August 13 – PM IAS UPSC Current Affairs

1. The Supreme Court’s Stance on the ‘Creamy Layer’ for SC/ST Reservations

Syllabus: GS Paper II – Welfare schemes for vulnerable sections; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.

Context: The Supreme Court of India has issued a notice to the Central Government regarding a Public Interest Litigation (PIL) that advocates for the application of a ‘creamy layer’ concept within the reservation framework for Scheduled Castes and Scheduled Tribes (SC/ST). This move is a response to a petition arguing that reservation benefits are disproportionately being cornered by a privileged few within these communities, leaving the most marginalized behind.

Detailed Analysis:

  • Constitutional and Legal Background: The debate over the ‘creamy layer’ is rooted in the landmark Indra Sawhney v. Union of India (1992) case.
    • This judgment, while upholding reservations for Other Backward Classes (OBCs), mandated the exclusion of the ‘creamy layer’ to ensure equitable distribution of benefits.
    • However, the court deliberately did not extend this principle to SC/STs, acknowledging their unique history of untouchability and systemic oppression.
    • Subsequent rulings, such as the M. Nagaraj v. Union of India (2006) case, applied the creamy layer principle to SC/STs in promotions, but this was later partially overturned by the Jarnail Singh v. Lachhmi Narain Gupta (2018) verdict.
    • The current plea directly challenges this historical exemption, arguing that the social and economic empowerment of certain SC/ST groups makes them no longer deserving of the same benefits as the genuinely backward.
  • Arguments for Applying the ‘Creamy Layer’:
    • Equitable Distribution: Proponents argue that the primary objective of reservation is to uplift the most backward. By excluding the affluent, the policy can become more targeted and effective.
    • Preventing Monopolization: The current system, critics say, has led to a situation where a small, elite group within the SC/ST communities monopolizes educational and employment opportunities, creating an internal disparity.
    • Constitutional Mandate of Equality: The plea contends that continuing to grant reservations to the economically and socially well-off violates the spirit of equality, as it gives them an unfair advantage over non-reserved candidates from similar economic backgrounds.
    • Enhanced Social Justice: A creamy layer would help in better targeting, thus fulfilling the constitutional objective of social justice for the most needy within the communities. It would prevent reservation from becoming a tool for entrenching a new elite.
  • Arguments Against Applying the ‘Creamy Layer’:
    • Historical Oppression: Opponents of the move argue that the social stigma and historical oppression faced by SC/STs cannot be erased simply by economic upliftment. They believe that even affluent individuals from these communities face discrimination.
    • Homogeneity of the Group: The argument is that SC/STs are not a caste but a class that has faced systemic discrimination, and any sub-classification would dilute their collective identity and political power.
    • Administrative and Political Challenges: Defining a ‘creamy layer’ for SC/STs would be an immense administrative challenge, potentially leading to bureaucratic hurdles and political manipulation. It could also lead to a deep political backlash and social unrest.
    • Fear of Dilution: Many fear that this is the first step towards a complete dilution of reservation policies and a rollback of decades of social justice measures.
  • Political and Social Implications: This issue is a political minefield, with any Supreme Court judgment on the matter likely to become a major electoral issue. It also brings to light the evolving nature of affirmative action, moving from a blanket policy to one that demands greater efficiency and targeting. The debate reflects a growing demand for a more nuanced approach to social justice that acknowledges both historical injustice and contemporary economic realities.

Conclusion:

  • The Supreme Court’s decision to re-examine the ‘creamy layer’ for SC/STs is a critical step in the evolution of India’s social justice policies.
  • The court’s final ruling will need to strike a delicate balance between a historical commitment to redressal for marginalized communities and the contemporary imperative of ensuring that these benefits reach the most deserving.
  • The outcome will have a lasting impact on how India defines and implements affirmative action for its most vulnerable populations.

Mains Question: Critically analyze the potential legal and socio-political implications of applying the ‘creamy layer’ concept to reservations for Scheduled Castes and Scheduled Tribes (SC/ST). Discuss the constitutional validity of such a move and the challenges involved in its implementation. (250 words)


2. India’s Strategic Push for a Semiconductor Manufacturing Ecosystem

Syllabus: GS Paper III – Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Science and Technology-developments and their applications and effects in everyday life.

Context: The Union Cabinet, on August 13, 2025, approved the establishment of four new semiconductor manufacturing units in various states. This is a major step under the India Semiconductor Mission (ISM), a program designed to make India a global hub for semiconductor design and manufacturing, and to reduce the country’s reliance on foreign supply chains.

Detailed Analysis:

  • Economic and Geopolitical Significance:
    • Strategic Autonomy: The semiconductor industry is vital for national security, defense, and technology. A domestic ecosystem reduces India’s dependency on foreign suppliers and protects it from geopolitical supply chain shocks.
    • Atmanirbhar Bharat: The initiative is a cornerstone of the ‘Atmanirbhar Bharat’ (Self-Reliant India) program, aiming to build a resilient domestic manufacturing base.
    • Economic Multiplier Effect: The massive investment in this sector will create a multiplier effect, stimulating growth in ancillary industries and services, and fostering a high-tech ecosystem.
    • Job Creation: It is expected to create thousands of high-skilled jobs in engineering, R&D, and manufacturing, providing a boost to India’s burgeoning talent pool.
  • Key Policy and Investment Highlights:
    • Four New Projects: The cabinet approved four projects with a total investment of over ₹4,594 crore in states including Odisha, Andhra Pradesh, and Punjab.
    • Global Partnerships: The projects involve partnerships with major global players. One unit is backed by US chipmaker Intel and defense company Lockheed Martin, signifying global confidence in India’s initiative.
    • Comprehensive Value Chain: The projects focus on a full ecosystem, including fabrication (fab), and Assembly, Testing, Marking, and Packaging (ATMP) units, ensuring that India builds a complete value chain from design to production.
    • Financial Incentives: The India Semiconductor Mission offers significant financial support, including up to 50% of the project cost, to attract major investments. This policy, with an initial outlay of ₹76,000 crore, is designed to overcome the high capital costs associated with setting up a semiconductor industry.
  • Challenges and the Way Forward:
    • Technological Gap: India needs to bridge a significant technological gap with global leaders like Taiwan and South Korea. This requires attracting cutting-edge technology and expertise.
    • Skilled Workforce: While India has a strong base in chip design, it needs to rapidly scale up its talent pool in complex manufacturing and fabrication processes. Massive investments in technical education and training programs are essential.
    • Capital-Intensive Nature: The semiconductor industry is highly capital-intensive, requiring sustained and long-term public and private investment.
    • Strategic Partnerships: The government must continue to forge strong strategic partnerships with countries and companies with established semiconductor ecosystems to gain access to technology, expertise, and global markets.

Conclusion:

  • The approval of new semiconductor units is a bold and necessary step for India to secure its technological and economic future.
  • This initiative is a testament to the country’s strategic vision and its commitment to becoming a self-reliant leader in the global technology sector.
  • A well-executed strategy, focusing on investment, skill development, and global collaboration, can transform this vision into a reality, making India a key player in the global technology landscape.

Mains Question: Discuss the strategic and economic significance of the Indian government’s push to create a domestic semiconductor manufacturing ecosystem. What are the key challenges and opportunities, and how can India leverage its strengths to become a global leader in this critical sector? (250 words)


3. Speaker Initiates Process to Remove High Court Judge

Syllabus: GS Paper II – Structure, organization and functioning of the Judiciary; Parliament and State Legislatures.

Context: The Lok Sabha Speaker has initiated the process for the removal of a High Court judge. This is a rare constitutional action following an impeachment notice signed by 146 Members of Parliament, raising serious concerns about judicial integrity. The move comes after a prolonged period of public and legal scrutiny regarding the judge’s conduct.

Detailed Analysis:

  • Constitutional and Legal Basis:
    • Article 124(4) and 217: These articles of the Constitution outline the procedure for the removal of a Supreme Court or High Court judge. The grounds for removal are ‘proved misbehaviour or incapacity’.
    • The Judges (Inquiry) Act, 1968: This act governs the process. The Speaker, upon receiving a signed notice from a certain number of MPs, forms a three-member inquiry committee to investigate the allegations.
    • Inquiry Committee Composition: The committee typically comprises a Supreme Court judge, a Chief Justice of a High Court, and an eminent jurist. Its role is to determine the validity of the charges.
    • Parliamentary Vote: If the committee finds the judge guilty, the removal motion must then be passed by both houses of Parliament with a special majority—a majority of the total membership and a majority of not less than two-thirds of the members present and voting.
  • Judicial Independence vs. Accountability:
    • Safeguard for Independence: The process is designed to be deliberately difficult to protect the judiciary’s independence from political interference. It ensures that a judge cannot be removed on frivolous grounds.
    • Mechanism for Accountability: However, the process also serves as a crucial check and balance against judicial misconduct, reinforcing that no constitutional functionary is above the law. This is vital for maintaining the judiciary’s credibility and public trust.
    • Precedents: While several impeachment motions have been initiated in the past, none have resulted in the final removal of a judge by Parliament. The most famous case was that of Justice V. Ramaswami in 1993, where the motion failed in the Lok Sabha.
  • Significance of the Current Move:
    • Robustness of Institutions: The Speaker’s action, after receiving a multi-party notice, demonstrates the strength and functioning of India’s democratic institutions. It shows that the mechanism for judicial accountability is alive and can be invoked when needed.
    • Restoring Public Trust: A thorough and transparent inquiry, irrespective of the final outcome, can help restore public trust in the judiciary by signaling that allegations of misconduct against judges are taken seriously.
    • Broader Implications: This event could also lead to a renewed debate on judicial reforms, including the need for a more transparent and expedited process for handling complaints against judges and the role of the ‘in-house procedure’ of the judiciary itself.

Conclusion:

  • The initiation of the removal process for a High Court judge is a testament to the robustness of India’s democratic institutions and its constitutional checks and balances.
  • This move reinforces the principle that judicial independence and judicial accountability are two sides of the same coin, both essential for a healthy and functioning democracy.
  • The outcome of this process will be keenly watched, as it could set an important precedent for judicial oversight in the future.

Mains Question: Critically analyze the constitutional process for removing a High Court judge in India. Discuss the safeguards in place to ensure judicial independence and how the recent initiation of the removal process impacts the judiciary’s credibility. (250 words)


4. Retail Inflation Hits 8-Year Low

Syllabus: GS Paper III – Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Inflation.

Context: Retail inflation, as measured by the Consumer Price Index (CPI), has dropped to an 8-year low of 1.55%. This significant decline is primarily driven by a fall in food prices and is well within the Reserve Bank of India’s (RBI) comfort zone.

Detailed Analysis:

  • Key Factors Contributing to the Decline:
    • Softening of Food Prices: A major factor has been a good monsoon season, leading to a bumper harvest and a decline in the prices of vegetables, cereals, and pulses.
    • Stable Global Commodity Prices: Subdued global crude oil prices have kept non-food inflation in check. This has helped contain the cost of transport and manufacturing.
    • Effective Supply Chain Management: Government policies and improved logistics have played a role in ensuring a steady supply of essential goods, preventing price spikes.
    • Monetary Policy: Past actions by the Reserve Bank of India, including a series of repo rate hikes, have helped anchor inflation expectations and cool down demand-side pressures.
  • Implications for the Economy:
    • Monetary Policy Flexibility: A low inflation rate gives the RBI greater room to maneuver. It could lead to a potential cut in the repo rate, making credit cheaper for businesses and consumers.
    • Stimulating Economic Growth: Lower interest rates can encourage investment and boost consumer spending, providing a stimulus to the economy.
    • Increased Purchasing Power: Lower prices, particularly for essential food items, directly increase the purchasing power of households, especially those in the lower-income segments. This can lead to a rise in demand and overall economic activity.
    • Investor Confidence: A stable and low-inflation environment builds confidence among both domestic and foreign investors, who are more likely to invest in an economy with predictable price stability.
  • Challenges and Outlook:
    • Transitory Factors: The sharp fall in inflation is partly due to temporary factors like a good monsoon. A poor harvest or a rise in global oil prices could quickly reverse the trend.
    • Core Inflation: While headline inflation has dropped, core inflation (excluding food and fuel) needs to be monitored closely. Any stickiness in core inflation could limit the RBI’s ability to cut rates.
    • Uneven Impact: The benefits of low inflation may not be evenly distributed. For farmers, a sharp decline in crop prices can reduce their income, leading to a different set of economic challenges.
    • Global Headwinds: Geopolitical uncertainties and the potential for a global economic slowdown pose risks to India’s inflation trajectory. The RBI will need to remain vigilant.

Conclusion:

  • The drop in retail inflation is a positive development for the Indian economy, offering a much-needed breather to policymakers and consumers.
  • It provides a window of opportunity for the RBI to potentially ease monetary policy and support economic growth.
  • However, the government and the central bank must remain cautious and monitor both domestic and global factors to ensure that the gains in price stability are sustainable.

Mains Question: Discuss the factors responsible for the recent decline in retail inflation in India. What are the potential implications of this low inflation for the country’s economic growth and monetary policy? (250 words)

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