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 CONTENT
SEPTEMBER 2021 (1st WEEK)

Appointment of New Supreme Court Judges ____________________ 02-04

Leaded Petrol Eradicated in the World : UNEP __________________ 05-08

Ladakh adopts State Animal and Bird __________________________ 09-12

Export and Imports Trends-Exports rose 45% in August __________ 13-16

Peace Deal Inked to End Karbi Unrest __________________________ 17-19

1. Appointment of New Supreme Court Judges

Context
• Recently, a record 9 judges have taken oath as Supreme Court (SC) judges, taking the strength of
the court to 33.

Significance of the appointments

• It is for the first time that 9 judges (the biggest number ever) of the Supreme Court took the oath, at
one go.
• Also, the fact that 3 of the 9 new judges are women is also unprecedented. This takes the total
number of women judges in SC to 4.

Background

Appointment of SC judges
• Articles 124(2) and 217 of the Constitution provide for the appointment of judges to the Supreme
Court and High Courts respectively.
o Under these provisions, the President has the power to make the appointments to the higher
judiciary after consultation with such of the Judges of the Supreme Court and of the High
Courts as he/she may deem necessary.
• However, over the years, the word “consultation” has been the bone of contention between the
executive and the judiciary.
• In practice, the executive (through the President) held the power of appointing judges since
Independence, and a convention of appointing the senior-most judge as the Chief Justice of India
(CJI) was evolved.
• A series of Supreme Court cases in the 1980s, however, changed this position. Through these cases,
the judiciary essentially impounded the power of appointment to itself.

SC cases on the appointment of judges

• The scuffle between the judiciary and the executive over judges’ appointment began following the
Indira Gandhi-led government’s move to supersede three senior judges and appoint Justice A N
Ray as the CJI in 1973.
• In the following Judges Cases - in 1981, 1993 and 1998, the Supreme Court evolved the collegium
system for appointing judges, in effect, taking complete control over the appointments.
o First judges case:
In the First Judges Case or the S P Gupta v Union of India (1981), the Supreme Court ruled that
the President does not require the “concurrence” of the CJI in the appointment of judges.
o Second judgeS case:
In the Supreme Court Advocates-on-Record Association v Union of India (1993) or the Second
judges cases, a 9-judge Constitution Bench evolved the ‘collegium system’ for appointment and
transfer of judges in the higher judiciary.
▪ SC held that “consultation” really meant “concurrence” and that it was not the CJI's
individual opinion alone that counted, but an institutional opinion formed by him/her in
consultation with two more senior-most judges in the SC.
▪ The court underlined that this system was put in place to guard the independence of the
judiciary from the executive and protect its integrity.
o Third judges case:
President K R Narayanan, in 1998, issued a Presidential Reference to the Supreme Court over
the meaning of the term “consultation” to clarify whether it required “consultation” with a
number of SC judges in forming the CJI’s opinion, or whether the CJI’s sole opinion could by
itself mean “consultation”.
▪ The court opined that ‘consultation’ means ‘consultation of the plurality of judges’ wherein
the CJI must consult 4 senior-most judges in the SC. Further, it opined that even if two judges
in the collegium give an adverse opinion, CJI must not send the recommendation to the
President.
 Issue due to delays in Judicial Appointment:
• Sanctioned Strength:
o Of the total sanctioned strength of 1,080 of 25 High Courts, they have been functioning with
only 661 judges, leaving 419 vacancies (nearly 40%) as of March 1, 2021.
o Five High Courts alone account for 54% of these cases.
o The number of vacancies in five leading High Courts are- Patna (60.4%), Calcutta (55.6%),
Rajasthan (54%), MP (49.1%) and AP (48.6 %).
• Pendency of Cases:
o The pending cases in the subordinate judiciary has increased from 2.92 crore in December
2018 to 3.72 crore at the end of January 2021.
o The backlog of cases 30 or more years old has increased by 61% in the past two years (till
January 2021).
• Distorts image of Judiciary: Long, sometimes calculated and motivated, delays by the
government in filling the vacancies on the Bench are bound to negatively affect the health and
image of the judiciary in the eyes of the public.
• Cumbersome Process: There are inordinate delays in the appointment of High Court judges and
depleting numbers in the higher judiciary threaten to affect the justice delivery mechanism.

NJAC (National Judicial Appointments Commission) - 2014

• In 2014, the NDA government attempted to provide a greater say for the executive in the judicial
appointments by establishing the National Judicial Appointments Commission through the 99th
Constitutional Amendment Act.
• Although the law had support across political parties, the Supreme Court in 2015 struck it down
as unconstitutional citing the independence of the judiciary as part of the basic structure of the
Constitution.
• The court also called for a Memorandum of Procedure (MoP) - an agreement between the judiciary
and the government to improve the working of the Collegium system.
o The MoP would contain a set of guidelines for making appointments of the judges to the
Supreme Court and High Court.
• However, the MoP is stuck in limbo due to the lack of agreement between the Centre and the SC
on certain crucial clauses including:
o On the government's power to override the recommendations on grounds of national security
and overriding public interest.
o On creating a secretariat for vetting and clearing names of judges for the appointment.
o On forming a committee of judges who were not part of the collegium to screen complaints
against the sitting judges etc.
Thus, the collegium system wherein a group of senior Supreme Court judges headed by the CJI would
make recommendations to the President on who should be appointed as a judge to the higher courts is
still being followed to date.
Strength of the SC
• In 1950 SC had 8 judges including the CJI.
• Parliament, which has the power to increase the number of judges, has gradually increased the
number by amending the Supreme Court (Number of Judges) Act - from 8 in 1950 to 34 in 2019.
• Currently, the Supreme Court has a sanctioned strength of 34 judges including the CJI.
• However, even with the recent 9 appointments, the SC continues to have one vacancy while 8 more
judges are due to retire next year.

Conclusion
The appointment of the new SC judges is a welcome move that will go a long way in expediting the
delivery of justice. However, the judiciary and the government must resolve their differences soon to
arrive at an appropriate Memorandum of Procedure that is transparent, accountable as well as time-
bound so that a long-term solution is arrived at.

Q1. Consider the following statements:

1. Article 124 (2) of the Constitution provides for the President to consult with such of the Judges
of the Supreme Court and of the High Courts as he/she may deem necessary for appointing
judges to the Supreme court.
2. In the S P Gupta v Union of India case, the Supreme Court ruled that ‘consultation’ really meant
“concurrence” of the Chief justice of India while appointing judges of the Supreme Court.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (a)

Explanation:

Statement 1 is correct: Article 124 (2) of the Constitution provides that every Judge of the Supreme
Court shall be appointed by the President by warrant under his hand and seal after consultation
with such of the Judges of the Supreme Court and of the High Courts in the States as the President
may deem necessary for the purpose.

Statement 2 is incorrect: In the Supreme Court Advocates-on-Record Association v Union of

India (1993) or the Second judges cases SC held that “consultation” really meant “concurrence”
and that it was not the CJI's individual opinion alone that counted, but an institutional opinion
formed by him/her in consultation with two more senior-most judges in the SC.

Q2. Trace the evolution of the process of appointment of Supreme Court (SC) judges in India since
independence and critically analyse the collegium system adopted by the SC for the same.
(250 Words, 15 Marks)
2. Leaded Petrol Eradicated in the World: UNEP

Context
• The use of leaded petrol ended globally when service stations in Algeria recently stopped
providing leaded petrol.

Timeline of usage of leaded petrol

• Tetraethyl lead has been used as a petrol additive since 1922 to improve engine performance.

Leaded petrol
• Tetraethyl lead boosts the octane rating of petrol (better anti-knock property) and allows higher
engine compression ratios. It Improves vehicle performance.
• However, it poisons catalytic converters and is a major cause of spark plug fouling.

• By the 1970s, lead was present in almost all petrol produced around the world.
• Most high-income countries had stopped the use of leaded petrol by the 1980s.
• However even as late as 2002, when UNEP launched its campaign to end the use of leaded petrol,
almost all middle and low-income countries, including some member countries of OECD
(Organisation for Economic Co-operation and Development), were still using leaded petrol.
Note: By 2002 even China and India had stopped using the leaded petrol.
• After contaminating air, dust, soil, drinking water and food crops for the better part of a century,
2021 has finally marked the end of leaded petrol worldwide.
o This achievement follows an almost two-decade-long campaign by the UNEP (United Nations
Environmental Programme)-led global Partnership for Clean Fuels and Vehicles (PCFV) to end
the use of leaded petrol.

Partnership for Clean Fuels and Vehicles (PCFV)

• The PCFV is a public-private partnership that brought all stakeholders together and provided
technical assistance, raised awareness, overcame local challenges and resistance from local oil
dealers and producers of lead, as well as invested in refinery upgrades.
• Established at the World Summit on Sustainable Development in 2002, the PCFV is aimed at
achieving cleaner air and lower greenhouse gas emissions from road transport mainly in
developing countries and countries in transition.
• The Secretariat for PCFV is located in Nairobi, Kenya.

UNEP
• The United Nations Environment Programme (UNEP) is a global environmental authority that
promotes the coherent implementation of the environmental dimension of sustainable
development within the United Nations system
• It sets the global environmental agenda and serves as an authoritative advocate for the global
environment.
• It is headquartered in Nairobi, Kenya.

What does UNEP do?

• UNEP works in seven broad thematic areas: disasters and conflicts, climate change, ecosystem
management, chemicals and waste, environmental governance, resource efficiency, and the
environment under review.
• It also hosts the secretariats of many important multilateral environmental agreements
including:
o The Convention on Biological Diversity
o The Convention on International Trade in Endangered Species of Wild Fauna and Flora
o The Minamata Convention on Mercury
o The Basel, Rotterdam and Stockholm Conventions
 o The Vienna Convention for the Protection of Ozone Layer and the Montreal Protocol
o The Convention on Migratory Species
o The Carpathian Convention
o The Bamako Convention
o The Tehran Convention

Benefits of elimination of leaded petrol

• Preventing premature deaths: Leaded petrol causes stroke, heart ailments and also cancer. It is
estimated that banning the use of leaded petrol can prevent more than 1.2 million premature deaths
per year.
• Increase in IQ: Leaded petrol also adversely affects the development of the human brain, especially
in children. Studies suggest that it reduces about 5-10 IQ points. The global ban will now increase
IQ points among children.
• Improved economy: The move will also save about USD 2.45 trillion for the global economy through
the benefits of better health and lower medical costs.
• Decrease in crime rates: The move is also slated to decrease crime rates as higher crime rates have
previously been linked to exposure to leaded fuel.
• SDG realisation: The end of leaded petrol is expected to support the realization of multiple
Sustainable Development Goals, including
o Good health and well-being (SDG 3)
o Clean water (SDG 6)
o Clean energy (SDG 7)
o Sustainable cities (SDG 11)
o Climate action (SDG 13)
o Life on land (SDG 15).
• Restoring ecosystems: The move will also help in restoring ecosystems, especially in urban
environments that have been particularly affected by this toxic pollutant.
• A major milestone: The phasing out of leaded petrol marks major progress ahead of this year’s
International Day of Clean Air for blue skies on the 7th of September.
Challenges still persisting due to lead:
• The lead from petrol used in the past has settled in the soil and dust, and still contributes to
poisoning children today.
• According to UNICEF, around one in three children have lead levels in excess of the 5 micrograms
per deciliter (µg/dL).
• Other lead sources:
o Though we have eliminated the largest source of lead pollution, immediate action is still needed
to prevent lead pollution from other sources including paints, leaded batteries, and household
items.

Challenges to Overcome in terms of Vehicular Air Pollution

• Growing vehicle fleet: The fast-growing global vehicle fleet around the world not only continues
to contribute to the threat of air, water and soil pollution but also to the global climate crisis.
o The transport sector alone is responsible for nearly 25% of energy-related global greenhouse
gas emissions and is set to grow to 33% by 2050.
• Continued use of fossil fuels:
o Even though many countries have already started moving towards electric cars, many of the
nearly 1.2 billion new vehicles that will hit the road in developing countries in the coming
decades will use fossil fuels.
• Poor quality used vehicles:
o Continued export of millions of poor-quality used vehicles from Europe, the United States
and Japan, to mid and low-income countries will contribute to planet-warming and air
pollution and accidents.

Conclusion
The elimination of leaded petrol calls for a celebration of the end of one toxic era. However, the task is
far from over and the global community must unite together to successfully overcome the remaining
challenges to health and the environment from the fossil fuel economy.
Q1. With reference to Partnership for Clean Fuels and Vehicles (PCFV), consider the following
statements:
1. It is an intergovernmental treaty aimed at achieving cleaner air and lower greenhouse gas
emissions.
2. It was established at World Summit on Sustainable Development in 2002.
3. Its secretariat is located in Nairobi, Kenya.
Which of the above statements is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (b)

Explanation:

Statement 1 is incorrect: Partnership for Clean Fuels and Vehicles (PCFV) is a public-private
partnership involving governments, industry bodies and other organisations and not an
intergovernmental treaty. It is aimed at achieving cleaner air and lower greenhouse gas emissions
from road transport mainly in developing countries and countries in transition.

Statement 2 is correct: PCFV was established at World Summit on Sustainable Development in

2002.

Statement 3 is correct: The PCFV Secretariat is located at the United Nations Environment
Programme (UNEP) headquarters in Nairobi, Kenya.

Q2. What is leaded petrol? Discuss the possible impacts of global elimination of the use of leaded petrol
on health, economy and environment.
(150 Words, 10 Marks)
3. Ladakh adopts State Animal and Bird

Context
• Ladakh has recently adopted Snow leopard and Black-necked crane as State animal and State bird
respectively.

Details of the development

• As per an order issued by the Lieutenant Governor (LG) of Ladakh the snow leopard (Panthera
uncia) and black-necked crane (Grus nigricollis) shall be the State animal and State bird respectively
of the Union Territory (UT) of Ladakh.
• A notification for this was issued by the Principal Secretary - Forest, ecology and environment of
the UT of Ladakh.
• The move comes two years after Ladakh was carved out as a separate Union Territory (UT) from
the erstwhile State of J&K.

State animal/bird
• Most of India’s 28 states and 8 Union Territories have a State Animal, State Bird, State Flower and
State Tree. There is also the category of ‘State Aquatic Animal’ - Indus River Dolphin for Punjab.
• These are chosen to represent the culture and the natural wonders of that particular State/UT from
among the unique flora and fauna of that State/UT.
• It was in the 1970s that the practice of choosing a particular animal or a bird as an emblem of the
state was started. The idea behind this being, declaring certain animals or birds that were endemic
to certain parts of the country, as state emblems would garner special attention for them. People of
the state would also develop a sense of pride in that species as a part of their natural heritage. As
more and more people take pride in that species, it contributes more to its conservation.
o For instance, when the Sangai or brow-antlered deer of Manipur was declared the state animal
in 1975, there were only 14 individuals of the species left. However, after the declaration, people
started to own the species and today, it is an icon of Manipur. As of recent count, there were 200
individuals of Sangai

Snow leopard - Panthera Uncia

Image: Snow leopard

Source: independent.co.uk
• Spread: Snow leopard is a big cat in the genus Panthera ( Panthera Uncia) native to the mountain
ranges of Central and South Asia. In India, the snow leopards are found in Jammu and Kashmir,
Ladakh, Sikkim, Uttarakhand, and Arunachal Pradesh.
• Notable protected areas in India where Snow leopards are Found:
o Hemis National Park, Ladakh
o Gangotri National Park, Uttarakhand
o Khangchendzonga National park Sikkim
o Great Himalayan National Park, Kullu, Himachal Pradesh
o Namdapha National Park and Kamlang Wildlife Sanctuary in Arunachal Pradesh.
• Status: The snow leopard is a Schedule I animal under the Wildlife Protection Act, 1972 of India.
Being in Schedule 1 means it is a high priority species for conservation. Its numbers are dwindling
worldwide and it has been categorised as “vulnerable” in the International Union for
Conservation of Nature (IUCN) Red List.
• Population: The population of snow leopards is between 200-300 in Ladakh.
• Diet: In the Ladakh region, snow leopards prey on marmots, bharal (blue sheep), and ibex.
• Threats: Hunting, habitat loss and retaliatory killings are the main reasons this big cat is under
threat.
• Significance: Snow leopards play a key role in the habitat as top predators. They are also an
indicator of the health of their high-altitude habitat.
• Conservation: The Central Government has a centrally-supported programme known as Project
Snow Leopard for the conservation of the species and its habitats.
• The erstwhile Jammu and Kashmir State had the Kashmir stag (Hangul) as its animal. However,
since Hangul are not found in Ladakh, it has adopted Snow leopard as its state animal.

Black-necked crane - Grus nigricollis

Image: Black-necked crane

Source: Times of India
• Spread: Black-necked crane was the State bird of the erstwhile J&K state. The high altitude
wetlands and marshes in the eastern Ladakh (Changthang region) are the known breeding
grounds for Black-necked cranes in India. A small wintering population of Black-necked cranes
is also found in the Sangti and Zimithang valleys of Arunachal Pradesh in India. This species is
also found in China and Bhutan.
• Status: It is listed in Schedule I of Wildlife (Protection) Act 1972 and as Near-Threatened on the
IUCN Red List
• Population: The estimated population of the bird in Ladakh is between 80-100. Its global
population is estimated at around 6,000 individuals.
• Threats: The major threat to the survival of black-necked cranes is the damage to the eggs and
chicks by feral dogs. Another threat is the loss of habitat due to the human pressure on the
wetlands.
• Significance: The Black-necked crane is revered by Monpas (a major tribe of Arunachal Pradesh
following Tibetan Buddhism) who consider the bird as an embodiment of the 6th Dalai Lama.

IUCN - International Union for Conservation of Nature

• IUCN is a Union composed of members from both government and civil society organisations.
• It is aimed at conserving nature and accelerating the transition to sustainable development. It is
also a global authority on the status of the natural world and the actions needed to safeguard it.
• IUCN convenes the IUCN World Conservation Congress every 4 years where IUCN Members
set the global conservation agenda and guide the IUCN Secretariat’s work by passing resolutions.
• The IUCN Council is the primary governing body of IUCN between sessions of the Conservation
Congress.

IUCN Red List

• The Red List of Threatened Species by IUCN is the most comprehensive inventory of the
conservation status of plant and animal species across the globe.
• The Red List is considered the most authoritative guide to the status of biological diversity due
to its strong scientific base.
• The IUCN Red List threat categories, in descending order of threat, are as follows:
o Extinct or Extinct in the Wild
o Threatened: Critically Endangered, Endangered and Vulnerable.
o Near Threatened: Species that would be threatened without suitable conservation measures.
o Least Concern: Species with a lower risk of extinction.
o Data Deficient: No assessment of the species due to insufficient data.

Image: IUCN Red List

Source: iucn.org

Significance of the list

• Data from the IUCN Red List is used to measure the progress of the United Nations Sustainable
Development Goals (SDG), especially Goal 15: Life on Land.
• The Red List is also used by the Convention on Biological Diversity (CBD) to monitor progress
towards achieving the Aichi Targets.
 Other Conservation Efforts:

Himal Sanrakshak: It is a community volunteer programme that was launched by the Government on
International Snow Leopard Day, on 23rd October 2020 to protect snow leopards.

Secure Himalaya:
• This project is a part of “Global Partnership on Wildlife Conservation and Crime Prevention for
Sustainable Development” (Global Wildlife Program) funded by the Global Environment Facility
(GEF). World bank Manages GEF.
• Aim: To promote sustainable management of alpine pastures and forests in the Himalayan
ecosystems in order to
o secure conservation of globally significant wildlife, including endangered snow leopard and their
habitats
o to ensure sustainable livelihoods and socio-economic benefits for communities in the selected high
altitude landscapes in the Trans- and Greater Himalayan regions.
• It contributes to the Global Snow Leopard Ecosystem Protection Program (GSLEP)

Global Snow Leopard Ecosystem Protection Program (GSLEP): It is a joint initiative of 12 range country
governments, international agencies, civil society, and the private sector.

Project snow leopard: Government of India to conserve the snow leopards launched Project Snow
Leopard (PSL) in 2009.

Q1. With reference to Black-necked cranes, recently in the news, consider the following statements:
1. A small breeding population of these cranes is found in the Sangti and Zimithang valleys of
Arunachal Pradesh in India.
2. It is categorised as vulnerable as per the IUCN (International Union for Conservation of Nature)
Red List.
3. It is threatened due to the traditional hunting by the Monpa tribe of Arunachal Pradesh.
Which of the above statements is/are incorrect?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 only
(d) 1,2 and 3

Answer: (d)

Explanation:

Statement 1 is incorrect: A small wintering population of these cranes is found in the Sangti and
Zimithang valleys of Arunachal Pradesh in India. The breeding population in India is found in the
Ladakh region.

Statement 2 is incorrect: It is categorised as near-threatened as per the IUCN (International Union

for Conservation of Nature) Red List.

Statement 3 is incorrect: The bird is revered by the Monpa tribe as the embodiment of the 6th
Dalai Lama. It is not hunted by them.

Q2. "Snow leopards are top predators in the Himalayan region and without them, the ecological
balance of the region would be disrupted". In this context, discuss the threats and measures taken
by the Government of India to conserve them.
(150 Words, 10 Marks)
4. Export and Imports Trends-Exports rose 45% in August

Context
• The Ministry of Commerce and Industry has recently released the preliminary data for India’s
merchandise trade for August 2021.

Details of the report

Merchandise trade
• In August 2021, India’s merchandise exports stood at $33.14 billion - 45.17% higher than in August
2020 and 27.5% more than the pre-pandemic level of August 2019.
o A steady recovery in global trade has led to an increase in exports.
o The rise in exports was due to healthy growth in sectors like engineering, gems and jewellery,
petroleum products and chemicals.
• Merchandise imports, on the other hand, grew 51.47% in August 2021 to reach $47 billion - 18%
higher than August 2019.
• The government has set a target of merchandise exports worth $400 billion for the year 2021.

Major commodity goods exports

• Engineering goods export rose by 58.8% over the last year to reach $9.6 billion.
• Cotton yarn, fabrics and handloom products rose by 55.6% to about $1.3 billion.
• Electronics goods exports rose by 31.5% during the same period to hit $1.15 billion.
• The readymade garments sector recorded a growth of 14% to hit $1.23 billion.
• Exports of petroleum products rose by about 140 percent to USD 4.55 billion, while that of gems
and jewellery and chemicals rose by 88 percent to USD 3.43 billion, and 35.75 percent to USD 2.23
billion, respectively.
• The top 10 major commodity groups, covering more than 80% of total exports from India, have
shown positive growth in August 2021 as compared to the same month in 2020.
Oil imports
• Oil imports in August 2021 rose 80.38 percent to USD 11.64 billion over the previous year.
Gold imports
• Gold imports have surged to $6.7 billion in August 2021. In August 2020, gold imports stood at
$3.7 billion, implying an 82.22% jump in imports.
o Gold imports were responsible for 88% of the rise in the merchandise trade deficit relative to
July 2021.
o Gold imports may further touch $40 billion in 2021-22 unless a weaker agricultural outlook
restrains demand.

Figure: Export growth (in red) in India annually

Source: preliminary data for India’s merchandise trade for August 2021.
Export of Top 5 major commodity groups

Sl. no. Major commodity group % Share

1 Engineering Goods 29.06

2 Petroleum Products 13.76

3 Gems And Jewellery 10.34

4 Organic And Inorganic Chemicals 6.73

5 Drugs And Pharmaceuticals 6.04

Source: preliminary data for India’s merchandise trade for August 2021.

Sl. no. Major commodity group % Share

1 Petroleum, Crude & products 24.76

2 Gold 14.35

3 Electronic goods 12.57

4 Machinery, electrical & non-electrical 6.20

5 Pearls, precious & Semi-precious stones 4.77

Source: Preliminary data for India’s merchandise trade for August 2021.
Trade deficit
• The trade deficit widened 69.15% year on year to touch $13.87 billion in Aug 2021 as compared to
USD 8.2 billion in Aug 2020.
• However, it is only 0.07% more than the pre-COVID level of 2019.
• The trade deficit was mainly driven by a sharp rise in gold imports.

Why the Boom in Exports?

• A sharp rise in Global demand for goods and services is seen in 2021 as global markets and global
trade activities are rebounding.
• A sharp spike in petroleum products exports boosted the overall exports levels for goods to a record
high level in July 2021.
• Last year after Covid first Wave Government under Atmanirbhar Bharat package announced a slew
of market reforms and incentivisation schemes like Production Linked Incentive Scheme (PLI) for
different sectors which incentivised incremental domestic production by companies.

How Exports help the Economy?

• Exports help a nation to create domestic jobs, infrastructure, demand and GDP.
• Higher exports suggest higher economic dynamism and capacity which attracts further investments
from global funds and investors.
• Exports strengthen forex reserves which add to macroeconomic stability and help a nation to
increase its credit-worthiness and consequently avail cheaper loans from World
• Exports increase National Income and per capita income rapidly.
• Large numbers of small business owners and corporate firms get access to a bigger global market.
• Higher exports also help to generate employment opportunities leading to Higher revenue for the
Government via Tax and overall growth of per capita GDP.
EXPORT-IMPORT BALANCE
• A healthy export-Import balance is crucial to meet domestic demand and generate profit from extra
goods and activities a country is good at producing.
• Global trade is a global good since it lowers the overall cost for everyone ( Comparative advantage
theory) and provides a variety of products and services to consumers thus increasing Global
standard of life.
• When a country’s imports exceed its exports, trade deficit rises which leads to currency devaluation
which can lead to hyperinflation like situations.
• When the exports exceed imports, Global funds start to flow inwards creating a virtuous cycle of
more exports-more income-more saving-more investment-more production-more exports.

Conclusion
The continuous growth in exports since augurs well for the economy. However, the government must
take proactive steps to ensure that this growth reflects into the economic growth of the country.

Q1. With reference to the merchandise trade of India in August 2021, consider the following
statements:
1. Engineering goods comprised more than a quarter of Indian exports by value.
2. Electronic goods have a higher share in India’s import basket as compared to Pearls, precious
& Semi-precious stones.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (c)

Explanation:

Statement 1 is correct: In August 2021, Engineering goods comprised more than a quarter (29.06%)
of Indian exports by value.

Statement 2 is correct: Electronic goods have a higher share (12.57%) in India’s import basket as
compared to Pearls, precious & Semi-precious stones (4.77%).

Q2. Analysing the major trends in India’s recent merchandise trade, discuss the measures that need to
be taken to achieve the merchandise export target of the Government of India for the year 2021.
(150 Words, 10 Marks)
5. Peace Deal Inked to End Karbi Unrest

Context:
A tripartite agreement has been signed between five insurgent groups of Assam, the Central
Government and the State government to end years of violence and bloodshed in the Karbi Anglong
region.

Details and Significance of the Signed Agreement:

• The agreement is called the ‘Karbi Anglong Agreement’.
• The agreement was signed by a delegation of six Karbi group members that include the Karbi
People's Liberation Tigers (R), Karbi Longri North Cachar Hills Liberation Front, Karbi People's
Liberation Tigers (Ceasefire) and People's Democratic Council of Karbi Longri.
• It is a tripartite Agreement marking the end of a decades-old crisis in the region. It would ensure
territorial integrity of Assam.
• Under the agreement, more than 1,000 armed cadres have abjured violence and have decided to
join the mainstream. The peace accord would provide for their rehabilitation.
• Under the agreement, the Centre would provide for a special development package of ₹1,000 crore
over the next five years. This package would enable the Assam government to undertake specific
projects for the development of Karbi areas.
• The memorandum of settlement would ensure greater devolution of autonomy to the Karbi
Anglong Autonomous Council (KAAC).
o The Assam government would set up a Karbi Welfare Council for focused development of Karbi
people living outside the KAAC area.
o The consolidated fund of the State would be augmented in order to supplement the resources
of KAAC.
o The present peace settlement proposes to provide more legislative, executive, administrative
and financial powers to KAAC.
o It would also enable the protection of identity, language and culture of the Karbi people and
focus on the development of the Council area, without disturbing the territorial and
administrative integrity of Assam.
o It has also been proposed to notify Karbi as the official language of KAAC. English, Hindi and
Assamese would continue to be used for official purposes.
• The agreement proposes the system of reservation for the hill tribes.

Karbi Anglong Region

• The Karbi Anglong District is situated in the central part of Assam.
• It is bounded by the state of Nagaland and Golaghat district in the east, Hojai district in the west,
Golaghat and Nagaon district in the north and Dima Hasao district and Nagaland in the south.
• The district is known for its dense tropical forest-covered hills and flat plains.
 Figure: Map Location of Karbi Anglong
Source: Maps of India

Karbi People:
• Karbis is a major ethnic community living in Assam.
• At present, the community is splintered into various groups and factions.
• Originally, they are one of Northeast India’s tribal groups, largely inhabiting the Karbi Anglong
and Dima Hasao (formerly North Cachar) hills districts.

Background:
• The insurgency by Karbi people has had a long history in Assam.
• The history of Assam, especially in the Karbi Anglong region has been marked by killings, ethnic
violence, abductions and taxation since the late 1980s.
• The first insurgency in Assam was started by the United Liberation Front of Asom (ULFA) in 1979.
• Later, during the 1980s came the Bodoland Movement led by the National Democratic Front of
Bodoland (NDFB). The Bodoland movement sought to create an independent home for the Bodos
(these are the largest ethnic group among the plain tribes of Assam).
o Assam is thus known for its historic Bodo peace accord, which was signed to bring an end to the
long-run violence in Bodoland. The Bodo Peace Accord was first signed in 2003 and then
extended in 2020.
▪ The Bodoland region is also an autonomous territorial region administered by the elected
body called the Bodoland Territorial Council.
• As these outfits proceeded with their own motives and goals, various other groups emerged to
pursue their own goals and interests in the region.
• Apart from ULFA and NDFB, other insurgent movements initiated by the Karbi and Dimasa tribes
also demanded their respective homelands.
• In the late 1990s, two ethnic groups- the Karbi National Volunteers (KNV) and Karbi People's
Force (KPF) had come together to establish the United People's Democratic Solidarity (UPDS). In
November 2011, the organisation decided to give up arms. It signed a tripartite memorandum of
settlement with the Centre and the Assam government, demanding enhanced autonomy and special
packages for the Karbi Anglong Autonomous Council (KAAC).
o The Karbi Anglong Autonomous Council (KAAC) is an autonomous district council, which
derives its powers from the Sixth Schedule of the Indian Constitution.
 Why did Insurgency Break Out in Karbi Anglong District?
• Karbi-Anglong in Assam is its largest district in terms of area and is home predominantly to a
tribal and ethnic population comprising members of Karbi, Bodo, Kuki, Dimasa, Hmar, Garo,
Rengma Naga, Tiwa, and Man communities.
• Karbis form more than 46 percent of the district’s population of close to 10 lakh people according
to the 2011 Census.
• The region is home to a multiplicity of ethnicities hence the armed outfits arose that aimed at
challenging the Indian state as well as protecting the group interests and identities.
• Turbulence in the region has not just been caused by the armed separatist groups fighting the
central or local governments but also by the recurring battles to gain territorial supremacy among
various ethnic groups themselves.

Protests against the Karbi Anglong Peace Agreement:

• More than 24 outfits representing the indigenous and ethnic groups in the Karbi Anglong region
have come out in protest against the agreement.
• The protestors are stuck on their demand of an ‘autonomous state’ under the provisions of Article
244(A) of the Indian Constitution.
o Article 244(A) was inserted by the 26th Amendment Act, 1969.
o It provides for the creation of an ‘autonomous state’ within Assam out of tribal areas.
o It is different from the Sixth Schedule of the constitution in the sense that the former provides
for greater power for the council including creation of legislature and council of ministers.
• The protestors are against the 10 reserved seats for any other community. According to them, all
constituencies in KAAC should have been reserved for the tribals living in Karbi Anglong.

Conclusion:
The Karbi Anglong Agreement is a positive step forward towards achieving a peaceful and developed
north east. However, effective steps like managing the protests, instilling faith among the ethnic
communities and proactive implementation of the Karbi Anglong agreement would help to bring
lasting peace and all round development in the Karbi Anglong region.

Q1. With respect to the Karbi Anglong region, consider the following statements:
1. It is located in the northeastern part of Assam.
2. The district is known for its dense tropical forest-covered hills and flat plains.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (b)

Explanation:

Statement 1 is incorrect: The Karbi Anglong district is located in the central part of Assam (not in
the northeastern part).

Statement 2 is correct: The district is covered with dense tropical forests which cover both the hills
and the plain areas in the region.

Q2. In the light of the recently signed Karbi Anglong Agreement, discuss the causes and initiatives
taken by the government to resolve the insurgency issues in the North East regions.
(150 Words, 10 Marks)
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