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Anti-Defection Law

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Anti-Defection Law

The Tenth Schedule was inserted in the Constitution in 1985 by the 52nd Amendment Act (Rajeev Gandhi Government).

  • 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.
  • The law applies to both Parliament and state assemblies.

Why Anti-Defection law was brought?

  1. To stop phenomena of “AAYA RAM GAYA RAM” (Known for political horse trading)
  2. To provide stability to Government as defection was leading to fall of government
  3. To strengthen fabric of parliamentary democracy by curbing unprincipled and unethical political defections.
  4. To prevent lure of office or material benefits to legislators.
  5. It makes members of parliament more accountable and faithful to the parties with which they were aligned at the time of their election

 

When a member can be disqualified?

If a member of a house belonging to a political party:

  1. Voluntarily (Term subjected to interpretation) gives up the membership of his political party, or
  2. Votes, or does not vote in the legislature, contrary to the directions of his political party (against direction of whip). However, if the member has taken prior permission, or is condoned by the party within 15 days from such voting or abstention, the member shall not be disqualified.
  3. If an independent candidate joins a political party after the election.
  4. If a nominated member joins a party six months after he becomes a member of the legislature.

Changes introduced by 91st C.A.A, 2003

  1. Total no of ministers (PM included) should not be more that 15% of the strength of Lok Sabha Art. 75(1A)
  2. Article 75 Clause (1-B) provides that a member of either House of Parliament belonging to any party who is disqualified for membership in that House due to defection under paragraph of the Tenth Schedule is also disqualified for appointment as a minister under Clause (1) of Articles 75 and 164 of the Constitution until he is elected again.
  3. The amendment deleted paragraph 3 of the Tenth Schedule, which provided that if one-third of a political party defected, they would not be disqualified under the defection statute. (split was now not a ground for defection)
  4. A member of either House of Parliament or the House of a State Legislature from any political party who is disqualified for defection from any political party is also barred from holding any remunerative political office.
  5. Any member of either House of Parliament or state legislature who is disqualified from serving as a member due to defection is likewise barred from serving as a minister.

NOTE: MERGER IS NOT PROHIBITED i.e. if more than 2/3rd members of a political party dissociate from original party then members of that group not to attract disqualification and can merge with other parties.

 

Concerns regarding anti-defection law

  1. The Anti-defection statute has failed to prevent defections in the past. This is due to the fact that it does not distinguish between disagreement and defection. For the sake of party loyalty, it limits the legislator’s right to dissent and freedom of conscience.
  2. The distinction drawn between individual and collective defection is completely irrational.
  3. Even the distinction it creates between independent and nominated members is illogical. If the former joins a political party, s/he is disqualified, whereas the latter is permitted to do so.
  4. It encourages horse-trading of legislators, which clearly contradicts the values of a democratic system.

 

Judicial Pronouncements

    1. Kihoto Hollohan v. Zachillhu and others (1992)

The Supreme Court ruled that judicial review could not be obtained prior to the Speaker/Chairman making a decision. Interference would also be prohibited during an interlocutory stage of the proceedings presided over by the Speaker/Chairman. Prior to this case, the Speaker/decision Chairman was regarded as final and not subject to judicial review. The Supreme Court ruled that this clause was unlawful.

    1. Ravi S Naik v. Union of India (1994)

The Supreme Court in this decision granted “resignation by willingly giving up membership” a broader meaning. The Court stated that a person can voluntarily leave a political party even though he has not formally resigned from such party. Even in the absence of a formal resignation from membership, it is possible to conclude from a member’s actions that he has willingly resigned from the political party to which he belongs.”

 

Suggested Reforms:

Dinesh Goswami Committee on electoral reforms:

Disqualification should be limited to following cases:

  1. A member voluntarily gives up the membership of his political party.
  2. A member abstains from voting, or votes contrary to the party whip in a motion of vote of confidence or motion of no-confidence. Political parties could issue whips only when the government was in danger.

Law Commission (170th Report):

  1. Provisions which exempt splits and mergers from disqualification to be deleted.
  2. Pre-poll electoral fronts should be treated as political parties under anti-defection
  3. Political parties should limit issuance of whips to instances only when the government is in danger.

Constitution Review Commission (2002):

  1. It urged that the defectors be barred from entering the public office or any other political position for the remainder of their mandates.
  2. A vote cast by a defector to overthrow a government shall be regarded as void.

Election Commission:

  1. Decisions under the Tenth Schedule should be made by the President/ Governor on the binding advice of the Election Commission.

 

Defamation and Disqualification

Rahul’s Conviction

  1. Section 500 of IPC- prescribes for defamation a simple imprisonment for a term which may extend to 2 years, or with fine, or with both.
  2. Disqualification: 3 Routes-

 Disqualification

Art. 102(1) and Art. 191(1)

10th Schedule and Article 102(2)

Under Representation of People Act, 1951

 

 

 

  1. Article 102(1) and 191(1): Grounds are
  1. Office of Profit
  2. Unsound Mind
  3. Insolvent
  4. Not having valid citizenship
  5. If disqualified by or under any law made by parliament
  1. 10th Schedule and Article 102(2)(52nd Constitutional amendment inserted it)
  1. On ground of defection
  1. Under RPA 1951: Several provisions that deal with disqualification under RPA
  1. Section 8 – deals with disqualification for conviction of offences, aimed at preventing criminalisation of politics and keeping tainted lawmakers from contesting elections.
  • Section 8(1)- includes specific offences such as
  • Promoting enmity between 2 groups
  • Bribery
  • Undue influence or impersonation at an election
  • NOTE: Defamation doesn’t fall in this list
  • Section 8(2)- list offenses such as
  • Hoarding or profiteering
  • Adulteration of food or drugs
  • For conviction and sentence of at least 6 months for offense under any provisions of Dowry Prohibition Act.
  • Section 8(3) – A person convicted of any offense and sentenced to imprisonment for not less than 2 years shall be disqualified from the date of such conviction and shall continue to be disqualified for a further period of 6 years since his\her release. (Note- Rahul Gandhi disqualification comes under this)
  1. Section 9- Deals with disqualification for
  • Dismissal for corruption or disloyalty and
  • For entering into government contract while being a lawmaker
  1. Section 10- deals with disqualification for failure to lodge an account of election expenses
  2. Section 11- deals with disqualification for corrupt practices

How does disqualification operate?

The disqualification can be reversed if a higher court grants a stay on the conviction or decides the appeal in favour of convicted lawmaker. In a 2018 decision in LOK PRAHARI VERSUS Union of India, Supreme Court clarified that disqualification will not operate from the date of stay of conviction by the appellate court and not on suspension of sentence. So, stay cannot merely be a suspension of sentence under section 389 of CRPC but stay of conviction.

LILY THOMAS CASE- Earlier, Section 8(4) of RPA said- Disqualification takes effect only “after 3 months have elapsed” from the date of conviction. In LILY THOMAS CASE (2013), Supreme Court struck it down as ultra vires the constitution.

Quiet Diplomacy Could Ease South China Sea Tensions

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Quiet Diplomacy Could Ease South China Sea Tensions

What is Quiet Diplomacy?

“Quiet diplomacy” refers to one state’s efforts to influence the behavior of another state through discreet negotiations or actions. Quiet diplomacy operates behind the scenes and may rely on back channeling rather than on public talks. It may also involve deal making and strategic partnerships, involving more carrots than sticks. Quiet diplomacy can also bringing indirect influence to bear on a nation’s leaders through meetings with members of civil society.

Small nations often rely on quiet diplomacy, because they don’t have the military or economic clout to intimidate other nations. But large, powerful countries like the United States also use quiet diplomacy. The expression is close to Theodore Roosevelt’s famous suggestion, “speak softly and carry a big stick.”

Quiet diplomacy allows powerful countries to offer carrots while still reminding others that the stick is still there. Back in 2007, for example, the Bush administration was looking to expand its influence in South America and counter the influence of Venezuela’s left-wing president, Hugo Chavez. President Bush went on a tour of South American nations, meeting with leaders to tell them about the kinds of aid the United States could offer them.

 

South China sea (SCS) issue: The EEZ of countries of ASEAN grouping and China is overlapping.

  1. China
    1. claims territories within the nine-dash line including the Paracel and Spratly islands based on its historical rights over the region.
    2. Has constructed artificial islands and stationed its naval bases.
    3. Claims fishing rights and resource exploration rights in the region.
  2. The neighbouring countries also lays claim to territories in the South china sea
    1. Philippines - on Scarborough shoal, Spratly islands based on UNCLOS-EEZ rights and geographical proximity.
    2. Vietnam -on Paracel & Spratly islands based on its historical rights since the 17th century.
    3. Malaysia and Brunei also claim territories in South china sea based on UNCLOS-EEZ

 

 

  1. 2016 Arbitral award - Verdict on Philippines case against China's expansionism in SCS in the Permanent Court of Arbitration (PCA).
    1. China's claim to resources in SCS historically is unfounded.
    2. China has caused irreparable harm to the maritime environment in SCS through land reclamation and development activities
    3. China has violated sovereign rights of the Philippines - fishing, petroleum extraction, artificial island constructions

But, China withdrew from the case proceedings in 2013 and refused to accept the tribunal's judgment.

What was the decision of the Permanent Court of Arbitration (PCA) 

The arbitration process considered various aspects, including maritime rights, the status of specific marine features, historical rights, and the legality of certain Chinese actions in the South China Sea, which Manila deemed as unlawful.

According to UNCLOS Article 296I, the tribunal’s decision is considered “final and binding.” The PCA rejected China’s claim of historical rights in the South China Sea and the unanimous decision favoured the Philippines.

The tribunal also declared that any previous claims to resources within the “nine-dash line” were not grounded on a legal basis.

It concluded that China’s development and land reclamation activities had significantly altered the reefs, which violated its commitments under UNCLOS.

The tribunal further criticised China for causing irreversible damage to the marine environment and destroying evidence of the natural condition of features in the South China Sea.

The tribunal found China guilty of violating the Philippines’ sovereign rights in its Exclusive Economic Zone (EEZ) by interfering with fishing and petroleum exploration, constructing artificial islands, and failing to prevent Chinese fishermen from operating in the area.

The tribunal also determined that China had no legal basis to assert historic rights to resources within the sea areas falling under the tribunal’s jurisdiction.

What is the importance of the South China Sea?

The South China Sea holds significant importance as a crucial maritime passageway connecting the Pacific and Indian Oceans. It plays a vital role in global geopolitics, economy, and strategic interests.

Maintaining free and stable maritime routes is essential for global trade and the world economy.

  1. India's interests in the region
    1. SCS is a crucial maritime junction for shipping between Pacific and Indian oceans.
    2. Naval base stationed in SCS Islands can help China realize the  'String of Pearls' concept.
    3. China's dominance and non-adherence to international law is against India's principles of commitment towards global rule and order.
    4. India wants 'freedom of navigation in sea and over air' in the SCS region.

The PCA's verdict has not brought changes in ground realities in SCS due to assertive China that is disobeying international law. 'Quiet diplomacy' through a political framework solution arrived through dialogue among ASEAN partners is required to solve the SCS issue.

 

What is the news?

  • During the fifth meeting of the Philippines-India Joint Commission on Bilateral Cooperation in New Delhi on June 29, the Foreign Ministers of India and the Philippines, S. Jaishankar and Enrique Manalo, respectively, discussed enhancing the bilateral partnership between the two countries. The meeting focused on maritime cooperation and addressing the South China Sea issue

Central Idea

  • With a shared history of diplomatic relations spanning nearly 75 years and common maritime interests, the External Affairs Minister of India, S. Jaishankar, and the Secretary for Foreign Affairs of the Philippines, Enrique Manalo, laid out a roadmap to enhance the bilateral partnership in the 21st century.

Significance and developments emerged from the meeting

  • Establishment of a resident defense attaché office in Manila: The decision to open a resident defense attaché office in Manila reflects a deeper commitment to defense cooperation between India and the Philippines. This move will facilitate closer coordination, information sharing, and joint defense initiatives.
  • Increased collaboration between the Coast Guards: The Coast Guards of India and the Philippines will enhance their collaboration, aiming to strengthen maritime security in the region. This includes joint patrols, information exchange, and joint operations to combat maritime threats.
  • Manila’s acquisition of naval assets with concessional credit from India: To bolster its maritime capabilities, the Philippines will acquire naval assets with the help of a concessional line of credit extended by India. This support will enhance the Philippines’ maritime defense capabilities and contribute to maintaining regional stability.
  • Expanded training and joint exercises on maritime security and disaster responses: Both countries will expand their training programs and conduct joint exercises focused on maritime security and disaster response. This cooperation will enhance operational readiness and preparedness to address maritime challenges, including disaster relief efforts.

 

How Quiet diplomacy could ease South China Sea tensions

  • Confidence-Building Measures: Quiet diplomacy can facilitate the implementation of confidence-building measures among the claimant states. This can include agreements on joint military exercises, information sharing, or cooperative initiatives aimed at reducing tensions and building trust.
  • Open Communication: Quiet diplomacy allows for confidential and discreet communication between stakeholders, such as China and the claimant states. It provides a platform for open dialogue where concerns and perspectives can be expressed, leading to better understanding and the potential for resolving differences.
  • Mediation and Facilitation: Quiet diplomacy may involve the engagement of neutral third-party mediators or facilitators who can assist in bridging differences and guiding the negotiation process. These mediators can provide a neutral perspective, offer expertise, and help facilitate constructive dialogue among the stakeholders.
  • Informal Track-II Diplomacy: Quiet diplomacy encourages informal exchanges and dialogues between academic experts, think tanks, and non-governmental organizations. These interactions can provide alternative perspectives, generate innovative ideas, and contribute to a deeper understanding of the issues at hand.
  • Crisis Management: Quiet diplomacy can be applicable during times of crisis or heightened tensions in the South China Sea. It allows for confidential crisis management talks between relevant parties, enabling swift and discreet negotiations to de-escalate tensions and seek temporary agreements

Conclusion

By committing to a rules-based order and emphasizing the significance of international law, India underscores its commitment to regional stability and peace. The need for dialogue, political frameworks, and unity among ASEAN nations is crucial to achieving a peaceful resolution in the South China Sea, protecting vital maritime commons, and ensuring the uninterrupted flow of global trade.

CPI BASKET CONCEALS THE INFLATION PICTURE

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CPI BASKET CONCEALS THE INFLATION PICTURE

India's consumer price index (CPI) inflation rose to 4.81% in June 2023, higher than expectations but still below the RBI's upper tolerance limit of 6%. The spike was driven by a less supportive base and a surge in vegetable prices. 

  1. India's consumer price index (CPI) inflation rises for the first time in five months to 4.81% in June 2023.
  2. Also, the rise in inflation is higher than the street's expectations of 4.58%, nevertheless, the CPI print is still below RBI's upper tolerance limit of 6%.
  3. CPI was pushed higher than expected due to a less supportive base and the onset of a surge in vegetable prices. Food inflation spiked to 4.49% in June.

 

 

What is CPI?

The Consumer Price Index (CPI) is a price index that measures the average price of a basket of items over a given period of time. The Consumer Price Index (CPI) determines the average price paid by customers to merchants. The CPI includes necessities such as food, clothing, housing and includes services like medical care, transportation, and education.

Facts:

  1. The Consumer Price Index (CPI) is a measure of price changes in a basket of consumer goods and services purchased by households.
  2. CPI is a numerical estimate based on the rates of a selection of typical objects whose prices are collected on a regular basis.
  3. The Consumer Price Index (CPI) measures price fluctuations at the consumer level.
  4. The CPI is divided into eight categories: education, communication, transportation, recreation, clothes, foods and beverages, housing, and medical care.
  5. The CPI is published by the National Statistical Office (NSO) under the Ministry of Statistics and Program Implementation.
  6. The CPI uses a base year set at 2011-2012.
  7. The CPI is published on a monthly basis.
  8. The Wholesale Price Index tracks price changes at the producer level (WPI).

 

How is CPI calculated?

The Consumer Price Index, or CPI, measures changes in the price of a common basket of goods and services by comparing current prices to prices from the previous year's similar time.

CPI is calculated using the following formula:

 

 

Types of CPI

There are 4 different types of CPI measured:

CPI for Industrial Workers (CPI-IW)

  • It attempts to quantify changes in the pricing of a fixed basket of products and services used by Industrial Workers over time.
  • A typical working-class family from any of these seven economic sectors, ranging from industries, mines, plantations, motor transport, port, railways, and energy generation and distribution, would be the target demographic.
  • The Labour Bureau compiled this list. This functions under the Ministry of Labour and Employment.

CPI for Agricultural Laborers (CPI-AL)

The Labor Bureau compiles this data to help revise minimum wages for agricultural labor in different States.

CPI for Rural Labourer (CPI-RL)

The Labour Bureau compiled this list. This functions under the Ministry of Labour and Employment.

CPI ( Urban Non-Manual Employees) (CPI-UNME)

  • This information is compiled by the Central Statistics Office (CSO), which is now known as the National Statistical Office (NSO).
  • The Ministry of Statistics and Program Implementation oversees the NSO.

 

Base Year Revision and new terminologies

  • In its Report (2001), the National Statistical Commission (NSC), led by Dr. C. Rangarajan, proposed the compilation of CPI for rural and urban areas.
  • The Standing Committee on Finance (2009-10) also accepted the NSC (2001) report (15th Lok Sabha, 6th Report on Inflation and Price Rise)
  • With effect from January 2011, the Central Statistics Office (CSO), Ministry of Statistics, and Programme Implementation began issuing Consumer Price Indices (CPI) on a monthly basis for all of India and States/UTs, separately for rural, urban and combined.
  • In January 2011, the CPI (R), CPI (U), and CPI (C) with Base Year 2010 were issued.
  • Then in 2015, from 2010 to 2012, the base CPI was updated.

Components of CPI

The following are the primary components of CPI (C): (along with their weights)

  • Food and Beverage – 45.86;
  • Food and Beverage – 45.86;
  • Housing – 10.07;
  • Fuel and Light – 6.84;
  • Clothing and Footwear – 6.53;
  • Pan, tobacco, and intoxicants – 2.38;
  • Miscellaneous – 28.32;

Note: Housing inflation is not factored into the CPI (R)

Significance of CPI

  • CPI (C) has been utilized as a nominal anchor for the conduct of monetary policy in India since the RBI established Inflation Targeting.
  • The Monetary Policy Committee is required to keep the CPI (C) in the range of 2% to 6%. As a result, the CPI is used to target inflation.
  • In the National Accounts, CPI is also utilized as a deflator.
  • The Consumer Price Index (CPI) is also used to calculate Dearness Allowance.

CPI chosen instead of WPI

  • CPI was used as an inflation indicator in India from 2014, replacing WPI.
  • CPI indicates the inflation rate at the consumer level which is a better indicator than the Wholesale Price Index (WPI).
  • CPI includes services such as medical care and education which are not included in WPI. These services are essential to gauge the inflation rate.

 

 

 

 

 

GST ON ONLINE GAMING & ITS IMPLICATIONS

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UNIFORM 28% GST ON ONLINE GAMING & ITS IMPLICATIONS

Why in the news?

The GST Council has decided to levy a uniform 28% GST on Online gaming, casinos and horse-racing.

What are the new changes?

  • The 28% taxation will be applicable on the entire face value of the bet. This is a deviation from the earlier 18% GST on the platform value of the bet.
  • Online gaming, Casinos and horse-racing will be added under Schedule III as actionable claims by amending GST laws.

Actionable claims means goods taxable under CGST Act, 2017.

  • So far only lottery, gambling and betting were classified as actionable claims.
  • There is now no distinction made between game of chance and game of skill.

What are the implications?

  • Hit companies that developed game of skills through hard effort by taxing them in parity with gambling.
  • Can cause job losses due to negative impact on the companies' growth.
  • Likely to dissuade both investors and users.

Online gaming industry in India:

  • A unique sector that intertwines both technology and entertainment.
  • The revenue of online mobile gaming industry to register USD 5 billion by 2025.
  • Only sector in internet economy with high profitable companies.
  • Increase in New paying users (NPU) in online gaming is highest in India at 50% in 2021.

 

About GST

The Goods and Services Tax (GST) is a destination-based indirect tax applied on goods and services sold for domestic consumption. It was recommended by the Kelkar Committee setup in 2004 for “Implementation of FRBM (Fiscal Responsibility & Budget Management Act, 2003)”.

  • The Constitution of India was amended by the Constitution (one hundred and first amendment) Act, 2016.
  • The GST is imposed and collected by the Centre and the States under Article 246A of the Constitution.
  • It is a destination-based tax on the consumption of goods and services.
  • destination tax is a tax that would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed a place of supply.

 

Objectives and need of GST

The reasons for adopting a single rate structure in most countries are to have a simple tax system, prevent misclassifications and litigations arising therefrom, and to avoid an inverted duty structure of taxes on inputs exceeding those on outputs requiring detailed scrutiny and refunds.

 

Features of GST

  • It is to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as set off.
  • Similarly, the Centre levies and administers Integrated GST (IGST) on all inter-state supplies of goods and services.
  • CGST and IGST are levied and administered by the Centre, whereas SGST and UTST are levied and administered by the states and UTs.
  • A dual GST complies with the Constitution's mandate of fiscal federalism.
  • In a nutshell, only value addition is taxed and the burden of tax is borne by the final consumer.
  • It is a dual GST, with the Centre and States levying it at the same time on the same tax base.
  • The Central GST (CGST) levied by the Centre on intra-State supply of goods and/or services is known as the Central GST (CGST) whereas the GST by the states is known as the State GST (SGST).

 

GST Council

The GST Council is headed by the Union Finance Minister, and other members are the Union State Minister of Revenue or Finance and Ministers in charge of Finance or Taxation of all the States.

  • The GST Council is a constitutional body under Article 279A.
  • It makes recommendations to the Union and State Government on issues related to Goods and Service Tax and was introduced by the Constitution (One Hundred and First Amendment) Act, 2016. The council is structured so that the federal government has 1/3 of the vote and the states have 2/3. A 3/4ths majority is required to make a decision.
  • Economic Survey 2017-18 also hailed the GST Council for its cooperative federalism technology, which brings together the Centre and States and can be applied to many other policy reforms.

 

Taxes Subsumed by GST

Central taxes that are subsumed under the GST are:

  • Central Excise duty
  • Duties of Excise (Medicinal and Toilet Preparations)
  • Additional Duties of Excise (Goods of Special Importance)
  • Additional Duties of Excise (Textiles and Textile Products)
  • Additional Duties of Customs (commonly known as CVD)
  • Special Additional Duty of Customs (SAD)
  • Service Tax
  • Central Surcharges and Cesses so far as they relate to supply of goods and services

State taxes that are subsumed under the GST are:

  • State VAT
  • Central Sales Tax
  • Luxury Tax
  • Entry Tax (all forms)
  • Entertainment and Amusement Tax (except when levied by the local bodies)
  • Taxes on advertisements
  • Purchase Tax
  • Taxes on lotteries, betting and gambling
  • State Surcharges and Cesses so far as they relate to supply of goods and services

 

Commodities Kept Outside GST

  • The Products and Services Tax (GST) is defined by Article 366(12A) of the Constitution, as amended by the 101st Constitutional Amendment Act, 2016, as a tax on the supply of goods or services or both, except for the supply of alcoholic liquor for human consumption.
  • As a result, alcohol for human use is exempt from GST under the constitution's definition of GST.
  • The GST Council will determine the date on which they will be subject to GST.
  • Furthermore, power is exempt from the GST.
  • On imported items, customs duty and IGST will continue to be collected.
  • Currently, petroleum and tobacco products are exempt.
  • Liquor excise duty, stamp duty, and power taxes are all exempted as well.
  • In the case of the aforementioned items, the present taxing structure (VAT and Central Excise) would be maintained.
  • Petroleum crude, motor spirit (petrol), high-speed diesel, natural gas, and aviation turbine fuel have all been temporarily prohibited.

47th GST Council

The GST council had its 47th meeting held at Chandigarh, chaired by the Finance Minister. The key decisions taken were:

  • Online Retailers below 40 Lakhs are not required Goods and Services Tax registration for Intra-State Transactions.
  • Council approved Report of GoM suggesting IT reforms GST Cess Collection will be used for Repayment of Loan till 2026.
  • GoM was created for the establishment of the GST Tribunal, Decision on 1st August.
  • GoM on Rate Rationalization Extended for Three More Months.
  • No Decision on 28% Good and Service Tax on Casinos, Online Gaming: GST Council asks GoM to file a Report by 15th July. GST Council to meet on 1st August to decide Tax on Casinos.
  • E-Way Bill for Intra-State movement of Gold to be decided by States.
  • Rate Changes on Certain Items Approved will be implemented from 18th July.
  • GST Council to meet on 1st August to decide on the Establishment of the GST Appellate Tribunal.
  • GoM on IT Reforms: Permanent GoM to give Suggestions on GSTN
  • Goods and Services Tax Compensation Cess for States shall continue.

 

Structure of GST

  • The government has categorised items into five major slabs for different goods and services - 0%, 5%, 12%, 18% and 28%. Cesses may be imposed on the items under the highest slab of 28%.
  • GST Council examines issues relating to goods, services tax and makes recommendations to the Union, and the States on parameters like rates, exemption list and threshold limits.
  • necessities and food items are kept at the minimal rates of 0% and 5% and the luxury items and sin goods (such as tobacco, pan masala) are placed at the top bracket rate of 28%.
  • Out of 1300 products and 500+ services, the majority of the products are placed in the 12% and 18% tax bracket.

 

Goods and Services Network (GSTN)

  • GSTN is registered as a not-for-profit company under the Companies Act.
  • It has been formed to set up and operate the information technology backbone of the GST.
  • While the Central (24.5%) and the state (24.5%) governments hold a combined stake of 49%, the remaining 51% stake is divided among five financial institutions—LIC Housing Finance with 11% stake and ICICI Bank, HDFC, HDFC Bank and NSE Strategic Investment Corporation Ltd with 10% stake each.
  • GSTN had awarded Infosys Ltd the contract to develop the hardware and software for GST.
  • The idea behind GSTN was to set up an entity that is equidistant from both the Central government and the state governments, as it will advise both the Centre and the states on the information technology network.

 

National Anti-Profiteering Authority (NAA)

  • The National Anti-Profiteering Authority shall be a five-member committee consisting of a Chairman who holds or has held a post equivalent in rank to a Secretary to the Government of India; and four Technical Members who are or have been Commissioners of State tax or central tax. Additional Director General of Safeguards shall be the Secretary of the Authority.
  • The Authority will determine the method and procedure for determining whether the reduction in rate or the benefit of the input tax credit has been passed on by the seller to the buyer by reducing the prices.
  • The Authority shall exist for 2 years from the date on which the Chairman enters upon his office unless the Council recommends otherwise.
  • The GST Council will constitute a Standing Committee and a state-level Screening Committee on Anti-Profiteering, Standing Committee comprises officers of the State and Central Government as nominated by it.

 

Disaster preparedness during floods

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Disaster preparedness during floods

Extreme rainfall events during monsoon along with climate change adversaries, both proactive measures and reactive strategies becomes essential.

A Multi-pronged disaster preparedness approach:

  1. Robust early warning system about heavy rainfall and flash floods to people.  AI/ML augmented meteorological observations such as Doppler weather radar (DWR) or high resolution weather prediction model can be used.
  2. Advanced flood monitoring system with continuous monitoring of river levels.
  3. Flood risk maps to identify high risk zones, historically vulnerable spots and target actions.
  4. Climate resilient infrastructure such as drainage systems to prevent waterlogging.
  5. Robust implementation of land use planning and zoning regulations.
  6. Protection and restoration of natural ecosystem
  7. Awareness generation among people about right actions during flood, giving first-aid and getting reliable information.

 

Floods and drought

Today, droughts and floods are a common feature and their co-existence poses a potent threat, which cannot be eradicated but has to be managed. Transfer of the surplus monsoon water to areas of water deficit is a potential possibility. This would also help create additional irrigational potential, the generation of hydropower, as well as overcoming regional imbalances.

The recurrence of drought and famines during the second half of the 19th century necessitated the development of irrigation to give protection against the failure of crops and to reduce large-scale expenditure on famine relief.

Floods in India

Floods are recurrent phenomena in India. Due to different climatic and rainfall patterns in different regions, it has been the experience that, while some parts are suffering devastating floods, another part is suffering drought at the same time. With the increase in population and development activity, there has been a tendency to occupy the floodplains, which has resulted in damage of a more serious nature over the years. Often, because of the varying rainfall distribution, areas which are not traditionally prone to floods also experience severe inundation. Thus, floods are the single most frequent disaster faced by the country.

Flooding is caused by the inadequate capacity within the banks of the rivers to contain the high flows brought down from the upper catchments due to heavy rainfall. Flooding is accentuated by erosion and silting of the river beds, resulting in a reduction of the carrying capacity of river channels; earthquakes and landslides leading to changes in river courses and obstructions to flow; synchronization of floods in the main and tributary rivers; retardation due to tidal effects; encroachment of floodplains; and haphazard and unplanned growth of urban areas. Some parts of the country, mainly coastal areas of Andhra Pradesh, Orissa, Tamil Nadu and West Bengal, experience cyclones, which are often accompanied by heavy rainfall leading to flooding.

Area prone to flood

In 1980, Rashtriya Barh Ayog (National Commission on Floods) assessed the total area liable to flooding in the country as 40 million hectares (ha), which constitutes one-eighth of the country’s total geographical area. The Working Group on Flood Control Programme set up by the Planning Commission for the Tenth Five Year Plan put this figure at 45.64 million ha. About 80 per cent of this area, i.e. 32 million ha, could be provided with a reasonable degree of protection.

Damage from floods

More significant than the loss of life and damage to property is the sense of insecurity and fear in the minds of people living in the floodplains. The after-effects of flood, such as  the suffering of survivors, spread of disease, non-availability of essential commodities and medicines and loss of dwellings, make floods the most feared of the natural disasters faced by humankind.

Flood damage

 

Maximum

Average

Area affected

17.5 million ha (1978)

7.63 million ha

Crop area affected

10.15 million ha (1988)

3.56 million ha

Population affected

70.45 million (1978)

32.92 Million

Houses damaged

3 507 542  (1978)

1 234 616

Heads of cattle lost

618 248 (1979)

91 242

Human lives lost

1 1316 (1977)

1 560

Damage to public utilities

US$ 705 million (1998)

US$ 126 million

Total damage

US$ 1 255 million (1998)

US$ 307 million

Heavy flood damage was inflicted during the monsoon of 1955, 1971, 1973, 1977, 1978, 1980, 1984, 1988, 1989, 1998, 2001 and 2004. 

National water policy

The National Water Policy adopted by the National Water Resources Council in April 2002 highlights the provisions for project planning, surface- and groundwater development, irrigation and flood control.

Irrigation plays a major role in increasing the production of food grains. The policy provides following directives for irrigation management:

  • Irrigation planning either in an individual project or in a basin as a whole should take into account the irrigability of land, cost-effective irrigation options possible from all available sources of water and appropriate irrigation techniques for optimizing water- use efficiency. Irrigation intensity should be such as to extend the benefits of irrigation to as large a number of farming families as possible, keeping in view the need to maximize production;
  • There should be close integration of water- and land-use policies.
  • Water allocation in an irrigation system should be done with due regard to social equity and justice. Disparities in the availability of water between head-reach and tail-end farms and between large and small farms should be obviated by adoption of a rotational water distribution system and supply of water on a volumetric basis subject to certain ceilings and rational pricing;
  • Concerted efforts should be made to ensure that the irrigation potential created is fully utilized. For this purpose, the command area development approach should be adopted in all irrigation projects.

The following provisions exist in National Water Policy 2002 as regards flood control and moderation:

  • There should be a master plan for flood control and management for each flood prone basin;
  • An adequate flood cushion should be provided in water-storage projects, wherever feasible, to facilitate better flood management. In highly flood- prone areas, flood control should be given overriding consideration in reservoir-regulation policy, even at the cost of sacrificing some irrigation or power benefits;
  • While physical flood-protection works like embankments and dykes will continue to be necessary, increased emphasis should be laid on non-structural measures such as flood forecasting and warning, floodplain zoning and flood-proofing in order to minimize losses and reduce recurring expenditure on flood relief.

Approach to flood management

Approaches to dealing with floods may be any one or a combination of the following available options:

  • Attempts to modify the flood
  • Attempts to modify the sus-ceptibility to flood damage
  • Attempts to modify the loss burden
  • Bearing the loss.

The main thrust of the flood protection programme undertaken in India so far has been an attempt to modify the flood in the form of physical (structural) measures to prevent the floodwaters from reaching potential damage centres and modify susceptibility to flood damage through early warning systems.


Structural measures

The following structural measures are generally adopted for flood protection:

  • Embankments, flood walls, sea  walls
  • Dams and reservoirs
  • Natural detention basins
  • Channel improvement
  • Drainage improvement
  • Diversion of flood waters.

 

Non-structural measures

Non-structural measures include:

  • Flood forecasting and warning
  • Floodplain zoning
  • Flood fighting
  • Flood proofing
  • Flood insurance.

 

Disaster management in Indi

India has traditionally been vulnerable to natural disasters on account of its unique geoclimatic conditions. Floods, droughts, cyclones, earthquakes and landslides have been recurrent phenomena. About 60 per cent of the landmass is prone to earthquakes of various intensities; over 45 million ha are prone to floods; about 8 per cent of the total area is prone to cyclones and 68 per cent of the area is susceptible to drought. In the decade 1990-2000, an average of about 4 344 people lost their lives and 30 million were affected by disasters every year. The loss in terms of private, community and public assets was astronomical.

Over the past couple of years, the Government of India has effected a paradigm shift in its approach to disaster management. The new approach derives from the conviction that development cannot be sustainable unless disaster mitigation is built into the development process. Another cornerstone of the approach is that mitigation has to be multi-disciplinary, spanning all sectors of development. The new policy also emanates from the belief that investments in mitigation are much more cost-effective than expenditure on relief and rehabilitation.

Disaster management occupies an important place in this country’s policy framework, as it is the poor and the underprivileged who are worst affected by calamities/disasters.

The steps being taken by the Government emanate from the approach outlined above. This has been translated into a National Disaster Framework (roadmap) covering institutional mechanisms, a disaster prevention strategy, early warning systems, disaster mitigation, preparedness and response and human resource development. The expected inputs, areas of intervention and agencies to be involved at the national, state and district levels have been identified and listed. There is now, therefore, a common strategy underpinning the action being taken by all the participating organizations/stakeholders.

Institutional and policy framework

The institutional and policy mechanism for carrying out response, relief and rehabilitation has been well-established since independence. These mechanisms have proved to be robust and effective.

At the national level, the Ministry of Home Affairs is the nodal ministry for all matters concerning disaster management. The Central Relief Commissioner in the Ministry of Home Affairs is the nodal officer to coordinate relief operations for natural disasters. The Central Relief Commissioner receives information relating to forecasting/warning of a natural calamity from the India Meteorological Department or the Central Water Commission of the Ministry of Water Resources on a continuous basis.

National Crisis Management Committee (NCMC)

The Cabinet Secretary, who is the highest executive officer, heads the NCMC. Secretaries of all the ministries/departments concerned, as well as organizations, are members of the Committee. The NCMC gives direction to the Crisis Management Group as deemed necessary. The Secretary, Ministry of Home Affairs, is responsible for ensuring that all developments are brought promptly to the notice of the NCMC. The NCMC can give directions to any ministry/department/organization for specific action needed for meeting the crisis situation.

Crisis Management Group (CMG)

The Central Relief Commissioner in the Ministry of Home Affairs is the Chairman of the CMG, comprising senior officers (called nodal officers) from various concerned Ministries. The CMG’s functions are to review every year contingency plans formulated by various ministries/departments/organizations in their respective sectors and measures required for dealing with a natural disaster, coordinate the activities of the central ministries and state governments in relation to disaster preparedness and relief and to obtain information from the nodal officers on measures relating to above. In the event of a natural disaster, the CMG meets frequently to review relief operations and extend all possible assistance required by the affected states to overcome the situation effectively. The Resident Commissioner of the affected state is also associated with such meetings.

Control Room (Emergency Operations Centre)

An Emergency Operations Centre (Control Room) exists in the nodal Ministry of Home Affairs, which functions round the clock, to assist the Central Relief Commissioner in the discharge of his duties. The activities of the Control Room include collection and transmission of information concerning natural calamity and relief, keeping close contact with governments of the affected states, interaction with other central ministries/departments/organizations in connection with relief, maintaining records containing all relevant information relating to action points and contact points in central ministries etc., and keeping up-to-date details of all concerned officers at the central and state levels.

Contingency Action Plan

A national Contingency Action Plan (CAP) for dealing with contingencies arising in the wake of natural disasters has been formulated by the Government of India and is periodically updated. It facilitates the launching of relief operations without delay. The CAP identifies the initiatives required to be taken by various central ministries/departments in the wake of natural calamities, sets down the procedure and determines the focal points in the administrative machinery.

State relief manuals

Each state government has relief manuals/codes which identify the role of each officer in the state for managing natural disasters. These are reviewed and updated periodically, based on the experience of managing the disasters and the needs of the state.

Funding mechanisms

The policy and funding mechanisms for providing relief assistance to those affected by natural calamities are clearly laid down. They are reviewed by the Finance Commission appointed by the Government of India every five years. The Finance Commission makes recommendations regarding the division of tax and non-tax revenues between the central and state governments and also regarding policy for provision of relief assistance and their share of expenditure thereon. A Calamity Relief Fund has been set up in each state as per the recommendations of the 11th Finance Commission. The size of the Calamity Relief Fund was fixed by the Finance Commission after taking into account the expenditure on relief and rehabilitation over the past 10 years.

Cyclone forecasting

Tropical cyclones are intense low-pressure systems which develop over warm sea. They are capable of causing immense damage due to strong winds, heavy rains and storm surges. The frequency of a tropical cyclone in the Bay of Bengal is four to five times more than in the Arabian Sea. About 35 per cent of initial disturbances in the northern Indian ocean reach tropical cyclone stage, of which 45 per cent become severe.

The India Meteorological Department is mandated to monitor and give warnings of tropical cyclones. The monitoring process has been revolutionized by the advent of remote-sensing techniques. A tropical cyclone intensity analysis and forecast scheme has been worked out, using satellite image interpretation techniques which facilitate storm surge forecasting. The meteorological satellite has made a tremendous impact on the analysis of cyclones.

Important links to be referred:

https://indiawris.gov.in/wiki/doku.php?id=flood_management

https://public.wmo.int/en/bulletin/flood-and-drought-management-through-water-resources-development-india

 

INDO-FRANCE RELATIONS

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INDO-FRANCE RELATIONS

  1. Convergence of Indo-pacific strategies of India and France
  • France is a resident power in the Indian ocean with 2.7sq million km EEZ
  • France has deployed forces in the islands of Indian ocean and Djibouti
  • 2018 partnership on ' Joint strategic vision of cooperation in the Indian ocean Region' - Mutual access to each other's military facilities.
  • 'Varuna'- Joint naval exercise in 2021, a Coordinated patrol(CORPAT) with a non-neighbour country by India for the first time.
  1.  Indo-France Nuclear cooperation
  • Tarapur Nuclear plant take over by France from US post 1974 Nuclear tests conducted by India
  • France didn't impose sanctions against India  post 1998 nuclear test - in contrast to the USA, Japan and other European countries.
  1. Military cooperation
  • France believes in strategic autonomy which is concurrent with India's Non-alignment policy.
  • 2005 Scorpene contract, 2016 Rafale deals and 2023 Rafale-M proposal are areas of military cooperation
  1. International Solar Alliance (ISA) launched at COP21 in Paris.
  2. Regional networks
  • Indian ocean Commission
  • Indian Ocean Naval Symposium
  • Indian Ocean Rim Association
  1. Trilateral forums
  • France-India-Australia dialogue
  • France-India- UAE

 

Analysis: 25th Anniversary of the India-France Strategic Partnership

India and France are long-standing strategic partners in the Indo-Pacific. Since the establishment of diplomatic relations between the two countries in 1947, and the upgrading of the partnership to the strategic level in 1998, our two countries have consistently acted together, building on a high level of mutual trust, shared commitment to the principles enshrined in the United Nations Charter and common values rooted in international law.

To mark the 25th anniversary of the Indo-French partnership, both countries agree to adopt a roadmap to set the course for the bilateral relationship up to 2047, which will celebrate the centenary of India’s independence, the centenary of the diplomatic relations between the two countries and 50 years of the strategic partnership.

India and France intend to work together in the interest of international peace and stability and reaffirm their commitment to a rules-based order in the Indo-Pacific and beyond. They agree to work within the framework of a partnership between equals, in consonance with their respective sovereign and strategic interests, as they have done since 1998. In order to further deepen this Strategic Partnership, and in keeping with universal values of liberty, equality, democracy and the rule of law, India and France have decided to strengthen cooperation in the sectors of the future, so as to reinforce their sovereignty and decision-making autonomy, and to respond together to the major challenges confronting our planet, including through the cooperation between India and the European Union.

 

Building sovereign defence capabilities together

1.1 France is one of India’s key partners in the development of a self-reliant defence industrial and technological base. India and France are committed to cooperating in the co-development and co-production of advanced defence technologies, including for the benefit of third countries.
1.2 In line with their outstanding cooperation in military aviation spanning over five decades, India and France welcome the timely delivery of the 36 Rafale ordered by India. They also support industrial cooperation for motorization of heavy-lift helicopters under the Indian Multi Role Helicopter [IMRH] programme with Safran Helicopter Engine, France.

1.3 India and France hail the success of the first Scorpene submarine construction programme (P75 – Kalvari), a model of Make in India and the sharing of naval expertise between companies in the two countries. India and France are ready to explore more ambitious projects to develop the Indian submarine fleet and its performance.

To this end, both countries are also working towards adopting a Roadmap on Defence Industrial Cooperation. In view of the uptick in defence industrial collaborations between the two countries, India is setting up a Technical Office of the DRDO at its Embassy in Paris.

 

Providing concrete solutions to make Indo-Pacific an area of stability and sustainable development

2.1 India and France are two Indo-Pacific nations that share a common vision on this crucial region. India and France are determined to strengthen the cooperation initiated under the Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region adopted in 2018 and have therefore adopted a new Indo-Pacific Roadmap. They are committed to work together to secure their own economic and security interests; ensure equal and free access to global commons; build partnerships of prosperity and sustainability in the region thanks to common development action; advance the rule of international law; work with others in the region and beyond and build a balanced and stable order in the region, with respect for sovereignty and territorial integrity. They have decided to give utmost attention and extend their cooperation to the Pacific, with the close involvement of the French territories of New Caledonia and French Polynesia. The French overseas territories in the Indian and Pacific Oceans, will play an important role in the Indo-Pacific partnership between the two countries.

2.2 Trilateral cooperation with like-minded partners in the region will be a key pillar of cooperation in the Indo-Pacific region in particular through the dialogue launched with the United Arab Emirates, a strategic partner for both countries, on February 4th, 2023 at ministerial level, as well as with Australia, launched in September 2020

 

Putting space at the heart of our strategic relationship

3.1 Access to space, space technologies and the development of services and applications using space data and capabilities are at the heart of our societies' innovation, scientific development and economic growth. India and France have decided to deepen their cooperation in all areas of the space sector by strengthening their programmes of common interests including:

Scientific and commercial partnership: CNES and ISRO will strengthen their partnership mainly around two structuring axes: climate and environment, with the development of the TRISHNA mission and activities within the Space Climate Observatory (SCO) on topics such as water resource management, marine resources and air quality monitoring; space exploration (Mars, Venus), maritime monitoring, launchers and manned flights in connection with India’s Gaganyaan programme. NSIL and Arianespace also plan to collaborate in commercial launch services.
Resilience of access to space: India and France will work to strengthen their synergies in terms of sovereign access to space and the development of forward-looking technologies to boost the resilience of access to space with involvement of their space industries.

India and France will also continue to engage through the recently institutionalised bilateral strategic space dialogue.

 

Analysis of India-France relations:

  • Characteristics: The relationship between the two countries is characterized by strategic autonomy, independent foreign policies, and a shared vision of a multipolar world.
  • Security objectives prominent: Unlike Indo-German relations, which are focused on trade, India and France prioritize security objectives.
    • France has helped India diversify its pool of arms suppliers beyond Russia and the US, especially when sanctions were imposed on India in the past.
  • Balancing China: The relationship aims to balance China’s influence in the Indian Ocean and have a shared concern about Chinese expansionism.
  • Multi-dimensional: The partnership between India and France has seen advancements through joint strategic visions, logistic support agreements, and military exercises in recent times

  

Dimensions of India-France Relations:

Dimensions

Description

Examples

Historical Relations

India and France had trade and cultural exchanges that can be traced back thousands of years. In the modern era, diplomatic relations between India and France were formally established in 1947 after India gained independence.

Strategic Dialogue

France became the first country to engage in a Strategic Dialogue with India following India’s nuclear tests in 1998. Unlike other nations, France chose not to impose bilateral sanctions on India and instead showed a deeper understanding of India’s security concerns.

Defence Cooperation

France was the second largest defence supplier for India in 2017- 2021.

·        Induction of French Scorpene submarines and Rafale fighter jets

·        Joint military exercises like Varuna (navy), Garuda (air force), and Shakti (army).

·        Joint manufacturing: Tata Group tied up with Airbus to manufacture C-295 tactical transport aircraft in Vadodara, Gujarat.

Economic Cooperation

Collaboration in sectors like manufacturing, infrastructure, and technology

·        Bilateral trade of over USD 12 billion in 2021-22.

·        France is the 11th largest foreign investor in India.

Civil Nuclear Cooperation

India and France inked a civil nuclear pact (2008) making France the first country to have such an agreement after the USA

·        France’s support in building six EPR (European Pressurized Reactors) nuclear power reactors (at Jaitpur, Maharastra)

·        Joint research and development in nuclear energy

Cooperation at International Forum

Collaboration on global issues and joint efforts in multilateral forums.

·        France’s support for India’s bid for permanent membership in the UN Security Council and Nuclear Suppliers Group.

·        Alignment on climate change, sustainable development, and counter-terrorism.

·        Joint initiatives like the International Solar Alliance.

Maritime Cooperation

Partnership in ensuring a free, open, and inclusive Indo-Pacific region.

·        India, France, UAE Trilateral Initiative is aimed at ensuring maritime domain awareness and security from the east coast of Africa to the far Pacific.

·        Indo-Pacific Trilateral Development Cooperation Fund (between India and France, September 2022)

Space Cooperation

Collaboration in space research, satellite technology, and exploration.

·        Joint working group between ISRO and CNES for enhanced cooperation e.g., planned Joint Mars Mission

·        Collaboration on satellite launches, Earth observation missions, and space debris management

·        Planned Joint Earth Observation Mission

Education and Cultural Exchanges

Promoting educational, academic, and cultural exchanges between India and France.

The agreement on mutual recognition of academic degrees and the follow-on Knowledge Summit

Environmental Cooperation

·        India and France launched the Indo-French Year of the Environment in January 2021 to strengthen cooperation on environmental issues.

·        Indo-French initiatives on green hydrogen, blue economy, and environmental research.

 

Challenges in the relationship:

India and France don’t have Free Trade Agreement, which limits the potential for increased trade and economic cooperation. Also, there is a trade imbalance in favour of France (France exporting more to India). Also, France has many times expressed concern on India’s stance at WTO, Climate summit and on India’s protection of intellectual property rights

 

Conclusion: While military cooperation remains important, the Indo-French relationship could expand beyond arms sales. Initiatives like the International Solar Alliance and exploring minilateral and multilateral cooperation in the Indo-Pacific could bring additional dimensions to their partnership.

 

Engel's law

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Engel's law

  • It states that, as income increases, the proportion of income spent on food decreases, even if absolute expenditure on food rises.
  • As the economy grows with increases income in the hands of the people, this trend can be witnessed.
  • This formed the basis for reduction in weightage of food in the CPI basket from 60.9 (1960) to 46.2 (2001).

Nature Restoration Law

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Nature Restoration Law

  • A biodiversity bill initiated by the European Commission in the EU Parliament was passed.
  • It aims to recover degraded ecosystems by reclamation of forested areas, marine habitats and growing birds, bees in the farmlands.
  • Indicates Europe's commitment to achieving green goals and climate adaptation goals.

Crawford Lake

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Crawford Lake

  • Location- Ontario in Canada
  • The lake's bottom sediments has provided evidence for beginning of Anthropocene epoch ( present geological time scale during which earth's ecosystem has degraded due to human activities especially after Industrial revolution)
  • The lake bottom sediments contained burned fossil fuels, exploded nuclear weapons, plastic and fertilizers dumped in the water bodies.

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