Content:
- The role of communities in conserving water
- Panel seeks comprehensive review of GST framework
- LS passes law to set up Tribhuvan University
- Non-performing assets of banks at multi-year low, profits up: Finance Minister
- DRDO test-fires vertically launched SAM for Navy
The role of communities in conserving water
Context : Community-led water conservation is vital for sustainable management, yet policies often limit their decision-making role. Strengthening traditional practices, integrating ecological perspectives, and ensuring climate resilience can enhance water governance.
Relevance : GS 1(Society ) ,GS 2(Governance) ,GS 3(Environment )
Importance of Community Participation in Water Conservation
- Traditional Knowledge: Indigenous and rural communities possess deep ecological knowledge about water conservation.
- Policy Gap: Existing policies emphasize participation but limit decision-making power.
- Example – Water User Associations (WUAs): Farmers manage irrigation but lack control over governance decisions.
Addressing Vulnerability in Water Policies
- Social and Economic Disparities: Marginalized groups face disproportionate water crises.
- Intersectionality: Women, landless laborers, and SC/ST communities bear the highest burden.
- Empowerment in Decision-Making: Policies must ensure their agency is acknowledged.
Overcoming Fragmentation in Water Management
- Current Issues: Water, land, and biodiversity are governed separately, reducing efficiency.
- Need for an Integrated Approach: Policies must reflect ecosystem interdependence.
- Example – Orans in Western India: Sacred forests that enhance water conservation through natural rainwater harvesting.
Recognizing the Rights of Nature in Water Policies
- Global Trend: Environmental governance is shifting towards a more-than-human perspective.
- Judicial Interventions: Courts have upheld the intrinsic value of nature, but water policies remain human-centric.
- Example – Traditional Practices: Certain communities allocate water to animals before irrigation, recognizing ecological balance.
Climate Change and Water Scarcity
- Impact on Water Availability: Rising global temperatures exacerbate water gaps.
- Policy Integration Needed: Water and climate policies must align to create resilient ecosystems.
- Adaptation Strategies: Focus on climate-resilient water management techniques.
Moving Beyond Rhetoric: Strengthening Community-Centered Policies
- Beyond Token Participation: Ensure communities play a central role in decision-making.
- Sensitization and Capacity Building: Address knowledge gaps without undermining traditional wisdom.
- Forward and Backward Linkages:
- Forward Linkages: Community-led conservation can inform national water governance strategies.
- Backward Linkages: Policies should recognize historical and cultural conservation efforts.
Conclusion
For effective water conservation, India must shift from a top-down, bureaucratic approach to a community-led, decentralized model that integrates traditional wisdom, ecological interdependence, and climate resilience.
Panel seeks comprehensive review of GST framework
Context : The PAC has urged the Finance Ministry to simplify the GST regime by eliminating unnecessary compliance burdens, improving the refund mechanism, and leveraging AI for better revenue forecasting. Key recommendations focus on easing MSME compliance, ensuring fair penalties, and streamlining the GST portal for user-friendliness.
Relevance : GS 2 (Governance & Transparency) ,GS 3 (Indian Economy & Taxation)
Need for Comprehensive GST Reform
- Simplification of Compliance Procedures
- PAC recommends eliminating unnecessary procedures and requirements.
- Calls for streamlining the GST return filing process by consolidating forms.
- Advocates for reducing the frequency of filing returns where feasible.
- Proposes a tiered compliance approach to ease the burden on MSMEs.
- Enhancing GST Portal User-Friendliness
- PAC stresses the need for an intuitive digital interface for taxpayers.
- Ensuring real-time guidance and support at every step.
Addressing Compliance Challenges
- Unfair Penalty Structure
- Highlights disproportionate penalties for compliance failures.
- Recommends a fairer penalty system to differentiate between intentional fraud and unintentional errors.
- Calls for decriminalization of minor procedural errors in tax filing.
- Aadhaar-Based Registration Issues
- Identifies inefficiencies in biometric-based Aadhaar authentication.
- Warns that current implementation flaws could hinder the “One Nation, One Tax” vision.
- Calls for a more efficient and foolproof registration mechanism.
Revenue Projections & AI Integration
- Declining Share of Indirect Taxes
- Share of indirect taxes in total revenue fell from 38.76% (2017-18) to 36.92% (2019-20).
- Calls for improving revenue forecasting to ensure tax stability.
- Use of AI and Data Analytics
- Recommends leveraging AI and big data for accurate revenue projections.
- Ensuring efficient tracking of tax collection trends and addressing revenue leakages.
Transparent and Efficient Refund Mechanism
- Issues with GST Refunds
- Recommends clear timelines for refund processing to avoid delays.
- Calls for a dedicated grievance redressal mechanism for refund-related disputes.
- Suggests an automated tracking system to keep taxpayers informed about refund status.
Special Focus on MSMEs
- Simplified Compliance for Small Businesses
- Recommends a special compliance framework for MSMEs.
- Automated return filing and refund processing for ease of business.
- Reducing filing frequency and enabling a more streamlined online reporting system.
Potential Impacts
- Economic Growth & Ease of Doing Business
- Simplification of GST compliance will reduce business costs.
- MSMEs will benefit from lower compliance burdens, improving their competitiveness.
- Efficient refund mechanisms will ensure better liquidity for businesses.
- Increased Taxpayer Trust & Compliance
- A fairer penalty structure will encourage voluntary compliance.
- Better user experience on GST portal will reduce procedural hurdles.
- AI-driven revenue forecasting will enhance government’s fiscal planning.
Root Causes & Past Issues
- Initial GST Implementation Challenges
- Frequent changes in GST rates created uncertainty for businesses.
- Complex return filing system made compliance difficult, especially for MSMEs.
- Refund delays led to working capital issues for exporters.
- Previous Reforms & Their Limitations
- E-invoicing and QRMP (Quarterly Return Monthly Payment) attempted to simplify compliance but still required further ease of access.
- Introduction of faceless assessment aimed at reducing human intervention but needed better execution.
Conclusion
The PAC’s recommendations aim to transform GST into a truly business-friendly and efficient tax regime. Implementing simplified compliance, AI-driven revenue estimation, and a transparent refund system will strengthen India’s indirect tax structure while fostering economic growth and ease of doing business.
LS passes law to set up Tribhuvan University
Key Provisions of the Bill
- Establishes Tribhuvan Sahkari University as India’s first national cooperative university.
- Location: Institute of Rural Management Anand (IRMA), Gujarat.
- Operates on a hub-and-spoke model, integrating cooperative training institutes across all States.
- Offers degree, diploma, and PhD courses focused on cooperatives.
- Estimated to provide certification to around 8 lakh individuals annually.
- Named after Tribhuvan Kashibhai Patel, founder of Amul and a key figure in India’s cooperative movement.
Relevance: GS 2 (Governance), GS 3 (Economy)
Future Implications & Impact
Strengthening the Cooperative Sector
- Will create a skilled workforce to manage and modernize cooperatives.
- Expected to enhance efficiency and governance in cooperative societies.
Rural Development & Economic Growth
- Cooperatives are vital for rural India, supporting farmers, artisans, and small businesses.
- The university will provide technical and managerial knowledge to improve cooperative enterprises.
Integration with Digital and Financial Inclusion
- Courses may cover financial literacy, digital payment systems, and cooperative banking, aiding in the digital transformation of cooperatives.
- Can strengthen linkages with institutions like NABARD, State Cooperative Banks, and FPOs (Farmer Producer Organizations).
Potential Model for Other Sectors
- If successful, similar universities can be established for sectors like agriculture, dairy, fisheries, and microfinance.
- May lead to the formation of a cooperative-driven knowledge economy.
Context & Historical Relevance
Legacy of the Cooperative Movement in India
- Inspired by Verghese Kurien’s White Revolution, which made India a global leader in dairy production.
- Amul, IFFCO, KRIBHCO, and other cooperatives have played a key role in economic self-sufficiency.
Policy & Legislative Background
- Aligns with the National Cooperative Policy, which emphasizes capacity-building.
- Follows the establishment of the Ministry of Cooperation (2021), signaling renewed focus on cooperatives.
Link to Previous Educational Initiatives
- Builds on existing cooperative training institutes, consolidating them under a national framework.
- Similar to past initiatives like IRMA’s cooperative management programs.
Challenges & Concerns
Effective Implementation & Outreach
- Ensuring quality faculty, updated curricula, and practical training will be crucial.
- Need to engage rural and tribal cooperatives, which may face barriers to higher education.
Autonomy & Governance
- Must maintain academic independence while aligning with government policies.
- Potential risk of politicization or bureaucratic inefficiencies.
Financial Sustainability
- Requires strong funding mechanisms to support infrastructure, faculty, and scholarships.
- Cooperative businesses must actively contribute to the university’s development.
Conclusion
The Tribhuvan Sahkari University marks a major milestone in institutionalizing cooperative education. If implemented effectively, it can bridge knowledge gaps, enhance rural livelihoods, and contribute to India’s economic self-reliance through a well-trained cooperative workforce. However, sustained policy support, financial backing, and industry collaboration will be key to its success.
Non-performing assets of banks at multi-year low, profits up: Finance Minister
Context : The Banking Regulation Bill and financial reforms have led to record-low NPAs, high PSB profits, and expanded financial inclusion.
Relevance : GS 2(Governance) ,GS 3(Economy )
Banking Regulation Bill: Key Amendments
- Scope: Amends provisions across five banking-related Acts, impacting 19 sections.
- Objectives:
- Strengthens governance in the banking sector.
- Standardizes reporting to the RBI.
- Enhances depositor and investor protection.
- Improves audit quality in public sector banks.
- Simplifies nomination procedures, allowing up to four nominees per account.
- Extends the tenure of directors in cooperative banks.
Non-Performing Assets (NPAs) at Multi-Year Low
- Current Status: Gross NPAs of scheduled commercial banks fell to 2.5% (Sept 2024)—a significant decline over the years.
- Contributing Factors:
- Strengthened governance and risk assessment frameworks.
- Better loan monitoring and recovery mechanisms.
- Implementation of Insolvency and Bankruptcy Code (IBC) reforms.
- Stringent action against willful defaulters.
Record Profitability of Public Sector Banks (PSBs)
- Financial Performance:
- Public sector banks (PSBs) posted ₹1.41 lakh crore in net profits in the previous fiscal year.
- Reflects improved efficiency, asset quality, and loan recovery strategies.
Government Stance on Wilful Defaulters
- Opposition Criticism: Allegations that the government allowed defaulters to flee abroad.
- Government Response: Commitment to strict action, aided by measures like:
- Strengthened Fugitive Economic Offenders Act.
- Coordination with foreign governments for extradition and asset recovery.
- Increasing accountability in loan disbursement processes.
Debt Waivers and Alternative Support for Farmers
- No Blanket Debt Waivers:
- Government opposes large-scale debt waivers, citing fiscal discipline.
- Instead, direct cash transfers through PM Kisan Samman Nidhi provide targeted assistance.
Financial Inclusion and Banking Expansion
- Support for Small Entrepreneurs & Vendors:
- PM SVANidhi: Helped 68 lakh street vendors with micro-loans.
- PM Mudra Yojana: Over 50 crore loans sanctioned, promoting self-employment.
- Banking Infrastructure Growth:
- 98% of villages (6.01 lakh villages) now have a bank or post office with banking services.
- Employment in PSBs: 3.9 lakh posts filled over the last decade, strengthening manpower.
Conclusion
- The banking sector has witnessed major improvements in governance, financial health, and inclusion under recent reforms.
- Challenges remain in handling stressed assets, wilful defaults, and ensuring equitable credit access.
- Future focus should be on further strengthening regulatory oversight, digital banking expansion, and reducing informal credit dependency in rural areas.
DRDO test-fires vertically launched SAM for Navy
Overview of the Test
- DRDO successfully tested the Vertically Launched Short-Range Surface-to-Air Missile (VLSRSAM) for the Indian Navy.
- The test was conducted at the Integrated Test Range (ITR), Chandipur, Odisha.
- It was launched from a land-based vertical launcher at around noon.
- The missile successfully intercepted a high-speed aerial target at very close range and low altitude.
Relevance : GS 3(Science and Technology)
Significance for Indian Navy
- Enhanced Air Defence Capability: Provides the Navy with an advanced air defence system against aerial threats like fighter jets, UAVs, and cruise missiles.
- Force Multiplier: Defence Minister Rajnath Singh called it a “force multiplier”, indicating its strategic importance in naval warfare.
- Protection of Naval Assets: Strengthens India’s maritime security by protecting warships, aircraft carriers, and other naval assets from aerial attacks.
- Indigenous Defence Development: Aligns with Aatmanirbhar Bharat, reducing dependence on foreign missile systems.
Technical Aspects of VLSRSAM
- Type: Short-range, surface-to-air missile (SAM).
- Launch System: Vertically launched, allowing 360-degree engagement.
- Targeting Capability: Designed to neutralize high-speed aerial threats at low altitudes.
- Operational Environment: Can be deployed on both land-based and sea-based platforms.
- Guidance System: Likely to include active radar homing and advanced navigation for precise interception.
Strategic Implications
- Strengthening Maritime Security: Enhances India’s ability to counter air threats in the Indian Ocean Region (IOR).
- Deterrence Against Hostile Forces: Improves the Navy’s defence against potential aerial attacks from adversarial forces.
- Integration with Naval Platforms: Expected to be deployed on destroyers, frigates, and aircraft carriers for layered defence.
- Global Comparisons: Comparable to Barak-1 (Israel) and RIM-162 Evolved Sea Sparrow Missile (USA) in terms of capabilities.
Way Forward
- Further Testing: More trials needed to validate operational efficiency in diverse conditions.
- Integration with Warships: Seamless integration with Indian Navy’s existing weapon systems.
- Production and Deployment: Scaling up mass production for deployment across the fleet.
- Export Potential: Possibility of exporting the system to friendly nations under Defence Export Policy.
