Content
- Valley and hills
- Equitable distribution
- India’s geopolitical vision should be larger
Valley and Hills
Historical Context and Separatist Politics
- Origins of Separatism: The demand for autonomy in J&K traces back to the post-independence period, fueled by political instability and Pakistan’s vested interests.
- Role of Hurriyat and Other Groups: The Hurriyat Conference, a coalition of pro-separatist entities, historically influenced J&K’s political discourse, often aligning with Pakistan.
- Previous Government Engagements:
- P.V. Narasimha Rao (1990s): Initiated backchannel talks with separatists.
- Atal Bihari Vajpayee (1999-2004): Advocated “Insaniyat, Jamhooriyat, and Kashmiriyat” and engaged in diplomatic talks with Pakistan.
- Manmohan Singh (2004-2014): Facilitated dialogue, but without a breakthrough.
Relevance : GS 1(Post Independence), GS 2(International Relations) , GS 3(Internal Security)
Practice Question : Discuss the historical origins of separatist politics in Jammu & Kashmir and analyze the impact of the post-2014 policy shift on separatist movements. What measures are necessary to ensure long-term stability and integration in the region? (15 marks, 250 words)
Shift in Approach Post-2014
- End of Political Engagement with Separatists: Unlike predecessors, the Modi government took a hard stance, ceasing formal talks with separatist groups.
- 2019 Abrogation of Article 370:
- Revoked J&K’s special status, integrating it fully into the Indian Union.
- Reorganized the region into two Union Territories—J&K and Ladakh.
Decline of Separatism in J&K
- Ban on Key Separatist Organizations:
- Jamaat-e-Islami, JKLF, Hurriyat factions, and other militant outfits declared unlawful.
- Leaders jailed or politically marginalized, reducing their influence.
- Formal Dissociation of Separatist Leaders:
- Groups like J&K Peoples Movement and Democratic Political Movement abandoned separatist ideology.
- This reflects a weakening separatist sentiment, at least at the leadership level.
- Increased Security Presence: Heavy military deployment has prevented large-scale insurgency but raises concerns about long-term stability.
Emerging Security Challenges
- Militancy’s Tactical Shift:
- From urban radicalization to rural guerrilla warfare.
- Use of advanced communication and terrain-mapping technologies.
- Pakistan’s Role:
- Despite internal turmoil, Pakistan continues to fund and support terror networks.
- The LoC remains an infiltration hotspot.
The Path to Stability
- Restoration of Statehood:
- The Centre must fulfill its promise to reinstate J&K’s full statehood.
- Essential for fostering democratic participation and trust.
- Grassroots Political Empowerment:
- Need to strengthen panchayati raj institutions and encourage regional political parties.
- Ensuring free and fair elections is crucial for legitimacy.
- Economic Development as a Tool for Integration:
- Boosting tourism, horticulture, and IT sectors to provide employment.
- Addressing economic grievances to reduce alienation among youth.
Lessons from Other Conflict Zones
- North-East Peace Accords:
- Comparison with the Naga peace process, where gradual negotiations led to de-escalation.
- Adaptive approach needed for J&K to accommodate regional aspirations.
- Punjab’s Post-Militancy Recovery:
- Economic incentives and strong local governance played a crucial role in Punjab’s stability post-Khalistan insurgency.
- J&K requires a similar governance-led approach to consolidate peace.
Conclusion: The Need for People’s Participation
- Security Alone is Insufficient: Trust-building measures must complement military efforts.
- Inclusive Dialogue: A multi-stakeholder approach, including mainstream political parties and civil society, is needed.
- Long-Term Vision: J&K’s integration should be driven by economic growth, cultural reconciliation, and democratic participation.
Equitable Distribution
Current Context
- The 19th report of the Parliament’s Public Accounts Committee (PAC) has critically examined the GST regime and highlighted key issues related to revenue distribution, federal structure, and tax compliance.
- The report underscores a 2% drop in indirect tax revenue between FY18 and FY20, even before the COVID-19 pandemic.
- Major concerns raised include:
- Non-finalization of the States’ Compensation Fund for six years.
- Failure of the Centre to submit the Compensation Fund Account to the Comptroller and Auditor General (CAG).
- Sharp decline in States’ fiscal autonomy under the GST framework.
- Audit inconsistencies amounting to₹32,577.73 crore in sampled cases.
Relevance : GS 2(Polity , Governance)
Practice Question : The 19th report of the Parliament’s Public Accounts Committee (PAC) has highlighted major concerns regarding the GST regime, particularly in terms of revenue sharing and fiscal federalism. Critically analyze the impact of GST on state finances and suggest measures for making the system more equitable. (15 marks, 250 words)
Issues with the Current GST Regime
Fiscal Imbalance and Compensation Delay
- The GST (Compensation to States) Act, 2017 assured States a 14% annual revenue growth for five years using FY16 as the base year.
- However, States have faced serious delays or non-receipt of funds, impacting governance.
- The Compensation Fund was meant to address concerns of manufacturing-heavy States that lost revenue due to GST’s destination-based taxation model.
Centralization vs. Federalism
- GST has been criticized for its centralizing tendencies, reducing the tax autonomy of major revenue-generating States.
- Manufacturing States like Maharashtra, Tamil Nadu, Gujarat, and Karnataka have raised concerns over shrinking tax revenues post-GST.
- The PAC suggests a higher share of GST revenue for States (closer to 70%-80%), as opposed to the current 50% division between Centre and States.
Audit and Accountability Gaps
- The PAC cites 2,447 inconsistencies in audit cases, raising concerns over financial transparency.
- The Finance Ministry’s approach to audits has been labeled “lackadaisical”, with the PAC urging a formal audit mechanism with the CAG.
PAC Recommendations and GST 2.0 Proposal
Timely Audits and Transparency
- Establish a formal mechanism with the CAG for real-time auditing of GST collections and compensation.
- Ensure regular reporting and finalization of the Compensation Fund Account.
Redefining Revenue Sharing
- States demand a larger share of GST revenues, increasing from 50% to 70%-80%, given their role in economic activities.
Structural Reform – GST 2.0
- A comprehensive review of the GST system to make it more equitable for States.
- Addressing compliance burdens, revenue leakages, and reducing delays in fund transfers.
Impact on Other Areas
- Fiscal Federalism: Strengthening States’ financial independence aligns with 15th Finance Commission recommendations on revenue distribution.
- Ease of Doing Business: GST simplifications and timely refunds will improve investor confidence and economic stability.
- Social Sector Spending: Ensuring timely GST compensation will support States’ spending on healthcare, education, and infrastructure.
- Digital Taxation Reform: Implementation of AI-driven tax compliance monitoring for better GST tracking and fraud detection.
Historical Perspective
- Pre-GST Taxation System:
- Indirect taxes like VAT, CST, excise, and service tax allowed States greater revenue control.
- GST aimed to unify the tax structure but weakened States’ taxation powers.
- GST Compensation Mechanism (2017-2022):
- The five-year compensation period ended in June 2022, leading to concerns about long-term State revenues.
- 13th and 14th Finance Commission Reports:
- Advocated for decentralization of fiscal powers to ensure States’ financial health.
Conclusion
- The PAC report underscores critical structural flaws in the GST regime, impacting States’ revenues and overall fiscal federalism.
- Implementing GST 2.0 with enhanced revenue-sharing and transparency measures is essential to restore States’ trust in the system.
- Addressing the Centre-State financial imbalance is crucial for ensuring equitable economic growth and smooth governance across India.
India’s geopolitical vision should be larger
Current Context & News Relevance
- Russian President Vladimir Putin thanked PM Narendra Modi for efforts to end the Ukraine-Russia war.
- India’s stance on international conflicts, including its balanced approach in the UNSC, has gained credibility.
Relevance : GS 2(International Relations)
Practice Question : In an era of shifting global power dynamics, India must move beyond economic considerations and adopt a larger geopolitical vision. Discuss India’s historical approach to global conflicts and suggest policy adjustments to enhance its strategic influence in the evolving world order. (15 marks, 250 words)
India’s Geopolitical Evolution
Historical Role in Global & Regional Conflicts
- Bangladesh Liberation War (1971) – India played a decisive role in stopping genocide and enabling Bangladesh’s independence.
- Maldives (1988) – Prevented a coup attempt against the President by armed mercenaries.
- Sri Lanka (2009) – Assisted in the defeat of the LTTE, impacting regional security.
- Anti-Piracy Operations – Strong naval presence in the Indian Ocean Region (IOR).
- Cold War & Non-Alignment – Led the Non-Aligned Movement (NAM), giving voice to the Global South.
Implication:
- India’s past proactive stance in regional conflicts shows its capability, but recent geopolitical hesitancy is limiting its global influence.
India’s Recent Hesitation in Global Conflicts
- Economic Prioritization: Focus on growth (now 5th largest economy) may have led to caution in geopolitical interventions.
- Bilateral Relations Sensitivity: Avoiding conflicts that could upset key partnerships (e.g., balancing between Israel and Arab nations in the Gaza crisis).
- Regional Power Balance: Preference for Gulf nations to take the lead in West Asia instead of India asserting itself.
Implication:
- While valid, this reluctance may limit India’s ability to shape global governance structures.
The Global Reset & Emerging Opportunities
- Geopolitical Fragmentation – Unilateralism & protectionism rising.
- China’s Expanding Influence – Increasing trade deficit & security threats to India.
- Other Emerging Powers (Turkey, Saudi, Qatar) – Gaining diplomatic clout in global conflicts.
India’s Challenge:
- Risk of ceding geopolitical space to rivals if it remains passive.
- Balancing economic growth with a proactive global role is essential.
Required Strategic Shift & Policy Adjustments
A. Strengthening Multilateral & Regional Engagements
- UNSC & Multipolarity – India must reinforce its claim for permanent membership by actively influencing global decisions.
- Revival of Regional Focus:
- West Asia – Moving beyond economic ties to geopolitical engagement.
- Central Asia – Strengthen role in SCO (Shanghai Cooperation Organisation).
- East Asia – Reconsider engagement after RCEP exit.
- Europe – With EU under pressure, deeper strategic alignment is needed.
Implication:
- A shift from bilateral relations focus to regional strategies is necessary.
B. Proactive Geopolitical Role without Mediation Risks
- UN Security Council Precedent (1951-52) – India played a non-mediatory but critical role in the Korean War.
- Afghanistan Example (Troika Plus Talks) – India was sidelined, showing the need for a stronger presence.
- India’s Role in Ukraine War – Can leverage credibility to engage both Russia & Ukraine.
Implication:
- India must position itself as a global player, not just a neutral observer.
C. Internal Reforms to Enhance Global Competitiveness
- Economic Strengthening:
- Deepen bilateral trade agreements (especially with the U.S.).
- Increase manufacturing & tech exports to reduce dependence on China.
- Defense & Strategic Capabilities:
- Expand defense partnerships under Quad & beyond.
- Strengthen maritime presence in the Indo-Pacific.
Implication:
- Geopolitical influence is linked to economic & military strength.
Conclusion: A Window of Opportunity
- India must balance economic development with global strategic assertion.
- A larger geopolitical vision will help India emerge as a key pole in a fragmented world order.
- 2024-25 could be a defining period if India takes proactive steps in global governance.
Historical Context
- Non-Aligned Movement (NAM) & India’s past leadership in the Global South.
- India’s interventionist role in regional conflicts (Bangladesh 1971, Maldives 1988, Sri Lanka 2009).
- India’s previous proactive stance in UN Peacekeeping & UNSC debates.
Future Considerations
- U.S.-China Relations: Potential “deal” affecting Asia’s power balance.
- India’s UNSC Aspirations: Need for more active geopolitical participation.
- Global Trade Realignment: Protectionism & regional trade blocs affecting India’s export-driven growth.
