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DAILY CURRENT AFFAIRS, 17 APRIL 2026

FOREIGN DIRECT INVESTMENT (FDI)

 
 
1. Context
 
Initiatives to secure infusion of foreign direct investment (FDI) and from the banking sector to finance nuclear power projects are in the pipeline and headed for inter-ministerial consultation, informed Seema Jain, Member of Finance at the Department of Atomic Energy (DAE)
 
2. FDI in India
  • India's net foreign direct investment (FDI) inflows experienced a decline, decreasing by nearly 31% to $25.5 billion during the first 10 months of the 2023-24 fiscal year. The Finance Ministry attributed this decline to a broader trend of slowing investments in developing countries, while expressing optimism for a potential increase in investments in the current calendar year.
  • Although global FDI flows overall saw a 3% rise to approximately $1.4 trillion in 2023, economic uncertainty and elevated interest rates impacted global investment, resulting in a 9% decrease in FDI flows to developing nations, as outlined in the Ministry's February assessment of economic performance.
  • Reflecting the global trend of reduced FDI flows to developing countries, gross FDI inflows to India also experienced a slight decline, from $61.7 billion to $59.5 billion during the period from April 2023 to January 2024. In terms of net inflows, the corresponding figures were $25.5 billion versus $36.8 billion. The decrease in net inflows was primarily attributed to an increase in repatriation, while the decline in gross inflows was minimal.
  • While a modest uptick in global FDI flows is anticipated for the current calendar year, attributed to a decrease in inflation and borrowing costs in major markets that could stabilize financing conditions for international investment, significant risks persist, according to the Ministry. These risks include geopolitical tensions, elevated debt levels in numerous countries, and concerns regarding further fragmentation of the global economy
 
3. Foreign Direct Investment (FDI)
Foreign Direct Investment (FDI) refers to the investment made by individuals, businesses, or governments from one country (the home country) into another country (the host country) with the objective of establishing a lasting interest or significant degree of influence in the foreign business or enterprise
Key Aspects:
  • FDI involves the transfer of funds and resources from one country to another. This capital inflow can help stimulate economic growth in the host country by providing funds for investment in infrastructure, technology, and other areas.
  • FDI often leads to the creation of jobs in the host country. When foreign companies establish subsidiaries or invest in existing businesses, they typically hire local employees, which can help reduce unemployment and improve living standards
  • Foreign investors often bring advanced technologies, processes, and management practices to the host country. This technology transfer can enhance the host country's productivity, competitiveness, and industrial capabilities
  • FDI can provide access to new markets for both the host country and the investing company. Foreign investors can tap into the host country's consumer base, while the host country gains access to the investing company's global distribution networks.
  • FDI can contribute to overall economic development in the host country by promoting industrialization, improving infrastructure, and fostering innovation and entrepreneurship.
4.FDI Routes in India
India has several routes through which Foreign Direct Investment (FDI) can enter the country. These routes are regulated by the Reserve Bank of India (RBI) and the Department for Promotion of Industry and Internal Trade (DPIIT), and they define the conditions, limits, and sectors in which FDI is allowed

  1. Automatic Route: Under the automatic route, FDI is allowed without the need for prior approval from the RBI or the government. Investors only need to notify the RBI within a specified time frame after the investment is made. This route is available for most sectors, except those that are prohibited or require government approval.

  2. Government Route: In sectors or activities that are not covered under the automatic route, FDI requires government approval. Investors must apply for approval through the Foreign Investment Facilitation Portal (FIFP) or the Foreign Investment Promotion Board (FIPB), depending on the sector.

4.1. Examples
  • Under the automatic route, FDI of up to 100% is allowed for manufacturing of automobiles and components.
  • For the manufacturing of electric vehicles (EVs), 100% FDI is allowed under the automatic route.
  • In single-brand retail trading, 100% FDI is allowed, with up to 49% allowed under the automatic route. Beyond 49%, government approval is required.
  • Multi-brand retail trading (supermarkets and department stores) with FDI is permitted in some states, subject to certain conditions and restrictions. The FDI limit is typically capped at 51%.
  • FDI in the insurance sector is allowed up to 74%, with up to 49% under the automatic route. Beyond 49%, government approval is needed
  • In the telecom sector, 100% FDI is allowed, with up to 49% under the automatic route. Beyond 49%, government approval is required
  • In the defense sector, FDI up to 74% is allowed under the automatic route, with government approval required for investments beyond 49%
  • In most segments of the media and broadcasting sector, including print and digital media, 100% FDI is allowed, with up to 49% under the automatic route
4.2.Sectors where FDI Prohibited
  • FDI is prohibited in the atomic energy sector, which includes activities related to the production of atomic energy and nuclear power generation.
  • FDI is generally prohibited in the gambling and betting industry, which includes casinos and online betting platforms
  • FDI is not allowed in the lottery business, except for state-run lotteries
  • FDI is prohibited in chit funds, which are traditional Indian savings and credit schemes.
  •  Nidhi companies are non-banking finance companies (NBFCs) that facilitate mutual benefit funds. FDI is typically not permitted in these entities
  • While FDI is allowed in single-brand retail trading, it is generally prohibited in multi-brand retail trading of agricultural products. Some states have allowed it under specific conditions, but this remains a highly regulated area.
  • FDI is not allowed in the trading of transferable development rights (TDRs) pertaining to the construction of real estate
5. Foreign Portfolio Investors (FPIs)
Foreign Portfolio Investors (FPIs) refer to foreign individuals, institutions, or funds that invest in financial assets in a country, such as stocks, bonds, mutual funds, and other securities. FPIs are distinct from Foreign Direct Investors (FDIs), who typically make long-term investments in companies and assets to establish a lasting interest
Key Aspects:
  • FPIs invest in a country's financial markets, primarily by buying and selling securities traded on stock exchanges and fixed-income instruments like bonds and government securities
  • FPIs often seek to diversify their investment portfolios by spreading their investments across different asset classes, sectors, and countries. This diversification helps manage risk and enhance returns
  • FPIs have the flexibility to buy and sell securities in the secondary market, providing liquidity to the market and contributing to price discovery
  • FPIs typically have a shorter investment horizon compared to Foreign Direct Investors (FDIs). They may engage in short-term trading or hold securities for a few months to a few years.
  • FPIs are subject to regulatory frameworks and restrictions in the countries where they invest. These regulations are designed to ensure that foreign investments do not pose undue risks to the local financial markets and economy.
6.Foreign Portfolio vs. Foreign Direct Investment
 
FPI (Foreign Portfolio Investment) FDI (Foreign Direct Investment)
FPI involves the purchase of financial assets such as stocks, bonds, mutual funds, and other securities in a foreign country. These investments are typically made with the intention of earning returns on capital and do not result in significant control or ownership of the underlying businesses FDI entails making an investment in a foreign country with the primary objective of establishing a lasting interest and significant control or influence over a business enterprise or physical assets. FDI often involves the acquisition of a substantial ownership stake (typically at least 10%) in a company or the establishment of new business operations.
FPI is generally characterized by a shorter investment horizon. Investors in FPI may engage in trading and portfolio rebalancing activities, and their investments are often more liquid. The focus is on earning capital gains and income from investments. FDI is characterized by a longer-term commitment. Investors in FDI intend to engage in the day-to-day management or decision-making of the business, contribute to its growth and development, and generate profits over an extended period.
FPI investors typically have little to no influence or control over the companies in which they invest. They are passive investors who participate in the financial markets and rely on market dynamics to drive returns. FDI investors actively participate in the management and decision-making of the businesses they invest in. They often seek to exercise control over company operations and strategy, which may include appointing board members or key executives.
FPI investments are often made through financial instruments like stocks, bonds, and securities. Investors may use instruments like mutual funds or exchange-traded funds (ETFs) to gain exposure to foreign markets FDI investments involve a direct equity stake in a company, either through share acquisition or the establishment of a subsidiary or branch in the host country. FDI can also involve the purchase of real assets such as land, factories, or infrastructure
FPI can provide short-term capital inflows, but it may be more susceptible to market volatility and sudden capital outflows. It may not have as direct an impact on job creation and economic development as FDI. FDI often contributes to long-term economic development by creating jobs, stimulating infrastructure development, transferring technology and expertise, and enhancing the competitiveness of local industries
FPI investments are subject to regulations that vary by country and may include foreign ownership limits, reporting requirements, and tax considerations. FDI is subject to regulations that can be more stringent and may involve government approval, sector-specific conditions, and investment protection measures
 
 
 
 
For Prelims: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
 
 
Previous Year Questions
 
1. Both Foreign Direct Investments (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. (UPSC CSE 2011)
 
Which one of the following statements best represents an important difference between the two?
A.FII helps bring better management skills and technology, while FDI only brings in capital
B.FII helps in increasing capital availability in general, while FDI only targets specific sectors C.FDI flows only into the secondary markets, while FII targets primary market
D.FII is considered to the more stable than FDI
 
Answer (B)
 
Source: indianexpress
 
 

BRICS

 

1. Context

 Amid the shaky ceasefire between Iran and the US and negotiations in Islamabad to reach a deal to end the war entered a deadlock, India is likely to host the BRICS Foreign Ministers’ meeting on May 14-15, sources said on Wednesday, which is expected to be attended by Chinese Foreign Minister Wang Yi and Russian Foreign Minister Sergey Lavrov.

2. BRICS

  • The BRICS alliance, composed of Brazil, Russia, India, China, and South Africa, has evolved from an economic consortium to a multifaceted geopolitical force.
  • Emerging economies with considerable potential, these countries together form a collective that challenges traditional power dynamics and fosters cooperation in an increasingly interconnected world.

Formation and Evolution

  • BRICS was officially established in 2006, with the objective of fostering economic growth, development, and cooperation among member nations.
  • Over time, it has transformed into a platform for addressing a broader spectrum of global challenges, encompassing political, security, and social concerns alongside economic issues.
3.Push back against liberal international order 
 
  • A core principle in international relations is the absence of a central global authority. While nations may come to agreements on certain rules, there’s no global body with the power to universally enforce them. Scholars often refer to this as an “anarchic system”—not because it's chaotic, but because there is no supreme governing structure overseeing international conduct.
  • States primarily pursue their national interests. Although collaboration between countries is possible, it tends to be unstable. Power dynamics are crucial—stronger nations usually assert their will, while weaker ones often have limited choices, echoing themes from the Melian Dialogue in Thucydides’ History of the Peloponnesian War. Global power is unevenly shared, and those who hold more influence often shape international norms to benefit themselves.
  • Following World War II, the Western powers—led by the United States—established the liberal international order. This system, built through institutions like the IMF, World Bank, and WTO, mirrored Western ideals such as market liberalism, democratic governance, and the central role of the US dollar in global finance.
  • This framework functioned effectively for the Western world for decades. However, in the current century, many countries are beginning to question the relevance of a system rooted in the post-1945 era.
  • While rising nations like China, India, Brazil, and South Africa once accepted this order, they are now challenging it due to shifting economic power and the emergence of a multipolar world. The BRICS group has become the most prominent symbol of this growing resistance
4. De-dollarisation and global power shift 
 
  • One of the strongest themes to emerge from the BRICS summit in Brazil was the push toward de-dollarisation. While the term may sound technical, its implications are heavily political.
  • This concept has been gaining momentum over the years, but recent developments—particularly the use of financial systems as tools for sanctions—have made it more urgent. Currently, global trade and finance rely heavily on the US dollar.
  • For example, India typically pays in dollars when importing oil from Russia, Brazil often borrows in dollars, and China's overseas investments usually pass through dollar-based networks like SWIFT. This entrenched dependence grants the US both economic power and political influence.
  • During the Brazil summit, BRICS nations revisited the proposal of creating a common currency—not as an immediate goal, but as a statement of direction. In the short term, they are encouraging trade using their own national currencies.
  • Russia and China now conduct the majority of their bilateral trade in roubles and yuan. India has started settling some payments with countries like Iran and Sri Lanka in rupees, and has begun conducting oil transactions with the UAE in rupees and dirhams.
  • The New Development Bank, established by BRICS, is also moving toward issuing loans in local currencies to minimize reliance on the dollar. This shift is not just about cutting transaction fees—it's about gaining independence from a financial system that many nations in the Global South feel is skewed against their interests.
  • The path toward de-dollarisation will be challenging. The US dollar continues to dominate global finance due to its stability, global trust, and the strength of America’s financial infrastructure.
  • However, the repeated calls by BRICS for alternatives reflect a growing dissatisfaction. While this transition won’t happen quickly, the direction is clear: reduce dependency on a system largely controlled by Washington
5. South-South Cooperation
 
  • BRICS positions itself as a collective voice for nations that were excluded from shaping the global order established after World War II. It portrays itself as an advocate for the Global South, promoting equitable development, more inclusive trade frameworks, and the restructuring of major international institutions.
  • Unlike the IMF or World Bank, the New Development Bank (NDB) provides financing without the usual political conditions. BRICS members are also collaborating on joint ventures in sectors like infrastructure and renewable energy.
  • There have also been discussions about setting up a BRICS-led credit rating agency to reduce reliance on dominant Western agencies. The group consistently calls for changes to institutions such as the UN Security Council and the World Bank, aiming to amplify the influence of emerging economies.
  • Within BRICS, countries like Brazil, India, and South Africa act as intermediaries. As democratic nations with expanding economies, they are often seen as relatable leaders among developing states.
  • China contributes significant financial resources and geopolitical clout, while Russia, increasingly distanced from Western alliances, is seeking closer ties with non-Western countries.
  • This drive to create new systems and mechanisms stems from a common dissatisfaction with a global order that many feel does not account for the realities and needs of the developing world. BRICS is not only advocating for policy reforms but also striving to reshape global perceptions of development and leadership

6. Geopolitical Relevance

  • Counterbalance to Western Influence: BRICS serves as a counterweight to the dominance of Western powers. The coalition's diverse representation from different regions empowers non-Western countries to assert their interests on the global stage.
  • Global South Unity: BRICS resonates with many countries in the Global South that seek a voice in international affairs. It presents an alternative to the traditional Western-dominated institutions, offering a platform for collaboration and advocacy.

7. Economic Cooperation and Growth

  • Economic Powerhouses: Collectively, BRICS nations account for a substantial portion of the world's population and GDP. Their economic potential has led to discussions on reforming global financial institutions to better reflect contemporary realities.
  • Intra-BRICS Trade: Trade among BRICS members has grown significantly. Initiatives like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) bolster financial cooperation and stability within the group.

8. Geopolitical Challenges and Opportunities

  • Diverse Interests: As BRICS expands and diversifies, differing geopolitical interests may arise, potentially leading to internal divisions. However, this diversity also presents opportunities for creative solutions to global challenges.
  • Diplomatic Outreach: BRICS engages with other regional and international organizations, strengthening its influence. The expansion of the group's membership underscores its growing geopolitical relevance.

9. India's Role and Beyond

  • India's Diplomacy: India has played an active role within BRICS, emphasizing issues such as counter-terrorism, cybersecurity, and climate change. Its strategic partnerships contribute to the coalition's expansion and its influence in shaping its direction.
  • Global Impact: BRICS expansion into a broader coalition incorporating West Asian countries like Egypt, Iran, Saudi Arabia, and the UAE signifies a deliberate shift towards greater global political relevance. This expansion highlights BRICS' adaptability to changing geopolitical dynamics.

10. BRICS New Members Dynamics

  • Unanimous Decisions: BRICS decisions require unanimous agreement, reflecting collective decision-making.
  • Geopolitical Partnerships: While Russia and China confront West-related challenges, Brazil, South Africa, and India maintain significant partnerships with the US and Europe.
  • China's Expansion Drive: China spearheads BRICS expansion, prioritizing membership growth.
  • Inclusion of Iran: China and Russia's influence is seen in Iran's inclusion, showcasing their collaboration.
  • Mediation Efforts: China's role reconciles rivals Saudi Arabia and Iran within the alliance.
  • Saudi Arabia's Shift: Saudi Arabia's entry signifies a move towards an independent foreign policy, diverging from the US alliance.
  • Global Significance for Russia and Iran: BRICS membership elevates Russia and Iran's global partnerships, challenging Western dominance.

11. Implications for India

  • Strategic Role: India played a lead role in drafting BRICS membership criteria, demonstrating its strategic influence within the alliance.
  • Expanded Influence: The inclusion of new members who are strategic partners of India enhances its influence within BRICS.
  • Geopolitical Balancing: BRICS expansion allows India to navigate between its ties with the West and its position within this non-Western coalition.
  • Global Advocacy: With more representation and diverse members, India can push for UN reforms and increased Global South representation.
  • Diplomatic Challenges: India might need to exert more effort to assert its influence in an alliance with a wider range of members and potential competing interests.
  • Economic Opportunities: Collaboration with economically strong members like China can lead to enhanced trade and investment prospects for India.
For Prelims: BRICS, Global South Unity, Western Influence, New Development Bank (NDB), and Contingent Reserve Arrangement (CRA).
For Mains: 1. Discuss the Implications of BRICS' Expansion for India's Geopolitical Positioning and Influence within the Alliance.
2. Analyze India's Role in Shaping BRICS' Membership Criteria and Its Strategic Significance in the Expanded Coalition.
 

Previous year Questions

1. With reference to a grouping of countries known as BRICS, consider the following statements: (UPSC 2014)
1. The First Summit of BRICS was held in Rio de Janeiro in 2009.
2. South Africa was the last to join the BRICS grouping.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B
 
2. With reference to BRIC countries, consider the following statements: (UPSC 2010)
1. At present, China's GDP is more than the combined GDP of all three other countries.
2. China's population is more than the combined population of any two other countries.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: A
 
3. The 'Fortaleza Declaration', recently in the news, is related to the affairs of  (UPSC 2015)
A. ASEAN
B. BRICS
C. OECD
D. WTO
Answer: B
Source: The Hindu
 
 

GIG ECONOMY

 
 
1. Context
 
Strengthening enforcement mechanisms is the most critical priority. A persistent challenge in India’s labour market is the weak enforcement of regulations, especially in the informal sector.
 
2. What is the gig economy?
 
  • The gig economy refers to a labor market characterized by short-term contracts or freelance work, as opposed to permanent jobs.
  • It includes a wide range of activities, from ride-sharing and food delivery to freelance writing and graphic design.
  • Workers in the gig economy are typically independent contractors who perform specific tasks or projects, often mediated through digital platforms.
  • This economy offers flexibility and autonomy for workers but also presents challenges such as lack of job security, benefits, and consistent income
 
3.What is the difference between the formal and informal labour markets?
 
Subject Formal Labor Market Informal Labor Market
Regulation Regulated by government laws and policies Not regulated by formal labor laws
Job Security Generally offers job security Often lacks job security
Benefits Provides benefits like health insurance and retirement plans Rarely provides benefits
Legal Protections Employees have legal protections and must adhere to standards Workers lack legal protections
Income Regular and predictable income Irregular and uncertain income
Employment Contracts Jobs usually involve formal contracts Work is often done without formal contracts
Examples Corporate jobs, government positions Freelance work, informal vendors, day labourers
 
 
4. What is the current state of the labour market in India?
 
  • Maintaining the impressive growth rates of recent years into the medium to long term, while expanding the consumption base, will be difficult given that a significant portion of the country's workforce remains stuck in low-productivity jobs.
  • Recent government surveys indicate that the number of informal businesses in the country has increased from 57.6 million in 2010-11 to 63.4 million in 2015-16, and further to 65 million in 2022-23
  • If the economy were generating more productive employment opportunities, both the number of informal firms and the workforce within them would be significantly decreasing.
  • Combining the 110 million workers in non-farm informal businesses with the approximately 230 million engaged in agriculture accounts for almost two-thirds of the labor force still employed in low-productivity jobs in less efficient sectors—sectors that now contribute an even smaller share of the total economic value added than before.
  • This is in addition to those informally employed in construction and the formal parts of the economy.
  • In the absence of low or semi-skilled job opportunities in the more productive formal manufacturing sector, and without the necessary education to enter more skilled formal employment in both manufacturing and high-end services, their only alternatives are precarious forms of employment in the gig economy.”
  • The issue of job scarcity has long been a part of India's development narrative, not limited to the current administration.
  • However, recent changes include the youth bulge, increasing labor force participation rate—particularly among women driven into the workforce by financial distress—the declining share of value added by the informal sector, and the growing capital intensity in production sectors that contribute more to value addition and are labor-intensive by nature
  • The consequences of failing to create a sufficient number of more productive jobs, and the resulting deepening labor market duality, are likely to be manifested in various ways, including reduced social mobility and high-income inequality.
  • As others have noted, this will determine whether the country follows the path of East Asia or takes the route of Latin America
5. What are the causes of the rising gig economy in India?
 
  • The proliferation of smartphones and the internet has facilitated the growth of digital platforms that connect gig workers with customers. Apps and websites have made it easier to find and offer short-term jobs
  • India has a large youth population that is tech-savvy and open to flexible work arrangements. The gig economy offers opportunities that appeal to the younger generation seeking autonomy and varied work experiences
  • The formal sector has not been able to generate enough jobs to match the growing labor force. As a result, many individuals turn to gig work for income, as it often requires lower barriers to entry compared to traditional employment
  •  Financial distress and the need for supplementary income have pushed more people towards gig work. This includes individuals who may already have a job but need additional income to meet their financial needs
  • The gig economy offers flexibility in work hours and the choice of assignments, which attracts individuals who prefer non-traditional work arrangements over the constraints of full-time employment.
  • Companies are increasingly outsourcing tasks to freelancers to reduce costs associated with full-time employees, such as benefits and office space. This shift towards a more flexible workforce model has contributed to the growth of gig work
  • The ability to work remotely has opened up international opportunities for gig workers. Indian freelancers can now find work with companies around the world, broadening their employment prospects
  • The regulatory framework in India is still catching up with the gig economy, providing a more lenient environment for gig platforms and workers compared to the heavily regulated formal sector
  • The gig economy allows workers to leverage diverse skill sets and explore multiple career paths simultaneously. This appeals to individuals looking to diversify their professional experience
  • There is growing consumer demand for services that gig workers provide, such as food delivery, ride-hailing, home services, and freelance professional services. This demand fuels the expansion of gig opportunities
6.What are the advantages and disadvantages of the gig economy?
 
Advantages Disadvantages
Workers can choose their own hours and work location Gig workers often face uncertain income and job stability.
Diverse Opportunities No Employment Benefits
Access to a variety of job types and industries Absence of benefits like health insurance, retirement plans, and paid leave
Increased Income Potential Income Variability
Potential to earn more by taking multiple gigs or high-paying tasks Earnings can be unpredictable and inconsistent.
Opportunity to develop and diversify skill sets. Many gig workers are not protected by labor laws and regulations
Easier entry into the workforce without extensive qualifications. Limited opportunities for career advancement and long-term growth
Greater control over the type of work undertaken and methods of working Flexibility can lead to overworking and blurred boundaries between work and personal life
Ability to work for international clients and companies Gig workers may miss out on the social aspects and support networks found in traditional workplaces
Companies can save on costs related to full-time employees (benefits, office space, etc.). Potential for gig workers to be underpaid and overworked without proper oversight
Can quickly adapt to changing market demands and consumer needs Limited access to training and professional development resources
 
7. What are the challenges associated with the gig economy?
  • Gig workers often face unpredictable and inconsistent income, making financial planning difficult
  • Gig workers typically do not receive traditional employment benefits such as health insurance, retirement plans, paid leave, and unemployment benefits
  • The temporary and project-based nature of gig work means that workers lack job security and can be easily terminated
  • There is often a lack of clear legal frameworks to protect gig workers, leading to issues with worker rights, minimum wage enforcement, and job classifications.
  • The flexibility of gig work can lead to overworking and difficulty in maintaining a work-life balance, as the lines between personal and professional time can become blurred.
  • Gig workers can be vulnerable to exploitation, including low pay, long hours, and lack of proper working conditions, without sufficient oversight and protection
  • Gig workers may miss out on the social interactions and support networks that come with traditional workplaces, leading to feelings of isolation and lack of community
  • There are limited opportunities for career advancement, professional development, and skill enhancement in the gig economy
  • Gig workers often lack access to training and development programs that can help them improve their skills and advance their careers
  • Gig workers are usually responsible for managing their own taxes, which can be complex and burdensome without proper knowledge and resources
  • Reliance on digital platforms and technology can pose challenges, including the need for constant internet access and the risk of being affected by platform changes or technical issues
  • Without formal workplace regulations, gig workers may face unsafe working conditions and lack proper health and safety protections
 
 
For Prelims: Gig Economy
For Mains: GS III- Gig Economy and Associated Problems around
 
 
Source: Indianexpress
 
 

MONSOON IN INDIA

 
 
 
1. Context
 
After seven consecutive years of fairly good rainfall in the monsoon season, India seems to be finally running out of luck. This year’s monsoon is expected to be relatively dry, according to the forecast by the India Meteorological Department (IMD). 
 
2. What is a Monsoon?
 
A monsoon is a seasonal weather pattern characterized by changes in the direction of prevailing winds, which typically result in distinct wet and dry seasons. Monsoons are caused by the differential heating of land and sea, which creates pressure gradients that drive large-scale wind systems.
Key features of a monsoon include:
  • Monsoons involve a significant shift in wind direction between seasons. During the wet season, winds blow from the ocean towards the land, bringing moist air and heavy rainfall. During the dry season, winds reverse direction, blowing from the land to the ocean, resulting in dry conditions
  • The wet season is marked by heavy and sustained rainfall, often leading to flooding and lush vegetation growth. The dry season, in contrast, has little to no rainfall, leading to drought conditions in some regions
  • Monsoons are most commonly associated with South Asia, particularly the Indian subcontinent. Other regions that experience monsoon patterns include Southeast Asia, parts of Africa, Australia, and the southwestern United States
  • Monsoons play a crucial role in the climate and agriculture of affected regions. They provide essential water for crops and replenish groundwater supplies. However, they can also cause destructive flooding and landslides
3. Indian Monsoon
 
  • The Indian monsoon is a significant and complex weather phenomenon that has a profound impact on the climate, agriculture, and economy of the Indian subcontinent one of the most well-known and studied monsoon systems is the Indian monsoon, which significantly affects the climate and economy of India and its neighbouring countries.
  • Southwest Monsoon: Occurs from June to September. Winds blow from the southwest, bringing moisture-laden air from the Indian Ocean, resulting in heavy rainfall over the Indian subcontinent.
  • Northeast Monsoon: Occurs from October to December. Winds blow from the northeast, bringing drier air, although the southeastern coast of India and Sri Lanka receive some rainfall during this period.
4. Monsoon basics and dates
 
  • The Southwest Monsoon from June to September delivers over 70% of India's annual rainfall. Typically, the monsoon reaches the Andaman Sea in the third week of May and moves onto the mainland through Kerala, with June 1 being the usual start date.
  • Its progression is characterised by surges, advancing rapidly to central India before slowing down.
  • By the end of June, it generally reaches north Uttar Pradesh, Delhi, and surrounding areas, covering the entire country by July 15. An early or timely onset does not ensure consistent or adequate rainfall throughout the season, nor does a delayed onset necessarily lead to below-average rainfall.
  • The total rainfall from June to September is influenced by various factors and exhibits natural year-to-year variability, making each monsoon season unique. The distribution of rainfall is as important as the total amount.
  • The India Meteorological Department (IMD) predicts 'above normal' rainfall for this season, estimated to be 106% of the Long Period Average of 880 mm (based on 1971-2020 data).
  • This forecast of increased rainfall is largely due to the expected development of La Niña conditions, which typically enhance the Indian monsoon, and a positive phase of the Indian Ocean Dipole (IOD)
 
5.Branches of Indian Monsoon

The Indian Monsoon is broadly divided into two main branches, each with distinct characteristics and regions of influence: the Arabian Sea Branch and the Bay of Bengal Branch.

Arabian Sea Branch

Characteristics:

  • Source: Originates from the southwestern part of the Arabian Sea.
  • Path: Moves towards the western coast of India.
  • Onset: Typically hits the Kerala coast around June 1st, marking the official start of the Southwest Monsoon.

Key Features:

  • Western Ghats: The moist air from the Arabian Sea rises when it encounters the Western Ghats, causing heavy rainfall on the windward side.
  • Progression: Advances northwards along the western coast, bringing significant rainfall to regions such as Goa, Karnataka, Maharashtra, and Gujarat.
  • Reach: Extends into central and northwestern India, contributing to the monsoon rains in these areas.

Bay of Bengal Branch

Characteristics:

  • Source: Originates from the southeastern part of the Bay of Bengal.
  • Path: Moves towards the eastern coast of India and then travels northwestwards.

Key Features:

  • Northeastern India: Initially brings heavy rainfall to northeastern states such as Assam, Meghalaya, and West Bengal as it hits the Eastern Himalayas.
  • Progression: Moves across the Indo-Gangetic Plain, covering Bihar, Uttar Pradesh, and eventually reaching northern India including Delhi.
  • Distribution: Influences the monsoon patterns in central and northern India, often merging with the Arabian Sea branch to provide widespread rainfall.
 
6.Factors affecting Indian Monsoon

Coriolis Force

The Coriolis Force is an apparent force resulting from the Earth's rotation. It influences the rotational movement seen in tropical cyclones, causing monsoon winds to deflect eastward and blow from the southwest to the northeast. Since the Earth's rotation is constant, the Coriolis Force experienced by air at a specific latitude and velocity remains steady.

Mascarene High

The Mascarene High is a significant high-pressure zone that drives the southwest monsoon winds toward the Indian subcontinent. Forming by mid-April, the strength of this high-pressure area is crucial in determining the intensity of the Indian monsoon. A stronger high leads to stronger winds and a more robust monsoon. A delayed formation of the Mascarene High can result in a delayed onset of the monsoon in India.

Indian Summer

High-pressure winds move towards low-pressure areas. The Himalayas play a key role in summer heating by blocking cold northern air, allowing for warmer conditions. During summer, India becomes extremely hot, and surrounding ocean temperatures rise. This creates a pressure gradient between the cooler sea air and the warmer land air, particularly over Rajasthan. Consequently, monsoon winds are drawn towards the low-pressure area over India.

Indian Ocean Dipole

In 1999, N.H. Saji and colleagues from Japan’s University of Aizu identified the Indian Ocean Dipole (IOD), an ENSO-like phenomenon in the Indian Ocean. The IOD has three phases: positive, negative, and neutral. During the positive IOD phase, sea surface temperatures in the western Indian Ocean are warmer than in the eastern part. Conversely, during the negative phase, the eastern Indian Ocean is warmer. No significant gradient exists during the neutral phase. Positive IOD phases are associated with significantly higher Indian summer monsoon rainfall compared to negative IOD phases.

El Niño

El Niño refers to the occasional appearance of a warm ocean current off the coast of Peru, temporarily replacing the cold Peruvian current. Named after the infant Christ ("El Niño" means "the child" in Spanish) because it occurs around Christmas, El Niño leads to increased sea-surface temperatures and reduced trade winds in the region.

El Niño Southern Oscillation (ENSO)

The El Niño Southern Oscillation (ENSO) describes the cyclic variations in sea surface temperatures around the equatorial Pacific Ocean. ENSO's unpredictable nature has long challenged forecasters. It affects global weather patterns, especially in countries bordering the Pacific Ocean, by influencing air circulation.

Intertropical Convergence Zone (ITCZ)

The ITCZ is a broad low-pressure area found in equatorial latitudes where the northeast and southeast trade winds converge. This zone shifts north and south following the sun’s apparent movement. The position and strength of the ITCZ significantly affect the Indian Monsoon.

Tropical Easterly Jet (TEJ)

The TEJ plays a crucial role in initiating the southwest monsoon. This jet stream flows over the Indian Ocean near Madagascar, intensifying the high-pressure cell and triggering the southwest monsoon. Persistent high summer temperatures over Tibet help develop the easterly jet, leading to heavy rainfall in India. Conversely, if the Tibetan Plateau retains its snow cover, the easterly jet does not form, resulting in reduced monsoon rainfall in India. Thus, years with extensive snow in Tibet are typically followed by weaker monsoons and less rainfall

 

 

 

For Prelims: Southwest monsoon El Nino, Coriolis Force

For Mains: GS I- Monssons and their effects on Indian Agriculture

 

Source: Indianexpress

 

 

MICRO SMALL MEDIUM ENTERPRISES (MSME)

 
 
 
1. Context.
 
The Ministry of Micro, Small, and Medium Enterprises (MSME) has signed a Memorandum of Understanding (MoU) with NICDC Logistics Data Services Limited (NLDS), a digital and data arm of the National Industrial Corridor Development Corporation (NICDC), to enhance logistics efficiency and promote data-driven policymaking for the MSME sector.
 
2. Definition of 'MSME'
Micro, Small, and Medium Enterprises (MSMEs) are businesses that are characterized by their relatively small size in terms of employees, assets, and revenue. These enterprises play a crucial role in economies around the world, contributing to employment generation, economic growth, and innovation. The definitions of MSMEs can vary from country to country, but there are general guidelines provided by international organizations like the World Bank and the United Nations.

The definition of MSME varies from country to country. In India, an MSME is defined as a business with:

  • Micro enterprise: Up to 10 employees and an investment of up to INR 1 crore (approximately USD 130,000)
  • Small enterprise: Up to 50 employees and an investment of up to INR 10 crore (approximately USD 1.3 million)
  • Medium enterprise: Up to 200 employees and an investment of up to INR 50 crore (approximately USD 6.5 million)
3. Importance of MSME's

The importance of MSMEs in an economy includes:

  • Employment Generation: MSMEs are significant contributors to employment, especially in economies with limited opportunities for large-scale industrial employment.

  • Local Economic Development: MSMEs often operate at a local level, contributing to the development of local communities and economies.

  • Innovation and Entrepreneurship: Many innovative ideas and entrepreneurial ventures start as MSMEs. They have the flexibility to adapt quickly to changing market demands and experiment with new business models.

  • Diversity and Resilience: A diverse ecosystem of MSMEs can contribute to a more resilient economy by reducing dependence on a few large corporations.

  • Contributions to GDP: The combined contributions of MSMEs to a country's Gross Domestic Product (GDP) can be significant, even if individual businesses are relatively small.

4. New Criteria for MSME's

The new criteria for the classification of micro, small and medium enterprises (MSMEs) in India was notified by the Ministry of Micro, Small and Medium Enterprises (MSME) on June 1, 2020. The new criteria are based on the investment in plant and machinery or equipment and the annual turnover of the enterprise.

The following are the new criteria for the classification of MSMEs:

  • Micro enterprise: An enterprise with:
    • Investment in plant and machinery or equipment not more than Rs.1 crore (approximately USD 130,000)
    • Annual turnover not more than Rs. 5 crore (approximately USD 650,000)
  • Small enterprise: An enterprise with:
    • Investment in plant and machinery or equipment not more than Rs.10 crore (approximately USD 1.3 million)
    • Annual turnover not more than Rs. 50 crore (approximately USD 6.5 million)
  • Medium enterprise: An enterprise with:
    • Investment in plant and machinery or equipment not more than Rs.50 crore (approximately USD 6.5 million)
    • Annual turnover not more than Rs. 250 crore (approximately USD 3.25 million)
5. Challenges faced by MSME's

Micro, small, and medium enterprises (MSMEs) play a vital role in the Indian economy, accounting for over 90% of all enterprises and employing over 40% of the workforce. However, MSMEs face a number of challenges, including:

  • Access to finance: MSMEs often find it difficult to obtain loans from banks and other financial institutions due to their lack of collateral and track record. This can make it difficult for them to expand their businesses or invest in new technologies.
  • Lack of skills: MSMEs often lack the skills and knowledge needed to compete in the global market. This can make it difficult for them to develop new products and services, or to adopt new technologies.
  • Competition from large businesses: MSMEs often face competition from large businesses, which have more resources and economies of scale. This can make it difficult for MSMEs to compete on price or quality.
  • Bureaucracy: MSMEs often face a number of bureaucratic hurdles, such as obtaining licenses and permits. This can be time-consuming and costly, and can discourage entrepreneurs from starting or expanding their businesses.
  • Infrastructure constraints: MSMEs often face infrastructure constraints, such as poor roads and electricity supply. This can make it difficult for them to transport their goods and services, or to operate their businesses efficiently.
  • Unstable government policies: MSMEs are often affected by unstable government policies, such as changes in tax rates or import duties. This can make it difficult for them to plan for the future and make investment decisions.
6. Government Schmes for MSME's
 

Here are some of the prominent schemes and programs for MSMEs by the Union Government of India:

  1. Micro Units Development and Refinance Agency (MUDRA) Yojana:

    • MUDRA Yojana aims to provide financial support to small and micro enterprises by offering loans through various financial institutions. It consists of three categories: Shishu, Kishor, and Tarun, based on the loan amount.

  2. Pradhan Mantri Mudra Yojana (PMMY):

    • PMMY is a scheme to provide financial assistance for the establishment, expansion, and modernization of MSMEs. It offers loans without collateral security up to a certain limit.

  3. Credit Linked Capital Subsidy Scheme (CLCSS):

    • CLCSS provides capital subsidy to MSMEs for technology upgradation, modernization, and replacement of their plant and machinery to improve competitiveness.

  4. Zero Defect Zero Effect (ZED) Certification Scheme:

    • ZED certification encourages MSMEs to adopt best practices and quality standards to enhance product quality while minimizing environmental impact.

  5. Make in India Initiative:

    • The Make in India campaign encourages domestic and foreign companies to manufacture products in India, fostering the growth of the manufacturing sector and MSMEs.

  6. Stand Up India Scheme:

    • This scheme aims to promote entrepreneurship among women and Scheduled Caste/Scheduled Tribe communities by providing loans for starting new enterprises.

  7. Technology Upgradation Support for MSMEs (TEQUP):

    • TEQUP focuses on supporting MSMEs in adopting modern technology and upgrading their production processes to improve quality and competitiveness.

  8. National Manufacturing Competitiveness Programme (NMCP):

    • NMCP includes various components such as Lean Manufacturing Competitiveness Scheme, Design Clinic Scheme, and more, aimed at enhancing the competitiveness of the manufacturing sector, including MSMEs.

  9. Entrepreneurial and Managerial Development of SMEs (EMD-SME):

    • EMD-SME focuses on providing training, capacity-building, and skill development to entrepreneurs and managers of MSMEs.

  10. Skill India Initiative:

    • While not exclusively for MSMEs, the Skill India program aims to provide skill training to individuals, including those in the MSME sector, to improve employability and entrepreneurship.

  11. Export Promotion Capital Goods (EPCG) Scheme:

    • The EPCG scheme allows MSMEs to import capital goods for the purpose of upgrading technology and enhancing export competitiveness with certain duty benefits.

  12. Udyog Aadhaar Registration:

    • The Udyog Aadhaar registration process simplifies the process of registering and obtaining various benefits for MSMEs, such as easier access to credit and government schemes.
7. Way forward
Addressing these challenges often requires a combination of government support, industry initiatives, access to finance, skill development programs, technology adoption, networking opportunities, and tailored solutions that take into account the unique needs of MSMEs.
 

Previous year Questions

1. Consider the following statements with reference to India: (UPSC 2023)
1. According to the 'Micro, Small and Medium Enterprises Development (MSMED) Act, 2006', the 'medium enterprises' are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.
2. All bank loans to the Micro, Small, and Medium Enterprises qualify under the priority sector.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B
 
2. Which of the following can aid in furthering the Government's objective of inclusive growth? (UPSC 2011)
1. Promoting Self-Help Groups
2. Promoting Micro, Small and Medium Enterprises
3. Implementing the Right to Education Act
Select the correct answer using the codes given below:
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: D
 Source: The Hindu
 
 

LEGISLATIVE ASSEMBLY ELECTIONS

 

 

1. Context

Election Commission of India (ECI) announced the schedule for the General Election to Legislative Assemblies of Assam, Kerala, Puducherry, Tamil Nadu and West Bengal and bye-elections on March 15,2026
 

2. Reforms and changes are proposed by Election Commission of India in the upcoming elections

The Election Commission of India (ECI) has proposed several reforms and changes for the upcoming elections, including:

  • The ECI has proposed that VVPAT machines be made mandatory for all elections. VVPAT machines generate a paper slip that displays the voter's chosen candidate, which is then dropped into a sealed box. This allows voters to verify their vote and helps to prevent fraud.
  • The ECI is also considering the use of R-EVMs in the upcoming elections. R-EVMs are EVMs that can be operated from a remote location, such as a polling booth in a remote area. This would make it easier for voters in remote areas to cast their votes.
  • The ECI has also proposed to make online voter registration easier and more accessible. This would make it easier for eligible voters to register to vote, especially young voters and voters who live abroad.
  • The ECI has also proposed measures to increase transparency in political funding. This would include requiring political parties to disclose their sources of income and expenditure.
  • The ECI has also proposed to strictly enforce the Model Code of Conduct during elections. The Model Code of Conduct is a set of guidelines that political parties and candidates must follow during elections. It is intended to ensure that elections are conducted in a fair and free manner.
  • The ECI is proposing to increase the number of polling booths in areas with a large number of voters. This would make it easier for voters to cast their votes without having to travel long distances.
  • The ECI is proposing to introduce new rules for regulating the use of social media during elections. This includes requiring political parties to disclose their social media accounts and to be transparent about the content they are sharing.

3. The election process

The election process in India is as follows:

  • The ECI announces the schedule for the elections at least six weeks before the date of polling. The schedule includes the dates for filing nominations, campaigning, and polling.
  • Political parties and candidates file their nominations with the ECI on the specified dates. Each candidate must file a nomination form and pay a deposit. The nomination form must include the candidate's name, address, and other personal information.
  • The ECI scrutinizes the nominations to ensure that they meet all the requirements. The ECI may reject a nomination if the candidate is not eligible to contest the election or if the nomination form is not properly filled out.
  • The candidates campaign for the elections from the date of notification of candidates to the 48 hours before the polling day. During this period, the candidates hold rallies, give speeches, and distribute pamphlets.
  • Voting is held on the day of the election, which is a public holiday in India. Voters must cast their votes at the polling booth in the constituency where they are registered to vote. Voters must show their voter ID card to cast their vote.
  • The votes are counted after the polls close. The counting of votes is done in the presence of representatives of the candidates and political parties. The candidate who receives the most votes in a constituency is declared the winner.
  • The ECI declares the results of the elections after the counting of votes is complete. The winning candidates are awarded certificates of election.

4. The maximum and minimum strengths of a legislative assembly

  • The maximum and minimum strength of a legislative assembly is specified in the Constitution of India.
  • The Constitution also gives the states the autonomy to decide on the number of seats reserved for women Scheduled Castes and Scheduled Tribes.
  • The maximum strength of a legislative assembly in India is 500 members and the minimum strength is 60 members. However, there are some exceptions to this rule.
  • For example, the legislative assemblies of Arunachal Pradesh, Goa, and Sikkim have a minimum strength of 30 members, and the legislative assemblies of Mizoram and Nagaland have a minimum strength of 40 and 46 members respectively.
  • The strength of a legislative assembly is determined by the population of the state. The larger the population of the state, the larger the size of the legislative assembly.

5. Determination of the legislative assembly’s strength

  • The strength of the legislative assembly is determined by the Delimitation Commission.
  • The Delimitation Commission is a quasi-judicial body that is appointed by the Government of India.
  • The Delimitation Commission is responsible for redrawing the boundaries of constituencies based on the latest census data.
  • The Delimitation Commission takes into account several factors when determining the strength of a legislative assembly, including:
  1. The population of the state
  2. The geographical features of the state
  3. The distribution of population within the state
  4. The number of Scheduled Castes and Scheduled Tribes in the state
  • The Delimitation Commission also ensures that each constituency has approximately the same number of voters.
  • This is important to ensure that all voters have equal representation in the legislative assembly.
  • Once the Delimitation Commission has determined the strength of the legislative assembly, it publishes a delimitation order.
  • The delimitation order specifies the number of constituencies in the state and the boundaries of each constituency.
  • The strength of a legislative assembly is an important factor in determining the level of representation that voters have.
  • A larger legislative assembly means that there are more representatives to represent the interests of the people.

6. Reasons for no uniformity in the organisation of state legislatures

  • There is no uniformity in the organization of state legislatures in India because the Constitution of India gives the states a lot of autonomy in this matter.
  • The Constitution only specifies the minimum and maximum strength of state legislatures.
  • The states are free to decide on the number of seats reserved for women, Scheduled Castes and Scheduled Tribes.
  • The Constitution also gives the states the option to have a unicameral or bicameral legislature. A unicameral legislature has only one house, while a bicameral legislature has two houses.

Currently, six states in India have a bicameral legislature:

  1. Andhra Pradesh
  2. Bihar
  3. Telangana
  4. Karnataka
  5. Maharashtra
  6. Uttar Pradesh

The other states and union territories in India have a unicameral legislature.

The following are some of the reasons why there is no uniformity in the organization of state legislatures:

  • Some states have a bicameral system because they have a long history of bicameralism. For example, the states of Uttar Pradesh and Bihar had bicameral legislatures before independence.
  • India is a linguistically and culturally diverse country. The states have different languages, cultures, and traditions. This diversity is reflected in the organization of state legislatures. For example, the state of Tamil Nadu has a unicameral legislature because it has a strong tradition of unitary government.
  • Political parties often play a role in determining the organization of state legislatures. For example, the state of Telangana has a bicameral legislature because the ruling party wanted to create a separate upper house to represent the interests of different groups in the state.
  • The states have different administrative requirements. This may necessitate different types of state legislatures.

The following are some of the advantages and disadvantages of having a bicameral legislature:

Advantages:

  • A bicameral legislature can provide better representation for different groups in the state.
  • A bicameral legislature can act as a check on the power of the lower house.
  • A bicameral legislature can provide a forum for more in-depth deliberation on legislation.

Disadvantages:

  • A bicameral legislature can be more expensive to run than a unicameral legislature.
  • A bicameral legislature can be more difficult to manage than a unicameral legislature.
  • A bicameral legislature can lead to a deadlock between the two houses.

7. Model Code of Conduct

After the Election Commission announces the schedule for the polls, various activities related to the election process, including nomination filing, campaigning, polling, and counting, are carried out as per the prescribed timeline. The Model Code of Conduct comes into effect, and the election machinery is put into motion to ensure a free and fair electoral process.

7.1. Duration of Model Code of Conduct

  • The Model Code of Conduct (MCC) is a set of guidelines that political parties and candidates must follow during elections in India.
  • It is intended to ensure that elections are conducted in a fair and free manner.
  • The MCC was first introduced in 1971 and has been updated several times since then.
  • The Model Code of Conduct (MCC) is enforced from the date of the announcement of the election schedule by the Election Commission and remains in operation until the completion of the election process, which includes the counting of votes and the announcement of results.

7.2. The Role of the Election Commission in the State Legislative Assembly Elections

  • The Election Commission of India (ECI) is a constitutional body responsible for conducting elections to the Parliament of India and the legislative assemblies of the states and union territories of India.
  • The ECI is also responsible for conducting elections to the office of the President of India and the Vice President of India.
  • The State Election Commissions (SECs) are statutory bodies responsible for conducting elections to the urban local bodies (ULBs) and rural local bodies (RLBs) in the states.
  • The SECs are set up under the provisions of the Constitution of India and the state election laws.

The ECI's role in state legislative elections includes

  • The ECI announces the schedule for state legislative elections at least six weeks before the date of polling. The schedule includes the dates for filing nominations, campaigning, and polling.
  • The ECI scrutinizes the nominations of political parties and candidates to ensure that they meet all the requirements.
  • The ECI is responsible for conducting polling on the day of the election. This includes setting up polling booths, providing ballot papers, and deploying security personnel.
  • The ECI is responsible for counting votes after the polls close. The counting of votes is done in the presence of representatives of the candidates and political parties.
  • The ECI declares the results of the elections after the counting of votes is complete. The winning candidates are awarded certificates of election.
  • The Model Code of Conduct is a set of guidelines that political parties and candidates must follow during elections. The Model Code of Conduct is intended to ensure that elections are conducted in a fair and free manner.
  • The ECI monitors the campaign period to ensure that all political parties and candidates adhere to the Model Code of Conduct.
  • The ECI conducts voter education programs to ensure that all eligible voters are aware of their rights and responsibilities.
  • The ECI resolves disputes that arise during the election process, such as disputes over the validity of nominations or the counting of votes.

7.3. The salient features of the Model Code of Conduct

 
The salient features of the Model Code of Conduct are as follows:
  • The Model Code of Conduct is intended to ensure that elections are conducted in a fair and free manner. This means that all political parties and candidates must have an equal opportunity to participate in the election process.
  • The Model Code of Conduct requires all political parties and candidates to be transparent about their activities and finances. This helps to promote accountability and deter corruption.
  • The Model Code of Conduct prohibits political parties and candidates from discriminating against any person based on caste, creed, religion, language, or sex. This helps to ensure that all citizens have an equal opportunity to participate in the election process.
  • The Model Code of Conduct respects the right to free speech. However, it prohibits political parties and candidates from making false or misleading statements. It also prohibits them from inciting violence or hatred.
  • The Model Code of Conduct requires political parties and candidates to maintain law and order during the election process. This means that they must avoid any actions that could lead to violence or disorder.
 
For Prelims: Election Commission of India, State Election Commissions, State legislative elections, Model Code of Conduct, Bicameralism, Delimitation Commission, VVPAT, R-EVM's, 
 
For Mains: 
1. Critically examine the reasons for the lack of uniformity in the organization of state legislatures in India. What are the advantages and disadvantages of a bicameral legislature?  (250 words)
2. Discuss the challenges faced by the Election Commission of India in conducting elections in a large and diverse country like India. Suggest measures to improve the electoral process. (250 words) 
3. What factors determine the strength of a legislative assembly in India? How does the Delimitation Commission play a crucial role in the determination of legislative assembly strength? (250 words) 
 
 
Previous Year Questions
 
Prelims

1. Consider the following statements: (UPSC 2017)

1. The Election Commission of India is a five-member body.
2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties.

Which of the statements given above is/are correct?

A. 1 and 2 only          B. 2 only              C. 2 and 3 only                D. 3 only

Answer: D

2. With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following? (UPSC CSE 2019)
(a) The decisions taken by the Election Commission of India while discharging its duties cannot be challenged in any court of law.
(b) The Supreme Court of India is not constrained in the exercise of its powers by laws made by the Parliament.
(c) In the event of a grave financial crisis in the country, the President of India can declare a Financial Emergency without the counsel from the Cabinet.
(d) State Legislatures cannot make laws on certain matters without the concurrence of the Union Legislature.

Answer: B

3. Consider the following statements : (UPSC 2021)

1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.
2. In the 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.
3. As per the- existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her in the event of him/her winning in all the constituencies.
Which of the statements given above is/are correct?
A. 1 only         B. 2 only           C. 1 and 3             D. 2 and 3
 
Answer: B
 
4. With reference to the Delimitation Commission, consider the following statements: (UPSC 2012)
1. The orders of the Delimitation Commission cannot be challenged in a Court of Law.
2. When the orders of the Delimitation Commission are laid before the Lok Sabha or State Legislative Assembly, they cannot effect any modifications in the orders.
Which of the statements given above is/are correct?
A. 1 only          B. 2 only           C. Both 1 and 2             D. Neither 1 nor 2

Answer: C

5. The Voter Verifiable Paper Audit Trail (VVPAT) system was used for the first time by the Election Commission of India in (UPSC CAPF 2019) 

A. North Paravur Assembly Constituency, Kerala
B.  Noksen Assembly Constituency, Nagaland 
C. Mapusa Assembly Constituency, Goa 
D. Nambol Assembly Constituency, Manipur

Answer: B

6. VVPAT, used in Electronic Voting Machine, stands for (BPSC CDPO 2018)

A. Voter Verifiable Paper Audit Trail
B. Voter Varying Paper Account Trail
C. Voter Verified Paper Account Trail
D. Voting Verifiable Paper Audit Trail
E. None of the above/More than one of the above

Answer: A

7. In which of the following options, Electronic Voting Machines were used for the first time during general elections all over India? (Rajasthan Police Constable 2020)

A. 2014         B. 1999             C. 2004               D.  2009

Answer: C

Mains

1. In the light of recent controversy regarding the use of Electronic Voting Machines (EVM), what are the challenges before the Election Commission of India to ensure the trustworthiness of elections in India? (UPSC 2018)

2. Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. ( UPSC 2022)
 
 
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