One Nation, One Election Framework (ONOE)

The ONOE proposal seeks to synchronize the Lok Sabha and State Assembly elections into a unified electoral cycle. Advocates argue for administrative and fiscal efficiencies, while opponents warn of impacts on India's democratic and federalist structure.

Historical Context

• In the early years post-Independence, simultaneous elections for Parliament and State Assemblies were standard.
• Disruptions began with the invocation of Article 356, or President’s Rule, first used in Kerala in 1959, indicating federal overreach.
• Article 356 was designed as a constitutional mechanism for restoring governance in troubled states but has been misused over 130 times since Independence.

Challenges Posed by ONOE

• Constitutional Amendments: To implement ONOE, amendments are required, particularly to Articles 83 and 172, which set five-year terms for Parliament and State Assemblies.
• Article 356 Misuse: The frequent misuse complicates ONOE implementation by potentially curtailing State governments' autonomy.
• Anti-Defection Law: The law lacks a time-bound framework for Speaker decisions and provisions for “group defections,” rendering it ineffective against political instability.

Federal Structure Risks

• ONOE might erode State autonomy by aligning them with the national election cycle, threatening the federal structure.
• Truncated government terms weaken the democratic principle of “one person, one vote, one value.”

Logistical and Operational Challenges

• The large voter base (over 900 million) would strain resources for simultaneous nationwide elections.
• Increased financial, administrative, and human capital costs need consideration against claimed efficiencies.
• Risks of voter fatigue and confusion exist, necessitating careful reflection before implementation.

Need for Systemic Reforms

• Addressing challenges like the misuse of Article 356 and strengthening anti-defection laws is crucial before ONOE adoption.
• Ensuring State governments remain equal partners in India's federal polity is essential for preserving the Constitution's spirit.

In conclusion, while ONOE promises administrative efficiencies, its potential threats to India's democratic and federal fabric necessitate cautious and comprehensive systemic reforms. True democratic governance extends beyond synchronized elections and demands commitment to federalism and strengthening State autonomy.

Logistics Index Chart 2024

The Logistics Index Chart, released by the Commerce and Industry Ministry, serves as an indicator of the efficiency of logistical services essential for promoting exports and economic growth.

Achievers

• Gujarat
• Karnataka
• Maharashtra
• Odisha
• Tamil Nadu
• Delhi
• Chandigarh
• Haryana
• Telangana
• Uttar Pradesh
• Uttarakhand
• Assam
• Arunachal Pradesh

Fast Movers

• Andhra Pradesh
• Goa
• Bihar
• Himachal Pradesh
• Madhya Pradesh
• Punjab
• Rajasthan
• Meghalaya
• Mizoram
• Nagaland
• Sikkim
• Tripura
• Dadra and Nagar Haveli and Daman and Diu
• Jammu and Kashmir
• Lakshadweep
• Puducherry

Aspirers

• Kerala
• West Bengal
• Chhattisgarh
• Jharkhand
• Andaman and Nicobar Islands
• Ladakh

Changes in Rankings

• Maharashtra, Odisha, Uttarakhand, and Arunachal Pradesh improved from 'Fast Movers' and 'Aspirers' in 2023 to 'Achievers' in 2024.
• Punjab has slipped from 'Achievers' to 'Fast Movers' in 2024.
• Andhra Pradesh has moved from 'Achievers' in 2023 to 'Fast Movers' in 2024.

India's Foreign Exchange Reserves Decline

India's foreign exchange reserves experienced a decline of $4.112 billion in the week ending December 27, totaling $640.279 billion. This decline is attributed to the Reserve Bank of India's interventions aimed at stabilizing the rupee, which has been retreating against the US dollar.

Key Factors and Statistics

• The current decline marks the fourth consecutive weekly fall in foreign exchange reserves.
• Since October, the reserves have decreased by over $60 billion.
• Heavy outflows of foreign institutional investment over the past two months have contributed to this decline.

Causes of Decline

• The Reserve Bank of India has been selling dollars from its reserves to slow the rupee's depreciation.
• The rupee has faced pressure as overseas investors seek safer havens and take dollars out of the country.
• The rupee closed at a new low of 85.78 against the dollar, marking a 1.3% depreciation over the month.

Impact of Global Currency Fluctuations

• The depreciation of reserves held in other global currencies such as the euro, pound, and yen has also affected the overall reserves as the US dollar has strengthened globally.

Historical Context

• The all-time high for India's forex reserves was $704.885 billion on September 27.
• Since achieving that peak, reserves have generally been depleting week after week, with some exceptions.

Current Respiratory Illness in China

The health ministry has addressed concerns regarding a new respiratory illness in China, emphasizing there is no immediate cause for alarm.

Situation Overview

• The illness is linked to the human metapneumovirus (HMPV), known to cause common cold-like symptoms.
• The government is actively monitoring the situation and has observed no significant increase in infections within the country.

Government's Preparedness

• According to Atul Goel, Director-General of Health Services, there is no substantial rise in respiratory outbreaks for December 2024.
• India is equipped to handle any potential increase in cases, with hospitals ready to manage respiratory virus outbreaks, especially common in winter.

Public Advisory

General precautions are advised to prevent the spread of respiratory infections:

• Avoid contact with others if experiencing cough or cold symptoms.
• Use a handkerchief or towel when coughing or sneezing.
• Take standard medications for cold or fever as needed.

Situation in China

• Reports and social media indicate overcrowded hospitals and overwhelmed crematoriums in China.

India-US Bilateral Trade Relations

Commerce Minister Piyush Goyal emphasized the Indian government's commitment to strengthening ties with the new US administration under President-elect Donald Trump.

• India has maintained strong bilateral relations with past US administrations under leaders like Barack Obama, Donald Trump, and Joe Biden.
• Concerns are present regarding potential tariffs from the US targeting India, along with China, Mexico, and Canada.

Impact on Indian Exports

• The Research and Information System for Developing Countries (RIS) warned of susceptibility in consumer goods exports, such as pharmaceuticals, gems and jewellery, and marine products, to US tariffs.
• India's exports in consumer goods to the US amounted to $26.6 billion, representing a significant portion of the bilateral trade valued at $29.5 billion.
• The US accounts for 18% of India's exports, a rise from 10% in 2010–11.
• India's export basket to the US encompasses textiles, electronics, and engineering.

Export Projections

Goyal expressed optimism despite global challenges, projecting exports will exceed $800 billion in FY25, an increase from $778 billion in the previous year.

Challenges for Developing Countries

Goyal noted the strain on developing and least developed countries (LDCs) due to the forex crisis and ongoing impacts from the COVID-19 pandemic.

Electric Vehicles (EVs) in India

Goyal highlighted advancements in the EV sector, stating companies agree no further subsidies are needed post the existing regime.

• EVs are supported under the Production Linked Incentive (PLI) scheme, approved with a budget of 25,938 crore for five years.
• EV sales in 2022 reached approximately 10 lakh units, with Tata Motors leading in passenger EVs.

Poverty Reduction in India

Poverty in rural areas of India has significantly declined to less than 5% for the first time, outpacing urban poverty reduction according to an analysis by SBI Research.. This trend is attributed to higher consumption growth among the bottom 0-5% decile, supported by government initiatives.

Key Statistics

• Rural poverty fell to 4.86% in 2023-24 from 7.2% in 2022-23 and 25.7% in 2011-12.
• Urban poverty decreased to 4.09% in 2023-24 from 4.6% in 2022-23 and 13.7% in 2011-12.
• The overall poverty rate in India now ranges from 4% to 4.5%, with minimal extreme poverty.

Potential Revisions

The report suggests that these figures might be revised following the completion of the 2021 census and updated urban-rural population data.

Urban-Rural Consumption Gap

• The consumption gap between urban and rural areas has narrowed from 83.9% in 2011-12 to 69.7% in 2023-24.

Government Initiatives

• Direct Benefit Transfer (DBT): Helped in increasing the consumption capability of rural populations.
• Investments in Rural Infrastructure: Contributed to economic growth and poverty reduction.
• Boosting Farmer's Income: Improved the living standards of rural farmers and reduced poverty levels.

Key Points from Digital Personal Data Protection Act of 2023 (DPDP)

The DPDP Act of 2023 mandates significant changes in the way data is handled, particularly focusing on children and data breaches.

Children's Privacy and Social Media Access

• Children under the age of 18 require verifiable parental consent to access social media.
• This regulation is aimed at protecting minors from unauthorized data usage.

Data Fiduciaries Classification

• Data fiduciaries are categorized into ecommerce companies, gaming intermediaries, and social media firms.
• These entities must delete personal data of inactive users after three years.

Data Breach Protocol

• Data fiduciaries must report data breaches to the Data Protection Board within 72 hours.
• Users must be informed of breaches in a concise, clear, and plain manner.
• Details provided should cover the nature, extent, and impact of the breach, along with risk mitigation measures.

Data Localisation and Protection Measures

• Future data localisation requirements may be introduced for significant data fiduciaries.
• Significant data fiduciaries are required to conduct an annual data protection impact assessment and audit.

Stakeholder Involvement and Comments

• The draft rules are open for stakeholder comments until February 18.

Expert Opinions

• Aparajita Bharti noted the draft gives direction for implementation and raised concerns about potential data localisation.
• Nehaa Chaudhari highlighted the flexible approach to parental consent as beneficial.

Increase in Student Enrolment in PM-SHRI Schools

Student enrolment has significantly increased in PM-SHRI schools, demonstrating a strong impact of the scheme on educational participation across selected states in India.

Statistics on Enrolment Increase

• The enrolment increased by 75.8% across 40 schools in five states: Manipur, Tripura, Rajasthan, Meghalaya, and Madhya Pradesh.
• Initial enrolment in these schools was 14,258 in 2020-21, rising to 25,065 in 2023-24.
• Individual school enrolment increases ranged from 49% to 295%.
• In Manipur, one school saw enrolment jump from 173 to 684, marking an increase of approximately 295%.

About the PM-SHRI Scheme

• The PM-SHRI (PM Schools for Rising India) scheme was approved in 2022.
• Aims to develop 14,500 schools nationwide to showcase the National Education Policy (NEP) 2020.
• Functions as exemplar schools and mentors for regional schools.
• Targets existing elementary, secondary, and senior secondary schools run by the Centre, state, or local government.
• So far, 12,084 schools have been selected under this scheme.

Current Implementation Status

• Three states - Kerala, Tamil Nadu, and West Bengal - have yet to sign a memorandum of understanding with the Ministry of Education to implement the PM-SHRI scheme.
• The increase in enrolment reflects a growing willingness among parents to send their children to government schools, seeing them as branded and of good quality.

India's Protest Against China's Territorial Claims

India has lodged a "solemn protest" with China over the establishment of two new counties in Hotan Prefecture, as parts of these regions fall within the Indian Union Territory of Ladakh.

India's Position on Sovereignty

• India maintains a long-standing and consistent position on its sovereignty over the area.
• The creation of new counties by China does not legitimize China's "illegal and forcible" occupation.
• External Affairs Ministry spokesperson Randhir Jaiswal emphasized India's non-acceptance of Chinese occupation.

Diplomatic Actions

• India has formally protested through diplomatic channels.
• Concerns were raised regarding the announcement made on December 25, 2024, by Xinhua about a hydropower project on the Yarlung Tsangpo River.
• India stressed the importance of transparency and consultation with downstream countries regarding mega projects on shared rivers.

Concerns Over Mega-dam Construction in Tibet

• China has approved a mega-dam on the Yarlung Tsangpo River, which could significantly impact the Brahmaputra River's flow into India.
• The dam is poised to generate three times more power than the Three Gorges Dam.
• There are geopolitical, environmental, and seismic concerns, especially with its location near Arunachal Pradesh.

Summary

India remains firm on its territorial claims, protesting China's actions in Ladakh and expressing concerns over potential impacts on the Brahmaputra River due to upcoming Chinese hydropower projects. Diplomatic engagements continue to ensure protection of India's interests.

Supreme Court Ruling on CBI and State Government Consent

The Supreme Court has delivered a significant verdict concerning the powers of the Central Bureau of Investigation (CBI) in relation to state government consent when investigating central officials.

Judgment Overview

• The CBI does not need the approval of state governments to register an FIR against Central officials posted in different states.
• This ruling overturns a previous decision by the Andhra Pradesh High Court.

Key Aspects of the Case

• Background: The case involved FIRs against central government employees under the Prevention of Corruption Act (PC Act) in Andhra Pradesh.
• Petitioner's Argument: The accused argued that the general consent given to the CBI by the undivided Andhra Pradesh was not applicable post-bifurcation, necessitating fresh consent from the newly formed Andhra Pradesh.
• High Court Decision: The Andhra Pradesh High Court had quashed the proceedings based on this argument.

Supreme Court's Interpretation

• The apex court stated that the consent of a state government is not required for the CBI to investigate central offences.
• The offenses in question were under central legislation and involved central government employees, making state consent unnecessary.
• The consent regime under Section 6 of the DSPE Act is not intended to hinder investigations into central offences merely because they occur within a state’s territorial boundaries.

Implications of the Judgment

• This ruling clarifies the scope of the CBI's authority in conducting investigations against central officials across states without needing state consent.
• It emphasizes the CBI's ability to operate under central legislation without state-imposed barriers.

18th Pravasi Bharatiya Divas (PBD) Programme

The 18th Pravasi Bharatiya Divas programme is slated to occur in Bhubaneswar from January 8 to 10.

Chief Guest

• Trinidad and Tobago President Christine Carla Kangaloo is the chief guest.
• President Kangaloo is a descendant of Indian indentured workers who migrated to the Caribbean in the late 1800s.
• Her professional background includes a legal career starting in the 1990s and entering politics in 2001.
• She has held various ministerial positions, covering portfolios such as legal affairs, and science and technology.

Pravasi Bharatiya Samman Awards

President Droupadi Murmu will present the Pravasi Bharatiya Samman during the valedictory session of the PBD Convention.

• The award recognizes the achievements of the Indian diaspora in multiple fields.
• Prominent awardees include:
   
  • Baroness Usha Kumari Prashar from the UK for her contributions in politics.
•  
  • Dr. Sharmila Ford from the US for community service.
•  
• Several institutions have also been recognized.

Selection Process

• The award recipients for the Pravasi Bharatiya Samman Award (PBSA) 2025 were recommended by a Jury-cum-Awards Committee.
• The PBSA is the highest honor bestowed upon overseas Indians.

Indo-Iran Bilateral Relationship Review

Foreign Secretary Vikram Misri and Iran's Deputy Foreign Minister, Majid Takht Ravanchi, conducted a review of the bilateral relationship between India and Iran during their meeting.

Discussion Topics

• Chabahar Port:
  The significance of Chabahar Port was underscored for its role in Afghanistan’s reconstruction and economic development.
• Agricultural Cooperation:
  Emphasis on enhancing agricultural ties between the two nations.
• Trade and Economic Issues:
  Discussions aimed at improving trade relations and addressing economic challenges.
• Cultural and People-to-People Ties:
  Focus on strengthening cultural exchanges and enhancing connections between the people of both countries.

Foreign Office Consultations (FOC)

The 19th India-Iran FOC was conducted in New Delhi, led by Foreign Secretary Misri and Majid Takht Ravanchi.

Regional and Global Developments

• Situations Discussed:
  • Afghanistan
  • West Asia
  • South Caucasus

Multilateral Cooperation

• Commitment Reaffirmed:
  • United Nations (UN)
  • BRICS
  • Shanghai Cooperation Organization (SCO)

Meeting with Jaishankar

Deputy FM Ravanchi also met with Jaishankar to discuss bilateral matters and regional challenges, with a focus on maintaining a high-level exchange momentum to strengthen cooperation.

National Stock Exchange IPO Performance in 2024

The National Stock Exchange (NSE) achieved a significant milestone in the calendar year 2024 (CY24) by hosting the highest number of initial public offerings (IPOs) in Asia.

IPO Statistics

• Total Listings: 268 across both mainboard and SME platform.
• Mainboard Listings: 90.
• SME Platform Listings (NSE's Emerge): 178.
• Total Funds Raised: Rs 1.67 trillion.

Key IPO Highlights

• Largest IPO: Hyundai Motor India's IPO, raising $3.3 billion.
• Global Comparison: The Hyundai IPO was the largest in India and the second-largest globally.

Global IPO Landscape

• Total Global IPOs in CY24: 1,145, compared to 1,271 in the previous year.
• NSE outperformed other top Asian exchanges in IPO numbers, including Japan Exchange Group, Hong Kong Stock Exchange, and Shanghai Stock Exchange.

International Fundraising Figures

• Nasdaq: $16.5 billion.
• NYSE: $15.9 billion.
• Hong Kong Stock Exchange: $10.4 billion.
• Shanghai Stock Exchange: $8.8 billion.

Forest Fire Season 2023-2024 in India

Key Statistics and Improvements

During the November 2023 to June 2024 forest fire season, significant improvements were observed in the management of major fires across India.

• 67% of major fires were extinguished within 24 hours.
• This demonstrates an improvement from the previous season's 33%.
• The enhancement is attributed to quicker information dissemination and enhanced coordination among response teams.

Fire Detection Data

• The total number of fires detected by the Forest Survey of India in 2023-24 was 2,03,544.
• In the 2022-23 season, the number was slightly higher at 2,12,249.

Regions with Highest Incidence

• Uttarakhand, Odisha, and Chhattisgarh were identified as regions with the highest record of forest fires.

Decline in Manufacturing Productivity

The manufacturing sector has witnessed a decline in productivity as indicated by the fall in Gross Value Added (GVA).

• GVA per establishment decreased by 6.7% in 2023-24 compared to 2022-23.
• GVA per worker fell by 4.2% over the same period.

This decline demonstrates reduced productivity at both organizational and individual levels, based on the Annual Survey of Unincorporated Sector (ASUSE).

Comparative Analysis with Previous Years

Despite the recent decline, a long-term comparison shows a significant rise in manufacturing productivity.

• Compared to 2015-16, GVA per establishment in manufacturing increased by 38.5%.
• GVA per worker rose by 51.7%, the highest among all sectors.

In the services sector, GVA per establishment increased by 24.4% and GVA per worker by 42%.

• In the trade sector, GVA per establishment grew by 40.5% and GVA per worker by 35.4% from 2015-16 to 2023-24.

However, in absolute terms, GVA per establishment and per worker in manufacturing are still lower than in trade and services.

Growth in Emoluments

Manufacturing recorded the highest growth in emoluments per hired worker between 2022-23 and 2023-24.

• There was a 16.1% increase in manufacturing.
• Other services and trade sectors experienced growth rates of 10.4% and 14%, respectively.

Factors Behind Productivity Decline

Pronab Sen, former chief statistician, has attributed the productivity decline in manufacturing to several factors:

• The emergence of new companies which typically have lower initial productivity.
• An increased share of own-account enterprises within the manufacturing sector, which grew to 88.3% in 2023-24 from 85.5% in 2015-16.