What’s in today’s article?

• Why in News?
• What are Civil Society Organisations (CSOs)?
• CSOs in India
• Challenges Faced by CSOs in India
• Crackdown on CSOs in India
• Allegation Against Some of the NGOs Working in India

Why in News?

• Following the searches, the Income Tax (I-T) department recently concluded that some of the NGOs had allegedly violated provisions of the Foreign Contribution Regulation Act (FCRA) 2010, cancelling their FCRA licences.
• This relates to the “mismatch” in annual returns and statements of foreign currency bank accounts and “misutilisation” of funds in foreign currency.

What are Civil Society Organisations (CSOs)?

• Definition:
  • A civil society is described as a group of like-minded people who manage and plan activities for the betterment of the community, which requires a formal set up for implementing those plans and activities.
  • In India, CSOs are defined as all nonprofit organisations independent from the government and the market that operate around common interests, purposes, and values.
• Types of CSOs: NGOs, CBOs, etc.
  • Non-government Organisations (NGOs):
    • CSOs are mostly synonymous with NGOs, which are professional organisations that are privately run, not for profit, self-governing, and voluntary.
    • They register with the government but work independently. They serve the communities that they target and operate at different levels, from local grassroots to national and international.
    • They work across a range of issues such as sanitation, housing, women’s empowerment, mental health, etc.
  • Community-based organisations (CBOs): CBOs are voluntary, bottom-up, grassroots organisations located in specific communities that cater to the local needs of the areas that they work in.
    • Their members are also beneficiaries of the work.
• Role of civil society: They act as an intermediary between citizens and the state by representing the voices of the poor and vulnerable groups, articulating their needs, and facilitating change with and for them.
• Nature of work: Support service delivery, helps in drafting policy action plans and legislation, research and evidence, and developing and scaling innovative models of change.

CSOs in India:

• Statistics on CSOs:

• There is a paucity of data on civil society in India.
• In 2015, after an order from the Supreme Court, the Central Bureau of Investigation (CBI) mapped all the registered NGOs in India.
• Their report in 2015–2016 disclosed 3.1 million registered NGOs in the country.
• Legal and regulatory framework:
  • The laws govern three aspects of CSOs’ existence: registration, taxation, and regulatory compliance.
  • Registration: Governed by the Societies Registration Act 1860, the Trusts Act 1882, the Section 8 of the Companies Act 2013.
  • The FCRA 2010:
    • It is applicable to all such non-profit organisations (NPOs), which accept foreign contributions for their work.
    • The goal is to increase the transparency and accountability of NPOs.
    • Under it, these organisations must
      • Mandatorily register with the central government,
      • Accept these payments through the list of designated banks by the government, and
      • Maintain separate books of accounts for these funds.
    • Furthermore, the registration for foreign contributions must be renewed every 5 years.
• Activism or impact of CSOs:
  • The strongest area of CSOs is their grassroots presence, where they are best equipped to reach the remotest areas and sections of the country.
  • Their ability and experience to reach out to the most vulnerable groups are extremely valued, especially when formal institutions may fail to do so.
  • For example, they have played a significant role in mitigating the impact of COVID-19 in India by providing -
    • More direct support (delivery of essential items) to the affected population and
    • Indirect support to institutions working on recovery to strengthen their provisions and channels for the affected groups.

Challenges Faced by CSOs in India:

• CSOs in India face multiple challenges. These include -
  • Transparency and legitimacy with respect to the level of information expected of them and
  • The degree of scrutiny that they are subject to, specifically around funding.
• Given that a high portion of financial sources are external grants and donations, this increases the dependency of organisations and often questions their sustainability.
• Many grants by the government and international donors are tied to specific projects, making it difficult for CSOs to focus on their core long-term functions.
• More competition within civil society has brought a greater diversity of groups, it has led to a decline in the share of resources allocated to them.

Crackdown on CSOs in India:

• For hurting economic interests:
  • A number of notable organisations working on environmental and social issues have faced scrutiny by India’s investigative agencies for hurting the country’s “economic interests” or “stalling” development projects.
  • For example, the FCRA licence of one of India’s oldest think tanks, the Centre for Policy Research (CPR), was cancelled recently following a year of suspension and raids from the I-T Department.
• As a result of shrinking public participation:
  • Public consultations are a necessary component of the environmental clearance process for large infrastructure development projects.
  • Projects perceived as being of national importance or for national security – such as roads – have been made exempt from certain compliance regulations.
  • The crackdown on civil society organisations comes as public participation in environmental clearance norms is facing a setback.

Allegation Against Some of the NGOs Working in India:

• Oxfam India:
  • There are allegations of activities against stated objectives. For instance, Oxfam India’s support for Oxfam Australia’s push to stop mining by Adani Group in Australia.
  • After its FCRA licence was cancelled, Oxfam tried to locate other “puppet NGOs” with valid permissions to redirect funds for causes.
• CPR:
  • The I-T Department claims that the CPR was allegedly involved in the Hasdeo movement against coal mining in Chhattisgarh.
  • According to the I-T department, CPR received foreign funds of Rs 10.19 crore since 2016 for its Namati-Environmental Justice Programme to file “litigation and complaints”.
  • Environics Trust: The I-T Department alleges funding for protests against JSW Utkal Steel Plant in Odisha’s Dhinkia and that Rs 1,250 each was transferred to accounts of 711 local residents in 2020.
  • LIFE: LIFE Trust is being used as an instrument by (US-based NGO) Earth Justice to stall the coal mines and Thermal Power Projects.
• Working in concert:
  • According to the I-T department, there are alleged linkages between the NGOs, which indicate that they were working in concert with each other:
  • For example, Oxfam India funded ET to mobilise communities with the help of local unions against coal industries.
  • However, according to these NGOs the allegation that all the NGOs were interlinked and interconnected is baseless.

Q.1. What are Self Help Groups (SHGs)?

A SHG is a community-based group (usually women from similar social and economic backgrounds) with 10-25 members, all voluntarily coming together to save small sums of money, on a regular basis. They pool their resources to become financially stable.

Q.2. What is the purpose of the Companies Act 2013?

The Companies Act 2013 has been enacted to improve corporate governance in India and thus promote the economic development and welfare of the country by making it easier for Indian companies to start and operate their businesses.

Source: Tax crackdown draws links between NGOs — in ‘cause’ and funding pattern | ADB

What’s in today’s article?

• Why in News?
• Regulations for selling food in India
• Powers of State Governments Under the FSSA
• Legal Challenges to UP and Uttarakhand Directives

Why in News?

The Uttar Pradesh government has recently mandated that food establishments prominently display the names of the operator, proprietor, manager, and relevant personnel to customers. 

Similarly, Himachal Pradesh’s minister proposed requiring eateries and fast-food carts to display the owner’s ID. However, this proposal was disowned by the Himachal government.

Earlier, on July 22, the Supreme Court stayed similar orders issued by police in Uttar Pradesh and Uttarakhand for the kanwar yatra, stating that only the competent authority under the Food Safety and Standards Act, 2006 (FSSA) could issue such directives. The court emphasized that the police could not take over this authority.

Regulations for selling food in India

• FSSAI Registration for Food Businesses
  • Anyone wishing to operate a food business in India must register or obtain a license from the Food Safety and Standards Authority of India (FSSAI). 
  • This body, established under the Food Safety and Standards Act, 2006 (FSSA), is responsible for monitoring and regulating food processing, distribution, sale, and import to ensure food safety and quality.
• Registration for Small-Scale Food Businesses
  • According to the Food Safety and Standards (Licensing and Registration of Food Businesses) Rules, 2011, small-scale food businesses—including petty food manufacturers, hawkers, vendors, and stallholders—are required to register with the FSSAI.
  • Once the registration is approved, the petty food manufacturer receives a registration certificate and a photo identity card, which must be displayed prominently at all times within the business premises, vehicle, or cart.
• Licensing for Larger Food Businesses
  • Operators of relatively large food businesses are required to obtain a license from the Food Safety and Standards Authority of India (FSSAI). 
  • Similar to the registration for small-scale businesses, this license must be prominently displayed at all times within the premises where the food business is conducted.
• Display of Owner's Identity and Location
  • In both cases—whether for small-scale food manufacturers or larger operators—the owner's identity and the establishment's location are already mandated to be displayed through the photo ID and the license issued by FSSAI.
• Penalties for Operating Without a License
  • According to Section 63 of the FSSA, any operator conducting a food business without a valid license may face penalties of up to six months in prison and a fine of up to ₹5 lakh.
• Other compliances and penalties under the FSSA
  • Improvement Notice
    • Under Section 31 of the FSSA, if a Food Business Operator (FBO) fails to comply with any provision of the Act or its regulations, the food authority can issue an Improvement Notice. This notice will detail:
      • Grounds for believing the FBO has failed to comply.
      • Required measures for compliance.
      • A minimum compliance period of 14 days.
  • Consequences of Non-Compliance
    • If an FBO fails to comply with the Improvement Notice:
      • Their licence may be suspended.
      • In cases of further non-compliance, the licence may be cancelled.
  • General Penalties
    • The UP directives do not specify penalties for non-compliance with the new requirements. 
    • However, under Section 58, for contraventions without a specific penalty, fines may reach ₹2 lakh.
  • Repeat Offenses
    • If an FBO is convicted twice for the same offense (including under Section 58), they may face:
      • Double the penalty for the first conviction.
      • A daily fine that can reach up to ₹1 lakh.
      • Potential loss of their licence as outlined in Section 64.

Powers of State Governments Under the FSSA

• Legal provision
  • Section 94(1) of the FSSA grants state governments the authority to make rules, subject to the approval of the Food Authority and the Central Government. 
  • This allows them to carry out functions and duties assigned to them under the Act.
• Rule-Making Authority
  • Section 94(2) outlines the specific areas where state governments can make rules:
    • Section 94(2)(a): States can create rules regarding the "other functions" of the Commissioner of Food Safety as described in Section 30(2)(f), which includes a broad mandate for the Commissioner to perform additional functions as prescribed by the state government in consultation with the Food Authority.
    • Section 94(2)(c): This provision allows state governments to make rules for any other matter that may need to be prescribed or regulated by the state.
• Role of the Commissioner of Food Safety
  • The Commissioner of Food Safety, appointed by the state government under Section 30, is responsible for ensuring the efficient implementation of the FSSA and its accompanying regulations. 
  • The specific functions outlined in Sections 30(2)(a) to (e) include conducting surveys, training programs, and approving prosecutions for offenses.
• Legislative Approval Requirement
  • According to Section 94(3), any rules made by the state government must be presented to the state legislature for approval as soon as possible.

Legal Challenges to UP and Uttarakhand Directives

• Allegations of Discrimination
  • The earlier directives from the police in Uttar Pradesh and Uttarakhand were challenged in the Supreme Court on the grounds that they effectively forced individuals to disclose their religious and caste identities. 
  • Petitioners argued that these orders discriminated against citizens based on religion, violating Article 15(1) of the Constitution, which prohibits discrimination on the basis of religion, race, caste, sex, and place of birth.
• Concerns About Economic Boycott
  • The petitioners claimed that the directives could lead to the economic boycott of Muslim minorities, infringing on their right to practice any profession under Article 19(1)(g). 
  • They also contended that the orders supported the practice of untouchability, which is banned under Article 17.
• Government's Justification
  • In response to these challenges, the UP government stated that the recent directives, which include the installation of CCTV cameras at food establishments and a state-wide verification campaign, aim to enhance public health. 
  • They cited reports of food adulteration incidents involving human waste and other unsanitary substances, emphasizing the need for measures to ensure food safety and protect public health in the state.

Q.1. What recent food safety measures have been proposed in Uttar Pradesh and Himachal Pradesh?

Uttar Pradesh mandated food establishments to display operator details, while Himachal Pradesh proposed similar requirements. However, Himachal's proposal was disowned by the government, raising concerns about compliance and discrimination.

Q.2. What powers do state governments have under the Food Safety and Standards Act?

State governments can create rules under Section 94 of the FSSA, regulating food safety and ensuring compliance with national standards, but they require legislative approval for these rules.

Source: Food safety laws in states

 What’s in today’s article?

• Why in News?
• Red Sea
• Escalation of Conflict in West Asia
• Impact on India
• Impact on shipping sector

Why in News?

As tensions in West Asia escalated following Iran's missile attack on Israel, India called for restraint and the protection of civilians. 

The Ministry of External Affairs (MEA) issued a travel advisory urging Indian nationals to avoid non-essential travel to Iran and for those residing there to stay vigilant. Similarly, the Indian embassy in Tel Aviv advised Indian citizens to adhere to local safety protocols and stay in touch with the embassy.

Red Sea

• The Red Sea is located between Africa and Asia, and is an inlet of the Indian Ocean:
  • South - Connects to the Indian Ocean through the Bab-el-Mandeb strait and the Gulf of Aden
  • North - Contains the Gulf of Aqaba and the Gulf of Suez, which lead to the Suez Canal

Escalation of Conflict in West Asia

• The conflict in West Asia has intensified as Iran launched missiles on Israel, with the Israeli military shifting its focus from Hamas in Gaza to the more formidable Hezbollah in Lebanon. 
  • Recently, Iran launched a barrage of missiles on Israel overnight. Now, the analysts fear that Israel would retaliate thereby widening of the conflict in the region.
• This follows the assassination of Hezbollah leader Hassan Nasrallah, leading to further instability in the region.
• The widening of the conflict has increased the risk of trade disruptions, as Hezbollah shares close ties with the Houthi rebels in Yemen, who are responsible for the majority of the attacks on ships traversing the Red Sea route.

Impact on India

• Fears of Protracted Red Sea Disruption
  • Exporters have long been concerned about a direct conflict between Israel and Iran, fearing it would cause a prolonged disruption of the Red Sea shipping route. 
  • India is especially vulnerable to these disruptions, as its trade with Europe, the US, Africa, and West Asia—valued at over $400 billion in FY23—relies heavily on the Suez Canal and Red Sea routes. 
  • The involvement of Hezbollah's allies, such as the Houthi rebels in Yemen, heightens the risk of attacks on ships using this critical trade passage.
• Impact on Indian Petroleum Exports
  • In August 2024, India's exports fell by 9%, primarily due to a sharp 38% drop in petroleum product exports, which fell to $5.95 billion from $9.54 billion in August 2023. 
  • Rising shipping costs and the crisis in the Red Sea have led importers to seek alternative sources, impacting Indian exporters' profitability, particularly standalone refiners.
• European Market Challenges
  • Europe, which accounts for 21% of India’s petroleum exports, has been affected by rising shipping costs. 
  • A Crisil report from February 2024 warned that these additional costs would reduce profit margins for petroleum exports, compounding the challenges faced by Indian exporters.
  • India’s overall exports to the European Union increased by 6.8% this year, but sectors like machinery, steel, gems, jewellery, and footwear have faced declines. 
  • The rising freight costs are expected to further strain Indian industries reliant on high-volume, low-value exports, making it difficult for them to stay competitive.
  • Silver lining - Trade Opportunities in West Asia
  • Despite the conflict, India's trade with Gulf Cooperation Council (GCC) countries has grown by 17.8% between January and July 2024, according to a Global Trade Research Initiative (GTRI) report. 
  • India’s exports to Iran also increased by 15.2% during this period, benefiting from the neutrality of regional players such as Saudi Arabia, the UAE, Kuwait, and Qatar, who have stayed out of the conflict.
• Risk to India-Middle East-Europe Economic Corridor (IMEC)
  • The ongoing conflict in West Asia could hinder the development of the IMEC, a strategic project announced during the G20 in 2023. 
    • The IMEC plan comprises an Eastern Corridor connecting India to the Gulf region and a Northern Corridor connecting the Gulf region to Europe. 
    • It will include a railway and ship-rail transit network, as well as road transport routes.
  • The IMEC aims to reduce reliance on the Suez Canal by creating faster trade routes through a rail and ship network connecting India to the Gulf and Europe. 
  • However, the widening conflict in the region threatens to delay or complicate the corridor’s progress, casting uncertainty over its future.

Impact on shipping sector

• Surge in Shipping Costs Due to Longer Trade Routes
• According to the International Monetary Fund (IMF), trade volume through the Suez Canal dropped by 50% year-over-year in early 2024, while trade transiting around the Cape of Good Hope surged by 74%. 
• This shift is due to disruptions in key shipping routes, particularly through the Suez Canal and Red Sea, forcing vessels to take longer paths, which has increased shipping costs by 15-20%. 
• These rising costs are hitting Indian exporters hard, especially those dealing in low-margin, labour-intensive goods like textiles, garments, and low-end engineering products.
• Calls for an Indian Shipping Line
• Indian exporters are urging the government to establish an Indian shipping line to reduce reliance on foreign firms. 
  • The global shipping lines are seeing their profits soar amid the Red Sea crisis.
• This push comes as India’s outward remittance on transport services exceeded $109 billion in 2022, with rising exports contributing to higher costs. 
• Many exporters believe an Indian shipping line would benefit MSMEs, reducing foreign shipping lines' ability to dictate terms, especially during crises.

Q.1. How is the Israel-Iran conflict affecting Indian exports?

The conflict has caused a 9% drop in India's exports, particularly a 38% decline in petroleum product exports, due to rising shipping costs and trade route disruptions.

Q.2. What is the IMEC, and how might it be impacted?

The India-Middle East-Europe Economic Corridor (IMEC) is a strategic trade route project. The ongoing conflict threatens its development, complicating faster trade connections between India, the Gulf, and Europe.

Source: West Asia on edge, India calls for restraint, says avoid Iran travel | Indian Express

What’s in today’s article?

• Background
• Asymmetrical Federalism - A Brief Overview
• Historical Context - British-Era Policies
• Fifth and Sixth Schedules of the Indian Constitution
• Special Provisions for North Eastern States
• Ladakh’s Demand for Sixth Schedule Status
• Conclusion

Background

• On October 3, 2024, Sonam Wangchuk, a well-known climate activist, was detained on the Delhi border while leading a protest aimed at pressuring the Central government to grant Ladakh inclusion in the Sixth Schedule of the Indian Constitution.
• This demand has been growing in Ladakh, where people seek greater autonomy and protection for their cultural identity.
• Similar demands have been made in states like Arunachal Pradesh and Manipur, where ethnic groups seek special provisions under the Constitution.

Asymmetrical Federalism - A Brief Overview

• India's federal structure is often referred to as asymmetrical federalism, which means that not all states or regions in the country enjoy the same level of autonomy.
• Unlike symmetrical federations (such as the U.S. and Australia, where all states have equal powers), India grants more autonomy to certain areas due to historical, cultural, or ethnic reasons.
• This is particularly relevant for regions with large tribal populations, where local governance and autonomy are prioritized to preserve indigenous traditions.

Historical Context - British-Era Policies

• The British colonial administration created ‘excluded’ and ‘partially excluded’ areas under the Government of India Act, 1935, to manage tribal regions separately from the rest of the country.
• The Fifth and Sixth Schedules of the Indian Constitution were inspired by these colonial-era policies to provide for greater autonomy in tribal regions.
• Excluded areas: These were mostly hilly regions in the northeast where local governance was heavily controlled by the British Governor.
• Partially excluded areas: These regions, now parts of states like Bihar, Madhya Pradesh, and Maharashtra, had limited intervention by provincial and central legislatures.
• The goal was to allow these regions to maintain their customs and laws while being gradually integrated into the mainstream.

Fifth and Sixth Schedules of the Indian Constitution

• Fifth Schedule:
  • The Fifth Schedule of the Indian Constitution applies to areas designated as "Scheduled Areas."
• These are typically regions with a significant tribal population, economic backwardness, and unique administrative challenges.
  • The following are key features of the Fifth Schedule:
  • Governance: Tribes Advisory Councils (TAC) are established in these areas to guide state governments on matters related to tribal welfare.
  • Land Rights: The Governor has the authority to regulate the transfer of tribal land and oversee money-lending businesses in these areas.
  • Modifications of Laws: The Governor can direct that laws enacted by Parliament or the state legislature do not apply, or apply with modifications, in these areas to safeguard tribal interests.
  • Currently, ten Indian states have designated Scheduled Areas under the Fifth Schedule.
• Sixth Schedule:
  • The Sixth Schedule is more expansive in terms of the autonomy granted to tribal areas.
  • It applies to certain regions in Assam, Meghalaya, Mizoram, and Tripura.
  • Here, Autonomous District Councils (ADCs) are formed to give greater control to local communities over governance. Key features include:
  • Autonomy in Governance: ADCs can legislate on matters like land use, inheritance, marriage, and social customs, provided their laws receive approval from the Governor.
  • Judicial Powers: ADCs are empowered to establish local courts to handle cases where both parties are members of Scheduled Tribes (STs).
  • Revenue and Taxation: These councils can collect land revenue and impose taxes on professions, trades, and other activities.
  • In short, the Sixth Schedule grants more executive, legislative, judicial, and financial powers to local bodies, offering greater autonomy than the Fifth Schedule areas.

Special Provisions for North Eastern States

• Apart from the Fifth and Sixth Schedules, various north-eastern states enjoy special provisions under Article 371 of the Indian Constitution. These articles safeguard local customs and give special powers to local governments. For example:
• Article 371A (Nagaland) and 371G (Mizoram) protect local laws and practices, including customary law.
• Article 371B (Assam) and 371C (Manipur) establish separate committees in the legislative assemblies for Tribal and Hill Areas.
• These provisions are part of India’s effort to maintain the delicate balance between integrating tribal communities and preserving their unique identities.

Ladakh’s Demand for Sixth Schedule Status

• Since Ladakh became a Union Territory in 2019, local leaders and activists have consistently raised the demand for special constitutional protections under the Sixth Schedule.
• Their argument is centered around the need to preserve the region's fragile ecosystem and protect the unique cultural identity of Ladakh’s people, who are predominantly tribal.
• Wangchuk and other activists believe that without such protections, the region could face exploitation of its natural resources and dilution of its cultural heritage.
• The demand aligns with similar calls from other regions that have significant tribal populations, such as Arunachal Pradesh and parts of Manipur.

Conclusion

• Ladakh’s demand for inclusion in the Sixth Schedule of the Constitution reflects a broader desire for greater autonomy, cultural protection, and environmental preservation.
• As India navigates the complexities of managing its diverse tribal regions, constitutional provisions like the Fifth and Sixth Schedules play a crucial role in safeguarding indigenous rights.
• However, the implementation of these provisions and the need for further reforms remain critical to achieving true autonomy and inclusivity for tribal communities across India.

Q1. How many parts, articles, and schedules are there in the Indian Constitution?

Currently, the Constitution of India has 448 articles in 25 parts and 12 schedules.

Q2. Originally, how many Schedules were there in the Constitution?

Originally, there were eight schedules in the Indian Constitution. Later, four more schedules, i.e., the 9th, 10th, 11th, and 12th Schedules were added through the 1st, 52nd, 73rd, and 74th Constitutional Amendments, respectively.

Source: What special status is Ladakh seeking? | Explained