Directive Principles of State Policy (DPSP)

• Part IV
• Articles 36 to 51
• Borrowed from Irish Constitution (Copied from Spanish Constitution)
• Instrument of Instructions (GOI Act, 1935)
• Concept of  "Welfare State"
• Non-Justiciable
• Aim at establishing social and economic  democracy

Amendments

42nd CAA, 1976

• Article 39 (Children)
• Article 39A (Equal Justice, free legal Aid)
• Article 43A (workers)
• Article 48A (Environment and Wildlife)

44th CAA, 1978

• Article 38 (Inequalities in Income)

86th CAA, 2002

• Article 45 to Article 21A (Elementary Education)

97th CAA, 2011

• Article 43B (Co-operative Societies)

Cases

Champakam Dorairajan (1951)

• FR Should Prevail over DPSP (Ruled By SC)
• Parliament: 1st CAA 1951, 4th CAA 1955, 17th CAA 1964

Golaknath Case (1967)

• Court: FR can not be amended for the  implementation of the DPSP
• Parliament: 24th CAA 1971, 25th CAA 1971
• 24th CAA 1971: Parliament has the power to take away any of the FR by Enacting the CAA
• 25th CAA 1971: Article 39(b) and (c) prevails over Article 19,14 and Article 31, No Judicial Review

Kesavananda Bharti Case (1971)

• Basic Structure (Not Defined in the Constitution)
• 25th CAA 1971: Judicial Review

Minerva Mills Case (1980)

Citizenship

 Two well known Principles,

• 'Jus Soli': Citizenship on the basis of place of birth 
• 'Jus Sanguinis':  Basis on blood relation ~> Rejected by Constituent Assembly

Indian Constitution

• Union List
• Constitution does not define the "Citizen"
• Details in the Part II (Article 5 to 11)
• Single Citizenship (e.g. UK)

Article 11

• It empowers Parliament to make any provision wrt the acquisition and termination of citizenship and all matters relating to it.

Acquisition

• By Birth
• By descent
• Registration 
• Naturalisation

Citizenship Act, 1955

• Act has been amended 5 times: 1986, 2003, 2005, 2015 and 2019

Section 6A

• Only applicable to Assam

Doctrine of Basic Structure

• Kesavananda Bharati v State of Kerala 1973
• a 13-judge Constitution Bench ruled that the ‘basic structure’ of the Constitution could not be amended by Parliament.
• Origin: German Constitution
• Constitution does not defined "Basic Structure"

The Preamble

• Foundation: Jawaharlal Nehru’s Objectives Resolution-adopted by the Constituent Assembly on January 22, 1947

IN OUR CONSTITUENT ASSEMBLY  twenty-sixth day of November, 1949, do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.

Keywords

1.Sovereign

2. Socialist

• In Directive Principles of State Policy (Arts. 39(b) and 39(c))
• 42nd Amendment Act in 1976

3. Secular

• 42nd Amendment Act in 1976
• Articles 14, 15 and 27 establish the secular nature of the state.
• Arts. 25–28 guarantee to all individuals, the freedom to profess, practice and propagate their religion, and assure strict impartiality on the part of the state and its institutions towards all religions

4. Democratic

5. Republic

6. Liberty

• an absence of restraints on the activities of individuals 
• The ideals of liberty, equality and fraternity are taken from the French Revolution

7. Equality

• absence of special privileges to any section of the society
• Civic, (Article 14, 15, 17 and 18)
• Political, (Article 325 and 326)
• Economic (Article 39 and 16) 

8. Fraternity

• Article 51A (Fundamental Duties)
• 42nd Amendment Act in 1976

9. Justice

• Social, economic and political

Cases

1.Berubari Union Case, 1960

•  not a part of the Constitution.

2. Kesavananda Bharaticase, 1973

• Preamble is a part of the Constitution
• Doctrine of Basic Structure

3. S R Bommai Case, 1994

• Preamble is a part of the Constitution

Ramabai (1858–1922):

 She championed the cause of women’s education. She never went to school but learnt to read and write from her parents. She was given the title ‘Pandita’ because she could read and write Sanskrit, a remarkable achievement as women then were not allowed such knowledge. 

She went on to set up a Mission in Khedgaon near Pune in 1898, where widows and poor women were encouraged not only to become literate but to be independent. They were taught a variety of skills from carpentry to running a printing press, skills that are not usually taught to girls even today.

The printing press can be seen in the picture on the top left corner. Ramabai’s Mission is still active today.

Mahatma Gandhi

• 2nd October, 1869 Porbandar (Gujarat)
• Gandhi Peace Prize
• International day of Non-Violence 
• 30 January, 1930: Martyrs' Day

South Africa

• 1893-1915
• Satyagrah
• 1899-1902: The Boer War: Awarded the Queen's South Africa Medal for serving the British Empire
• Phoenix (Durban)
• Tolstoy Farm (Johanessburg)
• 1911: Gopal Krishan Gokhale (Political Guru)  Visited South Africa
• Viceroy Hardinge

9th January, 1915: Return to India: Pravasi Bharatiya Divas

Satyagraha Movements

• 1916: Champaran (Bihar): 1st CDM, Rajkumar Shukla, Problems of Indigo Planters, Tinkatiya System (3/20), Rajendra Prasad, Anugrah Sinha
• 1917: Kheda (Gujarat): 1st NCM, Sardar Patel, Indulal Yagnik
• 1918: Ahemdabad (Gujarat): Mill Workers: 1st hunger Strike, Anusuiya Sarabai
• 1919: Nationwide Satyagraha against the Rowlatt Act (1919)
• 13 April,1919: Jallianwalla Bagh: Called off the Movement
• 1920: Non-Cooperation Movement: Calcutta Session: Support Khilafat
• Dec 1920: Nagpur Session: Non-Cooperation Movement Addopted
• 1922: Withdrwa the NCM after the Chauri Chaura Incident
• 1930: Salt March: Civil Disobedience Movement: Sabarmati to Dandi
• 1931: Gandhi Irwin Pact: Called off CDM: 2nd Round Table Conferenece
• 1934: Relaunched CDM
• 1942: The Quit India Movement

Social Work

• Poona Pact (1932): Dr B.R. Ambedkar
• The Hindustani Prachar Sabha (1942) at Wardha (Maharastra)

Books

• Hind Swaraj
• My Experiments with Truth

News Paper

• Harijan (Gujarati)
• Indian Opinion (South Africa)
• Young India (English)

"I cannot possibly bear the idea that a man who has got wealth should get the vote but a man who has got character but no wealth or literacy should have no vote, or that a man who honestly works by the sweat of his brow day in and day out should not have the vote for the crime of being a poor man…".

Women's Suffrage Movement

• Women's struggle for the right to vote during the 1st World war
• USA gave first

Seperation of Powers

 

Advent of Europeans in India

Portuguese (1498)

• Prince Hennry of Portugal (Navigator)
• Treaty of Todesillas (1494): B/w Spain (West) and Portugal (East) [Imaginary line in the Atlantic]
• Bartholomew Dias (1487): Cape of Good Hope (Africa)

Vasco Da Gama (1498):

• Help of  Gujarati - Abdul Majid
• 1501 Returned to India
• Cannanore: Trading Factory
• Calicut, Cannnore, Cochin Commerce centres.

Francisco De Almeida

• Cost of Diu 1507: Egyptian and Gujarat navies - Ameida son Died
• Blue Water Policy (Cartage System)

Alfonso de Albuquerque

• Abolition of Sati

Nino da Cunha

• 1529
• HQ: Cochin to Goa 

Western disturbance

• Western disturbances are storms that originate in the Mediterranean region. 
• They bring easterly winds to Delhi, along with a spike in moisture and increased clouding or rainfall. 
• They are regular features in winter. 
• In monsoon and summer, they have more tropical characteristics and bring rain and thunderstorms. 
• In winter, they bring rain and snow over the hills and more moisture to the plains. 
• The cloud cover results in higher minimum temperatures at night and lower day-time or maximum temperatures.

Sector of Economy

The real sector of an economy is the key section as activities of this sector persuade economic output and is represented by those economic segments that are essential for the progress of the GDP of the economy. For instance, farmers harvesting their crops or textile mills converting raw cotton into fabrics ensure the increase of economic output and in turn progress of GDP. The sector is crucial for the sustainability of the economy because of its productive capability to meet nations’ aggregate demand.

The financial sector is a section of the economy made up of firms and institutions that provide financial services to commercial and retail customers. The financial sector generates a good portion of its revenue from loans and mortgages. This sector comprises a broad range of industries including banks, investment companies, insurance companies, and real estate firms. Thus, a commercial bank lending money to a trading company or a corporate body issuing rupee-denominated bonds overseas constitutes  financial sector activities and not real sector activities.

Source: Vision IAS

Consumer Protection (E-Commerce) Rules, 2020

The e-commerce entity (also foreign-owned) is any person who owns, operates or manages a digital or electronic facility or platform for electronic commerce, but does not include a seller offering his goods or services for sale on a marketplace e-commerce entity.

Marketplace based model of e -commerce means providing an IT platform by an e-commerce other hands entity on a digital & electronic network to act as a facilitator between buyer and seller. On other hand, Inventory based model of e-commerce means an e-commerce activity where an inventory of goods and services is owned by an e-commerce entity and is sold to the consumers directly. However, FDI is not permitted in an inventory based model of e-commerce marketplace-based

 

According to guidelines for FDI (Foreign Direct Investment) on E-Commerce, an E-commerce entity providing a marketplace will not exercise ownership or control over the inventory i.e. goods purported to be sold. Such ownership or control over the inventory will render the business into the inventory-based model. Inventory of a vendor will be deemed to be controlled by an e-commerce marketplace entity if more than 25% of purchases of such vendor are from the marketplace entity or its group companies.

Source:  Vision IAS

Inflation-indexed bonds

the Inflation-indexed bonds in India were issued by the Reserve Bank of India (RBI) in 2013 and were benchmarked to Wholesale Price Index (WPI).

Inflation-indexed bonds are financial instruments that attempt to protect the bonds' purchasing power by tying interest and principal payments to an index of price changes.

Indexed bonds include two types of compensation, a real rate of return plus compensation for the erosion of purchasing power. The inflation component on the principal will not be paid with interest but the same would be adjusted in the principal by multiplying the the principal with index ratio (IR). At the time of redemption, the adjusted principal or the face, whichever is higher, would be paid. The interest rate will be provided protection against inflation by paying fixed coupon rate on the principal adjusted against inflation. 

Economists have argued that inflation-indexed bonds could reduce government borrowing costs. If the market overestimates future inflation, the government will reduce borrowing costs by issuing inflation-indexed bonds rather than nominal bonds. This may occur because, for example, investors• expectations are not completely forward-looking or rational. Alternatively, the government, because it is able to influence inflation through its policies, may have better information about the future course of inflation, or perhaps has more faith in its commitment to contain it than the public does. In these cases a treasury can lower its costs by issuing indexed bonds.

The government can reduce the coupon rates on its borrowing by way of IIBs by reducing inflationary trends.

Extant tax provisions will be applicable on interest payments and capital gains on IIBs. There will be no special tax treatment for these bonds.

Intervention by RBI

A central bank such as the Reserve Bank of India (RBI), periodically intervenes in the debt market to influence the interest rates and rate of inflation in the economy. 

If RBI feels inflation is too high, it will sell government securities, and suck money out of the system. This act will push up interest rates in the economy, and businesses will cut back on capital expenditure financed by loans, reducing the demand for money.

Central banks also intervene periodically in foreign exchange markets.

If the rupee is rapidly depreciating, RBI will sell dollars in the market. This will increase the supply of dollars and the demand for rupees, causing the rupee price of the dollar to come down. 

On the contrary, if the rupee is rapidly appreciating, RBI will buy dollars and inject rupees into the economy. This will increase the demand for dollars and the supply of rupees, thereby leading to an increase in the rupee price of the dollar.

If interest rates in the US or the EU were to fall, FIIs (Foreign Institutional Investors) will ramp up investments in India. The resultant demand for rupees will cause the rupee to appreciate. In response, RBI will buy dollars and inject rupees into the system.

Source: VisionIAS

Exchange Rate

A nominal Effective Exchange Rate (NEER) is a measure of the value of a currency against a weighted average of several foreign currencies. 

• The nominal exchange rate is the amount of domestic currency needed to purchase foreign currency. 
• If a domestic currency increases against a basket of other currencies inside a floating exchange rate regime, NEER is said to appreciate. 
• If the domestic currency falls against the basket, the NEER depreciates..
• An increase in NEER indicates an appreciation of the local currency against the weighted basket of currencies of its trading partners. 

The real effective Exchange Rate (REER) is the real effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs. 

In simple words, a nation's nominal effective exchange rate (NEER), adjusted for inflation in the home country, equals its real effective exchange rate (REER).

An increase in REER implies that exports become more expensive and imports become cheaper; therefore, an increase indicates a loss in trade competitiveness.

If inflation is in an increasing trend in domestic nation relative to inflation in other countries, there is likely to cause an increasing divergence between NEER and REER.

Source: VisionIAS

Uniform Civil Code (UCC)

 Directive Principle of State Policy (DPSP)

• Article 44

Price Indices: CPI and WPI

  The inflation rates in the country are the year-on-year

1. Wholesale price index (WPI) based inflation rate
2. Consumer price index (CPI) based inflation rate

• The CPI-based inflation data is compiled by the Ministry of Statistics and Programme Implementation (or MoSPI) and 
• the WPI-based inflation data is put together by the Department for Promotion of Industry and Internal Trade (or DPIIT).

Difference

• WPI does not take into account the change in prices of services.
• If services such as transport, education, recreation and amusement, personal care, etc. get significantly costlier, then retail inflation will rise but there will be no impact on wholesale price inflation.

Repo Rate, Reverse repo rate, Cash Reserve Ratio (CRR) Rate

The interest rate that the RBI charges when commercial banks borrow money from it is called the repo rate.

• when the RBI wants to encourage economic activity in the economy, it reduces the repo rates. This indicates to people spend money.

Reverse repo rate

• The interest rate that the RBI pays commercial banks when they park their excess cash with the central bank.

 The repo rate is higher than the reverse repo rate.

Cash Reserve Ratio (CRR) Rate

• The Cash reserve ratio is a certain percentage of cash that all banks have to keep with the RBI as a deposit.

Constituent Assembly

•  1935: INC officially called for a constituent assembly to frame a constitution for India.

1938: Nehru Made a Statement regarding the Constitution

1940: August Offer Accepted the Demand

a constituent assembly was established under the provisions of the Cabinet Mission plan.

Composition

• Constituted in 1946
• 389: 296 For British India and 93 For Princely States

Governor

Article 164

• The CM shall be appointed by the Governor
• The other Ministers shall be appointed by the Governor on the advice of the Chief Minister
• CM and Minister shall hold office during the pleasure of the Governor 

In Addition