23 February 2025-Current Affairs

1. India-China Relations: Recent Developments and Key Issues – International Relations

Why in News?

India’s Foreign Secretary Vikram Misri’s visit to China in January 2025 marked a significant diplomatic engagement, hinting at a potential easing of tensions between the two nations. The visit was aimed at reviving bilateral exchanges, but key challenges like border stability, economic concerns, and geopolitical influences continue to shape the evolving relationship.

Key Issues in India-China Relations

1. Diplomatic Engagement

• Misri met with high-ranking Chinese officials, including Foreign Minister Wang Yi, signaling a revival of diplomatic exchanges.
• Areas of renewed engagement include:
  • Media and think-tank interactions
  • Kailash Mansarovar Yatra (a religious pilgrimage route that has been affected by strained relations)

2. Geopolitical Influences

• The return of Donald Trump to the U.S. presidency brings unpredictability to global politics.
• China seeks stable ties with India to counter potential U.S. pressures and maintain regional balance.

3. Economic Considerations

China’s Economic Challenges

• Slowing economy and real estate crisis make it imperative for China to maintain stable regional relationships.
• India as an Economic Partner: Despite political tensions, economic ties remain vital.

India’s Growth Prospects

• One of the fastest-growing economies in the world, attracting companies looking to diversify away from China.
• India’s economic rise demands geopolitical stability to sustain growth and investment.

4. Unresolved Border Tensions

• The Line of Actual Control (LAC) remains a contentious issue.
• Military presence on both sides has remained high since the Galwan clashes in June 2020.
• China continues border infrastructure development, raising security concerns for India.

5. Need for Strategic Clarity

• India must clearly define its border stance to avoid ceding ground to China’s narrative.
• Balancing diplomatic engagement with strategic caution is essential to:
  • Safeguard national security
  • Maintain credibility in global geopolitics

Conclusion

While Misri’s visit indicates a step toward normalization, deep-rooted challenges like border disputes, economic competition, and global strategic shifts continue to shape India-China relations. A balanced approach—leveraging diplomacy while strengthening national security—is necessary for maintaining stability and safeguarding India’s interests.

Relevance for Exam

• International Relations & Security: Understanding India’s foreign policy challenges.
• Economy & Trade: Impact of China’s economic slowdown on India.
• Geopolitics: Role of U.S.-China-India dynamics in shaping global and regional politics.
• Himachal Pradesh Angle: Implications for border areas (Tibet proximity), trade, and security in the Himalayan region.

2. Lokpal and Lokayuktas Act, 2013: Strengthening Anti-Corruption Framework in India – Polity

Why in News?

The Supreme Court recently stayed a Lokpal order that sought to bring High Court judges under its jurisdiction, calling the move “very disturbing.” This legal development raises critical questions about the scope of the Lokpal’s authority and the balance between judicial independence and accountability.

Background of the Lokpal and Lokayuktas Act, 2013

• The Act was introduced to combat corruption at the highest levels of government in India.
• It emerged from the India Against Corruption movement (led by Anna Hazare) that demanded an independent anti-corruption body.
• The Act establishes:
  • Lokpal at the central level
  • Lokayuktas in states

Key Features of the Act

1. Establishment of Lokpal

• A multi-member body led by a Chairperson and up to 8 members (judicial & non-judicial).

2. Jurisdiction of Lokpal

• Can investigate complaints against:
  • Prime Minister (with specific restrictions)
  • Ministers and Members of Parliament (MPs)
  • Group A and B officers of the central government

3. Lokayuktas in States

• Every state is required to set up a Lokayukta to investigate corruption allegations against state officials.

4. Inquiry and Prosecution Powers

• Lokpal has the authority to:
  • Order inquiries and investigations
  • Recommend prosecution
  • Direct disciplinary actions

5. Whistleblower Protection

• Provides legal safeguards for whistleblowers to encourage reporting of corruption cases.

Significance of the Act

• Strengthens anti-corruption efforts by creating an independent watchdog for both central and state governments.
• Enhances public accountability by ensuring scrutiny of high-ranking officials.
• Investigative independence: Lokpal can initiate inquiries without prior government approval.
• Mandates vigilance at the state level through the establishment of Lokayuktas.

Challenges and Concerns

• Delayed implementation of Lokayuktas: Many states have not fully established Lokayuktas, weakening anti-corruption efforts.
• Limited autonomy of investigations: The CBI (Central Bureau of Investigation), which assists Lokpal, is still under government control, raising concerns about independence.
• Political interference in appointments: The process of appointing Lokpal and Lokayukta members has faced delays and political influence.
• Lack of public awareness: Many citizens are unaware of Lokpal’s role and how to file complaints.

Recent Supreme Court Stay: Key Issue

• Lokpal declared High Court judges as public servants under its jurisdiction.
• The Supreme Court stayed this order, citing concerns about judicial independence.
• A hearing is scheduled for March 18, 2025, to further clarify judicial accountability under anti-corruption laws.

Conclusion

The Lokpal and Lokayuktas Act, 2013, is a landmark step in India’s fight against corruption, but its effectiveness is hindered by implementation delays, political interference, and jurisdictional challenges. The recent Supreme Court stay highlights the delicate balance between judicial independence and accountability under anti-corruption laws. Strengthening Lokpal’s autonomy and ensuring full implementation of Lokayuktas at the state level are critical for improving governance and public trust in the system.

Relevance for Exam

• Governance & Public Administration: Role of Lokpal and Lokayuktas in fighting corruption.
• Judiciary & Constitutional Law: Debate on judicial accountability vs. independence.
• Himachal Pradesh Perspective: Implementation of Lokayukta in HP and its effectiveness in tackling corruption at the state level.

3. State Governments and the Union Budget: Impact on Revenues and Expenditures – Economy

Why in News?

The Union Budget significantly influences state finances through tax devolution, grants, and interest-free loans for capital expenditure. These components impact state revenues, expenditures, and fiscal stability. Key trends include:

• Tax devolution and grants form over 40% of state revenues.
• Grants from the Centre are declining and volatile.
• Interest-free capital expenditure loans have emerged as a major funding source since 2020-21.
• The 16th Finance Commission’s recommendations (expected before the 2026-27 Budget) will shape future state finances.

Key Components of State Finances Under the Union Budget

1. Tax Devolution Trends

• Tax devolution refers to the share of central tax revenues transferred to states based on Finance Commission recommendations.
• Increased Allocation:
  • 2024-25: Revised to ₹12.9 trillion (increase due to higher income tax collection).
  • 2025-26 Projections: Expected to rise to ₹14.2 trillion (11% growth).
• Impact on States: Higher tax devolution strengthens state autonomy in financial planning but depends on Centre’s revenue collection performance.

2. Declining Grants from the Centre

• Grants include:
  • Centrally Sponsored Schemes (CSS)
  • Finance Commission transfers
  • Special-purpose grants
• Trends:
  • GST compensation grants ended in 2022-23
  • Total grants for 2025-26 projected at ₹8.9 trillion (14% growth, but still volatile).
• Challenges for States:
  • Uncertainty in fund availability due to declining grants.
  • Increased reliance on own revenues or borrowing.

3. Capital Expenditure Loans

• Interest-free loans allocated to states to boost capital spending (infrastructure, public works, etc.).
• 2024-25 revised estimate: ₹1.25 trillion, showing strong state utilization.
• Encourages states to invest in growth-oriented projects.

4. Conditional Borrowing Linked to Power Sector Reforms

• The Centre extended 0.5% of Gross State Domestic Product (GSDP) as conditional borrowing to encourage power sector reforms.
• Originally set to end in 2025-26, it has been extended, linking financial assistance to sectoral improvements.
• Impact: Helps improve state power infrastructure and fiscal discipline.

5. Future Outlook – 16th Finance Commission’s Role

• The 16th Finance Commission’s recommendations (expected before 2026-27) will address:
  • Deficit targets for states.
  • Continuity of the capex loan scheme.
  • Fair distribution of tax revenue.
• States expect guidance on managing fiscal stress and improving fund allocations.

Conclusion

The Union Budget plays a crucial role in shaping state finances, influencing their revenues, expenditures, and borrowing capacity.
✅ Tax devolution remains a strong source of revenue, with steady increases.
❌ Declining and volatile grants pose financial challenges for states.
✅ Interest-free capex loans provide essential funds for infrastructure.
❌ Conditional borrowing creates fiscal pressure but promotes key reforms (e.g., power sector improvements).
The 16th Finance Commission’s recommendations will be key in determining future financial stability and autonomy for state governments.

Relevance for Exam

• Indian Economy & Public Finance: Role of Centre-State financial relations.
• Federalism & Governance: Fiscal autonomy vs. dependence on the Union Government.
• Himachal Pradesh Perspective:
  • Impact of tax devolution & grants on HP’s budget.
  • Use of capex loans for infrastructure in Himachal.
  • Conditional borrowing and power sector reforms in the state.

4. UN-Habitat and C40 Cities Partnership: Advancing Sustainable Urban Development – International Relations

Why in News?

A new partnership between UN-Habitat and C40 Cities has been established to enhance urban resilience and sustainability. This collaboration aims to:

• Promote sustainable urban planning.
• Reduce inequality, discrimination, and poverty in cities.
• Strengthen climate action initiatives in urban areas.

Understanding UN-Habitat

UN-Habitat is the United Nations’ agency dedicated to urbanization and human settlement issues. Its primary objectives include:

• Promoting sustainable cities that are environmentally and socially inclusive.
• Ensuring adequate housing for all by improving urban infrastructure.
• Encouraging resilience and disaster preparedness in urban areas.

Governance Structure of UN-Habitat

• UN-Habitat Assembly:
  • Universal body with all 193 UN member states.
  • Meets every four years to discuss global urban development.
• Executive Board:
  • 36 elected member states.
  • Meets three times annually to oversee operations.
• Committee of Permanent Representatives (CPR):
  • Open-ended body meeting twice every four years.
  • Provides policy guidance and strategic oversight.
• Headquarters: Nairobi, Kenya.

What is C40 Cities?

C40 Cities is a global network of 96 major cities committed to tackling climate change and promoting urban sustainability.

Key Focus Areas:

• Reducing carbon emissions.
• Enhancing climate resilience in cities.
• Developing green infrastructure and public transport.
• Promoting energy-efficient buildings and clean air initiatives.

Significance of the UN-Habitat and C40 Cities Partnership

1. Transforming Urban Planning

• Encourages smart city solutions to improve urban living standards.
• Integrates climate resilience into city planning to combat extreme weather events.

2. Reducing Inequality and Poverty

• Aims to improve housing and infrastructure in marginalized urban areas.
• Supports inclusive policies for vulnerable communities.

3. Strengthening Climate Action

• Aligns urban policies with global climate goals (like the Paris Agreement).
• Focuses on green transportation, renewable energy, and waste management.

Conclusion

The UN-Habitat and C40 Cities partnership is a significant step toward sustainable urbanization, addressing climate change, social inequality, and infrastructure development. By integrating environmental and social sustainability into urban planning, this initiative supports global efforts to build more resilient and livable cities.

Relevance for Exam

• Urban Development & Sustainability: Role of UN agencies in city planning.
• Climate Change & Environment: Impact of urban policies on global warming.
• Himachal Pradesh Perspective:
  • Shimla and Dharamshala’s urban challenges (traffic, waste management, climate adaptation).
  • Smart City projects in Himachal and lessons from global urban models.

5. Solar Coronal Holes: Characteristics and Impact on Space Weather – Science and Technology

Why in News?

Recent research has provided precise estimates of the thermal and magnetic properties of solar coronal holes, improving our understanding of their role in space weather and their impact on Earth.

What Are Solar Coronal Holes?

1. Definition & Appearance

• Dark regions on the Sun observed in X-ray and extreme ultraviolet (EUV) images.
• Appear cooler and less dense than surrounding plasma.
• Feature open, unipolar magnetic fields that allow solar wind to escape.

2. Duration & Solar Cycle Influence

• Coronal holes can persist for weeks or months.
• They are more prominent during solar minimum periods, when solar activity is lower.

Significance of Coronal Holes

1. Impact on Space Weather

Source of High-Speed Solar Wind

• Coronal holes release fast solar wind into space, which can:
  • Disturb Earth’s magnetosphere.
  • Trigger geomagnetic storms.

Effects on Satellites and Communication Systems

• Interference with GPS signals and radio communications.
• Increased risk to satellites due to charged particles.

2. Influence on Earth’s Ionosphere & Climate

• Affects radio wave propagation, causing communication disruptions.
• Linked to variations in the Indian summer monsoon rainfall, showing a possible solar-climate connection.

Conclusion

Studying solar coronal holes helps scientists predict space weather events and mitigate their impact on Earth’s communication systems and climate patterns. As research advances, understanding these solar phenomena will be crucial for improving satellite protection, radio communications, and climate forecasting.

Relevance for Exam

• Science & Technology: Understanding space weather and its effects on Earth.
• Geography & Environment: Link between solar activity and climate variations.
• Disaster Management: Impact on communication systems and satellite operations.