India’s Balance of Payments

In Q4 of 2023–2024, India’s current account recorded a surplus. On the other hand, deficits and current account surpluses are not necessarily bad things.

The Reserve Bank of India’s most recent data (RBI)

• Current Account Surplus: For the first time in eleven quarters, India had a current account surplus in the fourth quarter (Jan.–Mar.) of the 2023–24 fiscal year.
• Comparing Quarterly and Annual Data: The current account balance for the full FY2023–24 remained negative despite the Q4 surplus, pointing to underlying economic patterns and demands.

The Balance of Payments (BoP): What is it?

• The Balance of Payments (BoP) is a record of a country’s transactions with the rest of the world, detailing all monetary exchanges between its residents and foreign entities. It indicates the inflow and outflow of money, reflecting the demand for the national currency relative to foreign currencies, typically measured against the US dollar.

Components of the BoP:

1. Current Account:
   • Trade in Goods (Merchandise Account): Tracks exports and imports of physical goods. A trade deficit occurs when imports surpass exports.
   • Trade in Services (Invisibles of Trade): Encompasses services (e.g., banking, insurance, IT, tourism), transfers (e.g., remittances), and income (e.g., investment earnings). These transactions do not involve physical goods.
   • Net Balance: The current account balance is the sum of the merchandise trade and invisible trade. In Q4, there was a current account surplus due to a surplus in invisibles despite a trade deficit.
2. Capital Account:
   • Capital Transfers: Includes debt forgiveness, migrant transfers of financial assets, taxes on gifts and inheritances, and ownership transfers of fixed assets.
   • Investments: Encompasses Foreign Direct Investment (FDI) and Foreign Institutional Investments (FII).
   • Net Balance: In Q4, there was a net surplus of $25 billion in the capital account.

Impact on the Indian Economy:

• Exchange Rate Stability: The current account surplus in Q4 helped stabilize the rupee’s exchange rate. The Reserve Bank of India (RBI) absorbed excess dollars to prevent excessive rupee appreciation, aiding the competitiveness of Indian exports.
• Improved Sovereign Ratings: A current account surplus can enhance India’s sovereign credit ratings, indicating strong external financial health and reducing dependency on foreign borrowing.
• Foreign Exchange Reserves: The surplus increased India’s foreign exchange reserves, providing a buffer against global economic uncertainties and improving the country’s ability to manage external shocks.
• Investment Climate: A capital account surplus, driven by FDI and FII, shows investor confidence in the Indian economy, potentially leading to stronger economic growth and development.
• Economic Health Indicators: The annual current account deficit, despite the Q4 surplus, suggests robust domestic demand and investment needs, indicating a growing economy that requires imports of capital goods to boost production capacity and future export potential.

Way Forward:

• Enhance Export Competitiveness: India should focus on diversifying export products and markets, improving product quality, and providing incentives for export-oriented industries.
• Promote Sustainable Foreign Investment: Encouraging long-term foreign investments in sectors like manufacturing, technology, and renewable energy can strengthen the capital account.

Craze for gold in Indian has led to surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization scheme. (2015)

New provisions for Police Officers

The Bureau of Police Research and Development (BPRD) has issued Standard Operating Procedures (SOPs) to assist police officers in implementing new provisions in criminal laws.

Changes in Basic Duties of Police Officers:

1. Registration of FIRs:
   • Officers cannot refuse to register an FIR due to jurisdiction issues.
   • They must register a zero FIR and transfer it to the appropriate station.
   • Non-registration can result in penal action.
2. Electronic Filing of FIRs:
   • FIRs can be submitted electronically and must be signed within three days.
3. Mandatory Videography:
   • Videography is required during searches, crime scene documentation, and property possession processes to ensure transparency and integrity.
4. Display of Arrest Information:
   • Arrest information must be prominently displayed in police stations, ensuring transparency and accountability.

Changed Provisions for Arrests of Elderly and Infirm People:

1. Permission for Arrest:
   • Arresting individuals above 60 years or infirm individuals for offenses punishable by less than three years requires permission from an officer not below the rank of DySP.
2. Handcuffing Restrictions:
   • Handcuffing is restricted and can only be used if there is a risk of the person escaping custody or causing harm, aligning with Supreme Court guidelines.

Preserving Electronic Evidence:

1. Sequence of Custody:
   • Maintaining the sequence of custody for electronic devices is emphasized to ensure evidence integrity.
2. Informing the Informant/Victim:
   • The investigating officer must inform the informant or victim about the progress of the investigation within 90 days.

Storing Electronic Evidence:

1. eSakshya App:
   • This cloud-based mobile app allows police to capture geo-tagged and time-stamped photos and videos.
2. Integration with ICJS:
   • Data captured via eSakshya is integrated with the Inter-operable Criminal Justice System (ICJS), making it accessible to the judiciary, prosecution, and forensic experts.
3. Training and Equipment:
   • Investigating officers must be provided with electronic devices and proper training to handle and preserve electronic evidence effectively.

Challenges and Implementation Issues:

1. Implementation and Training:
   • The transition to new protocols requires extensive training for police officers, presenting logistical and financial challenges.
2. Infrastructure and Connectivity:
   • Effective implementation demands robust digital infrastructure and reliable internet connectivity, especially in remote or rural areas. Many police stations may lack the necessary resources or face frequent connectivity issues, potentially hindering the timely and accurate processing of electronic evidence and FIRs.

Way Forward:

1. Enhanced Training Programs:
   • Implement comprehensive training programs for police officers nationwide to familiarize them with new criminal laws and technological advancements.
2. Improved Digital Infrastructure:
   • Invest in upgrading digital infrastructure and ensuring reliable internet connectivity across all police stations, especially in rural and remote areas.

The jurisdiction of the Central Bureau of Investigation (CBI) regarding lodging an FIR and conducting probe within a particular State is being questioned by various States. However, the power of the States to withhold consent to the CBI is not absolute. Explain with special reference to the federal character of India. (2021)

HOUSE RULES GOVERNING THE EXPUNCTION POWERS OF RAJYA SABHA CHAIRMAN, LOK SABHA SPEAKER

 The first special session of the 18th Lok Sabha saw intense debates, with the Opposition clashing with the government. Significant portions of Mallikarjun Kharge’s speech were removed by the Rajya Sabha Chairman, while parts of Rahul Gandhi’s remarks on the PM and the BJP were expunged on the orders of the Lok Sabha Speaker.

Background:

Expunging remarks is a standard parliamentary procedure, but recent ‘selective expunctions’ by presiding officers have become a contentious issue between the Opposition and the government.

When Are Remarks Expunged?

• Verbatim Record: Parliament maintains a verbatim record of all proceedings.
• Privileges and Freedom of Speech: Article 105 of the Constitution grants MPs certain privileges and freedom of speech in Parliament, subject to other constitutional provisions and House rules.
• Presiding Officer’s Orders: The Chairman in the Upper House and the Speaker in the Lower House can order the deletion of words, phrases, and expressions deemed “defamatory, indecent, unparliamentary, or undignified.”
• Broadened Scope: The scope of expunction has expanded to include words prejudicial to national interest, detrimental to foreign relations, derogatory to dignitaries, offensive to national sentiments or religious susceptibilities, discrediting the Army, or bringing ridicule to the House or the Chair.
• Withdrawal of Remarks: Members must withdraw objectionable remarks deemed irrelevant to the debate upon the Chair’s request, or they may be expunged.
• Unreferenced Quotations: Quoting from unreferenced documents or speaking after being asked to desist can lead to expunction.
• Interruptions: Continuous interruptions during speeches may also be expunged at the Speaker’s discretion.

How Do Presiding Officers Expunge Remarks?

• Rules and Procedures: The Chairman and Speaker have the power to expunge remarks under Rule 261 of the Rajya Sabha and Rules 380 and 381 of the Lok Sabha.
  • Rule 261 (Rajya Sabha): The Chairman can expunge words that are defamatory, indecent, unparliamentary, or undignified.
  • Rule 380 (Lok Sabha): The Speaker can expunge words used in debate that are defamatory, indecent, unparliamentary, or undignified.
• Marking Expunged Portions: Expunged portions are marked with asterisks and an explanatory footnote stating ‘expunged as ordered by the Chair.’ If the Chair directs that nothing be recorded during a member’s speech or interruption, a footnote ‘not recorded’ is inserted.
• Media Communication: A list of expunged words and phrases is circulated to media outlets at the end of the day’s proceedings. Once expunged, these words cease to exist in the official record, and publishing them can lead to charges for breach of the House’s privilege.

Relevance in the Digital Age:

The relevance of expunging remarks is questioned in the digital age, where expunged content remains accessible due to live telecasts of proceedings and wider circulation of screenshots and videos on social media.

MUDUMALAI TIGER RESERVE (MTR)

 The Mudumalai Tiger Reserve (MTR) recently held a three-day butterfly survey that culminated in the first-ever large-scale migration of Common Grass Yellow.

Context:

• The Malabar Raven, Paris Peacock, Malabar Banded Peacock, Plain Puffin, Chocolate Albatross, Tamil Yeoman (the state butterfly), and Tamil Lacewing are some of the other survey highlights.

Mudumalai Tiger Reserve (MTR)

Location:

• Situated in the Nilgiris District of Tamil Nadu, covering an area of 321 sq. km.
• Located at the tri-junction of Karnataka, Kerala, and Tamil Nadu.
• Positioned on the Northeastern and Northwestern slopes of the Nilgiri hills, part of the Western Ghats.

Significance:

• Biosphere Reserve: Part of the Nilgiris Biosphere Reserve, India’s first Biosphere Reserve.
• Boundaries:
  • West: Wayanad Wildlife Sanctuary (Kerala)
  • North: Bandipur Tiger Reserve (Karnataka)
  • South and East: Nilgiris North Division
  • South West: Gudalur Forest Division

Ecological Significance:

• Encompasses diverse ecosystems such as montane forests, grasslands, wetlands, and Shola forests unique to the Western Ghats.
• Hosts a rich variety of flora and fauna, including notable species like the Indian rock python and the mugger crocodile.