Jul 20 2024

India’s First Overseas Jan Aushadi Kendra Inaugurated in Mauritius

India’s First Overseas Jan Aushadi Kendra Inaugurated in Mauritius.

  • India’s first overseas Jan Aushadi Kendra inaugurated in Mauritius under the India-Mauritius health partnership project.

About Jan Aushadi Kendras:

  • Jan Aushadhi Kendras have been set up to make affordable generic medicines available to all.
    • Generic drugs are drugs with a similar composition as the branded drugs, but made once the patent ends. 
    • India is primarily a branded generic drugs market, where several pharma companies sell their own brands of generic molecules
    • Trade generics are sold directly to hospitals and dis­pen­saries. In the absence of marketing costs, the prices of non-branded generics are very low.
  • Parent Scheme: PM Bhartiya Janaushadhi Pariyojana (PMBJP) is a scheme launched by the Department of Pharmaceuticals to provide quality generic medicines at affordable prices to all, particularly the poor and disadvantaged, through exclusive outlets called Jan Aushadhi Kendras/Medical Stores.
  • Implemented by: Pharma & Medical Bureau of India (PMBI), Ministry of Chemicals and Fertilisers.
    • The PMBI is a government agency that coordinates the supply, procurement, and marketing of generic drugs through the Jan Aushadhi Kendras.
    • It  is part of the Department of Pharmaceuticals and is responsible for implementing the PM Bhartiya Janaushadhi Pariyojana (PMBJP).

Benefits of Jan Aushadhi Kendras:

  • Increased affordability of medicines: Jan Aushadhi Kendras have significantly reduced healthcare costs for many people and reduced out-of-pocket expenditure.
  • Improved access to medicines: They have made essential medicines more readily available in previously underserved areas.
  • Promotion of rational medicine use: These Kendras provide information and counselling on the appropriate use of medicines, which can help to reduce misuse and overuse.

About Mauritius:

  • Location: Mauritius is an island country in the Indian Ocean, located off the eastern coast of Africa.
  • Origin: It is volcanic in origin and is almost entirely surrounded by coral reefs.
  • Capital: Port Louis
  • Languages: English, French, Mauritian Creole
  • Climate: Maritime subtropical

Cryptocurrency Firm WazirX Suffered  Major Security Breach. 

Cryptocurrency Firm WazirX Suffered  Major Security Breach. 

  • WazirX, a major Indian cryptocurrency firm, suffered a massive cyberattack, with hackers allegedly stealing over $230 million, nearly half of the platform’s reserves.
    • It is reported to be the largest security breach of a cryptocurrency exchange in India.
    • The incident underscores the security challenges cryptocurrency exchanges face and their growing vulnerability to global hackers.
    • The company has temporarily halted rupee and crypto withdrawals on the platform.
  • Cause of Breach: Discrepancy between data displayed on Liminal’s interface and actual transaction contents.
    • Liminal is a separate digital asset custody and wallet infrastructure provider.
  • Associated Data: According to blockchain data platform Chainalysis, over $3.8 billion worth of cryptocurrency was stolen from users in 2022. 
    • In 2023, the number came down to about $1.7 billion.
    • The biggest crypto hack so far took place in March 2022 when hackers attacked the Ronnin network. They stole about $625 million worth of Ethereum and the USDC stablecoin.

About Cryptocurrency:

  • Cryptocurrency is a bank-independent digital currency that uses a decentralised technology called blockchain to record and verify transactions in a digital ledger without any third-party interference or central authority monitoring the deal.
  • The transactions are facilitated by cryptography, and a virtual wallet is used for sending and receiving money to ensure the safety and anonymity of transactions.
  • Examples of crypto currency are Bitcoin, Etherum, Ripple and Litecoin.
  • Cryptocurrencies are not a Legal Tender in India. 

Terminologies to be remembered:

  • Whitelisting: Whitelisting is a cybersecurity strategy that only allows an approved list of applications, programs, websites, IP addresses, email addresses, or IP domains, to run in a protected computer or network.
  • MultiSig Wallet: A cryptocurrency wallet known as a MultiSig wallet (Multi-Signature wallet) involves the usage of two or more private keys to sign and approve transactions.
    • These wallets are most useful when cryptocurrency or other digital assets are owned by multiple individuals or are held in custody by a company.

 

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A glitch in the software update of CrowdStrike’s Falcon Sensor knocked out several Windows computers and servers around the world, sending them through a bootloop featuring a blue screen of death.

  • The Update: It  was part of the Falcon Sensor’s endpoint threat detection and response product developed by Crowdstrike, an Austin, Texas-based cybersecurity firm.
  • Impacted Cloud Service: Microsoft’s Azure cloud service faced the outage while other cloud service providers, like Google Cloud or Amazon Web Services (AWS), did not suffer any outage, both of them built their cloud platform on Linux.
  • Recovery of Affected Systems: Manual recovery consisting of a four-step recovery process was instituted to fix affected systems, as computers and servers need to boot completely to download the fixed software.
  • The Indian Computer Emergency Response Team, CERT-In, has issued a severity rating of “Critical” for the incident.

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What is Crowdstike and The  Falcon Sensor platform

  • Crowdstrike is a cybersecurity firm that deploys unified security programme to stop breaches in real time. 
  • The Falcon Sensor platform: It  runs with high privileges and is built to protect endpoints (basically, any devices connected to a computer network). 
    • A mishap in this security platform can cause the operating system to crash, like the Blue Screen of Death (BSOD) outage reported worldover.
    • Boot Loop Cycle: Once BSOD flashes on a user’s screen, they will be caught in a boot loop cycle, which simply means that they won’t be able to access their devices linked to CrowdStrike’s Falcon platform. 

Probable Cause of the Fault

  • Human Error: A developer may have downloaded an update without sufficient quality control.
  • Cyberattack: It can also be a result of a deep cyberattack, prepared ahead of time and involving an attacker activating a “doomsday command” or “kill switch”.
  • Incompatibility: The software update made by CrowdStrike could have conflicted with the changes introduced in the latest Windows update.

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Impact of the Outage Worldwide

Downdetector recorded spiking outage reports from different parts of the world, with complaints surrounding Microsoft’s login, outlook, server, and app experiences.

  • Widespread Range: The outage seriously impacted a wide range of Microsoft’s users ranging from airports, airlines, financial institutions, and hospitals down to office workers and casual Internet users trying to log into their Microsoft apps or devices.
  • Collapse of Airports Digital Systems: Flights were briefly grounded in the United States and in India, airlines started checking passengers in manually at airports, issuing handwritten boarding passes as blue error screens took over flight information display boards.
    • IndiGo alone reported cancellation of at least 283 trips on Friday and Saturday due to the outage.
  • The Union government’s eOffice suite for processing files and paperwork was also impacted for two hours
  • Traders and investors in India complained that their transactions were not being processed as the Brokerages and stock exchanges were also hit severely.
  • Hospitals: Some hospitals also reported disruptions, with concerns that patient data could be lost, while their crucial treatments might be delayed.

About  Blue Screen Of Death (BSOD)

  • Officially referred to as the “Stop Error”, it is a warning which is issued when a critical problem forces Windows to reboot. The warning which is displayed on the blue screen can be seen on the computer when the system interrupts operations.
  • Minidump: Before rebooting the system, the Windows operating system saves a file on the computer, carrying some data about the error. This file is called a ‘minidump’ and is crucial in determining the cause of the error.
  • Blue Screen Of DeathCauses:
    • Improperly  installed, damaged, or aging Hardware: BSOD warnings can be a result of problems caused in hardware systems (hard disk drive (HDD), Solid-State Drive (SSD), motherboard, or other physical components)
    • Buggy or incompatible software like apps, or programs which may not have been integrated properly with the system.
    • Malware or spyware: A malware injected by threat actors could also corrupt system files in a computer, causing it to show the Blue Screen of Death.
    • Overheating: It can also result from overheating, especially if you’re experiencing other issues, like a loud computer fan or a Task Manager showing 100% disk usage.

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Indigenous rights NGO Survival International has released rare photographs of the Mashco Piro tribespeople.

About Mashco Piro 

Mashco Piro Tribe

  • Mashco Piro is the largest uncontacted tribe.
    • These groups have no peaceful interactions with mainstream society.
  • They live deep in the Amazon jungles of the Madre de Dios region, 
    • This region is close to Peru’s border with Brazil an Bolivia. 
  • Population: Estimated to be over 750 people.
  • Lifestyle: They are nomadic hunter-gatherers.
    • They occasionally interact with the Yine people but avoid other contacts.

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Uncontacted Tribe in India

  • Sentinelese Tribe: This tribe is the most isolated tribe in the world.
    • They live on North Sentinel Island.
      • It is located off the southwest coast of South Andaman, India.
  • Shompen Tribe: It is another isolated tribe in India. 
    • These are the native of the interior regions of Great Nicobar island. 
    • This tribal group has been classified  as the particularly vulnerable tribal group within the list of scheduled tribes. 

Government Policies and Protection for Mashco Piro Tribe

  • Contact Prohibition: Peru’s government has banned all contact with the Mashco Piro.
    • Objective: The ban aims to prevent the spread of diseases to which the tribe has no immunity.
  • Creation of Territorial Reserve: In 2002, the Madre de Dios Territorial Reserve was established.
    • The reserve was created to protect Mashco Piro’s territory.
  • Limitations of the Reserve: Despite the reserve, large parts of the Mashco Piro’s traditional land lie outside its boundaries.

Impact of Logging on the Mashco Piro Tribe

  • Destruction of Habitat
    • Logging companies like Canales Tahuamanu are permitted to cut down trees in the unprotected areas of  Mashco Piro’s forest 
      • This activity is destroying the tribe’s  home and making it difficult for them to find food.
  • Forced Displacement
    • In the 1880s, the Mashco Piro were forced from their land, enslaved, and killed.
      • Survivors fled deeper into the forest, where they have lived in isolation ever since.
    • Now, the loggers are encroaching on their new territory as well.
      • This is the reason as to why sightings of the Mashco Piro have risen in recent years.
      • Some Mashco Piro have been seen across the border in Brazil too. 
  • Health Risks
    • The Mashco Piro lack immunity to diseases carried by outsiders.
    • Contact with loggers or other outsiders could make them very sick or even lead to death.

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About Peru

  • Peru, officially the Republic of Peru, is situated in western South America.
  • Bordering regions:
    • North:  Ecuador and Colombia 
    • South: Chile and Pacific Ocean
    • East:  Brazil 
    • West: Pacific Ocean

Other important points

  • Capital and largest city: Lima
  • Continent: South America
  • Mountain: Andes mountains 
  • Rainforest: Tropical Amazon rainforest.
  • Main river: The Amazon River flows through the eastern part of the country.
  • Major Economic Activities: Major economic sectors include mining, manufacturing, agriculture, and fishing.
    • Emerging sectors are telecommunications and biotechnology.

 

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There is high anticipation among the Multi-National Enterprises (MNE’s) and tax professionals of a roadmap for India’s approach to adopting the Global Minimum Tax, also known as the ‘Pillar Two’ global tax in the upcoming Budget.

Global Minimum Tax (GMT)

  • About: The Global Minimum Tax (GMT) is an agreement reached by 136 countries, including India, to ensure that large multinational corporations pay a minimum tax rate of 15%. 
    • It is one of the most significant reforms of international tax regulations in a century.
  • Based on: It is an agreement based on the Global Anti-Base Erosion (GloBE) Model Rules.
  • OECD’s Inclusive Framework: It is prepared under the Organisation for Economic Co-operation and Development’s (OECD’s) Inclusive Framework.
    • Involves over 140 countries.
  • Two Pillar Plan:
    • Pillar 1: primarily deals with the reallocation of income to market jurisdictions.
      • Pillar 1 repeals digital services taxes and similar measures, with unclear identification and timetable.
    • Pillar 2 focuses on establishing a global minimum taxation framework and preventing tax avoidance.
      • Pillar 2 aims to ensure income is taxed at an appropriate rate and establish a GMT of 15% for multinationals with €750 million turnover.  
  • Global Minimum TaxNeed for GMT: The need for GMT arises from financial diversion to tax havens and the desire to mobilise financial resources.
  • Objective: GMT aims to address the low effective tax rates paid by major corporations, including tech giants like Apple, Alphabet, and Facebook. 
    • These companies often use complex subsidiary structures to shift profits to low-tax countries or tax havens such as the Bahamas, Panama, British Virgin Islands etc.
    • GMT ensures that large multinational enterprises pay a minimum level of tax on their income in each jurisdiction where they operate
  • Key Benefits:
    • Reduces the incentive for profit shifting.
    • Places a floor under tax competition.
    • Ends the race to the bottom on corporate tax rates.
    • Economists expect the deal to encourage multinationals to repatriate capital to their home countries, benefiting those economies.
    • It also aims to end decades of tax competition.

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Mechanism of Global Minimum Tax

  • Applies to:  The Minimum Tax Rate applies to multinational enterprises (MNEs) with global revenues above €750 million annually.
    • MNEs must pay a minimum effective tax rate (ETR) of 15% on a country-by-country basis.
  • Provision of a Top-Up Tax:
    • If an MNE’s effective tax rate (ETR) falls below 15% in any country, a top-up tax is imposed.
    • This tax is payable to the nation where the MNE’s parent company is based.

Example Case to understand the Global Minimum Tax

  • An Indian multinational has subsidiaries in the UAE and Germany. With Tax Rates of: UAE: 9% and Germany: 30%
  • Top-Up Tax
    • India: India would impose a 6% top-up tax for the UAE’s shortfall if the UAE doesn’t meet the minimum tax rate.
    • UAE’s Right to Collect:  UAE has the first right to collect the tax if it enacts a compatible domestic minimum tax.
  • Backstop Rule: 
    • Under-Taxed Profit Rule (UTPR): If neither India nor the UAE enacts Pillar Two, Germany can collect the UAE shortfall through UTPR.
    • UTPR is set to take effect in several countries from 2025.
  • Incentive for Implementation:
    • Pillar Two is designed so that if one country legislates it, that country can collect the entire top-up tax.
    • Therefore, No country, including India, would want to be left behind in the implementation process.

Implementation Progress

  • Current Status: Over 50 countries are at various stages of implementing Pillar Two.
  • Countries Already Implementing:
    • European nations: UK, Switzerland, Belgium, Netherlands, France, Germany, Ireland.
    • Other countries: Australia, Korea, Japan, Canada.
  • Upcoming Adoptions:
    • Singapore and Hong Kong plan to roll out Pillar Two in 2025.
    • The UAE is conducting consultations for its implementation.

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Impact on Multinational Enterprises (MNEs)

  • Assessment Required: Businesses need to evaluate how Pillar Two affects their current and future transactions.
    • MNEs must evaluate their systems for the new tax regime’s analytical, compliance, and reporting requirements.
  • Data and Compliance Challenges: Compliance requires extensive accounting and tax data, which may not be easily accessible.
    • MNEs need to manage varying local regulations due to the phased implementation across jurisdictions.
  • Pillar Two impacts the corporate race to stay competitive: The new global tax regime will impact existing tax incentives and tax-holiday schemes across the globe, as a low ETR on account of such incentives will result in a top-up tax liability. 
    • Therefore, several countries are redesigning their tax incentive programmes for their businesses to remain competitive in the post-Pillar Two world.
    • MNEs, therefore, would now need to take into account changes in tax-incentive structures as they re-assess their ongoing and proposed investments.

Status of Indian Multinational Enterprises (MNEs)

  • Preliminary Assessments: Most Indian MNEs have started or completed initial impact assessments.
  • Preparation for Compliance: They are now focusing on ongoing compliance and tax provisioning for potential ETR shortfalls in low-tax countries.

Associated Challenges with the implementation of Global Minimum Tax:

  • Varied Jurisdictional Approaches: Different countries may interpret and implement Pillar Two differently, leading to inconsistencies and potential disputes in global tax enforcement.
  • Impact on Tax Incentives: Countries may need to overhaul or eliminate existing tax incentives and holiday schemes, potentially affecting local businesses and economic development.
  • Complexity of Implementation: The intricate rules and requirements of Pillar Two could create significant administrative and compliance burdens for both governments and multinational enterprises.
    • This can discourage foreign investment in some jurisdictions, impacting economic growth.
  • Affects Sovereignty: The global minimum tax could limit a nation’s ability to set its own tax policies, removing a key tool for pursuing national interests.
  • Effectiveness Concerns: Critics, including groups like Oxfam, argue that the deal may not effectively eliminate tax havens or address all tax avoidance issues.

Suggestions for India’s Introduction of Pillar Two 

  • Stakeholder Consultations:
    • India should consult with various stakeholders before introducing Pillar Two.
    • Focus on how Pillar Two interacts with India’s existing tax system and its implications for tax incentives in GIFT City, Gujarat.
  • Mindset of the MNE’s: Pillar Two represents a collective move towards global tax fairness.It is the first truly global tax system in a world of increasing business globalisation. MNEs will need to adapt to new technologies and mindsets as they implement Pillar Two.

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Conclusion

India’s adoption of Pillar Two is imminent; it’s a question of when, not if. The countdown has begun, and the focus is now on how the government will implement these global tax reforms effectively.

Organisation for Economic Cooperation and Development (OECD), Base Erosion and Profit Shifting (BEPS) and OECD G20 Project

Organisation for Economic Cooperation and Development (OECD)

  • About: The OECD is an intergovernmental economic organisation, founded to stimulate economic progress and world trade.
    • Organisation for Economic Co-operation and Development is an official United Nations Observer.
  • Members: Most OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries.
  • Established on: OECD was established on December 14, 1960. 
  • Headquarters: Paris, France.
  • Total Members: 36.
  • India and OECD: India is not a member, but a key economic partner.
  • Reports and Indices by OECD
    • Government at a Glance 2017 report.
    • International Migration Outlook.
    • OECD Better Life Index.
  • Black List of OECD: The OECD maintains a so-called “black list” of nations that are considered uncooperative tax havens.

Base Erosion and Profit Shifting (BEPS) and OECD G20 Project:

  • Base erosion and profit shifting (BEPS) refers to corporate tax planning strategies used by multinationals to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions or no-tax locations where there is little or no economic activity, thus “eroding” the “tax-base” of the higher-tax jurisdictions using deductible payments such as interest or royalties
  • Aim:
    • This strategy reduces corporate tax liability by either masking profits or shifting them to low-tax regions with minimal economic activity, exploiting gaps in international tax regulations.
  • The OECD G20 Base Erosion and Profit Shifting Project (or BEPS Project): It is an OECD/G20 project to set up an international framework to combat tax avoidance by multinational enterprises (“MNEs”) using base erosion and profit shifting tools.
  • India and BEPS: India has signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“Multilateral Instrument” or “MLI”) to  swiftly implement a series of tax treaty measures to update international tax rules and lessen the opportunity for tax avoidance by multinational enterprises

 

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As per the recently released ‘Outcomes of the 2021-22 and 2022-23 surveys released by the National Sample Survey Office (NSSO)’, Informal economy was the worst affected due to three significant economic shocks:  Demonetisation (November 2016), GST implementation (July 2017), and the Covid-19 pandemic (since March 2020).

  • The surveys were carried out for unincorporated non-agricultural establishments in three sectors: manufacturing, trade, and “other services”.

Overview of Informal Economy In India

  • Significant Economic Contribution: Small and medium enterprises (SMEs) along with household proprietary and partnership establishments collectively contribute nearly half of India’s economic output. Primary Source of Employment: This sector also serves as a crucial source of employment, accounting for over three-fourths of all jobs in the country.

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Unincorporated Enterprises

Informal Economy

  • About Informal workers:  According to the Organisation for Economic Co-operation and Development (OECD), workers are classified as having informal jobs when their employment relationship, either by legal definition or in practice, does not conform to national labour laws, income taxation, social protection coverage etc.
  • ASUSE Report by Ministry of Statistics and Programme Implementation (MoSPI): Data from Annual Survey of Unincorporated Enterprises (ASUSE) reveals that over the past seven years, a significant number of enterprises within the informal sector have ceased operations and approximately 16.45 lakh jobs have been lost within this sector.
  • Share of workers employed in Informal Sector: In 2022-23, the informal sector saw a decline of 16.45 lakh workers (-1.5%), totaling 10.96 crore compared to 11.13 crore in 2015-16. 
    • Concurrently, the number of unincorporated enterprises increased by 16.56 lakh to reach 6.50 crore from 6.33 crore in 2015-16.
  • Crucial for generating jobs: The informal sector plays a crucial role in generating jobs and absorbing especially semi-skilled and unskilled labour. 
Recent Government Initiatives Related to the Informal Sector

  • E-Shram Portal: The portal was launched in 2021 by the Ministry of Labour and Employment. It aims at building a comprehensive National Database of Unorganized Workers (NDUW) in the country.
    • The workers will be issued an e-Shram card containing a 12 digit unique number.
  • Labour Codes: Recently, the Parliament passed three labour codes — on industrial relations; occupational safety, health and working conditions; and social security for the benefit of the informal sector employees.
  • PM SVANidhi: Micro Credit Scheme for Street Vendors: 
    • Launched by the Ministry of Housing and Urban Affairs (MoHUA) to provide affordable loans to street vendors.
    • The scheme benefits vendors, hawkers across various sectors.
  • PM-KISAN: Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a Central Sector Scheme with 100% funding from the Government of India.
    • It is being implemented by the Ministry of Agriculture and Farmers Welfare.
    • Under the scheme, the Centre transfers Rs 6,000 per year, in three equal instalments, directly into the bank accounts of all landholding farmers, regardless of their landholding size.
  • Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM): PM-SYM is a Central Sector Scheme administered by the Ministry of Labour and Employment for the benefit of the unorganised sector employees. 
    • It is implemented through Life Insurance Corporation of India and Community Service Centers (CSCs)
    • It is closely watched for employment trends, especially when there is a slowdown in the formal sector.
  • Pattern of Informal Employment Across States
    • Decline in Informal Sector Workers: 
      • Sixteen out of the 34 states/Union Territories recorded a decrease in informal sector workers in 2022-23 compared to 2015-16.
    • Post-Pandemic Increase in Informal Employment:
      • The share of informal sector workers increased in most states immediately following the pandemic.
      • This rise indicates economic distress and a shift away from the formal sector.

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Scope of Survey Coverage

Informal Economy

  • Manufacturing Units Beyond Factories Act and ASI
    • The survey includes manufacturing units not covered under the Factories Act, 1948, and those excluded from the Annual Survey of Industries (ASI).
    • Specifically, it encompasses informal establishments engaged in activities like cotton ginning, cleaning, bailing, and the manufacturing of bidi and cigar.
  • Non-Captive Electric Power Generation
    • Units involved in non-captive electric power generation, transmission, and distribution, which are not registered with the Central Electricity Authority (CEA), are also part of the survey.
  • Trade and Other Services
    • The survey extends to various entities under trade and other services sectors, including proprietary and partnership establishments (excluding LLPs), societies, trusts, associations, cooperatives, self-help groups, and non-profit institutions.

Key highlights of NSSO Survey Results

  • Long Gap in Data Availability Addressed: The release of 2021-22 and 2022-23 survey results fills a significant gap since the last available data in 2015-16. This current data is crucial for understanding recent trends.
  • Shift in Employment Dynamics: 
    • Decline in Overall Employment: The informal sector experienced a decline in overall employment despite an increase in the number of enterprises between 2015-16 and 2022-23.
    • Shift towards Self Owned Units: Own-account enterprises grew by nearly 4%, while hired-worker enterprises contracted by 3.2%, indicating a shift towards self-owned units over hired-worker units.
  • Shifts on Manufacturing Employment: As the economy moved to more capital-intensive manufacturing, the data indicate a dent in employment in labour-intensive manufacturing in the unorganised sector.

Employment Trends from Periodic Labour Force Survey (PLFS)

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Periodic Labour Force Survey (PLFS)

  • About:
    • It is a survey conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) to measure employment and unemployment in India.
    • Launched in April 2017.
  • Objective:
    • Urban Areas (Current Weekly Status – CWS): Estimate key indicators such as Worker Population Ratio, Labour Force Participation Rate, and Unemployment Rate every three months.
    • Rural and Urban Areas (Usual Status and CWS): Estimate employment and unemployment indicators annually.

Challenges Faced by the Informal Sector

  • Lack of Social Protection: Informal workers often lack access to social security benefits such as healthcare, pensions, and unemployment insurance, leaving them vulnerable in times of illness, old age, or economic downturns.
  • Inconsistent Income and Job Security: Employment in the informal sector is often unstable and characterised by irregular incomes, making it difficult for workers to achieve financial stability and plan for the future.
  • Limited Access to Credit and Resources: Informal enterprises frequently struggle to access formal credit and financial resources, hindering their growth and ability to invest in better technology or infrastructure.
  • Lack of accurate Data: There are no official statistics available that reflect the true state of the informal economy making it a sector with “invisible workforce”.

Suggestions for the Formalisation of Workforce

  • Recognizing Invisible Labour: It is essential to implement a national policy for domestic workers to recognize their rights and ensure better working conditions, acknowledging their contributions to the economy.
    • Invisible labour refers to unpaid work that goes unnoticed, unacknowledged, and thus, unregulated.
  • Enhanced Social Security and Benefits: There is a need to Implement comprehensive social security schemes that cover health insurance, pensions, and unemployment benefits for informal workers to encourage their transition to formal employment.
  • Skill Development and Training: Investing in skill development and vocational training programs tailored to the demands of the job market. Is the need of the hour.
    • This can help improve their employability and ease their transition into the formal sector.
  • Encouraging Digital Payments: Promoting  the use of digital payment systems to increase financial transparency and traceability can help in the integration of informal businesses into the formal economy.

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Recently, the Assam government asked the Border wing of the State’s police not to forward cases of non-Muslims who entered India illegally before 2014 to the Foreigners Tribunals (FTs).

  • The Supreme Court set aside an FT order declaring Rahim Ali, a deceased farmer, a foreigner 12 years ago. 
  • About 3 lakh people in Assam were declared Doubtful Voters in 1997 without any inquiry or notice. They were excluded from the Assam National Register of Citizens (NRC).

About Foreigners Tribunals (FTs)

  • Definition: Foreigners Tribunals are quasi-judicial bodies established to determine if a person staying illegally in India is a “foreigner” or not.
  • Establishment:  Foreigners Tribunals were established under the Foreigners (Tribunals) Order, 1964, which was enacted by the Central government utilising powers from Section 3 of the Foreigners Act, 1946.
  • Composition: Each FT is headed by a member drawn from judges, advocates, and civil servants with judicial experience.
  • Only in Assam: While applicable across India, FTs are currently operational only in Assam. In other states, suspected illegal immigrants are presented before local courts under the Foreigners Act, 1946.
  • Recent amendment: Initially, only the Central government could establish FTs. 
    • The 2019 amendment to the Foreigners (Tribunals) Order granted this power to state governments as well

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Foreigners (Tribunals) Order, 1964 

  • It was issued by the Central Government under Section 3 of The Foreigners Act, 1946
  • It is applicable to the whole country
  • The Central Government may order the establishment of a Tribunal to consider whether a person falls under this description or not.
  • Amendments in the Foreigners (Tribunals) Order, 1964 in 2019. 
    • It lays down appeals made by persons not satisfied with the outcome of claims and objections filed against the NRC.
      • Since NRC work is going on only in Assam, therefore, the aforementioned Order is applicable only to Assam as on date for all practical purposes.
    • The Amendment Order also provides for reference by District Magistrate to the Tribunal for its opinion as to whether the Appellant is a “foreigneror not within the meaning of the Foreigners Act, 1946.

Functioning

  • According to the 1964 order: FT has the powers of a civil court in certain matters such as summoning and enforcing the attendance of any person and examining him or her on oath and requiring the production of any document.
  • Notice to the Person: A tribunal is required to serve a notice in English or the official language of the State to a person alleged to be a foreigner within 10 days of receiving the reference from the authority concerned.
  • Reply & Submit the Evidence: Such a person has 10 days to reply to the notice and another 10 days to produce evidence in support of his or her case.
  • Case Disposal: An FT has to dispose of a case within 60 days of reference
  • Deportation: If the person fails to provide any proof of citizenship, the FT can send him or her to a detention centre, now called transit camp, for deportation later.
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The devolution of Union tax revenue to States is significant in India’s fiscal federalism. 

  • The Finance Commission (FC) formulates this distribution every five years, and often prioritizes intragenerational equity, that is, to redistribute tax revenue among States over efficiency. However, it can exacerbate intergenerational inequity, necessitating the inclusion of intergenerational equity as a criterion in tax devolution. 

About Fiscal Federalism

It entails the division of responsibilities and resources between the central and state governments, with the Finance Commission playing a key role in recommending tax proceeds distribution. 

  • Equitable Intergovernmental Transfers: It involves fund transfers from the central to state governments, are vital for balanced regional development, reducing fiscal imbalances, and promoting cooperative federalism.
    • Federalism: It is a mode of government that combines a general government with regional governments in a single political system, dividing the powers between the two.
  • Centralised Federal Structure: Constitution provides for a significantly centralized federal structure, with the bulk of revenue-raising powers residing with the Union government. As a result, Union government transfers to the States are vital for the latter’s fiscal space.
    • The Union government’s fiscal transfers to States are made through two mechanisms viz. the Finance Commission and a variety of Central government schemes. 

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Broad Principles Associated with Fiscal Federalism

Following are the three main broad principles associated with Fiscal Federalism:

  • Fiscal Equivalency: The jurisdiction determining the order of provision of each public good should include the set of individuals that consume it. This generally requires a large number of overlapping jurisdictions.
  • Decentralisation Theorem: Each public service should be provided by the jurisdiction having control over the minimum geographic area that would internalise the benefits and costs of such provision.
  • Principle of Subsidiarity: Functions should be performed at the lowest level of government. The principle implicitly implies hierarchy.

About the Finance Commission

Intergenerational Equity

The Sixteenth Finance Commission has begun its work, which was constituted in December last year and is expected to submit its recommendations by October, 2025 that will be valid for five years starting from April 1, 2026.

  • Constitutional Body: The Finance Commission is a constitutional body and provided by Article 280 of the Indian Constitution as a quasi-judicial body.
  • Appointing Authority: The President of India constitutes a Finance Commission every fifth year or at such a time that is considered necessary.
  • Composition: The Finance commission composition consists of a chairman and four other members.
  • Tenure: For the duration specified in Presidential order. The Commission is reconstituted typically every five years and usually takes a couple of years to make its recommendations.
    • Members are eligible for reappointment.
  • Qualifications: The Parliament has been authorised by the constitution to determine the qualifications of the members and the manner in which they are to be appointed.
    • Specifications: Based on these powers, the Parliament has given the following specifications for appointing the members.
    • The chairman must have experience in public affairs while the other four members should be selected from amongst the following criteria:
      • A High Court judge or one qualified to become one
      • An individual having specialised knowledge of finance and accounts of the government
      • A person who possesses experience in financial matters and administration
      • A person who has special knowledge of economics
  • Powers: Based on the Code of Civil Procedure 1908, the Finance Commission of India has all the powers of a Civil Court. 
    • Evidence Demand: The commission has powers to call witnesses, and ask for the production of a public document or record from any office or court.
  • Mandates: 
    • Tax Distribution: Distributing shares of net proceeds of tax between the Union and the States and the allocation between the States of the respective shares of such proceeds.
      • The Centre, however, is not legally bound to implement the suggestions made by the Finance Commission. 
    • Rules for Grants-in-Aid: The rules that govern grant-in-aid to the states by the Centre from Consolidated Fund of India.
    • Tax Devolution at State Level: Augmenting the consolidated fund of the state to supply resources to panchayats and municipalities based on recommendations of the State Finance Commission.
    • Miscellaneous Matter: Any other matter referred by the President to the Commission in the interests of sound finance.
    • Submit Report: A report is submitted to the President, who lays it before both houses of the Parliament. The report is followed by an explanatory memorandum on the actions taken on its recommendations.

About the Distribution of Funds by the Finance Commission

Intergenerational Equity

Financial devolution refers to the transfer of financial resources and decision-making powers from the central government to the states.

  • Decided by: The Finance Commission decides what proportion of the Centre’s net tax revenue goes to the States overall (vertical devolution) and how this share for the States is distributed among various States (horizontal devolution)
  • Constitutional Provisions: Article 280(3)(a) of the Constitution of India mandates that the FC has the responsibility to make recommendations regarding the division of the net proceeds of taxes between the Union and the states.
    • Article 270 outlines the distribution of net tax proceeds between the Union government and the States.
  • Vertical Devolution: This devolution of funds however, is not based on any such objective formula. 
    • Nevertheless, the last few Finance Commissions have recommended greater vertical devolution of tax revenues to States. 
    • The 13th, 14th and 15th Finance Commissions recommended that the Centre share 32%, 42% and 41% of funds, respectively, with States.
  • Intergenerational EquityHorizontal Devolution: This devolution of funds between States is usually decided based on a formula created by the Commission that takes into account a State’s population, fertility level, income level, geography, etc. 
  • Additional Aid: The Centre may also aid States through additional grants for certain schemes that are jointly funded by the Centre and the States.
  • For Local Bodies: The 16th Financial Commission is also expected to recommend ways to augment the revenues of local bodies such as panchayats and municipalities.
    • As of 2015, only about 3% of public spending in India happened at the local body level, as compared to other countries such as China where over half of public spending happened at the level of the local bodies.
  • Ways to Raise Revenue: For any government, there are only two ways to raise its revenue: tax or borrowing. 
    • If, in a period, the tax revenue equals the current expenditure of the government, then the current taxpayers pay for the public services they receive. 
    • If the government finances the current expenditure through borrowings, it means the future generation is going to pay higher taxes to repay this borrowing and interest.

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About Intergenerational Fiscal Equity

In general, intergenerational equity is the principle of providing equal opportunities and outcomes to every generation. 

Intergenerational Equity

  • Refers: From a public finance point of view, it refers to a situation where every generation pays for the public services it receives and ensures that the decisions or actions of current generations should not burden the future generation. 
  • Factors of Creation: Borrowing to meet the current expenditure of the government amounts to intergenerational inequity.
    • As per Ricardian Equivalence Theory, whenever the government resorts to borrowing to finance current expenditure, households react through higher savings and thus enable the future generation to pay higher taxes as well as keep aggregate demand in the economy constant over different periods. 
      • This theory assumes that the current generation pays tax less than the value of the current public services it receives, and thus saves. Whereas in the present federal situation this is not the case. 
  • States on Paying Taxes: Households in developed States pay taxes that are not entirely used within the specific States, thus compelling such States to borrow more or curtail current expenditure. 
    • Households in developing States pay taxes much less than the value of current expenditure and fill the gap by receiving higher financial transfers from the Union government.

About Intragenerational Equity

It focuses on fair distribution of resources among different states within the same generation. 

  • High-income states, such as Maharashtra and Tamil Nadu, generate substantial tax revenue but receive fewer Union transfers, unlike states like Uttar Pradesh and Bihar, which rely more on Union money.
  • Example: During the 14th FC period (2015-20), own tax revenue financed up to 59.3% of revenue expenditure in high-income States, while in low-income States, their own tax revenue was financing only 35.9%. 
    • The Revenue Expenditure to GSDP ratio for high-income States was 10.9%, which is lower than the similar ratio of 18.3% for low-income States. 
    • Thus, nearly 57.7% of revenue expenditure in low-income States was financed by Union financial transfers, and only 27.6% of revenue expenditure was financed by Union financial transfers in high-income States.

Arising Concerns with Current Federal Finances

There are following challenges associated with present federal finances in India:

  • Borrowing Burden: Current fiscal policies, like funding government expenses through borrowing, potentially burden future generations with higher taxes. 
    • Disproportionate borrowing by States to meet their expenditures, leading to potential breaches of Fiscal Responsibility Acts.
  • Fiscal Imbalance: The high-income States raise higher amounts of their own tax revenue and curtail their own revenue expenditure, yet incur higher deficits because of lower Union financial transfers compared to low-income States.
    • Low-income States: They finance a smaller portion of their revenue expenditure with their own tax revenue and also receive larger amounts of Union financial transfers. 
    • High-income States: They finance a substantial portion of their revenue expenditure with their own tax revenue but receive too little Union financial transfers. 
    • On Deficit: The high-income States had to incur a deficit of 13.1%, and the low-income States ended up with a deficit of only 6.4% of revenue expenditure. 
  • Priority of Equity over Efficiency: Current distribution formulas prioritise equity such as population, area, etc., over efficiency such as tax effort, fiscal discipline, etc.
  • Inappropriate Devolution: According to the Reserve Bank of India’s (RBI) of State Finances: A Study of Budgets of 2023-24 report, due to increase in cesses and surcharges, the divisible pool has shrunk from 88.6% of gross tax revenue in 2011-12 to 78.9% in 2021-22 despite the 10-percentage point increase in tax devolution recommended by the 15th finance panel.
  • Issues with GST: Goods and Services Tax (GST) subsumes the majority of the indirect taxes viz. excise, services tax, sales tax, octroi etc., and the GST Council decides the central and state GST rates. 
    • However, states have lost the autonomy to decide the tax rates of subjects that fall within the State List and the inability of states to fix tax rates to match their development requirements implies greater dependence on the centre for funds.
  • Issues in Finances of the Third Tier of Government: The persistent failure to place the third tier properly on the fiscal federal map of India is a serious issue. 
    • For example, the 73rd and 74th Constitutional Amendments introduced the XI and XII Schedule, which, respectively, list out the subject matter for the Panchayati Raj Institutions and Municipalities by simply lifting items from the State list and Concurrent list lack operational meaning. 
  • Limits State’s Borrowings: The Net Borrowing Ceiling (NBC) limits the borrowings of States from all sources including open market borrowings. 
    • For example, Kerala has moved the Supreme Court contending that the Centre’s imposition of a NBC on the State, violates Article 293 (borrowing by states) of the Constitution. 
  • Determining State Finances: According to Article 293 of the Constitution, the State has to obtain the consent of the Centre to raise any loan, if any part of the previous loan extended by the Centre is outstanding. 
    • Parliament does not have the power to legislate upon the ‘Public Debt of the State’ as this finds place in the State List of the Constitution.

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Way Forward

To combat the arising challenges, following measures need to be considered:

  • Weighted Indicators: Variables such as tax effort and fiscal discipline carry smaller weight in the distribution formula to reward the fiscal efficiency of States. It would encourage states to improve fiscal management and revenue collection, and hence would help in ensuring more sustainable finances.
  • Inclusion of More Fiscal Variables: It would be appropriate to include more fiscal variables in the tax devolution criterion such that the Union financial transfers change the fiscal behaviour of the States in the desired direction.
  • Incentivise Fiscal Responsibility: The FC should assign a larger weight to fiscal indicators and incentivise tax effort and expenditure efficiency through larger Union financial transfers. This will automatically ensure intergenerational fiscal equity and sustainable debt management by States.
  • Provide Support for High-Income States: States like Maharashtra, which financed 59.3% of their expenditure through their own revenues, should receive fairer Union transfers to acknowledge their contribution and prevent fiscal imbalances.
  • Policy Reforms: There is a need to implement such fiscal policies that prevent excessive borrowing and ensure intergenerational equity. 
    • Example: Enforcing Fiscal Responsibility Acts strictly and adjusting policies to avoid future generations being burdened by current fiscal decisions.

Conclusion

Balancing both intragenerational and intergenerational equity is important, and it reiterates the need to balance equity and efficiency in the distribution formula for tax devolution to States. This squarely falls under the purview of the FC to have a fair mechanism to address the conflicting equity issues.

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The Centre is likely to introduce six new bills during the upcoming monsoon session of the parliament scheduled to begin on July 22.

  • Union Finance Minister is slated to introduce the budget on Tuesday, July 23.

List of Six Bills

  1. Finance Bill
  2. Disaster Management Bill
    • The disaster management bill, once enacted, is expected to bring more clarity and convergence in the roles of different organisations working in the sector.
  3. Bhartiya Vayuyan Vidheyak Bill
    • Bharatiya Vayuyan Vidheyak, 2024 is one of the bills aimed at facilitating a legal way of replacing the British era Aircraft Act of 1934 to ensure provisions for ease of doing business in India’s civil aviation sector.
  4. Coffee (Promotion and Development) Bill
    • The coffee promotion bill has been prepared to give wider promotion and developmental avenues to the Indian Coffee industry.
  5. Rubber (Promotion and Development) Bill
  6. Boilers Bill

Monsoon Session Is Scheduled To Begin

  • The first session of the 18th Lok Sabha commenced on June 24.
  • Budget to be Presented: The Monsoon Session of Parliament is scheduled to begin on July 22, 2024, coinciding with the presentation of the Union Budget.
  • The Union Budget, a crucial financial statement estimating revenue and expenditure for the fiscal year, was presented twice in 2024 due to Lok Sabha elections.
  • Nirmala Sitharaman, BJP’s Finance Minister, will present the Union Budget 2024 for FY 2024–25 in July, marking her seventh consecutive budget presentation. 

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Business Advisory Committee

Meanwhile, Lok Sabha Speaker Om Birla also constituted the Business Advisory Committee (BAC), which decides the parliamentary agenda. 

About Business Advisory Committee

  • The BAC is a parliamentary committee established under Rule 287 of the Rules of Procedure and Conduct of Business in Lok Sabha. 
  • This committee regulates the programme and time table of the House. It allocates time for the transaction of legislative and other business brought before the House by the government. 
  • Members: The Lok Sabha committee consists of 15 members including the Speaker as its chairman. 
    • The committee consists of 15 members, including:
      • The Speaker of Lok Sabha (Chairperson)
      • The Deputy Speaker
      • A minister nominated by the Prime Minister
      • Leaders of recognized parties and groups in Lok Sabha
      • Other members nominated by the Speaker
    • In the Rajya Sabha, it has 11 members including the Chairman as its ex- officio chairman.

Sessions of Indian Parliament

  • About: A session of the Indian Parliament is the period during which a House meets uninterruptedly almost every day to manage the business.

Summoning

  • The President of India formally summons MPs to convene for a session. The President is bound by the decision of the government.
  • The President addresses both the houses during the first session of the year and also the first session after a general election.
  • There is no minimum number of days that the Parliament is required to meet in a year.
    • It is the time period spanning between the first sitting of a House and its prorogation (or dissolution).
  • Responsibility of Conducting: The Government of India is responsible for commencing a Parliamentary session and does not have a fixed parliamentary calendar.
  • The Cabinet Committee on Parliamentary Affairs is responsible for the decision on convening the Parliamentary session.
  • Constitutional Provisions: The summoning of session is specified in Article 85 of the Indian constitution.
    • It does not provide the details of the session or number of times it has to be held. 
    • It only says that the gap between two sessions of the Parliament cannot exceed 6 months, which means the Parliament must meet at least two times in one year.
  • A session of Parliament is ended by: Adjournment or Adjournment Sine Die, Prorogation, or dissolution (in the case of the Lok Sabha).

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Adjournment

  • Adjournment refers to suspending proceedings for the day. The sitting will be suspended with the intention of resuming on the next working day or a specified later date.
    • Sitting: A sitting is the daily meeting of the house. A sitting usually ends following an adjournment.

Adjournment Sine Die

  • The term “adjournment sine die” refers to suspending a session of Parliament for an indeterminate amount of time.

Dissolution

  • It means that the President of India will dissolve the Lok Sabha on the advice of the Prime Minister.

Prorogation

  • A prorogation refers to the termination of a session of the House by an Order by the President.
  • Prorogation signals the end of the sitting as well as the session and not the dissolution.

Different Sessions of Indian Parliament

  • The Indian Constitution does not provide for three sessions of the Parliament. It is by convention that Parliament meets for three sessions in a year.
    1. Budget Session
      • The budget session is the longest session and starts towards the end of January, and concludes by the end of April or first week of May. 
      • The session is generally split into two periods with a gap of one month between them so that Parliamentary Committees can discuss the budgetary proposals.
      • The budget session starts with the President’s Address to both Houses. 
    2. Monsoon Session
      • The second session is the Monsoon Session, which is for a three-week period and usually begins in July and finishes in August. 
    3. Winter Session
      • The winter session is the final session of the year and is held for a three-week period between November and December.

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Joint Session

  • Article 108 of the constitution provides for a joint sitting of the Lok Sabha and the Rajya Sabha, in order to break any deadlock.
  • The President of India calls for a joint session. 
  • Presided by: The speaker of the Lok Sabha presides over the joint session. In case he/she is unavailable, the deputy speaker of Lok Sabha will preside.
    • If both are not available, the deputy chairman of Rajya Sabha will preside over the joint sitting. 
    • If none of the above are available, any other member of the Parliament can preside by consensus of both the Houses.
  • A joint session can be conducted only in cases of deadlock while passing general bills and not constitutional amendment bills or money bills.

Special Session

  • A special session is convened for specific occasions when MPs meet to conduct the House business outside of their usual legislative sessions.
  • The President of India will summon special session as per provisions of Article 85(1) of the Constitution.

Lame Duck Session

  • The lame-duck session is the final session of the old Lok Sabha after a new Lok Sabha is elected.

 

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Recently, International Council on Monuments and Sites (ICOMOS) has prepared a report ‘Evaluations of Nominations of Cultural and Mixed Properties’ for the 46th ordinary session of the World Heritage Committee to be held in New Delhi 

ICOMOS Recommending Moidams

  • After evaluating the property on all grounds International Council on Monuments and Sites (ICOMOS) recommendations that the property to be inscribed on the World Heritage List 

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ICOMOS

  • France-based ICOMOS, also an advisory body to UNESCO for cultural heritage, is an international
  • non-governmental organisation that is comprised of professionals, experts, representatives from
  • local authorities, companies and heritage organisations
  • It is dedicated to the conservation and enhancement of the architectural and landscape heritage throughout the world.
  • ICOMOS recommends that Moidams – the Mound-Burial System of the Ahom Dynasty be inscribed on the World Heritage List based on criteria (iii) and (iv)
    • Criteria (iii): It asserts that it bears a unique or exceptional testimony to a cultural tradition or civilization that is either living or has disappeared
    • Criteria (iv): It states that it is an outstanding example of a type of building, architectural or technological ensemble, or landscape which illustrates significant stages in human history.

About Moidams

Moidams

  • About: The Moidams are the burial grounds of Tai Ahom kings and queens. 
    • The Moidams enshrine the mortal remains of Ahom royalty along with the objects they cherished. 
  • Word derived from: The word ‘Moidam’ is derived from the Tai word Phrang-Mai-Dam or Mai-Tam. 
    • Phrang-Mai means to put into the grave or to bury and Dam means the spirit of the Dead.
  • Located in: They are the resting place of royal families in Assam’s Charaideo district.
  • Structure: Moidams are hemispherical burial mounds varying in size based on the status of the deceased, featuring a chamber, an earthen mound with a brick structure for offerings, and an octagonal boundary wall with an arched gateway to the west. 
    • Smaller Moidams lack some of these features.
  • Comparable to: The Moidams are comparable to the pyramids of Egypt.
  • Practice adopted from: After the 18th century, the Ahom rulers adopted the Hindu method of cremation and began entombing the cremated bones and ashes in a Moidam at Charaideo.
  • Practice ceased:  The burial practice ceased after the Tai Ahom rulers converted to other religions (Hinduism and Buddhism). 
  • Factors Affecting the Property: The main factors affecting the Moidams are heavy rainfall, soil erosion and vegetation growth. These natural elements pose challenges to the preservation and maintenance of the site.
  • Cultural Significance of Moidams: Ahom Moidams is an exceptional example of a Tai-Ahom necropolis that represents in a tangible way their funerary traditions and associated cosmologies.

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Ahom Kingdom

  • Origins of the Ahom People: 
    • Tai-speaking people originated possibly from South China or Myanmar.
    • They migrated to Assam in 1228.
    • Introduced wet-rice cultivation and state formation techniques.
  • Establishment:
    • The Ahom Dynasty was founded in 1228 in the Brahmaputra Valley of Assam by Chaolung Sukapha.
    • Sukaphaa earned the title “Chaolung” for his exceptional leadership.
    • The Ahom state depended upon forced labour. Those forced to work for the state were called paiks. 
  • Ahom Religion and Society: Initially worshipped tribal gods, later influenced by Brahmanas and Hinduism.
  • Mughal Incursions & British Rule: Mughal attempts to capture Assam failed due to Ahom resistance.
    • Ahom faced rebellion in the 1800s, eventually succumbing to Burmese invasion.
    • The British drove out Burmese in the First Anglo-Burmese War (1824-1826).
    • The Dynasty retained sovereignty for 600 years until Assam was annexed by the East India Company in 1826 under the Treaty of Yandaboo.

What are World Heritage Sites?

  • About: A World Heritage site is a landmark or area with legal protection by an international convention administered by the United Nations Educational, Scientific and Cultural Organisation (UNESCO). 
  • World Heritage: The 1972 Convention concerning the Protection of the World Cultural and Natural Heritage recognizes that certain places on Earth are of “outstanding universal value” and should form part of the common heritage of humankind.
  • Designated by: These sites are designated by UNESCO for having cultural, historical, scientific or other forms of significance.
  • Backed by: It is backed by the international agreement known as the Convention concerning the Protection of the World Cultural and Natural Heritage, established by UNESCO in 1972.
  • MoidamsTentative UNESCO list of World Heritage Sites: These are identified by individual countries that they consider to have “outstanding universal value” and may be suitable for inscription on the World Heritage List. It is published by the World Heritage Centre.
  • Categorisation of Sites – The sites are categorised in three types:
    • Cultural heritage sites: It includes historic buildings and town sites, important archaeological sites, and works of monumental sculpture or painting
    • Natural heritage sites:  It includes those natural areas that have excellent ecological and evolutionary processes, endangered species etc.
    • Mixed heritage sites: It contains elements of both natural and cultural significance.
  • India and World Heritage Site: India has 42 properties inscribed on the World Heritage List.
    • Cultural Heritage Site in India: 34
    • Natural Heritage Site in India: 7 
    • Mixed Heritage Site in India: 1 (Khangchendzonga National Park)

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United Nations Educational, Scientific and Cultural Organization (UNESCO)

  • About: It is a specialised agency of the United Nations (UN), headquartered at the World Heritage Centre in Paris, France.
  • It was founded in 1945 as the successor to the League of Nation’s International Committee on Intellectual Cooperation.
  • Vision of UNESCO: Since wars begin in the minds of men and women, it is in the minds of men and women that peace must be built. 
    • UNESCO uses education, science, culture, communication and information to foster mutual understanding and respect for our planet. UNESCO work to strengthen the intellectual and moral solidarity of humankind and bring out the best in our shared humanity.
  • Mission: UNESCO has main priorities for the achievement of the Sustainable Development Goals and the improvement of the human condition.
    • UNESCO is a member of the United Nations Sustainable Development Group.

 

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