Why India needs deep industrialization

Key Highlights:

• India’s long battle with industrialization in spite of numerous reform initiatives.
• a suggestion to move from manufacturing to high-skill services-led growth.
• criticism of conventional industrial policy for failing to solve trade imbalances and unemployment.
• challenges brought on by the service sector’s inequality and low employment elasticity of services-led growth.
• Effects of unequal educational opportunities on economic inequality and job market results.
• India’s industrial stagnation is a result of cultural influences, such as the devaluation of particular professions and abilities.
• The value of widespread knowledge and our ability to absorb information as a group for innovation and economic growth.

Key Challenges:

• Low employment elasticity of growth driven by services.
• disparities in the service industry, especially with regard to pay.
• unequal access to training in skills and education, which exacerbates socioeconomic divides.
• The negative cultural perceptions of particular professions impede the advancement of innovation and industry.
• Absence of widespread education and a general inability to absorb new technologies.

Facts and Data:

• India’s manufacturing output and employment share has remained below 20% and has been stagnating.
• India has been experiencing a growing trade deficit, primarily due to imports.
• Compared to the manufacturing sector, the service industry has more inequality.
• When it comes to education, India is among the most unequal nations on the planet.

Evaluate Critically:

• The article offers a critical analysis of India’s past industrialization attempts as well as their shortcomings.
• It challenges established theories of industrial policy and presents a thought-provoking substitute based on high-skill services.
• The research gains depth from the critique of service sector inequality and its effects on socioeconomic disparities.
• India’s industrial standstill can be attributed to cultural elements that offer important insights into the country’s larger problems.

Way Forward:

• Stress the importance of an all-encompassing strategy for economic growth that takes into account the expansion of the service sector as well as industrialization.
• To increase the ability of the collective to absorb information and to foster innovation, invest in mass education and skill development.
• To encourage naturally occurring innovation in manufacturing, reexamine societal perceptions of particular professions.
• Make sure that inclusive growth and inequality reduction are given top priority in economic strategies.

From Europe to India, why are Farmers angry?

• Around the world, farmers are organizing protests against a variety of topics, such as environmental laws and the reduction of subsidies.
• Across continents, there is discontent that reflects a common struggle against issues affecting agricultural livelihoods.

Farmers Protests: Worldwide Extent

• Europe: To protest subsidy cuts, high energy prices, and cheap imports, farmers in a number of EU member states, including Belgium, France, Germany, and Spain, have used strategies like tractors in city invasions and shop raids. They demonstrate against EU environmental measures, such as programs to reduce pesticide use and restore natural areas, which are intended to achieve net-zero emissions by 2050.
• South America: Due to droughts and economic downturns, protests spread throughout 67% of the continent. Brazilian farmers mobilized against the unfair competition posed by genetically modified maize.
• In Europe, protests against low crop prices and growing costs were observed in 47% of the countries. French farmers were particularly against cheap imports and insufficient subsidies.
• North and Central America: Thirty-five percent of the countries saw protests; Mexican farmers protested low prices, while Costa Rican farmers, in debt, sought government assistance.
• Africa: Poor pricing and high production costs caused demonstrations in 22% of the countries; Cameroonian farmers opposed export limits on cocoa, while Kenyan potato farmers demanded higher prices.
• Australian farmers opposed proposed high-voltage powerlines, while New Zealand farmers demonstrated against government controls.

Government Responses

• Germany and France have conceded by reversing the reductions in gasoline subsidies and phasing them off gradually.
• Ahead of elections, climate policies are being changed, and EU lawmakers have voted against proposed pesticide regulations.
• Plans to restore nature have been postponed for the time being.

Issues Prompting Indian Protests

• In line with a 2021 agreement, Indian farmers want legal protection for minimum support prices (MSP) and an expansion of MSP coverage beyond rice and wheat.
• Climate shocks and the import of inexpensive beans and edible oil have affected farmer incomes.
• Higher import taxes, modifications to crop insurance, higher-quality seeds, debt forgiveness, and social security benefits are some more demands.

Conclusion

• Global farmer protests are an expression of a united front against policies that affect agricultural livelihoods and sustainability as well as environmental laws and economic challenges.
• To address these issues and protect farmer welfare and agricultural resilience, broad policy changes and proactive government actions are needed.

Supreme Court Strikes Down Electoral Bonds Scheme

• In a landmark decision, the Supreme Court ruled unanimously that the electoral bonds program was “unconstitutional and manifestly arbitrary.”
• A five-judge Constitution Bench led by Chief Justice of India (CJI) DY Chandrachud unanimously overturned the plan, citing excessive limitations and violations of voters’ rights to information.

Important Justifications for Ending the Election Bonds Program

Right to Information (RTI) Violation

• The petitioners emphasized that voters have a right to information about political party funding and claimed that the plan violates that right under Article 19(1)(a) of the Constitution.
• The administration claimed that people had no “right to know” about political contributions, but the court affirmed voters’ access to this information by pointing out the close relationship between money and politics.
• In order to prevent quid pro quo agreements, the court emphasized the “deep association” between money and politics and the necessity of transparency.

Indiscriminate Limitations:

• The scheme’s donor anonymity, which was supposed to stop black money, was seen to be counterproductive.
• Proponents drew attention to potential gaps that might permit cash donations, compromising the law’s ability to effectively combat “black money.”
• The court stressed that there were other, less onerous ways to accomplish the goals of the plan, like Section 29C of the Representation of People Act, 1951.

The Public Interest vs. Privacy

• Amidst the government’s argument for donor anonymity to safeguard individuals’ right to privacy, proponents emphasized the significance of public examination of political fundraising.
• The court rejected complete anonymity made possible by the program, making it clear that donor privacy only applies to legitimate kinds of public funding.

Unrestricted Business Contributions:

• Proponents emphasized how unrestricted corporate contributions have a negative effect on free and fair elections.
• Citing the need to prevent undue corporate influence in politics, the court reaffirmed the cap on corporate political contributions.
• It raised fears that unrestricted donations would encourage quid pro quo agreements, particularly by businesses that are losing money.

Impact on Key Legal Amendments

• The Representation of the People Act, 1951, was upheld by the court, upholding the balance between donor privacy and voter access to information by eliminating changes that exempted political parties from declaring contributions over Rs. 20,000. (Part 29C)
• Amendments to the Companies Act of 2013 that had permitted unrestricted corporate contributions were reversed, maintaining electoral integrity and putting a ceiling on corporate political payments. (Part 182)
• Income-tax Act, 1961: This act preserved voters’ right to knowledge by nullifying political parties’ exemptions from keeping records of donations made through electoral bonds. (Part 13A)

Application of Proportionality Test

Definition:

• The proportionality test evaluates how well the state’s actions to accomplish its goals are balanced against conflicting fundamental rights or interests.
• Four requirements must be met: necessity, legality, rigorous proportionality, and interest balance.

Government’s Arguments:

• The administration justified the program by pointing to justifiable objectives like combating illegal money and safeguarding donor anonymity.
• Attorney General Tushar Mehta contended that material that is not owned by the state is not covered under the right to information.

Court’s Analysis:

• Using the proportionality test, the court examined how competing basic rights were balanced, highlighting the need of using the “least restrictive” techniques.
• It emphasized how crucial less invasive options, like the electoral trusts plan, are to accomplishing the goals of the system.

Why is this a Landmark case?

• Burden of Proof: According to the court, the state must show that its policies are the “least restrictive” and that there are no other “equally effective” ways to accomplish its goals.
• Balancing Competing Rights: The court is focused on striking a balance between competing basic rights, in contrast to earlier strategies that prioritized the public interest over individual rights.
• Structured Proportionality Test: The state must show that its acts curtailing fundamental rights are commensurate with its goals in order to pass the decision, which employs a structured proportionality test.
• Application of Legal Precedents: Although the legislation was established by the right to privacy verdict, cases such as Aadhaar (2018) and Demonetization (2023) employed the structural proportionality test in their decisions. This is where the electoral bonds decision marks a major divergence.

Conclusion

• The Supreme Court’s decision reinforces its dedication to defending democratic procedures and preserving constitutional values.
• The court highlights the need of accountability and openness in electoral financing by overturning the electoral bonds program and reintroducing important legislative provisions.

Kotravai sculpture from Pallava period unearthed

• In Pilrampattu village, Kallakurichi district, a group of scholars revealed a stunning Kotravai sculpture on February 14, 2024. This astounding find takes us back in time to the Pallava era and provides a priceless window into the ancient spirituality and artistry of our ancestors.

Context:

• In Tamil tradition, Kotṟavai, often called Kotravai or Korravai, is the goddess of war and triumph. In addition, she is the fertility, agricultural, and hunting goddess, as well as the mother goddess.She is one of the first goddesses in Tamil Sangam literature to be mentioned.She is seen as a goddess with multiple arms that are each holding a different weapon. The Tamil god Murugan is claimed to have had her as his mother.

About Pallavas:

• From 275 to 897 CE, the Pallava dynasty ruled over a large area of the Deccan, also called Tondaimandalam.
• Following the fall of the Satavahana Empire, with whom they had previously been feudatories, the dynasty gained prominence.
• During the reigns of Mahendravarman I (600–630 CE) and Narasimhavarman I (630–668 CE), the Pallavas rose to prominence in southern India and ruled over the southern Telugu region as well as the northern portions of Tamil region for almost 600 years, till the end of the 9th century.
• The Pallava kingdom’s capital was Kancheepuram.
• The Shore Temple in Mamallapuram, which is recognized as a UNESCO World Heritage Site, is the best example of the Pallavas’ encouragement of Hindu temple architecture.
• Other examples of Pallava-style temples are the Kailasanatha temple in Kanchipuram and the Mahendravadi rock-cut temple.
• During the Pallava era, the Chinese traveler Xuanzang visited Kanchipuram and praised their kind governance.