander Horizontal Velocity camera (LHVC) on board the spacecraft on August 6.
ISRO posted on social media platform X (formerly Twitter): “Chandrayaan-3 Mission: Earth viewed by Lander Imager (LI) Camera on the day of the launch, Moon imaged by Lander Horizontal Velocity Camera (LHVC) a day after the Lunar Orbit Insertion.”
LI camera was developed by Space Applications Centre, Ahmedabad, Gujarat, and LHV camera by the Laboratory for Electro-Optics Systems, which is based in Bengaluru.
ISRO had earlier released a video of the moon, as viewed by Chandrayaan-3 during Lunar Orbit Insertion, which took place on August 1.
Meanwhile, in the run-up to the Chandrayaan-3 lander’s soft landing on the moon’s surface on August 23, the ISRO has carried out an assessment of the current space situation around the moon.
The space agency stated that the moon and Mars are the most explored and also comparatively more crowded planetary bodies.
It added that India’s Chandrayaan-3 is the latest entry into lunar orbit and more intensified activities around the moon are foreseen in the next few years due to the renewed interest in lunar exploration, heralded by Artemis missions for return to the moon and preparations for colonisation of Mars.
Editorial
India’s Myanmar quandary, its paradoxical policy (Page no. 10)
(GS Paper 2, International Relation)
July 31 and August 1 will be recorded as the crucial dates when the history of Myanmar’s ongoing tragedy was written. In the first case, the acting President of Myanmar, Myint Swe, announced the fourth extension of the ‘emergency’ for another six months, which is in violation of the 2008 Constitution.
In the second instance, the military regime decided to release several political prisoners and even reduced the sentences imposed on Daw Aung San Suu Kyi and the deposed President Win Myint. Ms. Suu Kyi was also moved out of prison to house arrest. However, these developments do not signal the dawn of a democratic and peaceful Myanmar.
The extension of the emergency further delays the elections proposed by the military. Min Aung Hlaing, the coup orchestrator, justified the extension due to the failure to establish ‘normalcy’ in large parts of the country.
However, it is this pursuit of ‘normalcy’ that has resulted in suffering, with ACLED, or the Armed Conflict Location & Event Data Project (a disaggregated data collection, analysis, and crisis mapping project) reporting that Myanmar civilians witness two and a half times more violence than those in Afghanistan.
The military regime’s relentless campaign includes an average of over 30 airstrikes per month in 2023. Surprisingly, the Tatmadaw (the military of Myanmar) exerts real control in only 30%-40% of the territory, as in admissions from the Burmese military and a report of the Special Advisory Council for Myanmar (SAC-M).
A factitious national election would lead to the loss of further credibility if it is conducted only in a third of the country.
Moreover, the reshuffling within the military-backed Union Solidarity and Development Party (USDP) under Khin Yi, is aimed at adding more military hard-liners, further raising concerns about the junta’s commitment to democracy.
The decision by the National League for Democracy decision not to participate in the new elections, combined with the exclusion of smaller parties through the new party registration laws, leaves no viable opposition to the USDP in a parliament whose constitutional structure gives the military a practical veto.
Opinion
Should there be a blanket ban on smartphones in schools? (Page no. 11)
(GS Paper 2, International Organisation)
India has 1.2 billion mobile phone users and over 600 million smartphone users. That figure is expected to cross a billion by 2026, according to a Deloitte study, indicating that a future world will be dependent on these small devices.
However, one place where smartphone usage has become controversial is the classroom. Last month, UNESCO recommended a universal ban on the usage of smartphones in schools, saying that it was needed to tackle classroom disruption, improve learning, and help protect children from cyberbullying.
In an advisory dated August 10, titled “Restrictions on the use of mobile phones in school premises under rule 43 of DSER 1973”, the Directorate of Education, Private School Branch, Government of National Capital Territory of Delhi, has highlighted the need for all stakeholders connected with school education such as students, parents, teachers and heads of schools “to arrive at a consensus on the minimum use of mobile phones in the school environment so that a more meaningful learning atmosphere could be maintained in the classroom”.
UNESCO has clearly warned against an uncritical rush towards embracing digital products in educational settings. There is some evidence of digital technology’s added value in education.
But there is a clear threat also, with the report highlighting that mere proximity to a mobile device was found to distract students.
This is more than sufficient for us to understand that mobile phones should not be allowed in the education system. When you speak about the future and say that it will be completely dependent on technology, to my understanding, the future is in our hands. And certainly we want to create a safe future for our learners.
Explainer
China’s deflation; a cause for concern? (Page no. 12)
(GS Paper 3, Economy)
Consumer prices in China declined for the first time in over two years in July. The consumer price index declined 0.3% in July from a year earlier, leading to calls for steps to boost demand.
Producer prices also dropped for the 10th consecutive month, contracting 4.4% in July. This is in contrast to the rest of the world where inflation has been the most pressing problem of late.
Deflation is a term that is used these days to refer to a general fall in the prices of goods and services in an economy. The definition of deflation, however, has not always remained constant. In the past, the terms inflation and deflation were used to refer to a rise or a fall, respectively, in the money supply rather than a rise or fall in prices.
A rise in the money supply was expected to contribute to higher prices in the wider economy while a fall in the money supply was believed to lead to lower prices.
Many economists believe that deflation is a sign of falling demand for goods and services which could lead to a slowdown in economic growth.
According to them, the demand for goods and services is the driver of economic growth. Falling prices, can also push buyers to postpone their purchases expecting lower prices in the future; this in turn can further dampen demand in the economy, they argue.
A certain degree of inflation is believed to be necessary for the full utilisation of the resources in an economy. Further, it is said that deflation can lead to business losses and lower growth as costs remain sticky.
It can also mess up credit contracts as borrowers will have to pay back lenders more in real terms. Hence, these economists recommend that the Chinese government and the Chinese central bank should take the necessary steps to boost demand in the economy.
Will the Federal fund hike impact developing country debt? (Page no. 12)
(GS Paper 3, Economy)
In the recently concluded Federal Open Market Committee meeting on July 26, 2023, the targeted federal funds rate was raised to 5.25-5.5%, a 25 basis points increase.
This puts the rate at a 21-year high, surpassing the levels seen in 2001. Fed Reserve President Jerome Powell addressed the press conference and explained that the decision was aimed at reducing inflation to 2%. Despite the interest rate hike, he pointed out that employment numbers have been on the rise.
The federal funds rate, currently set between 5.25% to 5.5%, plays a crucial role in the economy as it determines lending rates among banks.
Following the global financial crisis, rates were near zero until 2015. However, with the pandemic, rates dropped to 0.05%. Since March 2022, there has been a steady increase in the rate, leading to concerns about the world economy's ability to withstand such a sharp rise of more than 450 basis points within a year. The Federal Reserve intervenes in the market through bond purchases or sales to maintain the targeted rate range.
The rest of the world faces a different situation compared to the green shoots of growth seen in the U.S. economy; they are yet to come out of the pandemic and are battling with growing debt servicing concerns.
The large-scale expansion of the balance sheets of the advanced country central banks since the global financial crisis had reduced interest rates to abysmally low levels.
This has facilitated carry trade, with agents borrowing in dollars and investing in emerging markets to benefit from interest margins due to the higher interest in developing countries.
Between 2011 and 2016, external debt stocks in low and middle-income countries doubled, reaching 181.1% of their GDP. By 2020, it exceeded 200% of their GDP.
News
J&K surrendered its sovereignty to India ‘absolutely, completely’: SC (Page no. 15)
(GS Paper 2, Judiciary)
Chief Justice of India D.Y. Chandrachud, heading a Constitution Bench hearing petitions challenging the abrogation of Article 370, said Jammu and Kashmir ceded its sovereignty to the Dominion of India “absolutely and completely”.
“It was no conditional surrender of sovereignty to the Dominion of India. The surrender of sovereignty was absolutely complete,” Chief Justice Chandrachud observed orally.
The restraint on Parliament to enact certain laws in Jammu and Kashmir was akin to limitations on enacting laws on subjects on the State List of the Indian Constitution.
Limitations placed on the legislative power of the Parliament cannot be construed to mean that Jammu and Kashmir, unlike other princely states which ceded to the Dominion and became full-fledged States under the Constitution, retained its sovereignty, the Chief Justice noted.
The distribution of legislative power does not affect the fact that sovereignty vests in India. But merely because Parliament is disabled from touching a State List item while enacting a law, does not detract from the fact that all these States had once ceded their sovereignty to the Dominion of India.
The court was reacting to arguments that the “special autonomous status” granted to Jammu and Kashmir and retention of “residuary legislative powers” in the State were clear indications that Jammu and Kashmir retained an element of sovereignty.
India, Japan studying ways to restart trilateral cooperation with Sri Lanka (Page no. 16)
(GS Paper 2, International Relation)
More than two years after Sri Lanka cancelled a joint India-Japan MoU for the East Container Terminal (ECT) project in Colombo, the three countries are studying ways of restarting trilateral cooperation, envoys at a conference said in New Delhi.
The cancellation of the MoU, estimated at about $500 million, and the suspension of the Japanese-funded light rail transit (LRT) project by the previous Gotabaya Rajapaksa government, had led to a freeze in ties between Tokyo and Colombo.
With India and Japan coming to Sri Lanka’s rescue during last year’s economic crisis, and offering assistance with Sri Lanka’s debt restructuring process, the Ranil Wickremesinghe government has also sought the return of infrastructure project plans and investment from both countries. This was the message sent during President Wickremesinghe’s visit to Delhi last month, and to Japanese Foreign Minister Hayashi, who visited New Delhi and Colombo last week.
Some projects in Sri Lanka which were to be executed jointly by India and Japan did not progress due to several reasons, but that should not deter us in exploring new cooperation.
India and Japan share a vision of a Free Open and Inclusive Indo-Pacific [FOIIP], which is of relevance to all countries in the region including Sri.
Business
MPC holds rates, lifts FY24 inflation forecast to 5.4%; retains growth view (Page no. 17)
(GS Paper 3, Economy)
The Monetary Policy Committee (MPC) of the Reserve Bank of India decided unanimously to keep the policy repo rate unchanged at 6.5% even as it raised the projection for retail inflation in the current fiscal year by 30 basis points to 5.4%.
The MPC also decided by a majority of 5 out of 6 members to stay focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.
Headline inflation, after reaching a low of 4.3% in May 2023, rose in June and is expected to surge during July-August led by vegetable prices,” observed RBI Governor Shaktikanta Das, explaining the MPC’s rationale.
While the vegetable price shock may reverse quickly, possible El Niño weather conditions along with global food prices need to be watched closely against the backdrop of a skewed south-west monsoon so far. These developments warrant a heightened vigil on the evolving inflation trajectory.
The cumulative rate hike of 250 basis points undertaken by the MPC is working its way into the economy. Nonetheless, domestic economic activity is holding up well and is likely to retain its momentum, despite weak external demand.
The MPC retained its projection for real GDP growth in 2023-24 at 6.5%. The CPI inflation projection for 2023-24, assuming a normal monsoon, was revised upwards to 5.4% from the 5.1% forecast in June, with Q2 at 6.2%, Q3 at 5.7%, and Q4 at 5.2%.