Three approaches to measuring GDP and why they matter

• Inflation plays a crucial role in GDP measurement by influencing consumer spending, production costs, and overall economic growth.
•  Retail inflation, based on the Consumer Price Index (CPI), fell to a five-month low of 4.31 per cent in January, mainly due to a decline in prices of key food items such as vegetables. Since inflation influences consumer spending, production costs, and overall economic growth, it plays a crucial role in Gross domestic product (GDP) calculations. But what are the possible ways of measuring GDP?

Three ways of measuring GDP

• GDP is the sum of the market value of all the final goods and services produced within the geographical boundaries of a country each year. The value of GDP measured in current prices is called Nominal GDP but it might not be a good measure of production because the increase in value may result from an increase in prices and not output. Nominal GDP, adjusted for price changes, is called Real GDP.
• Nominal GDP per capita = Nominal GDP/total population
• Real GDP per capita = Real GDP/total population

Furthermore, economists rely on three approaches to accurately measure GDP: Expenditure, Income, and Product. GDP calculated from all these approaches should give the same value.

• However, GDP measurement also depends on the structure of the economy. In a four-sector open economy, economic activities involve interactions among four key sectors:
• 1. The consumers
• 2. The producers
• 3. The government sector
• 4. The rest of the world sector (ROW)
•  Each sector has a significant role in determining GDP, and their combined contributions are reflected in the three GDP measurement approaches

Expenditure approach

• The expenditure approach is a sum of four key components – personal consumption expenditure (C), investment expenditure (I), government expenditure (G), and net exports (X-M) by the ROW sector. 
• Personal consumption expenditure is the sum of expenditure on consumer durables, non-durable goods, and services. Gross private domestic investment is the total of business fixed investment (non-residential structure, equipment, and software), residential investment and inventory investment. 
• Government purchases are calculated both at the federal level and state and local levels and consist of both defense and non-defense expenditures. Net exports are calculated as the value of exports to the ROW minus the value of imports from the ROW. Thus, this approach captures the total spending within an economy.

Income approach

• The income approach is very simply calculated as income earned from all sources and includes wages and salaries, proprietors’ income (earnings from self-employment and unincorporated businesses), rental income, corporate profits, and net interest earned (interest earned minus interest paid). Additionally, the concept of GDP also includes net indirect taxes, statistical discrepancy, depreciation, and net payments made to the ROW.

Product approach

• The product approach, also known as the output method or value-added method, adds up the market value of all goods and services produced, excluding the goods used in the intermediate stages of production. 
• The three GDP measurement approaches must always give the same total due to the following relationships:

Equivalence of production and expenditure: The market value of goods and services produced in each period is, by definition, equal to the amount that buyers must spend to purchase them.

• Thus, Value of Product Approach = Total Obtained by Expenditure Approach (Equation 1).

Equivalence of expenditure and income: What sellers receive must be equal to what buyers spend. In other words, sellers’ receipts represent the income generated from economic activity, including income paid to workers and suppliers, and taxes paid to the government, and profits. 

• Therefore, Total Expenditure = Total Income (Equation 2)
• Because of (1) and (2) , Total product = Total income
• The Total Product = Total Income = Total Expenditure is called the fundamental identity of national income accounting. 

GDP calculation: Factor cost vs. market price approaches

• India’s GDP is estimated by the Central Statistical Office (CSO) using two methods. One is based on economic activity (at factor cost, this does not include taxes), and the second is on expenditure (at market prices, this includes taxes).
• Economic activity-based method (at factor cost): This measures GDP based on the cost of production, excluding taxes but including subsidies.
• Expenditure-based method (at market prices): This calculates GDP based on total spending in the economy, including taxes but excluding subsidies.

Sectors using factor cost method 

• The factor cost method is calculated by collecting data for each sector during a particular time-period. Due to the lack of reliable data for the other two methods, GDP is primarily measured using the factor cost method across the following sectors:
• 1. Agriculture, forestry, and fishing
• 2. Mining and quarrying
• 3. Manufacturing
• 4. Electricity, gas, water supply, and other utility services
• 5. Construction
• 6. Trade, hotels, transport, communication, and broadcasting
• 7. Financial, real estate, and professional services
• 8. Public administration, defense, and other services.

Sectors using expenditure method

• The expenditure method involves summing the domestic expenditure on final goods and services across various streams during a particular time-period. It includes consideration of expenses towards household consumption, net investments (capital formation), government costs, and net trade (exports minus imports).

Limitations of GDP

• The GDP figures derived from the two methods may not match precisely due to differences in the database and methods of data collection. This difference is termed statistical discrepancy. 
• The expenditure approach offers good insights into the most important contributors to India’s GDP. For example, domestic household consumption forms 60.34% of the economy’s GDP, which is why India remains unaffected to a good extent by economic slowdowns in other parts of the world.
• In comparison, an economy with a high concentration on exports will be more susceptible to the effects of global recessions.
• The largest contributor to India’s GDP is the services sector, which accounts for 61.5% of GDP. The next largest contributor is the industrial sector at 23%, followed by the agricultural sector at 15.4%.
• GDP is a statistical indicator that defines the economic progress and development of a country. The percentage growth in GDP during a quarter is considered the standard measure of economic growth. However, there are limitations of GDP as a measure of economic growth, which are: 
• It excludes non-market transactions. It doesn’t account for the standard of living (Per capita income is a better measure of that)
• It doesn’t account for externalities 
•  It doesn’t account for income inequalities or the distribution of income
• Therefore, while GDP growth is an important metric, it should be analysed alongside other welfare indicators for a more comprehensive assessment of economic development.

Why global sea ice cover has dipped to record low — what this means

• Sea ice refers to the free-floating ice in the polar regions. While it generally expands during the winter and melts in the summers, some sea ice remains year-round. Note that this is different from icebergs, glaciers, ice sheets, and ice shelves, which form on land.
• Global sea ice cover dipped to a new record low last week.
• Over the five-days leading up to February 13, the combined extent of Arctic and Antarctic sea ice dropped to 15.76 million sq km, down from the previous five-day record low of 15.93 million sq km in January-February 2023, according to BBC analysis of data from the US National Snow and Ice Data Center (NSIDC).
• Sea ice refers to the free-floating ice in the polar regions. While it generally expands during the winter and melts in the summers, some sea ice remains year-round. Note that this is different from icebergs, glaciers, ice sheets, and ice shelves, which form on land.
• Sea ice plays a crucial role in cooling the planet by trapping existing heat in the ocean, and thus precluding it from warming the air above. Therefore, a reduction in sea ice cover can have disastrous consequences for Earth.

The dip

• Currently, Arctic sea ice is at its lowest recorded extent for the time of year. Meanwhile, Antarctic sea ice is close to a new low, based on satellite records going back to the late 1970s.
• But given historical trends, this is not all that surprising. Since the late 1970s, NSIDC has estimated that some 77,800 sq km of sea ice has been lost per year.
• Between 1981 and 2010, Arctic sea ice extent in September — when it reaches its minimum extent — shrunk at a rate of 12.2% per decade, according to the National Aeronautics and Space Administration (NASA).
• In the Antarctic, the situation is a bit different. Until 2015, the region actually witnessed a slight year-on-year increase in sea ice. Between late 2014 and 2017, however, the Antarctic lost two million square km of sea ice — an area equivalent to roughly four times the size of Spain, according to the Copernicus Marine Service. Sea ice levels again increased in 2018.
• In 2023, maximum Antarctic sea ice reached historically low levels. Sea ice cover was more than two million sq km lower than usual —  an area about 10 times the size of the UK.
• Last year, the cover was higher than in 2023 but still 1.55 million sq km below the average maximum extent from 1981-2010.

Behind the dip

• Experts suggest that the 2025 low could be due to a combination of warm air, warm seas and winds breaking apart the ice..
• Antarctic sea ice is particularly vulnerable to ice-breaking winds. Unlike Arctic ice, it is surrounded by the ocean instead of continents and is thus more mobile, and also comparatively thinner. The situation has been made worse this year due to warmer air and warmer waters towards the end of the southern hemisphere summer (December to February).
• Higher air temperatures led to the melting of the edges of the Antarctic ice sheet — also known as ice shelves — which extend over the ocean. “[The] ongoing ocean warming is setting the backdrop to all of this,”.
• In the Arctic, where winter lasts from November to February, sea ice remained low because of a delayed freezing around the Hudson Bay, a large saltwater body in northeastern Canada. The delay occurred as unusually warm oceans took a longer time to cool down.
• The region also witnessed some storms which broke apart ice around the Barents Sea, located off the northern coasts of Norway and Russia, and the Bering Sea, the stretch between Alaska and Russia. Experts say that Arctic ice has become thinner and more fragile over the years, and hence more susceptible to breaking by storms.
• Higher than usual air temperatures in areas such as Svalbard, Norway, resulted in further loss of sea ice.

What dip means

• Less sea ice cover means that more water is getting exposed to the Sun and more heat (solar radiation) is getting absorbed, leading to a further rise in temperatures.
• Notably, sea ice keeps temperatures down in the polar regions, as its bright, white surface reflects more sunlight back to space than liquid water. The loss of sea ice cover could be one of the reasons why the polar regions are getting warmer at a faster rate than the rest of the world.
• Studies have found that melting sea ice is also slowing down the flow of water through the world’s oceans. This is happening because freshwater from melting ice enters the ocean, and reduces the salinity and density of the surface water, thereby diminishing that downward flow to the sea’s bottom. A slowdown of ocean overturning can severely impact the global climate, the marine food chain, and the stability of ice shelves.

What is deposit insurance, and how will raising it help you?

• The government is considering increasing the insurance cover for bank deposits from the current limit of Rs 5 lakh, Financial Services Secretary M Nagaraju said on Monday (February 17).
• The deposit insurance cover is offered by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a specialised division of the Reserve Bank of India (RBI).

What has the government said on deposit insurance?

• Asked what the government was doing in the matter of the New India Co-operative Bank against which the RBI took action last week, Nagaraju said that a proposal on “increasing (deposit) insurance” was “under active consideration”, and “as and when the government approves, we will notify it”.

What actions has RBI taken in the New India Co-operative Bank case?

• RBI has imposed several restrictions on the Mumbai-based bank, including superseding its Board of Directors for 12 months, citing supervisory concerns and “poor governance standards”.
• The RBI directed the loss-making bank to not grant or renew any loans and advances; make any investment; incur any liability including borrowing funds and accepting fresh deposits; or disburse or agree to disburse any payment without prior written approval. The restrictions came into effect after the close of business on February 13, and will be in force for six months.
• New India Co-operative Bank has 30 branches in Mumbai, Thane, Navi Mumbai, and Pune, and in Surat in Gujarat.
• At the end of March 2024, the bank had a deposit base of Rs 2,436 crore, and it had posted losses of Rs 22.78 crore in 2023-24 and Rs 30.74 crore in 2022-23.

How are the deposits of customers insured against failure of the bank?

• The objective of the DICGC is to protect “small depositors” from the risk of losing their savings in case of a bank failure. The insurance cover of Rs 5 lakh per depositor is for all accounts held by the depositor in all branches of the insured bank.
• DICGC insures all commercial banks, including branches of foreign banks functioning in India, local area banks, regional rural banks, and cooperative banks. However, primary co-operative societies are not insured by the DICGC.
• Savings, fixed, current, and recurring deposits are insured. The DICGC does not provide insurance for deposits by foreign, central, and state governments, and for inter-bank deposits.
• The premium for deposit insurance is borne by the insured bank. DICGC collects premiums from member financial institutions at a flat or differentiated rate based on the bank’s risk profile.

How can depositors of New India Co-operative Bank apply for the DICGC insurance?

• DICGC has said it will make payments to eligible depositors of the bank as per Section 18A of the DICGC Act, 1961, subject to the submission of a claim list by the bank within the statutory timeline of 45 days
• Depositors have been asked to submit deposit insurance claims to the bank, along with an official proof of identity, a “willingness declaration” to receive the amount lying in their accounts up to a limit of Rs 5 lakh, and details of a second account where this amount can be credited. The money can also be credited to their Aadhaar-linked bank account.
• The last date for submission of a claim or willingness declaration to New India Co-operative Bank is March 30. DICGC will make the payment to all eligible depositors by May 14.

How does the limit for DICGC’s insurance coverage work?

• In 2021, a new Section 18A was inserted in the DICGC Act, 1961, which enabled depositors to get interim payment and time-bound access to their deposits to the extent of the deposit insurance cover through interim payments by DICGC, in case of imposition of restrictions on banks by the RBI.
• At present, the DICGC offers insurance cover on bank deposits up to Rs 5 lakh within 90 days of imposition of such restrictions. Since the DICGC insures both the principal and interest amount held by a depositor in a bank, this is how the cover works:

What is the case for revising the deposit insurance upwards?

• RBI Deputy Governor M Rajeshwar Rao had noted last year that as of March 31, 2024, fully protected accounts were 97.8% of the total, higher than the international benchmark of 80%.
• However, challenges were likely going forward, Rao cautioned, given that a growing and formalising economy can be expected to see a sharp increase in both primary and secondary bank deposits.
• “Considering multiple factors like growth in the value of bank deposits, economic growth rate, inflation, increase in income levels etc., a periodical upward revision of this limit may be warranted,” he said.
• An increase in cover will not only protect to a greater extent the interest of depositors in case of a bank failure such as that of New India Co-operative Bank, it will likely also strengthen their trust and confidence in the banking system.

What is the Aravali safari park project? | Explained

What is the project?

• As per the tender invited by the Haryana Tourism Department, the proposed Aravali safari park will have animal cages, guest houses, hotels, restaurants, auditoriums, an animal hospital, childrens’ parks, botanical gardens, aquariums, cable cars, a tunnel walk with exhibits, an open-air theatre and eateries.
• The project has now been transferred to the forest department and an expert committee has been set up to oversee it. Of the total 3,858 hectares proposed in the tender, 2,574 will be spread across 11 villages in Gurugram and the remaining 1,284 in Nuh, across its seven villages.

Why is there opposition?

• The hills in the southern districts of Gurugram and Nuh are a part of Aravali, the oldest fold mountain range in the world. It runs diagonally across Rajasthan extending from Champaner in Gujarat in the southwest to near Delhi in the northeast for about 690 km.
• It is ecologically significant as it combats desertification by checking the spread of the Thar Desert towards eastern Rajasthan, and performs the role of an aquifer with its highly fractured and weathered quality rocks allowing water to percolate and recharge the groundwater. It is also a rich habitat to a wide spectrum of wildlife and plant species.
• A group of 37 retired Indian Forest Service officers have written a letter to Prime Minister Narendra Modi seeking to scrap the project arguing that the project’s aim is to simply increase tourist footfall and not conserve the mountain range. The “primary purpose of any intervention in an eco-sensitive area should be ‘conservation and restoration’ and not destruction”, the letter said. The increased footfall, vehicular traffic and construction will disturb aquifers under the Aravali hills which are critical reserves for the water-starved districts of Gurugram and Nuh (the groundwater level in the two districts has been categorised as “over-exploited” by the Central Ground Water Board).
•  Additionally, the location of the project falls under the category of “forest”, which is protected under the Forest Conservation Act, 1980. Besides, Haryana has very low forest cover of 3.6%, and therefore, the State needs rewilding of natural forests and not destructive safari projects, the letter said.

What are the laws protecting Aravali?

• Of the approximately 80,000 hectare Aravali hill area in Haryana, a majority is protected under various laws and by orders of the Supreme Court and NGT. “The most widespread protection to the Aravalis comes from the Punjab Land Preservation Act (PLPA), 1900. The Special Sections 4 and 5 of the Act restrict the breaking of land and hence deforestation in hills for non-agricultural use..
• ..Recently around 24,000 hectares has been notified as Protected Forest under the Indian Forest Act, as a proposed offset to forest land diversion in the Nicobar islands....
•  Similarly, the T.N. Godavarman Thirumulpad judgment (1996) extends legal protection to forests as per dictionary meaning — which should cover the remaining Aravali areas that are not notified as forest.....the Regional Plan-2021 for the National Capital Region also offers crucial protection, designating the Aravalis and forest areas as ‘Natural Conservation Zone’ and restricting the maximum construction limit to 0.5%,” .

What is the Aravali Safari Park Project?

• The Aravali Safari Park is proposed to cover a vast area of 3,858 hectares, spread across the southern districts of Gurugram and Nuh in Haryana. The park will include various facilities such as:
• Animal enclosures and safaris
• Guest houses, hotels, restaurants, and cafeterias
• Auditoriums, open-air theatres, and children’s parks
• Botanical gardens, aquariums, and cable cars
• An animal hospital, and a tunnel walk with exhibits
• Of the total proposed area, 2,574 hectares are planned for development in 11 villages in Gurugram, and the remaining 1,284 hectares will cover seven villages in Nuh.
• While the government presents the project as a major tourism boost, the scale of the park and its location have sparked widespread concern.

Ecological Significance of the Aravalis:

• The Aravalis are one of the oldest fold mountain ranges in the world, stretching across Rajasthan, Haryana, and parts of Delhi. This range is ecologically vital for several reasons:
• Combats Desertification: The Aravalis act as a natural barrier, preventing the spread of the Thar Desert toward the eastern regions of Rajasthan and Haryana.
• Water Recharge: The hills are a significant aquifer, recharging groundwater resources. The fractured and weathered rocks in the region allow rainwater to percolate and replenish water tables, which are crucial for the water-scarce districts of Gurugram and Nuh.
• Biodiversity Hotspot: The Aravali range is home to a diverse range of wildlife and plant species. These ecosystems are considered fragile, requiring protection from overdevelopment.

Environmental Concerns:

• Disturbance to Aquifers and Water Resources: The proposed safari park would increase footfall, vehicular traffic, and construction activity in the region. This could disrupt the delicate aquifer system under the Aravali hills, which are crucial for maintaining groundwater levels in the area.
• Impact on Forests and Biodiversity: The project is located in a region designated as “forest” land, which is protected under various environmental laws. These include the Forest Conservation Act of 1980 and the Punjab Land Preservation Act of 1900, which restrict non-agricultural use of the land to prevent deforestation. Additionally, the Aravalis play a critical role in maintaining the region’s biodiversity, and any large-scale development could lead to habitat destruction.
• Legal Protections for the Aravalis: Aravalis are designated as a Natural Conservation Zone under the Regional Plan-2021 for the National Capital Region (NCR), which limits construction activities in these areas to only 0.5%.
• Haryana’s Low Forest Cover: Haryana is one of the states with the lowest forest cover in India, at just 3.6%.

What is space docking technology, which will be used in India''s Gaganyaan mission

• Space docking refers to the process of connecting two spacecraft in orbit. The technology is expected to give a major boost to India''s space programme
• India''s ambitious Gaganyaan mission, aimed at sending Indian astronauts into space, is poised to leverage space docking technology, marking a significant leap in the country''s space exploration capabilities.
• The technology is expected to be extensively used during the Gaganyaan mission. Space docking, which is the intricate process of connecting two spacecraft in orbit, offers numerous advantages over conventional approaches, making it a crucial component for the success of the Gaganyaan mission and future space endeavours.
• This technology is not just about joining two pieces of metal in the vastness of space, it is about opening up a new era of possibilities for India''s space programme.

How does this technology score over conventional methods?

• Space docking technology provides several benefits over traditional methods of launching and operating spacecraft. Imagine trying to build a complex structure like a house by launching all the materials at once in a single rocket. That''s essentially what conventional methods entail for building structures in space. Space docking offers a more elegant solution.
• “Think of it like building with LEGO blocks in space. Space docking allows for modular assembly, where individual components of a larger structure, such as a space station or a lunar base, are launched separately and then connected in orbit.
• This approach offers significant advantages in terms of cost and logistical efficiency. Instead of requiring a single, massive launch vehicle capable of carrying the entire structure, smaller, more manageable rockets can be used to transport individual modules.
•  This reduces the risk and complexity associated with launching large payloads and allows for greater flexibility in mission design.
• Furthermore, space docking enables efficient resupply missions, where essential resources like fuel, food, water, and equipment can be delivered to orbiting spacecraft, extending their operational life and supporting long-duration missions,
• Space docking significantly enhances mission safety by providing a critical backup option in case of emergencies. “If a problem arises with the primary spacecraft, astronauts can transfer to a docked module or vehicle for a safe return to Earth. This capability is particularly crucial for long-duration missions, where the ability to evacuate crew members quickly can be life-saving.
• Moreover, space docking allows for greater operational flexibility. For instance, a crew could dock with a specialised module equipped for scientific experiments or repair work, expanding the scope of their mission without requiring the entire spacecraft to be designed for those specific tasks.
• Space docking allows for in-space servicing and upgrades. A service module can dock with an orbiting spacecraft to refuel it, replace worn-out components, or install new instruments and technology. This capability can significantly prolong the operational life of valuable space assets, reducing the need for frequent and costly replacements.
• Space docking technology fosters international collaboration by enabling spacecraft from different countries to connect and work together. This opens up exciting possibilities for joint missions, shared resources, and the exchange of knowledge and expertise.
•  For example, an Indian spacecraft could dock with the International Space Station (ISS), allowing Indian astronauts to participate in research and activities on the ISS. Such collaborations not only accelerate the pace of scientific discovery and technological advancement, but also strengthen diplomatic ties and promote global cooperation in space exploration.
• A prime example of India''s progress in space docking technology is the recent demonstration of the Space Docking Experiment (SPADEX).
• The Indian Space Research Organisation (ISRO) successfully tested the autonomous docking capabilities of two spacecraft in orbit, showcasing the precision and sophistication of its technology.
• This successful experiment is a crucial step towards realizing the goals of the Gaganyaan mission and paves the way for the development of India''s own space station, where modules will be assembled and docked in orbit.
•  The SPADEX mission involved deploying two small spacecraft, each weighing about 220 kilograms, into a 470-km circular orbit.
• It also demonstrated the transfer of electric power between the docked spacecraft, a capability vital for applications such as in-space robotics, composite spacecraft control, and payload operations following undocking.

Remission without application: What Supreme Court held, why

• The Supreme Court on Tuesday directed states with remission policies to consider the premature release of prisoners even if they don’t apply for remission beforehand. 
• In a landmark decision on the rights of prisoners, the Supreme Court on Tuesday directed states with remission policies to consider the premature release of prisoners even if they don’t apply for remission beforehand. With exceptions for certain kinds of convicts, states are empowered to release prisoners before the completion of their sentence under the Bharatiya Nyaya Suraksha Sanhita, 2023 (BNSS) and the Code of Criminal Procedure, 1973 (CrPC).
• A bench of Justices Abhay S Oka and Ujjal Bhuyan delivered this judgment in the case of “In Re: Policy Strategy for Grant of Bail”. This is a suo motu case that the court itself instituted in 2021 to tackle issues related to overcrowding in prisons.
• This decision marks a significant shift in the SC’s approach to remission. In two separate decisions from 2013, the court held that states cannot remit sentences suo motu (of their own volition) and the prisoner must first make an application. Here, we explain the court’s logic behind this shift in attitude.

What is the law on remission?

• The power of remission refers to the power to reduce the period of a sentence for a person who has been found guilty of a crime. Section 473 of the BNSS (and Section 432 of the CrPC) grants state governments the power to remit sentences “at any time”. States can also choose whether to impose conditions that the convict must meet for her sentence to be remitted, such as agreeing to report to a police officer at regular intervals.
• If any of these conditions are not fulfilled, the provision states that the states may cancel the remission granted and arrest the convict again without a warrant. This is separate from the power of the President and the Governor to remit sentences under Articles 72 and 161 of the Constitution respectively.
• One of the restraints placed on the state government’s power of remission can be found under Section 475 of the BNSS (and Section 433A of the CrPC). For convicts serving a life sentence and have been found guilty of an offence punishable by death, the state cannot release them from prison until at least 14 years imprisonment have been served.
• The BNSS and the CrPC mention that the remission process starts “Whenever an application is made to the appropriate Government”. However, the SC has now ruled that this application is not strictly necessary now that most states have remission policies which prescribe eligibility conditions.

What did the SC rule?

• The court considered two past decisions on the subject of remission, Sangeet and Anr. v State of Haryana (2013) and Mohinder Singh v State of Punjab (2013). In Sangeet, the court held that the power of remission under Section 432 of the CrPC “cannot be suo motu” as it is “only an enabling provision”. This, the court explained, means that Section 432 only enables the government to “override” a judicial decision by remitting a sentence, which can be set into motion “only through an application for remission by the convict or on his behalf”. Similarly, the court in Mohinder Singh held that the court cannot exercise the power to grant remission suo motu.
• However, on feb 18, 2025 the court noted that prison manuals in several states require the prison superintendent to initiate proceedings for the grant of remission. Further, it stated that the court in Sangeet and Mohinder Singh “did not consider a scenario where a policy was framed by the appropriate Government for grant of premature release or grant of remission”.
• One of the reasons the court in Sangeet laid down the requirement for an application was that “It also eliminates “discretionary” or en masse release of convicts on “festive” occasions”.
• However, when there is a remission policy in place that provides eligibility criteria for remission, the court on Tuesday held that problems would arise if states did not exercise discretion and grant suo motu remission. It held that states have an obligation “to consider cases of every eligible convict under the (remission) policy”. Failing to do so, the court held, would be “discriminatory and arbitrary”, and would violate the right to equality under Article 14 of the Constitution of India.

Did the SC issue any other directions?

• To ensure that the verdict is effective across the country, the court also directed every state to create an “exhaustive” policy for remission within two months if one is not already in place. The court also issued guidelines to build upon the decision in Mafabhai Motibhai Sagar v. State of Gujarat (2024) where the SC held that any conditions for remission must be “reasonable”. It held that:
• Conditions must account for various factors including the motive of the crime, criminal background and public safety;
• Conditions must aim to ensure the criminal is rehabilitated and “the criminal tendencies,if any, of the convict remains in check”;
• Conditions cannot be so “oppressive and stringent” that the convict cannot take advantage of the remission;
• Conditions must not be vague and should be capable of being performed.
• In the Mafabhai case, the court also clarified that remission should not be canceled in every case where the conditions are breached, stating the facts of each case should be considered carefully and “A minor or a trifling breach cannot be a ground to cancel remission”. Relying on this holding, Justices Oka and Bhuyan held that a notice must be sent to the convict containing reasons for cancellation and the convict must be allowed to file a reply before the state decides to cancel the remission.

 Government classifies barytes, felspar, mica, quartz as major minerals

• The government  has changed the classification of barytes, felspar, mica and quartz into the category of major minerals.
• This move would pave the way for an increased exploration and scientific mining of such resources that are primary source of many critical minerals.
• Earlier, these were classified as minor minerals.
• “The Ministry of Mines vide gazette notification dated 20th February, 2025 has shifted minerals Barytes, Felspar, Mica and Quartz from the list of minor minerals to the category of major minerals”.
• The development came on the heels of the government’s National Critical Mineral Mission which seeks exploration and mining of critical minerals within the country including recovery of these minerals from various mines, overburden and tailings.
• Quartz, felspar and mica are found in pegmatite rocks, which are an important source of many critical minerals such as beryl, lithium, niobium, tantalum, molybdenum, tin, titanium and tungsten among others.
• These minerals have important role in various new technologies, in energy transition, spacecraft industries, and healthcare sector, among others.
• When the leases of quartz, felspar and mica mines are granted as minor mineral leases, the lease holders do not declare existence of critical minerals or extract the critical minerals associated with it such as lithium, beryl, etc as their primary objective is to use these minerals as minor minerals for construction, glass/ceramic making, etc.
• Consequently, the critical minerals associated with these minerals are neither getting extracted nor reported, the mines ministry said.
• Similarly, baryte has various industrial applications, including those for oil and gas drilling, electronics, television screens, rubber, glass, ceramics, paint, radiation shielding and medical applications. It is used to make high density concrete to block X-ray emissions in hospitals, power plants, and laboratories.
• Baryte often occurs as concretions and vein fillings in limestone and dolostone. It is found in association with ores of antimony, cobalt, copper, lead, manganese and silver.
• Baryte with iron ore occurs in pocket type of deposit which cannot be mined in isolation. While mining either of the minerals, the production of associated mineral is inevitable, the ministry said.
• Reclassification of these minerals will not adversely affect the lease period of the existing leases.
• As major minerals, the leases for these minerals will get extended to a period of 50 years from the date of grant or till the completion of renewal period, if any, whichever is later as per section 8A of the MMDR Act, 1957, it said.
• These mines will gradually register with the Indian Bureau of Mines and will be regulated as major minerals. A transition time of four months, that is, up to June 30 has been provided.
• The revenue from mines of these minerals will continue to accrue to the state government as earlier.
  
  

India advances carbon market reforms following COP 29

• India, already a leader in renewable energy, reinforced its commitment to climate action by proposing a unified carbon market
• The 29th Conference of the Parties (COP 29) under the United Nations Framework Convention on Climate Change (UNFCCC) concluded in Baku, Azerbaijan, on November 24, 2024. While key expectations regarding climate finance remained unmet, significant progress was achieved in carbon market regulations.
•  A landmark agreement on carbon trading rules was reached, aiming to accelerate climate action by enabling countries to meet their emission reduction goals efficiently and cost-effectively.
• Under its Nationally Determined Contributions (NDCs), the country initially aimed to reduce greenhouse gas (GHG) emission intensity by 33-35 per cent from 2005 levels by 2030, later revising this target to 45 per cent in 2022.
• India has launched multiple initiatives to combat climate change.
• On the supply side, renewable energy generation helps mitigate carbon footprints, while demand-side initiatives like Perform-Achieve-Trade (PAT), star labeling, energy conservation building codes, and improved lighting solutions further reinforce India’s climate commitments.
• Existing frameworks, including Renewable Energy Certificates (RECs) and Energy Saving Certificates (ESCerts), serve as a foundation. These were introduced under the National Action Plan on Climate Change (NAPCC) in 2008 and have been successfully traded on Indian power exchanges.
• RECs drive renewable energy adoption by allowing obligated entities to purchase either renewable energy or its certificates.
• One REC equates to 1 MWh of renewable energy generated from sources like solar, wind, hydro, and biogas. This system benefits both electricity generators and buyers, ensuring environmental compliance.
• Similarly, ESCerts promote energy efficiency by enabling designated energy-intensive industries to either enhance energy savings or buy corresponding certificates.
• One ESCert represents a reduction of 1 million tonnes of oil equivalent energy. Currently, 13 key industrial sectors, including aluminum, cement, power distribution, and railways, participate in this program, covering nearly 50 per cent of India’s primary energy consumption.
•  Since their inception, RECs and ESCerts have driven significant emissions reductions, saving over 73 million tonnes of CO2 through REC trading and preventing 106 million tonnes of CO2 emissions via ESCerts. Recognising the need for a unified carbon market, India proposed a comprehensive system merging RECs and ESCerts into a single, internationally aligned framework.
•  The regulatory foundation was set with the amendment of the Energy Conservation Act in January 2023, followed by the notification of the Carbon Credit Trading Scheme, 2023.
• The scheme designates the Central Electricity Regulatory Commission as the market regulator and power exchanges as trading platforms, while the Bureau of Energy Efficiency oversees compliance mechanisms.
• India’s carbon market will consist of two segments: a compliance market and an offset market.
•  The compliance market will impose emission caps on obligated entities, allowing overachievers to sell surplus carbon credits to underachievers. The offset market will enable voluntary participation by non-obligated entities aiming to reduce their carbon footprints.
• Carbon credit certificates will be traded through a regulated bidding process. The transition from existing REC and ESCert markets to a unified carbon trading system is expected to be seamless, given India’s well-established power exchanges and transaction mechanisms.
•  With this development, India moves closer to integrating its climate action efforts into global carbon markets, reinforcing its commitment to reducing emissions and achieving long-term sustainability goals..