Editorial 1 : The State Strikes Back
Context: When dreams of Viksit Bharat stumble over Nehruvian impulses
Introduction: India’s GDP grew at 5.4% in the second quarter of 2024-25 against the prediction of 7%. India’s long-term target is to achieve Viksit Bharat by 2047.
Growth Drivers and Challenges
- Monetary Policy: Tight monetary policy over the last two years slowed economic growth beyond projections.
- High Taxation
- India’s tax to GDP ratio: 19% (higher than East Asia's average of 17%).
- High taxes and inefficient tariffs reduce competitiveness and stifle economic momentum.
- Declining Foreign Investment
- Withdrawal from Bilateral Investment Treaties (BITs) reduces investor confidence.
- Lack of enforceable contracts and predictability in judicial actions deters FDI.
- Retrospective Taxation and Regulatory Challenges
- Retrospective Tax Changes continues to create uncertainty for investors (e.g., removal of indexation benefits).
- Policy Uncertainty: Frequent policy reversals and command-control tendencies hinder ease of doing business.
Nehruvian Socialism: Then and Now
- The sooner we get rid of the remaining shackles of Nehruvian socialism that continue to influence statist impulses within the government, the sooner we can avoid making policy errors that dampen our growth prospects.
- There is a deep divide between the PM Modi’s vision of limiting the role of the state and the bureaucracy and the reality of Nehruvian impulses in recent policies.
Recommendations
- Monetary Policy Adjustments: Reconsider real interest rates to stimulate growth.
- FDI-Friendly Reforms: Reinstate BITs and improve contract enforceability to attract foreign investors.
- Taxation Overhaul: Rationalise tax policies to align with global competitors and boost competitiveness.
- Policy Consistency: Minimize retrospective tax changes and adopt investor-friendly legislative measures.
- Streamlined Governance: Reduce bureaucratic control and implement reforms aligned with a market-driven economy.
Way Forward and Conclusion
- India’s growth challenge is partly driven by the large divergence between its per-capita income levels and the aggregate size of its economy.
- The expectation is that institutions and policy making will lead our economy on the road to becoming Viksit Bharat.
- India aspires to be a developed economy and should begin to act on the ambition without being content with policies and standards of an economy with a sub $3,000 per-capita income.
Editorial 2 : One Down, More to Go
Context: A list of laws that need to be repealed
Introduction: Some laws should be considered by the Union government and repealed to ensure justice, equality, liberty for all citizens.
Anti-Conversion Laws
- Violates Fundamental Rights: These laws undermine the fundamental rights of freedom of religion and privacy guaranteed by the Constitution under Article 25 and Article 21, respectively.
- By requiring prior notice or state approval for conversions, these laws impose paternalistic restrictions, often leading to harassment, communal tensions, and violation of individual autonomy.
- They disproportionately target interfaith marriages and perpetuate discriminatory stereotypes like love jihad.
- These laws promote a surveillance-like state over a deeply personal choice, which is antithetical to the secular and democratic ethos of our great nation.
Police Custody in Bharatiya Nagarik Suraksha Sanhita
- Under the previous framework, police custody was limited to 15 days within the initial period, irrespective of the overall custody period.
- This limitation is a crucial safeguard against the misuse of power and custodial abuse.
- The new provision effectively allows the 15-day custody period to be fragmented and spread across the entire remand period.
- This means an individual could be repeatedly subjected to police custody at intervals throughout 60 or 90 days, depending on the gravity of the offence.
- This can potentially lead to prolonged and intermittent custody, increasing the risk of custodial abuse, violation of individual rights, and undermining safeguards against arbitrary detention.
Unlawful Activities (Prevention) Act
- UAPA poses a grave threat to fundamental rights and democratic freedoms in India.
- Violates Fundamental Rights: By criminalising free speech and dissent, it undermines Articles 19 and 21 of the Constitution, which guarantees freedom of expression and the right to life and liberty.
- The law defines unlawful activity very vaguely which allows the government to designate individuals or organisations as terrorists without a fair trial.
- It erodes due process by allowing property seizures and detention without charge for up to 180 days.
- Misuse: The law’s misuse is amplified by its dismal conviction rate of only 2.8%.
- This violates the right to a fair trial under Article 22 and tarnishes India’s commitment to justice and equality.
Bombay Prevention of Begging Act, 1959
- The Bombay Prevention of Begging Act, 1959, treats begging as a crime, using vague definitions, as found in Section 2(1), to include asking for alms or performing on streets for money.
- By criminalising acts of survival, the Act violates basic rights like right to life (Article 21) and freedom of movement and expression (Article 19) while disproportionately harming the poor, violating the right to equality before the law (Article 14).
- It shifts focus away from the government’s responsibility to address poverty, ignoring why people are forced to beg.
Conclusion
These laws disproportionately harm marginalised communities, restrict personal freedoms, and violate constitutional safeguards.
It is time for Parliament to deliberate, critically reassess and repeal these laws to uphold democratic values and protect the rights of all citizens.