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August 7th Current Affairs

Home / UPSC / Current affairs / UPSC Current Affairs – August 7th

Table of Contents

DMK Signals Conditional Support for the Delimitation Bill, Seeks Protection for Southern States' Political Representation

Why is this in the news?

The DMK (Dravida Munnetra Kazhagam) has indicated that it is not opposed to delimitation in principle, but it will support the proposed Delimitation Bill only if the interests of Tamil Nadu and other southern States are protected. The party has insisted that any increase in Lok Sabha seats should ensure that southern States do not lose their political influence despite their success in population control.

What is Delimitation?

Delimitation is the process of:

  • Redrawing the boundaries of Lok Sabha and State Assembly constituencies.
  • Reallocating seats among States based on population.
  • Ensuring that every elected representative represents nearly the same number of people.

It is carried out by an independent Delimitation Commission established by Parliament.

Why is Delimitation Needed?

The Constitution provides for periodic delimitation to:

  • Reflect population changes.
  • Ensure equal representation.
  • Maintain the principle of “One Person, One Vote, One Value.”

However, seat allocation has been frozen since 1976 (later extended until after the first Census conducted after 2026) to avoid penalising States that successfully implemented family planning.

Why is the DMK Concerned?

Southern States such as:

  • Tamil Nadu
  • Kerala
  • Karnataka
  • Andhra Pradesh
  • Telangana

have achieved lower population growth through effective family planning.

In contrast, many northern States have witnessed faster population growth.

If parliamentary seats are allocated purely on the basis of the latest population figures:

  • Northern States could gain many more seats.
  • Southern States may see a decline in their relative share of representation in the Lok Sabha.

The DMK argues that this would effectively penalise States that successfully controlled population growth.

Conditions Put Forward by the DMK

The DMK has stated that it can support the Bill if:

  1. Southern States do not lose representation.

The relative political weight of States like Tamil Nadu should be protected.

  1. Seat expansion is fair.

If Lok Sabha seats are increased, southern States should also receive a proportionate increase.

  1. Federal balance is maintained.

The exercise should strengthen cooperative federalism rather than shift political power disproportionately toward more populous States.

  1. Broad political consensus is built.

The government should consult all States before implementing delimitation.

Constitutional Provisions

Article 82

Parliament enacts a Delimitation Act after every Census.

Article 170

Provides for delimitation of State Legislative Assembly constituencies.

84th Constitutional Amendment Act, 2001

Extended the freeze on seat allocation until the first Census after 2026.

87th Constitutional Amendment Act, 2003

Allowed redrawing of constituency boundaries using updated Census data without changing the total number of seats.

Arguments in Favour of Delimitation

  • Reflects current demographic realities.
  • Ensures equal representation.
  • Reduces disparities in constituency sizes.
  • Strengthens democratic fairness.

Concerns Raised

  • Southern States may lose influence despite better governance and population control.
  • Could alter the balance of India’s federal structure.
  • May increase regional political tensions.
  • Population control efforts may appear to be penalised.

Cabinet Approves ₹23,731 Crore GOBARdhan Scheme to Boost India's Circular Bioeconomy

Why in News?

The Union Cabinet has approved the GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) – National Circular Bioenergy Scheme with an outlay of ₹23,731 crore (the approved amount reported officially; some newspaper reports may show a different figure due to typographical error). The scheme aims to convert organic waste into Compressed Biogas (CBG), organic manure, and clean energy, thereby promoting rural prosperity, energy security, and a circular economy. It will be implemented from FY 2026–27 to FY 2035–36.

What is GOBARdhan?

GOBARdhan stands for Galvanising Organic Bio-Agro Resources Dhan.

It is a flagship initiative of the Government of India that promotes the scientific management of biodegradable waste by converting:

  • Cattle dung
  • Agricultural residues (crop stubble)
  • Press mud (sugar industry waste)
  • Municipal organic waste
  • Other biomass

into valuable products such as:

  • Compressed Biogas (CBG)
  • Organic manure
  • Bio-fertilizers

The scheme supports the “Waste to Wealth” approach and strengthens the circular economy.

Objectives of the Scheme

The scheme seeks to:

  • Increase domestic Compressed Biogas (CBG) production nearly ten-fold.
  • Reduce dependence on imported fossil fuels, especially natural gas.
  • Promote clean and renewable energy.
  • Generate additional income for farmers through the sale of biomass.
  • Improve scientific waste management.
  • Reduce greenhouse gas emissions.
  • Encourage private investment in the bioenergy sector.

Key Features

  1. Large Financial Outlay
  • Total allocation: ₹23,731 crore
  • Implementation period: 2026–27 to 2035–36.
  1. Assured Market for CBG

City Gas Distribution (CGD) companies will procure CBG under mandatory blending targets:

  • 3% in 2026–27
  • 4% in 2027–28
  • 5% from 2028–29 onwards.
  1. Capital Assistance
  • Financial support for eligible greenfield CBG plants.
  • Assistance for feedstock aggregation and organic manure processing infrastructure.
  1. Pipeline Connectivity

Support for connecting CBG plants to gas pipeline and City Gas Distribution networks, reducing transport costs and improving market access.

  1. Credit Guarantee

Dedicated credit support for:

  • MSMEs
  • Cooperatives
  • Women entrepreneurs
  • Rural enterprises

to improve access to institutional finance.

  1. CBG Ecosystem Challenge Fund

Supports:

  • Feedstock mapping
  • District-level planning
  • Technology adoption
  • Capacity building
  • Awareness programmes.

Benefits of the Scheme

Energy Security

  • Reduces LNG and fossil fuel imports.
  • Promotes indigenous renewable gas production.

Farmers

  • Additional income from crop residues and cattle dung.
  • Better management of agricultural waste.

Environment

  • Prevents stubble burning.
  • Reduces methane emissions from unmanaged organic waste.
  • Encourages scientific waste disposal.

Rural Economy

  • Generates employment in waste collection, transportation, biogas plants, and manure production.

Agriculture

  • Increases availability of organic manure, improving soil health.

Connection with Existing Government Initiatives

The scheme builds upon:

  • SATAT (Sustainable Alternative Towards Affordable Transportation) initiative.
  • National Bioenergy Programme.
  • Market Development Assistance (MDA) for organic manure.
  • Biomass Aggregation Machinery (BAM) Scheme.
  • Development of Pipeline Infrastructure (DPI) Scheme.

Challenges

  1. Ensuring a regular supply of biomass feedstock.
  2. High initial investment for CBG plants.
  3. Developing adequate pipeline infrastructure.
  4. Improving awareness among farmers and rural communities.
  5. Maintaining long-term financial viability of projects.

Government Opposes Income-Based ‘Creamy Layer’ in SC/ST Reservations

Why is it in News?

The Centre has opposed applying an income-based “creamy layer” criterion to Scheduled Castes (SCs) and Scheduled Tribes (STs) for reservation in government jobs and educational institutions.

The Government has told the Supreme Court that reservation for SCs and STs is primarily intended to address historical and social discrimination, and therefore economic advancement alone cannot be used to determine whether a person should continue receiving reservation benefits.

This issue has emerged before the Supreme Court in petitions seeking the exclusion of relatively advanced sections within SC/ST communities from reservation benefits.

What is the ‘Creamy Layer’?

The creamy layer refers to the relatively socially and educationally advanced sections within a backward class who are excluded from reservation benefits.

At present:

Category

Creamy Layer?

OBC

 Yes

SC

No general creamy-layer exclusion

ST

No general creamy-layer exclusion

EWS

Different concept; based on economic criteria

The creamy-layer principle is currently associated mainly with OBC reservation.

Importantly, the Supreme Court clarified in 2026 that even for OBCs, parental income alone cannot mechanically determine creamy-layer status; social status and other prescribed criteria are relevant.

Why does the Government oppose it for SC/STs?

The Centre’s argument is that SC/ST reservation is not simply an anti-poverty programme.

  1. Historical discrimination

SCs have historically faced practices such as untouchability, social exclusion and caste-based discrimination.

ST communities have historically faced social, geographical and economic marginalisation, including disadvantages associated with remote habitation and limited access to education and institutions.

Therefore, the Government argues that becoming financially better-off does not automatically eliminate caste- or community-based discrimination.

  1. Economic status ≠ social status

A person may have a higher income but may still face discrimination because of their caste or tribal identity.

Therefore, according to the Centre, income alone cannot be the basis for deciding whether an SC/ST person has overcome the disadvantages that reservation seeks to address.

  1. Different constitutional purpose

The Government distinguishes SC/ST reservations from purely economic welfare measures.

The objective is to ensure:

  • adequate representation
  • substantive equality
  • correction of historical disadvantage
  • greater participation in public institutions.

Constitutional Framework

Article 15(4)

Allows the State to make special provisions for the advancement of:

  • socially and educationally backward classes
  • SCs
  • STs

Article 15(5)

Allows special provisions relating to admission to educational institutions, including private educational institutions, subject to constitutional limitations.

Article 16(4)

Allows reservation in public employment for a backward class of citizens that is not adequately represented in State services.

Article 46

A Directive Principle of State Policy directing the State to promote the educational and economic interests of weaker sections, particularly SCs and STs, and protect them from social injustice and exploitation.

What has the Supreme Court said?

The issue became particularly important after the 2024 State of Punjab v. Davinder Singh judgment.

A seven-judge Constitution Bench held that States can sub-classify Scheduled Castes for providing preferential treatment to relatively more disadvantaged groups within the SC category, subject to constitutional requirements and supporting data.

Importantly, some judges also discussed the possibility of applying the creamy-layer principle to SCs/STs.

However, this was not a binding direction to the Union Government to immediately introduce a creamy layer for SC/STs.

Sub-Classification vs Creamy Layer

This distinction is very important for UPSC.

Sub-classification

Means dividing a reserved category into groups so that the more disadvantaged groups within that category receive greater benefit.

Example:
SC category → Group A + Group B → greater preference to the more under-represented group.

Creamy Layer

Means excluding relatively advanced members of a reserved category from reservation benefits.

Sub-classification ≠ Creamy layer

This is an important conceptual distinction for Prelims.

Arguments in Favour of Creamy Layer for SC/ST

Supporters argue that:

    • Benefits should reach the most disadvantaged members.
    • A small number of relatively advanced families may repeatedly access reservation benefits.
    • It can prevent concentration of benefits.
    • It can promote the principle of “equitable distribution of affirmative action.”
    • It could help the most deprived sections within SC/ST communities.

Arguments Against an Income-Based Creamy Layer

The Centre’s position highlights several concerns:

  1. Caste discrimination may continue despite economic progress

Economic advancement does not necessarily remove social discrimination.

  1. Income is an imperfect measure

A family earning above a particular threshold may still face significant social disadvantages.

  1. SC/ST communities are heterogeneous

There are major differences between different communities and regions.

  1. Risk of weakening affirmative action

A narrowly income-based exclusion could reduce access to reservation without adequately addressing the underlying social disadvantage.

  1. Administrative difficulty

Determining who has genuinely overcome social disadvantage cannot be reduced to a simple income certificate.

 

Important Supreme Court Cases

Indra Sawhney v. Union of India (1992)

  • Major judgment on reservations.
  • Established the creamy-layer principle for OBCs.
  • Generally associated with the 50% ceiling on reservations, subject to exceptional circumstances.

E.V. Chinnaiah v. State of Andhra Pradesh (2004)

  • Initially held that SCs constituted a homogeneous class for the purpose of reservation and questioned State-level sub-classification.

State of Punjab v. Davinder Singh (2024)

  • Seven-judge Constitution Bench allowed sub-classification within SCs, subject to constitutional safeguards and data-based justification.

Union of India v. Rohit Nathan (2026)

The Supreme Court recently clarified that income alone cannot mechanically determine OBC creamy-layer status; the prescribed framework also considers social status and occupational position.

Stop the Scam: Digital Arrest Scams Persist, Often Driven by Overseas Actors

Why in News?

The Supreme Court’s recent intervention on the growing menace of “digital arrest” scams has brought renewed attention to a serious form of cyber-enabled financial fraud.

The key concern is that these scams are increasingly organised across borders, with masterminds and infrastructure located outside India, while victims and mule-account operators may be located within India. The Hindu’s editorial argues that tackling the problem requires much stronger international cooperation, financial tracking and coordinated cybercrime enforcement.

What is a "Digital Arrest" Scam?

Digital arrest is NOT a legal procedure in India.

In this scam, criminals pretend to be officials from agencies such as:

  • Police
  • CBI
  • Enforcement Directorate (ED)
  • Narcotics authorities
  • Supreme Court or other government institutions

They contact victims through phone calls or video calls and falsely claim that the victim is involved in crimes such as:

  • Money laundering
  • Drug trafficking
  • Terror financing
  • Aadhaar misuse
  • Illegal financial transactions

The victim is then threatened with arrest and instructed to remain continuously connected through a video call.

Finally, the criminals demand money, often claiming that it is required for “verification”, bail or settlement.

Important: No legitimate Indian law-enforcement agency conducts an arrest through a video call or asks a person to transfer money to avoid arrest.

How Does the Scam Work?

Step 1 – Initial Contact

The victim receives a call from someone claiming to be a police or government official.

Step 2 – Fake Allegation

The scammer says that the victim’s identity documents, bank account or phone number have been connected to a serious crime.

Step 3 – Psychological Pressure

The victim is threatened with immediate arrest.

The scammers may use:

  • Fake uniforms
  • Fake identity cards
  • Fake warrants
  • Fake government documents
  • Video calls
  • Backgrounds resembling police stations or courts

Step 4 – Digital Confinement

The victim may be instructed to remain on a video call for hours or even days and not contact family members.

Step 5 – Money Extortion

The victim is ordered to transfer money to bank accounts for supposed “verification” or “security deposits.”

Step 6 – Money Laundering

The money is quickly transferred through multiple mule accounts, converted into other forms of value, or moved overseas.

Why are Overseas Actors a Major Concern?

This is one of the most important aspects of the article.

Cybercrime is increasingly becoming transnational.

Investigations into major cyber-fraud cases have found that the masterminds can operate from overseas while using Indian intermediaries to receive and move money.

For example, Delhi police investigations into cyber-fraud networks have found links to Cambodia and other overseas locations. Money can move through numerous accounts within minutes before being converted into cryptocurrency or transferred abroad.

Typical structure

Overseas mastermind
↓
Call-centre/scam operators
↓
Indian mule-account holders
↓
Multiple bank accounts
↓
Crypto/foreign accounts
↓
Final destination

This makes investigation difficult because the crime, victim, money and criminal mastermind may all be in different countries.

Why is it Difficult for Indian Authorities?

  1. Cross-border jurisdiction

Indian police cannot directly investigate or arrest suspects located in another country.

They require cooperation from foreign law-enforcement agencies.

  1. Fast movement of money

Fraudulently obtained money can move through many bank accounts very quickly.

This reduces the possibility of recovery.

  1. Mule accounts

Criminal networks use accounts belonging to other people to receive and transfer stolen money.

Some account holders may knowingly participate, while others may be deceived into allowing their accounts to be used.

  1. Use of cryptocurrency

Conversion into cryptocurrency can make tracing and recovering funds more complicated.

  1. Social engineering

The scam does not necessarily depend on sophisticated hacking.

Instead, criminals exploit human psychology — fear, urgency and authority

Supreme Court's Role

The Supreme Court has taken note of the seriousness of digital-arrest fraud.

In an earlier case, a retired banker was allegedly kept under digital arrest for nearly a month and lost around ₹23 crore after scammers impersonating police, CBI and ED officials threatened him with serious criminal allegations. The Supreme Court subsequently sought responses from the Centre, CBI, RBI and others.

The larger significance of judicial intervention is that cyber fraud is no longer merely an individual financial crime issue. It raises questions of:

  • Digital governance
  • Privacy
  • Law enforcement
  • Banking security
  • International cooperation
  • National security

India's Institutional Response

Indian Cybercrime Coordination Centre – I4C

The I4C, under the Ministry of Home Affairs, coordinates India’s response to cybercrime.

It supports mechanisms for:

  • Cybercrime reporting
  • Financial-fraud response
  • Information sharing
  • Coordination between police agencies
  • Cybercrime awareness

National Cyber Crime Reporting Portal

Citizens can report cybercrime through the national portal.

Helpline – 1930

The 1930 helpline is particularly important in financial cyber fraud because early reporting can help authorities freeze or trace fraudulent transactions. I4C’s CyberDost continues to advise victims to report immediately.

What Should Be Done?

  1. Strengthen International Cooperation

India needs greater cooperation with countries where cybercrime networks operate.

Mechanisms such as:

  • Mutual Legal Assistance Treaties (MLATs)
  • Extradition arrangements
  • Joint investigations
  • Intelligence sharing

can help pursue overseas masterminds.

  1. Follow the Money

Financial intelligence should be strengthened to identify:

Victim → Mule account → Multiple accounts → Crypto/foreign account

Real-time monitoring can help stop fraudulent transfers.

  1. Strengthen Banks’ Response

Banks should improve:

  • Suspicious transaction detection
  • Rapid freezing mechanisms
  • Mule-account identification
  • Information sharing with investigators
  1. Greater Cyber Awareness

People should understand one basic fact:

There is no such thing as a “digital arrest” under Indian law.

Awareness is especially important among senior citizens and people who may be less familiar with cybercrime tactics.

  1. Better Police Capacity

Cybercrime units need:

  • Digital-forensics expertise
  • Blockchain-analysis capabilities
  • Cyber intelligence
  • International investigation skills
  • More specialised personnel

Handloom: Weaving India’s Heritage into Global Growth

Why in News?

India’s handloom sector is being discussed as an important opportunity to combine cultural heritage with economic growth.

Handloom is not merely a traditional craft. It supports millions of livelihoods, particularly in rural areas, and has potential to contribute to exports, employment, women’s economic participation and sustainable development.

The challenge is to move Indian handlooms from being treated mainly as a heritage product to becoming a competitive global industry while protecting the interests of artisans.

What is the Handloom Sector?

Handloom refers to textiles produced using manually operated looms rather than power-driven machinery.

India has a huge diversity of traditional handloom products, including:

  • Banarasi silk
  • Kanchipuram silk
  • Chanderi
  • Pochampally Ikat
  • Kota Doria
  • Kalamkari
  • Jamdani
  • Bhujodi
  • Sambalpuri textiles

Different regions have developed their own weaving techniques, designs, colours and cultural traditions.

Why is Handloom Important for India?

  1. Employment Generation

Handloom is highly labour-intensive and provides employment to a large number of people, particularly in rural and semi-urban areas.

It supports not only weavers but also:

Yarn suppliers → dyers → designers → weavers → traders → exporters

Thus, it creates an entire local value chain.

  1. Women’s Empowerment

Women constitute a significant proportion of workers in the handloom ecosystem.

Supporting handloom can therefore promote:

  • Women’s employment
  • Household income
  • Financial independence
  • Entrepreneurship
  • Social empowerment
  1. Preservation of Cultural Heritage

Indian handlooms represent India’s:

  • Regional traditions
  • Indigenous knowledge
  • Artistic skills
  • Cultural diversity

Many weaving traditions have been passed from one generation to another.

Therefore, the decline of handloom can also mean the loss of intangible cultural heritage.

 

Handloom and Sustainability

One of the biggest opportunities for Indian handloom is its relatively low dependence on industrial machinery and energy compared with highly mechanised textile production.

Traditional handloom can contribute to:

  • Lower energy consumption
  • Sustainable production
  • Use of natural fibres
  • Local production
  • Reduced dependence on large industrial infrastructure

This gives Indian handloom an advantage in the growing global market for sustainable and ethical fashion.

Can Handloom Become a Global Brand?

Yes—but India needs to move from simply selling traditional products to building strong global brands.

Current problem:

Many Indian handloom products are sold through fragmented local markets.

The global consumer increasingly looks for:

Quality + Design + Sustainability + Authenticity + Traceability

India possesses these qualities, but needs better marketing and branding.

Major Challenges

  1. Competition from Powerlooms

Machine-made textiles can often be produced:

  • Faster
  • At lower cost
  • In larger quantities

This creates intense competition for traditional handloom producers.

2. Low Income of Weavers

Despite the skill involved, many artisans receive only a small share of the final selling price.

A typical value chain may look like:

Weaver → Trader → Wholesaler → Retailer → Consumer

The final product may be sold at a high price while the artisan receives relatively little.

3. Lack of Access to Markets

Many artisans lack:

  • Digital marketing skills
  • Branding
  • E-commerce access
  • Export knowledge
  • Direct access to consumers

This limits their ability to benefit from global demand.

4. Declining Younger Workforce

Younger members of weaving communities may prefer other occupations because of:

  • Low and uncertain income
  • Difficult working conditions
  • Limited social security
  • Lack of recognition

This creates the risk of loss of traditional skills.

5. Cheap Imitation Products

Machine-made products are sometimes marketed in ways that make consumers believe they are purchasing genuine handloom products.

This hurts authentic artisans.

Importance of Geographical Indications (GI)

GI tags can help protect region-specific products.

Examples include:

  • Banarasi Brocades and Sarees
  • Kanchipuram Silk
  • Pochampally Ikat
  • Chanderi Sarees

A GI can help establish the geographical identity and authenticity of a product.

However, a GI tag alone does not guarantee higher income for artisans.

It must be supported by:

GI + branding + quality control + market access + consumer awareness

Digitalisation: A Major Opportunity

Digital platforms can fundamentally change the handloom value chain.

Instead of:

Weaver → Middleman → Retailer → Consumer

digital platforms can facilitate:

Weaver → Digital Marketplace → Global Consumer

Benefits include:

  • Better price realisation
  • Wider market
  • Direct consumer interaction
  • Product storytelling
  • International visibility

Social media can also help artisans showcase the story behind the product, which is increasingly valuable in global ethical-fashion markets.

How Can India Make Handloom Globally Competitive?

  1. Improve Design

Traditional designs should be combined with contemporary consumer preferences.

  1. Strengthen Branding

India needs internationally recognised handloom brands.

  1. Ensure Fair Remuneration

The artisan should receive a greater share of the final value.

  1. Improve Digital Access

Provide artisans with training in:

  • E-commerce
  • Digital payments
  • Social media marketing
  • Product photography
  1. Promote Traceability

Digital certification and QR codes can help consumers verify authenticity.

  1. Encourage Young People

Better incomes, modern workspaces, training and social-security support can make weaving more attractive to younger generations.

  1. Build Global Market Linkages

Government and private sector should help artisans access:

  • International exhibitions
  • Global retailers
  • Designers
  • E-commerce platforms
  • Export markets

 

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