Sarat Chandra IAS Academy

Current Affairs – 29th August 2023



Today Topics List:

  1. Jammu & Kashmir : Article 35 A

  2. China releases new map showing Territorial claims

  3. Population growth Not a Panacea

  4. Prime Minister’s Economic Claims



Jammu & Kashmir : Article 35 A

    • Chief Justice of India, said Article 35 A denied the fundamental rights to many.

What does the CJI Say?

  • Article 35A gave special rights and privileges to permanent residents and virtually took away the rights for non-residents. 

Article 35A was introduced through the Constitution (Application to Jammu and Kashmir) Order, 1954 issued by thePresident under Article 370

Who are Permanent Residents?

  • People who were hereditary State subjects as in 1927, when J&K was a princely state prior to its accession to the Indian Dominion in 1947.
  • Article 35 A demarcated permanent residents with exclusive right to purchase land, seek State government employment and other benefits in education and health care.
    • The others, called ‘non-permanent residents’, were not privy to these privileges.

What does Article 35 A provide?

  • Article 35 A provides rights included,
    • The right to equal opportunity of State employment,
    • Right to acquire property and
    • The right to settle in Jammu and Kashmir
    • It even granted immunity from judicial review to these special privileges.
  • Article 35A had enjoyed a status over and above the Ninth Schedule (laws outside the ambit of judicial review) of the Constitution.

Issues with Article 35 A as per the Government:

  • This artificially created class of ‘permanent residents’ alienated people who did not fall within the category.
  • Article 35A further mandated that any law which provides for these special privileges to this class would not violate fundamental rights like ,
    • Articles 14 (right to equality),
    • Article 19 (1)(f) and 31 (then right to property),
    • Article 19(1)(e) (right to settle anywhere in the country) and
    • even Article 21 (right to life and personal liberty) and
    • Article 22 (protection against preventive detention).
  • That demarcating line between permanent residents and non-residents did this for decades together.
  • People, both Hindus and Muslims, driven out of Pakistan-occupied Kashmir in 1947 were not recognised as permanent residents until 2019.
  • The large population of safaikaramcharis brought to J&K for manual work were not given this status despite residing in the State for years.
  • Article 35A had been a hindrance to the growth and flow of investments into J&K. 
  • The class of people known as ‘permanent residents’ were misguided into believing that they were enjoying a privilege that none could take away from them.

The Question of federalism?

  • The abrogation of Article 35 A was facilitated by first dissolving the J&K State Legislature and then proclaiming President’s Rule under Article 356 on the ground of breakdown of constitutional machinery in the State.
  • Article 3, made it mandatory for the President to consult the State Legislature before altering the status of a State.
  • But, the proclamation of President’s rule in December 2018 had done away with the applicability of the proviso to Article 3.
    • But the Parliament assumed the role of the Jammu and Kashmir State Legislature, which is usually done under President’s rule.



China releases new map showing Territorial claims

    • Chinese Government released the 2023 edition of the standard map of China. (Released by ministry of Natural resources”
      • It continues to show the entire state of Arunachal Pradesh and the Aksai Chin region within Chinese Borders

Disputed claims:

  • The territorial claims on China’s eastern borders, as also the so-called nine-dash line covering the entire South China Sea, are shown on the map as in previous editions.
  • Also as in previous maps, a “tenth dash” is placed east of Taiwan, underlining Beijing’s claims over the island.
  • Beijing in April announced it would “standardise” the names of 11 places in Arunachal Pradesh, including a town close to the Arunachal Pradesh capital of Itanagar.
    • This was the third such list “renaming” places in Arunachal Pradesh, and was seen by observers as a response to India holding events in the lead-up to the G-20 summit in the State
  • Beijing has tightened management of border areas, passing in 2022 a new border law that lists various responsibilities for civilian and military authorities in China to take steps to “safeguard national sovereignty”. 
    • The issuing of new names is related to Article 7 of the law, which calls for promoting border education at all levels of government. 
    • Article 22 calls for the Chinese military to carry out border drills and to “resolutely prevent, stop and combat” what it calls “invasions, encroachments and provocations”.



Population growth Not a Panacea

    • Moody’s Investors service in a report said that, India’s population growth would raise its labour force availability but that alone won’t be enough to make the economy stronger or improve fiscal outcomes
      • Quality of the education is shown as a reason for such conclusion.
      • It bracketed India’s current education outcome levels with that of Pakistan and Bangladesh.

Status of South east Asia:

  • In a report on Sovereigns in South and South East Asia, titled ‘Population growth alone will not drive credit benefits for emerging economies”.
  • India, Bangladesh, Indonesia, Pakistan, the Philippines and Vietnam will account for a third of the global population increase over the next 20 years and 40% of the uptick in working age population.
    • It expects continued population growth in the region to support economic expansion as working-age populations will remain large compared with younger and older citizens.
  • However, the availability and scale of labour inputs alone will not drive materially stronger economic strength or better fiscal outcomes.
    • Other conditions such as strong education and quality infrastructure are also key to reaping the benefits.
  • There remains a considerable gap in the quality of education between Pakistan, Bangladesh and India compared with China and other peers in South East Asia, which contributes to labour force participation imbalances.
    • Stating one reason that variations in the total mean years of schooling likely reflects gender disparities in educational achievement.
    • The difference in the proportion of the male and female population that has completed an upper secondary education is most pronounced in India and Bangladesh.
  • Way forward:

The development of relevant engineering and programming expertise may actually provide employment opportunities, not only in technology-related fields, but also in higher-value-added manufacturing given the increasingly complex products being produced in some of these large countries, for example, smartphones in India and electric vehicles in Vietnam.


Prime Minister’s Economic Claims

    • During the BRICS Business Forum leaders’ summit in South Africa, Johannesburg Prime Minister said, “Soon India will become a $ 5 Trillion economy”.
      • In 2018, a working group under the Ministry of Commerce and Industry set 2025 as a deadline for achieving the same.
      • The economic slowdown induced by the Covid 19 pandemic has upended the target deadline.
    • While addressing the nation on 77th Independence Day, PM noted that India was the world’s 10th largest economy in 2014, but now stands in fifth spot.
    • As per PPP based GDP estimates, i.e in terms of purchasing power parities estimates through price surveys of a common basket of commodities across countries.
      • It shows India’s economy is over $ 10 trillion in 2022, which has consistently expanded from the 1990s, surpassing Germany in 2005 to become 4th largest economy.
      • It surpassed Japan in 2009 to become 3rd.

What is the issue with PM’s claims?

  • PM is using Nominal Gross Domestic Product (GDP) estimates to make claims about the size of the economy over other economies.
    • Nominal GDP gives an estimate of the national output for a year at the prices prevailing in that year.
    • The actual size of the economy reflects in real GDP, which is adjusted for a price change
    • The National Governments, United Nations, and other international agencies such as the World bank and International Monetary Fund base their economic growth on Real GDP than nominal.
    • That is, India can become 5 trillion $ economy in nominal terms by using Inflation, without any significant change in the output.
  • International Comparison of economies become complex due to exchange rate conversions.
    • Market based exchange rates are not the appropriate way in which national GDPs can be converted into a common currency for comparison.
    • Because, the existence of a substantial share of non-tradeable commodities in national outputs as well as the innate volatility in market determined exchange rate.
    • As per nominal GDP India’s economy is $ 3.39 trillion, stands at fifth. But, as per Real GDP it is $ 3 trillion, standing at 6th
  • Studies in economic development start with the premise that per capita income and output are key indicators of Country’s standard of living, not the total size of economy.
    • India’s Per capita Income (Gross national income – GNI) and GDP continues to remain the lowest among all the countries in G 20.
    • India is the poorest country among the G 20 nations.
    • With almost equal population in 2021, China’s per capita income (at 2017 prices) was PPP $17,504 while India’s was PPP $6,590. Brazil’s PPP was $14,370 and South Africa got PPP $12,948.
  • It is further complicated by the skewed distribution of that income.
    • 7% of its pre tax national income went to the top 1% of the population in 2021, while only 13 % went to the bottom 50% of the population.
    • While in Brazil (9.1%) and South Africa (5.8%) the share of National income for the bottom 50% of the population was even lower than India, China (13.7%) and Russia (15.7%) had higher income shares.
    • This unfair reality of the top 1% cornering a disproportionate share of the national income in emerging economies gets concealed by official rhetoric.

  India aspires to catch up with China or the US in terms of GDP and per capita income, it needs to move beyond rhetoric and augment resource mobilization and real investment in physical and human capital to levels much higher than what has been achieved till date.

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