What’s in today’s article?

• Origin of CSR
• Meaning of CSR
• CSR in India
• Companies Covered under the Act
• Performance So Far
• News Summary

Origin of CSR

• Howard Bowen, an American economist, is widely regarded as the father of modern CSR.
• In his book “Social Responsibilities of the Businessman” in 1953, he writes, “CSR refers to the obligations of businessmen to pursue those policies which are desirable in terms of the objectives and values of our society”.
• This has become the backbone by which modern CSR principles are based.

Meaning of CSR

• The concept of CSR rests on the ideology of businesses giving back to society as they grow and benefit.
• Companies take resources in the form of raw materials, human resources etc from the society.
• By performing the task of CSR activities, the companies are giving something back to the society.
• Examples of common CSR objectives include minimizing environmental externalities, promoting volunteerism among company employees, and donating to charity.

CSR in India

• CSR in India has traditionally been seen as a philanthropic activity.
• However, with the introduction of Section 135 in the Companies Act 2013, India became the first country to have statutorily mandated CSR for specified companies.
• The mandatory CSR provisions were made effective from 1st April, 2014 for companies with a certain profit, turn-over or valuation.
• Concerned Ministry: Ministry of Commerce and Industry

Companies Covered under the Act

• The companies which fall in the ambit of any of the following three criteria are required to spend on CSR.
  • Company with a net worth of Rs. 500 crore or more, or
  • Turnover of Rs. 1,000 crore or more, or
  • Net profit of Rs. 5 crore or more during the immediately preceding financial year.
• Such companies are required to do CSR spend amounting to 2 % of their average annual profit over last three years.
• The Act also enumerates the activities that can be undertaken and the manner in which the companies can undertake CSR projects/programmes.

Performance So Far

• CSR Expenditure Trends:
  • Cumulative Spending: From 2014 to 2023, companies in India have collectively spent approximately ‚₹1.84 lakh crore on CSR activities.
  • Annual Spending: In the fiscal year 2022-23, the prescribed CSR budget for 301 large companies was ‚₹13,426 crore, with an actual expenditure of ‚₹12,890 crore, indicating a compliance rate of over 96%.
• Sectoral Allocation:
  • Healthcare and WASH (Water, Sanitation, and Hygiene): 26% of companies identified this as their primary CSR focus.
  • Environment and Sustainability: 23% of companies prioritized this area, reflecting a growing commitment to environmental issues.
  • Promotion of Education: 23% of companies dedicated resources to educational initiatives.

News Summary

• In India, agriculture plays a crucial role in the economy, providing employment to nearly 47% of the population and contributing around 16.73% to the GDP.
• Recognizing this, India legally mandated Corporate Social Responsibility (CSR) in 2013 under Section 135 of the Companies Act, requiring certain corporations to allocate part of their profits towards social causes.
• Since then, CSR contributions have increased significantly, with ₹1.84 lakh crore disbursed from 2014 to 2023.
• This raises questions about CSR’s role in agriculture, especially regarding the impact of contributions on agricultural sustainability.
• CSR’s Role in Agriculture:
  • With a high percentage of India's workforce employed in agriculture, CSR initiatives have the potential to address key issues in the sector:
  • Environmental Degradation: As natural resources become strained, the need for sustainable agricultural practices grows.
  • Stagnant Farmer Incomes: With limited growth in earnings, initiatives can help improve productivity and livelihood.
  • Climate Change Threats: Shifts in climate patterns challenge crop yields and agricultural stability, requiring adaptive practices.
  • A CSR outlook report highlighted that 23% of surveyed companies prioritize "environment and sustainability," indicating an interest in supporting agricultural and environmental projects. C
  • SR funds have been allocated to activities like grain banks, farmer schools, agricultural livelihood projects, water conservation, and energy-efficient irrigation.
  • The recent focus on sustainability in agriculture aligns with CSR goals and encourages private sector engagement.
• Importance of Sector-Specific Reporting:
  • Designating agriculture as a standalone CSR category could improve the clarity and effectiveness of contributions. This would enable:
    • Targeted Funding: Funds could be directed toward specific needs in agriculture, such as sustainable farming methods or climate resilience measures.
    • Transparency and Accountability: More precise reporting on CSR contributions would ensure companies are held accountable for their impact on agricultural sustainability.
    • Enhanced Impact Measurement: Identifying the unique needs within agricultural ecosystems allows for targeted interventions, which could result in more measurable and meaningful changes in the sector.

Q1.What is Nitrogen Fixation?

Nitrogen fixation is the process of converting nitrogen gas in the atmosphere into ammonia or other nitrogen compounds that are useful for plants and other microbes

Q2. What is Soil Health Card Scheme?

Soil Health Card Scheme is a scheme launched by the Government of India on 19 February 2015. Under the scheme, the government plans to issue soil cards to farmers which will carry crop-wise recommendations of nutrients and fertilisers required for the individual farms to help farmers to improve productivity through judicious use of inputs.

News: Tracking lacuna limits CSR’s contributions to agri sustainability | Analysis

What’s in today’s article?

• Why in News?
• What is Consumer Price Index (CPI)?
• What is Index of Industrial Production (IIP)?
• Significance of CPI and IIP data
• Change in the timings for release of CPI inflation and IIP data

Why in News?

The Ministry of Statistics and Programme Implementation (MoSPI) has changed the release time of retail inflation (CPI) and factory output (IIP) data from 5:30 pm to 4 pm on the 12th of each month. This adjustment aims to give more time for data analysis on the release day and aligns with the closing hours of India’s major financial markets.

What is Consumer Price Index (CPI)?

• CPI is a metric that measures retail inflation by collecting data on the prices of goods and services that are consumed by the retail population of the country.
• The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation releases CPI.
• CPI is released for all-India and States/UTs separately for rural, urban and combined (national).
• Currently, CPI is calculated using 2012 as a base year. 
• Items for the CPI basket of goods and services classified across categories. 
• Few of the categories are; food and beverages, clothing, housing, fuel and light, recreation and etc. 
• All categories are assigned weights (as shown in the diagram).
• Currently, CPI is calculated by taking into consideration 299 items.

What is Index of Industrial Production (IIP)?

• About
  • The IIP number measures the industrial production for the period under review, usually a month, as against the reference period.
  • There is a lag of six weeks in the publication of the IIP index data after the reference month ends.
  • It is currently calculated using 2011-2012 as the base year.
• Institution involved
  • National Statistical Organisation (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) releases the IIP data. 
• IIP Index Components
  • IIP is a composite indicator that measures the growth rate of industry groups classified under:
  • Broad sectors, namely, Mining (14.4%), Manufacturing (77.6%) and Electricity (8%)
  • Use-based sectors, namely Basic Goods, Capital Goods and Intermediate Goods etc.
  • These Eight Core Industries mentioned in above section comprise 40.27 percent of the weight of items included in the IIP.

Significance of CPI and IIP data

• Consumer Price Index (CPI): Key Inflation Indicator
  • CPI tracks changes in the prices of goods and services purchased by households, serving as a key macroeconomic indicator of inflation. 
  • It is widely used by governments and central banks for inflation targeting, monitoring price stability, and as deflators in national accounts. 
  • Inflation, measured as the year-on-year change in CPI, indicates the rate of price increase for a specific basket of goods. 
  • Currently, the CPI (combined) uses the base year 2012, updated from the base year 2010 in January 2015.
• Index of Industrial Production (IIP): Measure of Industrial Activity
  • IIP gauges the level of industrial production in an economy, reflecting short-term changes in the output volume of selected industrial products relative to a base period (currently 2011-12). 
  • The IIP assesses industrial growth across three sectors: Mining, Manufacturing, and Electricity, along with use-based categories like basic goods, capital goods, intermediate goods, consumer durables, and non-durables. 
  • It is monitored as a short-term indicator of industrial activity until the Annual Survey of Industries and National Accounts Statistics are released.

Change in the timings for release of CPI inflation and IIP data

• About the news
  • India's Ministry of Statistics and Programme Implementation is changing the release time for key economic data. 
  • The Consumer Price Index and Index of Industrial Production will now be released at 4 pm on the 12th of each month. 
  • This new time aligns with the closing of major financial markets in India. The ministry aims to enhance transparency and accessibility with this change.
    • The CPI and IIP indicators are essential for economic policy and market decisions. 
    • If the 12th falls on a holiday, CPI data will be released the following working day, while IIP data will be released the prior working day.
• Why was the data release timing kept at 5:30 pm earlier?
  • In 2013, reports of data leaks led the Ministry to shift the release time of retail inflation and IIP data to 5:30 pm from July that year, to avoid influencing trading during market hours. 
  • Prior to this, the data was released around 11-11:30 am, which significantly impacted forex and bond markets. 
  • The change aligned with market closures, as forex and bond markets close at 5 pm. 
    • While retail inflation data has always been released on a monthly basis, the wholesale inflation data was released weekly till December 2012. 
    • Now, it’s released on the 14th of every month around noon.
• Concerns About New Timing’s Market Sensitivity
  • While the new timing coincides with stock market closing, analysts note that government bond and foreign exchange markets remain open until 5 pm, meaning the data could still impact active trading in these markets. 
  • The Ministry emphasizes that the timing aligns with MoSPI’s commitment to transparency and accessibility.

Q.1. Why did MoSPI change the CPI and IIP data release timing?

The Ministry of Statistics advanced the CPI and IIP data release to 4 pm to align with the closing time of major financial markets, enhancing accessibility and minimizing market disruption.

Q.2. What are the concerns about the new data release timing?

Analysts are concerned that, while stock markets close at 4 pm, the bond and forex markets remain open until 5 pm, making the new release time potentially sensitive to market fluctuations.

News: Why have timings for release of CPI inflation and IIP data been advanced, and the likely problems with this change | Office of Economic Adviser | Ministry of Statistics and Programme Implementation | Economic Times

What’s in today’s article?

• Why in News?
• Article 30 of the Indian Constitution
• Background of the Controversy around AMU’s Minority Status
• What Minority Status Entails for AMU?
• Arguments from the Centre and AMU
• Conclusion

Why in News?

A Bench headed by the CJI will deliver its verdict (on CJI’s last working day in office) on whether Aligarh Muslim University (AMU) can claim minority status under Article 30 of the Indian Constitution.

Article 30 of the Indian Constitution:

• It consists of provisions that safeguard various rights of the minority community in the country keeping in mind the principle of equality as well.
• Article 30(1) says that all minorities, whether based on religion or language, shall have the right to establish and administer educational institutions of their choice.
• Article 30(1A) deals with the fixation of the amount for acquisition of property of any educational institution established by minority groups.
• Article 30(2) states that the government should not discriminate against any educational institution on the ground that it is under the management of a minority, while giving aid.

Background of the Controversy around AMU’s Minority Status:

• It originated in 1967 when the Supreme Court (SC) ruled on challenges to amendments to the university’s founding Act, arguing that they stripped the Muslim community of the right to administer the institution.
  • In 1951, non-Muslims were allowed to join the University Court (the supreme governing body at the time), and the Visitor - a role held by the President of India, replaced the university’s Lord Rector.
  • In 1965, the Executive Council’s powers were expanded, diminishing the University Court’s authority.
• The SC concluded that AMU was not established by the Muslim minority but by an Act of Parliament (Aligarh Muslim University Act, 1920).
• This judgement, known as the S. Azeez Basha vs. Union of India case, held that AMU lacked minority institution status.
• In 1981, the government amended the AMU Act to assert that the institution was created by the Muslim community to advance their cultural and educational goals.
• However, the Allahabad HC struck down both this amendment and AMU’s 50% Muslim reservation in 2006, reaffirming the Azeez Basha ruling.
• The issue was then referred to a larger bench and decision follows years of legal debates and a seven-judge bench led by CJI reserving its judgement in February
• The upcoming judgement will determine if Azeez Basha will be overturned.

What Minority Status Entails for AMU?

• Article 15(5) of the Constitution exempts minority educational institutions from reserving seats for Scheduled Castes (SCs) and Scheduled Tribes (STs).
• Since AMU’s minority status is sub judice, and the SC directed in 2006 that status quo be maintained, the university does not have SC/ST quotas.
• If the SC declares AMU a minority institution:
  • AMU would not have to reserve seats for SC/ST/OBC/EWS groups but could reserve seats for Muslims, potentially up to 50% or more.
  • The university’s administrative structure would shift from its current setup, which includes a diverse Executive Council, and it would have a separate admissions process.

Arguments from the Centre and AMU:

• The St. Stephen’s college precedent: The SC had previously recognised the minority status of Delhi’s St. Stephen’s College in 1992, affirming its right to admit Christian students up to 50% and administer itself autonomously.
• The centre’s argument:
  • The Centre distinguished St. Stephen’s from AMU, noting that the former was founded privately, while AMU was created by an Act of Parliament and continuously receives government funding.
  • The Centre argued that AMU, as a national institution, should uphold its secular foundations and not prioritise one community’s interests.
• Counter arguments:
  • AMU contended that exempting it from certain quotas does not harm public interest, as Article 30 provides minorities with special rights.
  • Senior advocate Kapil Sibal argued -
    • That minority rights contribute to societal equality by balancing the needs of diverse social sections.
    • That (according to the St. Stephen’s ruling) minority communities have a “continuing right to administer” institutions they establish, irrespective of government involvement.
  • Senior advocate Rajeev Dhavan pointed to institutions like Aliah University in Kolkata, which retain minority status despite government funding.

Conclusion:

• The SC’s upcoming decision will be pivotal for AMU, determining whether it can claim minority status and retain autonomy over its admissions and governance under Article 30.
• This verdict will also impact minority educational institutions’ rights and their relationship with state policies on social justice and equality.

Q.1. What is Article 29 of the Indian Constitution?

According to Article 29, any section of the citizens residing in the territory of India or any part thereof having a distinct language, script or culture of its own shall have the right to conserve the same.

Q.2. What is the Supreme Court of India's verdict in the TMA Pai Foundation case of 2002?

For the purpose of Article 30, who are religious or linguistic minority, the Court held that it would be determined on the basis of their numbers in a State or Union Territory and not in the country.

News: CJI Chandrachud’s last working day: Is AMU a minority institution? 7-judge bench to rule today | IE

What’s in today’s article?

• Why in News?
• What is International Olympic Committee (IOC)?
• Process of selection of host country
• India makes formal bid to host 2036 Olympics

Why in News?

The Indian Olympic Association (IOA) submitted a 'Letter of Intent' to the International Olympic Committee (IOC) expressing India’s interest in hosting the 2036 Olympics and Paralympics.

With other strong contenders like Saudi Arabia, Qatar, and Turkey also in the race, a decision won’t be made until after the IOC elections next year. The competition among these countries will go through a rigorous selection process, led by the IOC's Future Host Commission.

What is International Olympic Committee (IOC)?

• About
  • The International Olympic Committee is the guardian of the Olympic Games and the leader of the Olympic Movement.
  • The vision of the International Olympic Committee is to Build a Better World through Sport.
• As an organisation
  • In 1892, Pierre de Coubertin of France declared his intention to spearhead a movement to revive the ancient Greek Olympics.
  • His efforts led to the establishment of IOC in June 1894 as a not-for-profit independent international organisation.
  • It is based in Lausanne, Switzerland, the Olympic Capital.
• Roles & Responsibilities
  • IOC is the authority responsible for organising the modern (Summer, Winter, and Youth) Olympic Games.
  • It is the governing body of the National Olympic Committees (NOCs).

Process of selection of host country

• Background
  • An Olympic host election is the result of a close collaborative partnership between the IOC and the potential host, together with its National Olympic Committee (NOC), to explore every aspect of the proposed Games vision and plan.
  • The host election process is overseen by two Future Host Commissions, one for Summer, and one for Winter Games. 
    • The Commission aims to explore, create and oversee interest in future Games of the Olympiad.
    • The commission considers factors such as the region’s infrastructure, sustainability plans, economic impact, and cultural relevance to ensure each host city aligns with the Olympic Movement’s strategic goals.
• Informal Dialogue
  • As per the selection policy, the IOC first gets into an informal dialogue with interested host countries.
  • This process gets started with the submission of a ‘Letter of Intent’.
• Targeted dialogue
  • If the world body is satisfied with the planning and capability of the candidate, then it enters a targeted dialogue when the IOC’s Executive Board invites the “preferred host” to refine and present their proposal.
• No fixed timeframe
  • There is no fixed timeframe for electing the hosts.
• What IOC looks at
  • The IOC looks at multiple factors: 
    • candidate city’s funding strategy, the ability to deliver the Games, transport infrastructure, accommodation capacity, 
    • alignment of venues with local development plans, socio-economic and geo-political factors, and public support.

India makes formal bid to host 2036 Olympics

• About the news
  • The Indian Olympic Association (IOA) has formally expressed India’s interest in hosting the 2036 Olympic and Paralympic Games by submitting a Letter of Intent to the International Olympic Committee’s (IOC) Future Host Commission. 
    • Los Angeles in the USA will host the 2028 Summer Olympics, and Brisbane, Australia, will host the 2032 Games.
  • This move aligns with Prime Minister Narendra Modi's vision of bringing the Games to India.
• Ahmedabad as Potential Host City
  • The 2010 Commonwealth Games in New Delhi was India’s last major international multi-sport event. 
  • Ahmedabad is currently a leading candidate to host the 2036 Games if India’s bid is successful. 
  • IOA President PT Usha and other sports officials promoted the bid during the 2024 Paris Olympics and maintain close ties with IOC officials, reinforcing India's readiness to host the Games.
• India’s Push for Inclusion of Regional Sports
  • India aims to include yoga, a significant element of its cultural heritage, in the Olympic sports program. 
  • The Sports Ministry’s Mission Olympics Cell has identified six sports — yoga, Twenty20 cricket, kabaddi, chess, squash, and kho kho — for potential inclusion. 
  • Under IOC rules, a host nation can propose sports popular in its region for inclusion in that edition of the Games.

Q.1. What is India’s proposal for the 2036 Olympics?

India, through the Indian Olympic Association, has submitted a formal bid to host the 2036 Olympics, supported by Prime Minister Modi’s vision. Ahmedabad is a proposed host city, with additional support from India’s sports officials who are lobbying with the IOC.

Q.2. Which sports does India want to include in the Olympics?

India is keen on adding regionally significant sports to the Olympics, such as yoga, cricket (Twenty20), kabaddi, chess, squash, and kho kho. Under IOC guidelines, host nations can propose popular local sports for consideration.

News: 2036 Olympics: India makes hosting bid with ‘Letter of Intent’ to International Olympic Committee | International Olympic Committee | India Today