In News: The Union Budget 2023 presents an opportunity for our visionary government to amp up its efforts toward making our MSMEs competitive and self-reliant.

Despite concerns of a looming global recession, supply disruptions, and the Russia-Ukraine war, India has stood out as a bright spot, growing faster than most major emerging markets. 6.3 crore micro, small and medium enterprises, account for 30 percent of GDP and employ nearly 11 crore people — have demonstrated a spirit of resilience.

Sales in several industries across the MSME sector reached 90 percent of pre-pandemic levels, this is due to the government's proactive intervention such as extending the Emergency Credit Line Guarantee Scheme, overhauling the Credit Guarantee Trust for Micro and Small Enterprises, and rolling out the Pradhan Mantri Employment Generation Programme to boost self-employment.

Significance of MSME Sector for India

• Compared with large-scale companies, MSMEs aided in the industrialisation of rural areas at minimal capital cost. The sector has made significant contributions to the country's rural socio-economic growth and complemented major industries as well.
• As India aims that the products that are 'Make in India' are also ‘Made for the World,’ adhering to global standards of quality. MSME is acquiring the centre stage in the mission. It is taken as a backbone in making this dream a possibility.
• Considering India’s middle-class economy, MSME offers a flexibility that it can start with limited resources within the control of the owner. From this decision making gets easy and efficient.
• It is the most significant driver in India contributing to the tune of 8% to GDP.

Government can take more steps for MSMEs for making them resilient:

• Streamlining input tax credit for e-commerce suppliers: Suppliers selling on e-commerce platforms need to procure input services like logistics, which are taxed at 18 percent. Assuming an online supplier deals in apparel, which attracts 5 percent or 12 percent GST, there is an accumulation of input tax credit.
  • This leads to precious working capital getting blocked without any visibility of future realization, potentially discouraging suppliers from adopting e-marketplaces.
• Lowering GST rates on input services: Fixed expenses such as electricity, rent, and employee wages to investing in future growth, adequate working capital is a must for small businesses. By lowering GST rates on input services availed by online sellers, the government will not only shore up their finances but also give a leg-up to their digitisation journey.
• Need to expedite GST relaxation for small online businesses: GST Council announced a relaxation of rules for small businesses looking to go online. Mandatory GST registration was waived for small online vendors with a turnover of less than Rs 40 lakh and Rs 20 lakh for goods and services, respectively.
  • These changes, aimed at bringing parity between online and offline sellers, were expected to come into force from January 2023 but will now be implemented by October 2023.
• National Logistics Policy: The National Logistics Policy can also be leveraged to make our MSMEs competitive. The NLP aims to bring down logistics costs as a percentage of the GDP from 13-14 percent to 8 percent, on par with developed nations.
  • Unparalleled reach of Indian Railways can be synergised to ship wares to the remotest parts of the country quickly and cost-effectively.

With a visionary government charting out the nation’s growth path, the budget would deliver on the above challenges for MSMEs and take us closer to the dream of an Atmanirbhar Bharat.

https://indianexpress.com/article/opinion/columns/budget-2023-an-opportunity-to-make-our-msmes-competitive-and-self-reliant-8413792/

About the News:

• A five-judge constitution bench presided by Justice K M Joseph has recently issued a clarification with the validity of Section 497 of the Indian Penal Code (IPC) which is related to adultery.

Major highlights:

• The Supreme Court of India has recently given clarification that the decriminalization of adultery does not apply to the armed forces.
• The Supreme Court gave clarification that it was concerned only with the validity of Section 497 of the IPC and Section 198(2) of the CrPC dealing with adultery, and had no occasion to consider its effect on the Army, Navy, and Air Force Acts.
• The court was neither called upon nor ventured to pronounce the effect of sections 45 and 63 of the Army Act and other acts.
• The members of the armed forces are a class apart with a unique workplace and discipline would be eroded if armed forces personnel and officers can't be acted against for unbecoming conduct.
• The court also gave observation that such a situation was never in the contemplation of the court when it struck down the provision on the grounds of offending Articles 14, 15, and 21.
• Adultery is still considered a civil wrong and a ground for the dissolution of marriage however, the armed forces are still at liberty to initiate disciplinary proceedings against officers and personnel for adultery.

https://indianexpress.com/article/india/decriminalisation-of-adultery-doesnt-apply-on-armed-forces-rules-sc-8416241/

In News

Blind acceptance of numerical majorities in judicial decision-making is under question. This has been brought to notice by the acclaim being offered to minority judgement by Justice Nagarathna for its challenge to the RBI’s institutional acquiescence to the Central government in Supreme Court’s pro-government verdict on demonetisation.

Arguments around Judicial majoritarianism:

• Jeremy Waldron, a legal philosopher, puts forward the reasons for choosing Judicial Majoritarianism:
  • Efficiency through ease of decision making;
  • Epistemic objectivity through majority adherence; and
  • Equality through fairness
• According to him, minority judgements are not to be ignored as:
  • Judges, as opposed to legislators, do not act on hunches or popular perceptions.
  • Judges are experts of law and are aware of the arguments for and against the impugned matter.
  • Judicial majority may fall into either methodological fallacies or be limited by their ‘judicial hunch’.
    • Differences in judicial decisions when all the judges on a particular Bench are subjected to the same set of facts and laws, can be attributed to a difference in either the methodology adopted and the logic applied based on subjective experiences and prejudices.

Status of Judicial majoritarianism in India:

Judicial Majoritarianism under Article 145(5) was passed by the Constituent Assembly without much debate. Today, the efficiency and desirability of head-counting procedures for a judicial determination on questions of national and constitutional importance is being called into question because:

• Our Constitutional history is replete with meritorious dissents:
  • The dissenting opinion of Justice H.R. Khanna in A.D.M. Jabalpur v. Shivkant Shukla (1976) upholding the right to life and personal liberty even during situations of constitutional exceptionalism is a prime example.
  • The dissenting opinion of Justice Subba Rao in the Kharak Singh v. State of U.P. (1962) case upholding the right to privacy which received the judicial stamp of approval in the K.S. Puttaswamy v. UOI (2017) case.
• A study found that the rate of dissent is subject to influences.
  • For example, the rate of dissent at the height of the Emergency in 1976 was a mere 1.27% as opposed to 10.52% in 1980.
• The same study found that the rate of dissent where the Chief Justice was a part of the Bench was lower than in those cases where the Chief Justice was not on the Bench.

Alternatives to Judicial majoritarianism:

Ronald Dworkin proffers a system which may either give more weightage to the vote of senior judges given that they have more experience or to the junior judges as they may represent popular opinion better.

Source:

https://www.thehindu.com/specials/text-and-context/is-judicial-majoritarianism-justified/article66460574.ece

In News

The Economic Survey 2022-23 reflects upon the reforms post-2014 for a New India that are being undertaken to cater to product and capital market space, as well as, to emphasise on ease of living and doing business to lift the economy’s potential growth. The reforms seek to build partnerships amongst various stakeholders to fulfil “Sabka Saath, Sabka Vikaas”.

About the News

Four principles anchor the new reform framework and contribute to enhancing the productive potential of the economy and its people.

Importance of the four-principled reform framework for the Indian economy

Principle I : Creating public goods to enhance opportunities, efficiencies and ease of living

• Reforms:
  • road connectivity (Bharatmala),
  • port infrastructure (Sagarmala),
  • electrification,
  • railways upgradation,
  • operationalising new airports/air routes (UDAN),
  • PM Gati Shakti, and
  • public digital infrastructure such as (e-KYC), digilocker, UPI etc.
• Importance:
  • The National Infrastructure Pipeline (NIP) and National Monetisation Pipeline (NMP) were introduced to fund reforms. NIP extended to 9000 infrastructure projects with a projected investment of ₹111 lakh crore funded by the Central Government, State Governments, and the private sector.
  • India’s core digital economy has grown at 2.4 times the overall economic growth between 2014 and 2019.
  • Higher financial inclusion with
    • e-shram portal,
    • SVANidhi, and
    • Udayam portal.

Principle II: Trust-based Governance

• Reforms:
  • Ease of doing business,
  • E-governance,
  • Introducing civil liabilities for dealing with simple defaults,
  • Repealing archaic laws,
  • Abolishing Angel tax,
  • Adopting a unified GST, and
• Importance:
  • Simplification of Insolvency and Bankruptcy Code (IBC) and the Real Estate (Regulation and Development) Act (RERA).
  • The IBC has imbibed best international practices:
    • An exit mechanism for honest business failures
    • Release of credit locked into the stressed assets for better resource allocation.
    • Faster resolution by debtors to avoid insolvency.
  • RERA is creating a culture of transparent transactions by:
    • Registering real estate brokers and agents with the regulator,
    • Establishing mechanisms for the speedy redressal of disputes and
    • Enabling a single window clearance for timely approvals to the developers.
  • GST has helped businesses by reducing compliances and ensuring a free flow of goods across states.
  • A positive trend of higher tax buoyancy is visible due to the introduction of technology-backed tax governance reforms.

Principle III: Promoting the private sector as a co-partner in the development

• Reforms:
  • The privatisation of Air India
  • New Public Sector Enterprise Policy for Aatmanirbhar Bharat
  • Make in India
  • Sector-specific Production Linked incentives (PLI)
  • The National Logistics Policy (2022)
  • Emergency Credit Line Guarantee Scheme (ECLGS)
  • Introduction of TReDS
• Importance:
  • During FY15 to FY23, an amount of about ₹4.07 lakh crore has been realised as proceeds from disinvestment.
  • Improved labour productivity
  • Improved overall efficiency of the PSUs disinvested during 1990-2015
  • The PLI scheme will significantly boost production, exports and employment in the medium term
  • Most sectors now open for 100% FDI under the automatic route.
  • The number of recognised Start-ups has increased from 452 in 2016 to 84,012 in 2022.
  • Support measures for MSMEs during the pandemic with ECLGS, revision in the definition of MSMEs and TReDS

Principle IV: Enhancing productivity in agriculture

• Reforms:
  • Soil Health Cards,
  • Micro irrigation Fund,
  • Promotion of Farmer Producer Organisations (FPOs)
  • Electronic-National Agriculture Market (e-NAM) extension Platform
  • Agri Infrastructure Fund (AIF)
  • Kisan Rail
  • Cluster Development Programme (CDP)
  • Start-up ecosystem
• Importance:
  • Average annual growth rate of 4.6% for the agriculture sector during the last six years.
  • Farmers enhanced their resources and got good returns with involvement of FPOs and e-NAM.
  • AIF has supported the creation of various agriculture infrastructures.

In news

• Recently Adani group called off its Follow-on Public Offer after a dip in its stocks.

About

• A follow-on public offer (FPO), also known as a secondary offering, is the additional issuance of shares after the initial public offering (IPO).
• Companies usually announce FPOs to raise equity or reduce debt.

Types of FPO

• Diluted Follow-on Offering: Diluted follow-on offerings happen when a company issues additional shares to raise funding and offer those shares to the public market.
• Non-Diluted Follow-on Offering: Non-diluted follow-on offerings happen when holders of existing, privately-held shares bring previously issued shares to the public market for sale. Cash proceeds from non-diluted sales go directly to the shareholders placing the stock into the open market.

https://www.businesstoday.in/markets/stocks/story/adani-transmission-shares-hit-52-week-low-after-flagship-firm-calls-off-fpo-368612-2023-02-02

In news

• During the Budget session 2023, the Finance Minister put emphasis on production of lab grown diamonds.

About

• Lab-grown diamonds are diamonds that are produced using specific technology which mimics the geological processes that grow natural diamonds.
• They are not the same as “diamond simulants” – LGDs are chemically, physically and optically diamond and thus are difficult to identify as “lab-grown.”

Ways of producing LGD

• High pressure, high temperature (HPHT) method: this method requires extremely heavy pressure under extremely high temperatures (at least 1500 celsius). Usually graphite is used as the “diamond seed.”
• Chemical Vapor Deposition (CVD) and explosive formation that creates what are known as detonation nanodiamonds.

Uses of LDG

• LGDs are most often used for industrial purposes, in machines and tools. Their hardness and extra strength make them ideal for use as cutters.
•  Furthermore, pure synthetic diamonds have high thermal conductivity, but negligible electrical conductivity.
• Such diamonds can be used as a heat spreader for high-power laser diodes, laser arrays and high-power transistors.

https://indianexpress.com/article/explained/explained-sci-tech/what-are-lab-grown-diamonds-nirmala-sitharaman-budget-speech-8417482/

In news

• Recently new logo of EIACP and an Infographic Booklet ‘Lexicon of LiFE: A-Z of Sustainable Lifestyle’ was released.

About

• Environmental Information System (ENVIS) was renamed as EIACP (Environmental Information, Awareness, Capacity Building and Livelihood Programme).
• ENVIS came into existence as a plan programme in 1983.
• It is a project funded by the Ministry of Environment, Forests and Climate Change (MoEF&CC), to facilitate collection, analysis and dissemination of information on various facets of environment.
• Around 90 ENVIS centers have been established over India and each centre has been allotted specific subject area.
• The information is being disseminated through the quarterly newsletter and website.

Long-term objectives:

• To build up a repository and dissemination centre in Environmental Science and Engineering.
• To gear up the modern technologies of acquisition, processing, storage, retrieval and dissemination of information of environmental nature; and
• To support and promote research, development and innovation in environmental information technology.

Short-term objectives:

• To provide national environmental information service relevant to present needs and capable of development to meet the future needs of users, originator, processors and disseminators of information;
• To build up storage, retrieval and dissemination capabilities with the ultimate objectives of disseminating information speedily to the users;
• To promote, national and international cooperation and liaison for exchange of environment related information;
• To promote, support and assist education and personnel training programmes designed to enhance environmental information processing and utilization capabilities;
• To promote exchange of information amongst developing countries.

https://pib.gov.in/PressReleseDetail.aspx?PRID=1894728

https://dste.py.gov.in/Envispdy/about.html#:~:text=The%20Environmental%20Information%20System%20(ENVIS,on%20various%20facets%20of%20environment.

Why in news? Recently, dermatologists in Delhi have cautioned users that there is no scientific evidence to prove usage of biotin for healthy hair and nail growth.

About:

• It is a water-soluble vitamin that helps the body metabolize fats, carbohydrates, and protein.
• Water-soluble vitamins are not stored in the body, so daily intake is necessary.
• The human cells cannot synthesize vitamin B7.
• However, bacteria in the body can produce biotin, and the vitamin is present in numerous foods.
• Sources of Biotin: Red meat, eggs, seeds, and nuts.
• Deficiency of Biotin can cause: Hair loss, scaly, red rash around the eyes, nose, mouth, and genitals, Depression, Lethargy, Hallucinations, loss of control of bodily movements, known as ataxia, Weakened immune function, Increased risk of bacterial and fungal infections.

https://timesofindia.indiatimes.com/city/delhi/biotin-not-a-magic-pill-for-better-hair-nnails/articleshow/97470433.cms

Why in news? Recently, Privilege motion moved against Rajasthan BJP MLA for plea in High Court.

About:

• All Members of Parliament (MPs) enjoy rights and immunities, individually and collectively, so that they can discharge their duties and functions effectively.
• Any instance when these rights and immunities are disregarded by any member of Lok Sabha or Rajya Sabha is an offence, called ‘breach of privilege’, which is punishable under the Laws of Parliament.
• Article 105 of the Constitution expressly mentions two privileges, that is, freedom of speech in Parliament and right of publication of its proceedings.
• Apart from the privileges as specified in the Constitution, the Code of Civil Procedure, 1908, provides for freedom from arrest and detention of members under civil process during the continuance of the meeting of the House.

https://www.thehindu.com/news/national/other-states/privilege-motion-moved-against-rajasthan-bjp-mla-for-plea-in-hc/article66455288.ece

Why in news? Recently, In the Union Budget 2023-24, Finance Minister Nirmala Sitharaman announced a new MISHTI scheme.

About:

• MISHTI (Mangrove Initiative for Shoreline Habitats & Tangible Incomes) is a new programme that will facilitate mangrove plantation along India’s coastline and on salt pan lands.
• The programme will operate through “convergence between MGNREGS, Campa Fund and other sources,”.
• This is part of a larger “green push” with focus on the environment and climate change.
• It aims at intensive afforestation of coastal mangrove forests.

https://indianexpress.com/article/upsc-current-affairs/upsc-essentials/upsc-essentials-one-word-a-day-mishti-union-budget-2023-8417629/lite/

Why in news? Recently, The Hindu Group has bagged four awards at the WAN-IFRA Digital Media South Asia Awards 2022 for its various products and services.

About:

• WAN-IFRA is the global organisation of the world’s press.
• Its mission is to protect the rights of journalists and publishers around the world to operate independent media.
• The goal is to provide members with expertise and services to innovate and prosper in a digital world and perform their crucial role in society.
• This was the sixth edition of the digital media awards for South Asia.

https://www.thehindu.com/news/the-hindu-group-bags-four-wan-ifra-digital-media-south-asia-awards-2022/article66458999.ece

Why in news? India’s National Security Advisor hold talks with the US counterpart on the first dialogue on Initiative for Critical and Emerging Technologies (iCET) in the US.

About:

• The iCET initiative was launched by India and the US in May 2022, and is being run by the National Security Councils of both countries.
• Under iCET, both countries have identified six areas of cooperation which would include co-development and co-production.
  • The six areas for cooperation are:
    • Scientific research and development
    • Quantum and artificial intelligence
    • Defense innovation
    • Space
    • Advanced telecom which would include things like 6G and Semiconductors.
• The objective is to provide cutting edge technologies to the rest of the world which are affordable.

https://www.hindustantimes.com/india-news/nsa-doval-meets-with-us-counterpart-sullivan-at-special-reception-hosted-by-indian-envoy-101675138154191.html

Why in news? A mother in Brazil recently gave birth to a two-foot-tall baby weighing 16lb (7.3kg).

About:

• The term used to describe these giant babies is macrosomia (Greek for the large body).
• Any baby that weighs more than 4kg, regardless of its gestational age, is said to have macrosomia.
• Babies with macrosomia are more likely to encounter difficulties moving through the birth canal because of their large size.
• In mothers with gestational diabetes (high blood sugar that arises during pregnancy), this increases to between 15 per cent and 45 per cent of births.
  • Factors that cause Macrosomia:
  • Body weight of the mother.
  • Being older when pregnant.
  • Overdue pregnancies
  • Having a boy increases the likelihood of macrosomia.

https://economictimes.indiatimes.com/magazines/panache/two-foot-tall-infant-weighing-almost-8kg-born-in-brazil-get-to-know-macrosomia-the-condition-that-creates-gigantic-babies/articleshow/97543168.cms