Daily News Simplified - DNS

28 06 21
Notes
SL. THE HINDU
TOPICS
NO. PAGE NO.

SC gives breather to Sena rebels Page 01 When defection is a mere

1 08
detour for an MLA

2 States, freebies and the costs of fiscal profligacy 06

3 India, EU resume FTA negotiations 12

4 Modi’s two summits: UAE trumps G7 07

5 India’s gig workforce to reach 2.35 cr. by 2030’ 01

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1. UPSC Current Affairs: SC gives breather to Sena rebels Page 01 When defection is a mere detour for an MLA – Pg.08
| Page - 11
UPSC Syllabus: Mains – GS Paper II- Polity & Governance
Sub Theme: Anti Defection|UPSC

What is the anti-defection law?

Aaya Ram Gaya Ram was a phrase that became popular in Indian politics after a Haryana MLA
Gaya Lal changed his party thrice within the same day in 1967. The anti-defection law sought to
prevent such political defections which may be due to reward of office or other similar
considerations.[3]

The Tenth Schedule was inserted in the Constitution in 1985. It lays down the process by which
legislators may be disqualified on grounds of defection by the Presiding Officer of a legislature
based on a petition by any other member of the House. A legislator is deemed to have defected if
he either voluntarily gives up the membership of his party or disobeys the directives of the party
leadership on a vote. This implies that a legislator defying (abstaining or voting against) the party
whip on any issue can lose his membership of the House. The law applies to both Parliament
and state assemblies.

Are there any exceptions under the law?

Yes, legislators may change their party without the risk of disqualification in certain
circumstances. The law allows a party to merge with or into another party provided that at least
two-thirds of its legislators are in favour of the merger. In such a scenario, neither the members
who decide to merge, nor the ones who stay with the original party will face disqualification.

Various expert committees have recommended that rather than the Presiding Officer, the
decision to disqualify a member should be made by the President (in case of MPs) or the
Governor (in case of MLAs) on the advice of the Election Commission.[4] This would be similar
to the process followed for disqualification in case the person holds an office of profit (i.e. the
person holds an office under the central or state government which carries a remuneration, and
has not been excluded in a list made by the legislature).

How has the law been interpreted by the Courts while deciding on related matters?
The Supreme Court has interpreted different provisions of the law. We discuss some of these
below.

The phrase ‘Voluntarily gives up his membership’ has a wider connotation than resignation
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The law provides for a member to be disqualified if he ‘voluntarily gives up his membership’.
However, the Supreme Court has interpreted that in the absence of a formal resignation by the
member, the giving up of membership can be inferred by his conduct.[5] In other judgments,
members who have publicly expressed opposition to their party or support for another party
were deemed to have resigned.

In the case of the two JD(U) MPs who were disqualified from Rajya Sabha on Monday, they were
deemed to have ‘voluntarily given up their membership’ by engaging in anti-party activities
which included criticizing the party on public forums on multiple occasions, and attending
rallies organised by opposition parties in Bihar.

Decision of the Presiding Officer is subject to judicial review

The law initially stated that the decision of the Presiding Officer is not subject to judicial review.
This condition was struck down by the Supreme Court in 1992, thereby allowing appeals against
the Presiding Officer’s decision in the High Court and Supreme Court.[8] However, it held that
there may not be any judicial intervention until the Presiding Officer gives his order.

In 2015, the Hyderabad High Court, refused to intervene after hearing a petition which alleged
that there had been delay by the Telangana Assembly Speaker in acting against a member under
the anti-defection law.

Is there a time limit within which the Presiding Officer has to decide?
The law does not specify a time-period for the Presiding Officer to decide on a disqualification
plea. Given that courts can intervene only after the Presiding Officer has decided on the matter,
the petitioner seeking disqualification has no option but to wait for this decision to be made.

There have been several cases where the Courts have expressed concern about the unnecessary
delay in deciding such petitions.[10] In some cases this delay in decision making has resulted in
members, who have defected from their parties, continuing to be members of the House. There
have also been instances where opposition members have been appointed ministers in the
government while still retaining the membership of their original parties in the legislature.[11]

In recent years, opposition MLAs in some states, such as Andhra Pradesh and Telangana, have
broken away in small groups gradually to join the ruling party. In some of these cases, more than
2/3rd of the opposition has defected to the ruling party.

In these scenarios, the MLAs were subject to disqualification while defecting to the ruling party
in smaller groups. However, it is not clear if they will still face disqualification if the Presiding
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Officer makes a decision after more than 2/3rd of the opposition has defected to the ruling party.
The Telangana Speaker in March 2016 allowed the merger of the TDP Legislature Party in
Telangana with the ruling TRS, citing that in total, 80% of the TDP MLAs (12 out of 15) had
joined the TRS at the time of taking the decision.[12]

In Andhra Pradesh, legislators of the main opposition party recently boycotted the entire 12-day
assembly session. This boycott was in protest against the delay of over 18 months in action
being taken against legislators of their party who have allegedly defected to the ruling
party.[13] The Vice President, in his recent order disqualifying two JD(U) members stated that
all such petitions should be decided by the Presiding Officers within a period of around three
months.

Does the anti-defection law affect the ability of legislators to make decisions?
The anti-defection law seeks to provide a stable government by ensuring the legislators do not
switch sides. However, this law also restricts a legislator from voting in line with his conscience,
judgement and interests of his electorate. Such a situation impedes the oversight function of the
legislature over the government, by ensuring that members vote based on the decisions taken by
the party leadership, and not what their constituents would like them to vote for.

Political parties issue a direction to MPs on how to vote on most issues, irrespective of the
nature of the issue. Several experts have suggested that the law should be valid only for those
votes that determine the stability of the government (passage of the annual budget or no-
confidence motions)
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2. UPSC Current Affairs: States, freebies and the costs of fiscal profligacy | Page 06

UPSC Syllabus: Mains – GS Paper II – Polity & Governance

Sub Theme: Freebies | UPSC

Freebies Politics in India

Political parties promise to offer free electricity/water supply, monthly allowance to unemployed,
daily wage workers and women as well as gadgets like laptops, smartphones etc. in order to secure the
vote of the people.
The states have become habituated to giving freebies, be it in the form of loan waivers or free
electricity, cycles, laptops, TV sets and so on.
Certain kinds of expenditure that are done under populist pressures or with elections in mind may be
questionable.
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But given that in the last 30 years there has been rising inequality, some kind of relief to the
population in the form of subsidies may not be unjustified but actually necessary for the economy to
continue on its growth path.
Advantages of Freebies

Facilitates Growth: There are some examples which show that some expenditure outlays do have
overall benefits such as the Public Distribution System, employment guarantee schemes, support to
education and enhanced outlays for health, particularly during the pandemic.
These go a long way in increasing the productive capacity of the population and help build a healthier
and a stronger workforce, which is a necessary part of any growth strategy.
The same goes for a State spending on education or health.
Boosts Industries: States like Tamil Nadu and Bihar are known for giving women sewing machines,
saris and cycles, but they buy these from budget revenues, contributing to the sales of these industries.
It can be considered a boost for the supplier industry and not a wasteful expenditure, given the
corresponding production.
Essential for Fulfilling Expectations: In a country like India where the states have (or don’t have) a
certain level of development, upon the emergence of the elections, there are expectations from the part
of people which are met by such promises of freebies.
Moreover, there are also comparative expectations when the people of the adjoining/other states (with
different ruling parties) get freebies.
Helps Lesser Developed States: With the states that have comparatively lower level of development
with a larger share of the population suffering from poverty, such kind of freebies become
need/demand-based and it becomes essential to offer the people such subsidies for their own
upliftment.
Disadvantages of the Freebies

Macroeconomically Unstable: Freebies undercut the basic framework of macroeconomic stability, the
politics of freebies distorts expenditure priorities and outlays remain concentrated on subsidies of one
kind or the other.
Impact on States’ Fiscal Situation: Offering freebies, ultimately, has an impact on the public
exchequer and most of the states of India do not have a robust financial health and often have very
limited resources in terms of revenue.
If states keep spending money for supposed political gains, their finances will go awry and fiscal
profligacy would prevail.
As per the Fiscal Responsibility and Budget Management (FRBM) rules the states can’t borrow
beyond their limits and any deviation has to be approved by the Centre and central bank.
Therefore, while states have flexibility on how they choose to spend their money, they cannot in
ordinary conditions exceed their deficit ceilings.
Against Free and Fair Election: The promise of irrational freebies from public funds before elections
unduly influences the voters, disturbs the level playing field and vitiates the purity of the poll process.
It amounts to an unethical practice that is similar to giving bribes to the electorate.
A Step Away from the Environment: When the freebies are about giving free power, or a certain
quantum of free power, water and other kinds of consumption goods, it distracts outlays from
environmental and sustainable growth, renewable energy and more efficient public transport systems.
Moreover, it is a general human tendency to use things in excess (thus leading to wastage of
resources) when it is provided for ‘free’.
Debilitating Effect on Future Manufacturing: Freebies lower the quality and competitiveness of the
manufacturing sector by detracting from efficient and competitive infrastructure that enable high-
factor efficiencies in the manufacturing sector.
Destroys Credit Culture: Giving away loan waivers in the form of freebies may have undesired
consequences such as destroying the whole credit culture and it blurs the very basic question as to why
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is it that a large majority of the farming community is getting into a debt trap repeatedly.

3. UPSC Current Affairs: India, EU resume FTA negotiations | Page 12

UPSC Syllabus: Mains: GS Paper II: International Relations
Sub Theme: India- EU | UPSC
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4. UPSC Current Affairs: Modi’s two summits: UAE trumps G7 |Page 07

UPSC Syllabus: Mains: GS Paper II: International Relations
Sub Theme: Bilateral & Groupings | UPSC

Context: Prime Minister Narendra Modi is attending two summits this week – he is a ‘special invitee’
at the 48th G7 Summit at Schloss Elmou in Germany. After that, he has a bilateral summit in Abu
Dhabi with the UAE President Sheikh Mohammed bin Zayed Al-Nahyan on June 28.

In this context we should read about G7 nations and India-UAE relations.

India-UAE relations:

Historical background:
• The relationship flourished after the accession of H.H. Sheikh Zayed Bin Sultan Al Nahyan as
the Ruler of Abu Dhabi in 1966 and subsequently with the creation of the UAE Federation in
1971.
• The greater push has been achieved in bilateral relations when the visit of India’s Prime
Minister to the UAE in August 2015 marked the beginning of a new strategic partnership
between the two countries.
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• In January 2017, bilateral relations were to be upgraded to a comprehensive strategic

partnership.
• Indian Diaspora in UAE: Around 3 million Indians are living harmoniously in the UAE.

1. Political relations:
• Prime Minister Modi has made four visits to Abu Dhabi and this is the sixth summit
with Sheikh Mohammed over the past seven years.
• Look West policy of India and Look East policy of India have high degree of
synchronisation.

2. Economic relations:
• UAE’s investment in India is estimated to be around U.S.$11.67 billion, which makes it
the ninth biggest investor in India.
• Both nations have signed a bilateral Comprehensive Economic Partnership Agreement
(CEPA) with India.
• Bilateral trade grew by 68% in2021-22 to $72.9 billion. Trade deficit reached $16.8
billion, also a new record.
• India is a lucrative market for UAE to invest in petrochemicals, pharmaceuticals,
renewables, infrastructure, manufacturing, logistics, start-ups, etc.
• UAE, through its ‘Vision 2021’, has sought to diversify its economy and reduce its
dependency on oil.
• India-UAE Trade:
S.No. Year 2021-2022

1 EXPORT 28044.88

2 %Growth 68.14

3 IMPORT 44833.43

4 %Growth 68.4

5 TOTAL TRADE 72878.31

6 %Growth 68.3

7 TRADE BALANCE -16788.55

• UAE India’s third largest trade partner after China and the United States.
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• UAE accounts for 8 percent of India’s oil imports and was fifth largest supplier of crude oil to
India.

Why is UAE tilting towards India?

• Geopolitical conditions as Iran are threatening continuously to close the Strait of Hormuz.
• Failure of Pakistan to meet expectations of UAE on deep economic and security relationship
with it.
• India is an important destination for oil and energy purchase.
• UAE’s massive sovereign wealth funds can act as a great resource in the development of
infrastructure in India.
• Issue of Terrorism: There has been a rising convergence between India and UAE on the terror
issue and both the countries talked of the need to combat terror groups without any
discrimination.
• UAE has recently been tilting towards the West developed nations which favours the Indian
stance of Geo-politics.

Other areas of cooperation:

Through the Golden Visa, UAE has invited best of Minds from India.
Space is a new arena in which India and the UAE have collaborated through the work of the UAE
Space Agency (UAESA) and the Indian Space Research Organization (ISRO). Together they have
developed the nano-satellite, Nayif-1.
‘Desert Eagle II’, a ten day air combat exercise, was held between the air forces of India and UAE.

Challenges:
• The reflection of NTBs can be seen through Non-Tariff Measures (NTMs) which have mostly
been covered by Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT).
UAE has over 450 SPS.
• High numbers of Non-Tariff barriers imposed on Indian goods.
• Since 2019, bilateral trade has become negative and increasing exponentially.
• Immigration rules for Indian in UAE are very cumbersome and visa availability in not smooth
either.

Way forward:
• Skilling the young Indian labour force to suit the Emirati requirements
• The two sides can collaborate for the eventual reconstruction of the war-ravaged regional
countries such as Yemen, Syria, Somalia, Iraq, Libya and Afghanistan.
• Co-operation on security, narcotics, money laundering, sea piracy and anti-terrorism.
• UAE can co-operate with India to find a better place for the former in Gulf Cooperation
council.
Talks should began on Non-Tariff barriers.

Group of 7
• The Group of 7 (G7) is an informal group of seven countries — the United States, Canada, France, Germany, Italy,
Japan and the United Kingdom, the heads of which hold an annual summit with European Union and other
invitees
• Together the member countries represent 40% of global GDP and 10% of the world’s population
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• G7 has no legal existence, permanent secretariat, or official members

• Leaders of G7 countries meets annually and discusses emerging global issues
• The presidency of G7 meetings is held by each of the seven countries in turn, each year

Changing nature of G7
The combination of G7 and 3 other invitees- India, Australia and South Korea has drawn attention to an expanded ‘D10’
coalition of democracies
• First proposed by Boris Johnson, the original purpose of D10 was aimed to address China’s growing technological
clout in 5G as well as supply chain vulnerabilities that were exposed during pandemic
• But gradually, with the Joe Biden’s efforts, the group is being seen as an alternate democratic arrangement against
the authoritarian states such as China.

Q. Consider the following statement

1. India has not signed any free trade agreement with any Arab nation.
2. UAE is the largest trading partner of India is west Asia.
Which of the statement given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (b)

• UAE India’s third largest trade partner after China and the United States.
• UAE accounts for 8 percent of India’s oil imports and was fifth largest supplier of crude oil to
India.
• India and UAE have signed the Comprehensive Economic Partnership Agreement.
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4. UPSC Current Affairs: India’s gig workforce to reach 2.35 cr. by 2030’ |Page 01
UPSC Syllabus: Mains: GS Paper III : Economy
Sub Theme: Gig Economy | UPSC

NITI Aayog's Recommendations

Official Estimation: Presently, there is no official data on the extent of gig workers in India. Hence, official labour
survey reports such as PLFS should collect data related to Gig Workers.
Launch Platform India Initiative on the lines of the Start-up India initiative to provide handholding, funding
support, skill development etc. to the Gig Workers.
Accelerate financial inclusion among the Gig Workers by designing financial products specifically designed for
them. For example, unsecured loans to first-time borrowers may be classified as Priority Sector Lending.
Skill Development: Platforms should collaborate with the Ministry of Skill Development and Entrepreneurship,
and the National Skill Development Corporation (NSDC) to nurture skilled workers and micro entrepreneurship.
The Platforms can also enable the creation of potential “Skill Certificates” to enhance employability of Gig
Workers.
Enhancing Social Inclusion:
• Platform businesses should partner with NGOs to employ more women and people belonging to
vulnerable sections.
• Provide better Infrastructure and Work Design to create enabling environment for women and
differently abled people.
Enhancing Social Security:
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The Code on Social Security, 2020 provides for the registration of all the Gig workers and Platform workers. It
calls upon the Central and State Governments to formulate schemes to ensure social security benefits such as
Insurance for the Gig workers. It also empowers the Government to set up Social Security Funds for their benefit.
The contribution to these funds may be funded from contributions of Centre, State and aggregator platforms
such as Uber, Zomato etc.
• To mitigate the challenges posed by the Covid-19 pandemic, some of the platforms such as Ola, Uber,
Urban Company, Swiggy, Zomato etc. had provided for Paid Sick Leave, Health Access and Insurance.
Other platforms should also adopt these measures.
• Provide Occupational Disease and Work Accident Insurance on the lines of Indonesia’s model.
• Provide Retirement and pensions as enunciated under Code on Social Security.
• Platforms such as Swiggy, Zomato, Amazon etc. should support Small business enterprises associated
with them through interest-free business loans.
RAISE Framework should be used for designing social security benefits for the Gig Workers under the Code on
Social Security 2020.
• Recognise the varied nature of platform work to design equitable schemes.
• Allow augmentation of social security through innovative financing mechanisms.
• Incorporate the specific interests of platforms
• Support workers to subscribe to government schemes and welfare programmes through widespread
awareness campaigns.
• Ensure benefits are readily accessible to workers.