2nd August(Daily Current Affairs) - Sage IAS

1.Sub-classification of SC, ST:

In news:

● Supreme Court Ruling: Seven-judge Bench, led by Chief Justice D Y
Chandrachud, reformed SC/ST quota system.
● New Framework: States can now create sub-classifications within SC/ST
categories.
● Purpose: Allows for fixed sub-quotas to aid the most backward communities
within SC/ST groups.
● Overturned Precedent: Reverses 2004 ruling in E V Chinnaiah v State of
Andhra Pradesh, which deemed SC/ST lists as “homogenous.”
● Ruling Breakdown: 6:1 decision, with five judges in favor of sub-classifications
and one dissent by Justice Bela Trivedi.

Constitutional Provisions:

● Article 341(1) of the Indian Constitution grants the President of India the authority
to specify Scheduled Castes (SC) in different states and union territories.
● Article 341(2) authorizes Parliament to modify this list.
● Any alteration to the SC list requires a Constitutional amendment.

Process of Amending/Altering the SC List:

Initiation and Scrutiny:

● A state government proposes changes to the SC list.
● The proposal is reviewed by the Ministry of Social Justice and Empowerment.
● Evaluation includes socio-economic factors and historical data, with inputs from
the Registrar General of India.

Expert Consultation and Cabinet Approval:

● The National Commission for Scheduled Castes (NCSC) provides expert
recommendations on the proposal.
● The Cabinet reviews the proposal, considering NCSC recommendations and
other factors, and approves the amendments.

Parliamentary Process:

● A Constitutional Amendment Bill is introduced in Parliament outlining the
proposed changes.
● The Bill must be passed by a special majority, which includes a majority of both
Houses present and voting, and a majority of the total members in each House.

Presidential Assent and Implementation:

The Bill, after passing both Houses, is sent to the President for assent.
● Once the President grants assent, the amendments to the SC list are officially
enacted.

Related cases:

Referral to a Seven-Judge Bench:

●The five-judge bench in State of Punjab v. Davinder Singh (2020) referred the
issue to a seven-judge bench.

Reconsideration of EV Chinniah Judgment:

●The five-judge bench wanted to revisit the EV Chinniah v. State of Andhra
Pradesh (2004) ruling.
● The EV Chinniah case had stated that SCs, being a homogeneous group, could
not be sub-classified.

Punjab Scheduled Caste and Backward Classes (Reservation in Services) Act,
2006:

● The challenge was about the legality of Section 4(5) of this Act.
● This section required that 50% of SC reserved vacancies be offered to Balmikis
and Mazhabi Sikhs if available.

High Court Ruling:

● In 2010, the Punjab and Haryana High Court struck down this provision.
● The Court based its decision on the EV Chinniah ruling, which said SCs form a
single homogeneous group.

Other Constitutional Provision:

  1. Article 15(4) allows the State to create special provisions for the
    advancement of socially and educationally backward classes of citizens, as well
    as Scheduled Castes (SCs) and Scheduled Tribes (STs).
  2. Article 16(5) allows the State to reserve jobs or posts for backward classes of
    citizens who are not adequately represented in state services, addressing
    representation issues in government employment.

2. India’s per capita income to hit a quarter of U.S. levels in 75 years’:

In news:
● The World Bank has highlighted a risk of the “middle income trap” for
India, China, and 106 other countries. It suggests a new strategy is needed
to escape this challenge, moving beyond outdated approaches from the
last century.
● India is currently the fastest-growing major economy,Although
● At the current growth rate, it will take 75 years for India’s per capita income to
reach 25% of U.S. levels.
● The World Bank has identified India, along with China and around 100 other
countries, as facing the risk of the “middle income trap.”

What is Per Capita Income:

● Per Capita Income (PCI) of India reflects the average income per individual per
year.
● It is calculated by dividing the National Income by the total population.
● PCI indicates the average annual income, not individual wealth.
● PCI is a key development measure and standard of living indicator.
● It guides policymaking in various economic sectors.

Some facts :

● Telangana ranked first in per capita income with Rs 3,08,732 (current prices) for
fiscal year 2022-23, according to MoSPI.
● Karnataka followed with Rs 3,01,673.
● Haryana ranked third with Rs 2,96,685.

Significance of Per Capita Income:

● Per Capita Income (PCI) measures development levels both nationally and within
individual states.
● Sector-wise GDP calculations assist in identifying comparative advantages and
areas needing improvement.
● For the private sector, PCI indicates regional investment potential and population
spending capacity.
● Higher PCI regions attract more capital and human resources

Shortcomings of Per Capita Income:

● Per Capita Income (PCI) is a central tendency measure and does not account for
regional inequality.
● Example: Goa’s high PCI masks income variations between North and South
Goa.
● PCI overlooks key development aspects such as health, education, and women’s
empowerment.
● High PCI does not guarantee high Human Development, as seen in some Middle
Eastern countries.
● Environmentalists criticize PCI for promoting resource exploitation without
considering sustainability.

What is Middle Income Trap?

● The middle-income trap is an economic scenario where a country reaches a
certain income level but struggles to advance to high-income status.
● The World Bank defines ‘middle-income range’ as countries with a gross national
product per capita between US$ 1,000 and US$ 12,000, adjusted for constant
(2011) prices.

why India is at risk of falling into the middle-income trap:

  1. Rising Protectionism: Global protectionist trends may prevent India from
    benefiting from globalization as China, South Korea, and Japan did.
  2. Slow Structural Transformation: A significant portion of India’s population
    remains dependent on agriculture, and the country struggles to transition
    effectively to secondary and tertiary sectors.
  3. Premature Deindustrialization: India’s manufacturing sector has not reached
    optimal growth, and initiatives like the National Manufacturing Policy and Make in
    India have not sufficiently created jobs, keeping many in low-income primary
    sector roles.
  4. State Control and Policy Instability: Continued state control, retrospective
    taxation, and unstable policies have restricted private sector growth and
    investment.
  5. Quality of Human Capital: Educational standards and employability of
    graduates are inadequate, with around 55% of graduates not meeting industry
    standards.
  6. Climate Change and Weather Extremes: Dependence on monsoons and
    climate-related disasters pose significant risks to agriculture and resource allocation.

Solutions:

Expand Export Markets: Develop strategies to introduce new processes and
find new markets to sustain export growth.
Boost Domestic Demand: Leverage the expanding middle class’s purchasing
power to drive economic growth through high-quality, innovative products.
Shift Growth Drivers: Move from resource-driven growth (cheap labor and
capital) to productivity and innovation-driven growth, requiring investments in
infrastructure and education.
Stable Policy Environment: Ensure stable policies and enhance institutional
capacity; improve processes like IBC to resolve NPAs and strengthen the
banking sector for better investment.
Decentralized Management: Empower local governments for faster
decision-making and more inclusive growth, especially in rural areas.
Specialization in Production: Transition from diversification to specialization to
achieve economies of scale and manage higher wage costs; invest in new
technologies and innovation while developing social safety nets and
skill-retraining programs.

To transform India into a developed nation and achieve high-income status by
2047, significant challenges must be addressed.
Both domestic and international factors heighten the risk of falling into the Middle
Income Trap. The next 23 years will be pivotal in deciding whether India will
emerge as a high-income economy or face stagnation typical of the Middle
Income Trap
.

3.Landslides in Wayanad Villages:

Context:

● Massive landslides hit Wayanad district, Kerala, on July 30.
● At least 123 people killed; many injured and missing.
● Death toll expected to rise.
● PM Narendra Modi announced ₹2 lakh ex-gratia for families of the
deceased.

Landslides:

● Landslides are geological events where a mass of rock, soil, or debris rapidly
moves down a slope due to gravity.

Landslides most commonly occur in:

● Hilly and mountainous regions: Such as the Western Ghats, the Himalayas,
and the Eastern Ghats.
● Seismically active zones: Areas prone to earthquakes, which can trigger
landslides.
● Regions with heavy rainfall: Especially where intense monsoon or cyclonic
rainfall leads to soil saturation and instability.

● Areas with significant human activity: Including deforestation, mining, and
construction that destabilizes slopes.

Causes:

Natural causes of landslides include:
● Heavy Rainfall: Leads to soil saturation and reduced stability.
● Earthquakes: Trigger landslides by shaking and destabilizing slopes.
● Volcanic Activity: Eruptions can cause lava flows, ash deposits, and pyroclastic
flows that destabilize the land.
● Tectonic Movements: Movements of the Earth’s crust can create faults and
fractures that lead to landslides.
● Weathering and Erosion: Natural processes that weaken and break down rock
and soil over time, increasing landslide risk.
● Glacial Activity: Glacial melting and the movement of glaciers can alter
landscapes and contribute to landslide risks.

Anthropogenic causes of landslides include:

Deforestation: Removal of vegetation destabilizes soil and increases erosion.
Construction Activities: Building roads, dams, and other structures can alter natural
drainage and load-bearing capacities.
Mining: Excavation and quarrying disturb soil and rock stability, increasing landslide
risk.
Agricultural Practices: Intensive farming, including terracing and irrigation, can
weaken slopes and increase erosion.
Urbanization: Expansion of settlements and infrastructure disrupts natural landscapes
and drainage systems.
Improper Land Use: Activities like dumping waste and altering natural watercourses
can contribute to slope instability

Types:

Falls: Sudden detachment of rock or debris from a steep slope, resulting in a free-fall or
rapid descent.
Slides: Movement of a mass of rock, soil, or debris along a well-defined surface,
including:
Rotational Slides: Also known as slump slides, where the material moves along
a curved surface, resulting in a rotational movement.
Translational Slides: Movement of material along a planar surface, often
resulting in a more linear descent.
Flows: Semi-fluid movement of materials, including:
Debris Flows: Rapid, flowing mixtures of water, soil, and debris, often occurring
after heavy rainfall.
Mudflows: A type of debris flow primarily composed of fine sediments and water,
moving quickly down slopes.
Topples: Overturning or tipping of a mass of rock or soil, typically due to instability at
the base of the slope.

Landslide-prone areas in India include:

Himalayan Region: Particularly in states like Uttarakhand, Himachal Pradesh,
and parts of Jammu and Kashmir.
Western Ghats: Extending through Kerala, Karnataka, Goa, Maharashtra, and
parts of Tamil Nadu.
Northeast India: Including states like Sikkim, Arunachal Pradesh, Nagaland, and
Meghalaya.
Eastern Ghats: In parts of Andhra Pradesh and Odisha.
● Areas along major river valleys: Such as those along the Ganges,
Brahmaputra, and their tributaries.

Measures taken by India:

Disaster Management Act, 2005: Establishes a comprehensive legal and
institutional framework for disaster management, including landslides.
National Landslide Risk Management Strategy (2019): Focuses on hazard
mapping, monitoring, and early warning systems for landslide risk reduction.
NDMA Guidelines on Landslide Hazard Management (2009): Provides
detailed steps to mitigate landslide risks.
National Institute of Disaster Management (NIDM): Supports capacity building
and provides assistance to national and state disaster management authorities.
Weather Prediction Improvements: Use of tools like the Ensemble Prediction
System to better predict and manage landslide risks.

Other Suggestions:

Enhanced Land Use Planning: Implement zoning laws to prevent construction
in high-risk areas and ensure sustainable land use practices.
Vegetation and Reforestation: Planting vegetation to stabilize soil and prevent
erosion on slopes.
Engineering Solutions: Construct retaining walls, terracing, and proper
drainage systems to reduce slope instability.
Regular Monitoring and Early Warning Systems: Use technology for real-time
monitoring of landslide-prone areas and develop early warning systems to alert
communities.
Community Awareness and Education: Conduct programs to educate local
populations about landslide risks and preparedness.
Research and Innovation: Invest in research for new materials and
technologies to enhance landslide mitigation strategies.
To manage landslide risks effectively, a comprehensive approach integrating
advanced technology, robust policy frameworks, and community engagement is
essential. Continued research and proactive planning will enhance resilience and
minimize damage from future landslides.

4.Bohai Gulf

In news:

● UNESCO has recently included the Migratory Bird Sanctuaries along the
Yellow Sea-Bohai Gulf (Phase II) in China on its World Heritage List.

About Bohai gulf :

Gulf :

● A gulf is a part of the sea that is mostly surrounded by land, with just one narrow
entrance.
● It can form when a rock collapses or land sinks, creating a big dip that fills with
water.
● Erosion can also create gulfs over time.

Bohai gulf:

● The Bohai Gulf is the innermost gulf of the Yellow Sea, located on the coast
of Northeastern and North China.
● Also known as Bohai Sea or Bo Hai, and formerly called the Gulf of Chili or
Gulf of Pechili.
● Covers an area of approximately 78,000 sq.km.
● Its proximity to Beijing makes it one of the busiest seaways globally.
● Enclosed by the Liaodong Peninsula (northeast) and the Shandong Peninsula
(south).
● Important cities include Dalian and Tianjin.
● Features three major bays: Liaodong Bay, Bohai Bay, and Laizhou Bay.
● The Yellow River, China’s second-longest river, flows into the gulf.1st being
Yangtze River.
● Contains both onshore and offshore petroleum deposits, with several oil
refineries and industries.

About Yellow sea:

Location: Between the eastern coast of China and the Korean Peninsula.
Size: Approximately 380,000 sq.km (147,000 sq.mi).
Geography: Connects to the Bohai Sea to the north and the East China Sea
to the south.
Major Rivers: Receives waters from the Yellow River and Yangtze River.
Economic Importance: Key area for trade and fishing; major ports include
Shanghai and Tianjin.
Environmental Concerns: Issues include pollution, overfishing, and habitat
loss.
Historical Significance: Site of important naval battles and historical trade
routes.
Biodiversity: Supports diverse marine life, including fish, marine mammals, and
migratory birds.

5.Money Bill (About, Constitutional Provisions, Role of
LS, Role of RS, Significance, Limitations, Various
cases)

Context:
● CJI Chandrachud has agreed to schedule hearings for petitions contesting
the use of the Money Bill route for controversial amendments.
● In November 2019, a five-judge Bench led by Chief Justice Ranjan Gogoi
referred the Money Bill issue to a seven-judge Bench in the case of Rojer
Mathew vs. South Indian Bank Ltd. The key question is whether these
amendments can be enacted as a Money Bill, bypassing the Rajya Sabha,
which would violate Article 110 of the Constitution.
Constitutional Provisions:
● Articles 109 and 198 outline the special procedures for handling Money Bills,
● Articles 110 and 199 define what constitutes a Money Bill.

About:

● A bill is classified as a Money Bill if it includes solely provisions related to
the following matters:
● Imposition, abolition, remission, alteration, or regulation of any tax;
● Regulation of borrowing by the Union government;
● Appropriation of money, payments, and withdrawals from the Consolidated Fund
of India or the Contingency Fund of India;
● Receipt, custody, and audit of money concerning the Consolidated Fund of India
or the Public Account of India.


Provisions that not Constitute Money Bill :
● Imposition of fines or other monetary penalties,
● the demand for payment of fees for licenses or services provided,
● the imposition, abolition, remission, alteration, or regulation of any tax by a local
authority or body for local purposes.


Role of Lok Sabha(LS):
A Money Bill introduced only in the Lok Sabha.

● The Speaker of the Lok Sabha must certify that a bill being presented in the
House is a Money Bill.
● His decision on this matter cannot be challenged in any court, in either House of
Parliament, or by the President.
● However, the Supreme Court stated in its 2018 judgment upholding the Aadhaar
Act that the Speaker’s decision is subject to judicial review.

Role of Rajya Sabha(RS):
● Money Bills cannot be amended or rejected by the Rajya Sabha. The Rajya
Sabha must return the bill with or without recommendations, which the Lok
Sabha can accept or reject.
● The Rajya Sabha can hold the bill for a maximum of 14 days.

Role of Rajya Sabha(RS):
● Money Bills cannot be amended or rejected by the Rajya Sabha. The Rajya
Sabha must return the bill with or without recommendations, which the Lok
Sabha can accept or reject.
● The Rajya Sabha can hold the bill for a maximum of 14 days.

Limitations regarding Money Bill:

  1. Utilizing the Money Bill route to enact important financial legislation includes
    examples such as the Aadhaar Act of 2016, amendments to the Prevention of
    Money Laundering Act, 2002 (PMLA), and the Foreign Contributions Regulations
    Act, 2010.
  2. A Money Bill can only be introduced in the Lok Sabha. The Rajya Sabha cannot
    amend a Money Bill passed by the Lok Sabha; it can only provide
    recommendations, which the Lok Sabha may accept or reject. Money Bill route
    allows for bypassing the Rajya Sabha’s scrutiny, potentially overlooking valuable
    input.
    Cases related to Money Bill:

1.Adhaar Act (2016):
● The Supreme Court upheld the constitutionality of the Aadhaar Act, 2016, with a
4:1 majority, stating that there was no illegality in passing the Aadhaar Bill as a
Money Bill in Parliament.
● The government argued that the legislation was intended to provide benefits
such as aid, grants, or subsidies to marginalized sections of society, supported
by the Consolidated Fund of India.
● Therefore, the Act fell under Article 110 and was validly passed as a Money Bill.

2.Prevention of Money Laundering Act (PMLA) Amendments:
● The Finance Acts of 2015, 2016, 2018, and 2019 introduced important
amendments to the PMLA.
● Finance Bills passed during the budget are classified as Money Bills under Article
110 of the Constitution. These amendments granted the Enforcement Directorate
significant powers, including arrest and raid authority.
● While the Court upheld the PMLA and the ED’s extensive powers, it left the
validity of the amendments made through the Money Bill route for review by a
larger Constitution bench.
It emphasizes the need for transparency, accountability, and strong parliamentary
oversight mechanisms to protect against potential misuse or abuse of the Money
Bill procedure.

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