UPSC; DECEMBER 2024, 16th FINANCE COMMISION, PM MODI VISIT TO NIGERIA, BRAZIL, GUYANA,PROBA-3 , AGRREMENTS WITH BHUTAN,CLIMATE CRISIS AND ICJ

16th FINANCE COMMISION : STATES AND THIER CHALLENGES

The Government of Tamil Nadu recently hosted the Sixteenth Finance Commission, which was chaired by Arvind Panagariya.
With its distinguished experts from various fields, the Commission is uniquely positioned to address the critical fiscal challenges facing India and rectifying the skewness in the relationship between the States and the Union.
Opportunities from global changes The decisions taken by this Finance Commission will not only shape the fiscal fate of the nation for the next five years but will also influence India’s economic trajectory in the decades to come.
The Sixteenth Finance Commission’s work coincides with significant shifts in global economic trends.
Concepts such as “friendshoring” and “reshoring” are reshaping international trade and investment patterns.
These trends present a unique opportunity for India and Tamil Nadu. To seize these opportunities, the critical challenge for the Finance Commission lies in striking a balance between equitable redistribution and incentivising growth in high-performing States such as Tamil Nadu.
Since 1951, when the first Finance Commission was formed, each Finance Commission has adapted its own approach towards the fiscal challenges of its time.
Every Commission has sought to achieve an equitable redistribution of resources by increasing the share of States under vertical devolution and channelling funds to less-developed States through horizontal devolution.
But there have been clear gaps between their declared objectives and outcomes; therein lies our case for a new and fair system of distribution of resources.
For instance, while the Fifteenth Finance Commission awarded the vertical share of the divisible pool to the States as 41%, the effective devolution to States in the first four years of the award period amounted to only 33.16% of the Union’s gross tax revenue.
The unprecedented levying of cess and surcharges by the Union is the fundamental reason for this effective decline in devolution.
Hike States’ share, incentivise performers The States, which are near to people, bear substantial developmental expenditures, and, hence, their share should be further increased substantially.
The financial strain on the States has been particularly severe due to increases in counterpart funding for centrally sponsored schemes on the one side and inadequate devolution on the other side.
Hence, a fair and equitable share for States would be 50% devolution of the gross central taxes, allowing States greater fiscal autonomy in funding and implementing locally relevant schemes.
On horizontal devolution, it is evident that the redistribution policy followed for the first four and a half decades in our country has yielded limited results in driving real growth.
Hence, the fundamental question would be this: should the focus be on a smaller national pie with a larger share for less-developed States or a larger national pie with equitable distribution that provides greater absolute resources for all?
The answer is difficult, yet a more balanced approach would ensure a larger national economic pie, allowing for reasonable shares for less-developed States and adequate resources for progressive States to continue their upward trajectory.
This would clearly necessitate a progressive resource allocation methodology for the performing States so as to allow them to fulfil their potential to be India’s growth engines.
Unique challenges in progressive States Amidst this, it is also important to note that progressive States such as Tamil Nadu also face unique challenges in demography and urbanisation.
With a median age higher than the national average, the State’s capacity to generate consumption-based tax revenue is declining, even as the costs of supporting an aging population are rising.
It is imperative to ensure that such States do not fall into the “middle-income trap”, where growth stagnates and they “grow old before becoming rich”.
the challenges due to urbanisation in fast-growing States merit adequate addressal. Tamil Nadu is witnessing the fastest rate of urbanisation in the country, due to which it will have a 57.30% urban population in 2031, against the expected national average of 37.90%.
The resources for fulfilling the infrastructure needs of urbanisation should be earmarked to ensure the long-term sustainability of our growth.

CONCLUSION :-

We should keep in mind that the mandate of the Commission goes beyond fiscal arithmetic.
It is about envisioning a future where every State contributes to and benefits from the nation’s progress.
Whether it is fostering manufacturing, addressing urbanisation challenges, or ensuring climate resilience, the Commission’s decisions will impact millions of lives and determine the trajectory of the country’s destiny, to take its place among the world’s leading economies

IR+BR : GS-2: PM'S THREE DAYS VISIT

Prime Minister Narendra Modi’s visit to Nigeria, Brazil, and Guyana (November 16-21, 2024) was exceptionally well designed to achieve multiple objectives.
It was India’s latest foray into summit diplomacy covering three different geographic regions — Africa, Latin America, and the Caribbean — and encompassed an extensive interaction on bilateral, regional and global issues.
While the Prime Minister’s primary purpose was to represent India at the nineteenth summit of the Group of 20 (G-20), in Brazil, his spending ample time in the two other countries enhanced the impact of this trans-continental journey.
A close look at how the visit unfolded, and its outcome, is an index to understanding India’s current foreign policy priorities.

Nigeria, the first leg The halt at Abuja,

It was a full-scale state visit to Africa’s most populous nation and the fourth-largest economy.
This West African nation’s international heft has been increasing, as evidenced by its presence at the G-20 summit last year at India’s invitation and the BRICS’ invitation to join it as a partner state.
Nigeria’s recent chairship of the Economic Community of West African States (ECOWAS)
As two large democracies and multi-religious, multi-ethnic, and multi-linguistic societies devoted to ‘unity in diversity’, India and Nigeria are natural partners.
The Nigerian leadership gave ample signals to convey its appreciation of India’s expanding economic and political influence and its robust Africa policy.
The formal gifting of the keys of the city of Abuja to Mr. Modi, the ceremonial welcome at the State House complete with a 21-gun salute, and the conferment of a top national award were clear giveaways.
The award citation referred to his leadership and stellar contribution to fostering India-Nigeria ties and noted that India has been positioned as a global powerhouse under his transformative governance.
Nigeria, an important beneficiary of India’s development assistance and human-resource development-related programmes, has been keen to advance the ‘strategic partnership’.
India seemed ready and willing.
The dialogue at Abuja confirmed the two leaders’ assessment that much potential existed for expanding bilateral cooperation in trade, investment, education, energy, health, culture, and people-to-people ties.
New areas such as agriculture, urban transportation, renewable energy, and digital transformation were identified.
they renewed their commitment to joint combat against terrorism, extremism, and radicalisation. Despite closeness at the political level, only three memoranda of understanding (MoU) were signed due probably to bureaucratic delays on the host side.
Overall, the visit was a clear plus for the India-Nigeria friendship.

Brazil

The nineteenth summit of G-20, comprising 19 powerful economies and two regional organisations, was hosted in Rio de Janeiro (November 18–19).
It took forward the people-centric decisions adopted at the New Delhi summit by mainstreaming key perspectives of the Global South into the G-20 decision-making.
The Rio Declaration highlighted the three priorities defined by the Brazilian presidency: social inclusion, sustainable development and reform of global governance institutions.
On the first issue, the Global Alliance against Hunger and Poverty was launched. It will serve as a platform for “mobilizing finance and knowledge sharing” on a wide scale.
Regarding sustainable development, the G-20 reiterated its previous positions but failed to make headway on climate finance.
On the third issue, the new achievement was the adoption of the road map for “Better, Bigger and more Effective Multilateral Development Banks”, with the group calling for its early implementation.
On the United Nations and World Trade Organization (WTO) reform, there was nothing new in the G-20’s pronouncements.
As conflicts rage in Europe and West Asia, leaders sought peaceful resolution and focused attention on the significant issues of economic development and climate change.
While experts debated what the G-20 summit achieved, many expressed the view that it was time for the group to concentrate on implementing its decisions.
The Rio summit provided many opportunities for leaders to interact in the plenary hall and on the sidelines.

Guyana,

Mr. Modi travelled to Guyana, a nation of fewer than one million people in the Caribbean region
40% of the population is of Indian origin, a robust bilateral cooperation programme exists,
Guyana has energy resources and is an important player in regional affairs.
Decisions were announced to expand cooperation in diverse sectors such as energy, defence, urban development, digital collaboration, education, and food security as 10 MOUs were signed.
India and the Caribbean Community held their second summit in Georgetown, Guyana.
This enabled Mr. Modi to interact with about a dozen leaders of this successful regional body.
He proposed seven pillars to deepen cooperation, covering capacity building, agriculture and food security, renewable energy and climate change, innovation, technology and trade, cricket and culture, ocean economy, and medicine and health.
The commonality in these pillars, he told them, was that they were all based on “your priorities and needs”.
Guyana’s President Irfaan Ali hailed him as “a champion among leaders” who has “led incredibly”.
Through the expeditious implementation of the decisions announced, New Delhi could optimise the outcomes of this bold essay in diplomacy.

INFDIA- BHUTAN

Q.) India’s commitment for the Gelephu project while hosting the Bhutanese King is significant as it comes against the back drop of diplomatic set backs that South Block has faced in the neighbourhood, substantiate .

CURRENT SITUATIONS IN SOUTH ASIA:

Dhaka- India’s ties with the interim government of Bangladesh has failed to stabilise since the fall of the Sheikh Hasina government in August.
Nepal- Prime Minister KP Sharma Oli has prioritised Kathmandu’s ties with Beijing and sealed anew Framework for Belt and Road Cooperation during his first foreign trip since taking power in July 2024.
India’s neighbours, including Sri Lanka and Bangladesh have announced reviews of Adani projects in the past few weeks,
U.S. Department of Justice indictment of the Adani Group has cast a shadow,

BILATERAL RELATIONSHIP WITH BHUTAN:

India and Bhutan discussed bilateral projects in the fields of electricity and urban planning during the visit of the King Jigme Khesar Namgyal Wangchuk and Queen Jetsun Pema.
Mr. Wangchuk met Prime Minister Narendra Modi and both sides reiterated continued collaboration on multiple fronts including in the Gelephu Mindful ness City project and hydropower.
A joint statement issued after the meeting said Mr. Modi “reassured His Majesty of India’s continued support for the

Gelephu Mindfulness City Project, which will bring prosperity and well-being in Bhutan
IN the border areas, strengthen economy and investment linkages between the two countries”.
hydel power projects including the 1020-MW Punatsangchhu-II hydro power project and expressed satisfaction as it was “nearing completion”.
The leaders agreed on the need for early conclusion of the Punatsangchhu-I hydro power project.
The two sides reiterated the importance of cooperation in the hydropower sector, and their commitment to advancing it, including through finalizing modalities urgently for new projects, including reservoir hydro projects,” the joint statement said.
Both sides discussed cross-border connectivity projects including a rail line, digital networks.
Prime Minister Tshering Tobgay augurated the Global Cooperatives Alliance in New Delhi on November 25
the Adani Group was in talks with Thimphu for investing in the project in Gelephu.
In July, Mr. Wangchuk and Prime Minister Tobgay had travelled to Gujarat where they sought cooperation with the Adani Group on airport, infrastructure and renewable energy projects.
the Bhutanese government has so far not commented on the Adani issue.

PSLV-C59 AND PROBA -3

After being rescheduled for a day as an anomaly was detected, the Indian Space Research Organisation (ISRO) successfully launched the PROBA-3 (Project for On board Autonomy) mission of the European Space Agency aboard a Polar SaTellite Launch Vehicle-C59 rocket.
The latest member of ESA’s family of in-orbit demonstration missions,
PROBA-3 comprises two spacecraft launched together which, once safely in orbit, will separate to begin performing precise formation flying... Almost in stantaneously after separation,

The vehicle took off from the first launch pad at the Satish Dhawan Space Centre, Sriharikota.
mission had successfully achieved its launch objectives-deploying the satellites into their designated orbit with precision.
Josef Aschbacher-Director-General, ESA,
Yatharagga station in Australia started to receive the spacecraft’s signal.
Telemetry is flowing to ESA’s mission control centre in Belgium.”
ESA’s twin PRO BA-3 platforms will per form precise formation flying down to a single millimetre, as if they were one single giant spacecraft. To demonstrate their degree of control, the pair will produce artificial solar eclipses in orbit, giving prolonged views of the Sun’s ghostly surrounding atmosphere, the corona.” The ESA said the two satellites stacked together separated from their upper stage about 18 minutes after launch.
The pair will remain attached while initial commissioning takes place, overseen from mission control at the European Space Security and Education Centre in Redu, Belgium. PROBA-3 mission manager Damien Galano said, “Today’s lift-off has been something all of us in ESA’s PROBA-3 team and our industrial and scientific partners have been looking forward to for a long time.”
Details shared by the ESA show that if PROBA-3’s initial commissioning phase goes to plan, then the spacecraft pair will be separated early in the New Year to begin their individual check-outs
The operational phase of the mission, including the first observations of the corona through active formation flying, should begin in about four months. PSLV-C59 places PROBA-3 satellites into designated orbit with precision San

BHARATIYA VAYUYAN VIDHEYAK

Parliament on Thursday passed the Bharatiya Vayuyan Vidheyak Bill, 2024, which is expected to provide some relief to aviation personnel in their licensing processes.
The Rajya Sabha passed the Bill on 5TH December2024.
The Bill was introduced in the Lok Sabha on July 31 and was passed by the Lower House on August 9.
The most significant change in the Bill is that the radio telephone operator restricted certificate and licence testing process, which was hitherto conducted by the Department of Telecom for aviation personnel, including air craft maintenance engineers, flight dispatchers, and pilots, has been moved to the Directorate General of Civil Aviation.
This will ensure a single window clearance process as aviation personnel can now secure all their certificates from one authority.
Personnel taking exams, including trainee pilots, have alleged that there was rampant corruption in the conduct of the RTR exam under the DoT, with candidates required to cough up several lakhs in bribes.
The Bill also adds power to regulate the design of aircraft, as well as the places where they are being de signed, in addition to retaining provisions for their manufacture, repair, and maintenance

CLIMATE CRISIS and ICJ

[these views are important for interview question , as per government of India stand]

India slammed developed countries for causing the climate crisis during a landmark hearing at the International Court of Justice (ICJ) on 5TH December's, saying they exploited the global carbon budget, failed to honour climate finance promises and are now demanding that developing countries restrict their resource use

The court is examining what legal obligations countries have to address climate change and the consequences if they fail.

Representing India, Luther M. Rangreji, Joint Secretary in the Ministry of External Affairs, said, “If the contribution to degradation is unequal, the responsibility must also be unequal.”

India said developing nations were the hardest hit by climate change, despite contributing the least to it. “The developed world, which historically contributed the most, is ironically the best equipped with the technological and economic means to address this challenge,” Mr. Rangreji said.

India also slammed the lack of action on climate finance commitments.

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