May 16 2024

Context

7th edition of India-France Joint Military Exercise SHAKTI commenced on 13th May, at Umroi in Meghalaya.

About India-France Joint Military Exercise SHAKTI

  • Biennial Exercise: Exercise Shakti is held every two years, alternating between India and France. The last edition was held in France in November 2021.
  • India-France Joint Military Exercise SHAKTIMulti-Domain Operations: The exercise aims to enhance the joint military capabilities of India and France to conduct multi-domain operations in a sub-conventional scenario, adhering to Chapter VII of the UN Mandate.
  • Varied Terrain Operations: The focus is on semi-urban and mountainous terrain, challenging the participants to adapt to different environmental conditions.
  • Objectives of Exercise Shakti:
    • Physical Fitness and Tactical Drills: The exercise emphasizes achieving a high degree of physical fitness, refining tactical-level operations drills, and sharing best practices between the forces.
    • Practice of Tactical Drills: The exercise includes various tactical responses such as handling terrorist actions, establishing joint command posts and intelligence centers, securing helipads, and employing drones and counter-drone systems.
    • Interoperability and Cooperation: The exercise facilitates the development of interoperability and fosters camaraderie and bonhomie between the armed forces personnel of the two countries.

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Other Defence Exercises between India and France:

  • Varuna: Naval exercise
  • Desert Knight-21 and Garuda: Air exercise
  • Shakti: Army exercise
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Context

OpenAI recently introduced its latest large language model (LLM) called ChatGPT-4-O , claiming it as their fastest and most powerful AI model so far.

About ChatGPT-4-O

  • Free Accessibility: Until now, OpenAI’s most advanced LLM was the GPT-4, which was only available to paid users. However, the GPT-4o will be freely available.
  • GPT-4o (“o” stands for “Omni) is being seen as a revolutionary AI model, which has been developed to enhance human-computer interactions.
  • Digital Personal Assistant: GPT-4-Omni acts as a digital personal assistant, capable of real-time translations, facial recognition, and spoken conversations, significantly outperforming its predecessors.
  • Enhanced Interaction and Memory Capabilities: It can engage with both text and visual content such as screenshots, photos, documents, and charts, allowing it to discuss these with users. It also features improved memory functions, enabling it to learn from past interactions

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Technologies Behind ChatGPT-4-O

  • Large Language Model: LLMs are the backbone of AI chatbots. Large amounts of data are fed into these models to make them capable of learning things themselves.
  • Transformer Neural Networks: ChatGPT-4-O utilizes an advanced version of transformer architectures for deep learning that focus on self-attention mechanisms.
  • Reinforcement Learning from Human Feedback (RLHF): It uses human feedback to fine-tune responses to be more aligned with human values and preferences.
  • Diverse Data Training: ChatGPT-4-O is trained on a wide-ranging corpus of text and other modalities to improve understanding and generation capabilities across different formats.

Multimodal AI Model

  • Multimodal AI combines the power of multiple inputs to solve complex tasks. 
  • In order to solve tasks, a multimodal AI system needs to associate the same object or concept across different facets of a given media. 
  • A multimodal AI system can piece together data from multiple data sources such as text, images, audio and video, creating applications across sectors.

Application Areas: 

  • Business Analytics: It can make the best use of machine learning algorithms because it can recognize different types of information and give better and more informed insights.
  • Data processing: It can help in generating textual descriptions, transcription of videos, text-to-speech conversion, analysis of facial expressions and development of sensors for autonomous vehicles or machines.
  • Accessibility: Such systems can assist individuals with disabilities by providing environmental awareness.

Large Language Models:

  • LLM is an AI model trained using deep learning techniques to understand, create, translate, or summarize extensive amounts of human-written language and text.
  • They are foundation models that utilize deep learning in natural language processing (ability to understand, interpret and use human language) and natural language generation (ability of computers to generate human text and speech) tasks.

Key Feature of ChatGPT-4-O

  • Unified Model Architecture: Unlike previous versions that required separate models, GPT-4-Omni uses a single model for text, vision, and audio processing.
    • Previous models used separate models for transcription, intelligence, and text-to-speech, whereas GPT-4o integrates these functionalities natively.
  • Enhanced Integration and Understanding: It can process and understand inputs more comprehensively, recognizing nuances such as tone, background noise, and emotional context in audio inputs.
    • Earlier models struggled with these complexities, but GPT-4o handles them in a unified manner.
  • Speed and Efficiency: GPT-4o responds to queries almost as quickly as real-time human conversation, significantly faster than its predecessors.
    • Response times range between 232 to 320 milliseconds, compared to several seconds in earlier models.
  • Multimodal AI Capabilities: GPT-4o supports inputs and outputs in multiple formats, including text, audio, and images, making it a truly multimodal AI.
    • Users can input a combination of text, audio, and images and receive responses in the same formats.
  • Multilingual Support: GPT-4o shows significant improvements in processing non-English text, enhancing accessibility for a global audience.
  • Advanced Audio and Visual Understanding: It is capable of sophisticated tasks like solving linear equations in real-time from handwritten input and identifying emotions and objects during interactions.
    • During a demo, GPT-4o solved a linear equation as it was written and assessed the speaker’s emotions on camera.

Limitations and Safety Concerns

  • Early Development Stage: The model is still exploring the potential of unified multimodal interactions, with features like audio outputs being initially limited.
  • Need for Further Development: Full capabilities in handling complex multimodal tasks are yet to be developed which requires ongoing updates and improvements.
  • Cybersecurity Risks: Even with safety measures, there remains a concern over cybersecurity vulnerabilities.
  • Misinformation and Bias: Despite safety evaluations and filtered training data, there’s a risk of spreading misinformation and exhibiting biased outputs.
  • Continuous Risk Management: The model is currently rated at a Medium-level risk for these issues, with ongoing efforts needed to address and mitigate emerging risks.
  • Computational Requirements: Requires significant computational resources for training and operation, limiting accessibility.
  • Dependency on Data Quality: The quality of output is highly dependent on the quality of the training data, making the model susceptible to errors in unfamiliar contexts.

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Context

The Supreme Court recently ruled that advocates cannot be held liable for deficiency of service under the Consumer Protection Act (CPA), 1986.

Advocates Not Liable Under Consumer Protection Act For Deficiency Of Services, Supreme Court

  • The court decided that lawyer services were not meant to be included under the Consumer Protection Act, reversing a 2007 National Consumer Disputes Redressal Commission (NCDRC) judgment that had included lawyer services under section 2(o) of the 1986 Act.
    • Section 2(o) of the Consumer Protection Act, 1986 provides the definition of “Services” as per the act.
  • The judgment stems from an appeal against the 2007 NCDRC decision where it was held that lawyers’ services fall under the definition of services provided under Section 2(o) of the Consumer Protection Act, 1986.
  • Reevaluation of Previous Rulings: The court suggested that the decision in Indian Medical Association v V.P. Shantha (1995), which included medical services under the CPA, should be reconsidered by a larger bench to align with the current understanding of professional services.

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Arguments by Petitioners

  • Conflicting Duties of Lawyers: Lawyers, bound by the Bar Council of India Rules, must prioritize their duty to the court over their clients’ desires, including refusing cases where clients insist on using unfair means. 
    • This inherent conflict between the duties to the court, the opponent, and the client makes their role distinct from other professionals who can act solely as their clients’ agents.
  • Unpredictability in Legal Outcomes:  Legal outcomes are unpredictable due to the complexity of laws and the adversarial nature of proceedings, distinguishing lawyers from other professionals 
  • No Universal Standard of Care in Law: Unlike the medical field where a universal standard of care is established through scientific methods, the legal profession lacks such objective standards. Each lawyer’s approach varies significantly.
  • Existing Disciplinary Mechanisms: The petitioners argued that there were adequate existing mechanisms for addressing professional misconduct within the legal profession. 
    • The Advocates Act, 1961, and the disciplinary powers vested in the State and National Bar Councils provide a framework to deal with any lapses, rendering additional consumer protection measures unnecessary.

Argument by the Respondents

Since there was no one to appear for the respondents, court appointed an amicus curiae (friend of the court) to assist the bench from a neutral standpoint.

  • Dual Role of Lawyers: Lawyers represent their clients before the courts and act as ‘agents’, i.e. someone who acts as an extension of the client outside of the service provider-consumer relationship defined by the CPA.
  • Legal Services Beyond Litigation: Lawyers who offer services outside of courtroom proceedings, such as providing legal opinions or drafting documents, could fall under the scope of the CPA as these activities do not involve acting as agents in a legal representation capacity.

Supreme Court’s Rationale behind the Judgment

  • Distinction Between Profession and Business: The court highlighted the difference between ‘business’ and ‘trade’ — which involve commercial interests — and ‘profession’, which relies on specialized knowledge or science. The unpredictable factors influencing success in professions distinguish them from typical business activities covered under the CPA.
  • Contractual Nature of Legal Services: It was determined that the relationship between an advocate and a client is a ‘contract of personal service’, as clients have significant control over how advocates perform their services. 
    • This relationship exempts them from the scope of the CPA, which generally does not cover personal service contracts.
  • Role and Expectations of Advocates: The court emphasized that the legal profession is service-oriented and noble, requiring advocates to be fearless and independent in upholding citizens’ rights, judicial independence, and the rule of law, which contributes to their unique role in society.
  • Impact on the Justice System: The bench noted that an advocate’s actions influence not only the client but also the entire justice delivery system, underlining the unique nature of the legal profession.

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Duties and Responsibilities of an Advocate:

  • Fiduciary Duty: Advocates owe a fiduciary duty to their clients, acting in the best interest of the clients with loyalty and confidentiality.
  • Respect Client Autonomy: Advocates must respect the client’s autonomy, particularly concerning decisions about the objectives of their representation.
  • Follow Client Instructions: Advocates are required to strictly adhere to client instructions before making any statements, concessions, or taking actions that could affect the client’s legal rights.
  • Representation in Court: Advocates represent clients in court proceedings, serving as the primary link between the client and the court.
  • Client-Controlled Service: The client exercises considerable control over how the advocate handles the case, emphasizing that the advocate should not substitute their judgment for that of the client.

Limitations of Advocates:

  • No Concessions Without Instructions: Advocates cannot make any concessions or give any undertakings to the court without explicit instructions from the client.
  • Authority Boundaries: Advocates must not exceed the authority conferred upon them by their clients, adhering strictly to the scope defined by client instructions.

 

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Context

India VIX, which is an indicator of the market’s expectation of volatility over the near term surged dramatically over the past 15 days.

About India VIX 

India VIX is a measure of the market’s expectation of volatility. It typically rises ahead of events like the Lok Sabha elections, which could have a major impact on the market trajectory. 

  • The rise shows that fear among traders or market participants on the expected volatility is more now, as compared to 15 days earlier

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About India VIX Index

  • Definition: The Volatility Index, VIX or the Fear Index, is a measure of the market’s expectation of volatility over the near term. 
    • Volatility is often described as the ‘rate and magnitude of changes in prices’ and in finance often referred to as risk.
  • Calculation of Volatility Index: The Volatility Index is a measure of the amount by which an underlying index is expected to fluctuate in the near term, (calculated as annualized volatility, denoted in percentage e.g. 20%) based on the order book of the underlying index options.
    • As volatility subsides, the Volatility Index declines.
  • First Volatility Index: The Chicago Board of Options Exchange (CBOE) was the first to introduce the volatility index for the US markets in 1993 based on S&P 100 Index option prices.
    • Since its creation, it has become a measure of market volatility, guiding investors in making informed investment decisions.
  • India VIX: India VIX is a volatility index computed by the NSE based on the order book of NIFTY Options. For this, the best bid-ask quotes of near and next-month NIFTY options contracts, which are traded on the F&O segment of NSE are used.
    • India VIX indicates the investor’s perception of the market’s volatility in the near term i.e. it depicts the expected market volatility over the next 30 calendar days.
    • The higher the India VIX values, the higher the expected volatility and vice versa, as per NSE.

Reasons for Surge in VIX

  • Election Uncertainty: The ongoing Lok Sabha elections have created uncertainty, driving the India VIX higher. Historical trends show that significant domestic events like elections often lead to increased market volatility.
  • Market Reactions: Recent market movements, including the BSE Sensex rising 998 points intraday before closing 112 points up, reflect the volatile environment.
  • Foreign Investment Outflows: Heavy selling by foreign portfolio investors has exacerbated market volatility, contributing to the rise in India VIX.
  • Geopolitical Factors: Factors like geopolitical tension in the Middle East and rising US Treasury yield are also playing their respective roles in fueling the volatility index.
  • Sub-Par Quarterly Results of Small and Mid Cap space: The quarterly results till now have mostly been uninspiring, heightening investors’ nervousness about the valuations of mid and small-cap space. 

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Context

The State Bank of India (SBI) has declared its status as the first bank to achieve the designation of a trading-cum-clearing (TCM) Member of the India International Bullion Exchange located at the GIFT City in Gujarat.

About Bullion

Bullion denotes highly pure physical gold and silver, typically stored as bars, ingots, or coins. It may occasionally be recognized as legal tender and is frequently maintained as reserves by central banks or institutional investors.

About India International Bullion Exchange (IIBX)

  • India’s First International Bullion Spot Exchange: India International Bullion Exchange (IIBX), established in GIFT-IFSC, is India’s first international bullion spot exchange. It enables authorized jewelers to import bullion and conduct transactions on the exchange.

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Significance of India International Bullion Exchange (IIBX)

  • Bullion Import Gateway: India International Bullion Exchange (IIBX) serves as the primary channel for bullion imports into India, directing all imports for domestic consumption through the exchange.
  • Enhanced Facilitation: It will enable transparent price discovery, ensure responsible sourcing and supply chain integrity, and uphold quality assurance and standardization.
  • Competitive Offerings: IIBX offers a diverse range of products and technology at highly competitive costs compared to Indian exchanges and global counterparts in Hong Kong, Singapore, Dubai, London, and New York.
  • Gold Trading Offerings: IIBX facilitates the trading of one kilogram of gold at 995 purity, as well as gold mini in 100-gram increments at 999 purity.
  • Standardized Trading: All contracts will be listed, traded, and settled in US dollars.
  • Gold Import Process: Upon importation by authorized entities, the gold will be deposited in one of the vaults, which will issue bullion depository receipts. These receipts will subsequently be traded in dollars on the exchange.
  • Regulation of India International Bullion Exchange (IIBX): The IIBX is regulated by the International Financial Services Centers Authority (IFSCA), a unified authority for the development and regulation of financial products, financial services, and financial institutions at IFSCs.

Membership Categories of India International Bullion Exchange (IIBX)

Professional Clearing Member (PCM) A member only clears and settles trades of trading members of the Exchange who choose to clear and settle their trades through the Member.
Trading Cum Clearing Member (TCM) This category of membership entitles a member to execute trades on his own account as well as on account of his clients and to clear and settle trades executed by themselves as well as by other trading members who choose to use clearing services of the member.
Trading Cum Self Clearing Member (TSM) This category of membership entitles a member to execute trades and to clear and settle the trades executed on his own account as well as on account of his clients.
Trading Member (TM) This category of membership entitles a member to execute trades on his own account as well as on account of his clients but, clearing and settlement of trades executed through the Trading Member would have to be done through a Clearing Member.

Prior to Introduction of India International Bullion Exchange (IIBX)

  • Consignment Model: Presently, gold is imported into various cities in India through a consignment model by banks and agencies nominated and approved by the RBI, and subsequently distributed to traders/jewellers.
  • Gold Transaction Fees and Premiums: Banks and other agencies receive fees from gold exporters for services such as handling and storage, and they also charge a premium on gold when conducting transactions with domestic buyers.
International Financial Services Centers Authority (IFSCA):

  • About: It is a statutory body established under the International Financial Services Centres Authority Act, 2019 
  • Mandate: Developing and regulating financial products, services, and institutions within International Financial Services Centres (IFSCs).
  • Aim: The IFSCA aims to establish robust global connections, cater to the requirements of the Indian economy, and serve as an international financial hub for the entire region.
    • The buyer transfers this fee along the value chain until it reaches the ultimate customer.

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New RBI Guidelines for Importing Gold

  • Extended Advance Payments: Banks are now permitted to enable qualified jewellers to make advance payments for gold imports through IIBX for an 11-day period, in accordance with the prevailing Foreign Trade Policy and regulations under the IFSC Act.
  • Gold Import Payments through IIBX: As per RBI regulations, qualified jewellers must process all payments for gold imports through IIBX using the approved exchange mechanism authorized by IFSCA.
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Context

Recently, ISRO has confirmed that the NISAR Satellite will possess the capability to monitor Earth’s tectonic movements with exceptional precision, achieving accuracy down to the centimeter.

About NISAR Satellite

  • Dual-Band Radar Mission: NISAR is the first satellite mission that will collect radar data in two microwave bandwidth ranges:
    • L-band (1-2 GHz, commonly used for satellite communication and remote sensing) and L-band payload is made by the U.S. 
    • S-band (2-4 GHz, commonly used for satellite communication and weather monitoring). S-band payload has been made by the ISRO
  • Radar Technology for Earth Imaging: ‘SAR’ (  Synthetic Aperture Radar satellite) is a type of remote-sensing technology that uses radars instead of optical sensors to create high-resolution images of the earth’s surface. It can penetrate clouds and vegetation to generate accurate data.
  • Antenna Technology: It has a large deployable antenna with an 18-meter diameter, it has a very high swath.

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Significance of  NISAR Satellite

  • Comprehensive Earth Monitoring: It can fully cover the earth in approximately 14 to 15 days, in radar. It can monitor various aspects in very high resolution.
    • For example, it can monitor the tectonic movements to centimeter accuracy. It can accurately measure water bodies.
  • Water Stress and Ground Penetration: It can look at water stressing on the earth, wherever there is deficiency of water. It can ground-penetrate to a certain depth. 
  • Monitoring Vegetation and snow cover: It is capable of monitoring the vegetation cover and snow cover. It, therefore, basically looks at the whole of the earth in terms of surface, water, greenery and all of that.
  • Changes in permafrost: NISAR is programmed to observe global changes in permafrost at regular intervals, updating scientists about its degradation, with implications for global water resources, aquatic ecosystems, coastal water levels, etc.
  • Monitoring Forests: NISAR will monitor global forest resources, their extent, and quality and provide information for their sustainable development and management.
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Context

The State highways department of Tamil Nadu is undertaking a project, known as the ‘Slope Stabilization using Soil Nailing and Hydroseeding method’ around the Nilgiris’ major roads.

SOIL NAILING FOR NILGIRIS

The project is being undertaken around the Nilgiris major roads at five locations in Ketti, Kattabettu, Perar, Kudah and Udhagamandalam by growing grasses to prevent soil erosion.

  • The five locations are prone to landslips and hence require alternative methods of slope stabilization to prevent future hazards. 
  • Hydroseeding: Around five species of grasses, including a few local species native to India will be grown along the slopes in the five locations. 
    • The highways department will take up the maintenance of the grasses once the hydroseeding is completed

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Hydroseeding

It is a seeding technique whereby a mixture of seeds, fertilizer, organic materials and water is applied onto the soil to facilitate the growth of grass and plant-life, and help hold the top soil together and prevent erosion.

  • On Slopes: Soil binders and tackifer (It is a chemical compound that helps the material adhere to the slope) are added to a slurry to give temporary soil cohesion, holding the seed and surface soil particles in place on steep slopes helping to ensure even cover establishment. 
  • Application: The hydroseeding method is well adapted for re-vegetation of huge tracks of land, as well as for poor or barren land of sand or rock and generally for steep, denuded slopes which are often difficult to revegetate.

Soil Nailing

What is Soil Nailing Technique?

Soil nailing is a geotechnical engineering slope reinforcement construction method, utilizing in-situ soil reinforcement to enhance stability.

  • The technique: The process involves inserting slender rebars into the soil, laying reinforcing mesh on the slope surface, and applying concrete to form a composite body, making a structure, akin to a gravity retaining wall, securely bonds reinforced rods with the surrounding soil.
  • Application: 

Soil Nailing

    • Slope Stabilization: Factors like soil type, water content, and external loads contribute to slope instability. Soil nailing mitigates slope instability by reinforcing the soil, preventing collapse, and enhancing overall slope stability.
    • Retaining Wall Construction: They are structures designed to hold back soil and prevent erosion, commonly seen in hilly terrain or areas with elevation changes. Retaining walls rely heavily on soil nails to reinforce and stabilize them to ensure their durability and structural integrity.
    • Tunneling and Underground Excavations: Soil nails could provide crucial ground support in tunneling and underground excavations, reducing the risk of soil collapses and ensuring the safety of structures above.
  • Advantages: 

    • Cost-Effective and Efficient: Soil nailing proves to be a cost-effective and time-efficient solution, reducing construction periods and associated expenses.
    • Versatile: The technique adapts to different soil conditions, making it applicable in a wide range of geological settings.
    • Minimal Disruption to Surrounding Structures: Soil nailing minimizes disruption to surrounding structures, making it a preferred choice in urban environments and areas with existing infrastructure.
    • Economical: The technique is more feasible and more economical and quieter compared to the driven piles method  for shoring walls above about 10 feet.
  • Limitations:

    • Depth Limitations: The technique has depth constraints, where the effectiveness of soil nailing diminishes with increased depth.
    • Dependency on Soil Conditions: The efficacy of soil nailing is highly dependent on soil conditions, and unsuitable conditions may impact the overall stability achieved.
    • Maintenance and Monitoring Requirements: Regular maintenance and monitoring are essential for ensuring the long-term effectiveness of soil nailing, adding to the overall project costs.

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Context

Recently, the Supreme Court rejected a prayer to allow abortion of a 27-week pregnancy while observing that the fetus too has a right to live.

About the Case

  • The petitioner is a 20-year-old single woman and had approached the SC after the Delhi High Court turned down her prayer on May 3.
  • The HC referred to a expert report by panel of doctors of All India Institute of Medical Sciences (AIIMS) set up on its direction and said it “shows that there is no congenital abnormality in the foetus nor is there any danger to the mother to carry on with the pregnancy which will mandate termination of the foetus”.
    • It added that foeticide would neither be ethical nor legally permissible.

Abortion of 27-Week Pregnancy

  • Last month, an SC bench presided by Chief Justice of India had allowed a 14-year-old minor rape victim to terminate her 27-28 week pregnancy. 
    • The court, however, recalled the order two weeks later as her mother who initially was for the abortion, expressed doubts over the likely impact of the procedure on her daughter’s health and opted to have a normal delivery.
  • The bench also said that a “medical board, in forming its opinion on the termination of pregnancies must also evaluate the physical and emotional wellbeing of the person in terms of the judgment”.

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Abortion Law in India

  • The Medical Termination of Pregnancy Act, 1971 (MTP Act): It allows the termination of pregnancy under the following circumstances,
    • Abortion of 27-Week PregnancyUpto 20 Weeks: Regular Termination of Pregnancy is allowed on the advice of one doctor.
    • Between 20-24 Weeks: Abortion is allowed but as an exception only under certain categories, after two registered medical practitioners have evaluated the right to seek termination.
      • Section 3B of the Rules under the MTP Act: It lists seven categories of forced pregnancies,
        • Survivors of sexual assault or rape or incest; Minors; Change of marital status during the ongoing pregnancy (widowhood and divorce); Women with physical disabilities; Mentally ill women including mental retardation; The foetal malformation; Women with pregnancy in humanitarian settings or disaster or emergency situations.
    • After 24 Weeks: A medical board needs to be set up in approved facilities, which will take the decision to allow or deny termination but only if there is substantial fetal abnormality.
  • The MTP Amendment Act, 2021: It permits abortion from 20 to 24 weeks of gestation for specific cases like rape survivors, with approval from two doctors.
    • It sets up state level Medical Boards to decide if a pregnancy may be terminated after 24 weeks in cases of substantial fetal abnormalities.

The Question of ‘foetal viability’ in Abortion

  • It is the time after which a fetus can survive outside the womb. Foetal viability is usually pegged at 23-24 weeks (6 months).
  • Origin: The idea originated with the landmark 1973 US Supreme Court verdict in ‘Roe v Wade’ whereby abortion was made  a constitutional right up to the point of foetal viability.
  • India’s Case: The question of foetal viability (Right of an unborn child) vs Right of Abortion has arised in a case whereby,
    • A two-judge all-woman Supreme Court bench disagreed on allowing a 27-year-old married woman to terminate her 26-week pregnancy after her fetal viability report was presented to the court.

A Constitutional Right 

The Constitution of India guarantees the right to life and personal liberty to all citizens under Article 21. 

  • This right has been interpreted by the Supreme Court of India to include the right to reproductive choice and autonomy for women.
  • In Justice K.S. Puttaswamy (Retd.) vs. the Union Of India Case, 2017, the Supreme court recognized the constitutional right of women to make reproductive choices, as a part of personal liberty under Article 21 of the Indian Constitution.

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Context

Insurance companies have issued approximately 700 insurance surety bonds valued at around ₹3,000 crore.

  • In November 2023, NHAI decided to accept insurance surety bonds as part of the monetization program for an upcoming Toll Operate Transfer (TOT) package bid.
Toll Operate Transfer (TOT)

  • This model was introduced by the government of India. 
    • Objective: To manage public – funded projects efficiently and enhance development of Infrastructure. 
  • Operational Framework: Under TOT, operational projects, which have been running for at least two years, are put up for bidding.
  • PPP Model: Projects under TOT emphasise collaboration between private sector entities and the government. 
    • It was the first time anyone used these bonds like a bank guarantee for road projects.
    • NHAI has received a total of 164 insurance surety bonds.
      • Among these, 20 bonds are designated for performance security, while 144 are for bid securities.

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About Surety Bonds

Surety Bonds

  • A surety bond is a method for transferring risk where an insurance company provides a guarantee to a beneficiary or obligee.
  • It is a legally binding three party contract. 
  • This guarantee ensures that the principal or contractor will fulfill their contractual obligations.
  • If the principal fails to deliver, the insurer compensates the obligee with monetary payment.
  • Parties Involved:
    • The Surety:
      • The insurance company, like SBI General, offers the financial guarantee to the obligee.
    • Obligee or Beneficiary:
      • Examples include the government or infrastructure development authorities.
      • They are the ones who require the surety bond and typically benefit from it.
    • Principal:
      • This could be the owner or contractor.
      • The principal purchases the surety bond from an insurer as a guarantee.
      • They commit to fulfilling their obligations as per the contract they’ve entered into.
Feature Benefit Drawback
Financial Guarantee
  • Protects the party receiving a service (obligee) from losing money if the party providing the service (principal) fails to fulfill their contractual obligations. 
  • This could involve completing a project, following regulations, or providing a refund.
  • Can be expensive for the principal to obtain, especially if they have poor credit or the bond amount is large. 
  • The cost is typically a percentage of the bond amount.
Increased Trust 

and Credibility

  • Signals to the obligee that the principal is a reputable business and is committed to fulfilling their contractual agreements.
  •  This can be particularly important when dealing with unknown companies or for projects requiring significant financial investment.
  • This Does not guarantee the quality of the work performed by the principal. 
  • It simply ensures that the project will be completed, or that the obligee will be financially compensated if not.
Facilitates Business Opportunities
  • May be required by law or regulation in order to obtain licenses, permits, or contracts, especially in industries like construction, finance, or where handling public funds is involved. 
  • Having a surety bond can give businesses a competitive edge by demonstrating financial responsibility.
  • Obtaining a bond can be a time-consuming process. 
  • The surety company will assess the principal’s financial health and risk profile before issuing a bond, which may involve submitting financial statements and undergoing credit checks.
Faster Project Completion
  • In the event that the principal defaults on their obligations, the surety company will step in and take necessary steps to ensure the project is finished. 
  • This minimizes delays and disruptions for the obligee.
  • The principal may be subject to a detailed financial evaluation by the surety company (underwriting review) before a bond is issued. 
  • This can involve disclosing financial information that may not be readily available.
Security to all parties
  • Provides a sense of security for all parties involved in the agreement. 
    • The obligee knows they will be financially compensated if the principal defaults. 
  • The surety company has a system for vetting principals to minimize the risk of having to pay out claims.
  • The claims process for recovering funds from a surety bond can be complex and time-consuming, especially if there is a dispute between the obligee and the principal regarding the validity of the claim.

 

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Context

Recently, the Supreme Court set aside the arrest and remand of NewsClick chief editor Prabir Purkayastha in the UAPA case. 

Right to be Informed of Ground of Arrest is a Fundamental Right: Supreme Court

  • About The Case: On Remand & Arrest of NewsClick Chief Editor : 
    • NewsClick chief editor Purkayastha was arrested by Delhi Police for allegedly receiving illegal funding from China, routed through the US with the intention of undermining India’s sovereignty and territorial integrity.
  • SC Judgement: Court said the FIR copy was not provided to Purkayastha despite him making an application. 
      • It was provided to him two days after he was arrested and a day after he was remanded in police custody which violates the Fundamental Right to inform.
    • Right to Informed under article 20,21 & 22 : 
      • Informing the arrested person of the grounds of arrest is “salutary and sacrosanct” because it is a Fundamental Right guaranteed under article 22(1) of Indian constitution. 
      • Therefore, it provides Shield against arrest extended to stringent provisions of UAPA also.
      • The Court said ‘The ground of arrest’ would invariably be personal to the accused and can not be equated with the ‘reason of arrest’ which are general in nature.
      • The ground of arrest informed in writing must convey to the arrested accused all basic facts on which he was being arrested so as to provide him opportunity of defending himself against custodial remand and to seek bail.
    • SC ordered his release with surety & Bail bond because chargesheet has been filled.

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Right to be Informed in Case of Arrest: 

  • Section 50(1) of CRPC now Section 47 in BNSS has mentioned that the police officer who is arresting without warrant shall inform the person arrested, the grounds of his offence for which he has been arrested. 
    • And if the offence which he has committed is bailable in nature then it is also the duty of the police officer to inform the arrested person that he is entitled to be released on bail and he may arrange for sureties on his behalf.
  • Article 22 of the Indian constitution
    • It states that the arrested person must be informed of the grounds of his arrest
    • It also gives right to the arrested person to inform to his family members, any relative, or his friend about his arrest

Right to be informed: 

  • It means being transparent and allowing someone to access the information that it requires. Right to be informed can be seen from different perspectives.
    • For instance, the consumers must have the right to be informed about the product or service that is being bought by them.
      • The Consumer Protection Act of 1986  recognises the right to information as a legal right of consumers.
    • Citizens also have the right to know how their personal data is used by the government. 
    • A citizen should be able to access any information that it may require from any public authority.
      • Right to Information Act, 2005.
      • Section 8 of the Right to Information Act, 2005 lists out certain categories of information that cannot be disclosed.

The Unlawful Activities (Prevention) UAPA Act 1967 

  • The UAPA is an anti-terrorism law that was first enacted in 1967 with the primary objective to effectively prevent and deal with activities that pose a threat to the sovereignty and integrity of India. 
  • Applicability: 
    • The provisions of this Act apply also to Citizens of India outside India. 
    • Persons in the service of the Government, wherever they may be. 
    • Persons on ships and aircraft, registered in India, wherever they may be.
Procedure of arrest, seizure, etc under  Section 43B in The Unlawful Activities (Prevention) Act, 1967 

  • Any officer arresting a person under section 43A shall, as soon as may be, inform him of the grounds for such arrest.
  • Every person arrested and article seized under section 43A shall be forwarded without unnecessary delay to the officer-in-charge of the nearest police station. 
  • The authority or officer to whom any person or article is forwarded under sub-section (2) shall, with all convenient dispatch, take such measures as may be necessary in accordance with the provisions of the Code.
  • Investigating powers: Cases can be investigated by both the State police and the National Investigation Agency (NIA). 
  • Recent Amendments In UAPA 
    • 2004: Added specific chapter aimed at prosecuting terrorist acts
    • 2008: Any act “likely to threaten the unity, integrity, security or sovereignty of India” or “likely to strike terror in the people” is also a terrorist act.
    •  2012: Expanded definition of “terrorist act” to include offences threatening the country’s economic security. 
    • 2019: The government can now declare an individual as “terrorist” and append their name in Schedule IV of the Act without any due process. 
      • It also empowers the Director General of the National Investigation Agency (NIA) to grant approval of the seizure or attachment of property.

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Context

In the digital age, the convergence of communication and technology has given rise to a social media that has transcended geographical boundaries and revolutionized political engagement. 

Impact of Social Media On Indian Politics

In the context of Indian politics, the impact of social media is both profound and far-reaching.

  • According to data from analytics firm Social Blade, infotainment creator Dhruv Rathee gained 2.5 million subscribers on YouTube in April alone.
  • Similarly, since January, television journalists turned-digital news influencers such as Ravish Kumar and Abhisar Sharma, have seen a significant bump in monthly views on their channels—a rise of 175% and 115%, respectively.

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About Social Media & Its Usage

  • Refers: It refers to means of interactions among people in which they create, share, and/or exchange information and ideas in virtual communities and networks.
  • Statistics: As per Data Reportal, India was home to 462.0 million social media users in January 2024, equating to 32.2 percent of the total population. 
  • An Important Tool:
    • Connecting with people to share updates about government schemes and flagship programmes.
    • Share about upcoming national events.
    • Impact of Social Media on Indian PoliticsA channel of communication.
      • During Covid, social media was a boon as people could directly contact for help.

The Rise of Digital Democracy

  • Favorable Factors: 
    • Digital Revolution: In recent years, India has witnessed an exponential growth in internet penetration and smartphone usage, catapulting millions of citizens onto various social media platforms. 
Digital Democracy: 

  • E-democracy, also known as digital democracy or Internet democracy, uses information and communication technology in political and governance processes. 
  • The term is credited to digital activist Steven Clift.
    • Democratization of Political Discourse: This digital revolution has democratized political discourse, providing individuals from diverse socio-economic backgrounds with a virtual platform to voice their opinions, connect with like-minded individuals, and hold elected representatives accountable.
  • Impact of Social Media on Indian PoliticsTrends Shaping Political Discourse:
    • Micro-Targeting and Personalization: Political parties are using data analytics and artificial intelligence to tailor their messages and target specific demographics with precision. 
    • Influencer Marketing: Influencers and social media personalities wield significant influence over their followers. Political parties are using this phenomenon by collaborating with influencers to amplify their messaging, increase visibility and sway public opinion.
    • Real-Time Communication: Using social media platforms, from live streaming rallies to hosting interactive sessions, politicians are leveraging these platforms to cultivate a more authentic and accessible image.

Impact of Social Media on Indian Politics

Laws & Regulations on Governing Media

  • Information Technology Act (IT), 2000: It seeks to facilitate beneficial uses of cyberspace in India and enhance cyber security through penalising offences related to cyber-crime.
    • Section 69-A: It gives the right to the authority to take down any content on the internet against the sovereignty and integrity of India and the security of the states, apart from other reasons. 
  • The Press Council of India: It is a statutory body that keeps vigil on fake news. It is the self-regulatory watchdog of the press, for the press and by the press, that operates under the Press Council Act of 1978.
  • During Conduct of Elections:
    • Laws Governing Media Conduct During Elections: During elections, media regulation primarily falls outside the purview of the Election Commission. However, the Commission is tasked with enforcing laws and court directives that may intersect with media activities.
    • Section 126 of the Representation of the People Act, 1951: It prohibits the display of any election-related content via cinematograph, television, or similar devices during the 48-hour period leading up to the conclusion of the polls.
    • Section 126A of the Representation of the People Act, 1951: It prohibits the conduct of exit polls and the dissemination of their results during specified periods, including the time leading up to the commencement of polls in the first phase and a half-hour after the close of polls for the last phase across all states and union territories.
    • Section 127A of the Representation of the People Act, 1951: It governs the printing and publication of election-related materials such as pamphlets and posters, mandating that they bear the names and addresses of the printer and publisher.
    • Section 171H of the Indian Penal Code: It prohibits the incurring of expenditures on advertisements and other activities related to elections without the authorization of the contesting candidate.

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Various Initiatives to Regulate Social Media:

  • Globally:
    • The Digital Services Act of the European Union:  It regulates online intermediaries and platforms such as marketplaces, social networks, content-sharing platforms, app stores, and online travel and accommodation platforms. Its main goal is to prevent illegal and harmful activities online and the spread of disinformation.
    • The proposed Platform Accountability and Transparency Act (PATA) in the US: It is a law granting academics and researchers broad access to the internal datasets of social media platforms that are covered by the bill’s scope.
  • India:
    • Fact-checking Websites: Such as Alt News and IndiaSpend’s FactChecker.in attempt to debunk misinformation.
    • Other Platforms: Such as Jaano India and Mumbai Votes aim to equip citizens with relevant information on government policies and candidates’ performance.

Positive Impact of Social Media on Indian Politics

  • Direct Engagement and Personalized Outreach: These social media platforms have facilitated direct and unfiltered communication, enabling politicians to share their policies, perspectives, and visions instantaneously. 
    • Example: Pariksha Pe Charcha, the event holds interaction between teachers and students who are given an opportunity to meet and communicate with PM Modi.
  • Democratization of Information and Participation: Social media empowers citizens with diverse sources of information, fostering political awareness and enabling individuals to form opinions beyond the confines of mainstream media. 
    • Moreover, it has paved the way for citizen journalism, enabling ordinary individuals to report news and hold those in power accountable.
  • Revolutionizing Election Campaigns: Hashtags, live sessions and group chats became indispensable for political parties, enabling them to interact directly with constituents, address concerns, and showcase achievements. 
  • Empowering Grassroots Activism: Social media’s impact transcends traditional politics and extends to the realm of social movements and grassroots activism. 
    • Examples: Movements like the Anti-Corruption Movement and the Nirbhaya protests found a platform on social media, enabling individuals to express grievances, organize protests, and garner public support. 
  • Reshaping Campaign Funding: Crowdfunding and micro-donations through social media have democratized the funding process, enabling smaller parties and independent candidates to compete with more established players. 
  • Reshaping Data Analytics: The advent of data analytics and sentiment-tracking tools has revolutionized election forecasting and public sentiment analysis and offers valuable insights for campaign strategists.
  • Bridging the Gap: Social Media has increased the ability for ordinary citizens to take part in the political process and also has been actively used for influencing diplomatic relations between India and other countries.
    • Example: The Saksham App of ECI provides a number of features to help PwDs register to vote, find their polling station, and cast their vote.

Arising Challenges that Need to be Tackled

  • Fake News and Misinformation: The proliferation of fake news and misinformation poses a significant threat to the integrity of political conversations. The rapid sharing of unverified content can distort facts and manipulate public opinion. 
  • Impact of Social Media on Indian PoliticsAmplifying Polarization and Echo Chambers: Social media has been criticised by many experts  for its contribution to the amplification of ideological polarization. Users are exposed to content that aligns with their existing beliefs, reinforcing echo chambers that hinder healthy political debates.
    • It poses a risk to societal unity and constructive discourse. Moreover, the anonymity granted by social media can foster online harassment and the spread of hate speech.
  • Links to Violence: As per various studies in Austria, Sweden and Australia, evidence for an association between increased social media use and online right-wing radicalisation have been found. 
    • Example: The German study found local outages of Facebook (due to technical faults or internet interruptions, for example) decreased violence in those locations. Also, 50% less anti-refugee sentiment on social media would reduce violent incidents by 12.6%.
  • Regulatory Ambiguity: The rapid evolution of social media has outpaced regulatory frameworks, leaving policymakers facing complex issues related to data privacy, online harassment and content moderation. 
    • Impact of Social Media on Indian PoliticsThe lack of robust regulations and enforcement mechanisms exacerbates the risks associated with online political discourse.
  • Digital Divide: A significant section of the population, particularly in rural and marginalized communities, lack access to digital infrastructure and literacy that exacerbates inequalities in political participation and representation, undermining the democratic ideal of inclusivity.
    • Example: India has over 820 million active internet users, with more coming from rural areas. The number of non-active internet users is declining. Women lag behind men in internet usage.
  • Unequal Participation: Social media distorts policymakers’ perception of public opinion as it is believed that these social media platforms tend to represent every walk of life, but not everyone’s voice is heard equally.
  • Disparity: The distribution of effects around the world was also striking. Positive effects on political participation and information consumption were most pronounced in emerging democracies in South America, Africa and Asia. Negative effects were more evident in established democracies in Europe and the United States.

Way Forward

  • Media Literacy: There is a need for investing in media literacy programs to equip citizens with the critical thinking skills necessary to identify fact from fiction and navigate the digital landscape responsibly.
  • Transparency and Accountability: Political parties and social media platforms must adopt transparency and accountability measures to combat misinformation, protect user data, and uphold ethical standards.
  • Regulatory Reform: Policymakers must collaborate with industry stakeholders to develop robust regulatory frameworks that balance the imperatives of free expression with the need to safeguard democratic values and public welfare.
    • Maintaining a balance between freedom of the press and addressing misinformation or fake news is required.
  • Digital Inclusion: Bridging the digital divide through targeted interventions aimed at expanding access to digital infrastructure, promoting digital literacy, and fostering inclusive online spaces for political engagement.
  • Role by Election Commission of India (ECI): The ECI must ensure parity of treatment between political advertising on social media and traditional media and should strictly enforce model code of conduct and should increase vigilance on cyber activities of political parties.

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Conclusion

The symbiotic relationship between social media and Indian politics is a double-edged sword, replete with opportunities and challenges. As technology evolves, it is imperative for policymakers, tech companies, and society at large to collaboratively navigate this terrain, harnessing the benefits of social media while mitigating its potential pitfalls.

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