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CURRENT AFFAIRS – 06/03/2024
CURRENT AFFAIRS – 06/03/2024
Maldives signs defence pact with China
Source : The Hindu
Maldives’s Defence Ministry announced the signing of a military pact with China.
- The agreement was signed between Maldivian Defence Minister Mohamed GhassanMaumoon and Major General Zhang Baoqun, Deputy Director at China’s Office for International Military Cooperation.
- The pact involves “China’s provision of military assistance gratis to the Republic of Maldives, fostering stronger bilateral ties.”
Key Highlights
- In addition to the military pact, the two sides engaged in bilateral talks on military cooperation.
- The move aligns with the commitment made during President Muizzu’s state visit to China in January to “elevate” China-Maldives relations to a “comprehensive strategic cooperative partnership.”
- China also donated 12 green ambulances to the Maldives’s Health Ministry on the same day as the military pact signing.
- Shifting Dynamics in India-Maldives Relations
- In a sign of changing dynamics, India agrees to withdraw troops from the Maldives, replacing them with a technical team to assist in operating India-gifted aircraft.
- This decision follows President Mohamed Muizzu’s persistent calls for the removal of Indian troops, aligning with a campaign promise-turned-official pledge.
- Bilateral discussions between a high-level core group led to a consensus on the phased withdrawal of Indian troops by May 10, 2024.
- Shifting Tourist Arrivals and Economic Relations:
- During his visit to China, President Muizzu urges Chinese travelers to reclaim their top spot in tourist arrivals, as India slips to the sixth spot.
- A “boycott Maldives” campaign on Indian social media has contributed to India’s decline as the largest source market for Maldives tourism.
- China now accounts for 12.8% of total visitors, while India stands at 6.4%.\
Why mineral are critical?
Source : The Indian Express
In July 2023, the government identified a list of 30 critical minerals, excluding rare earths, crucial for various sectors.
- Subsequently, in November 2023, mining laws were amended to allow private sector participation in the auction of 20 blocks containing critical minerals and rare earths.
Key Highlights
- Identification and Definition of Critical Minerals:
- Critical minerals are identified based on factors such as disruption potential, substitutability, cross-sectoral usage, import reliance, and recycling rates, with each country having its own criteria.
- While the US has identified 50 critical minerals and Japan 31, India has identified 30 critical minerals, distinct from rare earths.
- States and Union Territories housing these critical minerals include Bihar, Gujarat, Jharkhand, Odisha, Tamil Nadu, Uttar Pradesh, Chhattisgarh, and Jammu and Kashmir.
- Diverse Applications of Critical Minerals:
- Critical minerals play vital roles beyond decarbonization, including in fertilizers, construction, industrial magnets, transportation, consumer electronics, and defense.
- Notably, clean energy technologies such as solar PV plants, wind farms, and electric vehicles require significantly more mineral resources compared to their fossil fuel counterparts.
- Importance for Decarbonization and Climate Goals:
- Meeting the Paris Agreement targets necessitates a substantial increase in the use of clean energy technologies, driving up the demand for critical minerals.
- The International Energy Agency (IEA) estimates that by 2040, the demand for critical minerals, particularly copper, rare earths, nickel, cobalt, and lithium, will increase significantly to support climate goals.
- Clean energy technologies are projected to require at least four times more mineral resources by 2040 to meet climate objectives.
- Global Concentration of Critical Minerals:
- The surge in demand for critical minerals, including lithium, cobalt, and rare earths, poses challenges due to concentration in a few countries.
- Australia holds 55% of lithium reserves, China controls 60% of rare earths, Democratic Republic of Congo (DRC) possesses 75% of cobalt, Indonesia has 35% of nickel, and Chile holds 30% of copper reserves.
- China plays a significant role in critical minerals, not only having substantial reserves but also monopolizing processing capacities.
- China processes 35% of the world’s nickel, 50-70% of lithium and cobalt, and nearly 90% of rare earths.
- Chinese investments in countries like Australia, Chile, Indonesia, and DRC secure minerals it lacks domestically.
- Complete Supply Chain Monopoly:
- China dominates the entire supply chain, supplying 78% of cathodes, 85% of anodes, 70% of battery cells, and 95% of permanent magnets made from rare earths.
- Notably, even rare earths mined in the US are exported to China for processing, driven by cost considerations and lower carbon emissions.
- Implications for Global Supply Chain:
- The concentration of critical minerals in specific countries, especially China, raises concerns about global supply chain vulnerabilities and dependence.
- The need for strategic diversification and development of processing capabilities in other regions becomes crucial to mitigate risks and ensure a resilient global supply chain.
- China’s monopoly on rare earths and critical minerals enables it to use these resources as geopolitical leverage, restricting exports to countries like the US and Japan.
- This dominance has prompted global concerns, leading to the formation of the US-led Minerals Security Partnership (MSP), which aims to secure the critical minerals supply chain.
- Minerals Security Partnership (MSP):
- The MSP, led by the US, includes countries with critical mineral deposits like Australia, Canada, Sweden, and Norway, along with technology-accessible nations like Japan and South Korea.
- Notably, certain mineral-rich countries like Chile, DRC, Indonesia are not part of MSP, raising questions about the partnership’s effectiveness.
- The core concept of MSP is “friend shoring,” emphasizing the relocation of manufacturing away from authoritarian states, primarily China.
- India’s Stake and Challenges:
- India, recognizing the importance of critical minerals, has joined MSP, aligning with its goals of decarbonization and achieving net-zero emissions by 2070.
- India’s ambitious plans include setting up 500 GW of non-fossil fuel power capacity by 2030 and a significant shift to electric vehicles, requiring a steady supply of minerals, especially lithium for batteries.
- India currently relies entirely on imports for critical minerals, signing agreements, like with Australia, to explore and secure mineral assets.
- Concerns and Roadblocks:
- Lack of access to critical minerals poses a significant roadblock to India’s decarbonization efforts.
- While India is taking steps to secure mineral assets, the challenges extend beyond availability, involving processing, manufacturing, and technology access.
- The gestation period for developing a self-sustaining critical minerals ecosystem in India is estimated to be 15 years or more, raising concerns about meeting decarbonization targets.
What are Critical minerals and Rare earth minerals?
- Critical Minerals:
- Critical minerals refer to a group of minerals and elements that are essential for the economic and industrial development of a country, and their scarcity or potential disruption in supply could have significant impacts on various sectors.
- These minerals are crucial for the production of various technologies, including electronics, renewable energy systems, defense applications, and more.
- Examples of critical minerals include:
- Lithium: Used in batteries for electric vehicles and energy storage.
- Cobalt: Essential for rechargeable batteries and aerospace alloys.
- Rare Earth Elements (REEs): Includes a group of 17 elements vital for various technologies, such as neodymium for magnets in wind turbines and electric vehicles.
- Ensuring a stable and secure supply of critical minerals has become a strategic concern for many countries, as their demand continues to grow with advancements in technology.
- Rare Earth Minerals:
- Rare Earth Minerals (REEs) are a specific group of 17 chemical elements, including lanthanides like neodymium, europium, and promethium, along with scandium and yttrium.
- Despite the term “rare,” these elements are not necessarily scarce, but they are often found in dispersed and low concentrations, making their extraction challenging.
- Key characteristics of rare earth minerals:
- Technological Applications:
- REEs are crucial components in the manufacturing of various high-tech products, including electronics, renewable energy technologies, catalytic converters, and military equipment.
- Supply Dominance:
- China has historically been a dominant producer of rare earth minerals, supplying a significant portion of the global demand.
- This has raised concerns about supply chain vulnerabilities and geopolitical implications.
- Environmental Challenges:
- The extraction and processing of rare earth minerals can pose environmental challenges due to the use of hazardous chemicals and radioactive materials.
- Technological Applications:
Green jobs and the problem of gender disparity
Source : The Hindu
The shift towards low-carbon development in India presents a significant opportunity to generate approximately 35 million green jobs by 2047.
- Green jobs, as defined by the International Labour Organization, are those that contribute to the preservation or restoration of the environment.
- However, gender disparities persist, with men globally expected to transition into green jobs more rapidly than women.
Key Highlights
- Gender Disparities in Green Sectors:
- Despite India’s notable 250% increase in renewable energy capacity from 2015 to 2021, women’s representation in the solar rooftop sector remains limited, accounting for just 11% of the workforce.
- Traditional sectors like manufacturing, construction, renewable energy, and automobiles, which are integral to the green transition, historically have lower female representation, with men dominating sectors such as infrastructure, transport, construction, and manufacturing.
- Training Disparities:
- A 2023 study by the Skill Council for Green Jobs reveals a stark gender imbalance in green skills training, with 85% of training directed towards men.
- Social norms play a crucial role in hindering women’s participation, as over 90% of women surveyed believed that societal expectations limit their engagement in training for green jobs.
- These norms include perceptions of women being unsuitable for technical roles, safety concerns, lower representation in STEM subjects, and familial constraints.
- Benefits of Increasing Women’s Representation:
- Empowering women and advancing gender equity in climate actions are essential for unlocking co-benefits in a low-carbon and environmentally sustainable economy.
- In the short term, addressing gender biases in the labor market can enhance women’s participation rates.
- In the long run, it contributes to women’s empowerment by creating economic, technical, and social opportunities, fostering greater agency and autonomy.
- Limited Data on Women’s Green Jobs:
- The scarcity of comprehensive data poses a significant challenge in understanding the landscape of women’s participation in green jobs in India.
- To address this gap, there is a critical need to map emerging areas for green growth and collect sex-disaggregated data on green jobs.
- Initiatives focusing on gender analysis, periodic labor force surveys, and dedicated resources can shed light on the present and future impact of low-carbon transitions on women workers and entrepreneurs, uncovering hidden roles across different sectors and geographies.
- Global Disparities in Climate Targets:
- Globally, women are lagging behind in the pursuit of climate targets and sustainability goals, particularly in the transition to a low-carbon economy.
- COP 28’s high-level dialogue recently launched the ‘Gender-Responsive Just Transitions and Climate Action Partnership,’ highlighting the importance of improved data, targeted finance, and skill development for a more inclusive transition.
- Given the unequal landscape of women’s work and participation in green jobs, it is crucial to ensure that women can access emerging opportunities from low-carbon transitions.
- This involves reviewing the status quo, mapping current roles, addressing structural barriers hindering women’s employment choices, and creating a conducive ecosystem to foster their participation in green jobs.
- STEM Graduates Discrepancy in India:
- In India, despite 42.7% of total STEM graduates being women, they represent only 30.8% in key sectors for the green transition, such as engineering, manufacturing, and construction.
- Bridging this gap requires early interventions like hands-on learning, mentorship, scholarships, financial assistance, and awareness generation to empower women in green job-related fields.
- By addressing disparities in education and providing support, we can create a more equitable foundation for women to thrive in crucial sectors driving the green transition.
- Financial Support for Women Entrepreneurs:
- To facilitate women entrepreneurs’ entry into the green transition market, gender-focused financial policies and products are crucial.
- Initiatives such as collateral-free lending, financial literacy training, and the establishment of supportive networks can play pivotal roles in unlocking the potential of women in this sector.
- Developing tools to assess creditworthiness, streamline loan disbursement, and reduce operational costs for women-owned businesses is essential for creating an enabling financial environment.
- Leadership Representation and Gender-Specific Integration:
- Increasing the representation of women in leadership positions is vital for incorporating gender-specific needs into low-carbon development strategies.
- This step fosters the integration of women into green jobs by ensuring that decision-making processes consider and address their unique perspectives and challenges.
- A gender-just transition requires a multi-pronged strategy encompassing employment, social protection, reduction of care work burden, and skill development.
- Collaboration across government, private sector, and other stakeholders is essential to leverage the benefits of innovation, technology, and finance for women entrepreneurs and workers.
- Equity and Gender Justice in Business Practices:
- Businesses play a pivotal role in fostering gender justice throughout the green transition.
- Recognizing the centrality of gender equity is essential, and efforts should be made to mitigate barriers stemming from stereotyping or gender bias.
- Creating equitable job opportunities ensures a just transition that benefits everyone involved.
- This calls for a collective effort to build capacity and support women in adapting to the demands of the evolving world of work, co-designing a future pathway that is socially equitable and inclusive for all.
The dynamics of household consumption
Source : The Hindu
Recently, the National Sample Survey Office (NSSO) released the eagerly awaited fact sheet of the Household Consumption Expenditure Survey (HCES) 2022-23.
- This survey holds particular importance as the last results on household consumption expenditure were released in 2011-12, offering a long-awaited glimpse into India’s evolving consumption patterns.
Key Highlights
- Survey Objectives and Methodology:
- The HCES provides an in-depth analysis of how households across India allocate expenditures on consumable items within a specific period.
- Beyond expenditure details, it captures auxiliary information on household characteristics and demographics.
- The survey’s instrumental role extends to constructing a weighing diagram for Consumer Price Indices, a tool tracking retail inflation.
- Weights derived from the HCES reflect the relative significance of goods and services, revealing their respective shares in overall consumption patterns.
- Historical Role and Contributions:
- Since its inception in 1950-51, the HCES has played a pivotal role in India’s growth narrative.
- More than just detailing spending habits, the survey has been a key factor in estimating the head count ratio, indicating the percentage of the population living below the national poverty line.
- Additionally, the HCES serves as a valuable resource for research across diverse fields such as economics and sociology, enriching our understanding of the nation’s socio-economic landscape.
- The Latest Survey:
- Initially scheduled for 2020-21, the HCES faced delays due to the COVID-19 pandemic.
- Undeterred, the survey commenced in August 2022 and continued until July 2023, symbolizing resilience and adaptability in the face of adversity.
- A commendable two-phase approach was adopted, with the ongoing phase in 2023-24 commencing after the completion of the first phase.
- A significant transformation in the Household Consumption Expenditure Survey (HCES) 2022-23 was the positive shift from the traditional paper-aided personal interview method to the modern and efficient computer-assisted personal interview method.
- The introduction of tablets expedited data collection and processing, implementing a more streamlined scrutiny mechanism across divisions of the National Sample Survey Office (NSSO).
- The survey engaged a substantial sample size of 2, 61,746 households, strategically selected through a statistically sound sampling design.
- This approach aimed to align with the consumption patterns of ‘New India.’
- The questionnaire underwent enrichment with contemporary items while eliminating obsolete ones, reflecting a commitment to staying attuned to evolving consumer habits.
- Innovative Survey Techniques:
- To ensure efficiency and accuracy, the survey employed a strategic approach, dividing the questionnaire into three parts.
- Households were surveyed in three separate monthly visits within a quarter, expediting the canvassing process and enhancing response quality.
- This comprehensive approach facilitated a thorough examination of consumption expenditure on all 407 items.
- Combining Modernity and Tradition:
- While embracing modern methods, the survey retained certain traditional practices, such as imputing the value of home-grown or produced stock, gifts, loans, and exchanges.
- Additionally, the NSSO took a pioneering step by imputing the value of items received free of cost through various social welfare programs for the first time.
- The fact sheet provides key estimates within six months of the survey’s completion, showcasing low relative standard errors for monthly per capita expenditure at both national and state levels.
- Economic Landscape Overview:
- The recently released fact sheet from the Household Consumption Expenditure Survey (HCES) 2022-23 provides intriguing and precise insights into India’s economic landscape.
- Noteworthy statistics include the average Monthly Per Capita Expenditure (MPCE) standing at ₹3,773 in rural India and ₹6,459 in urban India.
- When factoring in imputed values of free items, these figures increase to ₹3,860 and ₹6,521, respectively.
- A comprehensive analysis of trends spanning from 1999-2000 to 2022-23 reveals a significant transformation in MPCE composition in rural and urban areas.
- Notably, there is a decline in the percentage share of expenditure on food items, especially cereals, coupled with an increase in spending on fresh fruits and processed foods.
- The data also highlights a surge in the share of non-food expenditures, particularly on durable goods, indicating an improved standard of living and a growing preference for lifestyle enhancements.
About the National Sample Survey Office (NSSO)
- The National Sample Survey Office (NSSO) is a key agency under the Ministry of Statistics and Programme Implementation (MoSPI) in India.
- Established in 1950, the NSSO conducts nationwide surveys to collect data on various socio-economic aspects, serving as a vital source of information for policymaking, planning, and research.
- The organisation is headed by a Director General, conducts large-scale sample surveys across diverse fields on an All India basis.
- The office primarily collects data through nationwide household surveys like, the Annual Survey of Industries (ASI), and other surveys.
- Additionally, NSSO is involved in gathering rural and urban price data, overseeing area enumeration and crop estimation surveys, and maintaining an urban area unit frame for sample surveys.
- The NSSO consists of four divisions:
- Survey Design and Research Division (SDRD):
- Located in Kolkata, this division is responsible for technical planning, formulation of concepts and definitions, sampling design, inquiry schedule design, tabulation planning, and analysis of survey results.
- Field Operations Division (FOD):
- Headquartered in Delhi/Faridabad with a network of offices throughout the country, FOD oversees the collection of primary data for NSSO surveys, ensuring comprehensive coverage.
- Data Processing Division (DPD):
- With its main office in Kolkata and additional data processing centers, DPD handles sample selection, software development, processing, validation, and tabulation of survey data.
- It processes data related to rural prices and wages, as well as the Periodic Labour Force Survey (PLFS) and Annual Survey of Industries (ASI).
- Survey Coordination Division (SCD):
- Located in New Delhi, SCD coordinates activities across NSSO divisions.
- It publishes the bi-annual journal “Sarvekshana” and organizes National Seminars on the results of socio-economic surveys conducted by NSSO.
- Survey Design and Research Division (SDRD):
Maharashtra’s latest Maratha quota law
Source : The Hindu
On February 20, the Maharashtra Assembly unanimously passed the Maharashtra State Reservation for Socially and Educationally Backward Classes Bill, 2024, providing a 10% reservation in education and government jobs to the Maratha community.
Key Highlights
- Controversies Surrounding the Legislation:
- Despite the unanimous approval, the new legislation has sparked controversy and criticism.
- Activists, including Manoj JarangePatil, argue that the Bill is a “betrayal” to the Maratha community.
- They advocate for a Maratha quota within the existing reservation for the Other Backward Classes (OBCs) category.
- OBC leaders express concerns over potential encroachment on their share of the reservation, leading to heightened tensions.
- Similarities to Previous Legislation:
- The current legislation bears resemblance to the Socially and Educationally Backward Classes Act, 2018, introduced by the previous DevendraFadnavis-led government.
- However, the Supreme Court struck down this earlier attempt in May 2021.
- This marks the third legislative attempt in the last decade to establish a Maratha quota in Maharashtra.
- Critics suggest that the legislation might face judicial scrutiny, given the historical challenges in securing approval for a Maratha quota.
- Distinct Categories and Inclusions:
- The recently passed Maharashtra State Reservation for Socially and Educationally Backward Classes Bill, 2024, introduces a 10% reservation for the Maratha community in education and government jobs.
- Crucially, the new Bill does not disrupt the existing OBC quota.
- Additionally, it is separate from the Maharashtra government’s earlier decision to issue Kunbi caste certificates to eligible Marathas for inclusion within the OBC category.
- This means that non-Kunbi Marathas will now fall under the new law, rendering the Maratha community eligible for reservations under two distinct categories for the first time.
- The legislation specifies that individuals falling within the “creamy layer” bracket, i.e., those highly advanced socially, economically, and educationally within the backward class, will not be entitled to the new reservation benefits.
- This provision aims to ensure that the benefits reach those genuinely in need within the Maratha community.
- Basis of the Law:
- The Bill is grounded in a report from the Justice (retired) Sunil B Shukre-led Maharashtra State Backward Class Commission.
- The Commission claims to have surveyed 1, 58, 20, 264 families across the state, asserting that “exceptional circumstances and extraordinary situations” justify exceeding the Supreme Court-approved 50% reservation limit.
- The Commission’s findings indicate that Marathas constitute 28% of the state’s population, with 84% of them considered not advanced.
- The law’s percentage of reservation is left to the state government’s discretion.
- Reasons for Reservation:
- The Commission attributes the need for reservation to factors such as extreme poverty, declining agricultural income, and land holding partitions affecting the Maratha community.
- Notably, it highlights that 94% of farmers who have died by suicide in the state belonged to the Maratha community, underlining the socio-economic challenges faced by this group.
- Reservation Landscape in Maharashtra:
- Currently, Maharashtra has a total of 52% reservations, distributed among various categories, including Scheduled Castes, Scheduled Tribes, OBCs, VimuktaJati, Nomadic Tribes, and Special Backward Classes.
- With the inclusion of the new Maratha quota, the total reservation in the state reaches 72%, also accounting for the 10% Economically Weaker Sections (EWS) reservation.
- The Narayan Rane Committee Report:
- In February 2014, a non-statutory committee led by veteran leader Narayan Rane presented a historic report to the Congress-NCP Democratic Front government in Maharashtra.
- The report, aimed at extending reservations to the Marathas, emphasized that this community constituted 32% of the state’s population and advocated for their economic upliftment through a special quota.
- In response to the Rane committee’s recommendations, the government passed an ordinance in 2014, reserving 16% of government jobs and educational institution seats for Marathas and 5% for Muslims.
- This marked the first-ever attempt to grant reservation to the Maratha community.
- Legal Challenges and High Court Intervention:
- On November 14, 2014, the Bombay High Court, through a division bench led by Chief Justice Mohit Shah and Justice M S Sonak, issued an interim order staying the ordinance.
- The court highlighted findings from previous committees, including the Maharashtra State Backward Class Commission and the National Commission for Backward Classes, stating that the Marathas couldn’t be considered a backward class.
- Citing the Supreme Court’s IndraSawhney v. Union of India (1992) verdict, the bench emphasized the 50% cap for reservations, asserting it could only be breached in “extraordinary situations and for extraordinary reasons.”
- The Rane committee report was also criticized for significant flaws.
- Attempts to Legislate:
- Despite legal challenges, in 2015, the BJP-Shiv Sena government, led by DevendraFadnavis, transformed the ordinance into an Act, which was passed by the Assembly.
- However, the Bombay High Court stayed the Act a year later, citing similarities to the earlier ordinance.
- Formation of Gaikwad Commission:
- In response to previous legislative challenges and legal setbacks, the Maharashtra government constituted an 11-member statutory commission, the Maharashtra State Backward Class Commission, headed by Justice (retired) N.G. Gaikwad.
- Tasked with conducting a comprehensive survey, the commission aimed to assess the socio-economic status of the Maratha community.
- Gaikwad Commission’s Recommendations:
- The Gaikwad Commission submitted its report on November 15, 2018, recommending a 12% reservation for Marathas in higher education and a 13% reservation in public employment.
- The report highlighted that a significant percentage of Maratha families were engaged in agriculture, labor, and various sectors.
- Implementation of SEBC Act, 2018:
- Based on the Gaikwad Commission’s findings, the government implemented the Maharashtra State Reservation for Socially and Educationally Backward Classes (SEBC) Act, 2018, on November 30, 2018.
- This legislation granted Marathas an overall 16% quota in education and government jobs.
- Constitutional Developments:
- In August 2018, the Parliament passed the 102nd Constitutional (Amendment) Act, 2018, which granted constitutional status to the National Commission for Backward Classes.
- The amendment introduced Article 324A, empowering the President to notify a “Central List” of Socially and Educationally Backward Classes (SEBCs) for a specific State or Union Territory.
- Notably, any modifications to the central list were reserved for parliamentary decisions.
- Bombay High Court’s Intervention:
- The Maratha quota under the SEBC Act, 2018, faced legal challenges in the Bombay High Court.
- Petitioners argued that the newly inserted Article 342A diminished states’ powers to identify SEBCs, challenging the reservation for communities like the Marathas.
- High Court’s Verdict:
- In June 2019, a division bench of Justices Ranjit V More and Bharati H Dangre upheld the reservation but deemed the 16% quota granted by the State as “unjustifiable.”
- The court aligned with the Gaikwad Commission’s recommendations, reducing the reservation to 12% in education and 13% in employment.
- The High Court acknowledged the Commission’s identification of “exceptional circumstances and extraordinary situations,” justifying the breach of the 50% reservation cap, emphasizing the unique socio-economic challenges faced by the Maratha community.
- Supreme Court’s Decision:
- In May 2021, a five-judge Constitution Bench of the Supreme Court addressed the JaishriLaxmanraoPatil v. Chief Minister, Maharashtra case, setting aside the Bombay High Court ruling.
- The Supreme Court held that there were no “exceptional circumstances” justifying the breach of the 50% ceiling limit for granting quota benefits to the Maratha community.
- The Court affirmed the constitutional recognition of the 50% cap, citing its earlier Indira Sawhney verdict.
- Court’s Observations on Maratha Community:
- The Supreme Court dismissed the findings of the Gaikwad Commission and asserted that the Marathas are a “dominant forward class” integrated into the mainstream of national life.
- This observation played a crucial role in shaping the Court’s decision.
- Limitations on State Powers:
- While upholding the constitutional validity of the 102nd Amendment, the Court emphasized that only the President (Central government) had the authority to identify Socially and Educationally Backward Classes (SEBCs) for inclusion in the Central List for reservation benefits.
- States could suggest inclusions, exclusions, or modifications to the List but did not have the independent power to grant reservations.
- Review Plea and Curative Petition:
- Following the dismissal of the government’s review plea in April of the subsequent year, a curative petition was filed, still pending adjudication.
- The curative petition represents an additional legal avenue pursued by the Maharashtra government in response to the Supreme Court’s decision.
- Economically Weaker Sections (EWS) Quota for Marathas:
- In November 2022, the Maharashtra government announced that economically weaker members of the Maratha community could benefit from the 10% EWS quota.
- This move followed the Supreme Court’s verdict upholding such a law.
- The EWS quota applies to individuals not falling within any reserved categories with an annual family income of less than ₹8 lakh.
Why did Google delist some Indian apps from Play Store?
Source : The Hindu
On March 1, Google made headlines by removing apps of nearly a dozen Indian firms from its Android app marketplace.
- However, this move followed years of disputes between Google and Indian companies, involving legal proceedings in the Madras High Court and the Supreme Court.
- Despite the intervention of the Ministry of Electronics and Information Technology, the matter remains unresolved.
Key Highlights
- Root Cause: Google’s Platform Fees:
- The core issue revolves around Google’s platform fees for in-app purchases of purely digital services, such as ebook purchases or OTT streaming subscriptions.
- Google charges a fee ranging from 11% to 30% per transaction, contending that this fee supports the maintenance of Google Play and the development of the Android ecosystem.
- The exact fee varies, with developers using Google’s billing product paying 15% for recurring subscriptions or if their annual revenue from in-app payments is less than $1 million.
- Larger firms face a 30% fee.
- In India and South Korea, where regulatory scrutiny is high, Google charges 11% or 26% if developers opt for a different payment method.
- Developer Opposition to Fees:
- Indian developers, including Bharat Matrimony and Disney+ Hotstar, perceive these fees as exorbitant.
- Some have taken legal routes, approaching courts to avoid paying the fees altogether.
- The dispute primarily centers on the size of the fee, with developers contending that while Google has the right to charge a fee for its app store ecosystem, the magnitude of the fee is a point of contention.
- India and South Korea have witnessed intense regulatory scrutiny of Google’s platform fees, leading to the company adjusting its fees to 11% or 26% in these regions for developers choosing alternative payment methods.
- Ongoing Unresolved Issue:
- Despite the Ministry of Electronics and Information Technology intervening and restoring the removed apps, the fundamental issue of platform fees remains unresolved.
- The disagreement underscores the ongoing struggle between Google and Indian developers over the perceived high costs associated with using the Android app marketplace.
- Differential Impact on Apple and Google:
- While Apple has faced relatively less pushback in India due to fewer users of its products, Google, with its dominant Android platform, encounters significant resistance.
- Google Play, considered the primary choice for developers seeking consumer discovery, is a key player in the Indian smartphone market.
- While Apple’s ecosystem is less prevalent in India, Google allows third-party app stores globally, providing developers with some flexibility in avoiding fees.
- However, Google Play comes pre-installed on most Android phones, limiting alternatives for developers.
- International Resistance and Legal Battles:
- Globally, both Apple and Google have encountered substantial resistance to their platform fees.
- Spotify filed a complaint with the European Commission against Apple, citing anti-competitive practices.
- Apple faced a €1.84 billion fine, with the European Commission ruling against unfair trading conditions.
- In the U.S., Epic Games sued both Apple and Google over the 30% fee.
- Regulatory Responses in India:
- In 2022, the Competition Commission of India (CCI) imposed a ₹936.44 crore fine on Google for its Play Store policies.
- Google is appealing this fine and other CCI orders mandating comprehensive choices for in-payments.
- Pending this appeal, the Indian apps that initially went to court have been reinstated on the platform.
- Call for Regulatory Intervention:
- Developers and experts emphasize the need for regulatory intervention to enhance competition in the app store market.
- Proposed measures include removing barriers to adopting other app stores, such as restrictions on arrangements with phone manufacturers, and allowing sideloading, enabling apps to be downloaded via websites.
- Challenges in In-App Payments in India:
- In-app payments are not yet a major component of the digital economy in India, as consumer willingness to pay has been limited to specific services.
- This primarily impacts content streaming, dating, and matrimonial services—the segments expressing discontent over Google’s fees.