The Aakhya Weekly #22 | Why the fuss around EWS reservations?
The Aakhya Weekly #22 | Why the fuss around EWS reservations?
In Focus: Exploring the EWS controversy
This week, the Supreme Court of India, with a 3:2 majority, upheld reservations for the country’s economically weak populations.
Our constitution prohibits the Indian state for discriminating between persons based on the social group they belong to. However, the very first amendment to the constitution, back in 1951, created an exception to this principle, allowing the State to enact special measures for “socially and educationally backward classes”, as well as persons from scheduled castes and tribes. In 2019, the Government brought in the 103rd amendment to the Constitution, which permitted an additional exception for economically weaker sections of society, who were not covered under pre-existing exceptions.
These exceptions enable reservations in jobs and educational institutions, a much used weapon in the Government’s arsenal to correct societal imbalances. These reservations were once meant for persons from scheduled castes and tribes. With time, however, a variety of other non-upper caste groups - dubbed the ‘other backward classes’ - demanded reservations as well. Various commissions set up by the Government, including the Kalelkar Commission and the Mandal Commission, supported such a move. This demand was acceded to in 1990, and its benefits have been extended to various social groups over time. The 103rd amendment, now, has permitted an additional 10% reservation for those outside these groups that are economically weak.
So why is this move controversial? Some of the concerns critics have highlighted are below:
Exclusion of socially disadvantaged groups: The new criterion for the economically worse off excludes groups for whom reservation has previously been given. For instance, even if a scheduled caste person met the economic criteria to qualify for reservation, they would still be excluded from its ambit. This, some argue, is discriminatory.
Social vs economic deprivation: Backward social groups, critics argue, have the homogenous experience of facing similar disadvantages in many spheres of their lives. Economic deprivation, on the other hand, affects different people in different ways. It is incorrect, critics argue, to lump such disparate groups in the same category.
Over-reservation?: The Supreme Court had previously placed a limit on reservation: no more than 50% of all seats available could be reserved. This ceiling has been removed for the economically weak. In effect, this creates more reserved seats than unreserved ones.
Many challenged the constitutionality of the measure. It was thus that the Supreme Court was tasked with assessing whether the amendment altered the ‘basic structure’ of the constitution - i.e., did it alter the constitution to a degree that it corroded the constitution's very nature. To two judges, the answer was a resounding yes - inasmuch as such reservation excluded socially marginalised groups. To the majority of the court, however, it was not so.
The Supreme Court’s judgement on the matter can be found here. For a history of reservations in India, see this piece from The Indian Express. Yogendra Yadav and Prannv Dhawan critique EWS reservations as an idea, as well as the Supreme Court’s decision. Keiran Corriea examines Justice Bhat’s dissent in the case to elucidate the argument on the constitutional invalidity of the amendment. Lalit Panda, in this excellent ET article, sees the judgement as an indictment of the sorry state of Indian discrimination law, despite the need to assist the economically weak.
Tracking the G20
India is set to take up the mantle of G20 presidency from December 1. Starting this week, the Aakhya Weekly will track everything that you need to know about this historic opportunity.
Prime Minister Modi on Tuesday, 9 November 2022, launched the G20 Theme and Logo for the India presidency. In an almost 30 minute long speech, he provided a blueprint for India's approach to the G-20 presidency.
PM Modi’s clarion call was “One Earth, One Family, One Future”, aptly underscored by the phrase “Vasudhaiva Kutumbakam”, signifying global harmony and universal brotherhood, calling for a sustainable, holistic, responsible and inclusive developmental approach.
Established in 1999, the G20 is a group of the twenty largest economies in the world, constituting over 80% of the global GDP and two-thirds of the world's population.
You can find this week’s coverage of the summit here, here, and here.
Top Stories of the Week
India to release its long-term climate strategy at COP27 on 14th November
India is scheduled to release its Long-term Low Emissions and Development Strategies (LTLEDS) at the ongoing COP27, United Nation’s 27th climate conference on 14th November 2022. Shri Bhupendra Yadav, India’s Environment and Climate Change Minister will release the document on his return for the second week of negotiations at the event.
The strategies are expected to provide a roadmap towards achieving net zero emissions by 2070, a vital climate goal of India. There will be a focus on seven thematic areas — electricity, transport, economic and financial aspects, carbon dioxide removal, industry, urban, and forests. While the strategy would not provide intermediary targets, all existing and potential policy measures have been analysed to create it through months of consultations amongst government representatives, academic expertise and think tanks.
Given that India is seeing economic growth backed by higher energy consumption in recent years, this transition poses the massive hurdle of high financial and transaction costs. The overarching challenge remains to identify a pathway that is in consonance with India's development needs.
TV channels to broadcast ‘national interest’ content for 30 minutes per day: MIB
The Ministry of Information and Broadcasting (MIB) after 11 years has approved the guidelines for uplinking and downlinking of TV channels.
The guidelines were first issued in 2005 and then revised in 2011. MIB Secretary Apurva Chandra stated that “uplinking can be deregulated so at least the channels from the neighbouring countries, let's say, Nepal, Bangladesh, Bhutan, Sri Lanka can use India as a hub for uplinking of channels and that will provide a further boost to the satellite communication sector of the country”.
TV channels will now be required to broadcast 30 minutes of content daily on issues of national interest, such as education, literacy, women’s welfare, agriculture, cultural diversity and national integrity, environment and climate change, family welfare, healthcare and so on. However, the Secretary clarified that the Government would not be providing any content to the channels; rather, they are free to create their own content as per the guidelines. Further, broadcasters would no longer have to seek prior permission for live events, but prior registration would still be a requirement.
This Week in Policy
Economy and Taxation
India’s Services PMI has increased slightly in the month of October, to 55.1 from 54.3 in September. Any PMI over 50 indicates a belief that the sector shall expand.
Nine judicial members and six technical members have been appointed to the National Company Law Tribunal. The body has previously faced severe manpower constraints, with only 28 of its sanctioned 63 members being in service prior to the appointment.
Agriculture and FMCG
Cabinet approves a subsidy of ₹51,875 crore to Nitrogen, Phosphorus, Potash and Sulphur for Phosphatic and Potassic fertilizers for the rabi season, more than twice the initial budget estimate, owing to surge in market prices.
Government curbs sugar exports to 6 million tonne (mt) of sugar in the 2022-23 season (October-September), as against 11.2 mt shipped out last year to keep domestic prices in check.
Government designates National Dairy Development Board (NDDB) for formation and promotion of fodder-centric Farmer Producer Organisations (FPOs) to address the ongoing fodder deficit, setting a target of 100 such FPOs in 2022-23.
Healthcare
The Union Ministry is working to scrap the bond policy for doctors, which requires them to compulsorily serve in state hospitals after the completion of their graduate and post-graduate degrees. The move follows recommendations of the National Medical Council in this regard.
India is setting up a comprehensive database of drug formulations that are made and sold in the country, the ‘National Drugs Database’, in order to strengthen monitoring and plug in regulatory loopholes. There is currently no such database in India, which has lead to significant gaps in regulation.
Foreign affairs
The MEA has welcomed the decision of a British court upholding the extradition of diamond mogul Nirav Modi for a loan fraud case involving Punjab National Bank.
Technology, Media and Telecommunications
With leading telecom companies investing billions of dollars in infrastructure, India is set to witness the largest 5G rollout in history.
The Supreme Court is set to hear a high-impact dispute between the Government and telecom service providers on one-time spectrum charge (OTSC) fees, which has been simmering away for over a decade.
International trade and commerce
The Ministry of Trade and Commerce has amended its foreign trade policy to allow settlement of international trade payments in Indian rupees.
Commerce Secretary Sunil Barthwal said that Indian trade service officers would now be engaged more actively in FTA negotiations, industry deliberations and policy-making going forward.
The Central Board of Indirect Taxes and Customs (CBIC) is in talks with various regulatory agencies for rollout of a single-window clearance system for faster clearance of exports consignments, which is expected to come in phases starting early next fiscal year.
Banking, Finance and Insurance
Finance Ministry releases the eighth monthly instalment of the Post Devolution Revenue Deficit (PDRD) grant of Rs 7,183.42 crore to fourteen states, totaling Rs 57,467.33 crore in FY 23.
National Payments Corporation introduces BHIM App open source license model, under which the source code of BHIM App will be licensed to regulated entities who do not have an UPI app of their own.
Centre mulling possible changes to the capital gains tax regime to make it simpler, including rationalisation of the multiple holding periods. Parity within asset classes will be a key consideration in the review.
Manufacturing
The Ministry of New and Renewable Energy identifies 10 potential states that could be the key enablers in manufacturing green hydrogen in the country.
The Uttar Pradesh Cabinet approves the state’s new industrial policy aimed at enhancing local manufacturing and attracting global investments.
Shri Piyush Goyal calls upon the country’s textile industry to self-regulate towards branding and certifying Indian cotton 'Kasturi’, stressing the need to introduce advanced technologies related to high-yielding cotton seeds and innovative agronomy, such as high-density planting systems, to enhance manufacturing.
Retail and e-commerce
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) will finalise the report it will present to the Central government on why it failed to contain the retail inflation within the target band of 2-6 per cent for three consecutive quarters.
Logistics and Infrastructure
The Department of Economic Affairs (DEA), Ministry of Finance, Government of India, notifies India Infrastructure Project Development Fund Scheme (IIPDF), a scheme for financial support for project development expenses of PPP Projects.
NITI Aayog is finalising a report on the technological and commercial feasibility for adoption of Hyperloop Technology in India by the end of November. The high-speed transportation system theoretically can travel in high-speed of about 1,200 km per hour.
Sustainability
Finance Ministry clears final framework for sovereign green bonds worth Rs. 16,000 crore to be issued in the second half of this financial year.
Indian Renewable Energy Development Agency Ltd (Ireda) eyeing status of a development financial institution (DFI) to access funds at lower rates to boost funding for India’s ambitious climate goals
Upcoming Events
Conference on National Logistics Policy
November 11 | The Oberoi, New Delhi
Warehousing Association of India is hosting a one-day conference on National Logistics Policy: The road ahead for integrated best in class infrastructure development on 11th November at The Oberoi, New Delhi. The event will see the launch of a report on ‘Ease of Doing Warehousing Business’ as well as five panels on decoding the National Logistics Policy from a warehousing perspective. Ms. Sumita Dawra, Special Secretary, Ministry of Commerce and Industry, will be the chief guest for the event. More Information | Registration Link
Informal Labor Markets in South Asia
November 14 | Carnegie India, New Delhi
Carnegie India is hosting a political economy seminar on “Informal Labor Markets in South Asia” on 14th November in a hybrid format. In their upcoming volume, on the same topic, World Bank Economists Maurizio Bussolo and Siddharth Sharma clarify that there are different types of informality, with different drivers and consequences. Using this approach, the papers in this volume revisit old questions about the relationship of informality to regulation and taxation, and pose new ones, such as how digital technologies and multi-faceted policy designs can improve prospects in the informal sector. The seminar will have Maurizio Bussolo and Siddharth Sharma present their volume and its findings, followed by a Q&A with the audience. More Information | Registration Link
17th FICCI Higher Education Summit 2022
November 17-19 | IG Stadium, New Delhi
FICCI is organising the 17th edition of Higher Education Summit and Exhibition 2022 on 17-19th November at Indira Gandhi Stadium Complex (IG Stadium), New Delhi. The theme for this years’ Summit is “Global Destination for Higher Education: Advantage India”. The summit brings together key stakeholders including policy makers, administrators, educationists, industry, and students for facilitating collaborations, deliberations, and knowledge sharing. Shri Dharmendra Pradhan, Minister for Entrepreneurship and Skill Development, and Shri Piyush Goyal, Minister for Commerce and Industry will be present at the summit. More Information | Registration Link
A Few Good Reads
AK Bhattacharya demonstrates that concerns of state profligacy in financial management are overstated.
The world is in the throes of a “polycrisis”, with the effects of various negative events and trends blending into one another. Adam Tooze explains.
Samir Saran explores the symbolism behind the logo of India’s G20 presidency, and how it ties into India’s vision for the world.
Much has been written about United States’ broadside against the Chinese semiconductor industry. Jordan Schneider compiles Chinese perspectives on the move.
Vivek Kaul examines whether the Indian economy can really be ‘decoupled’ from the global economy.
Tweets of the Week
Prime Minister Narendra Modi shares glimpses of Bengaluru’s stunning new airport terminal:
Sixty years after the India’s humiliating defeat at the hands of the Chinese, check out Tanvi Madan’s incredible thread, which digs into American presidential intelligence briefings to explore the story of the war:
Tragically, many Indian schools do not yet have functional toilets for girls. Check out this thread for more:
Key Notifications
Ministry of New and Renewable Energy notifies implementation of Phase I of National Bio Energy Programme, comprising of Waste to Energy Programme, Biomass Programme, and Biogas Programme to FY 2025-26.
Ministry of Power issues Amendment in Charging Infrastructure for Electric Vehicles (EV), recommends "time of the day rate " for service charges as well as the discount to be given for charging during solar hours.
Ministry of Environment, Forest and Climate Change notifies E-Waste (Management) Rules, 2022.
Central Electricity Regulatory Commission notifies CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022 to come in effect from 05.12.2022.