1. “Discuss the procedure of election of the Vice-President of India. Critically analyze his role and powers as the ex-officio Chairman of the Rajya Sabha.
| SYLLABUS: GS II General Studies: Parliament and State Legislatures—Structure, Functioning, Conduct of Business, Powers & Privileges and Issues Arising out of these |
IN NEWS: Vice President Election
The Vice-President of India, established under Article 63, is the second-highest constitutional authority. Unlike the President, the Vice-President’s role is largely legislative as the ex-officio Chairman of the Rajya Sabha, reflecting the unique blend of federalism and parliamentary democracy in India.
Election Procedure of Vice-President.
1. Constitutional Basis – Provided under Article 66 electoral College – Composed of both Houses of Parliament Lok Sabha + Rajya Sabha. Unlike President, state legislatures are excluded.
2. Voting Method – Indirect election through Proportional Representation by Single Transferable Vote and secret ballot.
3. Qualifications – Must be an Indian citizen, 35 years of age, and qualified to be a Rajya Sabha member.
4. Conduct of Election – Election Commission of India supervises, ensuring impartiality.
5. Difference from Presidential Election – President elected by Parliament + State legislatures, but Vice-President elected only by Parliament. Reflects limited federal role.
6. Term & Oath – Holds office for 5 years, oath administered by the President.
Role & Powers as Ex-Officio Chairman of Rajya Sabha
1. Presiding Officer – Conducts proceedings, decides admissibility of motions, bills, and resolutions.
2. Maintains Order & Decorum – Ensures discipline in the House.
3. Casting Vote – Can cast a vote in case of tie; otherwise does not vote.
4. Neutral Arbiter – Expected to function impartially, unlike political members.
5. Guardian of Rules – Interprets Rules of Procedure and decides on points of order.
6. Limitations – Unlike Speaker of Lok Sabha, cannot head a business advisory committee or participate in House committees.
7. Succession Role – Acts as President in case of vacancy until a new one is elected
The Vice-President’s election ensures democratic legitimacy through Parliament, while his role as Chairman of Rajya Sabha upholds parliamentary discipline and federal balance. Though limited in powers, the office plays a stabilizing role in India’s constitutional framework.
2. Foreign Direct Investment has been regarded as a catalyst for India’s economic growth, yet concerns remain about its sectoral impact and policy challenges. Discuss the opportunities and challenges of FDI in India in the context of recent reforms.
| SYLLABUS: GS III General Studies: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. |
IN NEWS: A complex turn in India’s FDI story
Since the 1991 economic reforms, Foreign Direct Investment (FDI) has emerged as a crucial driver of India’s industrial modernization, technology adoption, and integration with global value chains. Sectors such as IT, e-commerce, and digital services have been transformed through FDI. However, recent patterns of declining net inflows, rising disinvestment, and outward investments by Indian firms raise questions on FDI’s long-term developmental role.
Opportunities from FDI
1. Modernisation & Technology Transfer – Boosts sectors like IT, clean energy, defence manufacturing.
Example: Defence FDI cap raised to 74% under automatic route.
2. Employment Creation – FDI in startups and services has created new jobs.
3. Infrastructure Growth – Capital inflows into energy and logistics aid PM Gati Shakti Mission.
4. Export Competitiveness – Automobiles and pharma use India as a global manufacturing hub.
5. Green Transition – Growing FDI in solar, wind, and EV ecosystems aligns with climate goals.
6. Digital Transformation – Investments in e-commerce have reshaped retail.
7. Integration with Global Markets – Enhances India’s role in global supply chains, especially in Asia.
Challenges in FDI
1. Short-termism – Investors prioritise quick profits over long-term commitments → weakens the industrial base.
2. High Disinvestments – Disinvestments surged by 51% in 2023–24 and further in 2024–25, eroding stability.
3. Sectoral Imbalances – Services attract bulk of FDI, while manufacturing, infrastructure, and R&D lag behind.
4. Regulatory & Policy Uncertainty – Retrospective taxation (Vodafone case) and shifting rules discourage investors.
5. Outward FDI by Indian Firms – Driven by regulatory inefficiencies, infrastructure bottlenecks, and unpredictable policy → weakens domestic capital base.
6. Tax Arbitrage & Treaty Routing – Inflows from tax havens raise doubts about genuine investment intent.
7. Macroeconomic Implications – Declining net inflows limit India’s ability to manage BoP, currency stability, and external account flexibility.
Way Forward
1. Policy Stability & Regulatory Transparency – Ensure predictable frameworks to inspire investor confidence.
2. Shift Focus to Quality FDI – Attract investments in advanced manufacturing, clean energy, digital tech.
3. Address Structural Gaps – Reform land, labour, and infrastructure to create a conducive investment climate.
4. Balanced Regional Spread – Incentivise investments in Eastern & Northeastern India.
5. Retain Capital – Check disinvestments and profit repatriations by incentivising reinvestment in India.
6. Build Human Capital – Skill development to support high-value sectors. FDI remains vital for India’s growth, but headline inflow numbers conceal deeper vulnerabilities. The rising disinvestments, sectoral distortions, and outward Indian investments reflect an erosion of long-term investor confidence. India must focus not just on gross inflows, but on the durability, quality, and developmental alignment of FDI. By ensuring policy stability, institutional trust, and infrastructure support, India can transform itself from a short-term investment destination to a global hub for sustainable capital.