Start UP India :-
Startup India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Startups to grow through innovation and design.
Actions Plan:-
From digital/ technology sector to a wide array of sectors including agriculture, manufacturing, social sector, healthcare, education, etc
From existing tier 1 cities to tier 2 and tier 3 citites including semi-urban and rural areas
Simplification and Handholding
Funding Support and Incentives
Industry-Academia Partnership and Incubation
Compliance Regime based on Self-Certification:-
Objective
To reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance cost low.
Details:-
Startups shall be allowed to self-certify compliance (through the Startup mobile app) with 9 labour and environment laws (refer below). In case of the labour laws, no inspections will be conducted for a period of 3 years. Startups may be inspected on receipt of credible and verifiable complaint of violation, filed in writing and approved by at least one level senior to the inspecting officer.
Labour Laws:
• The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of
Service) Act, 1996
• The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979
• The Payment of Gratuity Act, 1972
• The Contract Labour (Regulation and Abolition) Act, 1970
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
• The Employees’ State Insurance Act, 1948
Environment Laws:
• The Water (Prevention & Control of Pollution) Act, 1974
• The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
• The Air (Prevention & Control of Pollution) Act, 1981
Startup India Hub:-
Objective:-
To create a single point of contact for the entire Startup ecosystem and enable knowledge exchange and access to funding
Details :-
The “Startup India Hub” will be a key stakeholder in this vibrant ecosystem and will:-
• Work in a hub and spoke model and collaborate with Central & State governments, Indian and foreign VCs, angel networks, banks, incubators, legal partners, consultants, universities and R&D
institutions
• Assist Startups through their lifecycle with specific focus on important aspects like obtaining financing, feasibility testing, business structuring advisory, enhancement of marketing skills,
technology commercialization and management evaluation
• Organize mentorship programs in collaboration with government organizations, incubation centers, educational institutions and private organizations who aspire to foster innovation.
Rolling-out of Mobile App and Portal:-
Objective:-
To serve as the single platform for Startups for interacting with Government and Regulatory Institutions for all business needs and information exchange among various stakeholders
Details :-
• Registering Startups with relevant agencies of the Government. A simple form shall be made available for the same. The Mobile App shall have backend integration with Ministry of Corporate Affairs and Registrar of Firms for seamless information exchange and processing of the registration application
• Tracking the status of the registration application and anytime downloading of the registration certificate. A digital version of the final registration certificate shall be made available for downloading through the Mobile App
• Filing for compliances and obtaining information on various clearances/ approvals/ registrations required
• Collaborating with various Startup ecosystem partners. The App shall provide a collaborative platform with a national network of stakeholders (including venture funds, incubators, academia, mentors etc.) of the Startup ecosystem to have discussions towards enhancing and bolstering the ecosystem
• Applying for various schemes being undertaken under the Startup India Action Plan
Legal Support and Fast-tracking Patent Examination at Lower Costs
Objective:-
To promote awareness and adoption of IPRs by Startups and facilitate them in protecting and commercializing the IPRs by providing access to high quality Intellectual Property services and resources, including fast-track examination of patent applications and rebate in fees.
Details :-
• Fast-tracking of Startup patent applications: The valuation of any innovation goes up immensely, once it gets the protective cover of a patent. To this end, the patent application of Startups shall be fast-tracked for examination and disposal, so that they can realize the value of their IPRs at the earliest possible.
• Panel of facilitators to assist in filing of IP applications: For effective implementation of the scheme, a panel of “facilitators” shall be empanelled by the Controller General of Patents, Designs and Trademarks (CGPDTM), who shall also regulate their conduct and functions. Facilitators will be responsible for providing general advisory on different IPRs as also information on protecting and promoting IPRs in other countries. They shall also provide assistance in filing and disposal of the IP applications related to patents, trademarks and designs under relevant Acts, including appearing on behalf of Startups at hearings and contesting opposition, if any, by other parties, till final disposal of the IPR application.
• Government to bear facilitation cost: Under this scheme, the Central Government shall bear the entire fees of the facilitators for any number of patents, trademarks or designs that a Startup may file, and the Startups shall bear the cost of only the statutory fees payable.
• Rebate on filing of application: Startups shall be provided an 80% rebate in filing of patents vis-a-vis other companies. This will help them pare costs in the crucial formative years.
Relaxed Norms of Public Procurement for Startups
Objective:-
To provide an equal platform to Startups (in the manufacturing sector) vis-à-vis the experienced entrepreneurs/ companies in public procurement
Details:-
Typically, whenever a tender is floated by a Government entity or by a PSU, very often the eligibility condition specifies either “prior experience” or “prior turnover”. Such a stipulation prohibits/ impedes Startups from participating in such tenders.
In order to promote Startups, Government shall exempt Startups (in the manufacturing sector) from the criteria of “prior experience/ turnover” without any relaxation in quality standards or technical parameters. The Startups will also have to demonstrate requisite capability to execute the project as per the requirements and should have their own manufacturing facility in India.
Faster Exit for Startups
Objective:-
To make it easier for Startups to wind up operations
Details:-
Given the innovative nature of Startups, a significant percentage fail to succeed. In the event of a business failure, it is critical to reallocate capital and resources to more productive avenues and accordingly a swift and simple process has been proposed for Startups to wind-up operations. This will promote entrepreneurs to experiment with new and innovative ideas, without having the fear of facing a complex and long-drawn exit process where their capital remain interminably stuck.
The Insolvency and Bankruptcy Bill 2015 (“IBB”), tabled in the Lok Sabha in December 2015 has provisions for the fast track and / or voluntary closure of businesses.
In terms of the IBB, Startups with simple debt structures or those meeting such criteria as may be specified may be wound up within a period of 90 days from making of an application for winding up on a fast track basis.This process will respect the concept of limited liability.
Providing Funding Support through a Fund of Funds with a Corpus of INR 10,000 crore
Objective:-
To provide funding support for development and growth of innovation driven enterprises
Details :-
• The Fund of Funds shall be managed by a Board with private professionals drawn from industry bodies, academia, and successful Startups
• Life Insurance Corporation (LIC) shall be a co-investor in the Fund of Funds
• The Fund of Funds shall contribute to a maximum of 50% of the stated daughter fund size. In order to be able to receive the contribution, the daughter fund should have already raised the balance 50% or more of the stated fund size as the case maybe. The Fund of Funds shall have representation on the governance structure/ board of the venture fund based on the contribution
made.
• The Fund shall ensure support to a broad mix of sectors such as manufacturing, agriculture, health, education, etc.
Credit Guarantee Fund for Startups
Objective
To catalyse enterpreneurship by providing credit to innovators accross all sections of society
Details
In order to overcome traditional Indian stigma associated with failure of Startup enterprises in general and to encourage experimentation among Startup entrepreneurs through disruptive business models, credit guarantee comfort would help flow of Venture Debt from the formal Banking System.
Debt funding to Startups is also perceived as high risk area and to encourage Banks and other Lenders to provide Venture Debts to Startups, Credit guarantee mechanism through National Credit Guarantee Trust Company (NCGTC)/ SIDBI is being envisaged with a budgetary Corpus of INR 500 crore per year for the next four years.
Tax Exemption on Capital Gains
Objective
To promote investments into Startups by mobilizing the capital gains arising from sale of capital assets
Details
Due to their high risk nature, Startups are not able to attract investment in their initial stage. It is therefore important that suitable incentives are provided to investors for investing in the Startup ecosystem. With this objective, exemption shall be given to persons who have capital gains during the year, if they have invested such capital gains in the Fund of Funds recognized by the Government.
Tax Exemption to Startups for 3 years
Objective
To promote the growth of Startups and address working capital requirements
Details
Innovation is the essence of every Startup. Young minds kindle new ideas every day to think beyond conventional strategies of the existing corporate world. During the initial years, budding entrepreneurs struggle to evaluate the feasibility of their business idea.
Significant capital investment is made in embracing ever-changing technology, fighting rising competition and navigating through the unique challenges arising from their venture. Also, there are
limited alternative sources of finance available to the small and growing entrepreneurs, leading to constrained cash funds.
With a view to stimulate the development of Startups in India and provide them a competitive platform, it is imperative that the profits of Startup initiatives are exempted from income-tax for a period of 3 years.
Tax Exemption on Investments above Fair Market Value
Objective
To encourage seed-capital investment in Startups
Details
Under The Income Tax Act, 1961, where a Startup (company) receives any consideration for issue of shares which exceeds the Fair Market Value (FMV) of such shares, such excess consideration is taxable in the hands of recipient as Income from Other Sources.
Currently, investment by venture capital funds in Startups is exempted from operations of this provision. The same shall be extended to investment made by incubators in the Startups.
Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform
Objective
To galvanize the Startup ecosystem and to provide national and international visibility to the Startup ecosystem in India
Details
• Hold one fest at the national level annually to enable all the stakeholders of Startup ecosystem to come together on one platform.
• Hold one fest at the international level annually in an international city known for its Startup ecosystem.
The fests shall have activities such as sessions to connect with investors, mentors, incubators and Startups, showcasing innovations, exhibitions and product launches, pitches by Startups, mentoring sessions, curated Startup walks, talks by disruptive innovators, competitions such as Hackathon, Makerspace, etc., announcements of rewards and recognitions, panels and conferences with industry leaders, etc
Launch of Atal Innovation Mission (AIM) with Self-Employment and Talent Utilization (SETU) Program
Objective
To serve as a platform for promotion of world-class Innovation Hubs, Grand Challenges, Startup businesses and other self-employment activities, particularly in technology driven areas
Details
The Atal Innovation Mission (AIM) shall have two core functions:
• Entrepreneurship promotion through Self-Employment and Talent Utilization (SETU), wherein innovators would be supported and mentored to become successful entrepreneurs
• Innovation promotion: to provide a platform where innovative ideas are generated
Entrepreneurship promotion:
• Establishment of sector specific Incubators including in PPP mode • Establishment of 500 Tinkering Labs
• Pre-incubation training to potential entrepreneurs in various technology areas in collaboration with various academic institutions having expertise in the field
• Strengthening of incubation facilities in existing incubators and mentoring of Startups
• Seed funding to potentially successful and high growth Startups
Innovation promotion:
• Institution of Innovation Awards (3 per state/UT) and 3 National level awards
• Providing support to State Innovation Councils for awareness creation and organizing state level workshops/conferences
• Launch of Grand Innovation Challenge Awards for finding ultra-low cost solutions to India’s pressing and intractable problems
Harnessing Private Sector Expertise for Incubator Setup
Objective
To ensure professional management of Government sponsored / funded incubators, Government will create a policy and framework for setting-up of incubators across the country in
public private partnership.
Details
India currently lacks availability of incubation facilities across various parts of the country. Incubation facilities typically include physical infrastructure, provision of mentorship support, access to
networks, access to market, etc. Of all these features, physical infrastructure entails large capital investments which can generally be facilitated by the Government. However, requisite skills for
operating an incubator are pivotal as well, for which expertise of the private sector needs to be leveraged.
Considering this, Government shall encourage setting up of;
• 35 new incubators in existing institutions. Funding support of 40% (subject to a maximum of INR 10 crore) shall be provided by Central Government for establishment of new incubators for which 40% funding by the respective State Government and 20% funding by the private sector has been committed. The incubator shall be managed and operated by the private sector.
• 35 new private sector incubators. A grant of 50% (subject to a maximum of INR 10 crore) shall be provided by Central Government for incubators established by private sector in existing institutions. The incubator shall be managed and operated by the private sector.
The funding for setting up of the incubators shall be provided by NITI Aayog as part of Atal Innovation Mission
Building Innovation Centres at National Institutes
Objective
To propel successful innovation through augmentation of incubation and R&D efforts
Details
In order to augment the incubation and R&D efforts in the country, the Government will set up/ scale up 31 centres (to provide facilities for over 1,200 new Startups) of innovation and entrepreneurship at national institutes.
Setting up of 7 New Research Parks Modeled on the Research Park Setup at IIT Madras
Objective
To propel successful innovation through incubation and joint R&D efforts between academia and
Promoting Startups in the Biotechnology Sector
Objectives
To foster and facilitate bio-entrepreneurship
Details
The Biotechnology sector in India is on a strong, growth trajectory. Department of Biotechnology endeavors to scale up the number of Startups in the sector by nurturing approximately 300-500 new Startups each year to have around 2,000 Startups by 2020.
In order to promote Startups in the sector, The Department of Biotechnology shall be implementing the following measures along with its Public Sector Undertaking Biotechnology Research Assistance Council (BIRAC):
Bio-incubators, Seed Fund and Equity Funding:
• 5 new Bio-clusters, 50 new Bio-Incubators, 150 technology transfer offices and 20 Bio-Connect offices will be set up in research institutes and universities across India.
• Biotech Equity Fund – BIRAC AcE Fund in partnership with National and Global Equity Funds (Bharat Fund, India Aspiration Fund amongst others) will provide financial assistance to young Biotech Startups.
Encouraging and leveraging global partnerships:
• Bengaluru-Boston Biotech Gateway to India has been formed. Through this initiative, a range of institutes in Boston (Harvard/ MIT) and Bengaluru will be able to connect to
share ideas and mentor the entrepreneurs especially in the areas of Genomics, Computational Biology, Drug Discovery and new vaccines.
• Amplification of Bio-entrepreneurship through BIRAC Regional Entrepreneurship Centres (BREC). The BREC aims to impart bio-entrepreneurs with the necessary knowledge and skills required for converting innovative ideas into successful ventures. Department of Biotechnology shall set up 5 Regional centres or Mini-BIRACs in the next 5 years.
Launching of Innovation Focused Programs for Students
Objective
To foster a culture of innovation in the field of Science and Technology amongst students
Details
Innovation Core. Innovation Core program shall be initiated to target school kids with an outreach to 10 lakh innovations from 5 lakh schools.
NIDHI: A Grand Challenge program (“National Initiative for Developing and Harnessing Innovations) shall be instituted through Innovation and Entrepreneurship Development Centres (IEDCs) to support and award INR 10 lakhs to 20 student innovations from IEDCs.
Uchhattar Avishkar Yojana: A joint MHRD-DST scheme which has earmarked INR 250 crore per annum towards fostering “very high quality” research amongst IIT students
Annual Incubator Grand Challenge
Objective
To support creation of successful world class incubators in India
Definition of Startup (only for the purpose of Government schemes) :-
Startup means an entity, incorporated or registered in India not prior to five years, with annual turnover not exceeding INR 25 crore in any preceding financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
Provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence.
Provided also that an entity shall cease to be a Startup if its turnover for the previous financial years has exceeded INR 25 crore or it has completed 5 years from the date of incorporation/ registration
Provided further that a Startup shall be eligible for tax benefits only after it has obtained certification from the Inter-Ministerial Board, setup for such purpose
Inter-Ministerial Board
An Inter-Ministerial Board setup by DIPP to validate the innovative nature of the business for granting tax related benefits
Most Indians are healthier, says govt health survey
- Results from the first phase of the National Family Health Survey (NFHS-4) 2015-16 show that child malnutrition, as well as maternal mortality rates, have declined significantly in the 13 states—including the populous states of Bihar, Madhya Pradesh, West Bengal, Haryana and Tamil Nadu—and two union territories that the first phase covered
- Almost all mothers have received antenatal care for their most recent pregnancies, and an increasing number of women are receiving the recommended four or more visits by the service providers.
- More and more women now give birth in healthcare facilities, and rates have more than doubled in some states in the last decade.
- Poor nutrition is less common than reported in the last round of the National Family Health Survey. Fewer children under five years of age are now found to be stunted, showing intake of improved nutrition.
- While almost all states depict a decline in fertility rates, the survey also shows a decline in use of family planning methods, which is puzzling in itself.(The total fertility rate represents number of children born per woman.)
Solar Power: truth versus hype
Background :-
Before the Paris climate summit, India had pledged to increase its share of non-fossil fuels to 40% of the total power generation capacity by 2032.
Keeping in mind India’s high import dependence and chronic energy poverty, it is imperative that solar energy should be given impetus.
The tariff for solar power has fallen from Rs.18 per unit a few years ago to an unprecedented level of below Rs.5 per unit—a big step in promoting clean energy. However, one must look critically at the reasons behind the massive cost reduction of solar cells and modules, along with the techno-economic feasibility of India’s solar ambitions.
Details:-
Unfortunately, the reduction in the cost of solar power is not the result of a technological breakthrough in terms of enhanced conversion efficiency, but due to the dumping of cheap imported solar cells and modules by foreign cell manufacturers who enjoy massive state subsidies to practise predatory pricing and, thereby, destroy the domestic solar industry.
High import dependence on solar cells and modules has its own ramifications on India’s energy security. While solar power developers in India are bidding aggressively, they are not leaving enough room for cost escalation.
Further, a massive injection of solar power of the scale envisaged may perturb grid stability. Solar farms, unlike coal and nuclear power plants, cannot deliver the same amount of continuous electricity. To maintain grid frequency, grid operators must be able to predict precisely what the solar energy input at any given hour will be.
But such an exact prediction every time is impossible. A small error in judgment will trigger frequency fluctuations and, thereby, instability in the grid. Moreover, India needs to have massive backup power plants and a delicate balance between base and peak load power plants when power from solar energy would not be available
Massive land requirements to erect solar panels amplify the issues further. A 1 megawatt (MW) solar photovoltaic (PV) power plant should require around 2.5 acres. However, owing to the fact that large ground-mounted solar PV farms require space for other accessories, the total land required for a 1 MW of solar PV power plant would be around 4 acres. So investment in solar power must provide for a mammoth hidden cost.
Even from the environmental standpoint, while solar power plants involve much lower carbon emissions over their lifecycle than coal-based plants, solar power is not entirely clean. Manufacturing a PV solar cell requires huge amount of energy, starting from the mining of quartz sand to coating the cell with ethylene-vinyl acetate—most often derived from the burning of dirty fossil fuels.
While there is no carbon emission associated with the generation of electricity from solar energy, there are emissions associated with various stages of the PV lifecycle, including the extraction of raw materials, production of materials, module manufacture, and system and plant component manufacture.
Germany’s solar experience
Solar power is still the least efficient among Germany’s other renewable energy technologies, but 50% of total green energy subsides go to solar power.To address unaffordable and unreliable solar power, which increases power tariff and government subsidies, Germany renewed its focus on renewable technologies.
German industries have repeatedly expressed concern that the rapid and costly expansion of renewables could undermine the strength of the country’s industrial base, ultimately putting 800,000 jobs at risk.
High usage of solar and other renewable energies is also causing instability to Germany’s electric grid, which prompted industrial consumers to purchase generators and other emergency backup systems to protect equipment from being damaged during disruptions.
Way Forward
India must explore all supply options, which include conventional and renewable energies like solar, wind, small hydro and biomass, to bridge the burgeoning demand-supply gap.
The focus should be on cleaner coal technologies along with nuclear power for India’s base load power generation. Cleaner coal technologies like super and ultra-supercritical combustion as well as coal-to-gas have the capability to minimize the emission of greenhouse gases from thermal plants due to their higher thermal efficiency. Domestic coal should be our major source in order to make energy affordable
It is also important to accelerate India’s three-stage nuclear programmes so that we can utilize our vast thorium reserves to produce electricity at stage three.
However, given the initial difficulties with solar power , it must not discarded or side-lined, the major challenge is the technology and once innovation sets in solar power can substantially contribute to India’s energy mix.What we need is a cautious approach that encompasses – affordable cost, decentralized solar harnessing , grid stability and innovation . It is a good start but has a long way to go in order to challenge the conventional power sources.
Slowing Dragon and Steady Tiger (China and India – Economic outlook ):-
China’s economy grew at its slowest pace in a quarter of a century last year, raising expectations of a further devaluation of the yuan to boost its exports—a move that may erode India’s export competitiveness and fuel currency-market volatility.
Separately, the International Monetary Fund (IMF) recently kept its growth forecast for India unchanged at 7.5% in 2016-17 and lowered its global growth projection in an update to the World Economic Outlook (WEO) released in October, maintaining that China remains a source of uncertainty.
China grew 6.9% in 2015 after fourth-quarter expansion slowed to 6.8%, capping a tumultuous year in which the world’s second-largest economy was hit by capital outflows and a summer stocks crash.
For long a driver of global growth, the rapid slowing of the Chinese economy is triggering fears of a fresh global setback.IMF kept China’s growth projection unchanged at 6.3% in 2016, but lowered its global growth forecast to 3.4% from the October projection of 3.6% for the same year.
India is projected to remain the fastest growing major economy for the second year in a row. To be sure, the Chinese economy, at $10.4 trillion, is little over five times the size of the Indian economy, estimated at $1.9 trillion in 2014-15.
India and the rest of emerging Asia are generally projected to continue growing at a robust pace, although with some countries facing strong headwinds from China’s economic rebalancing and global manufacturing weakness,as stated by IMF
Spillovers from China to the rest of the world are quite significant, both through their demands for imports and on the effect on commodity prices. That contributes to the volatility.
India’s exports contracted for the 13th time in a row in December, due to tepid global demand and a volatile global currency market.
IMF warned that downside risks such as a sharper-than-expected slowdown in China’s growth, tighter global financial conditions as the US exits from an easy monetary policy, a sudden rise in global risk aversion and an escalation of current geo-political tensions could derail the slow global economic recovery.
Analysis:- Any desperate attempt by China to devalue Yuan further will hurt Indian exports , however there is stress-relief too , becasue economic infrastructure of China and India are little different – One is a manufacturing hub and one is a service hub, hence devalue will hurt Indian manufacturing not service ,significantly .As India is not tapped in to China’s global supply chain set up significantly , hence there is a room for breather .But to overcome this , Indian manufacturing has to be competitive enough and should enlarge it’s market beyond the the West- but that is a long term goal which requires restructuring of fundamental of our manufacturing sector.
Source- GOI website, Thehindu,Livemint,Pib etc
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Recent Posts
- Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition, a collective of the United States, United Kingdom and Norway governments, came up with a $1 billion fund.
- LEAF is supported by transnational corporations (TNCs) like Unilever plc, Amazon.com, Inc, Nestle, Airbnb, Inc as well as Emergent, a US-based non-profit.
- The world lost more than 10 million hectares of primary tropical forest cover last year, an area roughly the size of Switzerland.
- Ending tropical and subtropical forest loss by 2030 is a crucial part of meeting global climate, biodiversity and sustainable development goals. Protecting tropical forests offers one of the biggest opportunities for climate action in the coming decade.
- Tropical forests are massive carbon sinks and by investing in their protection, public and private players are likely to stock up on their carbon credits.
- The LEAF coalition initiative is a step towards concretising the aims and objectives of the Reducing Emissions from Deforestation and Forest Degradation (REDD+) mechanism.
- REDD+ was created by the United Nations Framework Convention on Climate Change (UNFCCC). It monetised the value of carbon locked up in the tropical forests of most developing countries, thereby propelling these countries to help mitigate climate change.
- It is a unique initiative as it seeks to help developing countries in battling the double-edged sword of development versus ecological commitment.
- The initiative comes at a crucial time. The tropics have lost close to 12.2 million hectares (mha) of tree cover last year according to global estimates released by Global Forest Watch.
- Of this, a loss of 4.2 mha occurred within humid tropical primary forests alone. It should come as no surprise that most of these lost forests were located in the developing countries of Latin America, Africa and South Asia.
- Brazil has fared dismally on the parameter of ‘annual primary forest loss’ among all countries. It has lost 1.7 mha of primary forests that are rich storehouse of carbon. India’s estimated loss in 2020 stands at 20.8 kilo hectares.
- Between 2002-2020, Brazil’s total area of humid primary forest reduced by 7.7 per cent while India’s reduced by 3.4 per cent.
- Although the loss in India is not as drastic as in Brazil, its position is nevertheless precarious. For India, this loss is equivalent to 951 metric tonnes worth carbon dioxide emissions released in the atmosphere.
- It is important to draw comparisons between Brazil and India as both countries have adopted a rather lackadaisical attitude towards deforestation-induced climate change. The Brazilian government hardly did anything to control the massive fires that gutted the Amazon rainforest in 2019.
- It is mostly around May that forest fires peak in India. However, this year India, witnessed massive forest fires in early March in states like Odisha, Uttarakhand, Madhya Pradesh and Mizoram among others.
- The European Union’s Copernicus Atmospheric Monitoring Service claimed that 0.2 metric tonnes of carbon was emitted in the Uttarakhand forest fires.
- Implementation of the LEAF Coalition plan will help pump in fresh rigour among developing countries like India, that are reluctant to recognise the contributions of their forest dwelling populations in mitigating climate change.
- With the deadline for proposal submission fast approaching, India needs to act swiftly on a revised strategy.
- Although India has pledged to carry out its REDD+ commitments, it is impossible to do so without seeking knowledge from its forest dwelling population.
- providing Dominion Status to India, i.e., equal partnership of the British Commonwealth of Nations;
- all Provinces (ruled by the British India government) and Indian States (ruled by Indian princes) should constitute one Indian Union by the British Constitution;
- the Constitution of India should be framed by an elected Constituent Assembly of Indian people but if any province (or Indian State) which was not prepared to accept the Constitution was to be free to retain its constitutional position which had existed at that time.
- Such provinces were to be free to enter separate constitutional arrangements.
- there should a Union of India consisting of British India and the States, which would have jurisdiction over subjects of Foreign Affairs, Defense and Communication;
- all residuary powers would belong to the Provinces and the States;
- the Union would have Executive and Legislature consisting of the representatives from the Provinces and the States but for decision relating to a major communal issue in the legislature a majority of representatives of two major communities would be present, and voting along with the majority of all members present and voting would be required;
- the provinces would be free to form Groups with executives and legislatures;
- and each group would be free to determine the Provincial Subjects which would be taken up by the Group organisation.
Context:-
At the recently concluded Leaders’ Summit on Climate in April 2021, Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition, a collective of the United States, United Kingdom and Norway governments, came up with a $1 billion fund plan that shall be offered to countries committed to arrest the decline of their tropical forests by 2030.
[wptelegram-join-channel link=”https://t.me/s/upsctree” text=”Join @upsctree on Telegram”]What is LEAF Coalition?
Why LEAF Coalition?
Brazil & India
According to the UN-REDD programme, after the energy sector, deforestation accounts for massive carbon emissions — close to 11 per cent — in the atmosphere. Rapid urbanisation and commercialisation of forest produce are the main causes behind rampant deforestation across tropical forests.
Tribes, Forests and Government
Disregarding climate change as a valid excuse for the fires, Indian government officials were quick to lay the blame for deforestation on activities of forest dwellers and even labelled them “mischievous elements” and “unwanted elements”.
Policy makers around the world have emphasised the role of indigenous tribes and local communities in checking deforestation. These communities depend on forests for their survival as well as livelihood. Hence, they understand the need to protect forests. However, by posing legitimate environmental concerns as obstacles to real development, governments of developing countries swiftly avoid protection of forests and rights of forest dwellers.
For instance, the Government of India has not been forthcoming in recognising the socio-economic, civil, political or even cultural rights of forest dwellers. According to data from the Union Ministry of Tribal Affairs in December, 2020 over 55 per cent of this population has still not been granted either individual or community ownership of their lands.
To make matters worse, the government has undertaken systematic and sustained measures to render the landmark Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 ineffective in its implementation. The Act had sought to legitimise claims of forest dwellers on occupied forest land.
Various government decisions have seriously undermined the position of indigenous people within India. These include proposing amendments to the obsolete Indian Forest Act, 1927 that give forest officials the power to take away forest dwellers’ rights and to even use firearms with impunity.
There is also the Supreme Court’s order of February, 2019 directing state governments to evict illegal encroachers of forest land or millions of forest dwellers inhabiting forests since generations as a measure to conserve wildlife. Finally, there is the lack of data on novel coronavirus disease (COVID-19) deaths among the forest dwelling population;
Tardy administration, insufficient supervision, apathetic attitude and a lack of political intent defeat the cause of forest dwelling populations in India, thereby directly affecting efforts at arresting deforestation.
Way Forward
Tuntiak Katan, a global indigenous leader from Ecuador and general coordinator of the Global Alliance of Territorial Communities, aptly indicated the next steps at the Climate Summit:
“The first step is recognition of land rights. The second step is the recognition of the contributions of local communities and indigenous communities, meaning the contributions of indigenous peoples.We also need recognition of traditional knowledge practices in order to fight climate change”
Perhaps India can begin by taking the first step.
INTRODUCTION:-
The Constitution of India was adopted on 26 November 1949, which means it was finalised by the Constituent Assembly on that day. But it became operative two months after its adoption, i.e., on 26 January 1950, which is also known as the date of its “commencement”.
[wptelegram-join-channel link=”https://t.me/s/upsctree” text=”Join @upsctree on Telegram”]However, some provisions of it, i.e., those relating to citizenship, elections, provisional Parliament, temporary and transitional provisions had become operative on 26 November 1949 itself. The reason for its commencement after two months of its adoption was to signify the January 26 as the original date of achievement of Independence.
It was this day, i.e. 26th January, in 1930 which the Indian National Congress (INC) had first celebrated as the Independence Day of India. It is important to note that the Constitution of India is product of a longdrawn process and deliberations.
EVOLUTION OF THE INDIAN CONSTITUTION 1858-1935
The Constitution of India embodies provisions providing basic democratic rights of human beings including the persons who are not Indian citizens. It also embodies provisions for the availability of institutions for legislation, execution and jurisdiction for the fulfilment these rights.
It presents a vision for social transformation and deepening of democracy in India. The process of evolution of democratic institutions and rights had started much before the Constituent Assembly really made the Constitution of India.
It, however, must be underlined that the features of democratic institutions and values which were introduced during the colonial period were meant to serve the colonial interests in contrast to the purpose of the provisions of the Constitution made by the Constituent Assembly of India.
Although the Indian Constitution was result of the deliberations (from December 9, 1947 to November 26, 1949) of the Constituent Assembly, some of its features had evolved over three quarters of a century through various Acts, i.e., from 1858 to 1935.
The Government of India Act, 1935, and Other Acts
With the transfer of power from the East India Company to the British Crown, the British Parliament got involved in managing affairs of India. For achieving this purpose, from 1858 till 1935, the colonial government introduced certain features of constitution or rules of governance through different Acts. The Government of India Act, 1935 was the most important among these Acts.
First of these other Acts was Government of India Act, 1858. It provided for a combination of centralised and decetralised power structure to govern India. The centralised structure was introduced in the areas which were under the direct control of the Crown. These areas were known as British India provinces or provinces. The decentralized structure was introduced in the areas which were not under the direct control of the Crown. These areas were ruled by the Indian princes, and were known as princely states or states.
Under this system, the princes had freedom to govern in all internal matters of their princely states, but they were subject to the British control. In the centralized structure of power which was introduced in the provinces, all powers to govern India vested in the Secretary of State for India (and through him in the Crown). He acted on behalf of the Crown.
He was assisted by a fifteen-member council of ministers.There did not exist separation of executive, legislative and judicial functions of government; these all were concentrated in the hands of the Secretary of State for India. In British India, the Secretary of State of India was assisted by the Viceroy, who was assisted by an executive council.
At the district level, the viceroy was assisted by a small number of British administrators. The provincial government did not have financial autonomy. In 1870 viceroy Lord Mayo ensured that all parts of provincial administration received due share of revenue to meet their needs.
The scope of political institutions in the provinces was expanded a little further following the introduction of Council of India Act, 1909. This Act introduced for the first time a “representative element” in British India, which included elected non-official members.This Act also introduced separate representation to Muslim community.
The Government of India Act 1919 devolved some authority to the provincial governments, retaining the control of the central government (unitary government) on them.It relaxed the control of the central government in a limited way. It divided the subjects for jurisdiction of administration and sources of revenue between centre and provinces.
Under this arrangement, the provincial government was given control on resources of revenue such as land, irrigation and judicial stamps. The provincial subjects were divided into “transferred’ and “reserved” categories.
The “transferred” subjects were governed by the governor, and “reserved” subjects were governed by the legislature. The governor (executive head) was not accountable to the legislature.
The Government of India Act, 1935 was different from the earlier Government of India Acts. Unlike the earlier Acts, the Government of India Act, 1935 also provided for provincial government enjoying provincial autonomy. It provided “safeguards” for minorities.
Such “safeguards” included provisions for separate representations to Muslims, Sikhs, the Europeans, Indian Christians and Anglo-Indians. This Act also provided for three lists of divisions of power between the federation (central government) and provinces: federal (central), concurrent and provincial.
The Act also provided for establishment of a federal court to adjudicate disputes between federation and provinces. The executive head of the provincial government was Governor, who enjoyed special power. Under the special power the Governor could veto the decisions of the provincial legislature.
He acted on behalf of the Crown, and was not a subordinate of the Governor-General (the changed designation of Viceroy). He enjoyed discretionary powers to exercise his “individual judgments” in certain matters. In such matters, he did not need to work under the advice of ministers: he was to act under the control of the Governor-General, and indeed the Secretary of the State.
He was also not accountable to the legislature but he was required to act on the advice of ministers, who were accountable to the legislature.
Government of India Act, 1935 also had provisions for setting up a central government consisting of representatives from the provinces(areas ruled by the British India government) and the states (the areas covered under princely states).Such government was supposed to be known as federal government because of composition with members both from provinces and the states.
However, the federal government could not be formed because there was no unanimity among the princes to join the federation; consent of all princes was essential for the formation of federation. Thus, only the provincial governments could be formed as per this Act.
And election to the provincial legislature as per the Government of India Act, 1935 was held in 1937. Following the election of 1937, provincial governments headed by the Indian National Congresswere formed in eight provinces. The Indian National Congress government resigned in 1937. Nevertheless, according to M. Govinda Rao and Nirvikar Singh (2005), the Government of India Act, 1935 provided a basis to the Constituent Assembly to make the Constitution.
The Nehru Report(1928): First Indian Initiative to Draft Constitution
As you have read above, attempts to introduce elements of constitution in British India through different Act since 1858 were made by the British rulers. Indians had no role in it.
The first attempt by Indians themselves to prepare a Constitution of India was made in the Nehru Report(1928).Earlier, effort by Indians was made in the name of the swaraj (self-rule) by leaders of Indian national movement during the non-cooperation movement in 1921-22.
The Nehru Report was known as such because it was named after the chairman of its drafting committee, Motilal Nehru. The decision to constitute the drafting committee was taken in the conference of the established All India parties. The principal among these parties included Indian National Congress, Swaraj Party and Muslim League. The Justice Party of Madras and Unionist Party of Punjab did not participate in this meeting.
The Nehru Report demanded universal suffrage for adults and responsible government both in the centre and in the provinces. It, however, supported the Dominion Status, not complete independence for India.
It meant that Indians would have freedom to legislate on certain limited matters under the control of the British India government. For this, the Nehru Report prepared list of central and provincial subjects, and fundamental rights. It also raised demands for universal suffrage for men and women adults.
Indeed, it was in 1934, a few years after the preparation of the Nehru report, that the Indian National Congress officially demanded a constitution of Indian people, without the interference of outsiders.
FORMATION OF THE CONSTITUENT ASSEMBLY
The Cripps Mission
Initially, the colonial authorities resisted the demand for creation of a Constitution of India. But with the change in the circumstances – the outbreak of the World War II and formation of the new Coalition (Labour-led) government in Britain, the British government was forced to acknowledge the urgency to solve the problem related to Constitution of Indians.
In 1942, the British government sent its cabinet member – Sir Stafford Cripps with the draft declaration on proposals (regarding formation of constitution for Indians) to be implemented at the end of the WW II provided both the Muslim League and the Indian National Congress had agreed to accept them.
The draft proposals of the Cripps Mission recommended the following:
Both the Indian National Congress and the Muslim League did not accept the proposals of the Cripps Mission. The Muslim League demanded that India should be divided on the communal lines and some provinces should form an independent state of Pakistan; and, there should be two Constituent Assemblies, one for Pakistan and another for India.
The Cabinet Mission
The British Indian government made several attempts to bridge the differences between the Indian National Congress and the Muslim League. But it was unsuccessful.
The British government sent another delegation of the Cabinet members, known as the Cabinet Delegation, which came to be known as the Cabinet Mission Plan. It consisted of three cabinet members – Lord Pathic Lawrence, Sir Stafford Cripps and Mr. A.V. Alexander.
The Cabinet Delegation also failed to bring the Indian National Congress and the Muslim League to an agreement. It, however, made its own proposal which was announced simultaneously on 16 May, 1946 in England as well as in India.
The Cabinet delegation made the following recommendations:
Election to the Constituent Assembly
Meanwhile, according to the proposals of the Cabinet Mission, the election to the Constituent Assembly was held in which members of both the Indian National Congress and the Muslim League were returned. The members of the Constituent Assembly were elected by the Provincial Legislative Assemblies.
However, differences between the Indian National Congress and the Muslim League arose on interpretation of “Group Clauses” of the Cabinet Mission.
The British government intervened at this stage and explained to the leaders in London that the contention of the Muslim League was correct. And on December 6, 1946, the British Government published a statement, which for the first time acknowledged the possibility of two Constituent Assemblies and two States.
As a result, when the Constituent Assembly first met on December 9, 1946, it was boycotted by the Muslim League, and it functioned without the participation of the Muslim League.
NATURE OF THE CONSTITUENT ASSEMBLY’S REPRESENTATION
It is often argued that the Constituent Assembly of India did not represent the masses of India because its representatives were not elected through the universal adult franchise. Rather they were indirectly elected by the restricted adult franchise confined to the elite sections of society – the educated and tax payers.
According to Granville Austin the reasons for the restricted franchise and indirect election to the Constituent Assembly members were spelled by the Cabinet Mission Plan. These were to avoid the cumbersome and slow progress in the process of Constitution making.
The Cabinet Mission provided for the indirect election to the Constituent Assembly by the elected members of the provincial legislature. The Indian National Congress agreed to this proposal of the Cabinet Mission forsaking the claim of adult franchise to hold election to the Constituent Assembly.
Despite having been elected through the restricted adult franchise, the Constituent Assembly represented different shades of opinions and religious communities of India. Austin observed that though there was a majority of the Indian National Congress in the Constituent Assembly, it had an “unwritten and unquestioned belief” that the Indian National Congress should represent social and ideological diversity.
There was also its “deliberate policy” that the representatives of various minority communities and viewpoints should be represented in the Constituent Assembly. The Constituent Assembly consisted of members with different ideological orientations, and three religious communities -Sikhs, Muslims and General (Hindus and all other communities like the Anglo-Indians, Parsis, etc).
In words of K. Santaram “There was hardly any shade of opinion not represented in the Assembly”. Majority of the Constituent Assembly members belonged to the Indian National Congress. It also included more than a dozen non-Indian National Congress members.
Some of these were A.K. Ayyer, H.N. Kunjru, N.G. Ayyanger, S.P. Mukherjee and Dr. B.R. Ambedkar. S.P. Mookerji represented the Hindu Mahasabha.
The Constituent Assembly included representatives from the Princely States as well. It needs to be underscored that Dr. Ambedkar was initially elected to the Constituent Assembly from Bengal as member of the Scheduled Caste Federation. But he lost this seat due to the partition of Bengal and was re-elected by the Bombay Indian National Congress (as a non-Indian National Congress candidate) at the request of the Indian National Congress High Command.
The Constituent Assembly sought to address concerns of every person irrespective of their social and cultural orientations. Before incorporating a provision in the constitution, it held elaborate deliberations. Thus, the members of the Constituent Assembly could overcome the limitations of having been elected by the restricted franchise.
The Constituent Assembly sought to accommodate universal values of democracy. The Constituent Assembly adopted several provisions from different constitutions of world and adapted them to the needs of India. In fact, Austin argues that while incorporating different provisions in the Constitution including those which were borrowed from other countries the Constituent Assembly adopted “two wholly Indian concepts” of resolving differences among its members, i.e., consensus and accommodation.
Most members of the Constituent Assembly participated in its proceedings. But these were twenty individuals who played the most influential role in the Assembly.
Some of them were Rajendra Prasad, Maulan Azad, Vallabhbhai Patel, Jawaharlal Nehru, Govind Ballabh Pant, P. Sitaramayya, A.K. Ayyar, N.G. Ayyangar, K.M. Munshi, Dr. B.R. Ambedkar and Satyanarayan Sinha. Though the Constituent Assembly was the sole forum where deliberations took place, yet the deliberations took place in coordination of three bodies – the Constituent Assembly, the Indian National Congress Party, and the interim government.
Some members of the Constituent Assembly were also members of other bodies at the same time. Austin said that “an oligarchy” of four – Nehru, Patel, Prasad and Azad had enjoyed unquestioned honour and prestige in the Assembly. They dominated the proceedings of the Constituent Assembly.Some of these were simultaneously in the government, Indian National Congress Party and the Constituent Assembly.
Prasad was President of Indian National Congress before becoming the President of the Constituent Assembly. Patel and Nehru were Prime Minister and Deputy Prime Minister respectively at the same time. They were part of the inner circles of the committees of the Constituent Assembly.
The Constitution Drafting Committee meticulously incorporated in the draft constitution the decisions of the Constituent Assembly. Dr. B.R. Ambedkar, chairman of the Drafting Committee played the leading role in drafting of the Constitution.
Acknowledging the pivotal role of Dr. Ambedkar, T.T. Krishnamachari, a member of the Drafting Committee, said in one of his speeches: “The House is perhaps aware that out of the seven members nominated by you, one had resigned from the house and was replaced. One had died and was not replaced. One was away in America and his place was not filled up, and another person was engaged in State Affairs, and there was a void to that extent. One or two people were far away from Delhi and perhaps reasons of health did not permit them to attend. So it happened ultimately that the burden of drafting this constitution fell upon Dr. Ambedkar and I have no doubt that we are grateful to him for having achieved this task in a manner which is undoubtedly commendable.”
Dr. Ambedkar on his part “gave much of credit” to S.N. Mukerjee – B.N. Rau’s and Ambedkar’s assistant, the Drafting Officer of the Assembly, “for the careful wording of the Constitution”.
THE ROLE OF THE CONSTITUENT ASSEMBLY IN THE MAKING OF INDIAN CONSTITUTION 1946-1949
The inaugural session of the Constituent Assembly was held on 9 December 1946. It was supposed to be attended by all 296 members but only 207 members could attend it because the Muslim League members absented from it.
As stated earlier, they had boycotted the Constituent Assembly. In this meeting, Acharya J.B. Kripalani requested Dr. Sachchidananda Sinha to be the temporary chairman of the House. The members passed a resolution on 10 December 1946 for election of a permanent chairman, and on 11 December 1946, Dr. Rajendra Prasad was elected as the permanent Chairman of the Constituent Assembly.
The Constituent Assembly divided its work among different committees for its smooth functioning. Some of the important committees were:
(a) Union Power Committee. It was chaired by Jawaharlal Nehru and had nine members;
(b) Committee on Fundamental Rights and Minorities. It had 54 members and Sardar Ballabh bhai Patel was its chairman;
(c) Steering Committee and its 3 members which included Dr. K.M. Munshi (chairman), Gopalaswami Iyangar and Bhagwan Das;
(d) Provincial Constitution Committee. It had 25 members with Sardar Patel as its chairman;
(e) Committee on Union Constitution. It had 15 members with Jawahalal Nehru as its chairman.
After discussing the reports of these committees, the Constituent Assembly appointed a Drafting Committee on 29 August 1947 under the chairmanship of Dr. B.R. Ambedakar. The draft was prepared by Sir B.N. Rau, Advisor to the Constituent Assembly.
A 7-member Committee was constituted to examine the draft. Dr. B.R. Ambedkar, who was Law Minister as well as chairman of the Drafting Committee piloted the draft in the Assembly. Dr. Ambedkar presented “Draft Constitution of India”. The “Draft Constitution” was published in February, 1948.
It was discussed by the Constituent Assembly clause by in its several sessions and was completed by October 17, 1949. This discussion was known as the second reading. The Constituent Assembly again met on 14 November 1949 to discuss the draft further or to give it a third reading.
It was finalised on 26 November 1949 after receiving the signature of the President of the Constituent Assembly. But it was January 26, 1950 which became the date of commencement of the Constitution.
SALIENT FEATURES OF THE CONSTITUION
The Indian Constitution has some salient features. These features give Indian Constitution a distinct identity. It is based on the features of different constitutions of the world. In the words of Dr. Ambedkar, The Indian constitution was prepared “after ransacking all the known Constitutions of the world”.
The chapter on Fundamental Rights is based on the American Constitution; the Parliamentary System has been adopted from the British Constitution; the Directive Principles of State Policy have been adopted from the constitution of Ireland; the Emergency provisions are based on the Constitution of Weimar (Germany) and Government of India Act, 1935.
The features which have been borrowed from other Constitutions have been modified in the light of the needs of our country. It is the longest written constitution. At the time of its formation, the constitution of India had 395 Articles and 8 Schedules. It ensures both Justiciable and Non-Justiciable Rights: Fundamental Rights and the Directive Principles of the State Policy.The constituent makers preferred universal adult franchise over the separate electorates.
Universal Adult Suffrage and Abolition of the Separate Electorate
After debating its draft list of Fundamental rights the Sub-Committee on Fundamental Rights did not recommend inclusion of all of them in the section III of the Constitution as the Fundamental Rights. Instead, it suggested that these should be incorporated in other places in the Constitution.
One such example is that of the Universal suffrage, and Secrete and periodic elections. The sub Committee agreed unanimously in favour of the Universal suffrage but suggested that it should not be part of the Fundamental Rights.
Accordingly, it was placed in the Article 326 of the Part XV on election.The word “universal”, however, is missing from the Article 326. But the fact that every adult citizen of the country is entitled to vote makes it practically a universal adult franchise.
In fact, before Indians really got the right to universal adult franchise, the prominent leaders of the Indian National movement strove for the abolition of the separate electorate in favour of the joint electorate.
The British had sought to continue separate electorate in India since the Morley-Minto reforms, 1909 till the Communal Award of 1932 in the Constitution.
The Communal Award aimed to accord separate electorate for Muslims, Europeans, Sikhs, Indian Christians and Anglo-Indians. It also provided for seats for the Depressed Classes which were to be filled in elections from special constituencies. In such constituencies only the depressed classes could vote.
In addition, the depressed classes were also entitled to vote in general constituencies. Gandhi opposed the recommendation of the notion of separate electorate for the depressed classes. In opposition to the proposal for separate electorate, he set on fast unto death in September 1932. Gandhi’s fast evoked opposition from Ambedkar. However, both Gandhi and Ambedkar reached compromise in Poona Pact.
According to the Poona Pact, seats were reserved for the depressed classes in the general constituencies. This resulted in the abolition of the separate electorate.The abolition of separate electorate got reflected in the reservation of seats in the legislative bodies Constitution.
CONCLUSION
The making of Indian Constitution largely consisted of two phases – 1858 to 1935 and 1946 to 1949. With the transfer of power from the East India Company to the British Crown, the British government introduced different elements of governance through different Acts.
These also included the elements of representation of Indians in the institutions of governance. The motive of the British to introduce them was to serve their colonial interests rather than to provide democratic rights to them. The provision for communal representation introduced through the Morley-Minto Reforms in 1909 and through the Communal Award in 1932 was opposed by the leaders of the Indian National Movement.
Gandhi’s fast resulted in the Poona Pact abolishing the separate electorate and in giving the reservation to the depressed classes in the provincial legislature. After the Indian National Congress emphasized the need for making of a Constitution of India by their own Constitient Assembly, the changed political situation following the Second World War and change of government in Britain, the British reluctantly realized the urgency for establishment of the Constituent Assembly of India for Indians.
The Constituent Assembly which was set up following the recommendations of the Cabinet Mission Plan was elected through the restricted adult franchise by the provincial assemblies. Despite having elected by the privileged sections of the society, the Constituent Assembly represented different shades of opinions and ideologies.
It also represented different social groups of India. The Constituent Assembly discussed all issues thoroughly before reaching decision on them. The decision and suggestions of different sub-Committees of the Constituent Assembly were finally incorporated in the Constitution of India.
The Constitution of India is a document which provides a vision for social change. The Constitution is an embodiment of principles of liberal democracy and secularism, with some elements of social democracy. It ensures protection of cultural, linguistic and religious rights of individuals and communities.