For UPSC CSE aspirants, analyzing editorials from The Indian Express is essential to build a comprehensive understanding of current affairs, policy debates, and socio-economic challenges. Here’s a structured breakdown of the editorial themes covered on January 27, 2025, tailored for UPSC preparation:
1. Our tax system retards growth. It’s time for an overhaul
India’s tax system has long been criticized for its complexity and growth-retarding nature. High tax rates, retrospective amendments, and a revenue-maximization focus have stifled economic growth, discouraged investment, and undermined trust in the rule of law. As we step into a new fiscal era, there’s an urgent need for reforms that prioritize growth, simplify taxation, and foster a business-friendly environment to unlock India’s true economic potential.
1. Symbolism of January and Introspection
- January is named after the Roman God Janus, symbolizing looking back and forward simultaneously.
- This time of introspection helps analyze past lessons and plan for the future.
2. Issues with the 55th GST Council Decisions
- Chronic tinkering with tax rates.
- Overruling adverse Supreme Court rulings through retrospective amendments.
- High tax rates suppress demand, dampen growth, and incentivize tax evasion and black-market activities.
3. Retrospective Taxation and Its Consequences
- Retrospective taxation, termed “tax terrorism” by Arun Jaitley, has been condemned by Prime Minister Modi.
- The 55th GST Council’s recommendation for retrospective amendments undermines Supreme Court judgments, such as the input tax credit for infrastructure projects.
- Such amendments damage India’s reputation as an investment destination and highlight the absence of rule of law.
4. The Vodafone Verdict Example
- A Supreme Court ruling in favor of Vodafone was nullified by a retrospective amendment.
- This led to an international arbitration award of ₹8,000 crore against India.
- Lesson: Avoid retrospective amendments to uphold judicial credibility and investor trust.
5. Revenue Maximization Focus: A Flawed Approach
- The GST Council’s single-minded revenue focus leads to:
- Complex tax rates and policies.
- Arbitrary demands through show-cause notices.
- Lack of rationalization of tax rates or simplification of compliance.
6. Issues in the Current GST Framework
- GST levied on goods and services but denying input tax credit is unfair.
- Taxing activities like lease rentals and joint development rights adds unnecessary burden, particularly on the real estate sector.
- Multiple taxes contradict the goal of affordable housing.
7. Empirical Studies Needed
- Research required on the effects of high taxes on:
- Consumption and demand stimulation.
- Indian products’ competitiveness against Chinese imports.
- Simplifying rates like a single 12% GST for hotels and restaurants or reducing the cement tax rate to 18%.
8. Historical Parallels: Lessons from 1950-1990
- A complicated tax system, exemptions, and high tax rates crippled the economy, leading to the 1991 liberalization.
- Signs of reverting to this retrograde system are visible, favoring professionals over businesses.
9. Adverse Economic Indicators
- Increased imports from China (from $70 billion in 2018-19 to $100 billion in 2023-24).
- Manufacturing sector’s share falling below 15% of GDP.
- Continuous depreciation of the Indian rupee.
10. The Economic Downward Spiral
- High taxes discourage fresh investments, leading to lower growth.
- Lower growth leads to reduced revenue, prompting even higher taxes – creating a vicious cycle.
11. Need for Reforms and a Growth-Oriented Tax System
- The GST Council and Central Board of Direct Taxes need a growth-maximization policy.
- Taxes should result from economic growth, not hinder it.
- Time for “Reforms 2.0” to achieve a 9-10% annual growth rate.
12. Long-term Fiscal Policy for 2025-2030
- The need for a courageous overhaul of the tax system.
- Focus on sustainable growth and development by moving away from regressive taxation practices.
2. Express View on S Jaishankar’s US visit: India should reap benefits with Trump 2.0 by embracing trade reform
External Affairs Minister S. Jaishankar’s two visits to Washington within a month underline the growing significance of India-US relations. Amid global turbulence and shifting dynamics under President Donald Trump’s second term, India aims to manage this partnership prudently, ensuring its long-term interests align with evolving global challenges.
1. India-US Engagement: Strengthening Ties Amid Change
- Jaishankar’s meetings with key officials, including National Security Advisor Michael Waltz and Secretary of State Marco Rubio during the QUAD Foreign Ministers’ meeting, highlight resilient India-US engagement.
- The visits reflect India’s focus on continuity in its strategic partnership with the US, especially amidst major policy shifts announced by Trump’s administration.
2. H-1B Visa and Immigration: Key Concerns
- The contentious H-1B visa issue remains a central topic. While India is willing to take back illegal immigrants after verification, Jaishankar emphasized the need for global opportunities for Indian talent and skills.
- Trump’s policy stance on immigration, including executive orders on birthright citizenship, presents challenges for Indian workers. Delhi hopes for outcomes that align with India’s interests while addressing US domestic concerns about wage suppression and job displacement.
3. Trade Reforms: A Crucial Opportunity
- Historically, trade has been a contentious issue between India and the US. Anticipating higher tariffs under Trump, India is considering recalibrating duties and increasing imports from the US as a short-term solution.
- In the long term, India must reform its trade policies, embracing deeper economic ties with the US to unlock sustained growth and access to global markets.
4. Technological and Economic Modernization
- The US, on the cusp of a technological revolution led by Artificial Intelligence and emerging industries, offers India a unique opportunity to collaborate and modernize.
- India must accelerate its technological reforms, revamp outdated laws, and position itself as a competitive player in the global technological ecosystem.
5. Strategic Takeaway
- With Trump 2.0, India’s path to strengthening its bilateral ties lies in balancing strategic cooperation with necessary domestic reforms.
- By embracing trade and technological modernization, India can maximize its partnership with the US, ensuring it remains aligned with the challenges of a rapidly changing global landscape.
In conclusion, Jaishankar’s proactive diplomacy reflects India’s intent to safeguard its interests while leveraging the potential benefits of a strong partnership with the US under Trump’s leadership. This calls for a clear focus on trade, immigration, and technological alignment to secure India’s position on the global stage.
3. Tigers crossing vast distances in east-central India bring a message of hope. If only we would listen
The movement of tigers across vast stretches of east-central India brings both a sense of optimism and critical lessons in conservation. Recent reports, including the journey of a tigress named Zeenat, spotlight the phenomenon of “straying” tigers. However, these movements reflect deeper issues within India’s wildlife conservation framework.
1. Why Tigers Migrate Long Distances
- Tigers in reserves of Madhya Pradesh (MP) and Maharashtra, which are densely populated with the species, are often forced to migrate due to territorial pressures.
- Males, particularly young ones seeking territory or older ones displaced by rivals, undertake long journeys, sometimes spanning thousands of kilometers, to find prey and mates.
- Females, in contrast, usually stay within a 100-200 km radius of their natal forests, with rare exceptions.
2. Successes in Conservation
- The rising tiger population in states like MP and Maharashtra highlights successful conservation efforts over the past 15 years.
- These states have created strong habitats, forcing surplus tigers to venture into less-populated regions in east-central India, such as Chhattisgarh, Jharkhand, and Odisha.
3. Conservation Failures: The “Empty Forest Syndrome”
- Despite their vast green cover, the forests of Chhattisgarh, Jharkhand, and Odisha suffer from a lack of prey and breeding tigresses.
- Rampant bushmeat hunting over decades has led to a significant depletion of prey species like sambar and chital, rendering these forests barren for sustaining tiger populations.
- Palamau Tiger Reserve, once a conservation success, exemplifies this failure, with its prey base and resident tigers wiped out entirely.
4. Challenges for Migrating Tigers
- Migrating tigers face numerous threats, including roads, railway lines, human settlements, mines, and hunting traps.
- With an inadequate wild prey base, tigers resort to preying on cattle, leading to frequent conflicts with local communities.
- Many tigers vanish during their journeys, often succumbing to these dangers.
5. Pit Stops for Migrating Tigers
- Certain areas, like Palamau Tiger Reserve (Jharkhand), Sunabeda and Debrigarh sanctuaries (Odisha), and the Kawal Tiger Reserve (Telangana), serve as temporary refuges for these wandering tigers.
- Two notable cases highlight long-distance journeys:
- A male tiger traveled from Sanjay Tiger Reserve (MP) to Guru Ghasidas (Chhattisgarh), stayed briefly in Palamau, and eventually reached Similipal (Odisha).
- Another male tiger from Guru Ghasidas moved eastward into Bengal’s Purulia district.
6. Message of Hope and Conservation Potential
- Despite challenges, the interconnected forests of east-central India remain potential habitats for tigers. These landscapes, if protected, can support thriving tiger populations.
- Preserving corridors and restoring prey bases could transform these “empty forests” into vibrant ecosystems once again.
- The journeys of these tigers remind us that wildlife can return to previously abandoned habitats if conservation efforts are strengthened.
Conclusion
The movement of tigers across east-central India is a dual narrative of success and failure. While India has made significant progress in increasing tiger numbers in some states, the plight of these wandering tigers underscores the urgent need for focused conservation efforts in underperforming regions. Their journeys carry a powerful message of hope: if we listen and act, forests can once again teem with life. The future of these majestic creatures depends on our commitment to safeguarding their habitats.
4. In our world filled with hypermasculinist, aggressive ideologies of violence and triumph, we need to be supportive and tender, always and everywhere
The article “How to Raise a Boy” explores the importance of nurturing children, especially boys, with patience, empathy, and support, emphasizing the need for a tender and supportive approach in a world filled with aggressive ideologies. The author contrasts two different parenting styles and their impacts on autistic children, illustrating how a caring environment fosters a child’s growth and well-being.
Anecdotes:
- Aashlesh’s Story:
- Aashlesh (Ashu), an autistic boy, is supported by his mother, who takes him to various therapists. Despite his challenges, Ashu excels in mathematics, plays the cello beautifully, and demonstrates unusual empathy.
- The contrast between his supportive mother and neglectful father, who punishes him harshly and dismisses his achievements, illustrates the crucial role of empathetic parenting in the development of children with disabilities.
- The Author’s Son’s Journey:
- The author’s son faced challenges with fine motor skills and was initially expected to struggle in school. Despite these early signs, the family was patient and supportive, which eventually led to his improvement in activities like ping-pong.
- The son’s eventual success and even his activism, such as founding an organization to support Palestinian war victims, demonstrate how patience, nurturing, and a supportive environment can help a child grow into a compassionate individual.
- The Author’s Friends’ Story:
- In upstate New York, the author’s friends document the life of their autistic child, capturing moments of social isolation, connection with others, and the boy’s growing use of language.
- This anecdote shows how observing and documenting a child’s individuality can help parents understand their child’s inner world and create a sense of belonging and validation.
Key Takeaways:
- Importance of Supportive Parenting:
- The article emphasizes the role of patient, supportive parenting, especially when raising children with disabilities such as autism.
- Parents should be tender and empathetic to ensure the child’s emotional and developmental growth.
- Impact of Non-Supportive Fathers:
- A powerful anecdote about Ashu, an autistic boy, highlights the emotional and developmental damage caused by a father’s neglect and harsh treatment.
- This contrasts with the story of a mother in upstate New York, who documents her autistic child’s journey, showing the difference supportive parenting can make.
- The Role of Education and Expert Aid:
- The author stresses the need for an educational system that supports children with disabilities, providing expert aid and intervention.
- These resources are described as a privilege, yet they should be considered a fundamental right.
- Social and Financial Priorities:
- The author advocates for more funding for services that support children with disabilities, like creches, hospitals, and schools, rather than extravagant national projects and military spending.
- The argument is made that social welfare and public health should be prioritized over defense spending.
- Empathy and Activism in Children:
- The article presents the example of the author’s son, who founded a local organization to support victims of war in Palestine, showing that children can develop a strong sense of empathy and activism if nurtured in a supportive environment.
- This also reflects the broader issue of cultivating social consciousness and empathy in children.
- Reflection on Hypermasculine Ideologies:
- The author critiques aggressive, hypermasculine ideologies and underscores the need for tenderness and care in raising boys, which contrasts with the prevailing cultural norms of violence and triumph.
5. In Our Opinion: 5 things to watch out for in the Budget
The article discusses key aspects to watch out for in the Union Budget 2025-26, highlighting concerns regarding economic growth, fiscal consolidation, and private sector investment. It emphasizes the need for bold steps to address structural impediments to growth, improve the labour market, and boost household consumption amidst domestic and global uncertainties.
Key Points:
- Economic Growth Assumptions:
- The budget will need to clearly define the expected economic growth rate. Past budgets assumed nominal GDP growth at 10.5%, but actual growth has been lower, raising concerns about the implications for debt and deficit management.
- A slowdown in GDP growth affects government projections and fiscal planning, making it essential for the government to present a realistic growth trajectory.
- Fiscal Consolidation:
- The government’s goal to reduce the fiscal deficit to below 4.5% by 2025-26 needs further clarification, especially as some argue for relaxing fiscal consolidation to allow for increased government spending.
- A medium-term fiscal policy statement would help in understanding the government’s approach to fiscal discipline and debt management.
- Private Sector Investment and Job Creation:
- The budget should focus on measures to encourage private sector investment, which has been sluggish despite tax cuts and government capital expenditure (capex). Increasing private sector confidence is crucial for job creation, boosting household incomes, and stimulating demand.
- There is a need for structural reforms that make the business environment more conducive to private investments.
- Labour Market and Employment:
- Data from the Periodic Labour Force Survey (PLFS) show a rise in self-employment, especially in rural areas, and a stagnant real wage growth, highlighting the weakening labour market.
- The budget must address unemployment issues and focus on policies that provide better job opportunities, particularly in sectors beyond agriculture.
- Household Consumption:
- Weak household consumption, as reflected in flat FMCG growth and moderating GST collections, calls for targeted policy interventions. While tax cuts might boost demand, their effectiveness in a broad sense is debatable.
- The budget needs to focus on measures that stimulate demand, such as improving disposable incomes and reducing debt burdens for households.
- Trade Policy and Protectionism:
- The government’s approach to trade will be crucial. The budget should signal a shift from protectionist policies by lowering tariffs and facilitating the integration of Indian companies into global supply chains.
- A reexamination of trade policies could open up new opportunities for economic growth and global competitiveness.
- Privatization and Structural Reforms:
- A bold and transparent privatization programme could help the government raise resources and improve the efficiency of state-owned enterprises.
- The budget must outline clear plans for privatisation and other structural reforms to address growth barriers.
Disclaimer:
This analysis is based on the editorial content published in Indian Express and is intended solely for informational and educational purposes. The views, opinions, and interpretations expressed herein are those of the author of original article. Readers are encouraged to refer to the original article for complete context and to exercise their own judgment while interpreting the analysis. The analysis does not constitute professional advice or endorsement of any political, economic, or social perspective.
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