Balancing Environment and Development Imperatives – SC Recalls Verdict on Ex Post Facto ECs

Balancing Environment and Development Imperatives

Balancing Environment and Development Imperatives Latest News

  • The Supreme Court, by a 2–1 majority, recalled its (May 16, 2025) judgment that had declared retrospective (ex post facto) Environmental Clearances (ECs) as illegal and anathema to environmental law.
  • The majority—CJI B.R. Gavai and Justice K. Vinod Chandran—held that the earlier ruling would cause massive economic losses and hinder critical public infrastructure.
  • Justice Ujjal Bhuyan dissented strongly, calling the recall a “retrogression” and a violation of the precautionary principle.

Background

  • A bench led by Justice A.S. Oka (now retired) and Justice Bhuyan held that ex post facto ECs are illegal.
  • The court had struck down a 2017 notification and 2021 office memorandum (OM) of the Union government, which in effect recognised the grant of ex post facto ECs.
  • The government was accused of “crafty drafting” to regularise illegal constructions.

Grounds for Recall (Majority Opinion)

  • Public interest and economic costs:
    • CJI Gavai emphasized devastating consequences if the earlier verdict continued.
    • For example, 24 Central projects worth Rs. 8,293 crore and 29 State projects worth Rs. 11,168 crore were stuck.
    • Major projects impacted - AIIMS Odisha (962-bed), Vijayanagar greenfield airport, SAIL investments, common effluent treatment plants.
    • Demolition of such projects would mean wastage of nearly Rs. 20,000 crore and cause livelihood loss.
  • Legal precedents ignored earlier:
    • The earlier ruling overlooked co-equal bench decisions that allowed post facto ECs in exceptional circumstances. For example, Electrosteel Steels Ltd (2021), Pahwa Plastics (2022), D. Swamy (2022).
  • As per judicial discipline:
    • A coordinate bench must refer to a larger bench if it disagrees.
    • The earlier verdict was therefore per incuriam (judicial error).
  • Penalties as deterrence:
    • 2017 and 2021 rules imposed heavy penalties, ensuring - polluter pays principle, deterrence against illegal constructions.
    • The majority held that retrospective ECs plus penalties can achieve compliance without demolition.
  • Pollution paradox:
    • Demolishing large structures may cause more pollution - debris, reconstruction emissions
  • Hence, recall is seen as protecting environmental interest indirectly.

Minority Opinion - Justice Ujjal Bhuyan’s Strongest Dissent

  • Violation of environmental jurisprudence:
    • Ex post facto ECs violate - precautionary principle (core of environmental jurisprudence), sustainable development.
    • He termed retrospective ECs “anathema”, i.e., a thing devoted to evil.
  • Per Incuriam logic reversed:
    • Earlier cases Common Cause (2017) and Alembic Pharma (2020) held that ex post facto ECs are impermissible and contrary to law.
    • Therefore, Electrosteel, Pahwa, and D. Swamy was per incuriam, not the earlier judgment.
    • Critique of ‘false environment vs development’ narrative: He rejected the idea that environment and development are adversaries. Warned the Court is “backtracking on sound environmental jurisprudence”.
  • Rule of law and accountability:
    • Builders who violated EC norms should not be rewarded.
    • Review petitions lacked details such as dates of construction, whether EC was originally required.
    • Therefore, the review should have been dismissed.
  • Delhi smog reminder: Highlighted Delhi air pollution as an example of environmental degradation, and the court has constitutional duty to protect the environment.
  • Precautionary vs polluter pays principles: The precautionary principle cannot be diluted by relying on polluter-pays, which is only compensatory.

Challenges Highlighted in the Judgment

  • Conflict between infrastructure development and environmental protection.
  • Weak compliance culture among developers.
  • Inconsistency in judicial precedents.
  • Administrative lapses: Delayed EC processes.
  • Environmental degradation: Air pollution and unsustainable practices.
  • Risk of setting a lenient precedent encouraging violations.

Way Forward

  • Establish clear, time-bound EC procedures: Avoid delays that prompt developers to proceed without ECs.
  • Strengthen monitoring and penalties: Ensure real-time compliance, heavy penalties discouraging violations.
  • Harmonise judicial precedents through a larger bench: To resolve contradictions on ex post facto EC validity, environmental principles.
  • Promote sustainable infrastructure development: In line with precautionary principle, public interest, constitutional environmental duties.
  • Strengthen EIA quality and transparency: Independent audits and public participation should be enhanced.
  • Balance public interest with environmental safeguards: Critical public projects must comply with law while protecting ecology.

Conclusion

  • The SC’s recall decision reflects a critical judicial balancing act between environmental protection and developmental imperatives.
  • It underscores the need for robust EC processes, clear judicial guidance, and sustainable development that respects both environment and economic goals.
  • The matter now being placed before the CJI may pave the way for a larger bench to finally settle the legal position on ex post facto environmental clearances.

Source: TH | IE

Balancing Environment and Development Imperatives FAQs

Q1: What concerns are associated with granting ex post facto Environmental Clearances (ECs) in India?

Ans: Ex post facto ECs violate the precautionary principle and undermine environmental jurisprudence.

Q2: What is the SC’s reasoning for recalling its earlier judgment on retrospective ECs?

Ans: The Court justified the recall by citing massive public expenditure at risk, procedural errors in overlooking co-equal bench precedents.

Q3: How the principle of judicial discipline influenced the SC’s decision to revisit its earlier judgment?

Ans: The recall was grounded in judicial discipline as the earlier bench failed to follow or refer to conflicting co-equal bench rulings.

Q4: What are the key concerns raised in Justice Ujjal Bhuyan’s dissent?

Ans: He held that retrospective ECs dilute the precautionary principle, reward violators, create a false environment-vs-development binary.

Q5: Whether economic costs and public infrastructure considerations can justify retrospective environmental clearances?

Ans: They cannot legally justify ex post facto ECs if such clearances fundamentally violate constitutional environmental principles.

Centre Proposes Rs. 30,000-Crore Modified UDAN Scheme

UDAN Scheme

UDAN Scheme Latest News

  • The Government of India has proposed an outlay of Rs. 30,000 crore for a revamped version of the UDAN (Ude Desh Ka Aam Nagrik) regional air connectivity scheme, aiming to extend the initiative beyond April 2027 and expand air access to underserved and remote regions. 

Overview of the Modified UDAN Scheme

  • The refreshed and expanded UDAN framework focuses on strengthening regional aviation infrastructure, making air travel affordable, and supporting airlines to operate in difficult terrains. Out of the Rs. 30,000 crore proposed:
    • Rs. 18,000 crore is allocated for new airport development, including greenfield airports, refurbishment of existing airstrips, and construction of heliports in hilly areas.
    • Rs. 12,000 crore is earmarked for Viability Gap Funding (VGF) to encourage airlines to operate flights on regional routes despite low initial demand.
  • The scheme will particularly target:
    • Hilly and remote regions,
    • Aspirational districts,
    • North-Eastern states,
    • Small towns with limited or no air connectivity.

Evolution of the UDAN Scheme

  • The UDAN scheme was launched in October 2016 as part of the National Civil Aviation Policy, with the objective of democratizing air travel by making flights accessible to the “common citizen.” 
  • Prime Minister Narendra Modi inaugurated the first UDAN flight from Shimla to Delhi in April 2017. The initial support for the scheme was Rs. 8,000 crore. Since then, 649 out of 915 valid routes have been operationalised.
  • These routes have connected 92 unserved and underserved airports, including 15 heliports and 2 water aerodromes, facilitating over 1.56 crore passengers across 3.23 lakh UDAN flights.
  • Despite progress, several identified airports remain non-operational due to land, technical, or regulatory hurdles, necessitating a redesigned approach.

Objectives of the Modified UDAN Framework

  • Connecting 120 Additional Destinations
    • The revamped scheme aims to add 120 new destinations over the next decade, expanding the national aviation map extensively.
  • Enabling Four Crore Additional Passengers
    • The government plans to enable four crore passengers to benefit from regional flights over the next 10 years, significantly boosting domestic aviation.
  • Supporting New Infrastructure
    • The modified version will support:
      • Small airports and airstrips,
      • Helipads in hilly terrains,
      • Water aerodromes, ensuring holistic coverage across diverse geographies.
  • Enhanced Private Sector Participation
    • The new guidelines seek to overcome earlier constraints and bring in more private players by simplifying processes related to aircraft leasing, operator permits, and route bidding.

Need for the Modified Scheme

  • Several challenges have hampered UDAN’s full-scale implementation:
    • Land unavailability and delays in state government clearances,
    • Operational constraints at small airports lacking navigational or terminal facilities,
    • Shortage of suitable aircraft, particularly 20-70 seater turboprops,
    • Maintenance and leasing issues for regional carriers,
    • Low passenger demand in remote locations requires long-term subsidy support.
  • The modified UDAN scheme has been structured to address these gaps through a more flexible funding model and better coordination between the Centre, states, airport operators, and airlines.

Incentives

  • Airport operators and state governments will provide:
    • Reduced fuel taxes,
    • Lower airport charges,
    • Priority parking bays,
    • Faster regulatory clearances.
  • New airports will receive dedicated capital support to fast-track construction and make them UDAN-ready.
  • This blended financial support aims to make operations commercially viable and sustainable for regional carriers.

Expected Benefits

  • Boost to Regional Connectivity
    • Connecting remote and underdeveloped regions will enhance mobility, promote tourism, and integrate local economies.
  • Economic Growth and Employment
    • Airport development and increased flight operations will generate direct and indirect jobs, supporting hospitality, transport, and logistics sectors.
  • Improved Emergency and Medical Access
    • Better connectivity will enable faster medical evacuation and smoother delivery of essential supplies to remote districts.
  • Strengthening the North-East and Hilly Areas
    • Special focus on the North-East, Himalayan states, and Aspirational districts will help reduce regional disparities.

Source: TH

UDAN Scheme FAQs

Q1: What is the total proposed outlay for the modified UDAN scheme?

Ans: The Centre has proposed Rs. 30,000 crore for the revamped scheme.

Q2: How much funding is allocated for airport development?

Ans: Rs. 18,000 crore has been earmarked for new airport and infrastructure development.

Q3: What is the Viability Gap Funding allocation?

Ans: Rs. 12,000 crore is proposed for VGF to support airlines on regional routes.

Q4: How many new destinations will the modified scheme target?

Ans: The scheme aims to connect 120 additional destinations over the next decade.

Q5: How many UDAN routes have been operationalised so far?

Ans: 649 routes have been operationalised, connecting 93 airports, heliports, and water aerodromes.

Upcoming Reforms to India’s Plant Variety Act: Key Issues & Farmer Concerns

Plant Variety Act

Plant Variety Act Latest News

  • Union Agriculture Minister Shivraj Singh Chouhan announced that the Centre plans to amend the Protection of Plant Variety and Farmers’ Rights Act (PPV&FRA)
    • The PPV&FRA, 2001 is India’s plant variety protection law that creates an IPR framework for new plant varieties while also safeguarding farmers’ traditional rights. 
    • It grants breeders and researchers exclusive rights over newly developed varieties, but ensures farmers can save, use, exchange, sell, and even register their own seeds. 
    • The Act was designed to balance breeder innovation with the long-standing contributions of farmers to conserving and developing plant genetic resources. 
  • He emphasised the need to balance the promotion of high-yielding, improved crop varieties with the preservation of traditional seeds. 

Consultations on Amending the Plant Variety Act Begin

  • A committee led by agricultural scientist R.S. Paroda, set up by the Protection of Plant Varieties and Farmers’ Rights Authority (PPVFRA), has begun extensive stakeholder consultations on proposed amendments to the PPV&FRA Act. 
  • The committee will study the rationale for revising the law and engage widely with farmers’ groups, civil society, industry, and researchers.
  • The panel, comprising scientists and policymakers, will review the Act in the context of current challenges, technological advances, trade changes, and evolving farmer needs. 
  • Its mandate includes identifying issues faced by stakeholders and proposing specific amendments to the PPV&FRA Act, 2001, which has now completed two decades.

Key Issues Being Debated in the PPV&FRA Amendment Consultations

  • Early discussions indicate several major themes. Stakeholders are considering revising the definition of “variety” to include a combination of genotypes, aligning it with the draft Seeds Bill 2019. 
  • There is also a proposal to broaden the definition of “seed” to cover seedlings, tubers, bulbs, rhizomes, roots, tissue-culture plantlets, synthetic seeds, and other vegetatively propagated materials.
  • Consultations also focus on clarifying the definition of “institution” in the term “breeder” to explicitly include both public and private seed-sector entities. 
  • The committee is seeking stakeholder feedback on reforms to the DUS (Distinctness, Uniformity, Stability) test, particularly the inclusion of traits in DUS guidelines.
    • DUS testing is a technical process used to evaluate new plant varieties and is the basis for obtaining Plant Variety Protection (PVP). 
    • The test determines if a new variety is Distinct from all known varieties, Uniform in its traits, and Stable over subsequent generations.
  • Another key issue is the proposal to define “abusive acts”, making activities such as producing, selling, marketing, exporting, or importing any variety with an identical or misleading denomination punishable under the Act.

Farmer Groups Demand Protection for Community Seeds

  • Farmer representatives stressed that all community-developed seeds must be registered collectively rather than under an individual or company’s name. 
  • They argue that seeds passing the DUS test should not be privately registered, to prevent monopolisation and future exploitation by seed companies. 
  • Concerns were also raised about alleged misuse of DUS testing, citing the example of njavara paddy, where farmers suspect improper procedures before registration.

Concerns About IPR and Exclusion of Small Farmers

  • Policy analysts highlighted that small farmers remain outside the techno-legal system and view seeds as shared biocultural resources, conflicting with exclusive Intellectual Property Rights (IPR) frameworks. 
  • They noted growing global efforts to keep local varieties in open-source systems to avoid private ownership, warning against pressure on developing nations to align domestic laws with UPOV-style regimes.

Gaps in Accountability and Farmer Compensation

  • Experts pointed out that the PPV&FRA Act includes provisions for holding breeders accountable for non-performing seeds.
  • However, the Rules still lack clear criteria for farmer compensation. This creates uncertainty and weakens farmer protections.

Global Negotiations and Broader Seed-Sovereignty Issues

  • Stakeholders also emphasised the relevance of upcoming plant treaty negotiations in Peru, particularly discussions on expanding the Multilateral System (MLS) for access and benefit-sharing. 
  • Linked concerns include in situ conservation, equitable benefit sharing with local seed custodians, and safeguarding farmer rights in global seed-governance frameworks.

Source: TH | DTE

Plant Variety Act FAQs

Q1: Why is the PPV&FRA Act being amended?

Ans: Amendments aim to update the law after two decades, address technological and trade changes, strengthen farmer rights, and improve clarity in variety protection and seed governance.

Q2: Who is leading the consultation process?

Ans: A committee headed by scientist R.S. Paroda, appointed by PPVFRA, is holding nationwide consultations with farmers, industry, civil society and researchers to propose amendments.

Q3: What key issues are under discussion?

Ans: Debates include redefining “variety,” expanding “seed” definitions, clarifying “breeder,” improving DUS tests, and defining punishable abusive acts involving misleading seed denominations.

Q4: What concerns have farmers raised?

Ans: Farmers warn against private monopolisation of community seeds, demand collective registration, question DUS test misuse, and seek stronger protections against unfair IPR practices.

Q5: What broader policy issues are linked to the reforms?

Ans: Experts highlight gaps in farmer compensation rules, risks of UPOV-style harmonisation, and the need to preserve local varieties, benefit sharing, and in-situ conservation.

Why India’s Dugongs Are Declining: Threats, Habitat Loss & Conservation Efforts

Dugongs

Dugong Latest News

  • A recent IUCN report released at the Conservation Congress in Abu Dhabi warns that India’s dugongs (sea cows) face a growing risk of extinction. 
  • Found mainly in the Gulf of Kutch, Gulf of Mannar–Palk Bay, and the Andaman & Nicobar Islands, their survival outlook is grim: long-term survival in the Gulf of Kutch is “highly uncertain,” conditions in the Andamans are “challenging,” and populations in the Gulf of Mannar–Palk Bay have significantly declined.
  • Dugongs are listed as Vulnerable on the IUCN Red List and enjoy the highest protection in India under Schedule I of the Wildlife (Protection) Act, 1972, which bans hunting and trade. 
  • These gentle marine herbivores play a crucial ecological role by maintaining healthy seagrass meadows, which support biodiversity and store carbon.
  • However, dugongs face numerous threats, including coastal habitat degradation, seagrass loss, fishing-net entanglement, boat collisions, pollution, and human disturbances. 
  • The Indian government has initiated conservation. Despite this, the new report indicates that urgent and strengthened action is needed to prevent their decline from becoming irreversible.

Dugongs: The Gentle ‘Sea Cows’ of the Coast

  • Dugongs (Dugong dugon) are large, gentle marine mammals often linked to mermaid legends due to their calm, graceful behaviour. 
  • Closely related to manatees, they have a rounded body and a dolphin-like tail. Adults can grow up to 10 feet long and weigh around 420 kg.
  • Exclusively herbivorous, dugongs feed mainly on seagrass meadows, consuming 30–40 kg daily — earning them the name sea cows
  • They inhabit shallow, warm coastal waters, typically in sheltered bays, lagoons, and estuaries less than 10 metres deep.

Why Dugongs Matter: Guardians of Seagrass and Coastal Productivity

  • Dugongs are vital to the health of seagrass ecosystems, which are among the planet’s most efficient carbon sinks
  • Their grazing naturally prunes seagrass, removes old shoots, prevents overgrowth, and enhances carbon storage in the sediment.
  • By stirring up the seagrass beds while feeding, dugongs also release nutrients trapped in the sediment. 
  • These nutrients support a wide range of marine life, including commercially valuable fish, shellfish, sea cucumbers, and other invertebrates.
  • Research shows that seagrass habitats with dugongs generate at least ₹2 crore more fish production annually, while areas lacking dugongs show significantly reduced productivity.
  • In essence, dugongs are ecosystem engineers that boost biodiversity, sustain fisheries, and support coastal carbon cycles.

Declining Dugong Numbers

  • Once common in Indian waters, dugongs have declined drastically. A 2012 government report estimated around 200 individuals. 
  • Current estimates vary: some experts suggest 400–450, while others believe the number is below 250. 
  • Their elusive nature and murky habitats make accurate counts difficult.

Where Dugongs Survive in India

  • Palk Bay–Gulf of Mannar (Tamil Nadu): Largest and most stable group, 150–200 dugongs
  • Andaman & Nicobar Islands: Fewer than 50 individuals
  • Gulf of Kutch (Gujarat): Fewer than 20 individuals
  • These populations are small, fragmented, and highly vulnerable.

Human Activities Driving the Decline

  • The main threats come from coastal degradation and human activities:
    • Fishing-net entanglement is the most common cause of death.
    • High turbidity, pollution, and bycatch threaten dugongs in the Gulf of Kutch and Tamil Nadu.
    • Andamans face high fisheries-related mortality.
  • Industrial discharge, agricultural runoff, and untreated wastewater also pollute seagrass meadows — dugongs’ primary feeding grounds.

Toxic Pollution Found in Dugong Tissues

  • A recent study analysing 46 stranded dugongs found dangerous levels of arsenic, cadmium, chromium, mercury, and lead in organs such as liver, kidneys, and muscles. 
  • These metals accumulate in seagrass sediments, indicating severe ecosystem contamination.

Slow Reproduction Increases Extinction Risk

  • Dugongs reproduce very slowly — females give birth once every several years. 
  • This low reproductive rate hampers population recovery and makes the species extremely vulnerable to ongoing threats.

Government Efforts to Protect Dugongs — and What More Is Needed

  • India has taken several steps to conserve dugongs. In 2010, the Centre set up a Task Force for Dugong Conservation, followed by a national dugong recovery programme in collaboration with Tamil Nadu, Gujarat, and the Andaman & Nicobar Islands. 
  • A major milestone was the creation of the 448 sq km Dugong Conservation Reserve in Palk Bay (2022) to safeguard seagrass meadows and dependent dugong populations.
  • However, experts say conservation efforts need strengthening. Researchers call for better monitoring, reduced fishing pressure, and incentive-based programmes for coastal communities. 
  • While progress has been made, dugong populations will recover only with sustained, strengthened, and community-inclusive conservation actions.

Source: IE | MB

Dugong FAQs

Q1: Why are India’s dugongs declining?

Ans: Dugongs are declining due to seagrass loss, coastal degradation, fishing-net entanglement, pollution, boat strikes and slow reproduction, making the species vulnerable across fragmented habitats.

Q2: Where are dugongs found in India?

Ans: They survive mainly in the Palk Bay–Gulf of Mannar, Andaman & Nicobar Islands, and Gulf of Kutch, with populations small, isolated, and under increasing ecological stress.

Q3: Why are dugongs important for marine ecosystems?

Ans: Dugongs maintain healthy seagrass meadows, enhance carbon storage, release nutrients that support fish and invertebrates, and significantly boost coastal fisheries and biodiversity.

Q4: What major threats do dugongs face today?

Ans: Key threats include fishing-net bycatch, pollution, industrial waste, seagrass degradation, toxic metals in sediments, high turbidity, and reproductive rates too slow for population recovery.

Q5: What conservation measures has India taken?

Ans: India created a national recovery programme, formed a Task Force, and established a 448-sq-km Dugong Conservation Reserve, but experts urge stronger monitoring and reduced bycatch.

RBI’s Approach to De-Dollarization and Diversifying Risks

RBI's Approach to De-Dollarization and Diversifying Risks

What’s in today’s article?

  • Introduction
  • Key Highlights
  • Geopolitical Context
  • Conclusion

Introduction

  • The Reserve Bank of India (RBI) has clarified its stance on de-dollarization, stating that its recent policies are aimed at diversifying risks rather than completely moving away from the dollar.
    • De-dollarization refers to reducing dependence on the US dollar in international trade and reserves.
    • It is often driven by geopolitical tensions and the desire for economic independence.
  • This approach balances global economic realities while safeguarding India’s financial stability.
  • The clarification came days after US President-elect Donald Trump threatened “100 per cent tariffs” against BRICS countries if they sought to reduce reliance on the US dollar in international trade.

Key Highlights

  • Diversification over De-Dollarisation:
    • RBI Governor Shaktikanta Das emphasized that measures like local currency trade agreements and Vostro accounts aim to reduce dependency on the US dollar but do not intend to eliminate its role entirely.
  • Vostro accounts are bank accounts held in India by a foreign bank in Indian rupees.
  • They facilitate trade in local currencies and reduces reliance on third-party currencies like the dollar.
    • The aim is to mitigate risks stemming from over-reliance on a single currency for trade and reserves.
  • Central Banks’ Gold Buying Spree:
    • Central banks globally, including the RBI, are purchasing gold to diversify reserves. In 2022, global central banks acquired a record 1,136 tonnes of gold, followed by 1,037 tonnes in 2023.
    • RBI added 27 tonnes of gold in October 2024 alone, the largest among central banks during that period.
    • The shift to gold is driven by uncertainties, such as the Ukraine war and the fear of secondary sanctions, especially in countries like Russia and China.
  • Impact of Dollar Dominance:
    • The dollar's share in global foreign reserves has seen a gradual decline, partially offset by the rise of the Chinese yuan.
    • Emerging markets like India are seeking alternatives to dollar reliance due to the geopolitical and economic risks associated with the currency’s dominance.
  • Domestic Currency Trade:
    • India is encouraging trade in domestic currencies with partners like Russia and the UAE to partially de-risk its trade ties.
    • However, international trade in rupees has been limited due to India's trade deficits with most countries except the US.

Geopolitical Context

  • BRICS and Currency Discussions:
    • BRICS nations have deliberated on creating a shared currency but face challenges due to their geographical and economic diversity.
    • India has resisted using the Chinese yuan for Russian oil imports despite its growing acceptance globally, citing economic sovereignty concerns.
  • Challenges in India's Neighbourhood:
    • Surging oil prices and declining dollar reserves have caused social and political unrest in South Asian countries like Sri Lanka, Pakistan, and Bangladesh.
    • While India has maintained robust reserves, it remains vigilant about the dollar’s volatility.

Conclusion

  • India’s cautious approach to managing dollar reliance reflects a strategic balance between mitigating risks and maintaining global trade stability.
  • Through increased gold reserves and efforts to promote the rupee in international trade, the RBI is navigating a complex economic landscape while safeguarding national interests.
  • However, challenges like trade deficits and high transaction costs in domestic currency trade remain barriers to reducing dollar dependence entirely.

Q1. What is a Global Reserve Currency?

A reserve currency is a globally recognized currency held in large quantities by a central bank as part of its foreign exchange reserves.

Q2. Why is USD a global currency?

The dollar has been the world's principal reserve currency since the end of World War II and is the most widely used currency for international trade. High global demand for dollars allows the United States to borrow money at a lower cost and use currency as a tool of diplomacy

News: Why does RBI want a hedge against dollar reliance, but not push for de-dollarisation?

Should Packaged Food Content Be Labeled?

Should Packaged Food Content Be Labeled?

What’s in today’s article?

  • Overview
  • Key Findings of the Report
  • Significance for India
  • Importance of Front-of-Pack Labelling
  • Recommendations by the Report
  • What is the Indian Nutritional Rating System?
  • About FSSAI
  • Role/Functions of FSSAI
  • Composition of FSSAI

Overview

  • A report by the Access to Nutrition Initiative (ATNi) highlights the disparities in the healthiness of food and beverage (F&B) products sold in low-and-middle-income countries (LMICs) compared to high-income countries (HICs).
  • This brings attention to the importance of labelling packaged food to guide consumers toward healthier choices.

Key Findings of the Report

  • Health Star Rating System:
    • The report analysed over 52,000 products from major brands like Nestlé, PepsiCo, Unilever, and others.
    • Products were rated out of 5 stars, with scores above 3.5 considered healthy.
    • Average scores:
      • LMICs: 1.8
      • HICs: 2.3
  • Disparities in Nutrition:
    • Fewer affordable healthy options in LMICs.
    • Micronutrient information was less frequently provided for products in LMICs.
  • Historical Patterns:
    • Previous reports revealed similar issues. For instance, Nestlé's baby food in India and African markets contained higher sugar levels compared to European versions, sparking government scrutiny.

Significance for India

  • Health Crisis:
    • Non-Communicable Diseases (NCDs): India faces a significant burden, with over 10 crore people suffering from diabetes and high obesity rates.
    • Undernutrition and Micronutrient Deficiencies: Coexisting challenges due to unhealthy diets and economic disparities.
  • Dietary Patterns:
    • Rising consumption of processed foods rich in sugar and fat.
    • Over 56% of India’s disease burden is linked to unhealthy diets (ICMR, 2023).
  • Affordability Gap:
    • Over half of Indians cannot afford a healthy diet.
    • Household spending on processed foods is increasing.

Importance of Front-of-Pack Labelling

  • Global Standards:
    • Countries like Chile and Mexico successfully reduced consumption of sugary beverages after mandatory front-of-pack labelling (FOPL).
  • India’s Current Efforts:
    • India is part of World Health Assembly resolutions advocating for protecting children from junk food marketing.
    • Policies like the National Multisectoral Action Plan (2017-2022) aimed at tackling NCDs have seen limited success in implementing labeling regulations.
  • Challenges:
    • The 2022 Draft Notification for FOPL is yet to make progress.
    • Voluntary efforts by F&B companies have been insufficient.

Recommendations by the Report

  • Mandatory Regulations:
    • Stronger policies for clear labelling of sugar, salt, and fat content on packaging.
  • Public Awareness:
    • Campaigns to educate consumers on interpreting nutritional labels.
  • Affordable Healthy Options:
    • Incentivizing companies to offer nutritious products at accessible prices for low-income groups.
  • Government Action:
    • Strengthening enforcement and adopting global best practices for food labelling.

What is the Indian Nutritional Rating System?

  • The INR system rates the overall nutritional profile for packaged food by assigning it a rating from ½ star (least healthy) to 5 stars (healthiest).
  • More stars indicate the food product is better positioned to provide for daily human need of nutrients.
  • As per the notification, solid food with a score of more than 25 will be given 0.5 stars, and those with a score less than – (minus)11 will get 5 stars.
  • To generate the star-rating logo for the product, food businesses have to submit nutritional profiles of the products concerned on FSSAI’s portal.

About FSSAI

  • The Food Safety and Standards Authority of India is a statutory body under the Food Safety and Standards Act, 2006.
  • Objectives:
    • To lay down science-based standards for articles of food
    • To regulate manufacture, storage, distribution, import and sale of food
    • To facilitate safety of food

Role/Functions of FSSAI

  • Framing of Regulations to lay down the standards/guidelines in relation to articles of food.
  • Laying down mechanisms/guidelines for accreditation of certification bodies engaged in certification of food safety management system.
  • Collect and collate data regarding food consumption, incidence and prevalence of biological risk, contaminants in food, etc.
  • Creating an information network across the country so that public receive reliable and objective information about food safety and issues of concern.
  • Provide training programmes for persons who are involved or intend to get involved in food businesses.
  • Contribute to the development of international technical standards for food, sanitary and phytol-sanitary standards.

Composition of FSSAI

  • The FSSAI comprises of a Chairperson and twenty-two members out of which one – third are to be women.
  • The Chairperson of FSSAI is appointed by the Central Government.
  • The Food Authority is assisted by Scientific Committees and Panels in setting standards and the Central Advisory Committee in coordinating with enforcement agencies.
  • Concerned Ministry: Ministry of Health and Family Welfare
  • The FSSAI appoints food safety authorities at the state level.
  • The primary responsibility for enforcement is largely with the State Food Safety Commissioners.

Q1. What is Food Adulteration?

Food adulteration is the intentional act of changing the quality of food by adding or removing substances, or by replacing them with inferior ingredients. This is done to gain economic advantage or to modify the food's appearance, taste, weight, volume, or shelf life.

Q2. What are Carbohydrates?

Carbohydrates, or carbs, are sugar molecules. Along with proteins and fats, carbohydrates are one of three main nutrients found in foods and drinks. Your body breaks down carbohydrates into glucose. Glucose, or blood sugar, is the main source of energy for your body's cells, tissues, and organs.

News: Should packaged food content be labelled? | Explained

India’s Renewable Energy Revolution Story

India’s Renewable Energy Revolution Story

What’s in today’s article?

  • Why in News?
  • Renewable Energy Installed Capacity in India
  • Growth of Renewable Energy Installed Capacity in India
  • Key Growth Drivers of Renewable Energy in India
  • About the RE-INVEST 2024
  • Government Initiatives/ Achievements in the Green Energy Sector Highlighted by the PM at the RE-INVEST 2024

 Why in News?

  • At the 4th Global Renewable Energy Investors Meet and Expo (RE-INVEST 2024) in Gandhinagar, the PM declared that India's solar revolution story will be painted in gold when the history of the 21st century is written.
  • This is because installed solar energy capacity in India has increased by 30 times in the last 9 years reaching 89.43 GW (as of August 2024).
  • The PM also highlighted that the government has taken many big decisions in the green energy sector.

Renewable Energy Installed Capacity in India:

  • As of August 2024, Renewable Energy (RE) sources (including large hydropower) have a combined installed capacity of 199.52 GW.
  • The following is the installed capacity for Renewables:
    • Wind power: 47.19 GW
    • Solar Power: 89.43 GW
    • Biomass/Cogeneration: 10.35 GW
    • Small Hydro Power: 5.07 GW
    • Waste To Energy: 0.60 GW
    • Large Hydro: 46.92 GW
  • As per REN21 Renewables 2024 Global Status Report, India stands 4th globally in RE installed capacity (including large hydro), 4th in Wind Power capacity and 5th in Solar Power capacity.

Growth of Renewable Energy Installed Capacity in India:

  • India’s installed non-fossil fuel capacity has increased 396%in the last 8.5 years and stands at more than 207.76 GW (including large hydro and nuclear), which is about 46% of the country’s total capacity.
  • The country has set an enhanced target at the UNFCCC’s COP26 (Glasgow, 2021) of 500 GW of non-fossil fuel-based energy by 2030 - the world's largest expansion plan in renewable energy under the Panchamrit pledge.

Key Growth Drivers of Renewable Energy in India:

  • Government commitments:
    • Reduce India’s total projected carbon emission by 1 Bn tonnes by 2030,
    • Reduce the carbon intensity of the nation’s economy by less than 45% by the end of the decade, and
    • Achieve net-zero carbon emissions by 2070.
  • Proposed solar cities and parks:
    • The government approved solar city per state and the setting up of 57 solar parks of 39.28 GW capacity across the nation.
    • The government is also giving a push to Floating PV Projects.
  • National Green Hydrogen Mission: The government launched the mission with an aim to produce 5 million metric tonne (MMT) green hydrogen per annum with an associated renewable energy capacity of about 125 GW by 2030.
  • Off-shore Wind Energy: The medium and long-term targets for off-shore wind power capacity additions are 5 GW by 2022 and 30 GW by 2030.
  • Wind-Solar Hybrid Policy: In 2018, national policy was announced to promote an extensive grid-connected wind-solar PV hybrid system for efficiently utilising transmission infrastructure and land.
  • AatmaNirbhar Bharat: The PLI scheme in Solar PV manufacturing was introduced under AatmaNirbhar Bharat.
  • Promoting FDI: Up to 100% FDI is allowed under the automatic route for renewable energy generation and distribution projects subject to provisions of the Electricity Act 2003.
  • Union Budget 2024 Highlights:
    • The Centrally Sponsored Scheme for Solar Power (Grid) has been allocated INR 10,000 Cr.
    • PM-Surya Ghar Muft Bijli Yojana has been allocated INR 6,250 Cr. Under this scheme, the government provides funds and helps in installation of solar rooftops in every household.
    • Exemption of Basic Customs Duty (BCD) on imports of 25 critical minerals important for the renewable energy sectors has also been announced.

About the RE-INVEST 2024:

  • Organised by the Ministry of New and Renewable Energy (MNRE), Government of India, RE-Invest is a global platform bringing together key players in the renewable energy sector.
  • The conference will delve into the future of energy, exploring trends, technologies, and policies shaping the global renewable energy landscape and help in achieving UN SDGs 7 and 13.
  • This unique platform will foster collaboration, knowledge sharing, and investment opportunities to advance India's renewable energy goals.

Government Initiatives/ Achievements in the Green Energy Sector Highlighted by the PM at the RE-INVEST 2024:

  • A new Bio E3 (Biotechnology for Economy, Environment, and Employment) policy has been approved for promoting high performance bio manufacturing.
  • For offshore wind energy projects, a viability gap funding scheme has been approved with an outlay of ₹Rs 7000 crore.
  • The Union government has set aside a ₹1 trillion research fund for taking several initiatives for electric mobility and high-performance bio manufacturing.
  • India is the first G-20 country to meet climate commitments made in Paris nine years before the deadline.

Q.1. What are Floating PV Projects?

Floating solar involves installing solar panels on floating structures situated on water bodies such as lakes, reservoirs, and ponds. This not only utilizes otherwise unused water surfaces but also enhances the efficiency of the solar panels due to the cooling effect of water.

Q.2. What are UN SDGs 7 and 13?

The United Nations' Sustainable Development Goals (SDGs) 7 and 13 are - SDG 7: Affordable and Clean Energy, SDG 13: Climate Action. These two goals are closely related and complementary.

Integrating the AA Framework with the DPDP Act

Integrating the AA Framework with the DPDP Act

What’s in Today’s Article?

  • India’s Consent Based Data Governance Latest News
  • The AA Framework - Consent-Driven Financial Data Sharing
  • The DPDP Act, 2023 - Broadening Consent Management
  • Draft DPDP Rules, 2025 - Key Provisions and Recommendations
  • Towards a Unified Data Ecosystem - The Way Forward
  • Conclusion
  • India’s Consent Based Data Governance FAQs

India’s Consent Based Data Governance Latest News

  • India’s evolving data governance landscape is transitioning towards a consent-based data-sharing model that prioritizes user empowerment, transparency, and interoperability
  • The Account Aggregator (AA) framework and the recently enacted Digital Personal Data Protection (DPDP) Act, 2023 both reflect this transformative shift.

The AA Framework - Consent-Driven Financial Data Sharing

  • Key features:
    • A multi-regulatory initiative led by RBI, SEBI, Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), and Ministry of Finance.
    • Operationalised under RBI’s NBFC-AA Master Directions, 2016, it enables secure, real-time, and machine-readable sharing of financial data (banking, loans, tax, investment, pensions).
    • It empowers users to give, manage, and withdraw data sharing consents, and currently functions at population scale, promoting efficiency, productivity, and customer-centric services.
  • Significance of the framework:
    • It promotes digital economy, financial inclusion, data protection, and e-Governance.
    • It demonstrates inter-agency coordination and the move towards a data fiduciary model.

The DPDP Act, 2023 - Broadening Consent Management

  • Core provisions:
    • Introduces Consent Managers (CMs) to enable individuals (Data Principals) to control their personal data across sectors.
    • Aligns with AA’s core principles - explicit, informed, and revocable consent.
    • Applicable across sectors: Health, education, employment, digital commerce, etc.
  • Techno-legal architecture:
    • Emphasizes user-centric data flow.
    • Operates through intermediaries registered with the Data Protection Board (DPB).

Draft DPDP Rules, 2025 - Key Provisions and Recommendations

  • Highlights of the draft rules:
    • Mandatory DPB registration: Ensures accountability and standardization across all CMs.
    • Sector-specific consent managers:
      • Supports domain-specific frameworks like the Financial Health Records (FHR) under National Health Authority (NHA).
      • Encourages innovation through interoperable APIs.
    • Commercial arrangements with data fiduciaries:
      • Allows sustainable business models for CMs.
      • Emphasizes that fiduciary duties toward Data Principals must not be compromised.
  • Critical recommendations:
    • Avoid regulatory overlap with AA.
    • Ensure alignment between sectoral frameworks and the broader DPDP architecture.
    • Build a future-ready, unified consent infrastructure.

Towards a Unified Data Ecosystem - The Way Forward

  • Synergy, not redundancy:
    • Leverage the maturity of the AA ecosystem to inform the rollout of the CM framework under the DPDP Act.
    • Promote interoperability and avoid parallel regulatory setups.
  • Significance: This will reflect India’s approach to data sovereignty, digital empowerment, and governance reform.

Conclusion

  • India stands at a crucial juncture in shaping a robust, user-centric data governance framework. 
  • By integrating lessons from the AA model and ensuring coherence in implementing the DPDP Act, the country can pioneer a scalable, secure, and inclusive consent-based data-sharing infrastructure.
  • This will be crucial for both digital inclusion and data protection in the 21st century.

India’s Consent Based Data Governance FAQs

Q1. What is the Account Aggregator (AA) framework and how does it empower data principals in the financial sector?

Ans. The AA framework, a multi-regulatory initiative operationalised by RBI in 2016, empowers individuals to securely give, manage, and withdraw consent for sharing their financial data in real-time with regulated entities.

Q2. How does the DPDP Act, 2023 build upon the principles of the AA ecosystem?

Ans. The DPDP Act institutionalizes a consent-manager-led regime across sectors, reinforcing explicit and informed consent mechanisms originally established by the AA framework.

Q3. Why is interoperability important in India’s consent manager ecosystem?

Ans. Interoperability ensures seamless, secure, and scalable data sharing across sectors and platforms, enabling innovation while safeguarding user consent and data rights.

Q4. What are the key recommendations proposed for the Draft DPDP Rules, 2025 to align them with the existing AA framework?

Ans. Key recommendations include mandatory DPB registration, sector-specific consent managers, and allowing commercial arrangements with data fiduciaries without compromising user trust.

Q5. What is the significance of integrating AA and CM frameworks for India's data governance future?

Ans. A unified framework avoids regulatory overlap, strengthens user control over data, and lays the foundation for a robust, consent-based digital economy.

Source: TH

India Inclusion in JP Morgan EM Bond Index

India Inclusion in JP Morgan EM Bond Index

What’s in today’s article?

  • Why in News?
  • Indian Bond Market - Challenges and Solutions
  • What is the JP Morgan Emerging Market Index?
  • What was JP Morgan’s Announcement?
  • Impact of IGBs Inclusion
  • Will Higher Inflows be a Concern for RBI?

Why in News?

  • India officially became part of JP Morgan's Government Bond Index-Emerging Markets (GBI-EM).
  • The inclusion is likely to bring nearly $20-25 billion into the country (over the next 10 months) and will help India manage its external finances and boost foreign exchange reserves and the rupee.

Indian Bond Market - Challenges and Solutions:

  • Importance of bond markets:
    • They are a boon for corporate bodies and government entities, providing a flexible and efficient way to raise capital.
    • One of the critical advantages for companies is the avoidance of equity dilution.
    • Moreover, the cost of capital is reduced as the interest expenses on debt instruments are tax-deductible, making it a more attractive option than other forms of financing.
  • India's bond market:
    • India's bond market is pivotal in the country's economic structure.
    • As of September 2023, the government bond market size stands impressively at $1.3 trillion, with corporate bonds at $0.6 trillion.
  • Challenges in Indian bond markets:
    • Narrow investment base,
    • Insufficient participation by foreign investors,
    • Virtually absent secondary market and
    • Private placement (a sale of stock shares or bonds to pre-selected investors and institutions rather than publicly on the open market).
  • Panacea:
    • Inclusion in the Global Indices
    • Presence of market makers on both buy and sell-side
    • No credit default swaps
    • Bonds bhi ‘Sahi Hain’: A marketing campaign which can catch the eyeballs of all the age groups of the society.
    • Credit enhancement frameworks
    • Incentivising the issuer

What is the JP Morgan Emerging Market Index?

  • Created in the early 1990s, it is the most widely referenced index for emerging market bonds and has become benchmarks for local market and corporate EM bonds.
  • It began with the issuance of the first Brady bond - denominated in U.S. dollars and issued by developing countries and backed by the U.S. Treasury bonds.
  • It has since expanded to include the GBI-EM (in 2005) and the Corporate Emerging Markets Bond Index (CEMBI).

What was JP Morgan’s Announcement?

  • JP Morgan has announced that it would include Indian Government Bonds (IGBs) to its emerging markets bond index (starting June 28, 2024).
  • There are 23 IGBs that meet the index eligibility criteria, with a combined notional value of approximately Rs 27 lakh crore or $330 billion.
  • Only IGBs designated under the Fully Accessible Route (FAR was introduced by the RBI in 2020 to enable non-residents to invest in specified Government of India dated securities) are index-eligible.

Impact of IGBs Inclusion:

  • India is expected to reach the maximum weight of 10% in the GBI-EM Global Diversified Index (GBI-EM GD).
  • A higher weightage will prompt global investors to allocate more funds (~ $ 2-3 billion flows to India every month) for investment in Indian debt.
  • It will not only result in lower risk premia, but will also help India to finance its fiscal and current account deficit (CAD).
  • It will also help India to enhance the liquidity and ownership base of government securities (G-secs; debt instruments issued by the central government to meet its fiscal needs).
  • The inclusion of certain Indian sovereign bonds will support a diversification of the investor base for Indian government securities.
  • It could help lower funding costs slightly, and support further development of domestic capital markets.

Will Higher Inflows be a Concern for RBI?

● This means, while higher inflows will boost the rupee, the RBI will have to use the instruments in its armoury to check the resultant inflationary pressures


Q.1. What is fiscal and current account deficit (CAD)?

While both CAD and fiscal deficit relate to a country's financial health, they operate in different spheres. CAD focuses on the trade balance between a country and the rest of the world, while fiscal deficit pertains to the government's budgetary situation.

Q.2. What do you mean by the credit default swap?

A credit default swap (CDS) is a contract between two parties in which one party purchases protection from another party against losses from the default of a borrower for a defined period of time.

Source: Indian govt bonds now part of JP Morgan's bond index. Here's what it means | IE

Can India Escape the Middle-Income Trap?

Can India Escape the Middle-Income Trap?

What’s in today’s article?

  • Introduction
  • What is the Middle-Income Trap?
  • Lessons from Other Economies
  • Challenges for India
  • Strategies for India’s Transition
  • Conclusion

Introduction

  • The World Development Report 2024, published by the World Bank, highlights the challenge of the middle-income trap, where countries experience a slowdown in growth as they reach higher income levels.
  • The report identifies the 3i approachinvestment, infusion, and innovation—as essential strategies for countries aiming to transition from middle-income to high-income status.
  • This approach requires dynamic state policies, particularly relevant to India's ambitions for sustainable economic growth.

What is the Middle-Income Trap?

  • The middle-income trap refers to the stagnation of per capita income growth when economies reach around 11% of the U.S. per capita income.
  • This phenomenon hinders further progress toward high-income status.
  • Global Scenario: Over the last 34 years, only 34 middle-income economies have successfully transitioned to high-income levels, emphasizing the difficulty of escaping this trap.

Lessons from Other Economies

  • South Korea:
    • State-Driven Growth: South Korea's escape from the middle-income trap was characterized by a strong state intervention model. The government actively directed private sector activities, focusing on export-driven growth.
    • Supportive Policies: Successful companies were rewarded with access to new technologies, while underperforming firms were allowed to fail. This approach ensured that state resources were efficiently allocated.
    • Role of Chaebols: South Korean business conglomerates, or chaebols, became global leaders in innovation due to their emphasis on investment and technology adoption.
  • Chile:
    • Natural Resource Focus: Chile’s growth was facilitated through targeted state support for natural resource sectors, such as the salmon industry.
    • Export Strategy: The Chilean government ensured the success of specific export sectors through intervention and support, helping the country to climb up the income ladder.
  • European Union’s Role:
    • Most European countries that escaped the middle-income trap benefited from EU membership, which facilitated free movement of capital and labor—advantages that are not available to non-European nations.

Challenges for India

  • Global Economic Headwinds:
    • The global economic environment has changed significantly since the time of South Korea’s rapid growth. Today, world export growth has slowed, and protectionism is on the rise, making it difficult for countries like India to access foreign markets.
    • India also faces the challenge of premature deindustrialization, where the contribution of manufacturing to GDP declines at lower levels of income than seen historically.
  • Stagnation in the Manufacturing Sector:
    • Despite India's push for industrial growth, the manufacturing sector has struggled to become a robust engine of economic expansion.
    • This has been exacerbated by increased reliance on agricultural employment following the pandemic, reversing earlier progress in structural transformation.
  • Income Disparity and Low Wage Growth:
    • While India’s GDP growth has been estimated at around 7% recently, this growth is not reflected in real wage increases.
    • Data from the Periodic Labour Force Survey (PLFS) shows that nominal wage growth has been around 5-7%, barely keeping up with inflation.
    • Low wage growth means that consumption demand remains weak, which could hinder India’s ability to escape the middle-income trap.
  • Challenges of Democracy:
    • Unlike South Korea and Chile, whose export-driven growth models were facilitated by authoritarian regimes, India operates within a democratic framework.
    • This makes it crucial to balance state intervention with democratic principles, such as labor rights and freedom of expression.

Strategies for India’s Transition

  • Leveraging Investment and Innovation:
    • India needs to focus on enhancing domestic investment and fostering an environment conducive to innovation.
    • This includes supporting startups, tech companies, and research and development.
  • Encouraging Responsible Business Practices:
    • For India to follow a path similar to South Korea’s, it is vital to ensure that state support is based on merit and performance rather than political connections.
    • This will ensure efficient allocation of resources and avoid crony capitalism.
  • Strengthening the Service Sector:
    • With manufacturing facing challenges, India’s service sector has the potential to be a key driver of growth.
    • It is essential to enhance the productivity and global competitiveness of IT services, healthcare, education, and financial services.
  • Inclusive Economic Growth:
    • Addressing income inequality and ensuring that workers share in economic growth is critical.
    • Policies aimed at improving social safety nets and educational opportunities can empower more people to participate in India’s growth story.

Conclusion

  • India’s journey towards escaping the middle-income trap is fraught with challenges, from global economic shifts to domestic structural issues.
  • However, by adopting a balanced approach that combines state intervention, investment in innovation, and adherence to democratic values, India can chart a path towards sustainable high-income status.
  • Examples of countries like South Korea and Chile offer valuable lessons, but India must tailor these lessons to suit its unique economic and political context.

Q1. When was the World Bank established?

The World Bank was established in 1944 to help rebuild Europe and Japan after World War II. Its official name was the International Bank for Reconstruction and Development (IBRD). When it first began operations in 1946, it had 38 members. Today, most of the countries in the world are members.

Q2. What is the meaning of a Developing Country?

According to the UN, a developing country is a country with a relatively low standard of living, undeveloped industrial base, and moderate to low Human Development Index (HDI). This index is a comparative measure of poverty, literacy, education, life expectancy, and other factors for countries worldwide.

Source: Can India escape middle-income trap?

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