Analyzing editorials from The Hindu is a crucial component of Civil Services Examination preparation. These editorials offer insightful perspectives on current national and international issues, fostering critical thinking and enhancing one’s understanding of diverse topics relevant to the UPSC syllabus. Through this analysis, aspirants can refine their skills in comprehension, articulation, and issue-based evaluation, which are essential for the Preliminary, Mains, and Interview stages of the examination.
1. Water woes: on the state of India’s groundwater
India is grappling with rising nitrate contamination in groundwater, affecting over half of its districts. A report by the Central Ground Water Board (CGWB) highlights concerns over health risks like ‘Blue Baby Syndrome’ and environmental damage from algal blooms. The issue, linked to intensive agriculture and over-exploitation, is compounded by other contaminants such as fluoride and uranium. Despite robust monitoring systems, action at the state level remains insufficient.
- Rising Nitrate Levels in Groundwater:
- The number of districts with excessive nitrate in groundwater has risen from 359 in 2017 to 440 in 2023.
- Over half of India’s 779 districts (more than 45 mg/L of nitrate) have excessive nitrate levels.
- Concerns include:
- Methemoglobinemia: A reduced ability of red blood cells to carry oxygen, leading to ‘Blue Baby Syndrome’ in infants.
- Environmental Impact: Nitrate contamination leads to algal blooms in lakes and ponds, harming aquatic ecosystems.
- Findings from the Central Ground Water Board (CGWB):
- 15,239 groundwater samples were analyzed.
- 19.8% of samples had nitrate levels above safe limits, a slight improvement from 21.6% in 2017.
- States with the highest nitrate contamination:
- Rajasthan: 49% of samples exceed limits.
- Karnataka: 48% of samples exceed limits.
- Tamil Nadu: 37% of samples exceed limits.
- Perennial nitrate issues in Rajasthan, Madhya Pradesh, and Gujarat due to geological factors.
- Central and Southern India are seeing a rise in nitrate contamination, raising concerns.
- Correlation Between Intensive Agriculture and Nitrate Contamination:
- Studies show a direct correlation between elevated nitrate levels and intensive agricultural practices.
- Other Chemical Contaminants:
- Fluoride: Exceeding permissible limits in Rajasthan, Haryana, Karnataka, Andhra Pradesh, and Telangana.
- Uranium: Another significant contaminant affecting groundwater quality.
- Groundwater Extraction and Over-exploitation:
- 60.4% of the country’s groundwater is being extracted, maintaining levels similar to those since 2009.
- 73% of the analyzed groundwater blocks are in the ‘safe’ zone, meaning their replenishment rate is adequate to compensate for extraction.
- Need for Action and Awareness:
- Despite a robust scientific system to monitor groundwater health, action at the state level is lacking.
- Greater efforts are needed in raising awareness, with leadership from the highest levels of government to address the groundwater crisis.
Source: TH
2. India, Cross-Border Insolvency, and Legal Reform
Introduction:
- The rise in international trade has brought cross-border insolvency challenges to the forefront, emphasizing the need for an effective insolvency framework to ensure economic stability, attract foreign investments, and enable corporate restructuring.
Historical Context:
- India’s first insolvency law, the Indian Insolvency Act of 1848, was replaced by the Presidency-Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920. These laws addressed domestic insolvencies but left a significant gap in handling cross-border insolvencies.
Post-Independence Evolution:
- After independence, these laws remained unchanged despite recommendations for modernization. In the 1990s, global economic liberalization brought attention to the need for comprehensive insolvency laws, including provisions for cross-border cases.
- Several committees, including the Eradi Committee (2000), Mitra Committee (2001), and Irani Committee (2005), advocated for adopting the UNCITRAL (United Nations Commission on International Trade Law) Model Law on Cross-Border Insolvency (1997).
Insolvency and Bankruptcy Code (IBC):
- In 2015, the Bankruptcy Law Reform Committee drafted the Insolvency and Bankruptcy Code (IBC) focusing on domestic insolvencies. However, concerns arose about the lack of cross-border insolvency provisions, leading to the inclusion of Sections 234 and 235 in the IBC, which address reciprocal agreements and foreign court assistance.
Challenges in Cross-Border Insolvency:
- The case of State Bank of India vs Jet Airways (India) Limited (2019) highlighted two critical issues:
- The absence of a reciprocal agreement between India and the Netherlands for cross-border insolvency resolution.
- The non-notification of Sections 234 and 235, rendering them legally unenforceable.
- These provisions were deemed “dead letters” as they cannot be practically applied due to the lack of a reciprocal arrangement and government notification.
Efforts for Reform:
- The Ministry of Corporate Affairs set up expert committees such as the Insolvency Law Committee (2018) and the Cross-Border Insolvency Rules/Regulation Committee (2020). Both committees recommended adopting the UNCITRAL Model Law.
- These recommendations were endorsed by the Parliamentary Standing Committee on Finance in 2021 and 2024, stressing the urgency of implementing a cross-border insolvency framework to strengthen the IBC.
Ad Hoc Solutions and the Need for Structured Reform:
- Cross-border insolvency protocols, while useful for individual cases, remain ad hoc solutions. They require court approvals, leading to increased judicial burden, delays, and higher transaction costs, which reduce the value of assets for debtors.
- Experts recommend adopting the UNCITRAL Model Law to establish a structured, predictable framework for cross-border insolvency.
Modernizing Judicial Communication:
- Outdated communication methods between Indian and foreign courts hinder the efficient handling of cross-border insolvency cases. The adoption of the Judicial Insolvency Network (JIN) Guidelines (2016) and Modalities of Court-to-Court Communication (2018) would modernize coordination, enhance transparency, and improve the handling of such matters.
NCLT’s Role and the Need for Expanded Powers:
- Section 60(5) of the IBC restricts civil courts from handling insolvency matters, leaving the National Company Law Tribunal (NCLT) as the sole adjudicating authority. However, the NCLT lacks the power to recognize or enforce foreign judgments, limiting its effectiveness in cross-border insolvency cases.
- The failure to implement Rule 11 of the NCLAT Rules (2016), which would allow the NCLT to exercise inherent jurisdiction and comity in cross-border cases, exacerbates these limitations. Expanding the powers of the NCLT is essential for improving cross-border insolvency management.
Conclusion:
- The slow progress in amending India’s cross-border insolvency framework continues to hinder its effectiveness. There is an urgent need for comprehensive reforms, including the adoption of the UNCITRAL Model Law, enhanced judicial communication, and expanded powers for the NCLT, to ensure a functional and predictable system for cross-border insolvency cases in India.
Source: TH
3. The Looming Threat to Federalism and Democratic Tenets
Introduction:
- The ruling Bharatiya Janata Party (BJP) and the National Democratic Alliance (NDA) have been pushing the concept of One Nation, One Election (ONOE), which proposes synchronizing Lok Sabha and State Assembly elections. Proponents argue this would bring administrative and fiscal efficiencies, but critics believe it undermines India’s federal structure and democratic principles.
Historical Context:
- India initially held simultaneous elections for both Parliament and State Assemblies after Independence. However, this practice was disrupted with the introduction of Article 356 (President’s Rule), which has been misused over time to dissolve State governments for political reasons, undermining the autonomy of States.
The Problem with One Nation, One Election:
- The ONOE proposal suggests amending the Constitution, particularly Articles 83 and 172, to align State elections with the Lok Sabha cycle. This would force States to adjust their terms, either shortening or extending them, to fit into a unified electoral schedule. Such an arrangement could lead to truncated government tenures, which undermine the electoral mandate, diluting democratic representation and reducing the effectiveness of the voter’s voice.
Impact on Federalism:
- India’s federal system allows States to address localized issues independently. If State elections are synchronized with national elections, voters may find it difficult to evaluate the performance of their local governments, as State issues could be overshadowed by national concerns.
- Midterm elections for States, forced into the ONOE cycle, would lead to shortened terms for elected governments, eroding the principle of “one person, one vote, one value” as State governments would be expected to function with abbreviated tenures. The imposition of ONOE would also add significant financial, administrative, and logistical burdens, particularly for a large electorate like India’s.
Challenges with Article 356 and Anti-Defection Laws:
- The misuse of Article 356, often used to dissolve elected State governments, undermines the federal framework. The Anti-Defection Law, introduced through the 52nd Amendment Act of 1985, has failed to prevent defections, weakening the stability of State governments. Despite the law, loopholes and delays in decision-making make it ineffective, leading to political instability.
Logistical and Governance Issues:
- Synchronizing Lok Sabha, State, and local elections would require significant resources and increase the burden on the Election Commission of India (ECI), security forces, and administrative machinery. The risk of voter fatigue and confusion is a concern, which could negatively impact the election process.
Recommendations for Reform:
- Before pushing ONOE, systemic reforms should be implemented to address the misuse of Article 356 and strengthen anti-defection laws. Ensuring the stability and autonomy of State governments is vital to preserving India’s federal structure.
- ONOE should not be used as a tool for centralizing power at the national level. If the necessary reforms are not made, the ONOE could undermine the basic structure of the Constitution and harm Indian democracy.
Conclusion:
- ONOE, without addressing foundational issues in the current governance structure, could become a threat to the federal character of India. For true democratic governance, reforms need to be made to ensure accountability to the Constitution and strengthen State governments as equal partners in India’s federal polity.
Source: TH
4. Losing Momentum: On Slowing Consumption Demand
Overview: Recent economic indicators suggest that consumption demand in India is slowing, posing a challenge to the Finance Ministry and Reserve Bank of India’s growth expectations for the second half of 2024-25. While policymakers had hoped for a recovery in the latter half of the fiscal year, the latest data shows that consumption trends, especially in urban areas, are weak, and the festive season’s potential boost may not be enough to turn things around.
Economic Indicators:
- GDP Growth: India’s GDP growth slowed to 5.4% in Q2 2024-25, and while policymakers termed this as a transient blip, they acknowledged that the main driver for this slowdown is the weakening consumption demand.
- Bank Credit Growth: Bank credit growth slowed for the fifth consecutive month in November 2024, indicating a tightening of liquidity and reduced spending power.
- Core Infrastructure: The core infrastructure sectors, which make up about 40% of industrial output, showed a modest growth of 4.3%. However, six out of eight sectors were operating at lower capacities, indicating production constraints.
- Factory Activity: The Purchasing Managers’ Index (PMI) revealed that factory activity was at its weakest level for 2024, despite rising input costs and price hikes, which could further dampen demand.
GST Receipts:
- December GST Collections: The Goods and Services Tax (GST) receipts for December were ₹1.77 lakh crore, marking a three-month low and a growth of just 7.3% year-on-year. This is the second-slowest rate in the past three and a half years, continuing a trend of declining growth rates. The revenue growth from domestic transactions slowed to 8.4%, and import revenue growth was just 3.9%.
- State-Specific Trends: Some major consumer States, including Uttar Pradesh (1%) and Gujarat (4%), showed poor revenue growth, while states like Andhra Pradesh and several northeastern states, including Manipur, continued to experience contraction.
Implications for the Budget:
- The slowing consumption demand and declining GST receipts suggest that the Finance Ministry may face challenges in meeting the 11% revenue growth target set in the Union Budget. As the ministry prepares its economic blueprint for 2025-26, addressing the pain points of consumption, such as high inflation, will be critical to setting a more realistic economic forecast.
Conclusion: The slowing consumption demand, combined with underperforming economic indicators, signals that the economy may struggle to gain momentum in the second half of 2024-25. Policymakers will need to address structural issues such as inflation and consumption patterns to ensure a sustainable economic recovery and meet the revenue targets for the upcoming fiscal year.
Source: TH
Also Read:
1. The Hindu Editorial Analysis- Jan 03, 2025
2. Indian Express Editorial Analysis- January 03, 2025
Disclaimer:
This analysis is based on the editorial content published in The Hindu 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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