1. Restore Guardrails

(Source: Page 10, The Indian Express)

Topic: GS3: Environment – Environmental Impact Assessment, Sustainable Development GS2: Governance – Role of Judiciary, Policy Implementation

Context

The Supreme Court’s recent decision on post-facto environmental clearance in the Lafarge case re-emphasized that environmental clearances must not be granted retrospectively without thorough scrutiny. It cautioned against the growing trend of bypassing environmental assessments in the name of development.

Key Issue

• SC verdict revisits the issue of post-facto environmental clearance, specifically in the Lafarge India case and the Goa mining cases.

• Reminds the government and industry that environmental assessments are not optional and are central to sustainable development.

Judicial Reasoning

• The court emphasized that retrospective clearances violate the Environment Protection Act, 1986 and principle of sustainable development.

• Warned against undermining the Environmental Impact Assessment (EIA) process, as seen in the MoEF’s own policy revisions post-2017.

Importance of EIA

• Serves as a preventive tool to balance economic growth and ecological protection.

• Ensures public participation, inter-generational equity, and informed consent.

Policy Concerns Raised

• Increasing dilution of EIA norms post-2017.

• Shift from environmental precaution to administrative convenience.

• Weakening of the polluter pays and precautionary principles.

Conclusion / Way Forward:

• Restore public trust in environmental governance by strengthening legal safeguards.
• Ensure transparency and accountability in the clearance process.
• Reinforce the independence of environmental regulators.
• Avoid using EIA as a mere procedural formality or “green clearance stamp.”

Practice Question: Post-facto environmental clearances undermine both judicial principles and the goals of sustainable development. Critically examine in light of recent Supreme Court rulings. (GS3 – 250 words – 15 marks)

 

2. Hold the Pause

(Source: Page 10, The Indian Express)

Topic: GS3: Economy – Monetary Policy, Inflation Control, Growth Management, RBI Functions

Context

The Reserve Bank of India (RBI) has chosen to maintain status quo on repo rates in its latest policy announcement, citing a delicate balance between persistent inflation and the need to sustain economic growth. This editorial justifies the RBI’s cautious stance in the face of uncertain global and domestic macroeconomic signals.

Why Did RBI “Hold the Pause”?

• Despite inflation cooling, especially in fuel and food segments, core inflation (non-food, non-fuel) remains elevated.

• RBI has decided not to reduce the repo rate immediately to avoid stoking inflationary pressures again.

• Repo rate stability ensures credit access without overheating the economy.

Domestic factors:

• Weak private consumption recovery in rural and urban India.

• Sluggish credit offtake in non-retail segments.

• Real estate and automobile sectors show fragile recovery.

Global factors:

• US Federal Reserve still unsure on rate cuts; volatility in global crude and commodity markets.

• Disrupted supply chains and geopolitical risks still pressuring global prices.

RBI’s Strategic Thinking:

• Policy reflects data-driven flexibility, prioritizing inflation containment without derailing growth momentum.

• RBI focusing on anchor expectations, especially inflation targeting (CPI-based).

• RBI’s monetary conservatism is aligned with long-term credibility rather than short-term stimulus.

Associated Policy Challenges:

• Maintaining growth while reining in inflation is an ongoing macro dilemma.

• Coordinating with fiscal policy is vital – government must focus on demand-side stimulus without over-borrowing.

Conclusion / Way Forward:

• RBI must continue watchful monitoring of inflation trends, especially core inflation.

• Better alignment of fiscal and monetary policy is needed for sustainable growth.

• India must invest in supply-side measures (logistics, agriculture reforms, housing) to control inflation organically.

• Transparency and timely communication are essential to retain public and investor confidence.

Practice Question: Monetary policy must strike a balance between inflation control and growth revival. Critically examine the rationale behind RBI’s decision to hold repo rates amid persistent core inflation. (GS3 – 250 words – 15 marks)

 

Read more – 19 May 2025 : Indian Express Editorial Analysis