The University Grants Commission (UGC) has recently unveiled draft regulations for selecting and appointing Vice Chancellors (VCs) in universities.

Key Proposal by UGC

• Widening Eligibility Criteria: Current Rule is that only academicians with a minimum of 10 years as a professor are eligible for VC positions and now the proposed Change is to  Include professionals with 10+ years of experience in industry, public administration, or public policy.
• Constitutional Concerns Education is a subject under the Concurrent List, requiring cooperative decision-making between the Centre and states. 
  • State governments argue that the regulation undermines their authority over university administration.

Enroll now for UPSC Online Course

Functions of University Grants Commission

• Purpose of the Act: The UGC Act 1956 was enacted by Parliament to ensure “the co-ordination and determination of standards in Universities” and establish the University Grants Commission (UGC) to achieve this objective.
• Promotion and Coordination: Take measures to promote and coordinate university education across the country.
• Maintaining Standards: Ensure the quality of teaching, examinations, and research in universities.
• Fund Allocation: Allocate funds to universities for maintenance and development purposes.
• Advisory Role: Advise the Union or State governments on the allocation of grants and other measures for improving higher education.
• Information Dissemination: Collect and share information on university education in India and abroad with relevant institutions.
• Regulation of Fees: Establish rules for regulating fees and other charges in universities.
• Powers to Make Regulations: Section 26 of the Act empowers the UGC to make regulations necessary to implement the Act’s mandate. Regulations must align with the Act and rules made under it.
• Areas of Regulation: Defining  criteria for appointing teachers in universities, establishing minimum standards for instruction and degree-granting processes and regulating coordination in the use of resources and facilities among universities.

Judicial Interpretations

• Bombay High Court in Suresh Patilkhede Case (2011): Qualifications and methods of appointment for Pro-Chancellors and Vice Chancellors do not pass the ‘direct impact’ test on educational standards.
• Issue with Section 26: Under Section 26 of the UGC Act, the UGC lacks the mandate to regulate the selection or appointment of Vice Chancellors.
  • Subordinate legislation like UGC regulations cannot override State laws enacted by plenary legislative powers.
• Supreme Court in Kalyani Mathivanan Case (2015): UGC regulations, as subordinate legislation, have binding effect on universities they apply to. The regulations take effect after being laid before both Houses of Parliament. 
  • The observation regarding parliamentary approval misinterprets Parliamentary procedure; Parliament reviews, but does not formally approve regulations.
• Kalyani Mathivanan Case : The Supreme Court upheld that Regulation 7.3.0 is recommendatory for universities under State legislation. 
  • This reinforces the principle that UGC regulations cannot mandatorily dictate administrative appointments in State-governed universities.

Constitutional Issues

• Article 254: If a State law is repugnant to a Central law, the State law is void to the extent of repugnancy. However, subordinate legislation like UGC regulations is not classified as “Central law” under Article 254.
• Article 254(2) : State laws reserved for and assented to by the President prevail over any inconsistent Central law. This clause applies only to Bills passed by the State legislature, not to rules or regulations framed thereafter.
  • Only a Bill passed by Parliament and assented to by the President can override State legislation, not subordinate regulations like those issued by the UGC.

Check Out UPSC Modules From PW Store

Conclusion

The interplay between UGC regulations and State laws highlights a complex relationship between subordinate legislation and federal principles. 

DOWNLOAD PDF

The five new candidates of BRICS formally became members on January 1, 2024.

Evolution of BRICS

• Origin of BRIC: Coined in 2001 by Jim O’Neill, then chief economist at Goldman Sachs, to identify Brazil, Russia, India, and China as emerging economies projected to dominate global economic growth by 2050.
• Institutional Growth: Initially an economic grouping, BRIC gained geopolitical weight and institutional significance over time. The inclusion of South Africa in 2010 transformed it into BRICS.
• Current Status: The bloc has expanded its agenda to address diverse global issues, including: international security, reforms in the global financial system. Membership expansion, reflecting its growing influence as BRICS+.
• Anti West: Many Western observers view BRICS as an increasingly anti-Western organization. 
  • For ex: Trump warned that BRICS would face severe consequences if it adopts its own currency or moves towards de-dollarization.

Enroll now for UPSC Online Classes

Expansion of BRICS

• New Members: 2025 begins with the BRICS (Brazil, Russia, India, China, and South Africa) undergoing significant expansion, having fully integrated four new members in 2024: Egypt, Ethiopia, Iran, and the United Arab Emirates.
  • Saudi Arabia’s membership in BRICS remains uncertain, with the country putting its participation on hold.
• Interest from Regional Powers: Several emerging powers, including Türkiye, Vietnam, Thailand, Malaysia, and Indonesia, have expressed interest in joining BRICS, signaling its growing influence.
• Argentina’s Withdrawal: Argentina declined its previously accepted invitation to join BRICS following the inauguration of President Javier Milei in 2023, reflecting changing national priorities. 
  • The new President of Argentina declined the invite as he is a supporter of Trump administration 

BRICS+

• Significance: BRICS+ represents 47% of the world’s population and 41% of global GDP. With the inclusion of waiting-list countries like Türkiye and ASEAN members, it could exceed 50% in both indicators.
• Potential Global South Leader: Positioned to represent the Global South, although the term itself remains contested. It aims to counterbalance the influence of the G7, which also faces internal contradictions similar to those within NATO.
  • Despite its challenges, BRICS+ is emerging as a significant geopolitical and economic force in the evolving international landscape.
• Strategic Interests : The bloc’s rise is linked to strategic alignments and complementary agendas among its members. The fragmented international landscape, particularly the U.S.-China rivalry has accelerated BRICS+ development as an alternative power center.
• Internal Contradictions: BRICS+ is characterized by divergent agendas and internal tensions, notably the contrasting paradigms of China and India.

Challenges Associated With BRICS Expansion

• Opposition by India: India opposes rapid BRICS expansion, favoring a gradual approach to adding members. While China pushes for swift induction, India argues that expansion could lead to diverse views and reduced efficiency.
• China’s Agenda: China seeks to leverage BRICS for its interests, aiming to challenge US hegemony by rapidly inducting new members.
• Leveraging Individual Interests: Despite internal contradictions, BRICS members have effectively aligned their individual national interests with the broader goals of the bloc, maintaining its unity.
• Future Challenges: The inclusion of disruptive players like Iran raises concerns about the bloc’s ability to sustain cohesion and navigate increasing diversity.

Check Out UPSC NCERT Textbooks From PW Store

Conclusion

While BRICS+ has managed to maintain its integrity so far, its ability to adapt to new dynamics will determine its long-term effectiveness and stability.

DOWNLOAD PDF

Recently, the Supreme court  urged the Centre to consider the demands of farmers while responding to a fresh plea seeking a legal guarantee for Minimum Support Price (MSP). 

Background

• Subsidies: In India, the government provides subsidies on various agricultural inputs such as fertilizers and electricity to support farmers.
• Fertilizer Subsidy: If the price of a fertilizer is ₹500 per kg, the government mandates companies to sell it at ₹300. The remaining ₹200 is reimbursed to the fertilizer company by the government as a subsidy.
• Electricity Subsidy: Many states provide free or subsidized electricity to farmers, particularly for irrigation purposes, promoting affordability.
• MSP Expansion: Traditionally focused on rice and wheat, the MSP system has now been expanded in several states to include other crops, ensuring better price support for farmers.
  • All these measures are examples of agricultural subsidies, aimed at reducing costs for farmers and ensuring economic and food security.
• Impact of Government Intervention: Government interventions often create inefficiencies but play a critical role in ensuring well-functioning markets.

Enroll now for UPSC Online Course

Steps Government should take to Improve Agriculture Pricing

• Enhancing Market Accessibility: Ensure information symmetry by providing real-time data to farmers and consumers. Develop physical infrastructure such as roads, storage facilities, and logistics.
• Efficient Value Chains: Facilitate institutional innovations to reduce price spreads between farmers and consumers.
  • An efficient agricultural value chain is a system that adds value to agricultural products at each stage, while minimizing waste and inefficiency.
• Forward-looking Mechanisms: Promote futures markets to minimize risks and enable farmers to make planting decisions based on future price forecasts rather than historical prices.
  • For example, during the Rabi season, a farmer plants wheat and signs a pre-selling agreement to sell 3,000 kg of wheat at a predetermined price after six months.
  • If this agreement is signed before sowing, it provides the farmer with price assurance, minimizes risk, and helps in better planning of resources. 
• Market-driven Pricing: Align agricultural reforms with India’s 1991 liberalization policies to integrate market forces into the agricultural sector.

Manmohan Singh’s Contribution to Economic Reforms

• Industrial Liberalization: Freed industrial policies from governmental controls and dismantled the Licence Raj. He liberalized the exchange rate and reduced import duties, opening India to global trade.
• Agriculture Exclusion: Agriculture was not included in the reforms due to its classification as a state subject.
• Urea Price Reform :  He proposed a 30% hike in urea prices to reflect rising costs but faced resistance from within the Congress party due to fears of losing electoral support.

Background of Minimum Support Price

• Food Shortages in the 1960s: India imported 10 million tonnes of wheat annually under the PL-480 agreement with the U.S. Foreign aid was politically conditioned
  • For ex: the U.S. suspension of food shipments for 72 hours over India’s pro-Vietnam stance.
• Green Revolution: The import of high-yielding wheat seeds from Mexico in 1966 marked a turning point. MSP for wheat and paddy was established to support the adoption of new agricultural practices.
• Population  Pressure in 1965: With a population of 500 million, food security was a critical concern, necessitating price support mechanisms for staple crops.
• Origin of MSP: The Centre introduced MSP in 1965 to address food security concerns during shortages of staples like wheat and rice.
  • MSP was tied to the Agricultural Prices Commission (APC), aimed at stabilizing farmer incomes and ensuring food availability.

Check Out UPSC CSE Books From PW Store

Present Status Agricultural produce in India

• Population and Food Security: India, with 1.43 billion people, provides free wheat and rice (5kg/person/month) to over 800 million beneficiaries under the Public Distribution System (PDS).
• Global Role: India is the largest exporter of rice globally, with a significant surplus in production.
• Excessive Stockpiling: The Food Corporation of India (FCI) holds rice stocks nearly three times the buffer stock norms, highlighting inefficiencies in procurement and storage.

Challenges Associated with MSP

• Expansion of MSP Basket: Originally designed as an indicative price for crises, MSP now covers multiple crops due to political pressures.
• Agriculture as a State Subject: Activists opposed central farm reforms, arguing agriculture falls under state jurisdiction. However, the demand for legalizing MSP contradicts this stance, as states should ideally bear responsibility for such policies.
• Regional Overproduction: Open-ended procurement in states like Punjab and Haryana has resulted in excessive rice production, driven by reliance on free power and subsidized fertilizers, which encourage monocropping.
• Ecological Consequences: Overproduction of rice is causing groundwater depletion, soil degradation, Greenhouse gas emissions especially Methane emissions from paddy cultivation contribute to climate change.
• Public Distribution System (PDS) Challenge: The PDS system provides free wheat/rice to 57% of the population, creating a self-reinforcing loop Free grain distribution necessitates the procurement of approximately 60 million tonnes annually.
  • This massive procurement fuels inefficiencies and disrupts market dynamics.
• Dependency: Despite claims of lifting 248 million people out of poverty, continued reliance on free distribution suggests systemic issues in addressing economic dependency.

Way Forward

• Revisiting the MSP Framework: The current Minimum Support Price (MSP) framework requires significant reform, not by making MSP legal, but by addressing inefficiencies in the pricing of agricultural products and inputs like fertilizers and electricity.
• Pricing Reforms: Allow market-driven pricing for both outputs (rice and wheat) and major inputs (fertilizers and power).
• Land Market Reforms: Open up land lease markets and reduce regulatory controls to enhance efficiency in land use.
• Improving Subsidy Mechanism: India’s digitalized food system provides an opportunity to improve subsidy mechanisms, ensuring more efficient and targeted support for beneficiaries.
• Direct Cash Transfers: Implement direct cash transfers for targeted beneficiaries based on economic need 
• • Extremely poor: Receive large subsidies. 
  • Above poverty line: Receive lesser support.
• Input Subsidy Reform: Aggregate input subsidy support should be distributed on a per-hectare basis, ensuring fairness and efficiency.
• Market-driven Pricing: Free up the pricing of food and agricultural inputs like fertilizers and power to eliminate distortions.
• Utilizing Efficiency Gains: Redirect savings from subsidy reforms into:
  • Agricultural R&D and extension.
  • Education and skill development.
  • Irrigation and water management.
  • Physical infrastructure: Roads and rural markets

Enroll now for UPSC Online Classes

Conclusion

To achieve the vision of Viksit Bharat by 2047, India must prioritize sustainable and impactful reforms over competitive populism.

DOWNLOAD PDF